What To Do in This Economy?

This is the question on most people's minds whether working with a for-profit or non-profit organization. I am hearing from non-profit organizations that are cutting back on services, marketing and donor relations. All of these actions will have an impact on the organization and the community in which it serves.

Obviously cutting back on services will greatly affect the people who receive services. Plan and communicate service cutbacks carefully. Organizations that handle this poorly can gain a bad reputation that could take years to recover from. Engage the people whom you provide services for in the planning stages. Listen to what they are saying. Ask one or several members of the community you serve to become your spokespeople in the community to help soften the tough message of cutbacks.

Marketing budgets are typically the first to be cut. This is often seen as a non-essential function in an organization. Many non-profits don't even have a "Marketing " line in their budgets. Be very cautious here when evaluating what to cut. Do not mistakenly cut out activities just because they have a low return on investment. For example: perhaps you send out a quarterly newsletter and cannot attribute one donation directly to that newsletter. The reality is that if you have a well written, eye pleasing newsletter it can be a fairly inexpensive way to maintain relationships and even help people that are unaware of your organization to become more familiar with it. Other options could be switching to an online e-newsletter to save on printing and postage costs, or submitting the newsletter twice a year instead of quarterly. Sometimes seemingly low return on investment activities have benefits that are not measured in dollar value.

Lastly, if at all possible, do not cut back on donor cultivation. This means cultivating individuals, corporations and foundations. This reaction will harm the organization over the long run for several reasons. The first being-other organizations are cutting back in donor cultivation. You could have the competitive edge if you continue or even dare to increase your relationship building activities. If you don't someone else will and your donor will get bored with your relationship and eventually take their hard earned dollars elsewhere. Also, this economic downturn will not last forever. Donors will give more and more frequently again. It will be great if you cultivate relationships through these tough times and it pays off big for you in the future!