When the news everyday is filled with gloom and doom, many nonprofits become fearful which can lead to making strategic decisions that can cost them in the long run. Even in the best of times, there is a lot of competition for charitable dollars. So raising money during a recession requires nonprofits to increase their focus on cultivation of new donors and stewardship of those who already support their mission.

It may sound cliché but when things get tough, the tough get down to basics. The best strategies really are to get back to the basics of fundraising and talking with your donors. Nonprofits that invest energy and resources towards cultivating relationships with donors and bringing new donors into the fold during a down economy will be positioning themselves for greater success when the economy rebounds – and it will rebound.

Connecting donors to your programs and mission will ensure a steady flow of funds during any economy. Historically, individuals do not stop giving during recessionary times. They may reduce the amount or frequency of their gifts, but they will continue to contribute to causes in which they are invested emotionally. Nonprofits that really engage with their donors and educate them on their programs during this slower economic time will find the donors will stay with them, and when the economy turns around their giving will show an upswing as well. A donor makes gifts to an organization not because they see a need but because the organization has programs the donor wants to fund and they want to see positive outcomes. And while many donors like to designate their gifts to particular programs, this is a great time to let donors know the need for unrestricted gifts since those donations give a nonprofit the opportunity to put the funds where the needs are greatest.

Connecting to donors is particularly important in the current recession. In this challenging economy nonprofits must inform their donors in a consistent and compassionate way. If nonprofits do not tell the donors how they have used their gifts to fulfill their mission, they will give to another organization that is doing a good job of regularly communicating how their donations are being used.

Nonprofit organizations should continue asking for contributions, of course, but cultivation and stewardship of donors will be the key to success when talking with donors during this time, particularly donors who are unable to give at previous levels. Stewarding their gifts will show them they have value to your organization and that they are appreciated no matter what. This will be a pleasant surprise to many donors and they WILL remember the organization that treats them with appreciation and respect when their portfolios turn around and they are able to make larger gifts again. This includes those donors who have given in the past at significant levels but are unable to give now. They too will be in a position to give again when the economy rebounds.

The idea is to connect with your donors during this highly competitive time. Make sure they know who you are and what you are doing with their charitable gifts. Be open and direct with your donors but don’t appear desperate or panic-stricken. It is fine and appropriate to acknowledge that these are difficult times, but remember that people like to belong to winning groups. So share your successes and show your appreciation for their donations which enable your successes, especially in today’s world.

The most important things to remember are:

Focus on Keeping Your Current Donors
It is difficult and costly, especially today, to obtain new donors. The key to being successful in retaining current donors is thoughtful and strategic donor stewardship.

Connect with Your Donors
Now, more than ever, this is the time to connect with your existing donors and build meaningful relationships so they will continue giving in the future. Create a system to ensure you communicate on a regular basis so you stay in touch with donors.

Continue Building Awareness
Other organizations may be cutting back on advertising and marketing, including canceling special events. If you stay the course, your message will stand out even more. Your special events much be run efficiently during these times, but those nonprofits that continue to keep their awareness high will be in the best position to raise even more funds when the economy improves.

Focus on your Annual Fund
Pay attention to which segment of your annual fund donors are still giving. It may be that those who donate $ 100 or less have decided to send a lesser amount or not give at all. Focusing on the donors who give $ 100 – $ 500 is smart during this time. These donors may not be as affected by the economy as those in the lower and upper tax brackets. This group may be your bread and butter during lean times.

Retain your Staff and Board
Human resources, both staff and volunteer, are your most valuable assets. Many nonprofits are looking to cut staff positions at this time but doing so will have long-term, negative effects. Trying to raise funds with fewer people may make sense to the budget this year but the next year you may find yourself in trouble. It is impossible for one person to effectively do the work of two or three.

A better tactic is to pay attention to keeping the staff you have and make sure they are happy and will stick with you during the down times. Board members, too, can be some of your greatest assets. They are your cheerleaders who can speak with sincerity about the reasons they give of their time and treasure to serve. Board members support you financially and should be involved in the process of cultivating donors as they are the eyes, ears and voice of the organization in the greater community. They are already on board with the mission and programs so are natural advocates who can speak sincerely of their involvement and support. This peer-to-peer networking is very effective and will be reflected in the bottom line.

Remember to Say Thank You
Thanking donors is a fundraising basic, however in the hustle to get funds in the door, particularly during a downturn in giving levels, it is an easy one to let slip. When giving is down, it is especially important to thank EVERY donor in a timely manner. Each check that is written to your organization represents a thoughtful gift and warrants a prompt, personal and sincere thank you. You cannot underestimate the importance of telling donors how valuable they are to your organization, a fact that becomes even more critical when economic circumstances may affect their ability or willingness to write the next check. And the thank you’s can and should come from your board members as well.

Finally, don’t forget that you do have some control over your destiny. While the economy is beyond your influence, actions you take today are not. Good plans and strategies that are implemented now will result in positive numbers over the long term.

I hope you find this information encouraging and useful to your fundraising program.