DARK ENERGY

Last night my sweetheart spent an inordinate amount of time explaining dark energy to a cosmology dummy – me. It has something to do with increasing the rate of expansion of the universe, supernovas, Einstein and possibly Obama’s energy appointee from Lawrence Berkeley Laboratory. I thought dark energy was that negative force being emitted by the economy!

All types of assets are being affected by the recession; even the wealthiest people are taking losses. Psychologically people are anxious about the future, which is affecting philanthropy.

In times like these, weaker organizations tend to panic -- cancel their programs, stop spending, freeze hiring of fundraisers (the profitmakers). Organizations that are better prepared, however, can make a substantial case for support.

As George Will pointed out, nearly 94 percent of Americans are still working. People want to help their favorite charities make a difference and will continue to give. But, they must be more selective. With donors’ finances tightening, now is the time to do more, not less -- buckle down, reassess priorities, have a strategic development plan -- and do it!

Eileen Heisman, CEO of the National Philanthropic Trust, a $725 million-asset public charity based in the Philadelphia area that has raised more than $1.3 billion in charitable assets since it was formed in 1996 and granted over $715 million to more than 25,000 nonprofits, advises nonprofits to keep working to generate contributions.

“You cannot stop asking,” she says. “There are going to be loyal donors who continue to give. People still get their paychecks. A lot of annual giving comes out of paychecks.”

If the sky is falling, pick up your pieces!

As a fundraiser or nonprofit leader, it is your job to assure your organization remains financially strong. Present a logical, urgent, airtight case for why the work of your organization is so important. Do you address needs made even more urgent by the economy? If so, say so. Weaker organizations don’t want to ask right now, but if your group needs the money, then ask for it. If you have cultivated your donors effectively, they will respond. They may need you to be more flexible – try offering more long-term options or combinations of giving methods that fit their financial realities. In hard times, planned giving and estate giving can be very effective options.

In his victory speech in Chicago, Barack Obama said, “So let us summon a new spirit of patriotism, of service, and responsibility where each of us resolves to pitch in and work harder and look after not only ourselves, but each other.” You are going to hear that echoed in his inaugural speech. Be ready. Have your envelopes in the hands of your donors…or someone else will.

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In February PIF will convene local nonprofits to talk about fundraising in the current economic climate, offer ideas and brainstorm options. Watch this spot or call for info: 847.227.7174.