Recession Worries

As if nonprofit life was not stressful enough, we're dealing with some economic uncertainty and a lot of talk about recession.

The good news is that this isn't a typical recession: it's being created on purpose by the Federal Reserve to bring down inflation. That means that unemployment and other issues in a normal recession have not made an impact up to this point. Since unemployment is low and wages are up, people still have money to give to their favorite nonprofits. 

While we can't control everything, here are four things you can do now to help get your nonprofit ready for any economic uncertainty.

1. Ask for Support With Confidence

Never be afraid to ask for money, especially at the end of year. Even if you personally feel overwhelmed, stressed, or uncertain, know that there are people out there who WANT to support what you do. Tell your story and ask for support with confidence no matter what! The more specific you can make your end of year campaign, the better. 

2. Curate and Retain Your Donors

Consider using a private donor platform like Patreon to add something extra for your recurring donors. Patreon and similar platforms can encourage donor loyalty and give you an additional way to connect through monthly threshold incentives and the ability to share photos, videos, and stories with your closest supporters. Patreon offers different monthly giving options, so you can plan your income with more accuracy. Meta (Facebook) also allows monthly, recurring donations.

3. Develop and Implement a Grant Strategy

If you don't already pursue grants, this is the perfect time to start. Earning grants diversifies your income streams so that you don't feel so dependent on donors and social media throughout the year. Remember that going after grants takes time. So, start by going after grants to supplement what you are already doing. 

4. Prepare for Emergencies

Although things are already stressful for most nonprofits, it's good to be prepared for a possible sustained downturn. This means having one or more emergency funds. I have seen nonprofits successfully fundraise to create such funds. Donors can be very supportive of assisting with helping prepare your nonprofit for the future. Some possible emergency funds can include an Emergency Rescue Fund and an Emergency Medical Care Fund. Many banks will allow you to create multiple savings accounts under your main account and name them. This will ensure you are able to keep the funds separate. 

Going Forward

Although the idea of a recession isn't necessarily pleasant, recessions are a normal part of any economy. During every recession, there are nonprofits that not only survive but thrive by offering valuable resources to their communities. With some planning and a positive mindset, your nonprofit can and will make it through any difficult times ahead!