Pablo Listingart is the founder of ComIT, a charity that provides free tech training to people who struggle to overcome employment barriers.
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As we make our way into the second quarter of 2023, Canada stands poised on the brink of a recession. Already, early symptoms of national economic challenges have seeped into the intricacies of our daily lives—from hefty grocery bills to continually escalating interest rates. And with inflation growing at an unprecedented rate, many wonder how dire the next year will really be.
In preparation for a potentially challenging year, I'd like to explore some of the ways that nonprofit organizations can remain resilient during a recession.
Approach funding conservatively.
To thrive, many nonprofit organizations rely on government grants, funding and charitable donations. In a market full of uncertainty, it is important not to assume that funding will continue as in previous years. I recommend constructing your budget through a conservative lens, which will help address staffing and planning throughout the year.
I lived and worked for many years in Argentina, a country where rules are always changing. While there, I grew accustomed to operating with funds that were constantly in flux and became efficient at operating with reduced capital. To thrive during challenging periods, we had to adapt along the way and rethink various strategies. While this was challenging, we were able to continue operating and achieving our goals because we thought conservatively.
Don’t anticipate business as usual.
My experiences in Argentina taught me an important lesson: to not assume that business would always operate as per the status quo. One of the unanticipated benefits of the last three years is that as a society, we learned how to change our habits—fast. During the Covid-19 pandemic, we became familiar with change and learned the importance of adapting to new technologies, consumer habits and societal norms.
Nonprofit organizations need to anticipate change and keep an open mind to survive the challenges of a recession. We need to constantly evaluate if the way we operate and the service we provide is what the society we are a part of needs, and be flexible to change and support our internal teams and our valued beneficiaries.
Embrace empathy.
A recession can be challenging. It will test our limits and force us to innovate in order to thrive. I encourage all team leaders to practice empathy, regardless of what kind of organization they run, whether it be a nonprofit or for-profit enterprise.
For organizations to remain impactful, they need their employees to work hard as a collaborative team. By taking the time to empathize and connect with our employees and to understand their concerns and worries about the recession, we can build connections through even the most challenging times.
Layoffs tend to accompany recessions, and many employees tend to be concerned about the possibility of being let go. To mitigate this fear, leaders need to present clear communication regarding the organization’s current standings while also listening to any potential employee concerns.
Recessions can be challenging, but I believe that when leaders use best practices, remain open to new strategies and practice empathy, we can come through the other side even stronger than before.
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