A Survival Kit for Fundraising in a Bad Economy (Oct. 10, 2008)
A tumultuous economy can present unique challenges for nonprofit fundraising. Looking for ways to cope? AFP has compiled a toolkit of resources to advise and guide fundraisers in tough economic times.
“Donors have a lot on their minds these days as they sit down with their personal budgets,” explains Paulette Maehara, CFRE, CAE, president and CEO of AFP. “But despite the headlines about Wall Street and the financial markets, we as fundraisers should not lose sight of the fact that giving is a way for communities to pull together. While the economic forecasts are uncertain right now, what is quite certain is the capacity of people to lend a hand and support institutions of all kinds. We hope you’ll use AFP as a resource in garnering vital support for your organization in what may be a wild ride over the next few months.”
Recent AFP coverage:
"Fundraising Tips: Do’s and Don’ts in a Troubled Economy"AFP eWireSept. 22, 2008Greeted every morning with news of falling stocks and debates on whether the U.S. economy is in recession, charitable spending right now is likely not on the top of many donors’ priorities—a daunting thought for fundraisers looking for strong fourth quarter income.
“The Shifting Bottom Line: How the economy affects giving”By Paul Lagasse Advancing PhilanthropyJanuary/February 2008According to Paul G. Schervish, John J. Havens and Albert Keith Whitaker at the Center on Wealth and Philanthropy at Boston College, “A sense of financial security has a strong positive relation to charitable giving. Why? At the least, [because of] a growing ability and desire among people who have settled the economic question for themselves and their heirs to discern their discretionary resources and to invest that surplus in socially and spiritually purposive ways. For this reason, a growing and vibrant economy that fills the desires for family well-being is an indispensable ally of philanthropy.” So what happens when philanthropy’s “indispensable ally”—that “growing and vibrant economy”—appears to defect?
“Enjoy the Ride! How to effectively raise funds in a roller-coaster economy”By Mary Ellen CollinsAdvancing PhilanthropyJanuary/February 2008The price of oil has been skyrocketing, the housing market continues to flounder and the stock market is more than jittery. How do such economic realities affect your donors, who may be prompted to think twice—or three times—before writing a check to a favorite charity? When development professionals work to raise funds in an economic roller coaster, is there a foolproof fundraising plan that will keep supporters on board for the entire ride? While you may think that highly specific, special skills are needed, experienced professionals agree that the best strategies for achieving success in an unpredictable economic environment can be found in the basics of Fundraising 101.
Articles from various sources collected by the AFP Fundraising Resource Center:
“Secrets to Strong Giving in a Struggling Economy”By Jim Sheppard Date: Oct. 6, 2008Whether debated privately in our hearts or very publicly in our church halls, the question on almost every church leader’s mind is the economy. While our faith is certain, current economic conditions are not. With the presidential election looming, the situation might become even more volatile. With this in mind, it only seems prudent to ask, “As the economy declines, will our giving go down with it?”
“‘Donor fatigue’—Nonprofits forced to work harder for funds”By Adam LeechSeacoastonline.comDate: Aug. 3, 2008Difficult economic times have forced the United Way of the Greater Seacoast, which supports 78 nonprofits in coastal New Hampshire and southern Maine, to adjust its strategy for the upcoming fundraising campaign season. The nonprofit operates entirely on charitable donations. More than half of the United Way budget comes from its workplace campaign, where representatives go to businesses in the fall and ask workers to donate a portion of their paycheck every week. According to Liza Dube, assistant director of marketing and communications for the United Way, the organization expects to be forced to rely less on workers and instead will focus more attention on corporate contributions and planned giving.
“Fundraising in a Recession: How Fast, How Soon”By Alexander, G. DouglassFund Raising Management Date: June 1, 1991
“Recession-Proof Your Fundraising”The Resource AllianceBy Kevin KibbleIn past economic downturns nonprofits have fared much better than other sectors and the last recession proved to be a buoyant time for those who were prepared to have the courage of their convictions and make the most of the opportunities to fundraise. So how should charities, and fundraisers in particular, react to the changing financial landscape to protect their income?
“Fundraising in a Recession” By Kristin Clarke, ASAE & The Center for Association LeadershipDate: March 2008 This article contains five easy-to-follow tips for keeping your fundraising efforts going strong regardless of the economic forecast.
“Succeed at Fundraising Despite a Recession”By Marc A. Pitman, CFCCHow will this economic climate affect your favorite nonprofit? Will you fulfill your mission or will you fold? That depends on whether you make these deadly mistakes: spend less on fundraising, become pessimistic, apologize when you’re asking.
“Three Suggestions for Raising Money in Tough Economic Times”By Jim BeriganAsking people to donate money is never an easy task. In tough economic times, it’s even more difficult. If people are struggling to pay their mortgage and utilities, how can they find any extra for your organization? I, like many of you in the non-profit sector, have had to exist in this challenging reality for a number of years now. Here are a few ideas that have helped me make ends meet when our donor base is struggling.
“Eight Ways Your Organization Can Cope With the Recession”By Mal WarwickIt’s time to consider how your organization can continue to thrive despite the fast-weakening economy. So let’s focus on the simple steps you can take as a chief executive, a trustee or a development officer.
Upcoming AFP Web/Audioconferences:
SPECIAL OFFERING: “Strategy and Messaging: How to Make Your Ideas Stick.” (Nov. 6, 2008)Best-selling author Chip Heath will present a special AFP Web/Audioconference on what makes some messages, like urban legends, survive in the marketplace of ideas and why other messages die off. Learn how to make your message to donors 'stick' with them long after they first hear it. Learn what makes an appeal letter, a postcard or an “ask” break through the noise…or worries about the economy. The presentation will take place on Nov. 6.
Click here to sign up.
“Dramatically Increased Annual Funds - in Good Times and Bad” (Jan. 15, 2009)Presented by Stanley Weinstein, ACFRE, EMBA, this session focuses on high-payoff, cost-effective, and creative strategies for achieving extraordinary fundraising results—in good times and bad. When the economy is slowing or in a slump, nonprofits must garner additional resources to fulfill their missions and, in many cases, respond to an increased demand for services. In good times, nonprofits want to move forward in achieving their most visionary aspirations.
Note: Sign-up details for 2009 Web/Audioconferences will be coming soon.
Click here for the 2009 Web/Audioconference schedule.
Books available in the AFP Bookstore:
Building Donor Loyalty: The Fundraiser’s Guide to Increasing Lifetime Value by Adrian Sargeant and Elaine Jay (Jossey-Bass, 2004), hardcover, 224 pages
Donor Centered Fundraising by Penelope Burk (Cygnus Applied Research Inc., 2003), paperback,227 pages
Donor-Focused Strategies for Annual Giving by Karla A. Williams, ACFRE (Jones & Bartlett Publishers, 2004), paperback, 287 pages
The 11 Questions Every Donor Asks and the Answers All Donors Crave by Harvey McKinnon (Emerson & Church, 2008), paperback, 112 pages
Fundraising in Times of Crisis by Kim Klein (Jossey-Bass, 2003), paperback, 192 pages
Keep Your Donors: The Guide to Better Communications and Stronger Relationships (AFP Fund Development Series) by Tom Ahern and Simone Joyauax (Wiley, 2007), hardcover, 480 pages
People to People Fundraising: Social Networking and Web 2.0 Charities by Ted Hart, James Greenfield and Sheeraz D. Haji (Wiley, 2007), hardcover, 262 pages
Winning Gifts: Make Your Donors Feel Like Winners (AFP Fund Development Series) by Thomas D. Wilson (Wiley, 2008), hardcover, 336 pages
