Help! Our organisation is in trouble, and we don't know what to do!

A trouble shooting guide

Small non-profit organisations usually have to run on very limited resources, so it is no surprise that from time to time some of them find they are in trouble. 'Trouble' can include financial hardship, chronic staff shortages, impossible client loads, and poor board-staff relations, to name a few.

It is important when crisis hits to identify exactly what is causing the difficulty. For example, poor staff relationships may be a symptom of ongoing uncertainty about the organisation's future, or stress caused by dealing on a day to day basis with difficult clients.

The following is a list of typical problems that can occur in an NGO, with some suggested directions for tackling them:

Symptom	Possible causes	Suggested actions
Staff are unhappy	staffing conditions, eg short-term contracts or no contracts poor pay unequal pay scales (perceived and actual) unpaid overtime feeling unsupported by management and/or board physical environment - eg overcrowding exact duties are unclear, unstated, overlapping difficult clients staff are burnt out some staff have been in their jobs too long	Manager to arrange individual interviews based on 'staff performance review' template to identify true causes. Do not immediately offer solutions; causes may be complex and systemic. Develop a list of possible solutions for discussion to present back to staff. Where problems are chronic, explore longer-term strategies to overcome problems (eg better staff roster; external supervision arrangements for frontline staff). Where staff are affected by personality clashes, begin informal/formal conflict resolution processes. If conflict between Manager and staff, refer to board for action. Refer back to HR policy and procedures and make sure they are being followed.
Money is running out	grant base is insufficient to meet organisation's needs unforseen costs spending has been uncontrolled a number of grant applications have been unsuccessful financial reporting did not forecast shortfall there is no financial reporting	If financial situation is unclear, notify board immediately. Consider hiring in someone to check over the books if book-keeper unable/unwilling to do it. Bring report to board with recommendations. Assess likelihood of future successful grants. If situation is serious, ask financial advisor to set in place a wind-up scenario (eg 'trigger' events for windup). You will need some money left to wind up properly. Notify funders if the situation serious. They may be able to offer short-term assistance. If a number of grant applications have been unsuccessful, seek funder feedback on why. Review grant writing process. Do not rule out fraud as a cause.
Board and staff conflict	Board are micro-managing Board perceived to have an 'agenda' by staff Governance role of the board not understood by staff Board lacks unity and individual board members complain/gossip to staff Board and Executive Officer conflict 'Founder syndrome' - some board members have been around too long	Board to review its functions according to accountability statement, and make clear separation of roles with Executive Officer Invite staff to attend board meetings Educate staff regarding legal responsibilities/governance role of the board Board needs some time alone (not in usual board meeting time) to resolve conflict and dissent Board needs to develop and sign off on a code of conduct
Everything is going wrong	Organisation has long-term problems requiring significant overhaul There is no, and has never been, a strategic plan Everyone is exhausted The organisation has ceased to have a clear purpose or be relevant	Organisation definitely needs outside help. Contact ACTCOSS for advice. If organisation has ceased to be relevant, consider winding up.

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