Bob Swaney on the Post-COVID Future of Innovation in the Nonprofit Sector

Bob Swaney is the founder and CEO of Robert Swaney Consulting, Inc., and we recently had a wonderful conversation with him about the move toward accountability, increasing collaboration, and emerging entrepreneurialism in the nonprofit sector. He reminded us that, even though COVID-19 has presented some of the most significant obstacles nonprofits have faced in many years, it has also been an engine of creativity and innovation in the sector. 

Resilia: Which changes in the nonprofit sector prompted by COVID-19 will persist into 2021 and beyond? What recommendations do you have? 

Bob Swaney: Here’s what we tell our clients: You should align your recovery with that of your community. Across the country, communities are at different points in the recovery process, which means the idea of aligning your mission with what’s important in the community will lead to grants from governments and other grantors. 

One positive outcome has been an increase in board activity. Many boards are turning more into working boards than just governance boards. In the arts, it’s become an all-hands-on-deck approach. There’s a risk of micromanagement, but the balance between working boards and governance boards will likely emerge naturally in 2021. 

Resilia: What should nonprofits be doing to attract more support from grantors in 2021? 

Bob Swaney: Nonprofits need to be doubling down on stewardship, real relationship building, storytelling, and individual investment – it’s possible to involve grantors in ways they normally wouldn’t. Grantors are beginning to reevaluate how they support nonprofits – measurable, value-based work will be rewarded through support. Nonprofits should be asking themselves: What does your organization do so uniquely and with such importance that it warrants support? How does that align with community recovery? How does it serve some specific sector of the community? And why is it important right now?

Resilia: How should grantors change the way they work with nonprofits? 

Bob Swaney: Grantors set the tone for community recovery, and they’re becoming more sophisticated in how they measure success moving forward. The free pass that organizations received early on in the pandemic – everyone just do everything you can do right now – is giving way to a more mature and thoughtful approach. We’re also going to see grantors serve as facilitators that connect nonprofits with government agencies, community foundations, and other organizations that can pool resources and scale collective impact. 

Resilia: What’s the most positive trend in the nonprofit sector going into 2021? 

Bob Swaney: Entrepreneurialism has been emerging among nonprofits, and this will shape the sector in 2021. When there’s no room for error or experiments, you have to be resilient and focused. But now that the end of the pandemic is in sight, nonprofits have to cast off the rigidity and stop focusing on what they can’t do that they used to be able to do. Keep an eye on the smaller organizations, which are more nimble than the large ones – they can go out and do more with less risk, which makes them more appealing to some grantors. 

Resilia: Any final pieces of advice for nonprofits adapting to the pandemic and preparing for the post-COVID world? 

Bob Swaney: Have flexible tactical plans – strategic plans are more like a straightjacket. Boards and staff are more focused on tactical plans, anyway, as they’re more flexible and fungible. This is better for organizations that are in flux right now. Here’s the basic outline of a tactical plan for a nonprofit (over a six-month period at maximum): What core services are you going to focus on? Instead of trying to get thirty things back up and running, pick five things and do them well. Focus on messaging, stewardship, and adapting the fundraising strategy for the next six months. Grantors are helping with these short-term issues – they’re aligned with communities, so organizations should follow suit. As always, focus on what you can do instead of what you can’t do.