During the past two weeks we have been
bombarded with horrific pictures, video clips, and stories
of the worst natural disaster in U.S. history. Hurricane
Katrina has caused a dramatic wake-up call to the issues
of poverty and race in America, and has unveiled the ineptness
of our government bureaucracies.
But, the outpouring of food, clothing, money, and other
resources from individuals and organizations in an effort
to relieve the suffering is unprecedented. Americans have
already contributed over $788 million to the hurricane relief
efforts with millions more coming in every day. In the 10
days after the September 11th World Trade attack in New York,
Americans donated $239 million; and in the nine days after
the Asian tsunamis, Americans raised over $163 million.
The great surge of philanthropic support from corporations
has been equally dramatic during the past two weeks. Wal-Mart
donated $15 million, General Electric donated $6 million,
Coca- Cola donated $5 million, and Michael and Susan Dell
donated $5 million. In addition, the government will probably
provide over $100 billion for relief efforts.
Non-profit leaders are concerned (and rightly so) about
the impact this huge swell of giving will have on local and
regional fundraising. We can certainly expect, and should
prepare for a dip in giving during the
next three months. The other issues that should be factored
into the equation are the price of gas and the spending on
the war in the middle east, which are already causing a downturn
in the economy and in people's discretionary income.
What are charities to do? How can we prepare for the future?
What have we learned from previous disasters that can be
applied to what we're dealing with now?
- Take a long-term view. In relative
terms, Katrina will impact non-profit agencies for the
short term. Within six months, charitable giving should
be back to what it was prior to the hurricane. Just remember
that there are always going to be unforeseen changes in
the economy, so your best insurance policy is to have a
long- term and diverse fundraising strategy in place.
- Government supported contract plan. We
will soon begin to see a slow-down of public and federal
dollars to non-profits because these dollars will be redirected
for the efforts to help the victims of the hurricane. This
will cause some of the contracts and fee-for-service dollars
to be delayed and could seriously impact the cash-flow
and payroll requirements of non- profits. Create a cash-flow
contingency plan now through your bank, credit union or
perhaps a community foundation.
- Design a contingency plan. Make sure
you have a "back-up" plan in case philanthropic giving
takes longer than anticipated to turn around. Look at where
you could cut expenses (and don't necessarily jump to cutting
staff). Identify some potential donors and friends who
you could appeal to during an emergency and line up their
potential support before you need their help.
- Stay the course. Revise your revenue
projections and schedule, but don't cancel direct mail
appeals, fundraising events, and grant proposals entirely.
If your organization is involved with programs that serve
the poor and minority communities, it is likely that you
could make the connection between the disaster in New Orleans
and the critical needs in your community.
- Don't spin your pitch. Unless your
organization is directly involved in relief efforts or
is somehow connected to the hurricane affected areas, don't
try to "spin" your organization's mission to somehow fit
with the money that's being raised for the Katrina victims.
This strategy is likely to backfire.
- Keep your team together. A huge relief
effort failure was in dividing families and scattering
them across the country. This disunity is unhealthy for
developing a strong community. The same can be said about
your organization. Take great care in times of uncertainty
to pull your team (staff, board, volunteers) together and
spend extra time strengthening your relationships. And
take time to reach out to your supporters in a personal
way during the next three months.
- Focus on your mission and needs. Despite
the emotional distraction of Katrina, your current supporters
really care about your mission and programs. Make sure
you focus on this and communicate with them more often now than
ever before. Send them e- mails, newsletters and don't
be afraid to send them an appeal during this time.
- Prioritize close to home. Kim Klein,
publisher of "Grassroots Fundraising Journal," says that
you already know all the people you need to know. Focus
your time, energy, and resources on deepening the commitment
and involvement of your existing friends and supporters
rather than prospecting for new donors.
- Back-up your data. We learned from
9/11 and Katrina that the only certainty is uncertainty,
and the only things is life that are predictable are unpredictable.
Make sure you are backing up all of your databases, files,
e- mails, servers, and other important information. You
never know when a disaster will hit your community or neighborhood.
- Communication strategy. Cell phones
and land-line telephones were down in much of southern
Louisiana. Try to have a back-up communication strategy
so you can communicate with all of your staff and board
members in case disaster strikes in your neighborhood.
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