Last week the market fell, fell again and then fell some more.  Yesterday, it popped back up and today it is drifting downward again.  Who knows what will happen tomorrow?  We don’t, and we do not know anyone who really does.  However, we do know that fundraising programs that have strong leadership, solid cases for support, excellent strategy and stewardship grow in good times and in bad. 

For example, just in the last two weeks, two of Ketchum’s clients have reported significant gifts.  Rapid City Club for Boys (South Dakota) just received its first charitable remainder trust which was funded with a $500,000 gift.  Massachusetts Eye and Ear Infirmary received three $1 million+ gifts in the month of September.  We have also read about many other large gifts being made. 

Statistics from Giving USA research show us that in good times and in bad your fundraising results are directly related to your plans and efforts and only very moderately related to the peaks and valleys of Wall Street.  This is our perspective.  Let us know what you are experiencing by posting a comment below.

Wow!  When I first wrote about fundraising in a bad economy in August, I do not think anyone would have imagined the events of the last two weeks.  Things have definitely gotten worse in some significant segments of the U. S. economy, and it may not have reached bottom yet. 

In the midst of all this doom and gloom, however, philanthropic history and research continue to remind us that the economy does not treat the fundraising of all nonprofits equally (for some thoughts and statistics on this go here).  In fact, the organizations that Ketchum sees continuing to invest in sound resource development programs are seeing a much smaller impact and many are seeing growth.  Below I have listed some of things we are encouraging organizations to do now to limit the impact of the economy on their fundraising efforts.

• Be armed with the facts about the impact of the economy on philanthropy
• Educate leadership regarding these facts:  Share facts and stats with board members, staff leadership and anyone else connected with fundraising at your organization.  You need all the ammo you can get to fight perceptions of the economy and its impact donors, volunteers, meetings, plans and strategies.
• Focus on organizational alignment: Make sure there is a clear understanding of what your fundraising priorities are.
• Refine your case: Articulate the impact of philanthropic dollars on your mission and organization.
• Maximize support from donors you already have: Donor acquisition can be costly.  It is a good time to be sure you are maximizing the philanthropic potential of your current supporters.  If you have not conducted an individual-specific, hard-asset data electronic screening (which is different from a demographic or analytics-type approach) of your database in the last 2 years, now is a good time to consider one. 
• Go where the money still is:  If your organization is national in scope, focus on areas of the country where the economy has had as big of a dip (as in NYC).  If you are regional or local, focus on donors whose wealth is not tied to financial markets.  Older donors who have been out of the stock market and into more stable income-producing assets might also be better prospects right now. 
• Invest in an audit:  This will insure that your fundraising investments and resources are producing the maximum ROI. 
• Use the economy as a reason to engage more volunteers in your fundraising: It is always a good idea to engage volunteers in fundraising.  Money follows involvement.  When resources get tight, it can be even more important.  Why not set a goal to increase the number volunteers involved in your annual campaign by 20%?  It will not cost you much and could produce big results.

Do you have other strategies that are working?  Let us know by posting a comment below. 

It is “gut check” time for nonprofit organizations.

A very accomplished fundraising consultant and former colleague of mine often says that “when a donor does not want to give, a Board doesn’t want to fundraise, or a staff does not want to go beyond its fundraising comfort zone, any excuse is as good as another.” Today it seems that the economy is providing a lot of organizations with a possible excuse to reduce their investments in raising funds or to potentially hold off on projects or programs that just months ago seemed critical to their missions.

Who can blame them for such anxiety? It seems that any time the economy takes a dip, a series of high-profile discussions begin around how the economy does or does not impact fundraising. The media starts issuing statements about donations being down and fundraisers being concerned. Seminars, discussion forums, think tanks and everybody else weighs in with opinions and occasionally some facts. (Interestingly, I rarely see articles pop up when giving is up, fundraisers are confident, and organizations are accomplishing their missions in new and creative ways. We all know that bad news sells more than good news).

All these messages of fundraising doom and gloom can be hard to ignore. And if an organization is looking for a good excuse to miss its fundraising goals, put a project on hold, or not stretch beyond its current state, a “bad economy” can be helpful.

In our experience, a bad economy or any other negative factor is a great opportunity for an organization with a strong knowledge of its vision and impact, a clear strategic plan and a commitment to engaging and involving others in achieving it mission through philanthropic support and volunteer activity. If nothing else, since other organizations pull back or put on hold their fundraising efforts in a bad economy, those who continue to move forward have less competition.

A bad economy should serve as a “gut check” for any nonprofit organization and prompt both staff and volunteer leadership to consider how they would answer the following questions:

• If your organization ceased to exist today, who would notice and what would they notice?

• Is your organization providing programs and services that are “nice to have” only when people have extra money to give away or are your programs and services essential and worthy of sacrificial giving?

• Are philanthropic dollars important to your organization? Or are they the “icing on the cake”? What difference does this type of support make in your organization?

I realize that fundraising is never easy and that when people who have supported your organization forever say they are going to have to cut back their support, it is hard to hear. But listen a little more closely to what that message really is. If their philanthropic support of your organization was making a meaningful difference in something that they cared passionately about, would they cut their support every time they had a change in circumstance? Or would they look for ways to continue making that difference?

Philanthropy without passion rarely changes anything. And low priority giving is usually the first to go in a tough economy. So ask yourself…do you look for ways to make your organization a priority for your donors or not?