Last week, the Chamber launched a webinar series geared towards answering questions and addressing issues that many nonprofits are facing right now. We kicked off the series with the Winkler Group‘s Tim Winkler, Founder and CEO, and Jim Bush, Principal and President.

This first webinar brought to light some similarities between the Great Recession of 2008 and our current situation from a fundraising perspective. Comparing the two situations is not apples to apples – there are certainly differences. However, it is important to look at the similarities and see what can be learned.

Because of some of the striking similarities that can be observed between 2008 and now, our presenters were able to share some lessons learned and recommend best practices for nonprofits today. “What you do over the next three months is going to impact your organization for the next three years.” It’s extremely important to take advantage of the lessons learned in the past to start off on the right foot now.

Context: 2008

In the financial crisis that swept the nation in 2008, the markets dropped 40%, but charitable giving only saw a 4% drop. Philanthropic giving had rebounded before 2019, and in fact had record growth from 2012 to 2019.

Already, just a few weeks into the coronavirus crisis, we are already observing a similar trend: the philanthropic pool is not drying up, it’s just getting refocused. Tim and Jim predict that the recovery will not be as prolonged as it was after the 2008 economic crisis. However, that does not mean you shouldn’t take immediate measures to ensure the survival of your organization.

Lessons Learned

Based on the trends from 2008, the Winkler Group compiled a series of lessons learned to ensure that nonprofits can continue to function and even thrive during this time of coronavirus.

Don’t Stop Raising Money

It’s not just that you shouldn’t stop fundraising – you can’t. This task can be a tricky one. While it’s imperative that you continue to fundraise, you also can’t be tone deaf. Recognize the situation and put your organization’s mission in context. The crisis in 2008 showed us that charitable giving only decreases slightly in times of crisis. 

For nonprofits, this means that you should still be fundraising, but be cognizant of your messaging – adjust if necessary.

Don’t tell yourself that people have more important things to focus on or that it’s insensitive to ask for money. It’s up to you to ensure that your ask is not insensitive. “It may not be business as usual, but it’s still business.” While you may not be able to continue your planned fundraising efforts (paused fundraising campaigns pose the perfect opportunity to hone your prospect list, refine messaging, etc.), develop a new 90-day annual fund strategy. This will show that you are recognizing the realities of the world around you, but are still unapologetically trying to serve your community.

Most importantly, even if you’re not making an ask, stay in touch with your donors. In healthy times, 80% of donations come from individuals; during tough times, all your energy should be focused on maintaining relationships with your donor base.

Of your regular donor base, there are typically three groups that arise during tough times:

• Those that can’t keep giving now, but who will return to donating after recovery
• Those who are probably capable of continuing to give, but who will choose not to
• Those who are able and willing to keep giving and support your organization during this tough time

All of these are okay. It is important to let your stakeholders know their importance to you beyond the dollar amount of their donation. Continue to target your fundraising messaging to the third group, but don’t forget to keep an open line of communication with your entire donor base.

Investors, Not Donors

It’s important to think of the individuals and organizations who financially support your mission as investors, not donors. By doing this, you enhance the relationship you have with them, giving them more of a stake in the prosperity of the organization. How can you start treating them as investors rather than donors?

• Give them an inside view into the organization. Speak honestly about the situation the organization is in.
• Don’t afraid to be vulnerable (but not dire). Be willing to share the nitty gritty, unfiltered version of what is happening. But make sure that you have proactive measures in place so that you can show your investors what steps you are currently taking.
• Seek their advice. This will make them even more interested in the success of the organization. Invite your donors to be partners in your efforts.

You Cannot Overcommunicate

The value and importance of communication with your investors cannot be overstated. If you take the time to connect in an authentic and organic way, you will continue to build your relationship with investors and be ready to pick up the conversation about donation once both parties are ready again.

• Never stop cultivating
• Pick up the phone
• Give them your cell
• Keep them in the know

However, it is critically important to remember that authentic communication is different than white noise. Your communication needs to be meaningful; show that you are interested in your investors – ask how they are doing. Do not focus all your communication on the organization and its needs.

Plan Strategically

90% of fundraising is planning; if you’re being reactionary right now, you’ll just be treading water. You need to have a plan, and you need to have it now. It doesn’t have to be a 5-year plan that would ordinarily take weeks or months to devise.

Rather, come up with an immediate 90-day recovery plan. Your investors will want to see this and it will help you get back on track faster.

Be creative, innovative, agile

Right now, every nonprofit is in startup mode. This means you have to be creative and nimble. Many organizations are being forced to pivot in one way or another, whether that’s delivery of services, events or fundraising – now is the time to be proactive, not reactive. Having adaptability will allow you to bounce back quicker and pivot to whatever is next.

This will pass

Maybe the most important takeaway from 2008 is the recognition that although we are in the midst of hardship right now, this will pass. Through it all, try to approach from a position of strength, not desperation. Following the steps outlined above are a great starting point for doing just that. Make sure your investors/donors know that they are appreciated, even if they are not actively donating now. And don’t be afraid to continue to ask for what you need.

If you’re interested in listening to the full webinar, you can find it on our website here.