Non-profit Fundraising Outlook for 2011

For decades, charities have long relied on the support of grants and donations from corporations in addition to money raised from the public through conventional non-profit fundraising methods.  As a result of the economic downturn, support from corporations experienced a significant decline in 2009 followed by an increase of 13% in 2010. All predictions indicate that 2011 will remain on par with 2010 as almost 70% of surveyed companies expect their giving to remain the same and only 25% expect it to increase.

Predictors estimate that donations will not return to pre-recession levels until 2013. In other words, charities will still have to sustain themselves without the full support of corporations providing the funding that they urgently need.  There was a time when money raised through non-profit fundraising methods was used to market and further the mission and objectives of the cause. Now, especially in the case of under-funded charities, these same funds are used to help keep their doors open and meet the charity’s most basic needs.

giving hands image courtesy of treehugger.com

Companies have had to get creative in these cash-strapped times and have found alternative means to support their favorite causes. In many cases, this support has included donating company goods and/or services which represented value to non-profit fundraising efforts of charities and helped contribute to stronger overall donations in 2010.

Corporations are being more effective with their giving to maximize the impact of their cash, goods, services or other donation. Many are more selective and aligning with causes that best represent their corporate values and vision and can most benefit from the goods/services they are offering. The Gap has done just that with their partnership with the Boys & Girls Clubs of America as the benefactor of their Career Launch Program which introduces teenagers to possible career opportunities.  Both Benefactor and Beneficiary share common goals, mission and interests and everyone wins.

Charities are also getting creative to attract the support of corporate donors as well. For example, the Oklahoma City Boathouse Foundation appealed to the Chesapeake Energy Corporation’s sense of civic pride and duty to help in the revival of the Oklahoma River. The energy company stepped up in the name of reconnecting the community and improving quality of life and they continue to make annual gifts of over $1 million.

Both corporations and charities have suffered over the last few years but the lessons learned during these difficult times will guide them beyond the economic recovery. There is a sense of self-preservation inherent in business now where every dollar counts and maximizing its value is important. Corporations will continue to be selective in how and who they support to ensure they represent the best fit for their corporate culture. Charities will continue to be creative in their approach to non-profit fundraising with the public and how they appeal to the business values of their potential corporate donors.

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