Fundraising in Difficult Times
They say, “tough times don’t last, but tough people do.” In our world, it’s the tough non-profit organizations—resilient, focused, and adaptive—that continue to serve their communities and build a better world. The ones that continue raising money, telling their story, and executing on their mission no matter what. Economic downturns, political headwinds, and donor fatigue can rattle even the strongest nonprofits, but they don’t have to derail your fundraising.
1. Keep Prospecting.
Even when budgets are tight, donor acquisition must remain a priority. It’s tempting to pull back during tough times—but doing so can severely limit future revenue and growth. Acquisition is a long-term investment. It often doesn’t break even in year one—but the payoff over time can far exceed more conservative financial returns.
Let’s compare: Say you invest $100,000 (subsidy) to acquire 4,000 new donors at $25 each. If those donors are worth an average of $100 over three years—a reasonable 36-month value for IDM clients—that’s $400,000 in revenue—a return of 4:1 over time.
Now compare that to investing $100,000 in a 3-year U.S. Treasury bond at 5% annually. You’d end up with $115,762 after three years. Even the stock market, with an average annual return of 8%, would yield $125,971. That’s a solid return—but still dwarfed by the long-term value of investing in donor acquisition.
To convince your board or leadership team, frame acquisition as an asset-building strategy. Show them the lifetime value of a donor, and the cost of not acquiring new ones. The returns may take time—but the impact is far more powerful than playing it safe.
2. Donor Retention Must Be a Priority.
It’s more cost-effective to keep a donor than to acquire a new one—some studies show a retained donor is worth twice as much as a new donor. In hard times, deepen relationships. Thank faster. Report impact more clearly. Personalize communication. Treat every gift as meaningful. Make donors feel seen, valued, and indispensable. Remember, the biggest jump any donor will ever make is when they take that first step to write their first check. That’s when their interest is at its peak. Seize it.
3. Diversify Funding Sources.
Don’t rely too heavily on one stream of income. Invest more in monthly giving, major gifts, foundation grants, peer-to-peer, and planned giving. In short, a diversified funding base reduces risk and gives your organization more financial resilience. Special Note: Marketing your planned giving program will be the subject of a future post but in my experience spending money to build a planned giving program is the best investment in its future any organization can make.
4. Tell Compelling Stories.
Data validates your work, but stories are what donors remember and respond to. Focus on one person’s journey, showing life before and after your organization stepped in. Keep the language emotional and vivid. Instead of listing outcomes, show impact through a human lens: “Because of you, Maria found safety and a future.” This reinforces the donor’s role in the story. Use visuals where possible—photos or short videos boost engagement, especially online. Stories make your mission tangible and donors feel essential.
5. Write with Urgency.
Urgency drives action, especially in uncertain times. But it must be real. Focus on immediate needs, threats, or time-sensitive opportunities: “All gifts will be doubled through midnight,” or “New legislation threatens our work—act now.” Use direct, active language and clear calls to action: “Donate now to protect these families.” Short sentences, strong verbs, and clarity are key. Skip vague appeals. Specific, time-bound asks perform better and help donors understand their impact.
6. Leverage Technology.
Smart fundraising uses tech to deepen relationships and scale impact. Model your donor list and tailor messages by behavior or giving history. Automate emails and donor touchpoints to stay consistent without added staff time. Use SMS, digital ads, and AI tools to personalize outreach, test messages, and improve timing. Short videos—especially thank-you messages can outperform long-form copy. Tech won’t replace storytelling, but it amplifies it and helps you do more with less.
Tough organizations aren’t afraid to ask, adapt, and lead with heart. Stay visible. Stay brave. And keep fundraising.
Tough times demand bold action. By focusing on smart acquisition, donor care, and compelling storytelling, your nonprofit can thrive—even now. Partner with us today and turn resilience into results.
