October 28, 1929 was “Black Monday“, one of the pivotal days of the devastating stock market crash just before the Great Depression. Whether major or minor, economic downturns can force sudden budget cuts. Some advance planning and thought can help avoid disastrous quick “fixes” (such as cutting every budget item by a matching set percent, which can weaken all programs). Have a clear – and shared – understanding of your organizational priorities: this leaves you more prepared for both opportunity and financial disaster. Include in discussions the people who will be most impacted by the potential cuts – staff and people served – so that you maintain trust and people have as much time as possible to cope with the change. Cuts done with care, sensitivity and community buy-in can minimize damage and build relationships.
