There is no question that our economy is in a difficult and uncertain place right now. Every day people are losing their jobs, their homes and their confidence, which makes the thought of actively fundraising in this environment as challenging as I have ever seen it.
Over the coming months, the nonprofit sector will come under enormous pressure to cut costs and manage more efficiently, in an effort to partially offset the potential decline in revenue as a result of the struggling economy. Nonprofits and their Boards will need to work even harder to maintain precious donations and will need to employ entrepreneurial techniques to survive. These words once sounded like ominous predictions of a scary future, but indeed they are the reality for most nonprofits now.
If you’ve scanned the news recently, you’re aware of the harsh statistics that the nonprofit sector will shortly face. As the Managing Partner of OAI and the Executive Director of Youth, I.N.C., I share your same fears. Forecasts have shown that if there are one million 501(c)3 organizations in existence today, there will likely be 10-20% fewer by 2010. The smaller charities with revenues fewer than one million dollars will likely be hit the hardest, as their management systems are typically not fully developed and their Boards are many times unable to cope with the additional demands of fundraising.
The bottom line is that with individual and foundation investment asset bases shrinking, and unemployment rising, there is less money available for charitable donations. |
With this all said, let me be clear about one thing – Americans are incredibly charitable people and support for nonprofits, regardless of the state of the economy, is here to stay. In fact, during distressed economic environments, history has shown that individuals tend to give more as a percentage of their asset base than during steady economic times. But, the reasoning and motivation behind individual giving during this uncertain economic climate is much more strategic and mindful. Donors are paying much closer attention to the return on investment of their contributions. The donors of 2009 want to know their money is going towards not only a worthy cause, but also towards an efficiently and strategically run organization.
Organizations that can demonstrate programmatic success paired with lower operating overhead will attract the most private funding. The competition for funds has intensified and pressure to prove to donors that your development efforts are both efficient and effective is affecting every charity.
There is still great support out there for nonprofits, but it will only be generated with an efficient, effective and professional development staff at the helm. |
As each nonprofit vies for the attention of donors through effective organizational management and influential mission-oriented programming, it may come as no surprise that an efficient, effective and professional development staff is imperative to these efforts. It may also come as no surprise that it is difficult to secure and retain development professionals with these qualities, as the demand for their services is at an all time high.
OAI has a solution to the growing demand for proven and professional development staff: outsourced development.
The need for outsourced services, from back office support to fundraising management to executive management, is on the rise. Talented nonprofit executives and Boards are more frequently utilizing these services as a way to increase productivity and lower costs, especially during this uncertain time.
As an expert in the field of outsourced development and nonprofit management, and a full service, nationally recognized outsourced management consulting firm, OAI has the tools, resources and staff to assist our clients with their every need. OAI can provide your organization with a cost-effective package of on-site or off-site services, including experienced support staff, access to sophisticated research tools, and counsel from seasoned senior professionals with decades of successful experience.
We offer immediate solutions for advanced fundraising, operational productivity and cost control management with a highly skilled team of enthusiastic professionals prepared to take on the challenge. Let our team of 30 professionals go to work for your organization.
While the thought of being a successful fundraising organization during times of economic hardship is hard to comprehend, know that it is entirely possible. The OAI team can provide a new, fresh approach to your organization’s development efforts and is ready for the challenge.
Times are tough out there, but they are not insurmountable. Discover how OAI can help you achieve your goals today. |