by Peter Fissinger, President

Although the Great Recession officially ended 15 months ago, the nonprofit world, along with the rest of the country, still feels uncertain about the prospects for a full economic recovery.  As many nonprofits continue to feel the effects of the recession, they have questions about appropriate fundraising strategies.  Campbell & Company President Peter Fissinger offers his perspective on the best fundraising approaches during a time of economic insecurity. 

In addition to your work as a fundraising consultant, you have been a longtime market observer.  What do you see in today’s economy?

I see the economy as being much more stable than last year, which makes my outlook fairly positive.  Unemployment still represents an obstacle to recovery; however, if you look at a number of other market indicators over the past several years, you can see definite growth.  For instance, in 2009, the Dow Jones Industrial Average fell to 6,500, but this year, it has consistently remained above 10,000.  What’s lacking is confidence that the economy will keep growing without further difficulties, and this makes people nervous.     

And obviously, the more pertinent question is how will current uncertain market conditions affect philanthropy?

It seems like everyone is asking the same question: when will things be stable again?  And unfortunately, I do not think there is a clear answer.  Donors, nonprofit leaders, board members all feel unsure about the current economy.  They recognize that a recovery has begun in earnest, but, to them, progress seems slow enough to be a cause of concern.

Under these conditions, history is always helpful.  People will give even under the worst conditions.  So, with our improved and more stable economy, we know there are many capable donors out there deciding when to give and how much to give.   They may give to fewer organizations, give fewer major gifts and limit their contributions to their favorite nonprofits—but they will give. 

What challenges do organizations face during these times?

Many nonprofits have faced budget cuts or freezes for the past several years, which means they run the risk of being out-of-date with regard to best practices.  They face the difficult challenge of needing to simultaneously reinvest in their future, plan for major campaigns and rebuild philanthropic revenue.  That is a lot to do at once with a tight budget.

The larger challenge may be to remain optimistic under these circumstances and to keep presenting donors with meaningful opportunities to invest.  Our clients, when persistent, are experiencing fundraising success.

 What strategies do you recommend under these circumstances? 

I think the best approach here is to undertake focused planning based on mission, fundamental values and potential to build philanthropic revenue.  We need to do the important things as well as possible—and eliminate the rest.  This means getting back to basics, sticking to the basics and getting better at the basics.  In other words, every organization should focus on doing its essential work, connecting with its donors and stewarding its resources.    

And how should nonprofit organizations approach their donors?  Are there opportunities to find additional philanthropic support in this uncertain climate?

Nonprofits need to maintain strong relationships with their donors and friends.  They need to thank their supporters and help them see the impact of their gifts on their mission.  And despite the economy, they still need to actively draw on the generosity of their current donors.

I think it helps to ask a few fundamental questions about current donors: who are these people?  What motivates them?  With the incredible advances in analytics technology, we have opportunities to learn more about our current and potential donors than ever before. 

Using this information, nonprofits can identify their next generation of donors.  The best way to do this is to model future strategy on past success.  They need to ask themselves: where can we find people like our current donors?  What messages will resonate the most strongly with them?  When the economy gets better—and it will get better—these new donors will have the potential to take organizations to new heights. 

Out of everything you have just described, what step should nonprofits take first?

They need to assess where they’re spending their time, energy and money, and look at the results.  If some activities have a low return on investment, they need to consider shifting their resources to more productive work. 

And as we consider changing roles and hiring new staff, we need to ask: who will have the talent to be thoughtfully aggressive?  Where can we find them? 

Any final thoughts?

I think we are standing with one foot in the past and one foot in the future.  Everyone is justifiably nervous about the current weak recovery; however, we have to remember that there will be growth.  Right now, we need to find the courage to invest wisely in the future.