The global economic crisis of 2008 and 2009 coincided with a fundamental change in the media and communications delivery landscape. At the same time, the U.S. Presidential elections produced a dramatic shift in the nation's legislative, fiscal and regulatory environment. For nonprofit organizations, this ushered in a period of rapid change and tremendous challenge – but also the opportunity to re-examine operating principles and establish a foundation on which to thrive, and not just survive, over the long term.

Citi, long a leader in community development efforts, moved quickly to develop an innovative program that would help community development organizations secure the resources necessary to maximize their services to families and communities across the country. In June 2008, Citi launched the Citi Communications Capacity Project (CCCP) to fund the development of sustainable communications, public relations and digital marketing infrastructures of key nonprofit organizations.

• CCCP matched leading community development organizations with world-class digital brand management and public relations firms in an intense, six-month engagement to build and upgrade their communications infrastructure.
• CCCP activities covered a spectrum of enhancements related to on- and off-line communications, such as website tools and analytics; media training and outreach; core messaging and brand development; and a comprehensive assessment and plan to maintain the strategy going forward.
• CCCP dedicated resources to communications and marketing, areas typically overlooked and under-resourced by funders and nonprofits, despite its importance in enabling organizations to maximize their ability to serve their constituents over time.

Opportunity

Over the last two years, the economic downturn has negatively impacted communities and families across the spectrum. This upheaval has put tremendous pressure on nonprofit organizations working to respond to the immediate crisis while continuing to address public policy challenges and decreased funding streams. While demand for their services has increased, nonprofit funding has steadily declined over the past year. Since November 2008, the percentage of nonprofits reporting funding cuts has increased from 52 percent to 69 percent, and the percentage reporting cuts of more than 20 percent has increased from 13 percent to 24 percent.

Many nonprofits are cutting staff, reducing services and consequently experiencing a diminished capacity to focus on the crisis at hand. Giving USA's annual report predicted tough times throughout 2009 for the social-service sector. Of 228 organizations surveyed, 60 percent said they were cutting expenses, including programs and staff, due to funding shortages. Among organizations serving young people, 74 percent said they were underfunded and unable to meet current demand. In this unfortunate cycle, as the economic strain worsens, community need outpaces an organization's ability to respond.

Meanwhile, a revolution in the communications and media landscape has been accelerating exponentially. Several newspapers, including the Seattle Post-Intelligencer, have shuttered their print operations completely and gone online. Journalists, companies and nonprofit organizations are increasing their presence and activity on social media channels such as blogs, Twitter and Facebook. Nowhere has the proliferation of social media been more apparent than during the 2008 U.S Presidential Campaigns. Now President, then Candidate, Obama's campaign used innovative online strategies to organize and mobilize supporters, such as viral marketing, video and peer-to-peer microsites. While the new media age presents tremendous opportunities for nonprofits, deepened financial constraints and a general lack of understanding have limited their potential to leverage these changes, let alone keep up with them.

Innovation

Creatively dedicating resources to an area typically overlooked and under-resourced by funders and non-profits – despite its importance in enabling organizations to maximize their ability to serve their constituents over time – the Citi Communications Capacity Project uniquely targets the communications, public relations and digital marketing capacities of nonprofit organizations to support their work on behalf of low- and middle-income communities.

"CCCP connects community development organizations with best-in-class
 resources during and intense six-month period to boost their abilities to
 communicate and attract funding"

Even in better economic times, nonprofit organizations typically do not invest in activities viewed as tangential to the core mission. Available funds are usually spent directly serving the needs of their constituencies, rather than on increasing organizational capacity. In addition, funders often require nonprofits to provide program metrics directly tied to the organization's stated purpose, further constraining operational investments. As a result, many nonprofits are unable to justify investment in "back office" capabilities such as communications, marketing, legal, human resources, finance and technology.

As a result of its deep relationships with many leading community development organizations, Citi had an early view of how the economic crisis would impact nonprofits. Following an initial nonprofit convening to discuss strategies to survive the downturn, Citi recognized that immediate action would be required. Nonprofits would have to innovate for maximum return on their limited resources.

Citi formulated a pilot program to provide a targeted and limited investment in the communications infrastructure of selected nonprofits so that they could more effectively access key constituencies, funders, media outlets, government agencies and other nonprofits. This outreach would expand the impact of their work and assist with the operational capabilities necessary to access new federal and local funding to support distressed communities nationally. The innovative use of marketing resources to partner with key nonprofits and world-class communications firms is a new step in the financial services sector.

Impact

Citi Communications Capacity Project launched its pilot round in June 2008 by providing funding to the following leading community development organizations: National Development Council, Social Compact and the National Coalition of Asian Pacific American Community Development.

Early reports from the CCCP organizations are positive – showing significant benefits ranging from greater collaboration among stakeholders to achieving more meaningful press coverage and attracting increased funding from new partners. CCCP nonprofits are communicating more efficiently, effectively and consistently with key audiences, and potential end-users are finding it easier to tap in to the resources available from the organizations. This has led to an increase in mission-related work and funding opportunities. The project's pilot round has also yielded valuable lessons and suggestions for improvements for future program participants.

• One organization reported that its new website had made it "1,000 percent more attractive" to potential business partners, and that people learned enough online to engage staff on substantive programmatic issues rather than introductory questions. This informed engagement has saved hundreds of hours of staff time.
• Participants reported cultural shifts. Staff members who had never heard of a blog are now blogging regularly, and social networking capabilities are encouraging previously un-networked constituents to communicate with each other. The new infrastructure has added a communications component to planning, and successful proof points that had been difficult to find are now proactively provided among internal and external stakeholders.
• The organizations have reported changes in the nature of their work. For example, Frequently Asked Questions pages on the website have allowed staff to disengage from time-consuming conversations.