History shows that philanthropy is resilient and is much less volatile than capital markets. Economic shifts and market unpredictability are more common than not. Some nonprofits may be tempted to question if it is appropriate to pursue high-level fundraising activity while the economy stabilizes.
National giving data supports the advice that, despite unpredictability, nonprofits should stay the course. Being agile and open to adjusting plans while continuing to move forward is the best way for nonprofits to ensure fundraising success now and in the future. While accepting the reality of many external factors beyond our control, nonprofits can continue to fundraise successfully by sustaining engagement and mov- ing forward with fundraising plans.
Here are just a few recent examples from current CCS clients of how regular, thoughtful outreach and cultivation – essential to successful fundraising – will continue to produce meaningful results, even during these unpredictable economic times:
• An animal rescue organization received a pledge for a blended cash and deferred
gift: $1,050,000 toward endowment and operations, payable over eight years.
• A youth support agency received a $2 million foundation grant, one of the largest in the organization’s history.
• A college received a $5 million challenge grant to spur additional giving before the end of the current fiscal year.
• A zoo received a $15 million gift to fund new experiences for children and families.
Recent research across all sectors of the nonprofit community reflects this reality:
• According to the latest Giving USA report, US Charitable giving increased 7% from 2019 to 2021. Philanthropy reached its highest point, with $484.85 billion in giving in 2021. Giving to the majority of nonprofit sectors also increased.
• CCS’s recent Philanthropy Pulse survey of more than 1,200 nonprofit organizations fore- casts a positive outlook on philanthropy, with nearly 60% of respondents anticipating growth in major gifts in 2023.
Interesting contrasts in market indicators are a reasonable cause for concern. Unemployment is low, but inflation is up; wages have increased, while credit card debt is rising. While describing the economy as unpredictable is a reasonable assessment, we believe unprecedented is hyperbole. It is important to remember that economic uncertainty is inevitable. Whether it is the financial crisis of 2008-09, the COVID pandemic or, most recently, the unsettling news coming from the banking sector, some organizations consider pausing fundraising during these uncertain times.
They raise concerns that donors may be slower to respond to gift requests and could be experiencing the strain of economic shifts. It may be tempting to pause fundraising and wait to see where the markets land. A clear lesson has emerged for nonprofits in the past three decades – and even more recently, since COVID – moving forward with relationship building activity despite uncertainty is critical to ensuring your organization’s financial future.
With more than 75 years of experience, CCS has partnered with organizations through the 1987 stock market crash, the 1991 recession, the September 11 attacks and coinciding dot.com crash, the Great Recession of 2008-09, and the COVID-19 pandemic. CCS’s experience weathering economic downturns is consistent: organizations that do not let external events dictate their plans prove to be much more successful than organizations that pause, delay, or outright cancel their plans.
During the Great Recession, CCS managed nearly 120 fundraising campaigns. Of those campaigns, 86% exceeded their goals, and 90% raised at least 90% of their goals. While it may be necessary to adjust plans in response to uncertainty, it is essential to stay the course.
Based on extensive experience and data from thousands of campaigns across all sectors, our analysis of the philanthropic landscape demonstrates that donors remain generous through uncertain times, and organizations that remain in communication, stay connected, listen, and pursue their plans will experience fundraising success. Donors want to give; it is up to you to stay the course. Those nonprofits that do will reap the rewards for years to come.
Learn more at CCSFundraising.com.
