Fundraising During Turbulent Times
L. Scott Schultz, President
October 2008

What’s been the hot topic of discussion with our clients in recent weeks? Not surprisingly, the economy and the impact of the current crisis on their fundraising efforts.

Clearly, the current downturn in market assets, along with a deepening recession, will provide both immediate and long-term challenges for nonprofit organizations of all types and sizes.

What this means to you, of course, depends on your unique situation. You may represent a social services organization that depends on annual giving or grassroots fundraising support. The slowing economy could make it difficult for your donors, who are justifiably concerned about their own jobs and livelihoods, to support your needs. On the other hand, if your organization relies heavily on major gifts, or is in a capital campaign, the decline in the stock market will be your primary concern.

Whatever your situation, concerns about fundraising in this environment are valid and justified. At the same time, however, history has shown us that this is no time to panic. Giving overall will certainly continue, although possibly at a slower rate. Now is the time to assess your organization’s fundraising program, and adapt as necessary to meet the dramatic economic realities we will face together in the months and years ahead.

Here are a few tips to consider:

• Break down and assess each of your fundraising strategies—this is not the time for business-as-usual thinking. Build a plan for fundraising in these turbulent times and follow it. This might be the time to drop an unprofitable special event, or to reduce your mail schedule. If you are in a building campaign, go back to the facilities plan—can a project be scaled back or phased? When the economy picks up, so can your fundraising
• Continue to build your donor base. If you have a proven donor acquisition program—even if it requires an investment—don’t stop. You should do everything possible to acquire and retain donors cost-effectively, but you do not want to stop and then re-start a program. You could lose top-of-mind awareness, and that will cost you more than you will save now.
• Communicate with your donors frequently. Tell them how your organization is dealing with this crisis and let them know that their support is appreciated. Keep them informed with personal correspondence or face-to-face meetings. Fundraising is an "inside-out"process. You need to make every effort—now more than ever—to keep your current donors involved in your organization.
• Stay donor-focused.Each of your donors is in a different situation—do not lump them all together. Spend the time needed to understand how this economic situation is affecting each of them and respond appropriately. You may have major gift prospects that have been insulated from the damage on Wall Street and would be more than happy to continue, or even increase, their support. For others, asking at this time would be insensitive and counterproductive. Do your homework and respond to the individual circumstances of your key donors.
• Build your brand. People give to organizations they know and consider a priority. Use this period to strengthen your marketing and build awareness of your organization.
• Brace yourself—this could take a while. Plan on campaigns taking longer to complete and pledges taking longer to fulfill.

If you’d like to read more about the S&W fundraising philosophy, please click here.

Better yet, if you’d like to learn more about how S&W can help you and your organization during these turbulent times, please contact me at 215-625-9955 or sschultz@schultzwilliams.com.

Schultz & Williams is a national consulting firm based in Philadelphia; providing management, fundraising and marketing consulting for nonprofit organizations, along with full-service direct marketing, database and creative/production services.