The Headwinds
Turmoil and uncertainty leave nonprofit volunteers and staff at a loss. Should we launch our campaign? Should we pause our campaign? What about our annual fund? Where do we go from here where “here” keeps shifting?
Turns out, there is much we can do to keep moving our fundraising – and our mission – forward.
We have multiple issues or headwinds, if you will, that we're facing.
Political Climate
No matter which side of the aisle you’re on, it’s turbulent in Washington right now. I ended my previous blog with “buckle up” and that advice remains unchanged. But with a political climate like this, I think it’s more important than ever to be aware of just where your prospects and your donors are on that spectrum.
I'm constantly surprised at people that I thought would be lined up on one side are actually lined up on the other. While it's not your job as a fundraiser (or our job as consultants) to take a side, there's power in knowing just where your donors come from and their perspective.
If these are your closest donors, you should already know this. But if you don’t, maybe a little research (both Google and wealth screen information if you have it) will give you some clues as to where they might be on the political spectrum.
Economic Climate
Then we've got this interesting economic uncertainty gripping the stock market and potentially affecting businesses across the country.
One of those axioms we talk about is “more personal, more universal.” If you’re feeling uncertain of what to think or do, probably that prospect sitting on the other side of the table from you is feeling the same thing. Acknowledge it. Allow space for this conversation and for your prospective donor to share their concerns about this particular headwind.
Shifting Donor Behavior
The third thing to be aware of is the shift in the donor behavior happening over the last several years. Across the board, we’re seeing a decline in the number of donors, but often an increase in dollars raised as larger gifts come from a smaller donor set.
In addition, many donors are supporting people in need directly through platforms like GoFundMe page or just finding somebody in need and paying their rent or their light bill. While none of that generosity is reflected in Giving USA data, it may be a way your donors have shifted their donations.
What Stays the Same
Each of the organizations we work with have amazing missions. The work they are doing is extremely important. It was important yesterday and it still is today, regardless of what’s in the news cycle. The need is still there.
As nonprofit leaders, we need to be open about considering new funding streams. Maybe state or federal funding will still come, but in different ways or with different expectations. Maybe the headwinds will encourage donors – especially major donors – to strengthen their philanthropy. We need to be smart and strategic as to how we get these programs funded.
Shifting the Conversation
While it can be helpful to take the time to listen to a donor’s concerns about the economic and political headwinds, it’s important to shift the conversation.
Here’s the interesting thing that happens: once you move the conversation from the national level to the local level, people stop thinking about problems and start thinking about solutions. Suddenly, they go from helpless to engaged, because here is something they can do.
While there might be a lot of debate about the effects of a policy or bill moving through Congress, there is no debate about feeding hungry people, keeping kids safe, taking good care of our seniors or comforting those in need. Regardless of why the economy takes a downturn, recessions hit the most vulnerable first.
We have to shift our mindsets – and the conversation – from scarcity to abundance.
Scarcity vs Abundance
We’re all familiar with the idea of a scarcity mindset and an abundance mindset. In fact, you can probably bring someone to mind who is almost always in an optimistic, abundant frame of mind and others who are always quite certain the glass is half-empty.
Times of uncertainty can create a scarcity mindset in even the most optimistic person. That scarcity mindset keeps us (as professionals, volunteers and donors) from finding new solutions and broadening the conversation. Scarcity hijacks our creativity and our courage.
Rediscovering Abundance
During the COVID pandemic, many nonprofits showed up in new ways for those they serve. Those that worked to make a positive impact found that donors were there to help.
Scarcity can leave you paralyzed. But by taking action, you break out of that paralysis and move from scarcity to strategy.
We’ve talked a lot about the topic of “Who’s in your tent?” The idea in brief is that your most loyal and generous donors – your Top 20 and Next 30 – are in your tent and around your campfire.
These are the people who already believe in your mission and like how you deliver on it. They don’t need to be convinced of your value as a nonprofit. But they do need to hear from you.
If you don’t already have a list like this, develop it. To that list you might add people of influence in your community or in your organization such as former board chairs. When you know who’s in your tent, you realize that you have more resources than you think. Conversations with these people may unlock new generosity – both of funding and connections.
Don't let a scarcity mindset paralyze your fundraising activity. Instead, tune into a strategy of abundance.
It's OK to Ask
Reach out to those in your tent. Ask them how they are doing. And when they ask about how you're doing, bring your case to life for them in a new way. Where are you pivoting? What’s the unexpected funding gap? Who needs your help more than ever? Put a face to the case and show why the need is urgent.
Interestingly, one of our higher education clients was worried they wouldn’t be able to fund two scholarships for summer internships when they lost their federal funding support. They knew that this program meant a great deal to many people… including two board members who were alumni of this internship. Suddenly, they had a strategy to try to keep this scholarship going.
Guess what? Those two donors filled the gap. Why did they do it? Because they were clearly shown the need and asked personally for their help.
Keep Your Chin Up
Plenty of times during the past few weeks, I’ve been in front of donors who have a flat screen TV with stock trading stats playing in the background. It’s not easy to make small talk when the headlines are saying the market is going down and down and down. Even I started to doubt myself. Was this the right time to ask? Maybe this should just be pure cultivation?
In other words, I got hijacked.
Thankfully, I’ve been there before and knew I needed to stick to the strategy that works.
I’m glad I did. Over the past two weeks, we’ve helped our clients secure three seven-figure commitments.
I don’t know that these donors were feeling particularly flush on that day, or confident in the value of their portfolio. But they were in the organization’s tent. They made the time to learn about the organization’s needs. They really cared, which allowed them to have a meaningful conversation and give thoughtful consideration to their giving priorities.
What we didn't do was show up in desperation. We clearly articulated what we needed and we made the ask with humility and conviction.
Your Next 30 Days
Action will keep you from being hijacked by the scarcity mindsets around you. Fill your calendar for the next month with visits to as many of the people in your tent and around your campfire as you can. Check in with them. Share where you’re at and ask for what you need.
An unintended benefit of those visits is they're going to fill your bucket too. These closest donors will help you with good questions, strong advice and reassurance that your mission matters.
Be in-person when you can, but don’t underestimate the power of letter, a video, an email or even a text. Communicate more than you normally would to stay top of mind and to remind everyone of your urgent need for support. This also applies to the rest of your donor base, but you may have to be more efficient with those donors. The conversations you have with those in your tent will help you glean the questions or concerns that you might address for your broader base of donors.
Your donors aren’t looking for you to have all the answers, but they are looking to you to develop and execute strategies to help your organization manage through whatever headwinds come your way.
A Last Word of Hope
It’s simply a fact of life that if you don't take care of yourself, if your bucket isn't full, you can't show up and talk about transformational ideas.
Most of us are attracted to our organizations because of the case, because of the mission. I encourage you to fall back in love with the mission. It probably won’t take much, but you might need to visit a program in action to remind yourself that your work is noble. Your mission matters.
I’ll say it again. Your mission matters.
This is no time to be paralyzed by scarcity. Go out and have those important conversations with the people who care. You won’t regret it.
Listen to the conversation between Bruce and Jon Simons that inspired this blog.
Strategic thinking is more than just having a plan – it's about seeing the bigger picture and positioning your organization for long-term success. This month, we'll explore how thinking strategically can transform your organization's future, providing you with practical tools for lasting impact.
