Recession Proofing Your Fundraising Strategy

Hello. Today we are talking about how to recession proof your fundraising strategy. This is such an important topic and I am so glad that you are tuning in with me today because I really wanna help you to be able to raise major gifts. 10 K, 50 K a hundred. Six and seven figure gifts, even in the midst of really difficult times and a recession. I think that this topic is something we don't talk about enough because I hear a lot of fundraisers and non-profit leaders. Have this mindset or this worry that it's somehow wrong or bad or even unethical to fundraise when there is a recession. When there is a global pandemic, there's always a crisis. There is always a reason to think that talking to people about giving. To your organization is somehow insensitive, and I just want to address this and talk about how this mindset has become so prevalent, what to do about it, and if that's really true, if that is truly warranted, and are there times where it's wrong to fundraise? And so first off, when I started fundraising was in the height of the great recession and people were getting laid off like crazy, and it was a really difficult time. People were losing their homes. for those of you who were in the working world at the time, it was very. And this was when I started my fundraising career because I started at a community center and the people that we were serving at this local community center were the most vulnerable. Their needs were even more dire. And so I definitely couldn't justify, not fund. Our mission and people's livelihoods, their families, their having food on the table and having shelter was at risk. This was about survival, and so I was really clear that for people who were not in survival, perhaps their lifestyle was affected. Perhaps they're not gonna be traveling as much. Perhaps they need to sell their second home But I'm definitely not gonna stop fundraising because times are rough for the majority of Americans at the time, and I learned how to fundraise in. The heat of that season, and I'm really grateful for that because it showed me how to recession proof your fundraising. And the way that you do that is by actually building relationships with your donors, getting to know them, them getting to know you, them understanding the impact that they have had with. By giving their hard earned money and that they're truly in your corner when times get rough because you've done a great job getting to know them and they feel seen and heard and valued by you as a human being beyond what they can offer in terms of financial support. This is the number one. To recession proof your fundraising strategy. And that's what I learned to do. I learned to get to know people and find out what makes them tick and find out, Hey Darrell, you have been giving to our community center for 16 years. Why do you do that? You don't have to do that And I wanna learn more about your motivat. When did you get a value for charitable giving? When did that become something that you decided, This is my commitment, this is what I'm gonna do, even when there's a recession? These are the kinds of questions that I would ask people and I was genuinely curious and people can feel that authenticity. They can feel that you genuinely are interested. We love people who are interested in us. And so when you actually build relationships with people, you don't think when a recession comes or a crisis, season comes or challenging economic times and uncertainty in the market, and all of these things that are reality when you have strong relationships with your donors. You understand why they give and their motivation for giving, and you have a pulse on who gives to you because they have financial excess, and you asked. And who gives to you? Because they are committed to being a generous person, and it is not reliant upon whether they have a lot or a little. They are committed to the mission alongside you. Some of you do not know your donors well enough, and so you think that all of them are at risk when there's a recession. That's what it signals to me. Oh, you think that everyone's gonna leave when economic times are tough? That's because you don't know. and that's a bigger risk, not the economy, but the fact that you don't know your donors. You don't know why they give. You just want them to keep giving, and that's, that's an opportunity for you to grow and your ability and your desire to build relationships and actually get to know people. The best fundraisers who can navigate difficult economic times love people, and they love getting to know people and they're curious about people. I personally think that people are fascinating. Everyone is so unique and so different, and yet there are things that connect all of. And I, I'm fascinated by this. I love fundraising because I get to get to know really successful people who all have unique and diverse journeys and paths that they took to get where they are. And as a fundraiser, I get to know them on a level that no one else really gets to. Underst. It's so cool, and this is the opportunity when you don't know your donors, sometimes you put yourself through unnecessary worry and anxiety and stress. When you know them, you know that you've got people who are committed to your mission no matter what, and that gives you a peace of mind. that nothing else can. What's really going on When we say like, is it appropriate to fundraise? I think it might be a, bad time to ask people to give is we believe that it's out of a spirit of wanting to be considerate of others. We wanna be empathetic, we want to be kind, and we definitely don't wanna overstep or offend or be insensitive. In a difficult moment and I completely agree. You know, when there were recently, a lot of antisemitic statements and dare I say, activity that was happening in my city in Los Angeles recently, and I have many friends and supporters in donors. who I know who are Jewish and I'm definitely not, in the heat of those moments going to ask them about their donation, I'm going to reach out and ask them how they are doing and that I'm thinking of them because I care about them as human beings. And that moment lasted for maybe a couple of weeks. And of course, I want to be empathetic and sensitive, and I stand with the Jewish community and I let them know that. And so that's true. And it doesn't mean. That for months on end, I don't ask anyone to give. You have to decide if your mission is urgent and important and life saving, and if it isn't, then you will find reasons to not ask people for money, and those reasons will be. A disguise for the real reason, which is that you're chicken you're scared. You don't want to offend anyone, you don't want to upset anyone, You don't wanna make them mad. These are all things that are about you and fear. It's rooted in fear. So we like to appear that we're being consider. because we're in the beginning of a recession. We're in the beginning of, we're heading into that season now. And so we say, Well, it's, it's not a great time to fundraise because you know, people are being laid off and people Who are these people? There are your donors and a lot of them their. Was created during recessions. they get wealthier and wealthier over the course of time, and sure they might be taking a hit in the market temporarily, but over the course of years, their wealth has gone up so, actually, what you're doing is not using empathy, it's, it's not actually empathy at all, because empathy is about putting yourself in the other person's shoes and seeing things from their point of view and imagining what their life is like. It has nothing to do with you, and this is something that we are limited by when it comes to rich people, we. Cannot seem to build the muscle of empathy for rich people. I don't know why that is. Probably because as a society, we believe that rich people are evil and that we are wholly and righteous and ethical and little angels because we're. And I say we, I mean people who work in the nonprofit world, and it's not true. We extend so much empathy for our community that we serve in our organizations, and yet we don't have that same level of. For people who are millionaires and billionaires, we take them for granted. We think that they should cut us a check whether we write the best email in the world or not. We deserve their money, we're entitled to it. This is prevalent in the nonprofit sector and I find it disgusting. That is actually what is eth. to objectify rich people and expect them that you somehow believe you are entitled to their money. You're not. No one has to give you a dime. And this is the attitude in the mindset that I approach conversations with donors. It's like, Hey, why do you do this? Because you definitely don't have. Yes, I know there are tax benefits to giving charitable contributions. And there are millions of nonprofits. So why do they decide to give to us? And that curiosity and the drive and commitment to invest in relationships is the best strategy. That is recession proof when you don't do. You not only endure unnecessary anxiety and stress and worry, but you actually really do put your funding at risk because you haven't invested in the people who make it possible for you to do this work. You've taken them for granted. You only hit them up when you need. That's called objectification. I only come to you when I need something. Huh. Okay. That's kind of a shitty relationship to be in, don't you think? Would you wanna be in a relationship like that? I don't think so. the opportunity is to invest in your skills as a major gifts fund. So that you can build powerful partnerships with some of the most generous people in the world and change the world together with them alongside them, and learn how to ask them for more and challenge them when it's appropriate. This is how you raise even more money in a recess. You build strong enough relationships, You understand someone's motivation for giving. You understand how passionate they are or aren't about the mission. You learn how aligned this is with their heart and their soul. And when you find out that someone is all in, you can absolutely ask that person for exponentially more. Than what they gave in the past. Not just because of their capacity, but because of their heart. This is the power of actually knowing your donors and they need to know you. They need to know that you're trustworthy. They need to know that when you say you're gonna do something that you do it. They can. They need to know that you will move with urgency when they offer to help you, that you can be trusted with. Can you be trusted with more? If you can't be trusted with more? When times are good, why would they trust you with more when times are bad? This is the power of relationships. When we know our donors and they know us, we have a recession proof organiz. And it is the best investment that you can make investing and building relationships with donors throughout the course of the year. If you don't, you really are putting your organization at huge risk. Building relationships with donors and major gifts fund. is the most efficient and effective way to raise unrestricted revenue year round in times that are good, in times that are bad. When there is a recession, you may just get an email from a corporation that says, Yeah, we're gonna be shutting down our csr. Yeah, we're gonna be cutting all philanthropy. It's so easy for companies to. The same can be true for foundations, and don't even get me started on foundations. I mean, I don't even wanna talk about them. They are not worthy to be on my podcast. major gifts and individuals is the best way to make sure that you have the unrestricted revenue that you need to run your your mission to run your organiz. because your community needs you to ask for more, right? Mine does. So season two of the podcast is all about recession proof strategy, why it's important, how we can do it, what are the mindset pieces that really. And how do you develop those? I'm in your corner. I want to help you raise exponentially more than you think possible, and I want you to have fun doing it. I want you to enjoy it. I want you to enjoy actually talking with donors, getting to know them. And prioritizing fundraising in a new way because you get wins and you like people that you're meeting with and you're inspired by them. Wouldn't that be awesome? It's totally possible for you, so stay tuned. More to come and thanks so much for being here.