With the impending economic downturn, are you adjusting your fundraising plans—and revenue projections—accordingly? If not, you might be behind the curve.
I recently had a conversation with Jerry Linzy, partner at Panas, Linzy & Partners, to get his advice on fundraising during challenging times. As someone who has seen countless economic cycles, Jerry’s insights on maintaining strong donor relationships in rough times are invaluable.
Key Insight: It’s All About Relationships
Jerry’s core message was clear: the health of your relationships with donors is everything. If you’re just now worrying about the economic impact on fundraising, you might already be too late. Here’s why:
- Donors ask themselves key questions in tough times:
- Do I have enough to live on?
- Which charities are my friends and have treated me well?
- Which charities are making a difference?
- Do these charities align with my values?
Donors will still give during tough times, but they may give to fewer organizations. That’s why now is the time to ensure you’re one of their top priorities by strengthening those relationships.
Consequences of an Economic Recession on Major Gifts
Jerry emphasized that donors will continue to give, but strategies may shift:
- Some may give more, recognizing the heightened need.
- Some will explore new giving avenues, such as planned giving.
- Major gifts may come from alternative means, such as appreciated assets.
The key is that your mission remains important to them—and they are connected to you.
Opportunities in Challenging Times
Despite the challenges, Jerry believes this could be a time of great opportunity:
- Fewer competing campaigns.
- Donors focusing more on organizations that treat them well and make a real difference.
- You will plan and prepare more carefully, resulting in stronger campaigns.
Jerry’s advice? Don’t wait for the economy to improve. The organizations that thrive are those who understand that challenging times can bring great advantages. Keep building strong relationships, tell your story well, and be persistent in your mission.
Conclusion
The message is clear: stay close to your donors. If you’ve built strong relationships, an economic downturn won’t be as much of a threat. Now is the time to reassess your approach, keep communicating, and make sure you’re at the top of your donors’ list.
