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New 2016 Forecasts Expect Decreases in Charitable Giving in 2016
Cara Barrett
Raising funds for charitable organizations is, at its best, a challenge, and at its worst, like climbing Everest! Nonprofit leaders are pulled in many directions as they seek to grow and sustain, operate the business side of their organization and continue to conduct and develop programs that have measurable impact on those they serve. A tug of war in nonprofit leadership often happens between the focus on mission and the focus on money. And simply put, mission is difficult to achieve without money.
As I was preparing to write this blog today I went back to the Foundation Center to pull from an article I had seen just recently that forecasted continued growth in charitable giving in 2016. But to my dismay, instead I found a new article entitled 2016 Outlook for U.S. Giving Weakens Amid Uncertainty. I recommend that you read the article in its entirety here. At its heart the article points to decreases in giving impacted by a volatile stock market. While this is alarming news, it adds fuel to the advice to be sure your nonprofit creates a diverse funding base for times like these.
Just as families are well-advised to develop multiple streams of income to ensure financial security, today’s successful nonprofits are continually thinking of ways to diversify their funding sources. Fortunately, there are many options for nonprofits to consider to brace themselves against financial insecurities. The top five most utilized strategies for fund development are as follows.
- Grant Funding:
Conventional wisdom in the nonprofit field is to seek to raise about 30% of your budget in the form of grants. While the grant world continues to be highly competitive, nonprofits who are well-prepared for the rigors of grant seeking continue to receive grant funds to help them with general operating costs, capacity building, project-specific costs, etc. While the larger grants are typically reserved for larger nonprofits, we also have seen significant success for smaller organizations. Grant seeking continues to be a viable way to help grow and sustain a nonprofit. - Individual Donors:
Depending upon the type of nonprofit, individual donor giving can be a cornerstone for nonprofit income. The philosophy rests upon many people giving small to mid-size regular donations, theoretically decreasing the chances that all donors won’t stop giving at the same time. This continues to be a key fundraising strategy, but is not without its downside. Effectively running an individual donor program can be very time consuming and can become expensive. At its core, this type of fundraising must include well developed relationship building and well-timed, heartfelt gratitude to the donors. - Online giving:
At a minimum, nonprofits should include a giving button on their websites. For those who can afford online marketing help to increase online giving, the rewards can be very significant. One only need to look at the success of crowdfunding campaigns and the like to see that online giving is a recognized part of nonprofit fundraising. You might also take a look at sites like Give Back Nation for additional options for online giving. - Social Enterprise:
It is very exciting to see the myriad of ways nonprofits are raising funds today through social enterprise. Leaders are thinking way past bingo and thrift shops. Some of my favorite social enterprise examples include the development of the Winter the Dolphin movie (and all of its ancillary products) by Clearwater Marine Aquarium and a recent small nonprofit, Eye Heart World, I just spoke with today whose online sales of high end bags is helping to fight sex trafficking. For more information on social enterprise check out the Social Enterprise Alliance. - Planned giving:
Opportunities for planned giving have expanded significantly over the last decade. New products have been developed to help individuals give in increasingly meaningful ways. While developing a planned giving program is not typically within reach of very small nonprofits, mid to large organizations can often afford giving programs in partnership with organizations such as Give Back Nation mentioned above. A good source for this information across the country is Give Back Nation. - Fundraising Events:
Nonprofit events have taken on a life of their own! Virtually every weekend you can find a fun nonprofit event to attend. While banquets, galas and golf tournaments remain favorites, nonprofits are continually inventing new experiences. Recently I attended a gala with The One Roof Initiative in which I had the opportunity to participate in a drum circle, paint with a new friend and dance a waltz to the theme from The Titanic with a new friend in a wheelchair. This was not your run-of-the-mill gala! It is critical to analyze your fundraising events beyond simple gross and net revenues. To analyze for “true” ROI, you must also consider potential negative impact of the event on your staff and your volunteers along with determining the new friends you attracted. Events are very hard work for already pressed nonprofit staff members. As a rule of thumb, two bigger fundraising events per year are plenty for a nonprofit. (If you’d like to learn more about how to evaluate for true ROI, send me an email at jule@pathwaystogrowth.us).
Question: What are some of the ways your nonprofit is working to diversify its income streams?
Every child has a hero, someone who inspired vision in them, someone they aspired to be like. For me, as a little girl, I had two heroes- Benjamin Franklin and Dr. Seuss. Although from different times and disciplines, they both taught me invaluable lessons I still use today. Despite their different fields of expertise - Franklin in politics, science, and invention, and Dr. Seuss in children's literature - they both left a lasting legacy that continues to shape and inspire generations. Both were unique influential philosophers who found purpose and fulfillment through connections to others. From the wisdom of “Poor Richards Almanac” to the lyrical ingenuity of “Oh The Places You Will Go,” both Franklin and Seuss were storytellers with a voice for change. Their words made me think and encouraged me to dream. At eight years old, I knew I also wanted to write and tell stories that would encourage people and change the world. It's fascinating how childhood aspirations can pave the way for unexpected yet fulfilling careers. Little did I know that this passion would one day lead me to a successful career in grant writing. Inspired by the works of two literary giants, I found myself drawn to a path of advocacy and change. So, after a successful 25-year career in non-profit Executive leadership, I was given the opportunity to join the Pathways to Growth Team as a grant writer. Pathways has been a leader in the non-profit consulting arena for many years so to be able to work with the best of the best has been a privilege! To me, grant writing is a harmonious blend of science and art, where data-driven methodology meets creative expression to produce persuasive and impactful proposals. Sounds impressive, right? So, what did I learn about grant writing from these two? For that, I will start with good ole Ben.
Securing a grant represents a monumental achievement for any entity or individual striving to confront societal challenges or propel constructive transformations forward. It signifies a crucial step toward making a tangible impact and fostering positive change within communities. While obtaining a grant marks a substantial milestone, the true impact transcends mere acquisition; it hinges on the adept execution of the proposed program or project. Effectively implementing the envisioned initiatives is where the transformative potential of the grant truly manifests. Maximizing the impact of a grant necessitates a meticulous approach, characterized by thorough planning, strategic execution, and continuous evaluation. This comprehensive process ensures that resources are allocated judiciously and utilized optimally, ultimately leading to the attainment of desired outcomes. Below are eight fundamental strategies essential for the effective implementation of programs, designed to unlock the full potential and maximize the impact of grants. These strategies serve as guiding principles, shaping the trajectory of grant-funded initiatives toward meaningful and sustainable outcomes.
It is a very competitive grant world out there, so be sure you understand the vital link between board giving and grant success.
As the leader of your nonprofit, your leadership abilities are crucial for the welfare of your staff, volunteers, and the community you serve.
To quote my Aunt Babe (age 93), “It’s a poor dog that won’t wag its own tail.” This gives you permission to share positive observations about yourself.
his article is a continuation of a blog we posted two weeks ago on efficient productivity in grant seeking. Here is a recap of the first five steps: 1) Manage your Energy, Not Your Time, 2) Be Your Own Coach or Find A Trusted Coach, 3) Read About Productivity, 4) Set Goals. Let’s continue with #5…
Some of us are wired to organize and seek out efficient productivity. Some of us are not, but no judgment here! The good news is that regardless of how easy it is for you to stay organized and have efficient productivity on a daily basis, there are some tried and true steps that will help you stay on track and meet your grant goals.
I did not expect to receive lessons in grant seeking while on holiday break this year with my husband.
Writing the narrative takes the bulk of the time you spend preparing a grant proposal, just like mixing the cookie ingredients. However, grant budgets are just as important; they are like recipes when you are baking.
Why keep #grant-seeking as a priority during COVID-19 when there are so many urgent needs? Take a breath, take a minute, and remember – your mission depends on it.
#PathwaysToGrowth
