It has been an extraordinary few weeks marked by uncertainty, volatility, and constant change. While we are still a ways away from understanding the full impact that COVID-19 will have on the non-profit community, we know that market volatility and an economic recession present challenges to raising funds. With this in mind, I share the following recommendations with you:
1. Fundraising Strategy
In challenging times, organizations that continue to fundraise and engage with their stakeholders emerge successfully. Uncertain times can present an opportunity for organizations to strengthen and cement their relationships with their donors. If there is one strategy to implement to assist with weathering a crisis or economic downturn, it is this one. Donors who stop supporting organizations during a crisis did so because they no longer felt connected or engaged.
The economic uncertainty and recession that will result from COVID-19 may make it seem like now is a moment to pause or delay fundraising activity. In previous downturns, including 2008, organizations that pushed forward with fundraising were able to succeed and positioned themselves for financial stability and growth. Those who paused or took a step back lost ground and did not fare well. It is critical to move forward with fundraising activity.
2. Donor Engagement and Communications
Engagement and communication with donors, prospects, and stakeholders is critical at this time. Keep donors and stakeholders fully informed and engaged by reaching out regularly. Reaffirm your organization’s mission and continuously remind donors of the impact of your work. These reminders do not have to directly tie into the COVID-19 crisis, but if there is a special role for your organization to play, explain it.
Ensure that staff have readily available talking points and key messaging outlining your organization’s response to the crisis and plans for the future. Having consistent messaging will not only standardize your organization’s overall response to the crisis, but equip staff with the resources they need to have confident, direct conversations with donors.
Communication can take place over email, phone, or video conference. Get creative and meet your donors and stakeholders where they are. People are spending more time on their devices and may be open to a virtual coffee meeting. Please read my general tips for communicating with donors and my tips for leading an effective virtual coffee meeting.
In addition to one-on-one communication, consider adding in additional stakeholder briefings to address issues pertaining to the current situation.
3. Rethinking Fundraising Strategies and Goals
It is important to evaluate current fundraising strategies and goals in order to optimize results. For organizations with fiscal years ending on June 30th, there is greater urgency to close out fundraising campaigns and meet goals, unlike organizations who began their fiscal year on January 1st. In general, I do not recommend altering fundraising goals at this time. Fundraising goals are representative of an organization’s needs and are informed by the donor pipeline. As of the writing of this blog, it is too soon to tell how your donor pipeline will be affected. Organizations whose fiscal years began on January 1st can reevaluate progress midway through the year in the summer.
There are several strategies to employ that can help to make progress towards fundraising goals, including:
- Thank all donors for their support and let them know how much they are appreciated. This is the most important step you can take at this time. Prioritize this outreach with your staff and volunteers.
- Ask all leadership donors and board members to make a pledge if they haven’t already.
- If a donor or prospect says they can’t give, ask them if they are comfortable giving a smaller gift than last year. Many donors feel vulnerable now, but want to remain connected and give.
- Donors may feel more comfortable making a gift that can be paid over time. Consider creating a giving structure that allows for donors to pledge now but pay over time.
- If a donor or prospect says no today, it doesn’t mean that they won’t give at a later point this year. Pause the conversation, continue to engage the donor, and ask at a later time.
- Finally, if a donor doesn’t give this year, continue to engage and cultivate them. They will return as a donor in a future year.
4. Event Strategy
Avoid cancellation of events whenever possible. Consider postponing events or moving events online before cancelling them outright. People are hungry for connection and may have easier schedules due to travel cancellation. As such, consider increasing and diversifying programmatic offerings to capture a larger and more diverse audience. It may not be worth it to host an in-person event for 10 people, but an online event convening for 10 people is much less labor intensive and can be very impactful.
Remember that in order to effectively engage donors during a crisis, staff need to feel motivated and connected. It can be difficult for fundraising staff to outwardly project confidence and resilience when they feel worry or concern. Take the time to address your staff’s needs so they feel comfortable engaging with donors.
I want to close with this:
Philanthropy is about engaging, volunteering, giving, and acting in order to make our world a better place. I truly believe that philanthropy connects people to causes that are meaningful to them and that connection makes our world a better place. Philanthropy is inherently about optimism. I think we could all use some optimism these days, and I hope that continuing to engage with our donors and stakeholders will bring us a renewed sense of purpose in this uncertain time.
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