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Should we conduct an Annual Campaign? The Answer is YES, YES and YES!!!

November 2009

 

But, we are a really small organization: YES
But, we are a really large organization: YES
But, we are a new organization: YES
But, we are a long-standing organization: YES

I hope at this point I have communicated that organizations large and small, new and old should conduct an Annual Campaign. It has been my experience that organizations sometimes look for excuses not to conduct a campaign. I have heard everything from “we are understaffed,” “we already have 8 events” and, my personal favorite, “our community is different.” All of these reasons prevent growth and tend to keep an organization in a reactive mode of development as opposed to a proactive mode. Perhaps the idea of an Annual Campaign can be overwhelming and somewhat daunting. In this article I hope to reveal to the reasons why an organization should conduct a campaign. Next month, (after you have decided to conduct a campaign) I will share some simple steps on how to realize success with your annual campaign efforts.

Annual Campaigns can be defined very differently. In the context of this article, however, we are referring to an Annual Campaign as a board-driven fundraising effort or appeal that seeks unrestricted operating funds from primarily individual donors, but also from foundations and corporations.

I believe that when talking about Annual Campaigns and seeking gifts one should first consider from where the money is currently being given. Please see the chart to the right that indicates that nearly 75% of all philanthropy comes from individual donors. This is an under-solicited donor base in many organizations. How many times in your organization do you seek corporate sponsors before individual donors? At DNS Associates, we believe that in order to have a diversified annual campaign your funding chart should be similar to the pie on the right.

The Annual Campaign allows an organization a unique opportunity to target individual donors and receive funds from this donor group that without a campaign would be difficult to reach. Prior to beginning a campaign, it is of critical importance to recognize that the majority of solicitations will be directed towards individual donors as this group makes up the largest segment of the donor population. Now that we have established where the funds are located, let’s discuss why an organization would want to conduct an Annual Campaign.

  1. Sell the Mission!

    Annual Campaigns provide an organization the opportunity to sell the mission-- not a ticket. Too often in smaller nonprofits a society of ticket buyers is created rather than a society of donors or investors. Nonprofits sell tickets to a gala, some organizations sell raffle tickets and others sell foursomes for a golf tournament. These groups generally do a good job in selling and yet the only mention of the organization is “it’s for a good cause.” Through these opportunities and experiences donors or “ticket buyers” never connect to the mission or the vision of the organization. They play in a tournament, have a nice dinner or simply toss away raffle tickets. They seldom really learn of the good an organization does for the clients they serve or the impact the organization makes in the community. The Annual Campaign allows an organization to connect donors to their clients, their programs and, most importantly, their mission. Through personal face-to-face solicitations for unrestricted gifts a dialogue can occur and the donor has the opportunity to learn why they should make a gift and the value of that gift to the organization and the community. When a donor fully understands the mission, the impact, and the case for support, a sacrificial gift will be made.

  2. Move donors up the giving pyramid!

    Having an Annual Campaign and taking the time to connect donors to the mission will allow the organization the opportunity to move donors up the giving pyramid. Please take a look at the diagram to the left. At the bottom of the pyramid is “events”-- this is often where donors enter the giving cycle. These are the people that attend an event for an organization and make a token gift. Once someone has attended an event, it should be the goal to convert the event attendee into an annual donor. This takes cultivation and stewardship. Once the donor has been secured as an annual donor, time should be spent on developing a meaningful relationship. Over time and as the donor’s relationship with the organization deepens these donors often become major or capital donors and will hopefully one day make a planned gift to the organization. A planned gift is the pinnacle of effective development. Individuals only make planned gifts to organizations in which they feel a deep and meaningful connection. Donors don’t often move directly from an event attendee to a planned gift donor; time must be spent fostering a relationship and moving the donor up the pyramid. It should be the goal to move all donors up the giving pyramid in a manner that would lead to a planned gift. The Annual Campaign is the perfect vehicle for driving that process.

  3. Cost- Effective! Annual Campaigns are the most cost-effective form of development.

    Because an Annual Campaign relies on face to face solicitations, there is little cost associated with conducting a campaign. It is not necessary to spend an enormous amount of money on expensive solicitation packets. An organization only needs a carefully outlined case statement and intent to give or pledge forms. Unlike events, where an organization has to spend $30, $40 or sometimes $60 per attendee, the annual campaign does not have these associated expenses thus allowing more of the gift to be directed to the organization and clients. Also, because Annual Campaigns are board driven, an organization operating with a small or non-existent development team should be capable of conducting a campaign.

  4. Why Not?

    Why would organizations not provide individuals in their community the opportunity to invest in the organization? Both board members and staff members are likely proud of the organization and feel great about the services the organization is providing. If that is the case, they should invite others to invest and give. While fundraising is a little of art and a little of science one truth remains constant: If an organization does not ask for gifts, an organization will not receive gifts.

After reading this article, it would be my hope that you cannot wait to begin your campaign! The benefits of conducting a campaign by far outweigh any potential negative consequences. If an organization is truly planning for the future an annual campaign is not optional; it is essential. The campaign will allow an organization to focus on the mission and connect with donors while developing meaningful relationships that will lead to long-term success and sustainability.

Please see next month’s article on the “Nine Phases of a Successful Annual Campaign” or attend one of our webinars on Annual Campaign Planning & Execution. Sign up at www.theperfectnonprofit.com. If you would like to request an individual meeting to discuss Annual Campaigns, please contact me at 910-540-2593 or misty.cato@dnsassociates.com.

 

 

 

The Lessons of the Yellow Brick Road

By David F. Condon
Chairman and CEO, Diversified Nonprofit Services, LLC

November 2009

Soon, however, you begin to encounter more serious obstacles. You find yourself in the deepest, darkest, forest and confronting the infamous Lions and Tigers and Bears, Oh My! These dangerous animals have the potential to derail your entire project and put a premature end to your trip down the Yellow Brick Road to success.

Lion and Tigers and Bears, Oh My!

Should Be Feared But Can Be Overcome Through Effective Planning And Anticipation

  1. Ineffective Weak Programs
  2. Failure to Improve a Negative Image
  3. Failure to Get You Message to the Community
  4. Weak Ineffective Leadership
  5. Lack of Clearly Defined Roles for the Executive Director and Board of Directors
  6. Lack of Planning
  7. Lack of Clearly Assigned Responsibilities for All Tasks

You’re Melting, Melting, Melting! The Wicked Witch of the West

Finally, you may find yourself facing the most dreaded obstacle of all, The Wicked Witch of the West, who with a single sweep of her broom can doom your journey to defeat causing you to wonder aimlessly. Not knowing in what direction to turn. It is these later more difficult obstacles which must be anticipated prior to departing on your trip and for which contingencies must be put in place in anticipation of encountering them to insure that they do not block the road to your success.

These Will Kill Your Project

  1. Lack of Board Support for the Project
  2. Failure to Establish the Need
  3. Lack of Follow Through
  4. Confusion Surrounding the Responsibility for Assignments
  5. Lack of Community Involvement and Ownership
  6. Failure to Anticipate All of the Above

Once you and your organization have traversed this road and have risen to meet every challenge; once the Lions and Tigers and Bears are no more and the Witches of the West have melted into obscurity you are faced with perhaps the greatest challenge of all, unlocking the gate to the Emerald City so that you can come face to face with the Wizard. Once given this audience you must then convince the Wizard to help you attain your final and ultimate goal. It is at this juncture and this juncture only that you come to the realization that there is no special magic in Oz, there is no one Wizard who has all your answers, and there is no mythical formula that dictates success.

You come to understand that what you needed to succeed is what you have had all along. It is the belief in your cause, the belief in your volunteers, the knowledge the you are fulfilling the needs of your community, and the belief in your organization which enables you to overcome each and every obstacle along the way. It is these same beliefs which must be conveyed to all the Wizards of this world in order to secure their help in making your dreams come true and which will make your organization ultimately successful in accomplishing its’ mission.

 

The Lessons of the Yellow Brick Road
The Road To Oz Is paved With Good Intentions

By David F. Condon
Chairman and CEO, Diversified Nonprofit Services, LLC

September 2009

Follow the “Yellow Brick Road” to the Land of Oz where all your troubles will be gone, there are no worries, and only happiness and good feeling abound. A land where there is only success and a benevolent old wizard has the answers to all of your problems.

You may ask yourself; what on earth does this mythical Land of Oz, from L. Frank Baum’s classic children’s story, have to do with fund raising, today. For many, I am afraid, the expectations that come with a new fund raising project and Dorothy’s journey down the Yellow Brick Road are cut from similar fantasies. However, if we can employ some childlike imagination and a keen eye for imagery much can be learned from the metaphors and symbolism which inhabit Baum’s timeless tale.

Stop, if you will, and reflect on your feelings when embarking on a new fund raising project. You, your organization, and your volunteers are filled with the hope and expectations of success which will see all your needs met and which will result in a happy ending. So too, did Dorothy start out from Munchkin Land down the Yellow Brick Road with these same hopes and expectations.

In the first stages of her memorable journey Dorothy encountered the Scarecrow, the Tin Woodsman, and Cowardly Lion, fellow travelers, who like herself were looking for the answers to their questions, the solutions to their problems, and were willing to traverse the Yellow Brick Road to have their needs met as well.

You too, will encounter fellow travelers in your quest for Oz. The travelers you encounter also have needs and wants and are striving to attain their goals and they have embarked on their journey with the same expectations of success which inspired your trip. Thus the journey begins for you and for your organization and those like you, all certain that the Wizard will have the means, will, and desire to provide for all your wants and needs.

Obstacles To Avoid On Your Trip To Oz

An Apple A Day?

The journey to Oz commences with the carefree attitude and abandon which marks the start of all journeys. However, very soon you begin to encounter obstacles along the way. At first they may be small obstacles which like the apple trees that were tricked by Dorothy and the Scarecrow into throwing their delicious fruit at them, can actually prove to be a benefit to the trip. These minor obstacles can be easily overcome and through effective planning and management techniques can in many cases actually be turned into a benefit for your journey.

Apple Tree Obstacles

Easily Overcome and May Even Prove Beneficial

  1. Lack of Community Image
  2. Lack of Community Awareness
  3. No Knowledge of Your Volunteer Leadership
  4. Lack of General Knowledge
    • Number of People You Serve
    • Number and Types of Programs You Offer
    • Successes You Have Achieved

 

Abracadabra, Kalamazoo, Bing-bang, Wow!
Planning a Special Event? Here is how…Part 2: The Devil is in the Details

September 2009

Part 1 was published in August 2009 and can be read below.

As noted in an earlier article people in the non-profit world can be divided into two groups. Those that love special events, or those that hate them…either way as a non-profit organization it is likely that you conduct various events throughout the year. The events may be for fund raising, public relations, or simply an event for your program participants. Regardless of the reason for the event there are some basic tools and principles that can make conducting an event a less painful and more enjoyable experience. The focus of this article is how to make your event memorable for all participants and not just another dinner, golf tournament, or gala.

Often times the fundraising goal is the primary focus of an event and little attention is given to the actual program or the organization’s role as the host. When planning the event, every detail must be given proper attention to ensure that participants have a meaningful and memorable experience that will guarantee attendance from year to year. Your event should leave a lasting impression on all that attend. Below are a few items to consider when planning events.

Create a Theme

It is much easier to create the mood for an event once a theme has been established. Having a theme allows for creativity and will set the stage for the entire event or program. Once a theme has been developed it will guide decision making for all other facets of the event including; entertainment, food/beverage, programming, marketing material, etc. Communicating the theme to all attendee’s prior to the event can allow for greater participation and buy-in. Some examples of themes are:

  • A Masquerade Ball
  • Take me out to the Ballgame
  • 50’s, 60’s, 70’s, or 80’s party
  • Wild Wild West
  • Hawaiian Luau (A Night in Paradise)
  • Breakfast/Dinner at the Kids Table
  • Academy Awards/Oscars
  • Arggg-a night with the Pirates
  • ...and there are endless others.

Regardless of the theme, it should be your desire to remove your participants from their everyday concerns and immerse them in your event and cause.

Event Opening & Closing

The event opening is important because it allows the opportunity to create a bond with the participants. It should be something that stimulates anticipation and excitement, an attention grabber that leads participants to wonder what will happen next. Having an exciting “opening number” will aid participant interaction, increase enthusiasm, and increase the likelihood of return patronage.

Equally important is the event closing. The closing should leave the audience with a sense of completion. It should enhance the relationship with the attendees, and leave them wanting more. Avoid closing such as, “That’s about it…I guess we are finished…or time to go”. The event closing should reinforce the mood of the event such to create a lasting impression.

Be a Host

Participants should never be left to wonder where to go or what to do next during an event. Much like when you have a guest to your home; it would never be expected for the individual to let themselves in and then locate a beverage or a room. It is important that guests are greeted as soon as they arrive and directed to the correct locations. If someone arrives solo; it is the responsibility of the event planner or event volunteers to connect that individual to another participant. Designated “host” should be placed throughout the event to guide attendees and encourage participation in any activities. Treat all guests as you would a guest in your home. Nametags of some sort are a must at events and help guests feel more comfortable, especially when seated at a table with unfamiliar people.

Provide a Favor or Giveaway

At the end of the event; you will want to provide the participants with a token of your appreciation for attending and something that will reinforce the message of the event. The token need not be expensive but should relate to the overall theme. Ensure the token is something the participant can use and will not toss away immediately. A good example is: a youth serving organization that hosted a breakfast event provided participants with logoed coffee mugs decorated by the children they served. The mugs were fairly plain and inexpensive, but very cute once decorated by the children.

Minor Details = Major Impact

  • Always have more than enough food/beverage
  • Silence is not your friend at an event! Have appropriate or theme related background music, music playing between speakers, ensure a good sound system, and have designated networkers. It is important to keep everyone engaged.
  • Have a well thought out check-in/check-out procedure
  • Rehearse- Have a walk through
  • Never have an empty podium (each speaker stays at the podium to greet the next speaker)
  • Say Thank You- develop a method of follow up for all attendees

These are only a few tips and ideas that will make your event successful and memorable. It should be your goal to be the talk of the town the day following your event. As you plan, ask yourself “Is this something that people will remember and tell others about”? Use this question to assess all aspects and plan accordingly. While events can be a love/hate affair, they should be FUN, ENGAGING, and LEAVE A LASTING IMPRESSION!

 

Abracadabra, Kalamazoo, Bing-bang, Wow!
Planning a Special Event? Here is how…Part 1

August 2009

Special Events, you either love them or you hate them…either way as a non-profit organization it is likely that you conduct various events throughout the year. The events may be for fund raising, public relations, or simply an event for your program participants. Regardless of the reason for the event there are some basic tools and principles that can make conducting an event a less painful and more enjoyable experience.

This is the first in a series of articles on event planning. This article focuses on creating an effective plan.

A central theme through this series will be keeping your events lively and upbeat. The most important item to remember is that ALL special events should be fun, exciting and motivating. Whether you are having a formal gala, a fund raising breakfast, or a carnival in the park, the participants must have an enjoyable experience for the event to be truly successful.

In event planning, a helpful tool is an Animation Plan. The Animation Plan is the programmer’s/planner’s vision of the event in terms of how participants will experience and move through the program/event.

The Animation Plan should include the following 15 components:

<0l>
  • Name of Event- a clever and catchy name should be developed for the event
  • Date
  • Time
  • Location
  • Description and Goal of Event- at the end of the event what are the desired outcomes?
  • Timeline for task completion- all task should be listed
    TASK DATE TO BE COMPLETED PERSON RESPONSIBLE
    Reserve Community Park May 1, 2009 John Smith
    Secure Clown Troup May 15, 2009 Sally Johnson
  • Schedule of Events- begin with set-up and end with the clean-up
  • Leader/Volunteer Responsibilities and Orientation
  • Behavior Control/Crowd Control
  • Description of Attendees- donors, volunteers, general public, organization participants
  • Possible Problems- anticipate any potential problems in event execution
  • Closing
  • Clean-up
  • Detailed Description of Activities- list each activity that will take place during the event and provide a detailed description of how the activity will occur and be managed (e.g., silent auctions, registration, cocktail hour, etc.)
  • Risk Management Plan
    1. Don't apologize for asking: When soliciting gifts for your organization, do not apologize. You are not asking for yourself; you are asking for the individuals/clients the organization serves. Often these are people/clients without voices. As a solicitor you are providing others in your community the opportunity to invest in something that truly makes a difference.
    2. Focus on the real goal: The goal of any fundraising event or campaign should be to significantly impact or change lives. However, we often see solicitors begin a solicitation with "our goal is to raise $150,000". It is important to remember that the monetary goal is simply the enabler and the "real" goal is the outcome the campaign/event will have on the clients served by the organization.
    3. Make your own generous contribution first: It is absolutely necessary that any solicitor first make their own generous contribution to the organization. This not only demonstrates personal commitment but aids in validating the organization.
    4. Face to Face solicitations are ALWAYS the most effective: While it is much easier to send an email, make a phone or write a letter; it is a proven fundraising principle that face to face, one on one solicitations yield a much higher return. Having a face to face meeting demonstrates the importance of the conversation, allows for dialogue, and provides the solicitor the opportunity to convey their passion and commitment to the organization.
    5. Ask for a Specific Amount and Aim High: Be prepared to suggest the maximum amount you believe the prospect can give to the organization. Remind the prospect of the long term benefits to the community.
    6. Say Thank You: Often when organizations conduct prospect research, cultivate and solicit donors they forget to provide the necessary stewardship to donors. It is important that after receiving a gift your organization communicates your appreciation of the gift. A hand written note is only the beginning of appropriate stewardship. Once someone invests in your organization it is your responsibility to communicate with that donor the results of their gift and the impact of that gift to the clients served. Stewardship is necessary to receive future gifts.
    • Facility
    • Equipment
    • Activities
    • Policies/Procedures
    • Facility
    • Layout
    • provides direction for staff and volunteers
    • forces the planner to anticipate and plan
    • identifies problems
    • allows for continuity (makes event reproducible)
    • serves as an evaluation tool
    • provides documentation of the event which, in the worst case, can reduce legal liability.
    • Most nonprofits do not know or understand their legal responsibilities, nor do they tend to operate legally within their constitution and bylaws.
    • Nonprofit boards are not sure of their role and often are undermanned and afraid to raise adequate resources to fund and grow the organization.
    • Some nonprofit executives do not possess or understand the needed skills to direct the organization they are charged with leading.
    • There is typically no structure or governance model followed by the organization.
    • The organization typically raises money by the seat of their pants with no real strategy or realistic plan for success.
    • Nonprofits do not take the time to evaluate their progress and measure their effectiveness, therefore lacking a real plan for improvement that will lead to better services for clients.
    • Some nonprofits are not mission driven.
    • Do you sit on the sidelines until someone invites you into the game or do you take a proactive stance and put yourself in the game now?
    • Do you stay a spectator or do you become a player?
    • Do you position yourself for success or do you let others position you for failure?

    • In addition to the above items a flowchart should be created for the event. The flowchart needs to reflect the major milestones for planning the event in concert with an annual calendar. See the sample flowchart below for a carnival.

    The Animation Plan should be thorough and comprehensive. Imagine that you have been the only person planning an event and you are sick or bed-ridden on the event day. A person unfamiliar with the event should be able to read your Animation Plan, then understand AND deliver the event. It should be extremely detailed! Scenario by scenario...Step-by-step! Do not assume what people might know or understand.

    This Animation Plan:

    Once a solid plan is in place for the execution of the event the planner can begin to focus on those things that will make their event truly a "special" event.

    These are only a few tips and ideas that will make your event successful. Having a comprehensive well thought out plan will assist in delivery and execution of the event. The plan will also reduce stress for planners and volunteers.

    Stayed tuned for the next article in this series on event planning entitled "The Devil is in the Details".

     

    Picking the Apples: Making the Ask

    July 2009

    Imagine planting an apple tree. One would first decide the location of the tree, prepare the land, plant the seeds, and would then care for the small plant as it grew into a large fruit bearing tree.

    As this process occurred the caretaker would take time to ensure the fruit grew ripe and was then harvested. The caretaker would not be afraid to pick the apples from the tree as he would realize the apples would soon fall to ground and become rotten if not picked.

    What is described above is logical, reasonable and largely universally agreed upon. This same logic could be applied to fundraising. In that an organization would conduct prospect research, cultivate prospects and then solicit gifts. Yet, in too many instances organizations, board volunteers and staff members fail to actually solicit the gifts or harvest the apples.

    While fundraising is a bit of art and science there is one definitive truth: If you are afraid to ask for gifts, you will not receive gifts! There is no question that if your organization and board does not solicit gifts; then your annual campaign, your capital campaign or your black tie gala will fail.

    It has often been said that asking for money is the 2nd greatest fear of all people. However, I believe that with some coaching, time spent harnessing one's passion for the organization, and a little practice; even the most fearful solicitor can be successful. Below are a few tips that can help a solicitor manage the solicitation to a successful conclusion.

    1. Don’t apologize for asking: When soliciting gifts for your organization, do not apologize. You are not asking for yourself; you are asking for the individuals/clients the organization serves. Often these are people/clients without voices. As a solicitor you are providing others in your community the opportunity to invest in something that truly makes a difference.
    2. Focus on the real goal: The goal of any fundraising event or campaign should be to significantly impact or change lives. However, we often see solicitors begin a solicitation with “our goal is to raise $150,000”. It is important to remember that the monetary goal is simply the enabler and the “real” goal is the outcome the campaign/event will have on the clients served by the organization.
    3. Make your own generous contribution first: It is absolutely necessary that any solicitor first make their own generous contribution to the organization. This not only demonstrates personal commitment but aids in validating the organization.
    4. Face to Face solicitations are ALWAYS the most effective: While it is much easier to send an email, make a phone or write a letter; it is a proven fundraising principle that face to face, one on one solicitations yield a much higher return. Having a face to face meeting demonstrates the importance of the conversation, allows for dialogue, and provides the solicitor the opportunity to convey their passion and commitment to the organization.
    5. Ask for a Specific Amount and Aim High: Be prepared to suggest the maximum amount you believe the prospect can give to the organization. Remind the prospect of the long term benefits to the community.
    6. Say Thank You: Often when organizations conduct prospect research, cultivate and solicit donors they forget to provide the necessary stewardship to donors. It is important that after receiving a gift your organization communicates your appreciation of the gift. A hand written note is only the beginning of appropriate stewardship. Once someone invests in your organization it is your responsibility to communicate with that donor the results of their gift and the impact of that gift to the clients served. Stewardship is necessary to receive future gifts.

    These are only a few tips that will aid in making a successful solicitation. Again, it is important to remember that the number one reason people give to an organization is not because of the mission, the scope or the history...it is because they are asked. If you are too fearful to make the ask; you will not receive the gift. Please practice your solicitations, use the tips above and pick the apples from the tree.

    Board Recruitment: Whose job is it anyway?

    July 2009

    Okay, the fact of the matter is, it is both the volunteer and staff job to identify, recruit, and develop the volunteer leaders for your organization. But, there are steps that need to be taken by both groups to move this process along to a successful conclusion.

    I contend that it is the staff job to develop what I call the ‘wish list' of those individuals that should be involved as Board volunteers with your organization. This is accomplished by examining and identifying the needs of your Board for certain areas of expertise and those individuals with influence in your community.

    After this wish list has been developed, staff should then review this list with your Board development committee to make certain those identified are indeed the right people to be involvement with your organization. No one should be placed on this list without the agreement of this committee and under no circumstance should anyone be approached for Board involvement without first going through this process of identification and agreement that they are indeed the best person to fill a Board position.

    After this list has been developed and approved, staff should conduct research of all individuals on the list. Research should include wealth, giving capacity, giving history, volunteer involvement, business relationships, education background, etc. A strategy is then developed to determine who is the best person to approach this individual for service. Staff has the role of preparing the volunteer identified as the best contact for the recruitment with materials needed to help the volunteer make an informed presentation during the recruitment. Staff should also be on this recruitment call to assist the volunteer when questions arise that the volunteer might not be in position to answer. These questions usually come up when information about services your organization delivers that the volunteer might not be in a position to answer.

    If the recruitment is successful it is staff's role to develop the volunteer's work plan for the year. This would include committee involvement, projects they might work on during the year, personal giving to the organization, as well as potential supporters they will be in a position to solicit during the annual campaign process. Board members role would be to assist with the engagement of the volunteer making sure they feel welcome to the Board and encourage them for their involvement in meetings and events. This is especially true for the volunteer that recruited the new Board member.

    Properly executed, this process will go a long way towards assuring that your Board is balanced with the right mix of individuals and that they will be engaged in the work of the organization.

    Economists: Recession to end in 2009

    Reprint of an Article on www.CNNMoney.com

    May 27, 2009

    A recovery in the second half of this year will be 'moderate,' according to a report from the National Association for Business Economics.

    NEW YORK (CNNMoney.com) -- The end of the recession is in sight, according to a new survey of leading economists.

    While the economy is showing signs of stabilizing, the recovery will be more moderate than is typical following a severe downturn, said the National Association for Business Economics Outlook in a report released Wednesday.

    The panel of 45 economists said it expect economic growth will rebound in the second half of 2009. However, the group still expects to see a decline in second-quarter economic activity.

    "The good news is that the NABE panel expects economic growth to turn positive in the second half of this year, with the pace of job losses narrowing sharply over the remainder of this year and employment turning up in early 2010," said NABE president Chris Varvares in a written statement.

    Almost three out of four survey respondents expect the recession will end by the third quarter of 2009, the report said.

    But 19% predicted that a turnaround won't come until the fourth quarter, and 7% said it may not come until early 2010. None of the panelists expected the recession to continue past the first quarter of next year.

    GDP: The report predicted a 1.8% decline in real GDP in the second quarter of 2009, bringing the total year-to-date decrease to 3.7%. That's the biggest drop since 1957-1958, the report said. Still, "a modest second-half rebound in real GDP is expected," the report said, with economic growth turning positive in the third quarter. Real GDP growth over the second half of 2009 is expected to average 1.2%, which is well below average, the report said. "Growth in 2010 is slated for a return to near its historical trend," the report said, predicting a 2.7% year-over-year increase. The NABE's February outlook had predicted a 3.1% uptick.

    Jobs: The panel forecast a total of 4.5 million jobs lost in 2009, pushing the unemployment rate to 9.8%. Modest gains in 2010 will reduce the rate to 9.3% by year's end, the report predicted. Separate reports this month showed the unemployment rate is currently down in 21 states and stands at 8.9% nationally.

    Deficit: Government spending "will provide vital support to the economy," and will be the only expenditure sector to grow in 2009, the report said. But that spending will help push the federal deficit to a record-high $1.7 trillion in the 2009 fiscal year, before falling slightly to $1.4 trillion in fiscal 2010.

    Housing: New and existing home sales are close to their lows, with 72% of NABE panelists expecting sales to hit bottom by the middle of 2009. More than 60% of those surveyed said housing starts would also bottom out at the same time.The panelists were split on the issue of when home prices will hit their lows: 30% said it would happen by the third quarter of 2009; 30% said the fourth quarter; and 40% said declines will continue into 2010 or later. The median prediction is that home prices will rise 1% in 2010, the report said.

    Spending: Widespread job losses and weak income growth have reduced consumer spending and boosted the personal savings rate, the report said. The savings rate has seen two consecutive quarters of sharp increases, holding above 4% through March. More than 70% of the panelists expect "more thrifty behavior is here to stay, at least for the next five years," the report said.

    Credit: Obtaining long-term and short-term financing is still difficult, which poses a risk to the economy, but 90% of respondents said actions from the Federal Reserve have helped to ease the credit crunch.

    Five-year outlook: More than half of the NABE economists said they expected potential growth of the U.S. economy over the next five years to be between 2% and 2.5%; 37% of respondents forecast growth between 2.5% and 3%, while 7% of the panelists said growth will be higher than 3%. To top of page

    Simple Solutions for Complicated Times

    June 2009

    As this world in which we are living becomes more and more complicated, the nonprofit sector that I know and love so much is being pushed in a direction of diversification and sophistication. The days of a mom and pop nonprofit possessing a single focus seems to be waning. Many of you may say good riddance! Others may hearken for the day when everything was just a little slower and simpler.

    Whatever side of that spectrum you sit on, it cannot be disputed that we are living in some very complicated times. While what happens all over the world is within the grasp of our iPhone, it seems that we may just have too much data to digest and process.

    I have noticed in my travels across the country, some traits that identify us and many of our colleagues as we navigate our way through the maze that has become nonprofit management and leadership:

    While some of these statements may seem ridiculous to you, many good nonprofits in our communities struggle with one or more of them. How many of us can truly say that each and every day, we as leaders of local nonprofits make decisions that are in the best interest of the mission of the organization?

    My rationale behind the above statements is to question what steps we are taking in the sector to improve ourselves while enhancing our processes and practices. At DNS, we have been working diligently to develop tools that will develop and enhance your ability as a nonprofit leader to improve your organization. We have launched our diagnostic at www.theperfectnonprofit.com. You can register and take the diagnostic at no charge. Once you have completed the assessment, you will receive what we are calling your "Perfection Quotient." This is a detailed report that will identify the steps needed to drive your organization to new heights.

    The diagnostic has been developed in conjunction with our Perfect Nonprofit Model, which is part of our new book entitled, The Perfect Nonprofit. The book is predicated on the basis that organizations should strive for balance within what we call six facets of nonprofit management. To learn more about all of this cutting edge developments, visit our website.

    In this world that is becoming so complicated, we believe we have developed some simple solutions that will help you to drive your organization to great heights.

    Positioning Yourself for Success!

    By David F. Condon
    Chairman and CEO, Diversified Nonprofit Services, LLC

    June 2009

    With all of the trials and tribulations that come with trying to stay viable in the present down economy many times the one area that is put on the back burner is resource development. Organizations, assuming no one will support them by making a contribution, create their own self-fulfilling prophecy of failure by not staying focused on cultivating, soliciting, and acknowledging their current donors and future prospects. This is both dangerous and fool hardy as other organizations in your community may not be taking the same cavalier approach and are out working trying to cultivate and close your donors.

    The simple fact of the matter is that in a down economy people still tend to contribute to their favorite charities, perhaps not as much as in the past, but they still contribute. Philanthropists understand the increased needs of nonprofits in this type of economy and in many cases focus their giving more closely but nonetheless support them at significant level. The Center for Wealth and Philanthropy reported the amount of charitable giving in the US in 2007 was $229 billion. One study conducted by Schervish and Havens predicted that by the end of 2009, charitable giving will be down to approximately $208 billion. While this is a predicted 10% drop in philanthropic giving over a two year period, take a moment to look beyond the numbers.

    The numbers referenced in the previous paragraph are for the broad spectrum of charities. One thing that we do know is that, when difficult times come, the reduction in philanthropy is not shared across the board. Nonprofit organizations focusing on the arts, music, and culture absorb an inordinately high percentage of the drop in philanthropic giving while organizations focusing on the needy, homeless, disadvantaged youth, and social services may actually see increases in a down economy. There is little doubt that a change in the overall human condition spurs people to not only give their money but also their time.

    As a former psychologist I have learned that perception can play a key role in whether you mobilize your organization to action or you wallow in your own self pity while feeling sorry for yourself. Yes there is a prediction that there will be a drop of 10% of the $229 billion raised in 2007 but it still leaves $208 billion that will be given to those who want it most and who position themselves for success. The only nonprofits who will fail to survive this downturn are those that quit on themselves. Those nonprofit organizations that position themselves now to take advantage of the upturn in the economy, when it comes, will be ready to surge forward. Those organizations that play the waiting game will be left waiting at the gate as the economy shifts.

    The questions your organization must ask itself are:

    The decision is yours.

     


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