Fundraising in a Recession: Success is Driven by Conviction
Everyone continues to talk about a possible recession and US defaulting on its debt, and the nonprofit sector is in a particular state of alert. Recessions and economic downturns, while disruptive, have been a recurring part of our shared history. And yet, each time we see nonprofits who, against the odds, not only survive but even thrive during these difficult periods.
How do they achieve this? The key lies in a deep conviction in their mission and the willingness to go on the offensive, even when times are tough.
A study published by Nonprofit Quarterly showed that between 2007 and 2015, during the the Great Recession, certain sectors within the nonprofit world saw significant growth. Higher education, hospitals, and healthcare organizations grew their assets by 27.6%, while all other nonprofits gained 12.3% in assets. These organizations understood that despite the economic climate, their mission's relevance did not wane. In fact, it became even more vital.
But how can a nonprofit position itself to weather an economic downturn successfully?
Here are a few strategies, compiled from Classy.org and further informed by experience in the sector:
Establish Long-Term Goals: Economic downturns, while challenging, are temporary. It's crucial to keep your eyes on the horizon and continue working towards your organization's long-term goals. Remind yourself, you can and you will get through it.
Work Toward Tangible Milestones: Breaking down your long-term goals into tangible milestones makes the journey more manageable and helps maintain momentum even when resources are stretched thin. Always think of why your mission exists.
Thoughtfully Allocate Resources to Long-Term Growth: Even in a recession, opportunities for growth exist. Allocating resources strategically can set the stage for significant progress once economic conditions improve.
Build the Trust That Retains Supporters: Trust is the foundation of any long-lasting relationship. Use this time to communicate transparently, deepen relationships with your donors, and reaffirm the impact of their contributions. Donors want to support you, even in difficult times.
Find Direction in What You Can Control: Focus on your mission, your team, and your community. These are the aspects you can directly influence, no matter the state of the economy. What you are doing matters and it has an invaluable impact on the lives of those you serve.
The strategies above are vital, but there's one factor that trumps them all: believing in your mission. As challenging as economic downturns are for nonprofits, the consequences are far harsher for the communities and individuals they serve. This is why conviction in the transformative power of your mission is crucial. It serves as the fuel to keep going despite the odds. Conviction becomes the North Star that keeps your organization and your mission moving forward.
While the specter of a potential recession looms, it's worth remembering that many nonprofits have successfully navigated these waters before. The power to do so lies in strategic planning, prudent resource allocation, transparent communication, focusing on what you can control, and above all, holding fast to the conviction that your mission is changing lives for the better.
Stay strong, keep your mission at heart, and let's navigate these stormy economic waters together. The communities we serve need us now more than ever.
