Fundraisers Are Like Farmers

August 19, 2013      Admin

“Don’t blame the economy” seems to be a popular mantra among some fundraisers lately. These optimists appear to believe that financially struggling households will continue to give just as much as they always have … they’ll just eat less, or forgo paying next month’s electric bill or health insurance premium. Somehow, lower disposable incomes will be overcome by clever social networking tactics.

Here’s a sample of such thinking … Charities can’t blame ‘economic climate’ for falls in income, from Civil Society Fundraising in the UK, seconded by our own US pal Jeff Brooks at Future Fundraising Now … Don’t blame the economy for faltering fundraising.

I’m not persuaded by these economic Pollyannas. Their position is akin to saying that retention rates are unaffected by death … we can simply cancel out the mortality factor by better subject lines in our email appeals. Good luck with that when the Boomers start dying off in massive numbers next decade.

Don’t get me wrong. I don’t want any fundraiser to use ‘economic downturn’ as an excuse to simply wring their hands in acquiescence or for failing to innovate or for making plain dumb decisions. And to be fair to both these articles, the authors proffer examples of mistakes in strategy and tactics that would surely compound the injury to fundraising of any charity or nonprofit that made them during a down economy (or any economy for that matter).

But still, the economy does matter. Personal financial uncertainty and insecurity does matter. Diminished disposable incomes do matter. Irrevocably lost assets do matter. Only someone who has not experienced any of these could even suggest otherwise.

I view fundraisers like farmers.

Arguably, farmers face more ‘uncontrollables’ than most fundraisers, but they persevere all the same. There can be no doubt that the weather does set limits on what is achievable by way of production in any given season. But once they get over complaining about the weather, farmers have no choice but to get on with it, and make the best of their situation. And indeed the good ones — the ones who have cultivated their soils properly — can withstand a drought far better … and rebound faster.

I’ve seen numerous studies of how the top 10% or 20% of farmers do very well year after year, thank you, while the bottom 50% barely make ends meet, or sink in debt. Another example of Pareto’s principle.

I think that’s the proper analogy for fundraisers weathering the economic doldrums.

Respect the ‘weather’. Recognize its impact on the ‘soil’ you’re cultivating. But always aim to be in the top 20% of ‘farmers’, capitalizing upon all the best practices and strategic planning you can.

Tom

 

3 responses to “Fundraisers Are Like Farmers”

  1. David Krear says:

    Couldn’t agree with you more, Tom.

    Sincerely,

    Farmer Dave
    NCPSSM
    Washington, DC

  2. Gail Perry says:

    Tom I beg to differ, and I agree with Jeff!

    I have seen “the economy” blamed for poor fundraising results, when the real reason fundraising dropped was because the fundraising budget was cut.

    Case in point: An (international relief) organization CUT their fundraising budget. Then they sent direct mail out that was clearly low quality.

    For example, the mailing label used was full of computer crap that had “junk mail” written all over it. I was astounded that it would raise any money at all.

    Then the ED innocently says to me: “Wow, we lost 1000 donors last fall because of the recession.”

    “Not so fast,” I said. “I don’t think it was the recession at all. Did you see the quality of your appeals you sent last fall?”

    I hope it was the beginning of the ED understanding the ROI of fundraising!

  3. Mitch Hinz (now UNHCR) says:

    Tom, I’ve been around as long as you and Roger (thank god not *combined* but you get the point) but have to disagree a bit. Well, actually *clarify*.

    What I have seen in the US over 20 years of work there was consistent: economic down-turns can hit MAJOR DONORS (sometimes) and CORPORATES (almost all the time) because the former usually have their wealth in portfolios, and the later, well, they are just companies (though Google seems to be doing ok ;-).

    But the majority of givers (smaller givers) are affected by decreases in EMPLOYMENT, not financial indicators. The middle class (and ‘poor’ by anyone’s standards) are more generous than the rich (we just had some new data on on again recently in the Economist) so they don’t get affected until they ACTUALLY LOSE THEIR JOB.

    Meanwhile, if you are in an NGO, your high-gift income line is probably not yet recovered from the GFC. Many have not. Others (see “sometimes” above) have raised tens of millions from MDs in the past two years.

    Just pointing out that different effects affect different folks (or is it the other way around?)

    Thanks for the good stuff, as always.

    Mitch