Philanthropy & Tough Times

Everywhere you turn there is news of the economic crisis facing the United States. Additionally the stock market last week had the biggest losing streak in its history. What does this mean for philanthropy? Will we be able to raise the needed philanthropic support for our charitable organizations?

It may surprise you to know that giving in this country has only declined once in the last 68 years. In 1987, the year of the October financial panic, giving did decline but only by 1%. Every other year, even those years with some type of financial crisis, giving has gone up. Of course there is no way to know what this latest economic upheaval will mean as the total giving in the U.S.A. is tallied for 2008.

Whatever the final accounting, this is not the time for charitable organizations to reduce their emphasis on philanthropy and fund raising. When things get tough financially, it may seem prudent to sacrifice your fundraising program and use the funds "saved" to focus only on mission and services. However you will be better served to take this opportunity to evaluate your development program for the purpose of making the program more effective rather than arbitrarily cutting back.

In the process, concentrate your efforts on individual donors at least for the immediate and foreseeable future. As you know, charitable foundations base the size and number of grants they make each year on the total net value of their invested assets. With the decline of the markets, foundations will have less in the coffers for grant making. Businesses and corporations are also feeling the financial pressures and may be less inclined to be as generous with their support.

Individual donors are the backbone of any successful development program and this remains true in bad times as well as good. You must not forget or ignore them, even if they are currently unable to give at the level either they or you would like. You may be sure that if you do not continue to cultivate your organization's donor relationships, some smart, energetic fundraising professional from another charitable organization will. Just keep on doing what you know needs to be done. It will pay off, if not today then tomorrow. And tomorrow your need for philanthropic support will be even greater!

A mentor of mine once told me something that has proven to be true no matter the circumstances. He said, "There is no bad time or no good time to raise money. You just have to work hard and get it done."

Good luck!