fundraising . . .
in uncertain times 

Fundraising after September 11 is a mixed-bag — some organizations are doing very well, and some aren’t. Overall, most fundraising experts think it’s a good sign that Americans were so generous in response to the terrorist attacks — people want to help and be connected. But, how does this translate to your organization? What will the future bring? And, how do you manage your fundraising in these uncertain times?

Nonprofit fundraisers are feeling the effects of the convergence of three factors — the September 11 terrorist attacks, the subsequent “war on terrorism,” and the faltering economy. We still can’t forecast the ripple effect from the September 11 tragedies, but we do know that the resulting challenge to the nonprofit sector is unfathomable.

Historical trends offer us some idea of what’s in store for nonprofit fundraising. When it comes to disasters, donations generally increase in the year of, or year following, the event. When it comes to a weak economy, however, donations generally decrease — while demand for services is generally increasing. The events of September 11 add to the complexity. As Rick Cohen of the National Committee for Responsive Philanthropy says, “We are dealing with a human disaster of massive scale combined with economic reverberations that may make some historical trends difficult to compare.”

Cutbacks in charitable giving do not affect all groups in the same way. Funding for social services tends to be quite steady, even during recessions, but often it doesn’t feel steady because demand for services is so high. Other types of organizations, however, have a tough time during recessions and following disasters. Organizations working in civil rights, community improvement, advocacy and public policy, and the arts tend to find it hard going in uncertain times. 

strategies for fundraising
in uncertain times  
Kim Klein, author of Fundraising for Social Change and co-publisher of the Grassroots Fundraising Journal, suggests that while much fundraising will remain unchanged in the aftermath of September 11, certain sources of funding are going to change dramatically and most strategies will need some fine-tuning. She offers these comments and suggestions for raising money in uncertain times.

Foundations are required to pay out 5% of the value of their assets annually. Because of the stock market decline, many foundations have seen an erosion in their asset base — which translates to smaller payout requirements. This will be especially noticeable in 2003 and 2004. Kim suggests that you may want to develop alternative income streams over the next year or two if your organization relies heavily on foundation funding.

Direct mail experts report that mail is performing as well now as it was prior to September 11, with acquisition mailings still getting 0.7-1% returns, and mailings to current donors getting returns of 10% or better. Kim suggests, however, that there are things groups should do with their mail appeals to ensure it is delivered and opened. Kim suggests a clear return address on all mail pieces. She also suggests that your letter focus on what your organization does and why it is important.

Major gift donors, according to Kim Klein, will continue to be loyal and giving — if you stay in contact with them and let them know how important they are. Donors who have been giving stock may postpone or cancel their gifts. Klein suggests talking to donors about spreading their gifts over several months (to help with cash flow). She also suggests focusing your attention on the middle range of donors — those giving $100-$1,500.

Kim has found that special events are doing surprisingly well when the event is well planned and carefully thought through. She does suggest, though, that organizations err on the side of caution and cut back on the costs of their event — if the event must be canceled, you won’t be out as much front money.

Corporate giving seems to be a mixed bag. Because of the economy, some corporations are scaling back their giving; but others are doing well and even increasing their giving. According to Kim, corporate donors will continue to seek publicity for their gifts. Kim says, “Corporations continue to be under pressure from consumers to be more generous, which is part of a wider consumer concern about corporate ethics. Any group that can help them appear to be good corporate citizens probably has a good chance of getting some funding.”

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more suggestions for fundraisers 

Rick Cohen, president of the National Committee for Responsive Philanthropy, suggests that “these are extraordinary times for nonprofits, charitable donors, and foundations.” According to Cohen, anecdotal evidence suggests that, despite the “amazing generosity of Americans around the nation,” there hasn’t been a shift of local funding to New York City and Washington. He finds that the recession, however, is causing regional shifts in giving. He warns fundraisers to be aware of how the economy is impacting your community and your organization. He recommends opening a dialogue with foundation and corporate giving staff to share ideas around nonprofit needs, opportunities, and challenges emerging from the recession.

Click here for a copy of Rick Cohen's essay, Post 9/11 Considerations for Funders and Fundraisers.

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fundraising resources  

InnoNet provides web based assistance for developing stronger,more effective proposals; workstations provide program development assistance for all phases of program development -- planning, budget, evaluation, and grant application

Nonprofit Genie provides information and resources for the nonprofit community; a variety of helpful links are available on a number of topics; FAQs address fund development questions like: "How do you ask for a major gift?" "How do I get my board involved in fundraising?" "How do I figure out how much someone can give to my organization?" "What should we look for in a director of development and what is the typical salary range?" and "How do we select fundraising software?"

Helpful sites with extensive fund development links

IdeaList

The Learning Institute for Nonprofit Organizations

Resources for Online Fundraising

Grassroots Fundraising Journal

Internet Nonprofit Center

Funds Net - Fundraising and Grantwriting Resources

The Grantsmanship Center

Foundation Center

Milano Nonprofit Management Knowledge Hub

Looking for resources related to women and philanthropy?

The Women's Funding Network has released a monograph series by feminist researcher Mary Ellen Capek. The series, entitled Women and Philanthropy: Old Stereotypes, New Challenges is available on the Women's Funding Network website.

The Feminist Majority Foundation's Feminist Research Center has released a report on women's philanthropy entitled Empowering Women in Philanthropy.

The Women's Philanthropy Institute has published a new guide to forming Women's Giving Circles. The website briefly describes the Women's Giving Circles concept -- you can order the guide through the site.

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