White flag has no place in philanthropic endeavors!
The following article appeared in the November 2008 edition of the NEPA Business Journal.
Philanthropic history appears to be repeating itself. Seven years ago this September, four jetliners changed the course of American social, economic and philanthropic history. The stock market plunged and a recession ensued. Attributes such as confidence and trust all but faded from our vocabulary.
Yet, charitable giving spiraled upward, despite it all, during year-end giving season 2001. Billions of dollars were raised for relief efforts. Most of those gifts were tied to the aftermath of 9/11. As this column is being written in October 2008, the stock market continues on a daily slide and words such as bailout, meltdown and recession nearly dominate conversations and media reports.
The backdrop this time is not a terrorist attack but a Wall Street meltdown and a contentious presidential election year. Each side offers remedies, hoping to gain a lead in the long run, in the popular and electoral vote while restoring some semblance of confidence.
This time as the current giving season begins, the predicament facing our non-profit community threatens to be harder to deal with. Complications include a lingering uncertainty in the marketplace and the accompanying challenges presented to our prospective donors. Yet, research released by the AAFRC Trust for Philanthropy/Giving USA, and the Center on Philanthropy at Indiana University reminds us that “charitable giving is remarkably resilient” and that “charitable giving can be somewhat of a natural response to national or international crises.”
Thus, as history repeats itself, what courses of action should the mission-driven, accountable and efficiently run nonprofit consider in redoubling its efforts this giving season and beyond?
Begin by intensifying and strengthening your donor communications. Remember that your organization’s relationship with current, higher-end supporters is integral to your future success. Suggestions include phone calls and personal visits as compared to direct mailings which, at year-end, typically flood mail and in-boxes.
Be specific during those conversations. Outline the positive results of their commitments and investments. For example, spell out the increased number of adults and children who were fed, clothed, housed or treated.
If they contribute to a scholarship endowment, discuss the number of additional students receiving financial aid. Give concrete examples to the corporate or foundation grantor as to how the grant made a difference to your charity. Remember that on-going stewardship is an indispensable step leading to the next gift.
Next, recall that there were nearly one million public charities registered with the IRS in 2007. How is your nonprofit different? More importantly, be prepared to discuss how it is making a difference. Take the opportunity now to conduct a self- examination of your charity’s mission, strategic plan, leadership profile and marketing strategies. Don’t stall or stop the planning process until more favorable times. Never leave your board members and major donors out of those processes. Rather, give donors specific, measurable, meaningful opportunities to support and in which to volunteer.
Expand your organization’s discussion on donor relations and stewardship. Philanthropic research shows that in times of economic challenge your charity must be continually aware of the donor’s heightened demand for information on gift accountability, efficiency, accuracy and effective execution of mission. So, be fully prepared to respond.
From the fund-raising perspective, redoubling efforts includes the capacity to resist the temptation to scale back your more traditional initiatives such as annual giving, special events, electronic and print communications.
Candidly, the white flag has no place in your charity’s philanthropic endeavors! In addition, take full advantage of the year-end gift opportunity presented by the recent extension of the IRA Charitable Rollover. Your senior donors and prospects, 70 years of age and older, can contribute up to $100,000 from their IRA to nonprofits, tax- free. A targeted message to that prospect pool can reap significant benefits to your charity.
Finally and in summary, at no other time in American philanthropic history is it more important that your organization redouble efforts in areas including donor communication, stewardship, mission, strategic planning and sustainability. By doing so creatively, courageously and sensitively your charity will be better postured for the uncertain times now ahead of us.
Frank J. Pasquini has dedicated over 25 years of his career to resource development in the nonprofit community. Until most recently he served as vice president for institutional advancement at his alma mater, King’s College. He is also president of the Downtown Wilkes-Barre Business Association. As professional fund-raising counsel, he can respond to your charity’s issues. Pasquini is a member of the Association of Fundraising Professionals NEPA Chapter (www.afpnepa.org) Contact: fjpasquini@gmail.com