Fundraising during a crisis
Fear is the new four-letter word.
When COVID-19 struck and the world shuttered down in March 2020, there was a collective global asphyxiation.
The first emotion that overran people was fear. Followed in quick succession by dread and anxiety which were further exacerbated when I received a grim text announcing — ‘we are hitting nuclear winter’.
Global media headlines did not provide any succour either. When news of bankruptcies dominated the press for endless weeks and marquee brands tumbled like nine-pins, my first question was — ‘is there a tomorrow?’.
And when one is working in the non-profit sector and tasked with fundraising, the disquiet gets amplified. I started receiving discreet and not-so-discreet phone calls enquiring about the health and stability of the organisation I represent.
Battle hardened after twenty something years in the corporate world and having lived through the 2008 Global Financial Crisis, one had a template of what a financial meltdown resembled.
Five months post lockdown, am happy to state that we landed safely on our feet. Fears of a nuclear winter waned and we collectively exhaled. If not in joy, certainly in relief.
Our performance surprised us, and in hindsight, it was not accidental. Several practices stood us in good stead that are worth examining.
Always communicate
Tell your donors the good news but tell them the difficult news first. Build a culture of honest communication. Talk to them in good times and more when things are going south.
A bedrock of honest communication will foster enduring donor confidence. Build that trust not because you need to encash it later but because it is the right thing to do. You will be pleasantly surprised with the paybacks.
Talk, don’t sell
Here is a trick that always works: talk but don’t always sell and ask for monies.
Communicating without selling forges deep bonds. They come in handy when the day comes to make a specific ask. How often do you communicate and talk to donors without an agenda? When was the last time you texted or called them to just say hello? Every conversation with a donor is an implicit act of salesmanship.
So, how does one communicate without an agenda? Send an article, a video link, share an idea, be aware of their cultural interests in music or literature, enquire about their families and the list is endless.
Shave costs but invest more
Don’t freeze like a deer in the headlights.
Yes, times are tough and will be for a while. The worst thing one can do is to wield a mighty axe and slash budgets indiscriminately. That will be counterproductive. Have an honest conversation within your organisation. Identify how budgets can be reallocated and check if adequate resources can be directed towards fundraising.
Don’t thoughtlessly slash fundraising budgets. That singular act will trigger unintended reactions leading to a downward spiral. Low fundraising budgets will lower the ability to raise monies resulting in diminished resources for the organisation — and we know what those consequences are. The medium and long-term impact of diminished fundraising capabilities can prove lethal.
Focus on impact
A downturn can be good news.
A moment like COVID provides an opportunity to re-emphasise the outstanding initiatives of your non-profit and the impact of its various initiatives. Focus on performance and talk about your beneficiaries. Articulate how you are investing greater energies and focus in enhancing the effectiveness of your non-profit. Talk about how your beneficiaries are receiving greater support and how they in turn are delivering greater outcomes.
The more donors realise the value of your organisation in turbulent times, the greater will be their disposition to fund you.
Sidebar: Don’t alter strategy in a hurry. It reveals what was relevant in good times was not an all-weather strategy. Tweak, dial-down or postpone what may not work. But avoid throwing the baby out with the bathwater.
80/20
Swim in bigger ponds.
For a non-profit, every rupee counts. That said, it takes equal time and effort to convert a large wallet donor vis-a-vis a relatively smaller contributor. Smaller wallets tend to freeze faster. And when resources are harder to fetch, where would one logically focus more? The answer is self-evident.
The golden 80/20 rule applies to fundraising as it does to other operations. Wealthier donors have larger disposal pools of monies. Invest more time and engage deeper and you will witness superior results.
Don’t assume the worst
A failing economy is disconcerting but not always bad news.
Some donors may step back (and perhaps give later) and some may step up to contribute higher. And more donors may reach out and enquire how they could engage and assist you.
You will be surprised by two things. First, never underestimate the giving potential of your donors. Second, your investments in communication and stewardship will pay rich dividends with donors delivering on their commitments. Several of them will be cognizant of the need to support beneficiaries, especially in a decline.
And if you need more, like Oliver Twist, ask for it. You will be pleasantly surprised by the outcome.
Express gratitude
‘Thank you’ is a big phrase.
Always express gratitude. More so when times are rough. One of the principal responsibilities of a fundraising team is create banks of emotional investments. And subtly tap into them in moments of crisis. One of our donors sent a Rs 1 cr cheque only because he received a heart-warming note from a scholarship recipient.
Be relentless
Fundraising never sleeps.
Rain or shine, never stop fundraising. Never stop knocking on doors (or Zoom calls). Never stop building the donor database. Our biggest CRM upgrade and migration happened during the lockdown. When an economic crisis emerges, fundraising activities assume greater importance be it selling, stewardship or accelerating the database.
A combination of the three will prevent fundraising atrophy.
End note
Ok, if you peered into my organisation’s fundraising toolkit, what will you not find? Answer: a retail presence. That’s our next area of focus. More of that in the future.
Venkat Eshwara is Vice-President, Development and Alumni Relations, Ashoka University. Venkat has been with Ashoka for eight years and prior to that, spent 21 years in building and growing start-ups in financial services and related sectors.
