As we head into the last quarter of the year, the time during which most individuals donate to their favorite charities, it’s a good time to assess how well these charities have been faring during this difficult economy.
Last month, the Nonprofit Research Collaborative released a report based on a survey that addressed changes in charitable giving, and the types of fundraising methods used by these nonprofits. More than 75 percent of the responding charities have total expenditures of less than $1 million, similar to the size of Sonoma Valley’s nonprofits.
The study reported that 44 percent of respondents saw an increase in funds in the first six months of 2011, as compared to the first six months of 2010; 25 percent said giving was the same; and 30 percent saw a decrease in funds.
Although economic times are still tough, several Sonoma Valley nonprofits are doing much better this year than last. Carolyn Stone, board chair of the Sonoma Valley Hospital Foundation, stated, “We have a 58 percent increase in donations from 2010 to 2011. I believe we will do well in 2011 because the public needs the hospital and are willing to give.” Yvonne Hall, executive director of La Luz Center reported, “We’re up substantially from fiscal year 2010, a year which was quite difficult for us. The climate is trickier and there is more and more competition for charitable dollars in this area.”
Vintage House has also fared quite well compared to last year. Executive Director Cynthia Scarborough said, “In the first six months of 2011, membership revenues are up 28 percent and our charitable donations have increased by 10 percent compared to the same period in 2010.” She added, “Many donors may be feeling more ‘at home’ now with the continuing economic uncertainty.”
Respondents to the survey indicated that they use a wide range of fundraising methods. Specifically, 90 percent of responding charities raise funds from corporations and foundations. About 80 percent use the methods of asking board members, seeking major gifts, conducting special events, and direct mail. Just over 60 percent use on-line fundraising (excluding Facebook and Twitter) and email. About 45 percent reported using social media, such as Facebook or Twitter. Planned giving was also used by about 45 percent of the survey respondents.
While 25 percent of respondents saw an increase in planned gift commitments, 46 percent of responding charities saw an increase in funds obtained through special events. “Given the economic state most households are in,” noted one respondent, “offering an opportunity for a family or couple to get out, have a good time and know that the money they are spending is giving back seems to be what is working best at this time.”
Sonoma Valley nonprofits frequently use special events as successful fundraising methods. Matt Martin said, “Our main fundraiser, the SAY Sock Hop, was held in March for both 2010 and 2011. We saw a 16 percent increase in contributions in 2011 at that fundraiser alone.” La Luz Center also saw growth from special events. Yvonne Hall commented, “We recently put on the freshest, most exciting fundraising party we could (Noche en Copacabana), and marketed the heck out of it from a very early point.”
Carolyn Stone stated, “The successful methods we are using to raise monies are direct mail, a very special event called Dancing with the Stars, and personal contacts with people who are interested in helping the hospital. We always do better in-person.”
Cynthia Scarborough said a huge increase in donations is largely attributable to a better response to this year’s mid-year appeal. “And,” she said, “We have certainly benefited from increased community awareness of Vintage House through our expanding array of classes and services.” Yvonne Hall added, “We’re making the materials we distribute to our donors and friends as informative and engaging as possible.”
Regarding their thoughts on strategies for fundraising through the remainder of 2011, 67 percent of survey respondents reported that they plan to focus on large-scale efforts to reach many people through direct mail, special events, and on-line campaigns.
Matt Martin said, “Nonprofits must have a diverse stream of fundraising. Events, mail, campaigns all have varying returns. The trick is to put your efforts where your particular community responds. Everyone is different, so it is incredibly important to listen to your supporters.”
Yvonne Hall said, “I wish I had a crystal ball,” when asked about La Luz’s future fundraising success. She added, “Like most of my colleagues in Sonoma, I’m hoping for the best, but preparing for the not-so-great. At the very core of things, nonprofit organizations are businesses that have to be run like businesses and our belts remain pretty tight. We don’t have shareholders, but we do have hundreds of clients counting on us.”
Dr. B.J. Bischoff is the owner of Bischoff Performance Improvement Consulting, a Sonoma firm specializing in building the capacity of nonprofit organizations and government agencies to better serve their stakeholders. She is President of Impact100 Sonoma and can be contacted at bjbischoff@bjbischoff.com.
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