Navigating the Challenges of COVID-19:
What Should You Do Now?
During this unprecedented time, almost all organizations and businesses are facing current challenges, from stay-at-home orders to employee layoffs. This has been a difficult time for leadership, employees and those individuals in the communities that you serve.
As the situation continues to evolve on a daily basis, it is important to remain calm. As each day seems to come with a new set of challenges, it is important to take a step back and evaluate the financial impacts this will have on your Organization. Decisions made now can help limit prolonged disruptions in fulfilling your mission. As we encounter new challenges, this is a great time for collaboration, creativity and compassion—concepts to which nonprofit organizations are not strangers.
For a majority of Organizations, financial impacts are going to be a reality. Your first step should be to put together a
budgeted cash projection for the coming months to determine what your exact needs will be, taking into account potential decreases in revenues and expenses due to the impacts of COVID-19. If financial shortfalls are the reality for your organization, here are just a few recommendations on navigating those impacts:
Look at your expenses and try and determine areas where costs could be reduced or eliminated.
- Can you scale back on any overhead costs?
Before resorting to employee layoffs, are there other ways you could get creative with your personnel costs to keep all individuals employed?
- Cut back or defer retirement contributions
- Ask employees to take a brief pay cut (note that you will still need to abide by all wages and hours laws in your state)
- Consider intermittent employee furloughs or universal part-time hours
Now is not a time to stop your fundraising efforts; it is a time to get creative! While many individuals in your communities also will feel the financial impacts of COVID-19, unprecedented times like these bring out generosity and kindness in all of us. Make sure your donors know that you are not immune to the economic effects of COVID-19 and remind them of the essential impact you have on the people in your communities.
Although all in-person fundraising events have been halted, we have endless amounts of technology at our fingertips (literally) to keep these fundraising efforts going.
- Social media platforms
- Direct mail
- Phone calls
- Video chats
Stay up to date on the federal financial assistance packages that are being made available. The
paid sick and family leave act
will help organizations substantially (see additional links provided in this newsletter for more information and resources). We will keep you up to date on the various assistance packages that are evolving daily.
Reach out to your local resources to determine if there are grants, loans or other financial resources available.
- Small Business Administration (SBA) disaster assistance loans (see below for details)
- Private community foundation grants
- Business interruption insurance
- Local, city or county assistance
- Your local Chamber of Commerce and United Way
Have open communication with your lenders and vendors. Many banks and credit card companies have offered deferred payment options.
During these uncertain and challenging times, it is important that you take a step back, take a deep breath and remember your mission. Nonprofit organizations are essential pieces for the communities in which we live. Strategic decision making and compassion in times of crisis will help you overcome these challenges. At Hawkins Ash CPAs, we appreciate you and are
here to help you