"You Only Learn Who Is Swimming Naked When The Tide Goes Out." -Warren Buffet

"You Only Learn Who Is Swimming Naked When The Tide Goes Out." -Warren Buffet

This quote from Warren Buffet may conjure graphic imagery, but trust me that this post is rated “G”.

Just this week, I’ve had conversations with three different Executive Directors who have found themselves well…“naked” as the tide is going out, and wondering how to realign their fundraising goals and strategies with the state of the economy.

I’m sharing the conversations in hopes that your organization doesn’t make some of the same mistakes. I’ve promised each Executive Director anonymity so names and other incriminating details have been concealed to protect the “naked”. Here are some of the issues:

1. Raising 85 % of their funding from two large grants that they wont get next year: the Madoff scandal has put one major foundation out of business, and the other foundation is not accepting RFPs until they can fully evaluate the economy. If your organization receives grant funding, you have to check out the 2009 Foundation Giving forecast, published and consistently updated by the Foundation Center

2. Scaling back on fundraising staff, leaving much needed fundraising positions vacant and redistributing the workload.

3. Creating employee burn-out from # 2 and loosing a dynamic fundraiser to another organization. This naked offender did not have a succession plan for the dynamic fundraiser, and now suspects that several large donors may have followed dynamic fundraiser out the door.

4. Being complacent about getting up and running with a donor database. Donor data is one of a non profit organizations most valuable assets, so if you don’t have a system, check out this comparison of some of the most popular data base tools for nonprofits. Make a commitment to nurtureyour donor data my managing it data properly. These systems can do much more than MS Excel ;)

5. Failing to DIVERSIFY, DIVERSIFY, DIVERSIFY their organizations fundraising efforts and developing strategies to raise money in the 5 major areas of fundraising: Individual and Corporate Giving, Foundations and Grants, Special Events and Earned Income.

Having been a fundraiser during the economic downturns of 1998 and early 2002, I know for sure is that the hard work put into thinking about sustainability while sticking to audacious funding strategies paid off when the economy got better.

What's the status of your non profit? Will you be caught naked?

Recession Ready Fundraising

Recommendations for surviving hard times.

By Anisha Robinson Keeys

Sales guru Zig Ziglar said, "If you have enough push, you don't have to worry about the pull.". In our economic climate, cutbacks on the part of grantmakers and donors will likely affect your ability to raise funds, requiring you to push that much harder to maintain financial stability. Here are ways to do so:

Diversify income streams

Many nonprofit organizations weather tough times by adding more sources of income. Given today’s environment, all nonprofits, even those that have historically raised money from just one source, should consider expanding the ways they generate revenue.

Create a fundraising plan with a broad reach. Such a plan should target income from a variety of places, including individual donors, corporations, and foundations, as well as earned income from special events and the sale of products and services.

Honor your volunteers

Tough times require subtle changes in the tone of the “ask” and the relationship between donor and recipient. An often-overlooked source of support for nonprofits, the volunteer, can be a key barometer for how successful a fundraising plan might be.

During an economic downturn, volunteers may be scarce, choosing to give their time and effort to personal or professional commitments. In response, consider demonstrating to volunteers just how and why their altruism is worth it.

Think of ways to make volunteering pleasurable and beneficial. For instance, use and promote the organization’s events, friendraisers, or fundraising initiatives as opportunities for volunteers to network with potential business contacts.

Also, minimize obstacles associated with serving. Respect volunteers by starting and ending meetings and events on time. Demonstrating appreciation goes a long way in fostering loyalty.

Keep in touch

Another important, no-cost strategy is to retain funder interest. Now is a great time to keep in touch with your supporters. Their investment shows that they care about the work your organization does; show that you care by keeping them informed of your initiatives.

During your calls, share success stories that can re-energize their commitment. Use anecdotes and case studies to reveal how their time, money, and talent are making a transformative difference in your organization.

Collect statistical data, but don’t overwhelm your supporters with the stats. Remember that donors are as emotion-driven as anyone else. The relationship between donor and recipient is based on people helping people.

Donors give more when they read the story of how their contributions affected on specific individual, as opposed to a report on many anonymous people. They also tend to donate more

to an organization if they also volunteer for it, so encourage donors to become active volunteers.

Be a part of your own solution

Openly confront the issue of how an uncertain economy could affect your organization’s stability and viability. Donors know that no matter where the economy is headed, raising money is never easy. So they’ll have concerns about how your organization will prevent, mitigate, or recover from loss of funding.

Many nonprofits operate under the constant threat of financial uncertainty. Therefore, they must be creative, proactive, and enterprising, constantly seeking opportunities, without forsaking their mission, to ensure sustainability.

There’s an earned income option for just about every nonprofit seeking to supplement fluctuating donations. Coming up with the right fit may just be a matter of brainstorming.

A good example is the Girl Scouts. Noted for being enterprising, the Girl Scouts netted over 700 million dollars from cookie sales last year.

Baking cookies isn’t the answer for most nonprofits, but it helps to have an earned income plan. For example: An organization that provides specialized training or has a talented management team may provide fee-based consulting services to emerging organizations in the same field.

Never stop asking

The best way to ensure that your organization loses revenue and goodwill is to stop asking for money and support. In good times and bad, stay positive and creative. Keep pushing hard to ensure survival and fulfill your promise to serve your community.