Over the last two decades, the economic conditions facing nonprofits have been shaped by a huge recession stemming from the housing crisis, a slow economic recovery, and a worldwide pandemic spurring another recession. Nonprofit organizations need to be recession resilient in order to survive and thrive when the economy is unpredictable.
During this time, technological advancements have also affected the nonprofits sector, particularly in the area of online fundraising and communication. The internet and social media have made it much easier for nonprofits to reach a wider audience, and to raise money and awareness for their cause. The development of robust CRMs have made tracking and engaging with these new donors more effective and efficient.
So, how do nonprofits become recession resilient? And how can CRMs like ResultsPlus help?
Diversify your funding sources: Don't rely on just one or two sources of funding. Instead, diversify your funding sources to include government grants, corporate sponsorships, individual donors, planned giving, and other streams of revenue.
Build a strong donor base: Cultivate a strong donor base by regularly engaging with donors, thanking them for their support, and sharing updates about the impact of their donations. This can help to build loyalty and encourage continued giving. ResultsPlus has the tools to build a strong donor base.
Control your expenses: Look for ways to cut costs and streamline operations, without sacrificing the quality of your programs or services. This can include everything from reducing staff travel to negotiating better rates with suppliers.
Build up your reserves: Try to build up a reserve fund that can be used to weather economic downturns and unexpected expenses. This can help to ensure that your organization has a financial cushion during difficult times.
Stay up to date on economic trends: Keep an eye on economic trends and be prepared to adjust your fundraising and program strategies as needed. This might include shifting your focus to online fundraising, for example, or partnering with other organizations to pool resources.
How can ResultsPlus help you achieve recession resilience?
Increased donor engagement: ResultsPlus can help nonprofits keep track of donor interactions and communication, allowing them to personalize and tailor their communication and fundraising efforts, resulting in increased engagement and more donations. This helps to build a strong donor base.
Improved donor retention: With ResultsPlus, nonprofits can easily track donor information and giving history, allowing them to identify and target donors who are most likely to give again, resulting in improved donor retention rates.
Streamlined fundraising efforts: ResultsPlus can help nonprofits automate and streamline fundraising efforts, such as creating and sending personalized donation requests, reducing administrative work and costs, so they can focus on building relationships and raising more money.
Better reporting and analytics: Nonprofits need to know when a recession is causing donations to dry up. ResultsPlus can provide nonprofits with detailed reports and analytics on their fundraising efforts and donor engagement, allowing them to identify trends and patterns, make data-driven decisions, and improve their overall performance.
Economic uncertainty may be here to stay. Fortunately, a CRM like ResultsPlus can help your organization become resilient in the face of recession.