Dr. Donald Ray, www.DrBizCoach.com
We are never ready for economic downturns no matter what kind of business we are in. Since I work with all types of businesses, I know the fear that nonprofit Board members and executives may be feeling or experiencing.
I live along the southeastern coastal region which experiences many different types of storms. They vary from very gentle rain to catastrophic hurricanes.
One fact is known, the storm will pass eventually.
The same is also true for economic storms, they too will pass.
So how do we weather the recessional storm that we are in now, as a nonprofit business?
We do this by looking at all the facts that are available within our organization and outside our organization and making an action plan. There are many businesses that actually thrive during hard economic times.
The attitude of the management, in this case the Board of Directors and the executive director, will make all the difference in how well your organization will survive. Life is how we look at all the opportunities we come face to face with and how well we handle them or let them handle us.
I tell all of my clients to have a mission statement that is so powerful that it directs the efforts of the business. In past economic hard times, I would pull out my mission statement and dust it off. I made sure anything being done in my business had the mission statement as its core purpose. This made me drop a lot of non-essential items that were taking up my time.
Your nonprofit was developed to help assist a specific cause that was not being approached by other groups. Your cause has not changed.
Do your donors know all of the causes you are involved in? They need to know.
Now is the time to take a really hard look at ourselves. Every penny we spend has to count more than any other time.
Every business wastes money especially during good economic times and rapid growth. Prior to this year, good economic times was the life many nonprofit businesses were thriving in. When times were good we don't put much energy into counting every penny, therefore a little waste creeps in. A little waste naturally happens in all businesses.
As a nonprofit you have programs that you have designed to benefit a certain group of people. Most nonprofits have numerous programs running simultaneously. I recommend that you examine these programs and make sure all of these programs match your vision and mission for your nonprofit.
If you have any programs that might be marginally beneficial you may want to cut back on your limited resources for that program or cut it out or postpone it. All businesses have to do this at this time.
One area that a nonprofit business can excel in, that for-profit businesses can't, is the use of volunteers. During tough economic times many people will volunteer their help instead of giving money. If properly managed these volunteers can become a tremendous resource for fundraising.
Volunteers must be managed just as paid employees must be managed. If the essentials of their volunteer job responsibilities are well laid out, the volunteers can greatly increase the man-hours spent on fundraising.
A Dozen Ways To Help Your Nonprofit Weather a Recession
Have a great welcome message to new donors
You need to have a strategy that welcomes a new donor and makes them feel part of your family. Make sure your first correspondence to this new donor comes to them quickly. It should be a sincere message that lets them know how important they are to your mission. Never ask for additional money in the first follow-up correspondence.
Fundraising is offering a shared relationship
Your donor wants to share in your cause otherwise they wouldn't be interested in giving their money to your nonprofit. They don't want to be sold to, they want to share in giving to a worthy cause. Make them your partner, not somebody you're selling to.
All points of communication are the same
A cardinal rule of marketing for any business is to be consistent. Any method you use to communicate to a donor (telephone, direct-mail, in person, fundraising events) needs to have the same consistent message conveyed to the donor over and over again.
Increase your fundraising efforts instead of shrinking it
All businesses need to keep from shrinking their advertising and marketing at this time. Fundraising is one area you do not want to stop, you just want to be more focused with your efforts.
Analyze your programs carefully
A lot of nonprofits have many programs running simultaneously. Now is the time to examine each one and should some of them be set aside or postponed until better economic times.
Define your “target market” donors better
The better you know the type of donor you would like to target as your partner the easier it is to find them. You could develop a list of different target markets and set a priority on the donors you will go after first.
Let donors know there's a greater need now more than ever
Donors will understand the less fortunate have more of a need now than ever before. You could use a personal story of a client who was making it until the recession came. Develop a message that times are tough for everyone but especially the less fortunate.
Develop an army of qualified volunteer fundraisers
The baby boomers cut their teeth on having causes. Target experienced baby boomers who have retired. Recruit experienced boomers with the backgrounds you are needing.
Make it personal and grab the heart of the donor
People love personal stories. Any time you can make it personal and use a testimony from a client of your great works then the donor can then feel better about partnering with you at this time.
Have a special fundraising event and cut your expenses
A great way to cut your expenses of a special fundraising event is to skip the event. Develop a direct-mail piece around the theme of cutting costs. Inform your donors that you are doing your part of cutting costs by skipping the event, therefore more of their money is being used for the client's need.
Trim the fat and cut your costs
Every organization has a little fat that they can cut out of their budget. The more you cut costs the less you have to do fundraising. Beware that you do not harm the core of your organization when you're looking for ways of cutting back on costs.
Outsource your marketing design
It is a fact that the better your marketing is designed the more effective it will be. The psychology behind marketing effectively is very fascinating but few managers and directors have time to study it. Outsourcing is one of the most cost-effective methods to get what you need without the cost of a marketing department.
The government is cutting back just like everyone else is. If your nonprofit counted on grants from the state or federal government you may be struggling more than other nonprofits.
The more you can get your board members involved in fundraising theater it may be to reach resources in the community. Most nonprofits have board members who have distinguished themselves in the community. They may be able to reach sources and open doors that the average fund raiser could never do by themselves.
The needs of your clients usually increases during tough economic times. Your nonprofit is needed more now.
Do not generalize with statements that everybody is cutting back. There are many corporations and small businesses that are thriving in this economic period. Your nonprofit organization can also be one of them.
If you surround yourself with only positive ideas, you will find ways to get ahead during a recession.
Contact Dr. Ray for a free 30-minute talk to see if he can assist you in these bad economic times.
Mailto:coach@DrBizCoach.com or call 334-793-0611 today.
http://www.DrBizCoach.com