Nonprofit Finance Fund 2011 Survey: Engage Your Board Sooner

"The data show that the more financially challenged nonprofit organizations are more likely to engage more deeply with their boards," said Jennifer Talansky, Vice President, Marketing and Communications, Nonprofit Finance Fund (NFF), in a private interview. Talansky was referring to the results of NFF's 2011 Survey. Nonprofits with budget deficits indicated a higher likelihood of engaging more closely with their boards than nonprofits with budget surpluses. And nonprofits with less than 90 days of cash on hand were more likely compared with nonprofits with more than 90 days of cash.

In this third annual NFF survey, 77% of nonprofits reported that they experienced an increase in demand in services in 2010, and 49% reported that they were unable to meet the demand for services. 85% expect further increases in demand in 2011, and 54% do not expect to be able to meet the demand. Nonprofits coped by reducing and eliminating programs and services as well as adding and expanding programs, increasing the number of clients served, and partnering with other organizations--programmatically and financially. For many organizations, additional programmatic, financial, and staffing changes are planned for 2011.

There are many lessons to draw from the survey results. Here are a few.

See continuation here on Fast Company...

Korngold Consulting LLC assists corporations in building fully integrated, high-impact CSR strategies, including leadership development through nonprofit board service.  Korngold Consulting trains and places business executives on nonprofit boards, and consults to nonprofit boards and leaders to strengthen governance for financial and strategic success.

KORN12577