I just returned from spending 10 incredible days on the English coast with youth leaders of organizations from around the world. I helped them look at the impact the worldwide recession will have on all charities.

What is clear to me about this recession is that private foundation dollars will be decreasing as corporations have less money to give to charity. And individual donors will be more cautious and concerned about their declining nest eggs.

This week, let's take a look at how you can prepare your organization for the anticipated tough times ahead.

1. Understand your organization and your operational costs. It is important to have an in-depth understanding of the real and actual costs of running programs because the administrative dollars need to be added accurately into your program budgets.
2. Develop a clear and concise case statement that describes your programs and services in an easy to understand manner. It is a good idea to develop a "30 second elevator speech" that all of your staff, board, and volunteers can use when they meet people in the community.
3. Develop and design contingency plans now in case you have to cut programs and staff. Remember to balance out the mission and money and look at both the short-term and long-term ramifications of reducing or cutting your key assets.
4. Try to keep morale positive even though you are entering hard economic times. If you have to reduce staff treat people that are leaving with respect, appreciation, and thanks for their hard work. Try to maintain and pull together the rest of the team.
5. Look at the long-term but focus on what is in front of you. Realize that the economy will improve in the future. It might be hard for a few years but it will turn around.
6. Honesty with the staff is always the best policy. Make sure that you are very honest and direct with your staff and let them know quickly what the financial picture is. Describe the financial situation to everyone as a group rather than letting them hear about it piecemeal through the grapevine; you want everyone to hear the same information at the same time.
7. Involve the best minds you can to help develop the strategies and tactics to get through these times. Don't think you need to handle all of these issues alone.
8. Manage the fiscal and emotional stress by communicating constantly with your staff, board, volunteers, donors, and all of your stakeholders. Consider developing a monthly e-newsletter that will inform everyone of your activities and progress.
9. Reduce your costs as much as possible. Since salaries are usually two-thirds of most organizations' budgets, look here first to save money through hiring freezes, job sharing, reduced compensation, and other approaches.
10. Bring staff and board together more regularly than before. The ability to support each other is critical to withstanding these difficult times.