January 2009
by Helmut Anheier

Against a backdrop of mounting problems and special features, there is still quite a lot that can be done. Here are six short-term options:

• Revisit the value base of your organisation. If values are the foundation of your mission, reinvigorate their meaning and make them relevant by basing all major decisions on values rather than economic rationale alone; if values are less central, make economic sustainability a priority.
• Consolidate resources around mission critical, resource attractive programmes, and prune activities that are less mission critical and less resource attractive. Align stakeholders accordingly and build appropriate coalitions.
• Cooperate only around mission central programmes, and consider merger and franchise models.
• Cross subsidise only if less mission critical programmes have a proven and significant capacity to generate revenue. Rededicate assets and reserves accordingly, and divest cross subsidising programmes.
• Spread risk in revenue streams by avoiding dependencies on government, donors etc. and by diversifying earned income options (sliding fees, charging above marginal costs, using assets, cross subsidising etc).
• Run an active information campaign about what your plans are and how you seek to achieve them. Transparency and public awareness with all stakeholders is important for any short-term reorganisations to find legitimacy and success.

The "Six tips for weathering the storm" are also available in Czech on ProCulture.
Click here: Šest tipů kulturnímu sektoru jak proplout úskalími finanční krize

Asking tough questions for long-term survival

For many, the result will be a smaller and leaner non-profit, one shaped by short-term reactions to a crisis to sustain operations. It may not yet be a non-profit forged as a strategic response to a changed environment, and with long-term sustainability in mind. Therefore, non-profits can engage in strategic planning and visioning by asking tough questions about their very existence, functioning and impact. Options include:

• Specialisation versus generalisation of programmes, target groups, fields etc.
• Considering achieving a scale of operations adequate to both mission and resources
• Building partnerships and networks along economies of scale
• Exploring multi-site and franchise models for scale economies
• Engaging members and users more by activating value base, to reduce costs and create buy-in
• Reinvigorating advocacy and lobbying campaigns; be heard and raise concerns; demand government funding when appropriate.

1. How can the cultural sector survive the financial crisis?
2. How is the arts and culture sector responding to the crisis?
3. How should non-profits rise to new challenges?
4. Six tips for weathering the storm
5. Preparing for the future

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