In a challenging economy, people make tough decisions about where they spend their dollars. How do economic realities and personal perceptions affect the nonprofit sector? Some decide to give less to each organization they support. Others may choose to stop giving to certain organizations. How do they make these decisions? What efforts can you take to minimize the impact on your organization?
In this interactive session, GoalBusters Consulting's Alice Ferris and Jim Anderson discuss:
-Economic realities for charities nationwide and locally
-"The Perfect Storm"
-Strategies to minimize or avoid these economic pressures
-What to do (and please DON'T do) when a donor says, "I can't contribute now"
-Six things you can do now to stabilize your organization and empower your team
-How to find the "oasis in the desert." Ten practical strategies for successful fundraising regardless of economic conditions.
(Recently hosted by the Yuma Area Nonprofit Institute (YANPI) and Arizona Western College, at the AWC College Community Center (3C) in the Schoening Conference Center, Yuma, Arizona.)
3. Funding Sources
Corporations Bequests
$15.69 - 5% $23.15 - 7%
Foundations
$38.52 - 13%
Individuals
$229.03 - 75%
Total Giving: $308 Billion
2008 US Contributions Data
Source: Giving USA 2009
4. Foundation & Corporate
Estimated drop in foundation assets 22% at
end of 2008
Expected reduction in grant making for 2009:
10%
Corporate giving also down - Why?
Perception for some, reality for others
5. AFP 2008 State of
Fundraising Report
39.7% reported giving was down in 2008 compared to
2007, the highest level since 2002.
Only 45.9% reported giving up from 2007 to 2008,
compared to prior report 65.3% and high of 69% in 2006
2009 to date: 51% of charities responding reported that
giving was down from 2008
6. “Perfect Storm”
Declining revenue
Increasing costs (health care)
Declining endowments/investment portfolios
Restricted credit markets
Decreased audience for some (less revenue)
or increased audience for others (can't handle increased load)
7. SO WHAT DO WE DO??
Choose your attitude
“Business is neither good nor bad “out there” It’s either
good or bad between your own two ears. - Zig Ziglar
8. Overall Concepts
Focus staff on what the organization can control,
to build confidence and address short-term
problems
Use the turmoil to start discussions about business
model innovations and new initiatives
9. Overall Concepts
Ensure leaders communicate a clear and consistent
message to every set of employees they meet with
Maintain pride in the organization's mission
DuPont's CEO, Ellen Kullman: “People start thinking
our mission is to reduce cost. That's a tactic, that's not
our mission."
10. What’s Working
Conservative financial Prior diversification of
management funding
Strong community support Effective fundraising
Extraordinary board or Increased government
staff (Herculean efforts) funding
Increased demand for Specific local economic
services (Human services, public conditions
benefit)
Luck
Effective strategic planning
Effective advocacy efforts
Johns Hopkins Study, April 2009
Center for Civil Studies Entrepreneurship
11. What Can We Control
Financial Management Practices
Clear and consistent marketing to the community
Maintain pride
Reward your team for Herculean efforts
Re-examine but don't throw out the strategic plan
Expand your funding mix
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Dollars in the
Desert
Focus on Annual Giving
Donors
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Dollars in the
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Rethink Your Major Gifts
Program
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Dollars in the
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Find New Pockets of
Government Funding
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Dollars in the
Desert
Renew and Acquire
Foundation Support
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Dollars in the
Desert
Renew and Acquire
Corporate Support
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Dollars in the
Desert
Create Memorable
Meaningful Special Events
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Dollars in the
Desert
Start or Expand Revenue
Generating Programs
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Dollars in the
Desert
Introduce or Expand
e-Philanthropy
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Dollars in the
Desert
Develop or Nurture Partnerships with
other Nonprofits to Conserve
Resources and Create Opportunities
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Dollars in the
Desert
Financial Management
Practices