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Recession, Recovery, and Renewal: Long-Term Nonprofit Strategies for Rapid Economic Change

Recession, Recovery, and Renewal: Long-Term Nonprofit Strategies for Rapid Economic Change

Susan U. Raymond

ISBN: 978-1-118-65485-9

May 2013

288 pages

Description

The guidance every nonprofit needs to plan the best survive-and-succeed strategy in any economy

The slow and uneven climb out from the Great Recession promises nonprofits an economic future that is unlike the past. Get equipped with the tools you need to plan your resilient nonprofit strategy with Recession, Recovery, and Renewal: Long-Term Nonprofit Strategies for Rapid Economic Change. This dynamic book reveals how your nonprofit can choose and assess indicators that will anticipate rapid twists in the road. It illustrates how your nonprofit can adapt management, programs, skills, leadership, and governance to take advantage of—rather than suffer through—rapid and constant change.

This book is a practical guide that teaches readers to identify, choose and track trend indicators in the market; establish systems to take up and act on both challenges and opportunities surfaced by those indicators; and produce concrete evidence of the impact of paying attention to those indicators.

  • Examines the Great Recession and its effect on government finance
  • Explores economic and industrial structure and performance over the next two decades, domestically and globally
  • Provides a concrete strategic guide toward change, grow capacity, and fulfillment of your nonprofit's mission
  • Offers a practical guide to restructuring the business model of nonprofits to anticipate—not react—to change
  • Documents the nature and levels of current and future economic change

Featuring a profile self-assessment questionnaire to help readers determine their readiness to adapt to change and to produce evidence to support innovation and performance and case studies written by agencies of Omnicom, a global Fortune 200 company, together with their nonprofit and corporate partners based on actual strategy development, Recession, Recovery, and Renewal: Long-Term Nonprofit Strategies for Rapid Economic Change is the first book to provide the nonprofit sector with a concrete guide to organizational strategy based on documented statistical evidence of the future economic and leadership structure—that will eventually become the operating environment.

List of Cases xi

Acknowledgments xiii

CHAPTER 1 Introduction 1

Looking Back and Its Dangers 1

Looking Forward and Its Challenges 2

Organization of This Work 4

PART I RECESSION AND RECOVERY 7

CHAPTER 2 Cascading Crisis 9

The Great Recession of 2007–2009

The Near-Term Roots 10

The Costs in Human and Economic Terms 16

The Nonprofit and Philanthropic Sector 18

CHAPTER 3 Recovery and Near-Term Economic Prospects 27

Overall Growth 27

Public Finance 29

Employment and Jobs 30

Household Incomes 33

Europe and Asia 35

Summary and Implications 37

PART II GLOBAL ECONOMIC CHANGE 43

CHAPTER 4 A Multipolar Global Economy 45

Economic Performance 46

The Global Middle Class 47

Industrial Structural Change 48

Capital Integration 50

Trade and Business Patterns 52

Summary and Implications 54

CHAPTER 5 Changing Corporate Context 59

The United States

Industrial Structure 59

Employment and Skills 61

Corporate Markets and Location 65

New Firm Formation 66

Summary and Implications 67

CHAPTER 6 Changing Corporate Context 73

The Global “South”

Corporate Growth 73

Labor Force and the New Employee 76

Innovation 77

Summary and Implications 79

CHAPTER 7 It Depends on What You Mean by “Give” 83

Investing in Problem Solving

Social Enterprise 85

Program- and Mission-Related Investing 87

Social Franchising 89

Impact Investing 90

Variations and Applications 92

Summary and Implications 94

CHAPTER 8 Wealth 99

New Faces and New Places

A Glance Backwards for Perspective 99

Globalization 100

Women and Wealth 103

The Rise of the Young 108

Summary and Nonprofit Implications 109

CHAPTER 9 The Global Benefits of Rising Well-Being 115

Education 116

Health Status and Its Consequences 120

Participation and Connectivity 124

Summary and Nonprofit Implications 125

CHAPTER 10 Next-Gen Leaders 129

The Emerging Corporate-Nonprofit Gap

Corporate Leaders 129

Nonprofit Leaders 132

Summary and Nonprofit Implications 134

PART III REQUISITE CHANGE IN THE NONPROFIT SECTOR 139

CHAPTER 11 The Globalization of Philanthropy in the United States and Abroad 141

Individual Giving to the World 141

Corporations: Giving Where the Markets Are 143

The Rising Strength of Philanthropy around the World 146

Summary and Implications 154

CHAPTER 12 The Erosion of Place 159

Migration 160

Borderless Technology 162

Summary and Implications 166

CHAPTER 13 Will Complexity Erode Trust? 171

Taxes and the Relationship with Government 171

The Views of the Public 175

Summary and Implications 180

CHAPTER 14 Programming for the Future 185

Global Health 186

States, Poverty, and Philanthropy 190

The Young and the Old 191

Summary and Implications 194

CHAPTER 15 The Arc of Philanthropic Innovation 201

The End of Definitions 201

A Complementary Resource System 202

A Word of Caution 207

Whence Passion? 208

Summary and Implications 209

PART IV STRATEGY FOR RAPID CHANGE 211

CHAPTER 16 Five Organizing Principles for Strategy amid Rapid Change 213

Maintain an Outward Line of Sight 213

Create a Culture of Evidence 214

Set Reasonable and Measurable Goals 216

Ask, Ask, Ask: How’m I Doin’? 216

Attend to Brand 218

Do Not Act Alone 219

Summary and Implications 220

CHAPTER 17 The Utility of Fluid Discipline 225

Option 1: Run, Shoot, and Holler 225

Option 2: Fluid Discipline 226

Summary and Implications 238

CHAPTER 18 Indicators and Evidence: A Suggested Place to Begin 243

Categories 244

Possible Partners in Implementation 250

Summary and Implications 251

APPENDIX 1 Case Solutions 253

Case A: Plunging Resources and Community-Wide Crisis 253

Case B: Private Resource Strategies for the Long Haul 254

Case C: Private Fundraising Strategy in a Newly Open Society 254

Case D: Global Company Seeks Global Engagement 255

Case E: Public Resources and Private Outreach 256

Case F: New Leaders, New Passion, Persistent Problems 257

Case G: Strength to Strength: Partnership to Boost Engagement 257

Case H: Globalization and Social Media 258

Case I: Multichannel Pathways to Reach New Fundraising Markets 258

Case J: New Strength through Simplifying Identity 260

Case K: Communications Strategy for Shifting Demographics 261

Case L: New Institutions for New Demographics 262

Case M: New Brand Strategy amid Economic Crisis 262

Case N: Measuring Subtle Change in Diverse Organizations 263

APPENDIX 2 Self-Assessment Questionnaire 265

About the Author 269

Index 271