The Effect of the Economic Downturn on Non-Profits

I serve on the board of a local non-profits and am involved with many others.  One question a lot of folks involved with non-profits are pondering these days is, how will the grim economic news impact non-profit fundraising?

Experts argue that the impact will be limited, especially in historical context.  Yet, stories are circulating about non-profits struggling to raise money and feeling pessimistic about fundraising efforts.

Next week I need to motivate my fellow board members to keep working on our largest fundraising campaign of the year.  It's hard when every time I turn on the radio or open the paper I seem to learn more depressing economic news.  My usual motivational tools, cupcakes and tokens gifts, are only so effective.

I plan on looking deeper into the advice, tips and suggestions that seem to be everywhere.  A number of sources agree that continuing to ask, cultivate and acquire new donors is essential.  

Has the economic news changed your giving? What does effective solicitation look like to you in this economy?