Most nonprofit leaders have great experience in overcoming challenges and dealing with constant change. However one thing certain for 2009 is that it is, and will continue to be, a year of uncertainties for the nonprofit sector. These uncertainties will certainly create a host of opportunities and challenges for us all. There is an avalanche of information in the media and most of it is not very encouraging. Here’s a small sampling from the past 72 hours.

Yesterday (Monday 1/26) US companies announced 65,000 new job losses. The Weekend Edition of the Wall Street Journal ran a front-page story entitled, Bear Market for Charities. The article cites that the US currently has over 1 million nonprofits. As you know, nonprofits rely heavily on donations from corporations, foundations and wealthy philanthropists. Most, if not all, of these organizations and individuals have experienced a reduction in their assets and are cutting back on philanthropic giving. The WSJ article quotes Paul Light, professor at New York’s University’s Wagner School of Public services as predicting as many as 100,000 nonprofits could close their doors and cease operations in the next year.

The reality is this - there is a dramatic increase in the need for services at the same time resources are becoming more scarce As a leader, you may feel like the juggler trying to keep 10 – 12 plates spinning without letting any of them fall crashing to the floor. Another reality is imminent. You can’t manage these challenges alone. You need a strong team of leaders.

“Leadership is needed more during times of uncertainty than in times of stability” (Kouzes and Posner). Count on this – in 2009 your organization will face some of the most difficult decisions and challenges ever. This year, perhaps more than ever before every nonprofit organization needs its board to rise to the challenge and provide the leadership boards are called and commissioned to provide. It’s time to summon “all hands on deck” and rally the board for your organization.

Here are just a few areas where Board leadership is essential in 2009.

Mission focus and fulfillment – the Board carries the mandate to keep the organization focused on mission fulfillment. The pressures of day-to-day operations coupled with the increased demand for services create an environment for unintended mission drift to occur. The board is responsible to helping the organization and its leaders to steady the course and stay focused on the mission.

Ensuring the organization has adequate resources to carry out its mission is ultimately the responsibility of the board. In many organizations this burden falls solely on the ED with little or no help from the board. The board should help lay the foundation for the fundraising and be willing to share their clout and contacts to help fund the mission. While the board may not be able to compensate for all lost revenues you might experience, they need to be fully involved and engaged in the resource development and allocation decisions.

Provide effective oversight and planning – this is especially needed in the tough times we are currently facing. Boards bring the collective wisdom to help the organizations’ leaders sort through their financial and programmatic challenges and help make tough budget, staffing and program decisions. The board may bring fresh thoughts and different perspectives to the issues resulting in better options and decisions for the organization.

In addition to all of those challenges, add the new IRS Reporting Requirements for Form 990 taking effect this year. There are new reporting requirements for all nonprofits for their 2008 reporting. The new form requires nonprofit organizations report on a much broader scope of management issues than ever before. Many of these issues delve into questions regarding the governance structure and board policies and actions on a variety of topics. In effect, the IRS is mandating a set of best practices for nonprofit organizations. We will devote a future issue of Great Grassroots Governance to these new requirements.

The actions you need to take with your board vary for every nonprofit and depend greatly on the current health and vitality of your board.

Here are a few scenarios to consider:

If your board is struggling in the leadership it provides the organization – now is the time to take action and find ways to strengthen the board through honest assessment and board development.

If there are vacant seats on the board, now is the time to launch an aggressive recruitment campaign.

If you have board members who are missing in action, now is the time to address their commitment to the organization. If they cannot or will not fulfill their duties to the organization, graciously release them from the board and replace them with board members who are zealous for the mission and have leadership skills needed.

If the board is fully staffed and functioning effectively, now is the time to thank them for their dedicated service and tap into their collective wisdom to help the organization navigate the current and future challenges.

2009 is a year of challenges. But we believe it is a year of opportunity and many nonprofits will rise to the challenge, meet the emerging needs in their community, expand their base of future support, and become a better organization. We believe you can be one of those that will meet and exceed the challenges. We’re here to help with resources and coaching.