Fundraising in an Uncertain Economy

During times of general upheaval in the financial markets and reports of economic meltdown, nonprofits are faced with tough choices, and, while there probably isn't a single solution that will apply to everyone, there may be some ways to lessen the immediate impact.

We (FundRaiser Software) have been talking with hundreds of nonprofit organizations every week, and actively seeking information and feedback about what they are going through, and what's working and not working. We also have dedicated staff members who comb through the online resources and forums, such as TechSoup to learn as much as we can about how nonprofits across the US are dealing with this as well as those in Canada.

We are happy to report that many nonprofit organizations are experiencing positive results by focusing on strengthening their relationships with individual donors through increased communication. We are learning that, while corporate giving does tend to decrease during times of economic hardship, individual donations tend to decline only 1% on an average. In addition, volunteers step up to the plate in larger numbers.

Since corporate giving typically makes up of only a small portion of the total giving for the nonprofit sector, this is a strong indicator that, by directing efforts toward better communication and lasting relationships with individual donors, nonprofits may be able to effectively offset the decrease in corporate giving. Best of all, nonprofits that are able to turn this economic crises into a positive experience will see long-term benefits to strengthening their donor base.

What is certain is that this is not the time to panic. Nonprofits should avoid the temptation to freeze up and stop fundraising and outreach efforts now, when their services are needed the most. Take the reins of this crises by reaching out to your donor base. In paraphrasing Warren Buffet's advice, "this is a time when you can spend less to get more."

Now is the time to be putting good donor management practices to work, and, to do so, you need good donor management software. Click here to learn more about the FundRaiser Family of donor management software, or complete the form at left to request a full evaluation package. 

Other helpful news articles 

A to Z Grantmakers' Guide for Uncertain Times

Foundation Giving Priorities Remain Consistent During Economic Slowdowns

Fundraising in Tough Times: a nonsense guide to surviving in a challenging economy by Mal Warwick and Dan Doyle

How to Survive (and Thrive in) Tough Times

The Nonprofit’s Guide to Surviving a Downturn