Nonprofits Not Out of the Woods Yet
Friday May 21, 2010
The good news from the 2010 Fenton Forecast: Leadership and Effectiveness Among Nonprofits* is that 80% of the respondents to this annual survey have a positive view of the performance of nonprofit organizations.
The bad news is that nearly two-thirds of survey respondents report they plan to either reduce their giving or keep it the same as last year. This is on top of already reduced giving levels for 2008 and 2009.
Donors seems to be quite cautious about their charitable giving for the moment and into the near future. Giving will decrease or remain static for 2010, even among those with higher incomes.
Among those donors who plan to decrease giving, 56% say they will cut their donations by 23% or more. Even older Americans, ages 50 and older, intend to reduce their giving the most.
Roger Craver, founder of DonorTrends, and chief blogger of The Agitator, said during these difficult times, we should focus our resources on our organization's "missionaries," "loyalists," and "lapsed donors."
I agree - it's always better to go to someone who has or had a tie to your organization. Just as in business, it's less expensive to retain donors that to recruit entirely new ones!
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