Delivering strategies to strengthen donor relationships and increase fundraising performance.
The Emergency Fundraising Appeal: Is it Worth It?
By Derrick Feldmann, Achieve CEO
This week I have seen four emergency fundraising appeals for support. Given the state of the economy over the last several years it is no surprise some organizations may be on the brink of closure.
Organizations make emergency calls to the public and their donors to keep them around. Although there may be short term gains with raising cash quickly, the long term sustainability issue comes into question. At the heart of an emergency call for support is a nonprofit with a business model that is flawed, a lack of a donor base to support the need, and/or no community buy-in to believe the organization should be the recipient of philanthropic dollars. Even if there is a valid need, the community may not believe the need is important enough to be the recipient of support.
This type of appeal does not give the donor confidence. Here is why:
1. Perception and Reality: When an organization is doing what we call “one-sided fundraising” they only focus on the positives. This is some of the great spin we hear about in brochures, websites, and typical public relations activities. To donors, there is a perception that the organization is healthy and vibrant. Because the organization has not been transparent, it is a shock to hear an emergency appeal given because this is the first time they have been forthcoming about the financial situation.
2. Cautious: We interview donors for feasibility studies and new donor acquisition. As one donor said recently, “I may give to an emergency but if they continue to cry wolf I am gone.” Your donor will be more cautious about their gifts because how many of us want to support organizations who may go out of business?
3. Board Leadership: Where is the board in this situation? Most donors will question where the board has been and wonder why they have not acted before now. Did they not understand the issues, were they not informed of the financial situation, and how come they did not act when they saw trouble on the horizon? Donors give to organizations because they believe in leadership. It is hard to believe in organizations when the board allowed it to get to a state of an emergency. As a donor said in another recent interview, “I do not believe that board is right for them. Why did they not move quicker and be more involved in raising the support?”
If you see trouble on the horizon, act now. The emergency appeal may be a shot in the arm you need, but when the side effects wear off you are still left with reality.
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