January 8, 2009 — If Massachusetts nonprofits want to continue to exist when the economy recovers, they'll need to develop new operating modes—and not hunker down—in response to the current economic downturn, a panel of veteran nonprofit leaders told more than 400 nonprofit representatives and service providers today.

The unprecedented gathering, convened in Boston by Associated Grant Makers (AGM), brought together funders and nonprofits to discuss how to respond to financial pressures wrought by the current recession.

Hubie Jones, social justice entrepreneur in residence at City Year, Inc., which unites young people of diverse backgrounds for a year of full-time service, said, “Now is not the time to hunker down or to shrink, but to get creative and go for broke.”

While noting that “anxiety is high and people are scared,” he said this is not necessarily bad, as “it gets people to start talking honestly about their situation.”

Kristen J. McCormack, director of Boston University’s Public and Nonprofit Management Program, suggested that many nonprofits often don’t re-assess their revenue model – how it’s structured now and what may be more appropriate going forward. As a result, when facing a crisis, organizations tend to focus on maintaining themselves.

“It’s not about saving organizations, but about the needs of the community and how to address them,” she said.

Reinforcing her point, Greg Torres, president of MassINC, a Boston nonprofit that develops independent research on key issues facing Massachusetts, said that instead of becoming “frozen by the apparent severity of the crisis,” nonprofits should view a difficult time as an opportunity to do things differently.

“The models [of nonprofits] have to change to meet changes in demographics and community needs,” he said.

Noting that nonprofits “have to have new thinking and strike out in bold ways,” Jones said the place to start is by developing a comprehensive research and planning mechanism that identifies and quantifies needs across the region to learn what need’s are not being met, as well as areas where there may be redundancies.

He said funding sources, including community and family foundations, currently do not have access to planning information for the decisions they are being asked to make.

All panelists agreed that nonprofits need to articulate their case to funders, government agencies, and other key supporters and influencers.

“Nonprofits are the among the least understood parts of the economy,” said Diana Pioscotta, executive vice president of Denterlein Worldwide, a public relations and public affairs firm. “If we want to moved forward, we have to revolutionize the way people think about nonprofits.”

AGM President Ron Ancrum set the tone for the meeting, noting that “the normal way of operating is at risk” and advised nonprofits to seize the opportunity to work together and with foundations and government. “This is a moment we have...to come together. It’s not the time to point the finger at what went wrong.”

The meeting, moderated by Anthony Everett, co-anchor of WCVB-TV’s Chronicle program, was sponsored by AGM, The Boston Foundation, Massachusetts Nonprofit Network, Third Sector New England, and United Way of Massachusetts Bay and Merrimack Valley.