Not surprisingly the NY Times announced that donors are not giving as much to nonprofit organizations as they have in the past. They are holding back. I am working with clients who are experiencing the same downturn in contributions. Donors are recalibrating and making tough decisions.

The new focus in fundraising this year appears to be focused on supporting annual operating needs. The idea is that a $1 given today is worth a $1 (no more or less). The dollar is not going into an investment fund where it may be worth less in a couple months time. A general operating donation will have an immediate impact on a nonprofit organization. The programs and services will continue (at least for today).

With many people concentrating on surviving day-to-day. The mentality of donor’s intentions have shifted. Many nonprofit organizations have already taken the standard steps: salary freezes, vacant positions remaining open, contributions to employee benefit plans being reduced, volunteers filling critical functions. Now true contigency planning is taking place. What if we cannot even hold our special event? What if we run out of operating funds?

So what can nonprofit organizations do to stay in-touch with donors. The most successful strategies I have seen include:

• Communication: Have board and staff members reach out to donors and supporters. Do not be afraid to call and express your appreciation. One organization recently contacted me four times in ten days using a combination of board and staff members. They were asking for an annual gift but the message was clear that participation and ongoing engagement was critical.
  
• Extending benefits: If a donor is not able to give at the same level this year but has a history of donating consistently consider extending benefits that were associated with their historic level of giving. The quicker an organization shows a short-term memory the easier it is to disenfranchise a donor during tough times.
• Make the donor an insider: I recently received an email that was sent to a select group 48 hours before the same email went to the general membership. This little touch made me feel like the organization had identified me as someone who it wanted to communicate with in advance. The information did not change but the presentation and timing made a difference in my perception of how the charity valued me.
• Be transparent: Engage your members and supporters. Seek advice. Share the big decisions facing your enterprise. I worry more about the nonprofit organizations who are not communicating and sharing information on their status. Organizations that acknowledge their challenges gain more of my trust.
• Refine and confirm your identity: A couple of my consulting clients have made a concerted efforts to review their core identity. Being able to speak to why their nonprofit is uniquely positioned to offer the services and programs that are at the core is more valuable than ever. Donors want to invest in organizations that show signs of sustainability.

See the link to the NY Times article: http://www.nytimes.com/2009/02/26/business/businessspecial3/26GIVE.html