When the mission outpaces the budget, or there are unexpected funding problems, the hardest and most necessary move is to cut deep, and cut once.
Beware the temptation to ask: "What is the bare minimum we can do to keep the lights on?" This is not strategic, and it will have its own consequences down the line. If you don’t cut deep enough, and you’re forced to return to the board for a second round of layoffs in a year, it could shatter the trust of your donors and the morale of your remaining advocates.
There’s an opportunity here:
If you can look at forced layoffs as a moment of intentional stewardship, and get curious about what opportunities a leaner structure affords, you may come up with a plan that brings you even closer to your mission.
A smaller, thoughtfully restructured organization allows you to:
Deepen impact on key programs
Pivot quickly toward new, sustainable funding models that previously got buried under “important but not urgent”.
Restore clarity for your staff, ensuring every hour worked translates directly to your mission.
The current funding landscape is a filter. I believe the organizations that will emerge from this period are the ones that used these constraints to find a focus.
But expect it to take time.
After cutting deep, you’ll need to heal the culture and reinforce the "why" to your remaining staff, re-engage your community with your refined focus, show the impact of the leaner model, and launch your next major campaign or grant cycle with a proven, disciplined story of success…Whew.
When it comes to funding challenges, the obstacle might be the way. It may be time to get creative.
You’ve got this 💪.
