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Jerry Huntsinger, freelance writer

A Contrarian Approach To Coming Out Of A Recession

  

 

It seems to me that when the economy is officially declared to be in a recession, then it’s time to stop worrying about how to survive the recession. 

 

            Instead, it’s time to worry about how to come out of the recession.  And come out in a growth mode.

 

             I’ve seen it work about 10 times now, since I started in fundraising in 1962.  At the end of each recession, a few charities emerged and moved right into a strong growth period.

 

            What did they do different?

 

            In brief, when their income dried up, they focused on spending their way out of the recession, using both common sense, and adventurous thinking. 

 

            Common Sense:

 

            1.  Take action now.  Every recession comes to an end.  Not with a bang but with a whimper.  If you wait until the recession is officially declared over, it’s too late.  You’ve missed the cycle.

 

            2.  Don’t cut programs that generate net income.

 

            3.  When you cut back on any segments of the donor file, don’t lose contact with those donors.  Just reduce the number of mailings.

 

            4.   Keep mentioning the word “recession” to your donors!  They need to be continually aware that you’re facing grave financial shortfalls because of the recession.  And the recession can be an added motivation for giving.

 

            Adventurous thinking:

           

            1.  Increase the number of mailings to the most productive segments of your list!  This will irritate absolutely everyone in your organization, from the board chairman on down.  But the people who are the most faithful and loyal to your organization are the ones who must take up the slack.

 

            Examine real close the theory that “if we mail too heavy to the good donors, we’ll lose them during the recession.”   It may be phony.

 

 

            2.  Once your mailing schedule is full and it seems impossible to add another mailing, start using higher suggested gift amounts.  Try a 50% increase in suggested dollar amounts.  In your copy, tie the reason for that to the recession.

 

 

            3.  Put your expired donors through a telemarketing re-activation program, with the “recession” and cash shortfall as the reason for the phone call.  You’ve already invested considerable resources enrolling and cultivating these expired donors.  And now, as donors are more difficult to find, you may discover that reactivation is less costly than throwing them out and trying to find new donors.

 

            4.  Increase your test budget!  Even if you are mailing fewer pieces.  Don’t think,  “we need all the net money we can get!” 

 

            Instead, think:  we need to be ready for the big move at the end of the recession.”

 

            5.  Use two or more control packages instead of one.  Your universe of prospect names will probably shrink, so you’ll be mailing more frequently to the same names.

 

            6.  Reduce your staff instead of reducing your mailings.  (That’s easy for me to say, isn’t it?)

 

            7.  Take a deep breath, and ask your Board to authorize increased fundraising expense, and decreased program expense.  It will all balance out in the long run, but if you decrease your fundraising expenses during hard times, eventually you will be forced to cut program. 

 

            8.  Then, most adventurous of all – launch a brand new program.  Hype it strong.  Go to your donors and tell them you have to move forward with this program, recession or no recession. 

 

            This will help to energize your donors, and give them more motivation to increase their giving, other than just helping you meet the budget during the recession. 

 

            9.  Finally, beg your Board to cash in some of those sacred reserves that are mildewing in a bank vault.  Your donors sent that money in good faith.  Use it to come out of the recession strong and in a position to increase the program budget.

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