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Fundraising in hard times: What do we do now?
By Elaine Jones
MAGNews, Fall 2002
© 2002 Management Assistance Group, Inc.
In tough economic times, non-profits get hit hard. Individuals have less disposable income. Stock profits are scarce, and foundations often cut back on funding programs that once seemed secure. Even more volatile are government funds for human services - 40 states cut them dramatically this year. A typical response to these challenges is to go fishing--not on the river, but for some new direction that will attract new funding. Executive directors cast about for new programs that they hope are more fundable than whatever they were doing when their sure-fire proposal was turned down.
The response MAG recommends: Don't Panic!
While every situation is different, keep in mind 10 basic Do's and Don'ts:
- DON'T abandon your mission. What might look like a good short term funding opportunity that dilutes your identity will come back to haunt you if your donors no longer know what your organization stands for.
- DO revisit your core purpose and take the time to help yourselves remember why you are committed to your organization and its primary programs.
- DON'T follow the money. You don't have to start a new program just because someone offers you money to do something they want done.
- DO look for new and creative funding opportunities that help further your mission and excite a current donor or new prospect.
- DON'T make appeals that focus only on the funding crisis or the threat to your institution. Lots of groups are in trouble, and donors know that not all of them should survive.
- DO send out urgent appeals to keep essential programs and meet real needs. Most people are moved by issues and social concerns much more than about the needs of your institution.
- DON'T create too negative a picture of your group's viability. Few donors want to risk contributing to a lost cause.
- DO engage your board and your stakeholders in honest conversation about needs and funding shortfalls, and ask their advice for new fundraising ideas.
- DON'T assume that a new development director will solve all your problems. While investing more resources in fund development may be essential, any new fundraiser will need six months to a year to establish a new development plan and begin to implement it successfully.
- DO create a mission-driven fundraising plan that lays out concrete steps toward a more stable, sustainable, diversified funding base.
