Let there be no doubt.  America's nonprofits are facing the toughest economy in our lifetimes.  Government, corporate and foundation funding is likely to shrink significantly.  Individuals are nervous about their savings and retirement funds, even their jobs.  Barack Obama's election may fill many with a sense of possibility, but even he warns that recovery will be difficult and gradual.
 
At the same time, demand for services is likely to grow, not just among social service groups but across the sector, as nonprofits are called on to replace programs such as arts in the schools which are losing funding.  To address this bind, many newsletters and tip sheets have been released with some excellent suggestions for on organizing the development function in a time of economic stress  (see links on Cause Effective's website www.causeeffective.org).

Cause Effective's emphasis on "the donor in each of us" leads us to bring this question back to you.  As you consider your own spending, how do you think about your charitable contributions?  Are you cutting back on total giving?  Selecting from among last year's charities those which are most important to you?  Giving amounts aside, how do you set priorities?  Organizations on whose board you sit?  Groups serving those facing greatest need such as shelters and soup kitchens or working in the developing world?  Institutions that have been important in your own life, such as schools, churches, hospitals or local community organizations?
 
We know from experience that all donors, whether very affluent or just getting by, feel less able to give during uncertain economic times and that all will go through more soul-searching in determining their contributions over the next year.  Organizations should recognize this time of reflection and allow themselves to be guided by the basic principles of fundraising, first and foremost of which is:  fundraising is about values and about relationships, not about money.  Money is simply the currency through which moral and social priorities are expressed.
 
In that vein, we offer the following thoughts.

Don't just be a fair-weather friend. 
Reach out to your supporters and talk about what is happening, to them and to your organization.  For those who work in industries such as finance - call and find out how they are faring.  Express your understanding and sympathy for what may be a very difficult time.  Let them know your relationship to them extends beyond their moments of generosity, which will surely return, in time.  For those who continue to give, let them know how much you appreciate that continued support, particularly at this moment.  For those who can't, express your intention to maintain the relationship and return to ask at a more opportune time.  Your board members can help with this outreach - thereby reinforcing the teachable moment that fundraising is about relationships, not just asking for money.  
 
Accept help in all forms. 
Offer opportunities for people to donate their time as volunteers or to provide in-kind goods and services.  Be creative in providing supporters ways to stay involved, even if cash is tight.  Can you use greeters at your events?  Extra hands in the office at year-end mailing time?  Are there in-kind donations that can reduce your expenses (copying, Web design, office supplies) or meet programmatic needs (upscale meeting space, staff trainings for professional development)?  As donors hone their emotional and moral choices in line with their financial capacity, you want to make sure that those who share your values are able to continue to travel along with you, whatever shape that takes.

Repeat after us: Fundraising is Friendraising.
While aggressive approaches to attract new donations may not be timely, this is still an opportune time to cultivate new friends and deepen the knowledge of existing prospects about your work, particularly if you can link your mission to meeting needs which arise from economic hardship.  Dovetail cultivation activities with program events.  Encourage board and staff to reach out to their contacts to explain the importance of your work, now more than ever.  People are devouring news - about the economy, about the meaning of the elections - the path is open to communicate your work in ways which are relevant.  Can you offer briefings, providing that sense of special "insider access" that contributes to an understanding of your work in the larger social context?
 
Donors 'R Us. 
Establishing some common bonds around our anxieties - and some constructive responses - can emphasize to supporters that we are all in this together, as peers.
 
The bottom line is: we're going to make it through, and we're only going to make it through, if we stand together with our supporters as partners.  Some of us work in the nonprofit sector for our livelihood, some of us volunteer, some serve in governance roles on boards, and some provide the capital to get the work done - but all of us are unified in our concern for a better world and our willingness to put our own resources (time, money, stuff, expertise) on the line to achieve it.
 
At home, at work, among our neighbors, during moments of change and stress, our instinct is to gather more tightly and share our concerns.  It may be a paradox, but this is a moment to celebrate the community that has stood behind - and in front of - your work, and to reaffirm the shared values and commitment to mission that will carry us through to more prosperous times.

Back to Fundamentals...
 
Organizations throughout New York City and Southern Connecticut have the opportunity over the next few months to consider the implications of a changing economy during Cause Effective trainings in the strategy and techniques of individual donor development and special events, thanks to partnerships with Citi Foundation, NonProfit Coordinating Committee of New York and the Bank of New York Mellon, and the Foundation Center.  These trainings will offer a unique, practical chance to reassess and update organizational fundraising strategies in a time of economic contraction.
 
On December 10th, the Citi Foundation is sponsoring Cause Effective's full-day individual fundraising workshop, Raising Friends...Raising Funds in Stamford, which is open to all Connecticut nonprofits.  Participants will also be eligible for personalized follow-up consultations on Dec. 11 and 12 to tailor their learning immediately to their particular needs. 

For more information go to: http://www.causeeffective.org/resources/resources_workshops.php

As the latest partner in the NonProfit Coordinating Committee of New York's Skillsbuilders series, Cause Effective will be offering in-depth fundraising training over 6 months to a select group of NPCC member organizations.  Starting in January 2009, Cause Effective will facilitate a series of workshops, support clinics and customized follow-up sessions to take 30 nonprofit organizations through the process of building a diversified grassroots funding base.  We can offer this individualized attention, normally costing thousands of dollars, at the reduced fee of $500 per group thanks to a generous grant from The Bank of New York Mellon.  For more information and to register for an introductory session in December about the series, go to:  http://www.causeeffective.org/resources/resources_workshops.php.
 
With purse strings tightening, groups running special events must take every chance to shape their events to the true interests and ability of their audience.  How can groups know which event is the best match for their audience, their objectives, and the shifting financial landscape?  On February 5, Cause Effective will present a workshop on Special Events Fundraising in Times of Economic Hardship at the Foundation Center.

Cordially,

Judy Levine, Executive Director
Cause Effective

Cause Effective provides management consulting services to nonprofits. We teach our clients how to build effective boards, manage successful events, and maximize their fundraising potential. We help them grow independently and experience tangible results from their efforts.  To learn more, please visit: www.causeeffective.org.