Not-for-profits looking to raise funds in today’s challenging economic climate need to be more compelling than ever before in order to succeed.
As Canada grapples with inflation and a housing crisis, the donors who might otherwise be eager to support not-for-profit organizations will be more particular about where they spend their money. This mix of economic circumstances – which are beyond the control of charities and not-for-profits – often leaves organizations scrambling to widen their appeal even as the economy around them grows narrower and tougher to maneuver in. Handling the challenge of these economic headwinds requires a mix of short and long-term strategies to ensure your donors are well cared for.
It’s a situation Armstrong Strategy Group’s philanthropic campaign experts see organizations regularly face. That’s why ASG has developed a Fundraising Mentor and Coaching Program, built to take your fundraising efforts to a new level of impact and effectiveness even in today’s economic climate.
What can your not-for-profit do to keep going strong when times are tough?
Long-Term Strategies to Boost Your Fundraising Efforts in Tough Economic Times
Focus on Relationships
In tough economic times, even donors with a solid financial base may feel squeezed by the act of giving. A strong relationship between a donor and your not-for-profit can make all the difference. Relationship-building isn’t just something organizations should do when it’s time to raise money – you should be focusing on it between those times, even when there’s no ask on the table. If the first time the donor sees you is when you’re asking for money, they’re far less likely to give.
If a Gift is Major For You, Make It Feel Major
The size of a major gift will depend on your organization – for small not-for-profits, $500 could constitute a major gift. Regardless, gifts that fit the “major” bill for your not-for-profit deserve more personal attention, even if they’re a relatively small gift for the person actually doing the giving. It should be a simple matter of process that anyone who gives at a major level should get, for example, a personal thank-you call from the board chair or a board member, not to mention a thank-you email. The more important the gift to your organization, the more recognition you should give it.
Have a Small Donation Strategy
Major gifts may be the big-ticket items, but organizations thrive on small donations, and it’s important in good times and bad to make it as simple as possible for donors to give. Not-for-profits should have an online giving strategy that allows multiple small donors to pitch in their support, as well as exploring other opportunities for small-scale gifts. A lot of $25 and $50 gifts can add up to a substantial impact for your organization.
Explore Alternative Funding
Gifts are important, of course, but it’s vital to explore other sources of support. Grants offer your organization opportunities to bring in new funding. Depending on your not-for-profit’s mission and structure, there may be opportunities to create revenue through operations. Creative thinking can help you make the most of these alternative opportunities, supporting the leg work you put in with your donors.
Short-Term Strategies to Boost Your Fundraising Efforts in Tough Economic Times
Make the Need Clear
With any strategy, it’s vital to communicate the urgency behind a given need. That’s all the more important in uncertain economic times. Communicating the seriousness of the economic situation and being realistic about the impact of economic conditions on your organization may help donors recognize the need to step up and help.
Quantify the Changing Context
For many not-for-profits, changes in the economy – inflation in particular – can upend the funding needs behind a project. The cost of construction may rise, the number of people needing to be helped may increase, and so on. It’s important for a not-for-profit to quantify these changes and put numbers to what’s happening as much as possible. Making the changing context clear will help donors understand why their help is so needed, and how impactful it can truly be.
Open the Door to Non-Monetary Gifts
Non-monetary giving will take different forms for different organizations. For a food bank, it could mean more gifts of perishables. For just about any organization, it could be as simple as more community champions talking about your message and your cause. Not all donors will have cash to give, but there are people in the community who will be champions for your organization. These champions can help keep your issue front and centre during tough times – and those extra voices can help rally donors to your cause.
ASG’s philanthropic team consists of seasoned fundraisers, grant writers and business developers with deep experience in fundraising and strategic counsel. There’s always a strategy – even when times are tough for your organization.
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