Target Index documents giving decline

Target Analytics has released its 2008 Q3 Index of National Fundraising Performance. (Keep in mind that the period covered was prior to the biggest one-day decline in the stock marketing during 2008.)

Index revenue declined a median -1.1% from the first three quarters of 2007 to the first three quarters of 2008. This continues a pattern of decline that began in the last edition of the index in Q2 2008, when revenue declined -2.4% from the first half of 2007 to the first half of 2008.

Relief and animal welfare causes gained ground. Target Analytics provides the most contemporary data on direct marketing results among major non profit organizations. (Full disclosure: our firm does the back-end analysis for Target’s public radio and most public television clients, but we are not involved in the National Index.)

NP Sector personnel strategies during recession

During the Chronicle of Philanthropy’s on-line discussion on the recession and the non-profit sector, Richard Marker, principal at Marker Goldsmith Philanthropy, was asked about the agency management strategy of putting employees on contract. His advice, given my own experience, was excellent.

My own view is that it is a short term savings to reduce support for those you can still employ. It is better to fully invest in fewer employees than short change and antagonize many.

When I managed an organization during a recession, we quickly learned to get the bad news out of the way, reduce staff, and assure those who remained that it was our expectation that they would continue to have a job. The steady drip-drip-drip of bad news sets up uncertainty throughout the organization, damages morale, and virtually guarantees that you will lose your best people-those you most need during the bad period.

Chronicle experts peer into crystal ball

The Chronicle of Philanthropy hosted an online discussion, Outlook for 2009: What the Recession Will Mean for Your Organization. Among the findings:

• Foundations will focus on those with whom they have a relationship.
• Not all organizations will be affected in the same way, and many donors continue to give generously.
• Donations that depend on stock gifts will lag improvement in the market.

Also included, some great tips on strategies to survive and present your case.