Fundraising’s Crazy-Quilt Patterns
Despite the recession, there is some optimism for fundraising in 2009, but the road is rocky and clearly uneven. The Association of Fundraising Professional’s annual conference this week brings this news:
- Ony 46 percent of fundraisers raised more in 2008 than in 2007, a new low in the eight years of the annual AFP survey.
- Another AFP study found 60 percent of members expect fundraising income to stay the same or increase in 2009. Be “prudent, being realistic, and focusing on the fundamentals that got you here,” AFP President Paulette Maehara told the conference in New Orleans.
- Nonprofits should focus on the mission rather than the financials, ask donors to give now and focus on what their money will achieve, several veteran consultants said. Cutting programs across the board will head to failure, not success, while using part-time or contract talent can keep opportunities from losing traction, they added.
In another recent report, charitable contributions to colleges and universities grew by 6.2 percent in 2008, reaching $31.60 billion, delivering mixed results, according to the Council for Aid to Education.
While that’s the highest raised in one year and above the average 5.7 annual increase over the past decade, if the top 20 institutions were taken out of the data, giving declined by 4.2 percent. CAE’s annual Voluntary Support of Education survey says that data for fiscal year ending June 30, 2009 will give clues to the longer-term effects of the recession.
Sharply declining endowments are compounding the problems. Typically endowments have been a cushion for lean years, but in today’s environment, “endowments are not able to play as protective a role.”
This report offers gloomier predictions for 2009 than the AFP study. “Even at institutions that reported healthy gains in fiscal 2008, advancement professionals told us they had ‘hit a wall’ in January 2009 and that the decline was substantial,” said Ann E. Kaplan, director of the survey. “Both the number and value of contributions dropped early in the calendar year.” And the outlook for fiscal 2010 could be worse, the CAE report cautions.
Fundraisers by nature are optimistic, and data analyzed since the Depression show that these cycles do end. The best short-term course is to keep an “eyes forward” focus and stick to the tried-and-true fundraising fundamentals.
Here’s what the Association of Fundraising Professionals, the largest association of its kind in the world, advises:
- Keep cool, don’t panic, lead by example and believe in success.
- Be candid.
- Stay positive.
- Remember your mission.
- Act — put equal weight on planning and doing.
- Don’t stop asking for money. After September 11, 2001, many organizations stopped or postponed fundraising and discovered later that decision was a missed opportunity. Surveys show that people still give in hard times, sometimes even more.
Here’s what the AFP, the largest association of its kind in the world, advises fundraising marketers:
- Retain and cultivate current donors as the top priority.
- Continue awareness activities.
- Don’t cut marketing and advertising. Keep it steady and consider increasing it.
- Protect your brand reputation.
- Segment, segment and segment — personalize appeals in a cost-efficient manner.
For more tips, see my whitepaper, “Communicating Value during the Economic Downturn.”
