Fundraising in Sun and Rain:
Forecasts for the Nonprofit Sector
by Michelle Sedaca, Program Associate
South Africa Partners
 A staff member of a NonProfit Center tenant organization, Michelle writes this monthly column on life at the center, and the unique culture of a multi-tenant center created specifically for nonprofits.
Photo:Michelle (left) meeting with Jackie Cefola, program coordinator at the NonProfit Center
As the current economic downturn affects everything from gas prices to the job market, money is undoubtedly on the minds of many of us. And nonprofits are no exception.
In order to ensure that their nonprofit organization stays on course financially, nonprofit managers and fund-raising professionals must consider savvy strategies to maintain their income in order to continue their work.
Minimize Your Vulnerability
For many nonprofits, fundraising encompasses a range of sources. Individuals, corporations and foundations all represent a piece of the pie. During an economic downturn, funding available to nonprofits can become limited with a decrease in foundations’ investments, corporate assets and individual donors’ income.
Arlene Fortunato, president of Fortunato & Associates and a Third Sector New England board member, explains that larger nonprofits such as hospitals and museums rarely are impacted as a result of their large net worth. However, smaller community-based organizations are vulnerable.
Fundraising Lessons Learned in the Field
Fortunato, whose Boston-based consulting company assists community-based organizations with fundraising strategies, recommends that nonprofits perform an internal assessment in which staff members evaluate their communications strategies. By clearly defining both the organization’s mission and its target audience (to whom the organization appeals), Fortunato believes that the organization will be able to strengthen its donor base.
Additionally, she discusses the importance of an organization having a plan of action if a certain fund-raising strategy needs to be halted, such as a capital campaign. Capital campaigns raise funds for a new facility. “[You need] a well thought-out plan to gear up [again],” Fortunato says.
Maintain Your Base
Once you secure donors, the ongoing work involves maintaining a positive (and profitable) relationship. According to David Riley, development director at First Literacy, an organization providing funds and technical assistance to adult literacy programs, First Literacy continues to experience stable fundraising due to its “loyal donor base.”
First Literacy’s funding depends mostly on individuals, some corporations and, to a lesser degree, foundations. To date, appeals have raised money as anticipated, and the organization’s corporate spelling bee performed even better than expected. “If you have been giving to a place for 10 years, you are less likely to cut [the money] off,” he explains.
Riley differentiates between already established donors who provide ongoing gifts to the organization, and potential donors who have never given. In his opinion, it might be more difficult to attract first-time donors in the current climate. Riley explains that the first gift is directly linked to the organization’s mission, but the second and subsequent contributions result due to the relationship between the donor and organization.
Relationship, Relationship, Relationship
As in all relationships, certain rules apply. Riley recommends the following strategies to maintain donors:
- Foster a stable relationship.
- Consider a planned giving program.
In a planned giving program, the nonprofit benefits from a long-term commitment from the donor who contributes regularly to the organization, while the individual enjoys a tax advantage. “[Planned giving programs] achieve a financial win for the donor and allow us to continue our fundraising,” he shares.
A Personal Touch
Riley explains that successful ways to sustain a donor relationship include:
- showing gratitude
- effectively demonstrating the change that the donor is helping to create
- illustrating further the additional change the donor can continue to make
Additionally, a personal touch is critical to the relationship. For instance, each thank you letter from First Literacy contains a personal note, letting donors know how special they are to the nonprofit’s work.
“If you show the change people can make in the world, they won’t abandon you,” Riley states.
Joseph Wiinikka-Lydon, manager of foundation giving for Jumpstart for Young Children, an organization dedicated to literacy for preschool children, wholeheartedly agrees. “If you work for a good cause with good people, and you have something valuable, creative and collaborative, it will pay off,” he confirms.
Looking Ahead
Ultimately, economic hardships are a natural part of the economy, Fortunato reminds us. “These financial situations are cyclical. We know that because we have lived through them,” she says, “Don’t panic.”
On June 10, nonprofits will have an opportunity to learn more about successful fundraising strategies during a presentation by Fortunato & Associates. Please contact 617.585.5484 for more information.
Keep up-to-date with Michelle’s latest columns by signing up for the TSNe-Bulletin, a monthly e-Newsletter. The TSNe-Bulletin provides tips and ideas to help you strengthen your nonprofit’s impact with and for the communities you serve.
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