For many nonprofits, 2020 and 2021 were amazing years for fundraising results. Donors were so generous that many organizations set all-time records during this time.
2022 was less stellar for many, but still a very good year by almost any standard.
But 2023…that was a tough year for most nonprofits’ fundraising.
But it wasn’t the first time the bottom has fallen out on seemingly every chart or graph when looking at your CoreStats (what Oneicity calls KPIs).
Like everything else in life, there are highs and lows in fundraising. Even if you’re not changing anything material, external factors can augment or suppress the effectiveness of your work. Like those of us who like rollercoasters, fundraisers need to be comfortable riding those waves.
In fact, Oneicity was started during an economic down point. Ask anyone, they’ll tell you that the perfect time to start an agency is in the middle of a recession. You can read one of our first blog posts about fundraising in tough times here.
It’s just a fact of life that there will be tough times for your fundraising.
Some years will be great, and other years won’t.
“But why? What causes some years to be worse than others?”
Unfortunately, there’s not always an easy, obvious reason why it’s a tough year. There are many reasons and factors that play a part in it. Economic recessions, pandemics, inflation, etc. all impact donors.
But what can you do to help your nonprofit during these leaner years?
Keep investing in Fundraising
First, keep investing in your fundraising. Yeah, we know. Surprise! A fundraising agency is advising you to…keep fundraising.
But it’s still true.
Cutting back on expenses seems like the first and obvious step to take, right? Less money coming in the door means less funds should be going out.
But, cutting back on fundraising will only hurt your nonprofit more.
It’s very similar to being sick or not feeling well, so you don’t eat cause you’re not hungry. Without the energy from food and fluids, your body can’t fight off the illness. What seems like the right thing is actually the worst thing.
There will never be a year where fundraising for your organization isn’t important. During those high-water mark years of 2020 and 2021, there were organizations who didn’t experience record-setting results. And in every one that Oneicity talked with, they had one thing in common: they cut back on fundraising.
Fundraising is even more important during tough times. Is it cheap? No. But, the only thing more expensive than fundraising is not fundraising. We’ve seen organizations severely reduce or completely cut off acquisition for a fourth quarter. They quickly realize their mistake and re-invest in acquisition the next year.
Want to guess how long (on average) it took to recover?
Five years. Just from one year of cutting back.
Typical disclaimer: every organization is different. No one is doing what you do, where you do your work, in the same way you operate.
The point is, you’ll save a few dollars by cutting back, but in the long run it will cost you a lot more.
Stick with what You Know
Now isn’t the time to test crazy, out there ideas that might or might not be successful.
That moonshot that if it pays off will be talked about in case studies around the country for years to come? That crazy idea that probably won’t work, but the potential is so great it’s hard to ignore? Save those for later.
Instead, invest the strategies that have historically worked.
Do what you know your donors will respond to.
That might be the boring, old direct mail program your social media expert keeps telling you to wind down (even though it’s responsible for 58% of your fundraising income). Or maybe it’s that proposal to Major Donors that is so time intensive to create, but generates significant results.
You know what those are. And that’s where you should spend your budget in tough times.
Remember, if you aren’t talking to your donors…someone else is.
Build Relationships
Even in hard times, you have to keep building your donor relationships. We say “It’s all about relationships” a lot. And not just because it rolls of the tongue really well.
We say it because it’s true. The donors who stay with you through tough times are your people. Don’t ignore those relationships. Foster them.
Reach out and talk to them.
If it’s a tough time for your nonprofit, it may be a tough time for them as well.
Ask them how you can serve them. Maybe it’s being a safe space to listen to the fears they’re experiencing in their business. It could be praying for the bumps and bruising they’re experiencing in their life during this time.
Whatever it looks like, showing your donors that you care about them as people—and not just as ATMs—is the right thing to do from a relational and fundraising standpoint.
Trust the Process
Lastly, trust the process. We use a farming analogy often for this (though to be candid, we don’t have green thumbs).
A farmer can make a plan for a field: plant the seeds at this time of year. Then water and fertilize it on this schedule. Pull the weeds at this time. Do everything they need to do for a successful crop yield.
But no farmer can control the results. They have to work hard to develop and follow the plan and trust God for the rain and results.
Fundraising usually involves less dirt and fertilizer, but otherwise it’s the same thing.
Don’t do nothing, just focus on what you can control—and know who controls the rest.
You follow the plan and focus on the things you can control. And you trust God, pray, and leave the outcome to Him.
If you have questions about weathering this tough fundraising time (or you have tips on not killing our houseplants,) reach out! You can email us at: howdy@oneicity.com
