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The balancing act of slack in nonprofits

Nonprofits often operate with limited resources, yet they also need flexibility to adapt to unexpected challenges. A new study from the Center for Security and Resilience at the ������������ School of Economics explores this tension and rethinks the concept of “slack” - the resources beyond what is strictly necessary for daily operations.

Traditionally, slack has been seen as either a luxury or a weakness. But this research shows it can instead serve as a buffer that makes nonprofits more resilient, especially in uncertain environments. The authors introduce the idea of tappable slack - resources that can be mobilized quickly when circumstances change.

Why it matters

For practitioners, the study highlights that slack is not inherently good or bad. What matters is how it is designed and managed. Financial reserves, flexible staff time, or strong volunteer networks can all serve as tappable slack if organizations know how to access them.

This insight is especially relevant for leaders navigating crises - from funding cuts to sudden increases in demand. Instead of seeing slack as inefficiency, the research encourages nonprofits to view it as strategic preparedness.

Designing for resilience

The authors suggest three ways nonprofits can make slack more “tappable”:

• Differentiate types of slack: Identify which resources are available but idle, and which can be activated quickly.
• Link slack to the mission: Ensure that reserves, partnerships, or staff time are aligned with core goals.
• Recognize the context: Different nonprofit environments - from humanitarian aid to local associations - require different levels and types of slack.

A more nuanced view of efficiency

The study argues for moving beyond a narrow focus on efficiency. Instead, nonprofits should consider resilience as equally vital. Tappable slack helps them withstand crises without losing sight of their mission - ultimately benefiting the communities they serve.