Monday, June 30, 2008
Donors
What donor pool do you find has been most impacted by today's economy? A large number of organizations are feeling the crunch from smaller, individual donors. Has your organization experienced the same? Do you feel comfortable with the measures you (and your organization) has put in place to keep this group vested and giving?
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5 comments:
I am interested to hear about the impact on 'individual giving'. I am a part of 2 non-profits, and the results can be seen within these. The first is a large Medical Center. Individual giving has been pursued, but isn't very impressive. This is where people will stop giving if they are feeling the crunch. The second is a church, Christ Redeemer Church, in Hanover, New Hampshire. Interestingly, we are having a record year from a giving perspective. I think the tough economic environment has helped people to think twice about their resources and decide what is truly important. It can also be seen in how people spend their time. Not many people are interested in spending a lot of time volunteering with a non-profit if they don't feel it is worthwhile. This again, can be quickly seen comparing the Med Center to our church. So my answer? It really depends on the non-profit and its mission and vision. That is key to getting and keeping people engaged.
I've noticed this having an impact in all areas of our fundraising. Certainly small donor contributions have dropped off, but many foundations we rely on for support have had their investment portfolios shrink enough to scale down their giving this year. The same goes with Major Donors. Although they're better equipped to ride out economic troubles personally, it seems part of that solution for many is a reduction in their philanthropic giving.
I do most of my work in higher education. As you may or may not know, colleges and universities are highly dependent on day-to-day cash flow. Most private institutions will feel the pinch because they can't simply raise tuition. On the other hand they have to invest in their infrastructure to attract incoming students. As a result I think we'll see an increased dependency on outside financing like bonds where rates are still low. Or perhaps just a general cut back across the board.
Tamara,
This is an excellent topic. It is always great to receive the perspective of others in the field. Although our organization continues to grow in all areas, a sense of great concern regarding the economy resonates throughout the organization. This has caused us to become even more conscious in our stewarding of donor funds entrusted to us. Fortunately, we have been blessed to have a great deal of diversity in our supporter pool and have not seen a falloff of support.
Here's some market research from the UK that provides some insight:
'The proportion of adults in Britain who donate more than £5 a year to charity has dropped to its lowest level in three years, a survey has revealed.'
http://www.thirdsector.co.uk/News/FundraisingBulletin/822418/Levels-people-donating-5-year-three-year-low/9124AE1D719B0AE087A06E22D16A8BE6/?DCMP=EMC-FundraisingBulletin
I think the economic climate might not be the whole story here, since many of the supporters that give smaller donations are very elderly and their numbers are in decline - because they are dying. This, in itself, presents many UK charities with an enormous challenge.
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