100 DAZE

100 days into the Obama presidency and I’m irritated – with the press corps. I’m tired of the 24/7 doom and gloom. My anecdotal take on the economy is: A few houses in my neighborhood have SOLD signs on them, a dear friend’s new job pays 37% more than the one she left last year, the Jewel grocery stores cut food prices by 20%, I’m still paying my mortgage and my elected officials are primed to spend federal stimulus money on improving my state and my hometown.

What’s the outlook for the nonprofit sector? 181 nonprofit groups of various sizes responded to a survey in late January sent by a collaboration of groups and foundations to assess the impact of the current economic crisis on nonprofits. The purpose of the survey was to better understand how nonprofits are managing the situation within their organizations. Survey respondents were in positions of fundraising accountability: 44% were executive directors and 27% were development directors.

The majority of organizations across the board predict a recovery time of two years or less. For many groups, the economic downturn is an opportunity to focus on strategic priorities, reconnect with their mission, build relationships, collaborate with new partners, and get creative.

No surprise here: The report points out that nonprofits with diverse revenue streams, good management, and what could be labeled “learning cultures” appear to be coping markedly better than others. Many have seen an increase in the use of their services and pro-actively plan to expand programs/services in 2009. Organizations that are faring better appear to be putting more focus on fundraising activities, especially individual donor relations, including major donor development. Respondents highlighted some necessities:

- Board members need to be more actively engaged in fundraising, cultivating relationships, and being ambassadors for the organization.
- Nonprofit leaders need to set the tone, be calm, and communicate clearly about decisions, priorities, and organizational vision and goals. They, too, should be more visible and more involved with individual donor fundraising.
- More effort should be expended on donor outreach and cultivating relationships, requiring a corresponding investment in development staff, resources, and activities.
- Better internal communication among organizational team members is vital to surviving in this difficult economic climate.

PIF specializes in major gift fundraising, as well as the array of income producing programs. If you need fundraising help, feel free to email us: 847/227-7174