RECESSION SUICIDE

The Aesop fable about the doe that sought refuge from hunters in the cave of a lion points out that avoiding one evil can lead to another. These difficult times are a wake up call to charitable organizations to step up fundraising.

Practical and tactical decisions will have more influence on resources than the economic downturn. Organizations that don’t make the right decisions now will suffer the fate of a group that was close to my heart – the National Welfare Rights Organization, instrumental in fighting for the interests of people reliant on government assistance, went bankrupt in 1975 and their voice in the national debate is sorely missed.

As Sean Triner, co-founder of Pareto Fundraising in Sydney, Australia notes, “We fundraisers need to prevent our boards and management making the possibly fatal mistake of cutting fundraising expenditure…. Don’t commit recession suicide.”

Sean points out that if the economy gets worse, your organization may have to spend more to generate the same net income, which is crucial to continue delivering services. Information in your existing donor database holds the answer to the success of various fundraising efforts…for some organizations it’s a “secret” source of information that has yet to be exploited.

Don’t jump to conclusions. Find out what is working and what isn’t. Take the time to calculate your sustainable income streams. For some of you it may be online and direct mail, but for most I can safely advise focusing on major giving, annual fund and planned gift programs.

Do it better, quit wasting your time. Segment your donors and develop and coordinate organization-wide messaging accordingly. Regular, effective and active communication with donors about your work, impact and achievements fosters confidence and loyalty. Set up a working group to evaluate funded activities or projects and to find ways to contain or reduce costs.

People vote not only at the polls but with their dollars. Donors will be more selective in their choices so transparency and accountability are crucial.

Drop marginal or unprofitable activities. This may be very hard to do when a certain dinner or marathon is a cherished part of the organization’s image. One group I have advised spent an inordinate amount of staff time acquiring port-o-johns, mapping courses and signing up sponsors for a small pay off – develop a volunteer corps to make such activities happen.

Discourage pessimism in your Development Department and the organization as a whole. Realize you have more control than you think. Don’t panic; focus on the fundamentals; focus on the long haul. Don’t be the deer in the headlights.