GEORGIA COMMUNITY ACTION ASSOCIATION STRATEGIC PLANNING RETREAT AND BOARD

MEETING

September 22-24,2010

Peachtree City, Georgia

Jimmie Samuel, President

Welcome

DOING MORE WITH LESS

MONEY, STAFF & CAPACITY

Will Non-Profits CAAs Be Able to Meet Rising Demands?

Source Data: Georgia Center for Non-Profits – www.gcn.org

GCAA STRATEGIC

PLANNING AND BOARD MEETING

September 22-24,2010

Peachtree City, Georgia

Welcome

Source: Georgia Center for Non-Profits

64 % OF NONPROFITS SURVEYED INDICATE

SIGNIFICANT INCREASES IN

DEMAND31% note dramatic (+30%)

increases

Source: Georgia Center for Non-Profits- Survey of Non-Profit Financial Health

What are the primary reasons for diminished capacity to meet demands?

1. Funding Cuts2. Increased Costs3. Management Capacity4. Lack of Space5. Lack of Volunteers

LEADERSHIP AND INFRASTRUCTURE

Source: Georgia Center for Non-Profits- Survey of Non-Profit Financial Health

SHIFT IN SERVICE DEMANDS

“We are seeing more middle class people and families”

E.D. of a Savannah area Food Bank

“Our former donors are now our clients – they come to us to keep the lights on and pay the rent.”

E.D. of an emergency assistance program

NONPROFIT FINANCIAL HEALTH 24% indicated that the

organization had more than 6 months reserves;

55.2% had less than 3 months and

19% had no reserves at all.

The number of agencies reporting no existing reserves increased by 5%; those with 3 months decreased by 3.5%, and those with 6 months reserves decreased by 4%.

Not a small nonprofit issue

GCN Survey - N=255 agencies

For those respondents with annual budgets exceeding $5M, 62.5 % had less than 3 months of liquid reserves contrasted with56.2% for groups with less than $2M annual budgets.

NON-PROFIT FINANCIAL HEALTH68.2% of Respondents had Government

Contracts

Increasing ISSUES:

Protracted Reimbursements Cash Flow Problems & Temporary

Insolvency Zero notice contract cancellations Renegotiated contract rates on-the-fly

Source: Georgia Center for Non-Profits- Survey of Non-Profit Financial Health

MANAGEMENT RESPONSE

Cutting Staff

Cutting Operational Costs

Source: Georgia Center for Non-Profits- Survey of Non-Profit Financial Health

STAFFING LEVELS

11.6 % will Shorten work weeks or lower hours

20.5% will Hold vacant positions 6.3% will Shift FTE’s to Part Time to save

on benefits costs 31% reported staff layoffs in Q1

compared to 27% reporting layoffs in Q4 2008

n=112

Source: Georgia Center for Non-Profits- Survey of Non-Profit Financial Health

STAFFING LEVELS

11.6 % will Shorten work weeks or lower hours

20.5% will Hold vacant positions 6.3% will Shift FTE’s to Part Time to save

on benefits costsn=112

Source: Georgia Center for Non-Profits- Survey of Non-Profit Financial Health

MANAGEMENT RESPONSECollaboration & Other Unnatural Acts28.9% would consider a merger if they had

resources to manage it. 50% would combine advocacy efforts or

marketing efforts with other groups 44% would consider consolidating their

back office or outsourcing it

Source: Georgia Center for Non-Profits- Survey of Non-Profit Financial Health

MANAGEMENT RESPONSECutting Programs & Tightening

Constraints 44.3% will increase constraints to limit

demand compared to 37.5% in Q4 44% will close some programs to shift

support to core initiatives or to cut costs compared to 30.8% in Q4

Increased Fundraising & Marketing Activity

WHAT ELSE ARE NONPROFITS CUTTING? Direct Program Expenses (food,performance

productions, animal care) Conferences & Travel Supplies & Equipment Print & Mail 63% will keep compensation levels even 67% will keep benefits intact 58% will not or will only slightly reduce

professional development

Source: Georgia Center for Non-Profits- Survey of Non-Profit Financial Health

2009 OPTIMISM IMPROVED OVER Q4

7% Fewer felt they would realize significant revenue declines and 6% more felt the impact would be slight

30% felt government contracts would remain stable

21% Expect to start a capital campaign (compared to 10% in Q4)

40% Plan to deliver events as usual24% Expect to start a new event63% Expect to hold salaries & benefits at current

levels22.1% Expect to expand programs54% Expect to hold programs at current levels

Source: Georgia Center for Non-Profits- Survey of Non-Profit Financial Health

MEETING THE DEMANDSurvey Question: If you are meeting the

demand, what made the difference?

1. Careful Planning and Financial Controls

2. Increase or Improved Development Activity

3. Active Board Involvement

Source: Georgia Center for Non-Profits- Survey of Non-Profit Financial Health

FORM 6 DISCUSSION GROUPS

GROUP DISCUSSIONS/ISSUES

•ARRA Implementation• Technology and Reporting

Enhancements• Peer to Peer (Self Regulation)• Legislative Education• Resource Development• Marketing and Communication

FACILITATOR/GROUP INSTRUCTIONS

1:30 pm – 3:00 pm

FRAME THE ISSUES Select a Recorder, Time Keeper and

Reporter Discuss the Topic List the Issues/Problems

GROUP INSTRUCTIONS

3:30 pm - 4:45 pmESTABLISH GOALS/OBJECTIVES

Describe the Desired Future – “What Do You Envision”?

List three (3) Possible Solutions for Each Issue/Problem Identified

ARRA IMPLEMENTATIONDiscussion Starters:• Grantee Performance (WAP/CSBG)• Program Evaluation• Risk Mitigation and Management• Others

TECHNOLOGY ENHANCEMENTSDiscussion Starters:

• EZT Centralization• ARRA/CSBG Reporting• IT Personnel• Others

PEER TO PEER…SELF REGULATIONDiscussion Starters: Application Process Mentoring Confidentiality Others

LEGISLATIVE EDUCATIONDiscussion Starters: Legislative Agenda Governmental Affairs Interns Others

FUNDRAISING AND RESOURCE DEVELOPMENTDiscussion Starters:

Federal Grants Life Cycle Membership Dues Fund Raising Ideas Others

MARKETING AND COMMUNICATION

Discussion Starters:

• CAA Best Practices • Poverty Reduction Messaging• Communications Plans• Others