On the heels of its first virtual conference in March, the Association of Fundraising Professionals has had to make tough staffing decisions due to lower-than-anticipated revenue. The association has laid off four staff members, one each in the marketing, board-governance, membership, and office-administration departments. Others on the now 28 person staff will take temporary two-week furloughs throughout the year at different times. Staff also took pay cuts, ranging from 20 percent for Mike Geiger, the CEO, to smaller percentages for other employees based on their positions.
The annual conference held by the fundraisers’ association accounts for roughly 30 percent of its revenue. This year’s event was supposed to be held in Baltimore but had to go online only after Maryland’s governor, Larry Hogan, issued a stay-at-home order for nonessential workers and ordered all nonessential businesses to close in late March.
The association said some 900 people registered for the virtual event, down from the 3,400 to 4,000 who typically attend it, Nilsen said. It brought in about a third of the revenue that a typical conference would.
“The virtual conference was successful, but it wasn’t the same kind of revenue generator that our regular in-person conference would be,” said Michael Nilsen, vice president for communications and public policy.
The association was able to recoup some costs from the conference venue thanks to a clause in its contracts that allowed reimbursements for acts beyond anyone’s control, like a pandemic. But it was not able to get refunds on some expenses.
AFP gave sponsors and exhibitors several options, including the opportunity to move their registration to the 2021 conference, which the group aims to hold in person in Minneapolis as well as virtually. A couple of sponsors and some exhibitors backed out, but the largest stuck with the organization, Nilsen said.
Nilsen, who was furloughed for a week in May, says that the organization’s reserves and the revenue generated by the virtual event have helped the organization chart its staffing plans for the year.
“With the economic impact of Covid-19, we’re anticipating a drop in membership and other revenues of roughly 10 to 13 percent,” Nilsen said in an email.
The group plans to host another virtual conference later this year. Its leadership conference in October will also be virtual.
