In a down economy, organizations and small nonprofits face significant challenges in securing the financial resources needed for their work; one of which, comes from donors. In 2021, 59% of donors felt more cautious about giving. In 2022, this figure rose to 63%, primarily due to pessimistic outlooks about the economy, via a report by Dunham + Company.
As of April 2023, the rate of economic growth is expected to decline from 3.4% in 2022 to 2.8% in 2023. For advanced economies, this rather slow growth drops from 2.7% in 2022 to 1.3% in 2023, according to the International Monetary Fund.
In short, organizations and nonprofits have every right to feel a looming sense of dread regarding a recession, as financial resources, as well as the longevity of their respective businesses become uncertain. Fortunately, innovative fundraising strategies can help to overcome obstacles caused by a down economy. Here are a few to consider.
Diversify Nonprofit Funding Sources
Diversifying funding sources is a crucial strategy for nonprofit organizations, especially during an economic downturn. Relying solely on a single source of funding, like government grants or a primary donor, can leave an organization vulnerable to financial instability if that source becomes unavailable. By exploring different avenues for funding, small nonprofits can mitigate risk and increase their chances of securing the financial support they need. Consider these and learn more about implementation.
- Individual Giving
- Legacy Giving
- In-Kind Giving
- Grants
- Donor Advised Funds
Leverage Digital Platforms for Small Nonprofit Efficiency
Love it or hate it, digital platforms like social media are here to stay, though they can be quite the goldmine when it comes to fundraising opportunities. This is because online platforms allow small nonprofits and organizations to connect with a wider audience, engage potential donors, and maximize fundraising efforts. Below are a few examples.
- Social media platforms
- Share compelling stories, impactful visuals, and updates
- Utilize targeted advertising options
- Engage with followers and the community
- Online giving portals
- Create customized donation pages
- Promote brand, story, and mission
- Options for one-time or recurring donations
- Crowdfunding platforms
- Create campaigns highlighting specific projects
- Set fundraising goals
- Offer incentives or rewards to encourage contributions
Collaborate and Pool Resources with Small Nonprofits
Collaborating with other organizations allows small nonprofits to leverage shared strengths and resources, which will likely lead to increased efficiency. By joining forces, both parties can tap into a broader network of supporters and reach a larger audience than they would individually. This expanded reach can help generate more donations and raise awareness for their respective causes. Here are a few ideas for effective collaboration and pooling of resources.
- Joint fundraising campaigns
- Create campaigns that highlight a collective impact
- Combine resources and promotional efforts
- Partnering with organizations that have similar missions is ideal
- Joint events
- Shared costs and logistics
- Diverse experience for attendees
- Examples: Charity galas, benefit concerts, and community fairs
- Shared resources
- Staff and volunteers
- Physical space: office, staging, event
- In-Kind donations for special programs and outreach
Emphasize Your Nonprofit Value and Impact
As mentioned earlier, potential donors have become more cautious regarding charitable contributions. To overcome this challenge, nonprofits must emphasize the value and impact of their work to inspire potential donors to contribute. Clear and effective communication is essential, as well as the following:
- Sharing success stories, testimonials, and examples of the organization’s impact
- Providing transparent information about how donations are utilized
- Articulating the organization’s mission and the problems it aims to solve
- Positioning said organization as an authority and as the answer
- Utilizing visual aids: infographics, video clips, and/or interactive presentations
- Presenting data, statistics, and before-and-after scenarios
- Providing regular updates on the nonprofit’s progress and achievements
Especially during a challenging economy, your fundraising plan needs to be well organized. Eleo can help! We offer an array of donor management software features so you can retain your existing donors and acquire new supporters more effectively. Utilize tools like our Donor Database & Contact Management (CRM), web forms, and donation pages, or explore , task, events and volunteer management!
