Does a Slow Economy Hurt Fundraising? (Cont'd)

Well, perhaps it was, in the end, something of a self-fulfilling prophecy. Because of that initial reservation and doubt, there apparently wasn't enough excitement generated for the CEO to feel okay about making the mental and emotional leap from relying on fundraising events (with an average of $50 to $250 or even up to $500 per person) over to the major gifts cultivation and solicitation process (where individuals would give multiple-year commitments of $5000 and over). I guess it was just too tough to make those changes in the daily schedule, and make the mental adjustment to doing prospect management. Too bad. A lot of money has been left on the table.

So what's the upshot of all this? Apparently the viewpoint persists at that nonprofit, then, that the condition of Michigan's economy is adversely affecting this organization's fundraising ability. The conversation reportedly taking place in that board and staff is that since people are in tough economic times not as many signed up as sponsors, not as many came to the events, not as many bought at the auctions, or whatever was going on.

Well, that might be the case, but, frankly, my bet is that it doesn't have anything to do with the economy. It more probably has to do with the charity's own internal motivations, predilections and viewpoints. It has to do with the inability to simply pick up the phone, make the appointment, go see the prospects, and ask the prospect for the contribution. It may have to do with lack of training, too, but it also indicates a lack of commitment to do this kind of work, time after time, day after day. That's what is needed to make significant individual gifts a regular, even dominant, part of this organization's revenue. I've done it, in good times and bad. It works just great! It brings in a ton of money. It's a simple concept; relatively easy to do.

My friend reflected that in other charities where he has worked there was often so much more work and change involved. But here he had the stage all set, the process in motion, but the change of attitude and the change of daily priorities needed was subverted by an internal attitude that "we don't believe you can actually do that." Too bad. But it has nothing at all to do with the economy. So the economy is just an excuse.

Another friend of mine from the sales and marketing arena, Jerry Holcutt, says that to those who think that way, cold-calling prospects absolutely won't work. Yet for those who engage in it with verve and vigor, it works all the time. It's a matter of perspective. Same is true for calling on donors and making major gift donors out of them.

So where does this all bring us? It brings us to the point of saying that, if you look at it from a different point of view, a slow economy is really just the absolutely perfect excuse for a nonprofit to dust off their case for support, making it more creative and compelling. It also brings us to the consideration of the ways a nonprofit needs to deliver its case for support continually, on a persistent and frequent basis, to a wide variety of donors, prospects, constituents of all kinds.

The economy doesn't affect fundraising nearly as much as attitude, perspective and action. Mostly, a down economy is an excuse people give for inaction and lack of organizational capability in fundriaing. It masks a multitude of sins, not the least of which is the nonprofit tendency to NOT invest in fundraising infrastructure so that they can go out and ask more people for money.

Somehow there seems to be this inherent and constant belief by nonprofit managers and board membersthat we can go through nonprofit life continually providing services on less capacity than we need to do the job of mission accomplishment well. We're not attuned to effective, efficient performance of mission, for some reason. Either that or these leaders have never understood what it takes to perform an organization's mission well. People in nonprofit management seem to keep making decisions that shoot themselves in the foot, and then they blame it on a "weak economy."

In reality, they don't have what it takes to go out there and ask more people for more money. They let a thousand things get in the way, and they don't invest in infrastructure and organizational capability, and then they say "Oh, the economy is so down, we can't raise any money!" Baloney.

Our thread has focused on the theme "Does a Slow Economy Hurt Fundraising?" I say the answer is NO. Not nearly as much as what we do to ourselves as nonprofit fundraisers and leaders. The economy is an escuse for donors to change charities, keep more for themselves and not respond to shoddy and poorly conceived and written pleas for money. It's an excuse for nonprofit leaders and board members to wring their hands in distress rather than investing more in fundraising infrastructure and re-building their cases for support. It's an excuse for not asking more people for more money. The slow economy is just an excuse for poor performance on the part of nonprofit organizations. They can do better.

Monday, a new theme: Charity Start-ups.