Successful Fundraising During a Recession

It might come as a surprise to you that during the last five US recessions, charitable giving did not decline with the GDP. In general, recessions reduce the growth of philanthropic dollars given, but they do not cause them to go into decline. That’s the good news. The bad news is that whenever the economic climate changes, the fundraisers asking for charitable dollars must either adapt to succeed, or remain stagnant and fail as the messages they present no longer resonate with donors. Consider these 10 tips on how you can ensure that your organization can raise the funds it needs during difficult economic times.

1) Empathize – Many of your donors are hurting financially right now. Some have their lost jobs while others have watched their retirement savings disappear in a few short months. Don’t ignore your donors’ problems. Face them head on by acknowledging what is going on in the economy. Your donors feel a special connection to your organization because you speak to them about something they are truly passionate about. Let them know that you understand what they are going through and that now is not the time for you and them to part ways.

2) Be Current – Does the recession mean anything specific to the constituency you serve? Make the case that your organization is needed now more than ever. This is particularly obvious for organizations such as food banks, but almost any organization can make a valid case. Speak authentically about how the downturn in the economy affects the work you do.

3) Speak to Losses, Not Gains – Research shows that people are more likely to act when they believe they stand to lose something and are less likely to act when the problem is posed in terms of gains. That means you should talk about the services you will have to cut without your patron’s support instead of framing their donation in terms of how much more it could do. But that isn’t to say you have to give up your organization’s goals. Simply frames your goals in terms of losses. For example, if you planned on beginning a new program this year, tell your donors that without their support, you will lose your ability to start this new program and provide some vital service.

4) Be Frugal – Your donors no longer have money to burn, and they want to make sure that you aren’t wasting any of yours either. Refrain from doing anything that might give the appearance that your organization isn’t spending its money wisely.