RubinBrown What Not-For-Profit Organizations Should Expect in 2015

Organizational Responses In response to these challenges, organizations were asked to respond with their planned actions in the following key areas: human capital, services/programming and finance and operations. Human Capital Retain existing personnel but not necessarily look to expand – Fewer organizations were planning to hire staff for new positions (only 39% compared to 44% in the prior year) or make replacement hires (only 31% compared to 37% in the prior year). Remain conservative with salary costs – Only 17% (down from 18% in the prior year) of organizations are anticipating giving raises beyond cost of living adjustments. Invest in talent – This positive trend illustrates organizations' commitment to devoting time and resources to professional development of their staff. Start thinking of the future in terms of leadership succession planning – Up from 19% in the prior year, 34% of organizations were planning to focus on succession planning. Services/Programming Add or expand program/services and increase the number of people served – Not surprisingly, organizations are aiming to meet the increased community need. Collaborate with another organization to improve/increase programs or services offered – It is interesting to note that per the Grantmakers for Effective Organizations’ study, 80% of funders reported it was important for organizations to coordinate resources; however, more than 50% of funders never or rarely offered financial support for these grantee collaborations. This illustrates the disconnect organizations experience when trying to plan these collaborations. Upgrade hard/software to improve services or programs – This is of particular importance to organizations as the tracking and measuring of outcomes continues to be emphasized. Finance and Operations Conduct long-term strategic or financial planning – Along with proactive succession planning, organizations are also ensuring the appropriate long-term strategic and financial plans are in place. Review the organization’s finances – This includes changing how the organization raises or spends money, pursuing earned revenue ventures and evaluating future growth/expansion. Of responding organizations, 16% were considering launching a capital campaign, up from 8% in the prior year. Build the organization’s reserve – Best practices recommend at least 25% of an organization’s expenses be maintained in an operating reserve. Although more than 35% of responding organizations report having less than this recommended amount of cash on hand, a positive trend was noted with only 12% anticipating utilizing these reserve funds in the future, down from 16% in the prior year. Collaborate with another organization to reduce administrative costs – “Sharing” among organization is on the rise, whether that is sharing back-office operations, space or employees.

www.RubinBrown.com | 11