December 3, 1998 | Read Time: 4 minutes
The technology breakdowns that are certain to arise as a result of the “year-2000 problem” will test the ability of non-profit organizations and foundations both to plan for an emergency and to respond when it hits. It is a challenge for which the non-profit world is ill prepared.
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Non-profit organizations around the country — including some that insure that people’s basic needs are met — are already being affected by the computer glitches. Those problems will become increasingly common, and more serious, as the turn of the millennium approaches. Unless charities work to correct the problem now — and unless foundations make it a higher priority for their grantees — disastrous consequences could be in store.
To recap simply, many computers are programmed to read only two digits for the year. Therefore, they will, in effect, read the digits “00″ as 1900 rather than as 2000. As a result, non-profit groups that use computers in their daily operations — and especially those that rely on them to provide direct services to people in need — could experience significant interruptions in service. And the breakdowns that will inevitably occur at banks, utilities, and other businesses on which most charities depend are also sure to affect charities’ abilities to provide services.
When non-profit leaders have thought about the problem at all, most have approached it only in terms of what they must do to keep their own organizations operating, asking such questions as whether they need to upgrade or replace their computer systems. Others have seen the situation as a problem that government and the technology industry must fix. But very few chief executives of non-profit groups have thought about how they will manage the extra demands that the disruptions in service will place on their organizations.
Because of the scope and seriousness of the problem, boards and chief executives cannot be concerned about only their own organizations, nor can they leave the task of solving the problem to their technology staffs. This is a leadership issue — a management, decision-making, contingency-planning issue — and non-profit executives must do everything they can to work together to reduce the possibility of disruptions in critical services and to provide remedies when problems arise.
For many charities, that will take more resources. Several foundation executives have commented that they have not made any grants to help non-profit groups prepare for the pending problem. They note that, for the most part, they have not received any requests for such grants.
The experience of those executives is probably typical of that at many other foundations. Under their grant guidelines, most foundations would be unable to accommodate a request for funds to deal with year-2000 problems. This is one time when foundations might want to use whatever flexibility they have to assist non-profit groups that cannot afford to upgrade their systems. Trustees must become knowledgeable about the dimensions and possible impact of year-2000 problems and exercise the necessary leadership for the philanthropic world to be able to respond.
Meanwhile, Congress and the President have recognized the seriousness of the problem by enacting the Year 2000 Information and Readiness Disclosure Act, which protects from liability corporations and organizations that, in good faith, share information that may turn out to be wrong. That law should be the impetus for non-profit organizations to form alliances with government agencies and local businesses and to urge them to begin or to increase planning for the expected breakdowns.
Plans should focus on what to do if and when electric power and heating systems fail, for example. One suggestion at a recent meeting was that a site in every community, such as a high school, community center, or other centrally located building, be equipped with food, water, and other necessities. That is the kind of planning that must be taking place now.
Meanwhile, many charities are already responding to the impending crisis by gathering and sharing information; by forming partnerships and collaborations with other charities, government agencies, and businesses; and by making other plans to insure that their communities will continue to function.
United Way of America, for example, has developed a manual for its members and is planning other activities to help charities prepare. Several heads of the largest human-services organizations affiliated with United Way also are beginning to discuss the problem and how they might coordinate their planning.
My organization, Independent Sector — which represents 700 charities and foundations — has begun to collect information and resource materials of relevance to non-profit groups and bring them to the attention of the President’s Council on Year 2000 Conversion. We will also try to keep American organizations informed about what non-profit groups in other countries are doing.
But so much more needs to be done. Quite soon, all of our institutions, government agencies, religious groups, and non-profit organizations will face a major test of their ability to deal with an emergency. Elizabeth Dole, president of the American Red Cross, once remarked that “the midst of a disaster is the poorest possible time to establish new relationships and to introduce ourselves to new organizations.”
Let’s anticipate and start preparing for the problems caused by the year-2000 glitch now, or we will fail our communities.
Sara E. Melendez is president of Independent Sector, in Washington.
