As someone who has worked extensively in and with organizations who serve the non-profit arena, I was recently asked to deliver a speech to the Lowcountry Chapter of Association of Fundraising Professionals (AFP). The speech was entitled “Opening Pockets while Tightening Belts” and focused on how to optimize organizational practices in order to maximize charitable donations - despite the rather dismal current economic conditions.Never one to sugar-coat, I started the speech off with some tangible snapshots of the economic adversaries we as a nation are currently facing. Pervasive newspaper headlines highlighting the grim stock market conditions, the crashing housing market and general consumer trepidation seem to beg the question that is on every non-profit executive’s mind: how is this dismal economy going to impact our fundraising efforts?
The first point I made was that the current recession and the weak economic environment does not have a direct correlation to fundraising success. Actually, since 1969 we have had six reported official recessions (indicated by red rectangles in the graph) and during each one of these periods, giving actually increased on a year over year basis. Admittedly, the year over year growth was much less than in non-recessionary years. However, the key take-a-way is that charitable giving continues. In fact, total charitable giving has only fallen once, in 1987 – and that had less to do with economic forces and was largely due to a 1986 tax law modification that motivated donors to “pre-donate” 1987 gifts during calendar year 1986. (Giving USA Spotlight, Issue 3, (2008). Giving USA Foundation).
Graph incorporates data compiled from Giving USA Foundation and Guidestar.org
Now, some audience members were understandably skeptical about these facts because during the same periods, they have heard about and / or personally experienced year over year decreases in charitable giving. This reality is a testament to the fact that each organization has its own ups and downs. The point is that there is opportunity to prosper despite the economy. I reviewed a study that was conducted by the Giving USA Foundation which illustrated that during a recession, 54% of surveyed organizations actually reported increased year over year giving.
Graph incorporates data compiled from Giving USA Foundation and Guidestar.org
So the question posed was, “How do we ensure that we are not part of the remaining organizations that experience year over year giving being flat or, worse yet, down?”
You can start by remembering a few fundamental principals:
- Develop a fundraising plan. Stick to it.
- Establish and track metrics for critical aspects of your program.
- Have diversification of fundraising programs / vehicles.
- Lead by example – ensure you have 100% Board and Executive giving.
- Solidify your organizational elevator pitch – mission, vision, values, goals, greatest needs, points of differentiation, etc. Practice it.
- Remember that keeping current donors is easier than attracting new donors.
- Know that people give to people – board solicitations, phone calls, personal visits.
- Leverage the holiday spirit. Not just ‘tis the season to give….but support a meaningful cause vs. buying Aunt Susie another pair of slippers.
- Re-invent / re-evaluate special events.
- Commit to stewardship – provide a timely “thank you.” Be accountable as to how you spend the donor’s investment.
- ASK for the gift….and be clear on its impact.
Since the title of the presentation was “Opening Pockets while Tightening Belts,” most people assumed the entire focus of the presentation would be on what organizations could do to motivate donors to give money. While this issue is clearly a major component, I also wanted to set the stage that now is a great time for organizations to focus on the future. Now is an instrumental time to make strategic investments vs. hunkering down and hoping to weather the storm.
I offered some key suggestions:
- Invest in the professional development of an organizational strategic plan. Nothing is more powerful than a plan that keeps you focused when fires are burning on multiple fronts.
- Collaborate with “like minded” organizations. How many times do you see organizations trying to do too much or to do that which is outside of their mission?
- Mergers & Acquisitions - not just for Wall Street. If a small community has four after-school programs, how much more effective could the programs be if back-office and administrative activities were centralized?
- Make fundraising everyone’s job. Do not enable staff members to point down the hall to the Director of Development’s office when asked who is responsible for fundraising.
- Invest in technology – whether it be to improve your website’s design and functionality, leverage social marketing tools or streamline your fundraising database.
- Modify Board governance – too often Boards become large and lethargic. Fill the Board with business-minded, committed supporters. Develop a “farm team” that is comprised of advisory and project-specific committees.
People seemed to acquire the optimism that often accompanies fresh perspective. Hopefully the majority left the session with a sense direction and faith in having a successful fundraising year – despite the economic downturn.
A PDF version of the presentation is available on our website at: www.knowledgecapitalgroup.com/insights.php
As always, I encourage you to comment on this blog and provide any suggestions you deem meaningful.
