We’re currently in the midst of what’s being called by experts “The Economic Crisis,” and for the non-profit sectorit’s “The Fiscal Crisis.” What we do know is that local and state governments are being sacked by continuous reductions. According to the Center of Budget and Policy Priorities estimates that on average states reduced 12% of their budgets for state governments in the fiscal year 2010 and are projected to reduce 13% of their budgets in the fiscal year 2011. It is expected that the Fiscal Crisis is expected to persist for a few years. Section 18A Certificate
What is this going to mean for non-profits?
Many organizations can anticipate regular cuts from government contracts and state contracts, particularly. The trimming will continue due to a variety of corporate and foundation grants as well. The budgets of some nonprofits could be reduced less than the average for the state and others by are more. Perhaps much more.
If there’s something that all non-profits can do to lessen the effect of cuts, and also generate an increase in revenue, it’s to increase the number of donors. Donor giving accounts for over 80 percent of all donations to charities in the U.S., according to Giving USA. Donor donations are generally not restricted and therefore is a viable option in many sectors. If the donor relationship is well-managed the donors (and the base of donors) could provide income-support for a long time.
The majority of non-profit organizations have only a tiny portion of their budget for income from donors, and this includes those associated with special occasions. Mot nonprofits possess a vast opportunity to make the most of the generosity of donors.
You can accomplish some easy things to get ready for the development of your donor base:
- Examine the donor base of the present
- Discussion about development of donors with the board and then get commitments
- Set goals, methods, as well as a date.
More details will be provided in future articles.
Anne Hays Egan is an consultant for organizational development for non-profit organizations. She was the publisher for the Digest of Nonprofit Management, and Tools for Nonprofits. She has taught, consulted and published extensively. She has resources, information newsletters, fund-raising strategies, outline,