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October 31, 2008

Charities Should Not Whine Over Lost Grants, Consultant Says

As the economy continues to sputter, many charities expect that grants they had been getting from United Ways, corporate donors, and foundations will decline or disappear altogether in coming months.

But instead of complaining or wringing their hands about it, fund raisers should take a different tack, says Carol Weisman, a St. Louis consultant who advises charity boards on fund raising.

When nonprofit leaders learn they are losing a grant or other big contribution due to economic pressures, they should invite their contact at the organization out to lunch — and promise not to ask for any money, Ms. Weisman says.

She says she once used a similar strategy years ago when she served on the board of a health charity and was notified that, due to bankruptcy proceedings, a pharmaceutical company couldn’t make a big grant the charity had been expecting, and it was suspending its grant making.

Ms. Weisman sent the company a five-pound container of mixed nuts, with a card reading, “Nuts to your creditors. [We] love you. Thank you for your years of support.”

After all, she says, even wealthy grant makers get hurt in tough times.

Once things improved for the company financially, Ms. Weisman says, officials there told her that her charity was the first recipient of its renewed support, in this case a $10,000 grant.

It never hurts to show compassion, Ms. Weisman says, and it usually pays off in the long run.

— Holly Hall

Friday October 31, 2008 | Permalink

Comments

1. I had a similar experience several years ago. During the winter a local maker of art glass was in the newspaper because of the financial problems they were facing due to a major embezzlement by a former employee. They had donated about $5,000 worth of art glass every spring to our art auction. That spring, instead of the usual request for donation, I sent a letter thanking them for all of the past support. I expressed my belief that because of the extraordinary nature of their glass, they would soon recover financially. Our art auction revenues were down that year without their donation, but the following spring we were at the top of their list for a donation and have been ever since.

   — Anne Kerns    Nov 5, 06:14 PM    #

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