COVID-19 is having an unprecedented impact on the economic and physical health of Americans. The stock market has seen its largest declines since 1987 and the threat has emptied airplanes, closed schools, and canceled major events such as the NBA season, the South by Southwest conference (SXSW), and March Madness. Our way of life has been upended, with an uncertain timeline of returning to normalcy.
For nonprofit marketers and fundraisers, how will the COVID-19 pandemic impact overall consumer behavior and their charitable giving? The good news is that Americans have historically remained charitable during even the most turbulent of times, whether it be September 11 or the Great Recession. That said, nonprofits should be prepared for a decline in overall giving, both from individuals and corporate partnerships. Following the Great Recession, total giving between 2008-2010 declined by nearly 11% (when adjusted for inflation).
Given the direct correlation between consumer confidence, the stock market, and charitable giving, the economic ramifications associated with COVID-19 pose the greatest threat to short and long-term nonprofit revenue. As the scope of the pandemic becomes more widespread, we believe that nonprofit leaders should be prepared for any scenario.
Nonprofits are responding to social distancing recommendations by canceling peer-to-peer events. Canvassers have cleared the streets and are no longer knocking on doors in search of monthly donors. Nonprofits’ response to this crisis and how they currently engage with their supporters will no doubt influence the speed of financial recovery, post-COVID-19.
Nonprofits are seeking guidance on the most appropriate response to this unprecedented crisis – should they suspend individual giving and acquisition?
Using history as our guide, we know that organizations that make dramatic changes to their campaigns, or skip them altogether, end up in worse shape than if they had continued according to plan. Remember, the money you don’t raise today to support your mission is likely money you’ll never recover. Donors expect to be asked to give and with the right tone and motivation, we believe they will continue to support the great work of your organization.
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Below, are several recommendations for nonprofit fundraisers and marketers that will help maintain engagement with donors and provide continuity for fundraising programs during a period of significant uncertainty. Be vigilant and agile so you can react quickly should circumstances warrant the need.
We will continually monitor this situation and provide updates as necessary.