Masters Thesis

Survival of the nonprofit organization in an economic crisis

The national and local economic crisis remains a serious concern to society. With one of the highest budget deficits nationwide, California Governor Edmund Gerald Brown, Jr. (Jerry Brown) is taking drastic budget saving measures. Numerous budget allocations for State agencies have been reduced. In turn, the Department of Developmental Services (DDS), the agency who provides services to developmentally disabled persons, as mandated by the Lanterman Act, has changed policy priorities. These changes have occurred despite the increase case loads and costs to purchase services for their clients. As the government becomes more restrictive on government assistance, the demands on nonprofit human service organizations, such as California Nonprofit Organization (CNO), have increased. Nonprofit organizations are acknowledging the reality that they can no longer rely on government funding. However, in seeking non-governmental funds, they have found that individuals, corporations, or foundations have reduced or stopped giving. In these challenging economic times, CNO is in survival mode and operating more like the private sector regarding transparency and accountability. They are engaging in organizational change and making new policy decisions to improve overall performance and help minimize the risk of further economic crisis. The overall study of this matter determined that the following policy alternatives should help CNO mitigate the problem: 1. Develop a strategic plan 2. Develop fund a development and marketing plan 3. Collaborate with a compatible nonprofit organization.

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