Does it ever make sense to sunset an organization? The pandemic provokes this question for some

While some institutions are set up with the intention of eventually closing (The Atlantic Philanthropies comes to mind), they tend to be the exception. However, the onset of the Covid-19 pandemic and resulting economic fallout have prompted a number of nonprofit leaders to consider the difficult questions of if, when, and in some cases how they might shut their doors permanently.

Nonprofit boards routinely discuss and debate how and when to grow, evolve, modify, merge, and even acquire other entities. But when an organization faces extreme financial difficulty, outside forces limiting their existence, or the absence of viability with a limited path forward, the challenging and emotionally difficult conversations about closure arise.

What can you do to avoid this outcome?

Before you decide to close, consider buying time through restructuring, funder negotiations, and a ramp up of fundraising.

Seek out a potential collaborative partner, a merger, or an acquisition option to keep services and staff effectively transferred elsewhere.

If you’ve exhausted all other avenues, take stock of your accomplishments, celebrate the milestones, then focus on how to support your staff and communicate openly with your stakeholders.

And if you find yourself in this difficult position, know that you’re not alone.  Thousands of organizations are considering these options right now.