The Commons

It’s hard to believe that On Philanthropy once asked, “Does Economic Downturn Mean Crisis for Nonprofits?”

Eleven months later, there’s a tendency to say, “Uh, got a harder question?”

Across higher ed and the nonprofit sector, institutions have taken emergency measures that have worked before. Dartmouth announced sharp cutbacks in the fall. University of Michigan Hospitals froze hiring.

But organizations are employing a new measure—frank, widely disseminated communication from leadership. In October, Yale President Richard Levin reported the status of Yale’s portfolio. At Muhlenberg College, President Richard Helm updated alumni on the College’s financial health twice last fall. At University of Miami, President Donna Shalala walked through specific action steps.

These communications can be uncomfortable. Facing both the economic crisis and long term underfunding, President Mark G. Yudof said of the California state system, “We’ve probably done some things we’re not proud of.” Among them: “We’ve probably let the student faculty ratio rise.” Some leaders may find reasons not to be quite so candid.

Some questions:

• At what point could such transparency threaten to compromise your brand?

• Are there different messages for different audiences—and is that really possible in this media-rich era?

• What are the risks of saying nothing at all?

To this last question, I’d say the risks are high. In one case, a well-known museum, which sold two of its paintings to close a budget gap and has been blacklisted as a result, makes no mention of its crisis on its website—it’s likely that an opportunity to lead nationally, to discuss, clarify, and motivate is being missed. Similarly, a well-known college that has been placed on a watch list isn’t talking on its website. This case is more delicate—especially in view of the admissions season— but since the word is already out, communication from leadership should be considered.

Silence in these times may be scarier than the truth.

- Rob Moore, Managing Partner

Tags: economic downturn, higher education, nonprofit communications, trends