Global Fundraising Confidence Survey 2009
Fundraisers see green shoots of economic revival
- 50% of not-for-profit organisations globally report a decline in income over the past year, 33% saw an increase
- Not-for-profit organisations in Asia were hit hardest with an average income fall of 13%, compared to an average decline in Europe of just 1%
- Worldwide, fundraisers' confidence is growing with 56% reporting that they feel more optimistic about donations in the coming 12 months
- Europeans are more pessimistic than any other region, with only 30% feeling optimistic, compared to 70% of Asians and Australasians
The past year has been tough for some, with half of not-for-profit organisations reporting a decline in income, but one third (33%) of fundraisers have successfully bucked the trend and generated additional income despite the recession, according to The Management Centre's Global Fundraising Confidence Survey 2009.
Conducted by The Management Centre (=mc) from May-August 2009, the survey explores the views of 126 leading fundraising directors and sector experts from Europe, Asia, North America, Australasia and Africa about the impact of the financial crisis on the not-for-profit sector. The research report, (a follow up to one conducted in 2008), highlights which organisations, causes and regions have and will be most affected and what strategies fundraisers should adopt to overcome economic instability. The survey also reveals how confident not-for-profit organisations are about the current fundraising landscape and the year ahead.
On average, income to not-for-profit organisations across the world fell by 3%. 50% of not-for-profit organisations saw a drop in income over the past year, and of those almost 20% saw their income fall by over 10%. However, 33% of not-for-profit organisations saw an increase in income, and 14% reported income growth of 10% or more. Not-for-profit organisations in Asia were hit hardest with an average income change of -13%, whilst those in Europe reported a more modest change of -1%.
Even among those who saw their income fall or stay static, the majority (54%) were reluctant to blame the global recession as the sole factor, citing additional causes such as:
- Difficulties in recruiting good fundraisers
- Poor crisis leadership from other directors and the board
- Lack of effective strategy for dealing with the crisis
The most common factors reported to have positively impacted income levels were:
- Increased investment in fundraising and working harder to counteract anticipated income falls
- Finding new sources of income
- Major donors stepping in to boost income
- Innovation in fundraising to create new offerings
The research highlights the potential for success where fundraisers took a proactive approach in meeting the recession head on. When asked to indicate what broad strategy they had used for tackling the recession, over half of respondents favoured ‘fighting for market share – expansion has been our key tactic' (30%) or ‘taking effective action quickly to maintain donations' (25%).
When asked what fundraisers should do to build income against the backdrop of a global recession, the most common recommendations were:
- Stay close to donors. Work with them to explain the situation for beneficiaries, but don't put them under too much pressure
- Diversify and improve communication with donors. Get to know their needs better by improving research and databases. Make sure feedback is sought and treated seriously
- Apply a variety of fundraising approaches, don't just stick to one. Linked to this was a desire to use social media more effectively
- Reduce costs through a range of measures from applying low cost fundraising methods to applying a pay freeze
- Be innovative - this covered a range of suggestions, including working closely with other similar organisations
Looking ahead, fundraisers' confidence is growing with over half (56%) reporting that they feel more optimistic about the coming 12 months. 11% feel less optimism, whilst the remaining third (33%) feel much the same. Europeans were by far the most pessimistic region, with just 30% feeling optimistic about the coming year, compared to over 70% of Asians and Australasians.
Fundraisers predict that the three causes whose fundraising was most likely to suffer from the global financial crisis were arts, heritage and culture, science and scientific research and human rights. The three causes least likely to suffer were children's causes, faith based causes and education.
Bernard Ross, Director of The Management Centre, says: "The report broadly reflects what we're hearing from fundraisers worldwide as part of our consulting work. Fundraisers have been quick to adjust to the economic climate, and our experience is that roughly a third of not-for-profit organisations are stepping up to the challenge of the recession, and as a result becoming more effective and actually raising more income. In many cases, not-for-profit organisations report that donors are responding to increased need by increasing donations. But it's not easy. Fundraisers are having to work harder and smarter to raise funds."
"Major donors and innovation are seen as drivers for better results. It's also interesting to note that many see social media as playing a key role, although in my experience fundraisers are still uncertain about how to do this. But the most common advice from successful fundraisers was probably the best: "stay close to donors in as many different ways as you can."
Downloads
Global Fundraising Confidence Report, 2009
