Out with the 80/20…it is now 20/60/20!

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My colleagues at Achieve recently gave a webinar entitled Fundraising in a Tough Economy. To be honest we have had some very spirited conversation about this. It has not been so much disagreement as empassioned agreement.

Here is what we agree on: Yes, times are tight and without a doubt the turbulent market is perhaps the most volatile ever. We also agree that historically giving is one area of growth in times like this…just look at giving in 1999 and 2000. It increased despite significant market change. We also agree that history is nice but unemployment concerns were not as high then. Our final point of agreement…we have no idea what will happen.

Based on client interaction we have developed a new way to view our current economic climate: the 20/60/20 Rule. We have seen that 20% of donors are simply paralyzed. They have pulled back from everything, including giving. Annecdotally, another 20% have made no change in giving. They are financially secure and are still able to make their charitable gifts. The middle 60% are taking a measured wait and see approach. They are still giving, perhaps less in many cases.

Our advice…focus on the 60% now more than ever! Your case still matters. Those you reach still need your services and one could argue even more now than ever! Why this view?

Imagine the nonprofit that is struggling right now with fundraising? Is it the economy or the result of a poorly formed fundraising program without the board engaged? If so, then the economy has only exposed the weakness.

What about the organization that is still raising money, but seeing a decline in overall giving? Well, who is giving less? What has the organization done to engage at a higher level the middle 60% of donors? Is giving down or is stewardship lacking?

Finally, we hear corporate support is shrinking! Wow, and to think, corporations in total are 5% of total giving. Perhaps this is a case of looking down the wrong well?

Again, we do not have a crystal ball. We do know that empahsizing stewardship and cultivation will ALMOST ALWAYS lead to bigger gifts.

In short, things will improve. They always do, so let this be a lesson for all…the needs of those we serve are why we exist and meeting the needs of our donors is the way we get there. We cannot control everything, we can control how our donors view our importance.

At least 60% need some reinforcement of that!

The Time is Now for Nonprofit Organizations

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I cannot predict who will be elected as our next president. I am no pollster and cannot seem to decifer the many views and predictions of news outlets and political pundits. I did however have a revelation regarding this election after hearing NPR Correspondant and FOX News Analyst Juan Williams give a speech recently.

His contention is that this election is more a reflection of society than one of politics. He makes his observations after reflecting on recent population trends in the US. Seems our population has grown in the last decade despite a decline in birth rates. The rise in population is a result of two major factors: Americans are living longer and there is an increase in immigration in the US. And these two small fact tells us plenty.

Mr. Williams observes that these statistics explain a culture clash. He described recent work he had done to examine the under 18 population in the US (which is now 25% of our population) the 65+ year old population in the US. What he uncovered is truly fascinating.

Those 65+ lived during an era when being an American meant being a hardworking, family oriented traditional America. These folks were decendents of those who helped shape the melting pot. These kinds of folks associate with more with John McCain.

Those 21-34 represent a new kind of America. One that is accepting of outside influences, differing cultures and committment to life rather than a “job”. This generation represents, as Mr. Williams describes, a salad bowl. Younger America more readily associates with Barack Obama.

In short, this election is a clash of those cultures, not so much one of politics. What do we want to become rather than how will we stay what we are.

As nonprofit organizations look forward we are lucky. We serve others and as such have the luxury to ask “what do we want to become” everyday. And it does not matter which candidate wins the White House. We serve all…every culture, every belief, every generation. We offer handouts and hand ups. We ask why and how. We transcend all that swirls around us each day. We are commited to those who vote for us everyday (our donors) and those who depend on us every minute (those we serve). Our time is now!