Tough Times

Andrea Ball the Non-Profit Writer for the Austin American Statesman recently wrote an article about how the sagging national economy is hitting some Central Texas charities in concrete ways: dwindling donations, program cutbacks and even layoffs.

She referenced several Central Texas Charities, some that had had to cease operations for a period of time and one that been forced to lay off seven people, or 10 percent of its staff, last month.

A National Organization running two national hot lines for people in crisis has seen a $750,000 drop in its hot line funding — 13 percent of the programs' combined $5.6 million budget.

All of these organizations had the same lament: "We just aren't getting the corporate support we used to.”

However, she notes that some nonprofits are doing as well as they did last year, and some are even expanding.
Andrea references one Texas Non-Profit that has already raised 18 percent more money this year than it did in all of 2007.

What do you think this organization was doing that the others were not? I would submit that they were taking the time to show supporters why they are worthy of financial contributions and finding new and innovative ways to reach donors.
Someone once told me there are only two ways to raise more money. Get more money from your existing Donors, OR find new donors.

It’s a common myth and almost wishful thinking to expect an IBM, or Dell, or US Steel to fund your organization. The vast majority of giving comes from individuals and individuals make their decisions many times based on personal involvement and perception of value. It’s the responsibility of an organization to think about the way they're being perceived and what the value of their services is to the community. It can't just be 'We're great, we have a great reputation, and we're vital. Fork it over!’

Studies have shown that corporate gifts to foundations and other nonprofits slow down during hard times. According to Giving USA, a foundation that publishes data and trends about the nonprofit sector, charitable donations did not keep pace with inflation during economic slumps in 1973 and 2001. The message is clear. Don’t count on those big corporate gifts to pull you through.

This makes Fundraising efforts that depend on individuals even more vital than they were just a few years ago. Your Annual Campaign, your Golf Tournament & Sporting Clay, your Charity Benefit Auction are all important. Ask yourself:

Do these events maximize profitability?

Are the same donors coming to three events? Are we “Nickel & Diming” them?

Is there a way to tap into new donor pools?

Are we being consistent with our message?

I am a Charity Benefit Auctioneer. I know Fundraising Auctions, how to organize them and how to maximize there effectiveness. I have learned all this from 20 years of Non-Profit fundraising experience. BUT even I know that if you have all your eggs in a “Charity Auction Basket” you are playing roulette and you will eventually lose.

Diversify your fundraising strategy. Make every effort to keep your existing donors and let the community know that you are important. Be specific. How many families do you serve? What progress has been made toward the cure? How many Scouts from the inner city went to New Mexico and what kind of experience did they have? Put a face to your work and you’ll come out of this stronger and more efficient for the ordeal.