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April 07, 2008
Tips for fundraising in a recession
Picture isn't dire, say UW and industry experts
Fundraising picture isn't dire, say experts
Tips on fundraising in lean times
Fall 2008 Fundraising Management Certificate Programs
About UW Educational Outreach
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Fundraising picture isn't dire, say experts
It's true that fundraising during a recession is a challenge-but the effect is not as pronounced as most might expect, say industry experts and consultants who teach in UW Extension's fundraising management certificate programs.
"Don't panic," advises Susan Howlett, Seattle-based consultant and author of Getting Funded: The Complete Guide to Writing Grant Proposals (with Dr. Mary Hall). "Although arts organizations may have difficulty, donations to social services spike during lean times. Corporate giving fluctuates more than individual giving, so keep it steady by appreciating your individual donors and maintaining those relationships."
Borje "Bud" Saxberg, Ph.D., professor of management and organization at the UW Michael G. Foster School of Business, agrees. "Don't anticipate a lot of growth, but don't be afraid and pull back from fundraising activities," he says.
Now more than ever, tie your work to the value you provide to the community. "Remind people of your place in the community and the need to sustain that community especially during difficult times," advises Amanda Madorno of Roam Consulting. This is also true for capital campaigns. "It's not necessarily a good idea to shelve a capital campaign during a recession," says Karen Rotko-Wynn, Sr. Vice President-West Division, The Alford Group. "You don't want to kill the momentum on a project."
And "don't stop applying for grants," says Goodwin Deacon, Ph.D., a grantwriting and prospect research consultant and founder of the Puget Sound Grantwriters Association. "Foundations are required to give annually a percentage of the fair market value of their assets averaged over three years. So the effect of a recession is often blunted."
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Tips on fundraising in lean times
Source: UW Extension Fundraising Management instructors and advisory board members
- Maintain and strengthen ongoing connections with donors and communities. Say thank you and continue to update them on what their gifts have done for the cause or the community.
- Focus on current donors-and don't ignore those who have stopped giving. When the economy improves, donors are more likely to resume giving to organizations with which they have had an uninterrupted relationship.
- Don't go after new prospects-in lean times, it's too expensive to spend $1.50 for a contribution of $1.00.
- Pull people into the organization through volunteer opportunities, house parties, surveys, focus groups, work parties, and the like. You forge an emotional connection by engaging them this way, making them more likely to support the organization monetarily when good times return.
- Be strategic in who you target. Make sure there's a connection to your cause or purpose rather than shot gunning appeals to all and sundry.
- Emphasize smaller gifts. Focus less on the size of the gift and more on what it will accomplish. Thank you's become more important than ever because even a small gift may have been a big decision in lean times. People really appreciate timely acknowledgement.
- Cut back on special events. In lean times, donors tend to attend fewer events. For the events you do hold, use creativity to build in the fun factor but at lower expense. Focus all programs on substance, not glitz.
- Keep communicating strategically with donors and others in the community-send a compelling postcard once in awhile. If people hear nothing, they may think things are going badly. No news can lead to wrong assumptions.
- Never use the words "we need." In a slump time, everyone needs and repeating the phrase doesn't distinguish your organization. Say how you'll meet needs in the community. Make sure the tone of your communication conveys urgency without sounding needy.
- Rethink your budget. Don't expect the fundraising group to do it all by themselves during lean times. Include key leadership in the process. Stress sound, responsible financial management as part of the fundraising case for support.
- Avoid across the board staff cuts. Otherwise, your fundraising effort will be behind when the economy starts to improve. Staff cuts will also hurt acquisition of bequests and other planned gifts and make it difficult to keep up ongoing relationships with donors.
- You might be tempted to cut costs by going all-electronic in your communications-but know whether this is right for your constituency. If you do go electronic, forgo press releases in favor of 3-line plain text emails containing only the information the audience is interested to know (rather than what you feel they should know).
- Tie your work to the value you provide for your community. Remind people of your place in the community and of the need to sustain that community especially during difficult times. If you don't have a coherent case statement, develop one and make sure the organization uses it.
- If your board members have not actively sought gifts in the past, have them practice by asking each other personally. Don't stop there. Now more than ever, board members must set the example. Others will look to see whether the board supports the organization. Ask board members to help identify others who can give.
Fall Fundraising Management Certificate Programs
UW Extension offers a certificate program in Fundraising Management for those entering the profession and, new this year, an advanced program for experienced practitioners (courses begin in Fall 2008). For more information, please see Fundraising Management and Advanced Fundraising Management.
UW Educational Outreach is the continuing and professional education division of the University of Washington, the nationally recognized public research institution based in Seattle. Helping the schools, colleges, and departments to administer evening master's degrees, certificate programs, distance and online learning, international outreach and English language programs, and more, UW Educational Outreach is one of the largest and most highly regarded continuing and professional education programs in the U.S.
Instructors and advisory board members for the UW Extension Fundraising Management Certificate Program contributed to this article:
Goodwin Deacon, Ph.D. (instructor)
Grantwriting and prospect research consultant and founder of the Puget Sound Grantwriters Association.
Goodwin Deacon
(206) 524-3679
Susan Howlett (instructor)
Fundraising consultant and author of Getting Funded: The Complete Guide to Writing Grant Proposals (with Dr. Mary Hall)
Susan Howlett
(206) 545-2186
Amanda Madorno (advisor)
Roam Consulting LLC
Amanda Madorno
(425) 488-7747
Karen Rotko-Wynn (advisor)
Sr. Vice President-West Division, The Alford Group
Karen Rotko-Wynn
(206) 548-0451
Borje "Bud" Saxberg, Ph.D. (advisor),
Professor of Management and Organization, UW Michael G. Foster School of Business
Borje "Bud" Saxberg
206-543-4470