Tough economic times mean tough times for charities. It is certainly not that people care less, it is just that they have less. Indeed, there is some evidence that as times get tough, people may even give a greater percentage of what they have…but what they have is so much less that, in the end, less flows to the charities. New, innovative, useful, meaningful ways to raise money are required to support worthy causes. The Internet offers a primary solution.
GuideStar.org, a leading organization connecting people and organizations with information on the programs and finances IRS recognized nonprofits, has just released their “Seventh Annual GuideStar Nonprofit Survey Charitable Organizations and the Economy October 6-20, 2008”. In this survey, participants were asked to compare charitable contribution levels, as well as demand for charitable organization services for the first nine months of 2008, compared with the first nine months of 2007. (This survey is publicly available at the GuideStar.org website.)
It should come as no surprise that contributions to charitable organizations are down substantially from 2007. It should also come as no surprise that demand for services from these same organizations are up markedly. If you happen to be in the southeast or the southwest, both of these trends are strongest. New England and the Plains fared best.
The news is even worse for smaller charities. Those organizations which rely on many small donations from many small donors are struggling mightily, while demand for their help and support continues to increase.
A new approach to raising money is required. The effectiveness of online fundraising for political candidates gives a real clue as to the answer.
What are the keys to effective fundraising in down economic climates:
1) Ask for money from people who have money
2) Give people real value for their money
3) Make giving money very easy
4) Make soliciting and receiving the money very efficient
5) Be different
How does online fundraising address these points?
1) People who are online today usual have high speed access, or at least some form of internet access, and they have computers…so you know that they are paying several hundred dollars a year for the privilege of being on line. They have at least a few dollars for a worthy cause.
2) EProducts, digital downloads, offer great value in many cases. EBooks have great content, software can be very useful. Since there is no physical inventory, the actual cost is low and a greater portion of the portion can go to your cause.
3) People don’t want to have to work hard to give. Cash is less common and checks are becoming passé’. Online, with digital downloads, it is easy to pay by credit card or PayPal with very little effort.
4) Volunteers have less time to get out and do the hard work of soliciting donations. Physical inventory handling cuts into the real flow of profits to a charity. With the proper online programs the charity has only to direct people to websites and then wait to receive the collected contributions. There is no cost to the program and no labor except perhaps an email or flyer campaign.
5) The last thing anyone wants is more of the same. People get burned out on being asked to reach for their wallets in the same way time after time. Online fundraising programs look different, feel different and are different.
There is no reason to continue to struggle as a charity in these tough times. Turn to the Internet. Turn to the modern era of digital downloads and fly in the face of the economic environment. Drive your charitable organizations growth with unique online fundraising.