The Chronicle of Philanthropy this week said the nation's biggest charities are forecasting a nine percent decline in giving this year - the biggest drop since the publication started tracking private donations in the early 90s. In an interview with the radio program Marketplace, publisher Stacy Palmer said it's affecting how nonprofits ask for money:
"One of the things most nonprofits are very aware of is that some people don't have jobs and they can't appeal to them, so they're focusing on the people who are affluent still and who still have money to give. They're very careful to not make a pitch to somebody who can't afford to give."
That might not be the case for most nonprofits - or if it is, it applies only to major donors, which is one circumstance in which a nonprofit may have intimate knowledge of a donor's circumstances. Most nonprofits are unlikely to know who among their supporters has a job.
In fact, the Chronicle on its website suggests as much. Apparently most of fundraising is as aggressive as ever:
"The push to be more aggressive in seeking donations continues. The biggest charities are stepping up their efforts to solicit individuals, trying to explain more clearly why they need money, focusing on donors who have stopped giving, experimenting with new methods of online fund raising, and putting more time and effort into securing planned gifts. Charities are also reorganizing their fund-raising departments, sometimes because they have been forced to lay off employees. They are encouraging fund raisers to share responsibilities and work more closely with people in different departments."
You cannot possibly know the economic circumstances of all your individual donors - though hopefully you're aware of the status of your biggest donors. And you can't stop asking for money entirely.
So what are you supposed to do?
Ask, but with four things in mind:
  1. Empathy is appropriate. Acknowledge times are hard - for everyone - right now. If a donor can't give, they'll appreciate you understand this.

  2. Show you are tightening your belt. Describe every step your organization has taken to tighten your belt and operate as efficiently as possible this year.

  3. Demonstrate that all donations count. Because you're stretching every dollar, make the point that every donation helps more than ever this year - whatever the size of the donation.

  4. Show impact. Thank your donors profusely for their past help and explain in tangible, vivid terms how their donations have made a big difference. And then do it again and again and again. Donors usually don't stop giving because they don't have money. They usually stop giving because of a surfeit of appeals and a shortage of thanks. Show donors that they are making good things happen - and give them credit for every piece of good news you have about your programs.

A last point: If you have to reorganize your fundraising department or merge departments because of downsizing - something the Chronicle suggests is prevalent - look at this as an opportunity. It's a chance to show you're focused on efficiency and it's also a great way to get rid of silos where they should not have existed (ie, between marketing and development). Tough times can hold good lessons. Let them make you a better fundraiser.