I just got my retirement fund statement. It was down by 20%. My statement is certainly a reflection of the overall stock market.
What does it mean for the non profit? In 2007, the stock market was hot. Consequently, we saw lots of gifts of publicly traded stock and mutual funds. In 2008, we simply don’t expect many of those kinds of gifts.
The decline in publicly traded gifts is not the end of the story. Rising gas prices and grocery prices means that people simply have less cash. The backbone of many non profits are the monthly and faithful givers. In short, giving will be squeezed. It’s difficult to predict how much at this point.
What should the non profit do? Cut expenses. Be prepared as well to determine what expenses can be cut if giving projections are not met. On the proactive side, a recent article from the Topeka Capital Journal (Non Profit Agencies Feel the Pinch, Monday, October 6, 2008) encourages non profits to look for creative ways to raise money.
Innovative fund raising projects include selling unwanted real estate, donor awareness luncheons, or pursuing more non cash donations. If you have real estate, consider whether the building is a necessity or a luxury. Generally, it is much cheaper to be a renter than an owner. Plus, the cash from the sale of the building can be used to build a capital reserve.
Donor awareness luncheons build on the power of existing donors. They can invite their peers, share the vision of the organization and push for involvement. This peer to peer fundraising makes donor acquisition dramatically easier—even in a difficult funding climate.
Finally, pursuing non cash funding remains a relatively untapped arena. Through our partner, www.idonate.com, we’ve recently seen the following gifts:
--a 49 foot yacht with a market value of $249,000;
--electrical equipment inventory worth potentially $200,000;
--restaurant equipment that had been collecting rust;
--hundreds of cars, including junk cars.
Now is the time to be making these changes—before the impact of the downturn hits in full force.
--William High is the President of the Servant Christian Community Foundation (www.servantchristian.com). Christian Foundation Grants (www.christianfoundationgrants.com) is a subscription database that provides resource to non profits looking for grants.