By Nicholas Offord

Recent economic developments have many charities concerned about the future. I thought it would be useful to put together a few reflections on the current state of affairs that might provide some encouragement.

On the Capacity to Give

First, thec haritable sector has traditionally weathered recessions better than other parts of the economy. Second, we have a tremendous cohort of baby-boomers entering their prime giving years and they will be looking for ways to give back. Third, many charities have developed programs that are aimed at long term relationships with their donors; such donors have traditionally been loyal, sustaining supporters. And finally, awareness of the needs of others goes up duringa recession, which drives generosity. 

On Campaign Planning

A typical campaign takes more than six years from conception to celebration; it’s likely that any campaign is likely to see some kind of market correction or economic setback over that cycle. Those considering campaigns develop relationships that are long term. This is why in a planning study we look at the marketplace, baseline constituency, and predictive models and not just the opinions of leadership, which can be cautious. A key issue is to build confidence by building the program steadily. (It can be better to achieve modest goals regularly than to struggle to achieve a grandiose plan over a 10 year period.) Also, a focus on leadership gifts which have driven a great deal of revenue growth, particularly for the institutional sector, needs to be balanced with programs aimed at entry-level and mid-level donors. Such gifts will be harder to attain, but there is much untapped potential in the area of intermediate giving (in the $2,500 to $50,000 range), which will provide an important pipeline of new friends and potential leadership gifts over the next decade.

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