Here we go again. The phone’s ringing, the email inbox dinging as colleagues attempt to figure out what to do in a world that more than ever seems to be falling apart.

Over Agitator’s 15 years our readers have witnessed a litany of financial meltdowns (2008), pandemic disasters (2020) and now in 2022 inflation coupled with the ultimate threat of nuclear war over Ukraine; so, there’s little need for background on the various causes of worry and distress in Fundraisingland.

The bottom-line fundraising question is: What’s the best course of action as we face the final three quarters of the fundraising year.

In a moment I’ll share The Agitator’s 7 Survival Tips for 2022, but first a few observations about inflation and war and their possible effects on fundraising.

Regardless of where you feel the issues of inflation and war fit on the spectrum– ranging from “serious” to “disastrous” –one factor is certain: everyone is experiencing some sense of insecurity and the sinking feeling “I have no control” over what’s going on and what’s going to happen.

It was just two years ago we witnessed a similar outbreak of loss of personal agency with the outbreak of Coronavirus Pandemic. Toilet paper was hoarded.  Gloom and doom prediction about giving was the initial reaction, until reality proved otherwise.

So, what are we facing today as inflation spikes? As the dual horrors of war and valor emerge in Ukraine and the shadow of nuclear war looms on the horizon?  Here are some thoughts and questions, but no predictions of what fundraisers face.

Effect of War on Donors

Apart from the sheer uncertainty and sometimes outright terror triggered in most donors (remember: a substantial number of today’s older donors, vividly remember the scenes of post-World War II Europe and the Pacific…the Korean War of 1950-53…the Cuban Missile Crisis of 1962…Vietnam, 1955-1975…and of course Afghanistan that just ended this August) the existence or threat of war does not spell and end or probably even a major diminution of giving.

Often, instead of triggering giving paralysis, a new wave of generosity and donor involvement are unleashed.  It’s wise to remember in the 1960’s and early ‘70s the United States—a nation then as highly polarized as today by civil rights, voting rights, women’s rights, the rising environmental movement and the Vietnam War—saw the founding and rise of dozens of household names in nonprofit organizations. Common Cause…WWF…Environmental Defense Fund… NOW…NARAL… Greenpeace… Amnesty International to name a few.

Even within these early weeks of the Ukrainian war we see a remarkable spike in humanitarian generosity and, so far, we’ve received no reports of significant fall-off of contributions to nonprofits with no mission relationship to war or humanitarian issues. [We’ll keep you posted as these trends as they become clearer over time.]

All of this is not to say there aren’t major differences between the current Ukraine/Russia/NATO/US situation and those crises of the past. I have no idea what our years-long and pre-Ukraine state of apathy and war weariness may mean.

Here in the States, many have become numb to mass shooting in our schools and malls; will the same eventually become true for Ukraine? The wall-to-wall cable news coverage of blown-up buildings and civilian carnage could very well both desensitize, and even bore folks.  The war and the existential threat to freedom may lose its meaning.  Will we soon change channels and tune in to March Madness?

This desensitization is equally attributable to social media –with its reduced attention spans and premium on self-absorption—and to the massive sense of weariness brought on by Afghanistan and Covid.

In short, as the pundits say, “We’re in new territory,”, so it’s difficult to predict what the war means for fundraising.  Uncertainty and confusion are always enemies to giving.  Anger and fear are often lubricants. The one constant—significant numbers of humans always care about other humans.

Personally, given my 80 years watching and experiencing the goodness of humanity eventually triumph I’m quite optimistic. No wonder I’m not a cable news pundit.

Inflation’s Impact on Donors

Fortunately, we know a lot more about inflation and its effects on fundraising.  So, here’s a quick distillation some general rules –realizing of course there are always some exceptions and nuances:

• Higher living expenses find older donors, many on fixed incomes, struggling to make ends meet.
• This means many donors are less likely to give as regularly or as much to charities –or at least to fewer charities.
• Paradoxically, the financial needs of many charities go up at the very time when donations may be declining.
• However, there is this silver lining: wealthy donors often become wealthier.
• This means Inflation generates the potential for more capital gain and opportunities for larger gifts of assets. including complex instruments.
• Donors understand inflation, and wealthier donors capable of increasing their gifts will do so when you make your case with clarity and urgency.

Everyone reading this knows there is no perfect time –with or without war or inflation–to raiser money. Hopefully, everyone also knows the inexorable fact that whether times are good or bad donors respond with dedication, generosity and even a sense of sacrifice when you connect your mission with their individual sense of self and identity.

 Here are The Agitator’s 7 Survival Tips for 2022. 

Tip #1.  Don’t Whine.  The situation is what it is.  You can cry all you want about the oil companies, the supply chain, the stupidity of politicians and the monstrous, inhuman maniac Putin.  But, hey, you’re not being paid as a pundit.  You’re a fundraiser.  Get a grip.  Remain calm.  Set out a pro-active plan and execute it  — NOW.

Tip #2. Re-Project and Take it Upstairs.  Denial and lack of planning got our world in trouble, and it’ll do the same to your organization.  So, face reality and let management know you’re probably not (or probably are)  going to make the numbers for 2022.  The reality is that giving for many organizations may very well drop like a stone in a complex climate like this.  So, don’t go whistling past the graveyard.  Re-project.  Get real.

Tip #3.  Advance the timetable for your year-end campaigns .  Don’t assume that all this bad news will blow over by the time you’re slated to launch your year-end appeals in November.  It most likely won’t.  But most organizations will follow their business-as-usual patterns and do the same thing they’ve been doing for years.

This is where you can benefit from quick moves and flexibility.  Go to your donors now – tell them why the need is so great especially now in light of the current climate.   If you’re an advocacy organization explain why it’s important to get ready –right now—for mid-term elections and possibly a new and different majority in Congress.  If you’re a human needs charity explain how many more needs, you now than you did a year ago.

And don’t forget to also tell them you know they’re probably feeling concerned and anxious. Tell them why –together – your organization and they can make a huge difference right now.

Tip #4.  Resist Your Natural Instincts.  In tough times the natural instinct is to pull back, conserve and not take chances.  Wrong.  Your job now, more than in normal times, is to weigh risk and weigh it carefully.  What is the longer-term risk of not going forward with that acquisition campaign?  What is the longer-term risk of eliminating a testing program?  You may save immediate money that can make 2022’s bottom line better, but you’re probably digging a hole for 2023, 2024 and 2025.   See Tip #2 above and discuss the implications of all this with management.

Tip #5.  Engage your core donors as you never have before.   Your best donors are your best hope for sustaining your income in the months ahead.  They will understand your predicament, and historically have increased their giving during rough times.  Now’s a great time to get on the phone with them or send them a letter explaining why you need them more than ever.  Believe me, they’ll respond.

Tip #6.  Do not lose the courage of your convictions.  In times like these the most successful fundraisers are those who activate their core donors, do not stray from emphasizing their organization’s fundamental purpose, and position their programs for the better times that will surely come.

Now, if ever, is the time to form a bond in this crucible of difficult, unknowable times between your donors and your organization.  Get rid of the old formulaic appeals.  Be clear with your donors about what will happen if money isn’t raised. Be specific about alternative ways your donors can help – if not in a single amount, then in installments, if not with a gift of securities, then perhaps with a paid-up life insurance policy.  Now, if ever, is the time to challenge your donors to come up with answers that will help advance your mutual mission in tough times.

Tip #7.  Don’t expect that the “good old days” will ever return.  They won’t.  In fact, the ‘good old days’ have been going downhill for some time.  The current state of affairs will only accelerate the decline.   So, seize the opportunity inherent in all this turmoil and re-think, re-design and re-invigorate your fundraising efforts and programs.

Opportunity knocks.

Roger

P.S.  Now if ever is the time to seek suggestions and information from your donors.  I ever you needed to know more about them it’s now.

Beginning on Wednesday with a post by Kevin on a great way to gain vital information by asking supporters about themselves, we’ll devote the next few weeks to suggesting ways to bring donors closer in the difficult days ahead.