Over the years, I’ve had the opportunity to work with nonprofits in crisis. These are challenging times when the powerful mission of an organization runs into the financial realities of delivering that mission.
While every nonprofit is a little different in how it funds its activities, there are some things I’ve learned while walking side by side with staff and volunteers during a financial crisis.
A nonprofit in crisis is looking for revenue wherever they can find it, be it from municipalities, major funders, collaborative partners and others. It’s easy to dismiss the relatively small donations that may come from a direct mail campaign or other fundraising effort, but a strong annual campaign process provides not only additional revenue to help offset other losses, but it also energizes your nonprofit in a number of critical ways.
- A nonprofit in crisis usually has staff morale issues. A strong annual campaign process can give staff and volunteers a much-needed win! Everyone can help make a difference, which is a powerful motivator.
- All nonprofits need strong relationships with donors. Continuing to do the work of annual fundraising helps to build and nurture relationships for a stronger future.
- More than ever, a crisis points out the need for a nonprofit to communicate. An annual campaign process, or other direct fundraising appeal, creates the opportunity to share their story, their mission, their impact on the community and ask for support. Asking key staff and board members to talk with community leaders and donors. It also gives them a chance to clarify any misunderstandings and help the community understand why the nonprofit needs their help to sustain the future.
I hope that your organization never finds itself in a financial crisis, but if you do, I’d encourage you not to give up on the fundamentals. When the conversation is all about what to cut, knowing what not to stop might make all the difference.
