Nonprofit groups are experimenting with new ways to ensure that donations flow over the holidays
Holiday fund-raising season began a lot earlier than usual at many charities across the country.
Seeking ways to offset the effects of the deepening recession, nonprofit groups are working harder and trying new tactics to stimulate giving in the final weeks of the year — a crucial time for organizations that depend on the holiday spirit, and the lure of tax breaks, to build their coffers.
So far this year, many charities have seen sharp drops in the amount of money donated by foundations, corporations, and individuals. Not only are dollar amounts shrinking, but the number of donors who support causes of all kinds is declining by double-digit percentages at many nonprofit groups.
Hoping to offset at least part of those losses, some charities have started their holiday campaigns many weeks before they did in the past, are increasing the number of year-end appeals they make, and are asking loyal donors to give extra money this year.
The Pediatric Dental Initiative, in Windsor, Calif., usually sends a year-end letter asking about 120 previous donors to give. But this year, with contributions to its $2.5-million budget down by $200,000 so far, the charity is sending a holiday card that explicitly mentions the economy to an expanded group of 500 people, including those who have never before made a gift.
"In the past, we talked about our successes and making a year-end gift for tax purposes," says Viveka Rydell, chief executive officer of the charity, which provides dental care to needy youngsters. "That message would not be effective this year."
Need to Change
Ms. Rydell is not alone in concluding that charities need to change how they approach donors.
At Indiana University, in Bloomington, donations of all kinds have dropped. By the last week of November, 43,945 alumni had made an annual-fund donation, down from 55,559 at the same time last year. The number of donations of $50,000 or more have dropped too, says Kent E. Dove, the university's senior vice president of development. "We are seeing a lot of deferrals and 'Come back later.'"
To cope with the possibility that fund raising will continue to be tough, Mr. Dove says, the university has adopted a hiring freeze in the fund-raising department. And it has asked its staff members to do a better job of soliciting by telephone both current donors and others who have recently stopped giving. The goal: increasing the number of donors who make repeat gifts next year from 72 percent to 76 percent.
At Catholic Charities, in San Francisco, fund raisers are trying to decide whether to proceed with a fancy annual dinner scheduled for April that normally honors generous donors. Two fall events did not do as well as expected this year, and the organization is concerned that donors will feel the dinner is too lavish an event, given the economy. "This is a very sensitive time," says Marti Sullivan, director of development. "We do not know what approach to take."
At the Strathmore Hall Foundation, in Bethesda, Md., where contributions may fall $600,000 short of the $3.5-million typically raised each year, fund raisers are not worrying so much about what conventional wisdom says and are experimenting with many approaches. They are toying with the idea of using text messages — and getting advice from consultants who helped Barack Obama's campaign attract millions of supporters by using technology tools.
The foundation, which runs a performing-arts center, is planning to urge people to turn on their cellphones as they leave a performance, dial a number, and enter a code to say what they thought of the show. Those people would then receive a return message containing information about forthcoming events and another code enabling them to make a modest donation.
Eliot Pfanstiehl, president of the foundation, says that, because of the economy, his organization wants to reach out to more ticket buyers for small gifts instead of focusing exclusively on wealthy donors for big donations. Text messaging, he says, is a good way to reach people immediately after a performance, when they are likely to feel favorably disposed toward the performing-arts center and willing to make a gift.
His group is also reaching out to other arts groups who arrange performances at the hall, and seeking to collaborate on a fund-raising appeal, an unusual approach for organizations that often compete with each other. "You can either clench in fear or forge ahead," says Mr. Pfanstiehl. "This is a chance to blow away all your old business assumptions and try new ideas."