Many donors are tightening their purse strings . They’ve decided to delay donations, reduce the amount they give, or, in some instances, stop giving altogether. The competition for donor dollars is strong this year, according to many of the development professionals the Chronicle spoke to about our exclusive survey on fundraising and the economy.
“There definitely feels like there’s a finite amount of resources, and there can be some competition,” says Joshua Stein, director of philanthropy at the Jewish Community Foundation of Greater Kansas City. “With more charities out there that are all asking, it’s hard to even get an appointment or get somebody to take time on the phone to discuss your cause.”
The word “competition” came up frequently with fundraisers who completed the survey. This was particularly true in a question about what their biggest concerns were. A California fundraiser responded, “Keeping [donors] linked to us with an increasing competition for their charitable attention,” while an Oregon fundraiser noted her organization was “competing with better resourced health-care organizations for the same major donors.”
While this jockeying for dollars may not rise to the level of the Hunger Games, fundraisers would likely welcome a wish that the “odds be ever in your favor” as they head out to meet with donors.
“The competition is not going to go away,” says Barbara Coury, the foundation president for North Carolina School of Science and Mathematics. “That’s just going to increase.”
The contest for funds extends to grant seeking, says Dana Textoris, CEO of Grants Plus, a consulting firm.
She says many foundations are changing their giving priorities — moving away from the general operating support they provided during the pandemic and instead going back to program-specific funding. Nonprofits need to be really mindful of that. Textoris recommends that fundraisers talk to program officers to make sure they understand the foundation’s priorities.
“Not only are grants more competitive because so many organizations are going for them,” she says, “but there’s a higher bar for nonprofits to make sure that they are keeping up with what matters most to their funders.”
Demonstrating Impact
So how do nonprofits stand out in such a competitive environment? It’s crucial to accept that not every donor supports every cause, says Katherine Fritz, vice president of development and communications at Long Island Cares, a food bank.
“It’s finding the donor where this is the most important thing,” she says. “I know they’re going to support other charities. I’m not going to get every single donor to up their gift. But for those donors where this is the most important thing, telling them that story, sharing our message is important.”
Donors need to feel an organization’s values match their own in order to be committed to giving, says Pamala Wiepking, a professor at the IUPUI Lilly Family School of Philanthropy.
“How do they want to change the world? That should align with how the organization wants to change the world,” she says. “If there is no alignment there, it will typically be just short-term donors that will drop out very quickly after they started giving.”
Keeping donors who are passionate about your cause close and communicating with them regularly is key, Fritz advises. The same approach also applies to foundation and corporate grant makers, Textoris says.
“A lot of organizations think that winning grants is about magic words on the page,” she says. “Those decisions are all made by people. Ultimately, it’s people who these organizations need to be in relationship with.”
Finally, be sure to share information with donors that conveys the nonprofit’s mission in a powerful way.
Momentum for Health, a residential mental-health treatment center for adults and young people in Santa Clara, Calif., works hard to keep donors connected with what’s happening at the organization. Even though people have been more aware of mental-health problems since the pandemic, it’s still important for them to see the work being done, says Alex Shwarzstein, director of development and communications.
“Anytime we open up a new program, or sometimes even with existing programs, we do our best to create a video tour [for donors],” she says, noting that to preserve patient privacy, donors can’t visit their facilities for in-person tours. “It’s a way to unlock some of the untapped potential that’s already in our existing network and donor base.”
Demonstrating your organization’s work to donors who have a deep interest in the mission helps close the deal when competition is high.
“We have to reach the right donor with the right message,” Fritz says. “For us, it’s seeing people getting fed. They’re seeing stories about people with lived experience, with food insecurity, and that resonates with them. They know that they’re helping someone in their community.”
