Community foundation: Here to help nonprofits become resilient

'My View' by Christopher Goett, MSW

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On Jan.27, the Trump administration announced an immediate freeze of federal grants. While two federal judges have since overruled the order, the news has nonetheless sent shockwaves that continue to reverberate through New Mexico’s nonprofit community.

Federal grants are a financial lifeline for nonprofits and the critical services they provide families. According to our recent survey of 200-plus New Mexico nonprofits, 66% reported they receive federal funding, with 22% relying on federal money to support over half their operating budget. There are nearly $1 billion in government grants on the line for our state’s nonprofit sector. While philanthropic dollars are nimbler, they simply cannot replace the sheer quantity of federal support our communities rely on.

In this era of so much uncertainty around federal funding and government rules, how can New Mexico’s nonprofit sector build resilience? Education is key.

Many know the Santa Fe Community Foundation as one of the largest nonprofit funders in the state. But we also have a longstanding commitment to strengthening the local nonprofit sector beyond grant making. Since 1996, we have provided nonprofit staff and board members with educational opportunities through our Learning Hub. We offer classes, trainings and workshops on a broad range of topics such as fundraising, communications and HR best practices.

Our goal is to equip nonprofit teams with knowledge and tools to better serve New Mexicans now and in the long term — including in how to weather unforeseen crises, ranging from the pandemic to wildfires to shifting priorities at the federal level.

Now, during a potential downturn in government funding, we are piloting a new program in New Mexico called Fuelworks. This program, which we are presenting in partnership with RevJen (a national organization for nonprofit leadership development), addresses financial instability by giving nonprofit leadership teams the tools to reframe their approach to sustainable revenue.

Last month, classes began for the first New Mexico Fuelworks cohort. The group, comprised of several senior staff members from three similarly sized nonprofits, is devoting 18-plus hours to hands-on learning and will have ample opportunity to exchange ideas in a collaborative setting. Workshops cover topics such as revenue model and strategy, organizational design, resource allocation and revenue culture — all core components in developing revenue capacity infrastructure for nonprofit organizations.

At the end of the experience, the leadership teams will walk away with a stronger command of their revenue streams and financial models — aligned and ready to implement practical tools and strategies for growth that can be sustained in the long haul.

One participant already shared with me, “[This workshop series] allowed for us to cover a tremendous amount of ground in a relatively short time, in a way that felt manageable and very productive. It brought our team together quite strategically, and there are so many takeaways that I feel confident will be impactful for our revenue efforts.”

While nothing can replace the need for strong and predictable government funding, education initiatives like Fuelworks are always valuable. According to a recent industry survey, four of nonprofit leaders’ top five challenges are revenue-related. These challenges, which range from fundraising stress to underinvestment in operations, are widespread in the sector and amplified during current times of uncertainty.

A strong operational foundation is crucial for long-term success. Nonprofits have long been discouraged — by funders and donors — from spending on the very infrastructure that supports their ability to fundraise, deliver programs and scale their impact. This culture of underinvestment has created a vicious cycle, where nonprofits struggle to increase revenue and, in turn, are unable to strengthen the organizational capacity that could help them achieve greater financial sustainability — and enduring support for our New Mexico neighbors in need.

While recent developments have been deeply challenging to nonprofits and so many in our community, this moment can serve as a wake-up call to strengthen and diversify our funding. As we move forward, I encourage every nonprofit leader to examine their own organization’s financial health. Whether you are already participating in programs like Fuelworks or looking for new opportunities to strengthen your operations, know that the Santa Fe Community Foundation’s Learning Hub is here to support you.

Christopher Goett, MSW, is president and CEO of the Santa Fe Community Foundation.