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Covid-19, the Economy, and the Nonprofit World: A Virtual Forum

By  Margie Fleming Glennon
March 30, 2020
R-Virtual Forums

Figuring out how to talk to donors now, recoup lost revenue from canceled in-person events, and manage staff and board members remotely are among the challenges nonprofit executives face as the coronavirus upends virtually everything charitable organizations do.

To help leaders steer their organizations during these turbulent times, the Chronicle enlisted three experts in fundraising, managing, and philanthropy to share advice last week during a virtual forum.

A main priority for charities should be to nurture relationships, they say. Talk to your donors “right now,” says Laura MacDonald, principal of the Benefactor Group. First, ask them how they’re doing, then share with them how your organization is responding to current events. Don’t ask for a gift at this time, she says, but be prepared to suggest nonfinancial ways they can help. “There’s a lot of empathy in the world right now,” she says, and offering other ways to help can strengthen your ties with donors who aren’t able to give right now.

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Figuring out how to talk to donors now, recoup lost revenue from canceled in-person events, and manage staff and board members remotely are among the challenges nonprofit executives face as the coronavirus upends virtually everything charitable organizations do.

To help leaders steer their organizations during these turbulent times, the Chronicle enlisted three experts in fundraising, managing, and philanthropy to share advice last week during a virtual forum.

A main priority for charities should be to nurture relationships, they say. Talk to your donors “right now,” says Laura MacDonald, principal of the Benefactor Group. First, ask them how they’re doing, then share with them how your organization is responding to current events. Don’t ask for a gift at this time, she says, but be prepared to suggest nonfinancial ways they can help. “There’s a lot of empathy in the world right now,” she says, and offering other ways to help can strengthen your ties with donors who aren’t able to give right now.

Trella Walker, director of advisory services at the Nonprofit Finance Fund, recommends a similar approach: Celebrate and support the work of those on the front lines of the fight against the virus, explain in clear terms how it is hitting your organization, then talk about your nonprofit’s plans for resiliency and recovery.

Be open and honest about finances, and Walker stresses. For example, if you are losing money from canceled events or moving them online, tell your donors. Be clear about how you spend your money, too, she says. If you have a reserve but it is designated for specific use, explain this, or if you have an endowment, make it clear that it is not a rainy-day fund.

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Communications Tips

  • Keep it personal.
  • Communicate using the same method you used before the crisis, based on the donor’s preference. Don’t suddenly call someone whom you usually email, for example.
  • Now is a good time to stress the importance of investing in technology. Explain that you need it to continue meeting your mission or to innovate, or both.
  • Levity is welcome: We all need to be cheered up right now.

We’re All in This Together

We must not let this crisis overshadow inequitable practices because those who are harmed by them are suffering more than the rest of us, says Walker. We must remember the voiceless: people of color, the LGBT population, and the homeless.

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It’s also important to remember that being able to work remotely and maintaining physical distance are luxuries for many people in the world, says Gabrielle Fitzgerald, chief executive officer, Panorama, so keep this in mind when crafting your communications.

Consider Creative Solutions

As we all adjust to rapidly changing circumstances, nonprofits may want to consider asking for indirect support rather than a gift, the panelists advise. For example, a grant maker may be happy to extend a reporting deadline to relieve some pressure on your nonprofit’s staff.

Ask supporters to share their time and talent. For example, a college or university might ask alumni to conduct mock interviews for college seniors whose job fairs have been canceled. Help people channel their energy into activities that are related to your mission and truly helpful to some of the people who are hurting right now.

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To replace lost revenue, ask supporters to convert purchases, such as tickets to a gala or an arts performance, to a charitable gift. One nonprofit asked its corporate sponsors to convert their event sponsorships into charitable gifts. All but one agreed.

Some groups that have living donors who made endowed gifts are seeing some success in asking them to free up the funds to go toward general operating expenses.

Leading in a Crisis and Practicing Self-Care

“The reality is that in the work that we do, we are set to give, and in a time of crisis, everybody all at once, needs help, needs support,” says Walker, so leaders should practice pacing, patience, and empathy, but remember to shore themselves up, too.

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Be mindful of unusual stressors your staff may experience. For example, says MacDonald, major-donor conversations are emotionally difficult right now. Major-gift officers need emotional support to help them get through this.

Many leaders are concerned about finding work for administrative staff members. Now may be a good time to work on projects that always seem to get pushed to the back burner, such as updating your donor database.

Additional topics the panelists covered included tips for nurturing relationships with board members and getting them to help. And when it comes to a long-term outlook, Walker sums up her recommendations in an easy-to-remember phrase: Response, Recovery, Resilience.

Sign up to watch the one-hour discussion to learn more.

Read other items in this Chronicle Advice on How to Respond to Covid-19 package.
We welcome your thoughts and questions about this article. Please email the editors or submit a letter for publication.
Margie Fleming Glennon
Margie oversees The Chronicle of Philanthropy’s professional-development webinars, online briefings, and how-to content on philanthropy.com, which includes nearly 1,300 case studies, practical tools, and articles offering expert advice.
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