There is no doubt that 2023 will bring economic uncertainty. With big tech layoffs, inflation, and a volatile stock market, the conditions are ripe for a downturn. Uncertain economic times are particularly challenging for nonprofits. Many organizations experience an increased demand for services while facing decreases in grant funding and stagnating or decreased individual giving.
I have weathered these circumstances before. The 2008 housing crash proved to be devastating. I personally knew donors whose entire portfolios were dramatically impacted, leading them to cut or cease philanthropic giving entirely. Organizations struggled tremendously to respond to the devastating circumstances that impacted their donors.
None of us could have predicted a few years ago that a global pandemic would shut down life as we know it. I wrote two articles about weathering difficult situations, including managing budget cuts and how to approach the fundraising in the early days of pandemic. The pandemic’s impact continues today as organizations face the end of pandemic relief grants and funds while dealing with decreased attendance, membership, and rising costs.
But there is a common factor among organizations that survived these tough times and even grew: in challenging times, organizations that continue to fundraise and engage with their stakeholders emerge successfully.
When it feels like donors are saying no, giving less, and generally pulling back, it’s critical for organizations to lean in. We can’t shy away from hard times and we need to address them directly in order to get through the short term and position ourselves for long-term growth and success. I’ve compiled some of my best advice for these times, with links to posts with more detailed information:
- Don’t panic: Think about what makes you a successful fundraiser and continue to follow your consistent work habits.
- Appreciate any and all gifts: Thanking donors meaningfully is always important and one of the key factors in donor retention. Especially during tough economic times, you want to retain your loyal supporters.
- Shift your overall donor program to focus heavily on stewardship. When meeting with donors, work harder to uncover their stories and deepen their connections to your cause.
- Continue to identify new potential donors: Include prospecting how-to. Try new ways to prospect and research potential supporters. My suggestions don’t involve expensive software, just dedicated time.
- Re-examine revenue streams: Look at the whole of your fundraising program–are there areas that have consistently underperformed? Reorient your time and focus on the most high-value areas. My suggestions for summer activities can also apply in tough economic times: focusing on major donors is time well-spent, and auditing previous activities can help you prioritize based on effectiveness.
How else have you been managing in this current environment? I’d love to hear from you!