Green shoots
October 2009
Fundraisers are feeling positive about the economic challenges ahead and are still generating income through the financial storms
One third (33 per cent) of not-for-profit organisations that participated in a recent fundraising study have seen an increase in income over the last year despite the economic gloom.
The Management Centre’s Global Fundraising Confidence Survey 2009 revealed that although 50 per cent of non profits have reported a decline in annual income, a significant number are successfully fundraising through the recession.
The qualitative online survey was carried out between May and August 2009 and explores the views of 126 fundraising directors and sector experts across the globe on the impact of the economic downturn on the third sector. Of those organisations that saw a fall in income almost 20 per cent saw their revenue drop by 10 per cent, however 14 per cent of those that managed to enlarge their fundraising pot reported income growth of 10 per cent or more. Third sector establishments in Asia felt the brunt of the economic climate with an average income fall of 13 per cent compared to an average decline in Europe of just 1 per cent.
The majority (54 per cent) of those who suffered depleted or static income levels were reluctant to blame the recession as a sole explanation. Difficulties in recruiting good fundraisers, poor crisis leadership from other directors and the board and a lack of effective strategy for dealing with the crisis were cited as additional causes.
Common factors revealed to be positively impacting revenue were:
- increased investment in fundraising and working harder to counteract anticipated income falls;
- finding new sources of income;
- major donors stepping in to boost income; and
- innovation in fundraising to create new offerings.
Proactivity and an ability to meet the recession head on have been key for successful fundraising; when asked to indicate which recession-battling strategy they had employed this last year over half of respondents favoured ‘fighting for market share – expansion has been our key tactic’. Twenty-five per cent selected ‘taking effective action quickly to maintain donations’.
Looking to the future, confidence levels are improving. Over half (56 per cent) surveyed stated they feel more optimistic about the coming year, 11 per cent feel less optimism whilst 33 per cent feel much the same.
Bernard Ross, director of the Management Centre confirmed that the survey results reflected a wider understanding of what he was already hearing from fundraisers. ‘Fundraisers have been quick to adjust to the economic climate,’ he said. ‘Major donors and innovation are seen as drivers for better results.
It’s also interesting to note that many see social media as playing a key role, although in my experience fundraisers are still uncertain about how to do this. But the most common advice from successful fundraisers was probably the best: “stay close to donors in as many different ways as you can”.’
Author: Claire Shropshall
Claire Shropshall is the editorial assistant for Charity Funding Report, Caritas, and Codicil magazines. Claire has a BA in English Literature and Philosophy from Birmingham University and a Postgraduate Certificate in Periodical Journalism from London College of Communication. She previously worked in Central America as a voluntary reporter for an English-language newspaper.
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