Fundraising recovery mirrors the economic fortunes of Canada and the USA

As we approach the final quarter of 2010 it is certainly good time to reflect upon the relative improvement in economic conditions here in Canada, in fact compared with other G20 nations Canadians have more to be cheerful about than most others particularly the US and the larger economies of Europe. While no economy outside of Southeast Asia/Australia is showing the overall strength in data that was achieved in 2007, the difficulties of the two-year recession sandwiched between then and now are at last beginning to wane. While economic hardship has been faced by so many the last two years, private business does not hold an exclusive grip on weathering this storm. Nonprofits as you may expect have also seen major setbacks the last 24 to 36 months and while 2010 has shown some signs of better days ahead, raising funds has yet to return to the heights of 2007.

I found a report in today’s Montréal Gazette particularly interesting as it reviewed the overall philanthropy data for the US and Canada in 2009, much like a growing gulf between the overall stability of the two economies the same type of impact has been witnessed by nonprofits. Recessionary conditions lasted longer in the US and also ran much deeper, both factors which are contributory to the results compiled by the Association for Healthcare Philanthropy (AHP) in their annual report on giving. 2009 marks an increase of $56 million in charitable donations in Canada over the prior year, whilst in the USA donations fell by some manner of $944 million during the equivalent time. While the news that hospital donations in Canada increased by 5.2% is still as not overshadow the setbacks caused by a 13% drop the year before. Nonprofits will see these results as encouraging but still point out that fundraising fell some $200 million lower than what was raised in 2007.

Meanwhile in the US the potential for returning to record pace for charitable donations may well be running a year or two behind what is being observed in Canada, but there again the US started from such a high level of donations that even with the downturn the $8.6 billion in donations for 2009 is remarkable. In 2007 that figure was approximately $10 billion for the only time in history. With the noted increase in 2009, donations in Canada reached over $1.1 billion on the year.

The message for nonprofits is as clear as it is vital, creativity and interactivity will both be crucial in securing new and repeat donors. Perhaps just as important is to raise the level of involvement from the donor base by communicating more, sharing news and successes and operating as efficiently and transparently as possible. It’s a heartwarming story to see that even in times of great economic trouble both countries continue to donate remarkable amounts of funds especially when compared with so many other nations. Charitable organizations must match the level of industry exhibited by the general public in taking fundraising through this next decade.