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By Jackie Biancolli Libby
“The new normal.” By now, we’ve invoked the phrase often enough that it almost loses meaning. In fact, the whole idea feels slippery. Each time we try to pin the future down, it changes on us, again. There is no crystal ball.
At the same time, fundraisers must be future-oriented: devising strategy, budgeting, and implementing campaigns well before deadlines. Assessing and addressing the new normal is a critical skill. Fundraisers who do this well will empower their causes and organizations to strengthen impact. Sadly, those who do not will risk losing ground.
The best fundraisers will understand trends, consider economic and social conditions, and regularly update their assumptions. In addition, they will be an expert on their organization’s history, its donors, and important benchmarks. They will learn from the work of sector peers and share their own findings. Throughout, they will educate and collaborate with their leadership and boards.
To begin, assess your organization’s current picture. How well do you understand the history of your donor file? How has it changed during the past two years? Consider donors’ communication preferences, and where they hang out online. Check for new trends with major or recurring giving. What has changed? What has been consistent? What is the best way to engage your donors today?
You need to know your organization’s metrics. Look at new join rates, retention rates, average gifts, and upgrades. Segment information by recency, giving level, and frequency. Because the past two years have been so unusual, be sure to examine new joins by year and study their retention and average gifts. You should also track engagement across channels and assess your digital KPIs.
Understand your organization’s current challenges. Maybe you are experiencing a leadership transition, or the pandemic stressed cash flow. Perhaps a surge of new donors overwhelmed your infrastructure. How have the supply chain and inflation affected your budget? Diversity, equity and inclusion (DEI) strategies might rightly require changes to your funding model or tactics. Re-openings and closures might also be a factor. Assess and reassess what is happening for your organization.
After you become an expert on the past and present, look to the future. Anticipate challenges and plan for them. You should maintain your own list of trends to research and track, but here’s a roundup of seven ways to get you started:
You might be thinking, that’s all fine. But what should fundraisers do about it? Keep updating your assumptions. The future is uncertain so you should not implement rigid solutions too early. You want to remain agile. The point is not to control every crisis in advance, which would be impossible. Instead, your goals are to prepare where you can, incorporate new information, and respond strategically when change happens.
In addition, fundraisers can implement proactive strategies. First, keep up your digital content. Between future possible closures, more digital-friendly donors, and ongoing remote activities, you will likely need it. Further, staying virtually connected to donors positions you to keep pace with the rapidly changing digital environment. Always, always track results.
Second, streamline operations. Not only will this help you conserve resources, but it will also support agility. For example, one performing arts organization created evergreen direct mail packages that do not feature event or event benefits messaging. If future closures impact performances, they are ready to change course without significant disruption to their strategy.
Third, educate your leadership. As the fundraising expert in your nonprofit, it is important to correct myths, provide relevant data, and advocate for good strategy. For example, many well-meaning board members have wondered why direct mail is still a line item, or whether Millennials are the simple answer to a budget shortfall. Fundraisers know better. Your job is to inform leaders, recommend sound practices, be transparent, and be accountable. When you become a strong and trustworthy partner to leadership, your nonprofit has the best possible chance of success.
Last but not least, keep going. Recent years have been difficult, and you are still showing up. Well done. You’re doing great.
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Jackie Biancolli Libby is senior vice president and director of client services with Avalon Consulting in Washington, D.C. Her email is jackieb@avalonconsulting.net
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