Advice from Professional Fundraisers
The American Enterprise Institute recently published an analysis that charitable giving will decline by $16.3 billion next year because of the new tax law. I find predicting the future a risky business especially in the work that we do as professional fundraisers. Days after President Trump was elected, a number of respected people in our field also predicted a steep decline in giving based on perceived beliefs on what would happen in this country.
The truth, however, is that giving will continue to increase because the need continues to grow. We may have a shrinking donor population but that is a subject for another blog. When unemployment is low and people are happy with their financial holdings, there is a greater comfort on the part of donors to give. As professional fundraisers, we’ve seen so many times through the years that giving can change in a second depending on what is going on.
When the market has a major drop or when there is a catastrophic world event, that’s a concern. It changes the donor’s perception of what their reality is and then they are more hesitant to give, BUT people still want to do good and will continue to do so. We have more nonprofits than ever and more professional fundraisers, too. In NYC last week there were over 2,000 people at Fundraising Day. That’s a lot of organizations and people working for a greater good.
I’ve never done a studied analysis of the tax law (though it was my favorite class in law school) and its effect on giving. I do, however, continue to talk to major gift donors to see what is important to them, why they give and where they give. In the last few months I’ve hardly heard a donor talk about the tax code. Will it affect some — probably? Will it affect the majority of donors in your nonprofit development plan — doubtful.
For as long as I’ve done this work, I’ve learned that there is never a good time to ask for money. When things are not going well, donors guard their finances. When things are going well, they tend to give more and invest more which also ties up resources.
If you believe that things will be worse next year then you may predict your own future. Your peers, who are optimistic, will otherwise continue to thrive and grow. Which side of the fence are you sitting on?
“Do not be one of those who, rather than
risk failure, never attempts anything.”
Written By: Paul D’alessandro
Founder And Chairman
