Non-Profits Help Us Weather the Storm

By Lisa H. Brooks

With the media rife with analysis of the failing world economy, the non-profit sector struggles to stay positive. We are bombarded with news of entire industries going under, affecting hundreds of thousands of individuals who are poised to lose, or have already lost—everything. Businesses are finding it hard to get credit and the stock market is wiping out a generation of savings. Endowment funds are down by 30% according to the Chronicle of Philanthropy. It’s undeniable: the world is a global community, and it’s in a downward spiral. And yet, there is much to be optimistic about in the non-profit sector in America.
Ironically, Americans are at their best when circumstances are at their worst. That is when their generosity, creativity and stamina go into high gear. That is when they become the country to be envied.

I recently attended a meeting of non-profit executives representing children and family service agencies across America—The Alliance for Children and Families. They were CEO’s and Development Directors from New York and New Jersey, Michigan and Milwaukee, Los Angeles, Seattle and Denver. Here is what they reported: leaders are struggling to stay positive; staff and donors are nervous. But despite everything, donors are stepping up to the plate, as they have often done during times of crises. For many non-profits that can mean that their fundraising will hold steady, or even increase. Some of the attendees at the Alliance reported receiving large, unexpected gifts. One donor on the East Coast, for example, enclosed a check for $500,000 with a simple letter to her CEO: “I thought you might need this. Please use it where it can do the most good right now.” That donor’s previous largest gift had been $10,000.

Not everyone can do that, of course. Some donors are themselves caught up in the downward spiral. But even those who cannot give want to stay connected. That means good stewardship is called for by non-profit development staff and boards. It is important to be supportive and sympathetic to your base, even if they are not able to give this time. Don’t shut them out. Invite them to events and briefings. Good stewardship, after all, is about building life-time relationships. Many things can happen during the lifetime of a donor, including bankruptcy. Don’t be afraid to ask those who are doing well, or holding their own for larger gifts. Research has shown that donors are more generous during crises—at least to social services. The good news is one does not have to prove need. It’s all around us. There is reluctance on the part of the experts to use the term ‘Depression’ but it feels pretty similar to those waiting in line. Look at the lines snaking around the food pantries and welfare offices. Look at the unemployment figures and home foreclosures.

This may also be the best time to ask for a planned gift. One agency in New Jersey reported ten such gifts in the past week alone. People may not have the capacity today to give a large gift to their favorite charities, but may be more than willing to name yours in their will or trust.

Diversified funding base. That is the lesson of the decade for the non-profit sector. Do not rely on any one source of funding. If you have two thirds of your budget from government funding, focus on increasing your individual giving program and your endowment. Work on strengthening corporate and foundation gifts. Never rest on your budget, even if it seems balanced right now. Most of all, stay positive. Even the depression did not last forever.

Whatever is happening in our global world is temporary. We will all get through this—but a strengthened non-profit sector will help ordinary Americans weather the storm better. So, if you are a donor, be generous with your favorite charities now. If you can’t, stay connected. Volunteer. Put your favorite charity in your will. It will make a big difference.

If you would like to know more ways Non-Profits can benefit you at this time, please email Seton & Associates at nonprofitbenefits@setonlawgroup.com to schedule a meeting.

Lisa H. Brooks is a resource development and communications strategist with over twenty years experience in the Los Angeles non-profit community. Her expertise is in developing strategic and tactical programs that drive the core mission of an agency, helping it to bring in new resources. She holds a Masters in Social Work and Administration from the London School of Economics and a Masters of Fine Arts in Creative Writing from Antioch University Los Angeles. She is a member of the Resource Development Services of the Alliance for Children and Families, and is a contributing member of the Planned Giving Roundtable of Southern California.