CA’s Thought Leadership Forum: Fundraising During Times of Uncertainty

This article was originally published on LinkedIn by Campus Advancement and is republished with permission. Read the original version here.

The contours of the United States’ economy in 2025 are being characterized by uncertainty, unpredictability, and volatility. The Federal Reserve is attempting to carry out its dual mandate of price stability and full employment at a time when economic forecasters are predicting both rising inflation and declining GDP. Simultaneously, the public equity markets seem to be divorced from the surprisingly resilient, albeit shaky, fundamentals that have the nation on tenterhooks.

What economists call a K-shaped recovery means that those at the top of the income distribution are continuing to spend, not just on themselves, but on causes that ignite their passions and organizations with resonant missions. It also means less affluent families and individuals are struggling with smaller amounts of disposable income, which translate into less philanthropy.

This is the backdrop, over which no organization or fundraiser has any control, but the import of this moment suggests the need for strategic adaptation. What will that look like? There are many actions within our control that may influence the trajectory of both near- and long-term giving, and this is where practitioners must focus to sustain a healthy pipeline.

We are in the relationship business, and when our stakeholders are in crisis, our job is to be steadfastly focused on the health of those connections.

During 2020, many of the most successful organizations recognized that amid COVID-induced isolation, we needed to reach out to our donors – not to ask, but to give. Donors appreciated the reassurance that we cared about their well-being, they valued the virtual opportunities many charities provided both to learn about how we were adapting and to keep them connected to community.

The only ask many of us made was, “how are you doing?” giving them psychological space and a permission structure to share their concerns. Even if all we could do was listen and validate, many of our donors truly craved that human exchange at a time of unrelenting isolation. Those of us working in universities with health sciences programs and academic medical centers also found receptive virtual audiences for our researchers to help demystify the complex, and sometimes confusing, advice for staying healthy.

Now we’re fielding a variety of questions without simple answers.

• How will federal funding cuts affect our research and teaching?
• What’s our position on a presidential administration that seeks to reshape curriculum?
• How might economic uncertainty affect our fundraising priorities?
• Are we still moving forward with our campaign?

Any one of these vexing questions and others like them would be almost impossible to answer with a simple soundbite, but we’re hearing them all at once at a time when experts are flagging this as uncharted territory.

In today’s environment, beyond sustaining vital supporter relationships, nonprofits are leaning into why their mission is still relevant, or maybe even more important than before. The urgency posed by funding uncertainties can lead stakeholders to ask existential questions about the sector’s sustainability.

We must reinforce the relevance of our work and make the abstract feel concrete.

It’s time to emphasize and illustrate how philanthropy enables positive outcomes for society’s most vulnerable populations: first-generation students, those from low-income families, and other marginalized groups that feel under attack. Generic appeals won’t work in this moment; our supporters will respond to personal stories that inspire, motivate, and engage.

That said, we also need to be transparent about our challenges. The pressures exerting themselves on the charitable sector are playing out across the country, and we need to share openly how our own organization is responding. This doesn’t mean airing grievances or playing the blame game. Our donors look to us for inspiration, joy, engagement, and impact. Our donors hail from a range of ideologies and opinions, and taking political positions may not serve our cause unless we’re in an advocacy or social justice organization.

A steady flow of communication will keep us in the forefront of donors’ minds, but messages must be managed and curated thoughtfully. In large institutions, it’s easy for the volume of uncoordinated communications to feel like a tsunami followed by a drought when what we seek is closer to gentle waves lapping the shore delivering reinforcing ideals. We should consider a longer narrative arc of storytelling and place each individual appeal on that arc with an eye toward brand alignment and a consistent voice. This approach keeps donors feeling connected without messages appearing to come from completely different colleges.

Even if it’s not the right time for certain individuals or segments to be asked, never miss opportunities to express gratitude in ways that are authentic, personal, and sincere.

For annual donors, messages like “Here’s what we achieved together” reinforce strength in numbers. Spotlighting loyal supporters and peer role models can prompt action, as even modest givers can see themselves in the future of our organizations. Finally, maximizing interactive touchpoints – events, town halls, tours, behind-the-scenes briefings – telegraphs the importance we place on our benefactors’ generosity.

The youngest baby boomers turn 61 this year. For many in this cohort, economic uncertainty couldn’t come at a worse time. Staring down retirement is a rite of passage rife with angst, both financial and emotional. Even those who did well financially may be enjoying the current bull market but feel whiplash every time the major indexes dip. This a perfect scenario for blended gift conversations.

Although data aren’t perfect, planned giving professionals estimate 90%+ of estate gifts are simple bequest intentions. These generally uncomplicated commitments may be revocable, but they aren’t often changed and it’s common for a campus to realize a larger gift than the donor expected or disclosed. For philanthropists who’ve already included us in their estate plans, we need to have encouraging conversations about documentation so we can celebrate these generous philanthropists while they’re still able to enjoy our thanks. And don’t forget about the $251 billion currently held in Donor Advised Funds, according to the National Philanthropic Trust.

There is no playbook for the level of economic and financial disruption Americans currently face. The tools we use as fundraisers will help both our supporters and our organizations sustain our shared commitment to philanthropy that changes lives. Our stock in trade includes candid and frequent communications; listening more than we talk; conveying authentic gratitude; and a laser focus on our institution’s mission, values, and impact. There have always been shiny objects that distract us from these fundamentals, but there’s a reason we come back to them.