During the past few weeks a sense of panic has settled in around the issues of housing foreclosures, the loss of value in the international and national stock exchanges, and the economic stimulus package. Most economists are saying we are either close to or are in a recession that could last more than a year.

Individual giving is 85 percent of total philanthropic dollars and is primarily predicated on how the individual who is giving the money feels about the economy. Most private foundations are invested in a decreasing stock market. So, how should non-profit organizations prepare for this recession if they haven't already prepared? What should your contingency plan be? What can you anticipate and how will you provide leadership to your organization?

Let's look at some ways to prepare for this less than certain future.

1. Make it personal and stay in touch with your donors. When donors feel insecure about there future they tend to pull back on their donations with the exception of faith-based giving that has about an 18-month lag-time. It is important to get closer to your donors by doing such things as calling them by phone and thanking and updating them, inviting them to tour your building, or having breakfast briefings a few times during the next six months.
2. Don't rely as much on direct mail. Studies suggest that direct mail donations have been either flat or decreasing over the past few years.
3. Foundation income is likely to decrease as investment portfolios take a hit. Obviously, there are some foundations that will give more than the required 5 percent but most of them will probably decrease the amount they give and be more focused in their grant giving. Your program officers should gather as much information as possible so you can develop a contingency plan for this soon.
4. Create a monthly e-newsletter for all of your donors, friends, and stakeholders that will keep them in touch with what is happening in your organization. Begin to collect as many e-mail addresses as you can.
5. Redefine your major donors downward so you have a larger base of "high touch donors." If you define your major donors now as $500 try to lower this to $250 so you will have a larger pool of donors to cultivate and ask in personal ways.
6. Rely less on corporate philanthropy and more on corporate sponsorship and marketing dollars. On average, corporations give about 1 percent of pre-tax earnings to philanthropy. This might decrease even more. What is likely to increase is sponsorship and underwriting dollars for your special events.
7. Increase your fundraising capabilities and invest more time and money in your database, attending a workshop or training session, and increasing your development staff. Realize your costs may increase a bit during these times.
8. Donors are looking for increased involvement and less checkbook philanthropy. Increase opportunities for your donor prospects and your donors to become involved in volunteering, special events, and committee assignments.
9. Develop contingency plans that answer all of the "what if" questions in terms of reduced revenue. Can you use volunteers where staff was functioning in good times? Are there opportunities for board members to play more technical roles?
10. Focus more on a "few major donors" and increase the personal time you spend with them. They could be lifesavers that carry you through when times are tough.