The Key to Surviving 2020 for Nonprofits - ASK!
As the pandemic continues to drag on through the summer with promises for continued economic and social disruptions into the fall and winter, more and more nonprofits may wonder how they can thrive or even survive the rest of 2020 and into 2021. I have a one-word answer:
ASK!
The Sobering Facts
Recent data shows that giving decreased by 6% during the second quarter of 2020. Gross domestic product fell by a record annualized rate of 33% during that same time period and has not fully recovering halfway into the third quarter. Smart money would bet that giving will continue to decrease, likely through the end of the year.
Recently published projections of the impact of the current recession on nonprofits range from 7% to 40% of nonprofits nationally closing their doors, in addition to the 4% that naturally fail each year.
A recent Johns Hopkins study estimated that 13% of nonprofit employees nationally had already lost their jobs; as nonprofits exhaust their Paycheck Protection Program funds, that number will likely increase. Many more nonprofit employees have experienced short- or long-term furloughs.
And a survey from La Piana Consulting found that 25% of social service agencies have considered merging to escape their financial woes.
How can you assure that your nonprofit falls in the 60% that emerges from the recession intact? ASK!!
Silver Linings
Now for some glimmers of hope.
Gifts of less than $250 increased during the second quarter of 2020. That shows me that people want to make a difference in their communities and on the issues that mean the most to them.
How to you encourage people to give to your organization? You guessed it: ASK!
For nonprofits located in the Quad Cities, more good news. Labor market analytics firm Emsi ranked the Quad Cities as the country’s 3rd most diversified metropolitan economy. That means we have the range of industries, depth, and nimbleness to overcome turbulent times like these and emerge even stronger. If we play our cards right, we should recover from the current economic woes faster than other communities. Whew!
But while the economy works to recover, how can your nonprofit ensure its recovery? Yup! ASK!
History verifies this advice. Organizations who communicated with their donors during the 2008 recession and asked donors to make gifts rebounded more quickly than those who did not. So, while you may not see an immediate gift from the donors you ask today, keeping them engaged in your mission and informed of your organization will prepare them to make a gift when they have the means and comfort to do so. Remember, donors face the same personal economic uncertainty that your organization does. They worry about layoffs, increasing costs, getting seriously ill, or slumping retirement earnings.
How to Ask for Gifts During Economic Challenges
So how can you ask for gifts during a recession or pandemic or whatever other “fun” 2020 has in store for us? To paraphrase Aaron Burr in Hamilton, “Ponder less, ask more.”
Keep current donors engaged in your mission and programs. Communicate frequently and openly about your challenges, successes, and how the current reality impacts your clients.
Stay client focused by talking about how the pandemic and recession impacts your ability to meet their needs. If you had to cut staff, keep the story going to include that the three staff positions you cut means that you cannot serve 100 people who rely on your services. While they may feel bad for the three unemployed staff members, their real passion lies in how you can or cannot fulfill your mission.
Listen. Ask donors how the pandemic and recession have impacted their lives and really listen to their answers. They need some TLC right now too; when you genuinely care about them as individuals, they will return that care to you and your organization when they can.
Ask often and through multiple channels. Still reach out and ask major donors face-to-face (or video camera-to-video camera) to keep it personal, but also send letters, emails, and post your needs on social media to cast a wider net. You never know which platform will reach which person or when they may feel generous or secure enough to make a gift. Instead of relying on your year-end appeal as your sole ask for the year, aim for 4-6 multi-channel, broad-based appeals.
ASK! That seems intuitive, but many appeals I read never come right out and ask for a gift. Be specific. Use the words “Will you please make a gift of…” with a specific dollar amount and a specific project. Rather than leaving donors guessing what you need, spell it out.
Keep donors engaged, especially new donors. Send thank you letters promptly and continue to engage new donors in your mission. Try something more personal like a handwritten note or a phone call from the executive director, board member or volunteer to learn more about them. People crave personal connections right now; give it to them and you may find a friend for life! And keep engaging them throughout the year, not just when you need money. Try to reach out to major donors monthly, mid-level donors quarterly, and smaller dollar donors at least semi-annually.
Now is not the time to hide under a barrel, wishing away the world and its woes. Your clients rely on your nonprofit. Instead, shout from the rooftops and regularly engage with donors ready, willing, and able to invest in them and you.
