Easier Said Than Done: Face Hard Times Without Fear

If you’ve checked your 401(k) balance lately, you might have tasted that metallic tang in the back of your mouth that signals raw, animal fear. It’s not a nice feeling. It’s a feeling that can make you want to do something wild, like grab what’s left of your money and hide it in your mattress.

Don’t. Trust me — it’s totally uncomfortable. And the Mattress Plan is going to play even worse havoc with your retirement than the economy has.

Things are scary all over right now. Chances are, your organization is suffering a drop in revenue, whether from individual donors, corporate supporters or government sources — maybe all of the above. Some nonprofits already have shut down. Undoubtedly, more will in the coming months.

But please — be not afraid.

Actions made in fear are almost always destructive. As Franklin Delano Roosevelt famously said, “The only thing we have to fear is fear itself.” He knew that a whole bunch of people freaking out could do a lot more damage than a tough economy could.

Well, surprise: The fear-driven fundraisers who make up so much of our industry are freaking out. They’re going into hibernation, hoping to wait this thing out. They’re making it much, much worse for themselves.

But in a way, their absence can be good for the rest of us. Those fear-based cuts mean a less crowded fundraising marketplace and less junk in the mailbox. It also means printers, mail shops and broadcasters, facing less business, are more willing than ever to cut us deals. This might be a time when we can spend less to get more.

It’s easy for me to tell you not to be afraid. But you have to navigate through this craziness. So let me give you a few more pointers that can help you keep your courage up in hard times.

Don’t cut donor acquisition
Cutting acquisition is tempting. It’s the most costly fundraising activity and the one least likely to produce immediate positive net revenue. When cash flow gets tight, your money people might zero in on acquisition.

Don’t let that happen! Acquisition is the worst possible thing to cut. It saves a few dollars today but will hurt you for years into the future. For every three donors you don’t acquire now, that’s one high-producing core donor you won’t have three years from now. The hole that will make in your future revenue is irreparable; you can’t go back and redo lost opportunity.

Think of it this way: If the economy turns around tomorrow, an organization that’s been cutting acquisition will stay in its own recession for two or even three more years.

If you have to make cuts, look first at marketing activities that produce no measurable returns.

Even in flush times, the rationale for spending nonprofit marketing dollars on “awareness” and similar hard-to-measure activities is pretty shaky. Establishing causality between “awareness” and revenue requires a good dose of marketing snake oil. When money is tight, justification for that spending goes from uncertain to untenable.

Spend your limited funds in areas that have clear chances of generating some kind of real-world, measurable returns.

Don’t act like it’s not happening
Some folks are advising fundraisers to avoid mentioning the economy. Because, they claim, doing so will “remind” donors that things are bad, which will nudge them toward not giving.

That’s nonsense. Can not mentioning the elephant in the room lull people into forgetting it’s there? Donors aren’t dummies; they live in the same world we live in.

Being relevant is one of the most effective “tactics” you can practice in fundraising. Pretending the biggest economic crisis in recent memory isn’t happening is a stunning exercise in being irrelevant. You might as well show your return address as 1 Fluffy Dreams Lane, Cloud-Cuckoo Land.

When it comes to the economy, your messaging probably falls into one of these categories:

• Because of the economy, the need for our services is extra high.

• Because of the economy, giving to our organization is down.

• Both of the above.

• None of the above (i.e., our nonprofit is based on planet Neptune).

Tell the truth about the facts you face. Openly share any hope those facts make you feel. This is yet another way fundraising is so much cooler than advertising: Truth works. You don’t have to build a false edifice of brand and hide behind it like a frightened rabbit. In fact, if you do, people see through it and respond less. The best approach always is to be real.

Treat donors right
Your donors are your most valuable asset. Yes, that’s old news. But in hard times, their value to you grows. So make sure you give them your best:

• Give them choices. Let them choose where their money goes. Let them decide how you communicate with them. Don’t be afraid — most donors don’t exercise these choices, much less make the choices you’re afraid they’ll make. Merely offering choice has a positive and measurable (yes, I’ve measured it) impact on your relationship with them.

• Close the loop. Every time they give, make sure they find out what you did with their money. Tell them stories about the impact of their giving. Be detailed, specific and emotional. You’ll stand well above the crowd of charities that grab their checks, deposit them and then go silent until it’s time to ask again.

• Treat their giving with respect. Receipt promptly (24-hour turnaround is not asking too much!). Be heartfelt and genuine with your thanks. And don’t screw up their data!

• Keep asking. Unless donors specifically tell you they don’t want to hear from you or they can’t give, you should be asking. Assume they want to give, that their giving makes them happy. Recession or not, donors love to donate. Don’t let the atmosphere of pessimism and fear obscure that for you.

Get innovative
This could be your best chance to do cool new things that really change the game. Times of pain and disruption often are. Maybe people get more open-minded. Maybe the idea-killers retreat so far into their shells that they can’t get out to squish new ideas.

Whatever it is, seize the opportunity. Try some of those great ideas that the bean counters shut down in the past. Brainstorm for new ideas. Steal ideas from others who are ahead of you. Just innovate!

Focus especially online, where the cost of entry is relatively low, the penalty for failure small, and where many donors go whether you’re there or not.
You can’t make fear go away just by waving a wand. You may need to just pretend you aren’t afraid and act like you’re not. By doing that, you’ll make your courage grow.

Jeff Brooks is creative director at database marketing agency Merkle and keeper of the Donor Power Blog. Reach him at jbrooks@merkleinc.com