Major Fundraising Event Results Decline
In another sign that the world-wide economic slow down is having a major impact on nonprofit revenues, the New York Times reported yesterday that a saxophone signed and donated by former President Bill Clinton raised $180,000 at an auction held during the Cannes Film Festival. While that is an impressive auction result that would have many nonprofits blowing their horn, the larger story here appears to be the overall event results. In this, the 16th Annual Auction during Cannes to support AIDS Research, the total earnings of the star-studded event was $4.5 million, down from a total of $10 million the year before.
The NY Times article quotes former President Clinton
”Everybody knows there is a global economic slowdown of epic proportions,” said Clinton, who supports AIDS research and treatment through his William J. Clinton Foundation.
He noted that $30 trillion in wealth had disappeared around the world between September and March, ”and a lot of it came out of some of your bank accounts.”
So what’s a small nonprofit to do when even the big guys, the ones that can attract the likes of Bill Clinton and Sharon Stone to their event, see revenues decline by more than 50%? Well, my friends the answer isn’t an easy one and it is going to vary somewhat based on your organization’s circumstances. But I do have a few thoughts to share:
Things to do:
- Keep the focus on your mission and when appropriate make the case for the urgency of your needs
- Continue offering your constituents multiple opportunities to support you through out the year. Focus on your loyal, annual donors.
- Continue your focus on what motivates your donors to give: segment, segment, segment your list and personalize donor communication as much as possible
- Get out of the office and visit donors. Radiate a positive image that despite the tough times you can and will meet the challenges you face together.
- Although the economy could make you feel awkward, make sure you ask with confidence.
It is a tough economic situation and even the major events and organizations are experiencing significant declines in income. So, while this might not be the best time to launch a major capital initiative, it is by no means the time to cut back on annual funds and major gifts plans. In fact, it really is the best time to do even more. Everyone is experiencing a decline and history has shown that those who rally the troops, streamline, and innovate during the tough times – these are the organizations that come out on top when things do recover.
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