How the US Economy Downturn is Affecting Nonprofit Fundraising

The current economic downturn in the United States is beginning to have a negative impact on charities and fundraising. Most charities are bracing for a drop in donations in the coming months.

According to the Association of Fundraising Professionals the last quarter of the year, from October through December, is when most charities raise between one third and one half of their yearly monetary donations.

Some of the indications of how charities are being affected by the economy are:

National and Community Foundations – Many nonprofit organizations receive a significant portion of their budget from foundation grants. The money that the foundations have is frequently in stock market investments. The stock market has seen a decline of around forty percent in the past year and foundations have less money to give.

Food banks - Food banks are reporting they are currently feeding more people than usual and are worried that they will not have enough food to feed the needy during the holidays which is when they feed the most people. Donations of money are also down from previous years.

Homeless Shelters - Shelters are reporting that they are already housing more people than in past years. They are anticipating that when the weather turns cold they will need to help more people. Shelters will be needing more donations of money, blankets, clothing, and food and are asking for it now.

Thrift Stores – Goodwill Industries and thrift stores across the country are reporting that shoppers have increased dramatically while donations have decreased.

Often people donate to charities because they feel that other people are in situations worse than their own. With many people in the midst of a personal money crises or worried about the possibility of one occurring, donating money to charity may not be a high priority right now.

There are some things that charities and nonprofit organizations can do during tough economic times. They are:

Remember the basics of fund-raising. State your needs in a compelling way. Tell potential donors exactly what you need and what you are going to do with their donation. Let them know how they will be making a difference. Do not waste their donations or give the appearance you may be. Thank your donors as soon as you receive their help.

Those who supported you in the past, will probably support you in the future. Ask for smaller donations or ask for small monthly donations.

Examine areas where your charity can cut back. Large fund raising events, such as holiday galas, which are expensive to produce, can be scaled back or canceled. Prioritize your programs and continue with the ones that you can afford to do.

Article by Amy Passmore of DIY Fundraising. Visit www.diyfundraising.com for do-it-yourself fundraising ideas for nonprofit organizations, clubs, schools and groups.