Weak Economy Hurts Fundraising
by Ashley High

All across the nation, nonprofits are reporting less success with every type of fundraising except for direct mail, according to the Philanthropic Giving Index released in July by the Center on Philanthropy at Indiana University. These numbers are even lower than what organizations had predicted they would be at in December of 2007. Charitable donations have decreased 6% since December. Economic factors such as layoffs, stock market declines, and gasoline prices have influenced how much people give.

Melissa Brown, the associate director of research for the Center on Philanthropy says people who are struggling financially relegate giving to charity to their discretionary spending. This means that nonprofits need to reevaluate their fundraising methods and makes necessary changes.

These necessary changes may include many things. For instance, nonprofits need to have a diversified fundraising plan that combines donor relationships with new tools like online fundraising, says Susan Eagan, the executive director for the Mandel Center for Non-Profit Organizations at Case Western Reserve University. As the economy worsens, the need for nonprofits will increase as their funds down go, so it is important that a charity does not have all of its resources in one area.

Eagan says, “It’s going to be a particularly challenging time for nonprofits. The premium is to have very specific and targeted fundraising and having a clear plan.”

Information taken from: Anna Sudar. “Worsening Economy Hurts Nonprofit Fundraising.” www.thepost.ohiou.edu.

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