By:
Kristin Clarke , ASAE & The Center for Association Leadership
kclarke@asaecenter.org
Source: Center Collection
Published: March 2008
This article contains five easy-to-follow tips for keeping your fundraising efforts going strong regardless of the economic forecast.
“When we have an economic downturn, people often think they need a different strategy for fundraising in a recession. The best strategy is actually the opposite of that--it’s the fundraising basics you need to concentrate on,” advises Curtis Deane, principal, WoodleyLion Consulting, and longtime nonprofit fundraiser. He recommends the following:
- Make sure you have a strong case for support, a compelling story about what your organization does. Donors must know where their dollars go and that they have positive impact.
- Recognize that recessions can ramp up the urgency levels in favor of your case. Food banks, for instance, might acknowledge that their annual donors are facing economic challenges, but these nonprofits can emphasize that their services are called for now more than ever because of increased need.
- Emphasize your annual donor because “the people who give you $100 to 1,500 each year are the people potentially wondering if they should give you the full $250 rather than just $150 this time. This is important money because it has the most flexibility and involves important, loyal donors who have been with you for several years,” says Deane. Focus on keeping such donors informed and motivated to maintain their support.
- Understand that corporate donations are the first to decline in a recession. This can hit hard if your organization relies too heavily on corporate donations. Resist the temptation to go after “big gifts” from companies because they will make the largest difference, rather than lots of smaller gifts from individuals. The reality is that corporate giving is less reliable, and the time away from individual donors—who provide more than 83% of charitable donations anyway--will erode.
- Don’t cut back on development staff. Avoid the knee-jerk reaction of downsizing fundraising staff to “save” money and, indeed, do all you can to keep them from being cherry picked by others. “The attention of your fundraising staff is of higher priority in a downturn than at any other time,” Deane says. “[Layoffs in that department] will take your revenues further down and will result in poorer fundraising results well beyond the economic downturn.”
Overall, despite recession fears, nonprofit leaders probably don’t need to do anything dramatically different, Deane counsels: “You need to stay with your tried-and-true efforts.”
Kristin Clarke, CAE, is a writer and researcher for the Philanthropic and Social Responsibilities initiatives at ASAE & The Center for Association Leadership. She can be reached at kclarke@asaecenter.org.
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