As the coronavirus quickly spreads across the country, many donors are unsure how to step in and help.
“We’re certainly hearing from wealthy donors and families who are feeling compelled to address this crisis, but there’s a lot of uncertainty of how to do that,” said Nicholas Tedesco, who leads the National Center for Family Philanthropy.
That uncertainty is why nonprofits should step up right now and start talking to their donors, whether it’s wealthy individuals who give directly or those who give through their foundations, say philanthropy experts.
“Nonprofits need to do everything they can to communicate clearly to their supporters and stakeholders in the community what their status is as honestly as they can and ask for the kind of help they really need,” said Melissa Berman, president of Rockefeller Philanthropy Advisors.
That might even mean nonprofit leaders telling their supporters directly that the organization might not have enough money to survive if the crisis escalates, Berman said.
“Nonprofits have an opportunity right now to talk to their staunchest supporters about how to make sure their balance sheets can get them through this and figure out creative ways to help those they serve,” she said.
Relationships at Stake
Unlike other health crises or natural disasters that have hit in recent years, the coronavirus is unusual because it has the potential to affect everyone. Previous crises have shown that when donors think they could be directly affected, they are much more likely to direct their attention and support toward their own towns and cities, said Melissa Wyers, a former fundraiser and the executive director at EveryAction, a nonprofit technology provider.
“If you’re making appeals right now, where you’ll be most successful is in the things that are going to have a direct impact in your community, like social services,” Wyers said. “Nonprofits would be smart to fundraise for things that will help families get through this.”
The next several months will be critical for nonprofits that want to keep their donors giving, Wyers said. She cautions that while it is tempting in times of crisis to let donor communications slide because gifts officers are not sure what to say, it is important to resist that temptation. When gift officers don’t keep in touch with their donors, they may well lose them later on.
The best course of action, Wyers said, is to send out a lot of communications thanking donors who have supported the charity, either recently or in the past. While the style and tone of those communications will differ depending on the giving level of the donor, the core message should focus on how important that person is to the charity, said Wyers.
“Really acknowledge the value of these donors because those people will stick with you,” she said. “If they have to give a little less, they’ll give something because it’s important to them, and then when this is all over, you’ll have all these donors to move forward with.”
Make or Break
A crisis can be an inflection point in a donor’s relationship with a charity. Good, compassionate communication can strengthen a supporter’s bond with the organization, while failing to communicate can end the relationship.
Laura MacDonald, a principal at the Benefactor Group, a fundraising consultancy, remembers conducting an interview for a feasibility study with a philanthropist whose finances were hit hard by the Bernard Madoff Ponzi scheme.
The woman said that after the scandal, some organizations called and said things like, We understand that now is not the time for you to be making financial decisions about charitable giving, but we’re having our gala next week and it just wouldn’t be the same without you so we’d like you to come as our guest. Other nonprofits didn’t contact her at all.
The reactions made a deep impression on her, MacDonald said.
“Her attitude was, ‘The organizations I didn’t hear from I won’t be giving to in the future,’ " MacDonald said. “‘That organization that invited me to their gala knowing my circumstances — I will continue to be a donor to them for the rest of my life.’”
‘Connect the Dots’
Storytelling is also important. Tell donors about the people your nonprofit touches, who your nonprofit serves, what your group’s employees do, and why their work matters, Wyers advises. Make clear to donors what help the organization needs. Even if you’re a small charity and focused solely on keeping those you serve afloat, communicating fully and clearly will keep the money coming in, Wyers said.
Fundraisers should make an extra effort to clarify for high-net-worth donors how they can help and what their money can do to make things better, she said.
“I haven’t heard many nonprofits stepping up and making good cases to their biggest donors, saying, ‘Here’s what I need from you now,’ " said Wyers. “Most donors just don’t connect the dots so good fundraisers have to do that for them.”
Ask for Flexibility
Nonprofits should also communicate with their grant makers.
Fundraisers at charities helping those most in need should consider requesting adjustments to existing grants, said Phil Buchanan, president of the Center for Effective Philanthropy.
Fundraisers at charities hardest hit by the pandemic can certainly ask foundations to increase their grants. But there are other things grant makers can do to give nonprofits more flexibility and that would not take additional money, Buchanan said. One of the most helpful: Allow charities to use any project grant dollars they have received for other, more urgent needs. Another is to extend any deadlines a grant maker may have placed on a charity.
“There are a lot of ways [foundations] can provide flexibility both by releasing grantees from obligations under existing grant agreements and by providing additional funding,” he said.
He hopes foundations will take the lead in creating opportunities for nonprofit leaders and fundraisers to clearly communicate exactly what they need right now — without having to worry about paperwork requirements and program restrictions.
“If ever there was a time for nonprofits to just speak up to their funders about what is needed, now is that time,” said Buchanan. “Do not hold back.”
Eden Stiffman contributed to this article.
