Was your Strategic Plan Recession Proof? How to maintain / increase funding during a climate of reduced available funding dollars.
Today's economic challenges are unlike any we have encountered in decades. This has placed a greater demand than ever for human services which is the heart of all non-profit organizations. The challenge for the leaders of these organizations is not how to provide the service, rather in funding this heightened need. This month's tip is the 1st in a series of three addressing how to become recession proof.
Your strategic plan certainly included accommodations for growth and increased demand. However even the most conservative assumptions for funding this growth most likely would have not considered the impact of today's economy. Endowment earnings are minimal; government funding is at its lowest and in some states "on-hold". The need for fundraising is greater than ever. Now is the time not to panic, rather continue to think strategically.
For only the second time in 54 years, charitable giving by Americans dropped last year, a decline of two percent, or a drop of 5.7 percent after adjusting for inflation, says Giving USA 2009. This decline included all categories of givers, individuals, private and corporate foundations. The question to ask-"how can my organization become more competitive"? With fewer contributed dollars available, funders may reevaluate their giving plans. Organizations that position themselves as useful in times of crisis may actually find themselves the recipient of more gifts, not fewer.
These philanthropic organizations are asking for more information and accountability. Your organization is competing with a greater number of non-profits for the same philanthropy funding dollars. These competing organizations fall under the same scrutiny as yours in evaluating requests for funding. Organizations that can demonstrate they can do more with less will gain greater attention and ultimately funding awards. Efficiency is the key. Next month's Tip will cover points on improving efficiency.
Continued Communication with your current funding sources is critical. If you cease communication, they will assume that you no longer need their support. It would be helpful to highlight areas of cost savings to let them know you are being good stewards of their funding. Most important is to remind them of your mission, this was most likely why they had supported your organization in the past. Tell your story, include repercussions of failing to meet your mission, i.e., who suffers or would be worse off than before. It is also important to be discriminating in your fundraising, asking those who are most likely to give. Examine your database for your best donors historically and target those with the same characteristics. In soliciting major gifts from new prospects, focus on those in "recession-proof business" such as healthcare, alternative energy, grocery and software. The Philanthropy Journal, an online non-profit news and resource website, is hosting a Webinar on July 22nd: Ten Fundraising Tips to Help your Non-Profit Succeed. Here is a link for more information: https://www.philanthropyjournal.org/civicrm/event/info?reset=1&id=42
Today's economic challenges are unlike any we have encountered in decades. This has placed a greater demand than ever for human services which is the heart of all non-profit organizations. The challenge for the leaders of these organizations is not how to provide the service, rather in funding this heightened need. This month's tip is the 1st in a series of three addressing how to become recession proof.
Your strategic plan certainly included accommodations for growth and increased demand. However even the most conservative assumptions for funding this growth most likely would have not considered the impact of today's economy. Endowment earnings are minimal; government funding is at its lowest and in some states "on-hold". The need for fundraising is greater than ever. Now is the time not to panic, rather continue to think strategically.
For only the second time in 54 years, charitable giving by Americans dropped last year, a decline of two percent, or a drop of 5.7 percent after adjusting for inflation, says Giving USA 2009. This decline included all categories of givers, individuals, private and corporate foundations. The question to ask-"how can my organization become more competitive"? With fewer contributed dollars available, funders may reevaluate their giving plans. Organizations that position themselves as useful in times of crisis may actually find themselves the recipient of more gifts, not fewer.
These philanthropic organizations are asking for more information and accountability. Your organization is competing with a greater number of non-profits for the same philanthropy funding dollars. These competing organizations fall under the same scrutiny as yours in evaluating requests for funding. Organizations that can demonstrate they can do more with less will gain greater attention and ultimately funding awards. Efficiency is the key. Next month's Tip will cover points on improving efficiency.
Continued Communication with your current funding sources is critical. If you cease communication, they will assume that you no longer need their support. It would be helpful to highlight areas of cost savings to let them know you are being good stewards of their funding. Most important is to remind them of your mission, this was most likely why they had supported your organization in the past. Tell your story, include repercussions of failing to meet your mission, i.e., who suffers or would be worse off than before. It is also important to be discriminating in your fundraising, asking those who are most likely to give. Examine your database for your best donors historically and target those with the same characteristics. In soliciting major gifts from new prospects, focus on those in "recession-proof business" such as healthcare, alternative energy, grocery and software. The Philanthropy Journal, an online non-profit news and resource website, is hosting a Webinar on July 22nd: Ten Fundraising Tips to Help your Non-Profit Succeed. Here is a link for more information: https://www.philanthropyjournal.org/civicrm/event/info?reset=1&id=42
Your Virtual CFO
