Fundraising in a Challenging Economy

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Welcome to the Foundation Center’s

Poll: Effects of the Economic Downturn

• Lost sources of funding • Lost earned income • Fewer programs and services • Reduced staff • Reduced salaries• More time devoted to fundraising • Increased demand for our services• New programs introduced to address the impact of the

crisis on our community• New collaborations with other nonprofits • New/additional funding received to address needs related

to the economy

What You Will Learn Today

• How to position your organization for fundraising to survive and thrive in the current economic climate

• How to adapt your fundraising approaches to the current environment

• Additional considerations to assist your organization to succeed

• Helpful resources

Positioning Your Organization for

Fundraising in the Current Economic Climate

Your Organization’s Mission

• A mission statement describes the purpose of the organization

• Stay true to your mission in challenging times, no matter what

Your Organization’s Mission, continued

Economic crisis as an opportunity• What about your mission is of particular

relevance in this economy?• How can you capitalize on that

connection to attract funders?

Your Organization’s Core Activities

• Identify your organization’s mission-critical, core activities

• Define the populations your organization’s core activities serve and your impact on them

Full Engagement of Your Board

• Reaffirm the role of the board • Obtain renewed commitment from

board members• Involve the board in fundraising/donor

engagement

Keep Fundraising!

• If you don’t ask, you don’t get• Refine your message• Keep your best supporters “in the fold”• Focus on your strongest funding

streams, and carefully consider new sources

Raising Funds in a Challenging Economy

Current environment• Decline in first-time givers• Decline in direct mail responses for

some organizations• More giving in smaller amounts• Most not changing overall giving

Individual Giving

Raising Funds from Individuals

• Stay in touch with your donors• Communicate the challenges as well as

what you are doing to mitigate them• Emphasize the results• Ensure financial transparency• Build on/enhance donor relationships

Raising Funds from Individuals, continued

Special events • Try joint events with other nonprofits• Consider simpler events• Lower your expenses, not ticket prices• Stay with what worked in the past

Foundation Giving

Current environment

• Most foundations lost 20–30% of their assets

• Giving is likely to continue to decline next year

• How foundations respond will vary

Raising Funds from Foundations

• Current donors– Take advantage of their increased

receptivity to communication– Investigate any new initiatives/priorities

• Prospects– Research thoroughly– Utilize board connections

Corporate Giving

Current environment

• Some companies have taken a hit, but not across the board

• Fewer and smaller cash grants• Partnerships with nonprofits still

perceived as valuable

Securing Contributions from Corporations

• Seek out any and all contacts at corporations

• Ask for “in-kind” gifts• Explore corporate volunteer programs• Emphasize how giving to you benefits

the corporation and its customers

Government Funding

• Budget shortfalls have led to funding declines

• Stay abreast of pending legislation• Keep an eye on opportunities under the

Stimulus package

For more information: http://maps.foundationcenter.org/economic_crisis/stimulus/

foundationcenter.org/focus/economy/

Additional Considerations for

Your Organization to Survive and Thrive in a

Challenging Time

Use Technology Wisely

• Draw new audiences to your cause• Acquire new donors• Make donating to your organization easy• Show that your organization is current

and vibrant• Send targeted communications

For more information: http://foundationcenter.org/getstarted/guides/technology.html

Collaborations

• Consider joint programming with other organizations

• Contract out for certain projects/programs

• Use others’ services to obtain mutual benefit

• Join a nonprofit association for special membership benefits

Strategic Alliances and Mergers

• Share office space with another organization

• Share the costs of maintenance activities with others in the same building

• Utilize outsourcing solutions for back office operation

• Consider a strategic alliance or merger

Summing Up

• Position your organization to take on fundraising to survive and thrive in the current economic climate – Stay true to your mission and capitalize on your special

relevance to your audiences– Focus on your mission-critical, core activities – Obtain renewed commitment from your board and involve

them fully in fundraising/donor engagement– Fundraise, fundraise, fundraise!

• Adapt your fundraising approaches to the current funding environment; focus on your strongest funding streams; try out new approaches with caution

• Keep an eye on other ways to assist your organization to succeed, such as wise use of technology, collaborations, strategic alliances and mergers

For More Information

• Resource list on nonprofits and economic downturn is available at:http://foundationcenter.org/getstarted/

topical/econ_crisis.html

Fundraising in a

Challenging Economy

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