Martin Jervis, Managing Director, Europe

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Martin Jervis, Managing Director, Europe

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What happens to charities in a downturn?

June 2008

Telephone: (020) 7415 7196 e-mail: jonathan.baker@nfpsynergy.net Web: www.nfpsynergy.net

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Our sample and methodology Sample of 56 of the largest voluntary income charities Analysis of 25-year financial histories, to look at how charities are

affected by the economy

Asking the questions: What might happen in a downturn? When charities might be affected? How they might be affected?

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Key Findings UK economic fluctuations effect charity incomes, voluntary ones

first – though not seen straight away, analysis shows Average charity income growth will slow or become static in

downturn, though actual average incomes won’t fall, experts predict

“Don’t accept or expect defeat”; but be cautious and “ensure resilience against income volatility”, think tank urges

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and then……..

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Resources http://recessionwatch.blogspot.com/ www.fundraisingsuccessmag.com

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Five tips for not-for-profits in an economic downturn Run a not-for-profit like a for-profit business. Every pound is not only significant but

also must be accounted for. The risks of failure for a not-for-profit have much bigger consequences than reporting a slow quarter to shareholders: this is because the bottom line for many charitable organizations affects the quality of life for those they serve.

Treat your donors like gold. It’s important to convey to current donors how much they are appreciated. Loyal donors deserve personalized recognition at all times, but they should be honoured even more so during times when it might be hard to give. Altruism and stewardship drive charity, and donors who are respectfully praised are more willing to continue their tradition of giving.

Be innovative. Diversify the overall fundraising program. Pay attention to detail. ‘The customer is always right ‘means one thing in a department

store and something completely different in not-for-profit work, where it means much more. A misspelled name or incorrect salutation in the corporate world might be seen as just a slip or oversight, but in the not-for-profit world it can cost you a gift.

This article was first published in FundRaising Success magazine www.fundraisingsuccessmag.com

Marc Chardon, President and CEO Blackbaud