Raising Funds in Hard Times
Simon George | 5 October 2011 | Blogs
Last week NCVO said 98% of charity leaders it sampled were pessimistic about the economic outlook and today BBC news featured the plight of charities cutting staff due to falling donations. Clearly, a lot of donors are feeling the pinch, with rising prices, more redundancies and a falling stock market. Even those in jobs are feeling poorer as their pockets are hit and they see the value of their savings falling. No surprise then that some charities are finding it tough at the moment.
So what can we do to ensure our organisations get through the next 12 months?
First, how is your strategy faring? Is it realistic and properly resourced? I still see some ambitious growth targets and sometimes wonder where these came from and how they will be achieved. Take a reality check and make sure your targets are realistic and achievable.
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A defensive priority for these times is to hang on to as many existing donors as you can. Keeping existing donors must take priority over acquisition. A powerful case for support is absolutely crucial here, so how good is yours and how do you know? Have you tested it recently?
Donor care is also key. As well as providing people with a strong reason to give, you MUST thank them appropriately, give them regular feedback about how their money has been used and re-enforce their decision to give. Appreciate your donors and they may just stick with you. Where people are reducing their charitable giving, you need to make sure your organisation is still on their list when they have culled it, so make sure your donor care is excellent. This applies not only to individuals, but also to some institutional donors, such as trusts.
Most organisations will have been seeking to convert as many cash donors to regular giving as possible. This should continue (and if you have not yet done so, it’s never too late to start!). This provides some defence against a negative climate.
Diversification may also be in order. For example, I have recently seen some excellent examples of charities developing very profitable social enterprises, which are more recession proof than donation seeking. My local hospice, for instance, runs a fantastic furniture warehouse, taking donated goods and selling them back to the public. If people are cash strapped they may still be willing to give in kind, while others will always have an eye for a bargain. So what could your organisation do to earn money?
At times like these, charities that receive strong legacy income will be glad of their past efforts, which will help them to ride out the storm. Those that have not invested in legacies will be wishing they had. Maybe now is time to start, so next time recession bites, you will be more resilient?
Allied to all this is scrutinising your budgets. By this, I don’t mean cutting your investment in fundraising, but making sure that every penny is well spent and is getting the return you need. When did you last check your ROI’s across the board? Are there any underperforming areas? If so, take action to fix them and prioritise those techniques with the stronger returns.
Fortunately, it is not all doom and gloom. Some charities are doing well, despite the harsh climate. For the rest, the message must be not to panic, but to tighten up your practices, love your donors and take decisive action where you need to.
About Simon George
Simon George, BSc (hons) FInstF (dip) FRSA is a Director of Wootton George Consulting and has been fundraising since 1987. He has special interests in fundraising strategy, legacies and charitable trusts. A longstanding member of the Chartered Institute of Fundraising, he founded its Trusts and Statutory Special Interest Group in 1999 and was also the first Chair of the IoF’s West Midlands region. He has written two e-books on legacies and grant fundraising, published by SPMFundessentials and has achieved the Diploma in Fundraising Management. In 2010 he was made a Fellow of the Institute of Fundraising. Today he manages a team of 20 fundraising consultants around the UK.