Alice Ferris, MBA, CFREJim Anderson

Dollars in the Desert

Finding

What are you Afraid of?

Total Giving: $308 Billion2008 US Contributions DataSource: Giving USA 2009

Individuals $229.03 - 75%

Foundations $38.52 - 13%

Bequests $23.15 - 7%

Corporations $15.69 - 5%

Funding Sources

Foundation & Corporate

Estimated drop in foundation assets 22% at end of 2008Expected reduction in grant making for 2009: 10%Corporate giving also down - Why? Perception for some, reality for others

AFP 2008 State of Fundraising Report

39.7% reported giving was down in 2008 compared to 2007, the highest level since 2002.Only 45.9% reported giving up from 2007 to 2008, compared to prior report 65.3% and high of 69% in 20062009 to date: 51% of charities responding reported that giving was down from 2008

“Perfect Storm”

Declining revenueIncreasing costs (health care)Declining endowments/investment portfoliosRestricted credit marketsDecreased audience for some (less revenue)

or increased audience for others (can't handle increased load)

SO WHAT DO WE DO??

Choose your attitude“Business is neither good nor bad “out there” It’s either good or bad between your own two ears. - Zig Ziglar

Overall Concepts

Focus staff on what the organization can control, to build confidence and address short-term problemsUse the turmoil to start discussions about business model innovations and new initiatives

Overall ConceptsEnsure leaders communicate a clear and consistent message to every set of employees they meet withMaintain pride in the organization's missionDuPont's CEO, Ellen Kullman: “People start thinking our mission is to reduce cost. That's a tactic, that's not our mission."

What’s WorkingConservative financial managementStrong community supportExtraordinary board or staff (Herculean efforts)Increased demand for services (Human services, public benefit)

Effective strategic planning

Prior diversification of fundingEffective fundraisingIncreased government fundingSpecific local economic conditionsLuckEffective advocacy effortsEntrepreneurship

Johns Hopkins Study, April 2009Center for Civil Studies

What Can We ControlFinancial Management Practices Clear and consistent marketing to the communityMaintain prideReward your team for Herculean effortsRe-examine but don't throw out the strategic planExpand your funding mix

Focus on Annual Giving Donors

Dollars in the Desert

Finding

Rethink Your Major Gifts Program

Dollars in the Desert

Finding

Find New Pockets of Government Funding

Dollars in the Desert

Finding

Renew and Acquire Foundation Support

Dollars in the Desert

Finding

Renew and Acquire Corporate Support

Dollars in the Desert

Finding

Create Memorable Meaningful Special Events

Dollars in the Desert

Finding

Start or Expand Revenue Generating Programs

Dollars in the Desert

Finding

Introduce or Expand e-Philanthropy

Dollars in the Desert

Finding

Develop or Nurture Partnerships with other Nonprofits to Conserve

Resources and Create Opportunities

Dollars in the Desert

Finding

Financial Management Practices

Dollars in the Desert

Finding

Alice.Ferris@goalbusters.netJim.Anderson@goalbusters.net

www.goalbusters.net

Questions?