How will the recession change fundraising strategies

How will the recession change fundraising strategies

first_imgHow will the recession change fundraising strategies Howard Lake | 5 November 2008 | News About Howard Lake Howard Lake is a digital fundraising entrepreneur. Publisher of UK Fundraising, the world’s first web resource for professional fundraisers, since 1994. Trainer and consultant in digital fundraising. Founder of Fundraising Camp and co-founder of GoodJobs.org.uk. Researching massive growth in giving. Tagged with: credit crunch Institute of Fundraising recession Fundraising departments could shrink by up to a third by 2010 to see charities through the recession, according to Andrew Thomas of Charity Consultants.Thomas was speaking at a round table event organised by the Insight, Trusts & Statutory and Major Gifts Special Interest Groups of the Institute of Fundraising this week.Looking at historical data, Thomas said that charities generally go into recession later than other sectors. He said he was expecting severe cuts in fundraising departments during this recession because there were not sufficient cuts in the last economic downturn. “Trustees will be looking for more cost-effective fundraising,” he told delegates.Stephen Dodds of DMS felt there is a strong likelihood that donors will change their behaviour and that we should be paying close attention to the demographics of our donors. “There is a sense of unease about the financial situation,” he said. “In research donors have said they will hold back generally to see what happens, or they will not extend their giving for the same reason.”However, he said that the recession was likely to just emphasise existing trends and that we should expect to see response rates on direct mail continue to fall, and experience more difficulty getting donors to commit to a second or regular gift. “Donors increasingly see through our efforts, are more marketing savvy and cynical,” he said. Fundraisers should stay close to donors to understand how different groups will be affected and they should be able to engage with donors to prove that they understand motivations.He also thought it was about time the sector really got to grips with using the internet as a tool for communicating effectively and efficiently with donors.But maybe there isn’t so much of a problem. Jan Chisholm of Pareto Fundraising deals in data, not opinions. “We see opinion surveys saying people will cut back, charity CEOs saying they will see income drop. It’s scary that decisions are being made on the basis of these opinions,” she said. “It will be self-fulfilling prophesy: if you cut back, you won’t recruit as many donors.”She advocated investing in top data analysis to give fundraisers the best chance of understanding their donors.Conversely Stuart Sheriff had sought the opinions of trusts who generally feel that they will have less to give but anticipate the number of applications increasing significantly. They advise that charities will have to show they are planning for the recession and not just carrying on as normal and will really have to demonstrate exactly why they need the trusts’ support.  38 total views,  2 views today AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to LinkedInLinkedInShare to EmailEmailShare to WhatsAppWhatsAppShare to MessengerMessengerShare to MoreAddThis AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to LinkedInLinkedInShare to EmailEmailShare to WhatsAppWhatsAppShare to MessengerMessengerShare to MoreAddThislast_img

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