# How will the recession change fundraising strategies

- Link: https://fundraising.co.uk/2008/11/05/how-will-recession-change-fundraising-strategies/
- Published: 2008-11-05T18:49:28+00:00
- Author: Howard Lake

Fundraising departments could shrink by up to a third by 2010 to see charities through
the recession, according to Andrew Thomas of Charity Consultants.

Thomas was speaking at a round table event organised by the Insight, Trusts & Statutory
and Major Gifts Special Interest Groups of the Institute of Fundraising this week.

Looking at historical data, Thomas said that charities generally go into recession
later than other sectors. He said he was expecting severe cuts in fundraising departments
during this recession because there were not sufficient cuts in the last economic
downturn. “Trustees will be looking for more cost-effective fundraising,” he told
delegates.

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Stephen Dodds of DMS felt there is a strong likelihood that donors will change their
behaviour and that we should be paying close attention to the demographics of our
donors. “There is a sense of unease about the financial situation,” he said. “In
research donors have said they will hold back generally to see what happens, or 
they will not extend their giving for the same reason.”

However, he said that the recession was likely to just emphasise existing trends
and that we should expect to see response rates on direct mail continue to fall,
and experience more difficulty getting donors to commit to a second or regular gift.“
Donors increasingly see through our efforts, are more marketing savvy and cynical,”
he said. Fundraisers should stay close to donors to understand how different groups
will be affected and they should be able to engage with donors to prove that they
understand motivations.

He also thought it was about time the sector really got to grips with using the 
internet as a tool for communicating effectively and efficiently with donors.

But maybe there isn’t so much of a problem. Jan Chisholm of Pareto Fundraising deals
in data, not opinions. “We see opinion surveys saying people will cut back, charity
CEOs saying they will see income drop. It’s scary that decisions are being made 
on the basis of these opinions,” she said. “It will be self-fulfilling prophesy:
if you cut back, you won’t recruit as many donors.”

She advocated investing in top data analysis to give fundraisers the best chance
of understanding their donors.

Conversely Stuart Sheriff had sought the opinions of trusts who generally feel that
they will have less to give but anticipate the number of applications increasing
significantly. They advise that charities will have to show they are planning for
the recession and not just carrying on as normal and will really have to demonstrate
exactly why they need the trusts’ support.

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## Comments

### By: natty2506

- Link: https://fundraising.co.uk/2008/11/05/how-will-recession-change-fundraising-strategies/#comment-3361
- Published: 2008-11-13T12:00:55+00:00

Stephan Dodds is right to point out that we need to be paying close attention to
the demographics of our donors. But rather than cutting back using generalized opinion
polls, we need to research them specifically.

Jan Chisholm correctly points out that that acting on generalisations has the potential
to hurt the very core of the charity, something that could ultimately result in 
the organisation cutting off the very people it relies on for survival.

In my experience, the only way to produce an effective strategy that deals with 
today’s challenging climate is to truly understand a donor’s motivation for giving.
Only then can strategic decisions be made, safe in the knowledge that it will not
alienate the very individuals who fund the organisation’s work.

Increasing numbers of marketing savvy charities have latched on to the importance
of detailed donor research, recognising that it provides a route to truly connecting
with supporters and ensure future interaction develops donations and loyalty.

Effective marketing is all about finding out what people want – in this case donors–
and using that to nurture a mutually beneficial relationship. However a common mistake
is to make key decisions based on generalised opinion polls, something which results
in well intended, but ill advised, decisions.

Donor research is an essential, yet amazingly, remains very under used.

Often the perceived cost is a barrier, yet those who look into it realise it is 
both affordable and capable of providing in depth, high quality information that
can be relied on.

Understanding who donors are, and what is needed to keep their loyalty, is one the
best investments a charity can make in today’s challenging environment.