The crisis continues – Funding the “gap” and redeploying

Bev Freeman, Contributor, AMA Boston

 Especially if you are a small nonprofit ($ ½ million or less) or you have barely 3 FTEs to run your organization, you are feeling horribly right now. If your budget hovers around $1 million -$3 million, you probably feel like a small nonprofit, no matter how the Dow Jones is doing today.

Get organized to push ahead - Hopefully your fund sources have been diverse so you’re not suffering from the downfall of Merrill Lynch. In the crisis is opportunity, as a wise person said several millennia ago.

This is when having a good database of emails for your constituents - especially donor prospects or civic-minded leaders in your community - comes in handy. If you don’t have one now, create it. Put people to work on this. Name-address-phone-affiliation-email and a column for “notes.”

Email push  - Most people will be generous even in this terrible time. People want to do something positive and feel good about some gesture toward others they’ve made. A well-written email push to prospects could yield $25 to $100 each. If this audience is mainly middle class ($250,000 and above), you may be successful beyond your dreams.

Example: In your pitch, please tell them about the gap you’re experience, how the money would be used, how much money is needed and when you need it by. Assure them they will get an immediate receipt and thank-you and that their help during this time will help your organization continue to operate reliably (supplying services to your constituency groups).

Ask the recipient to kindly forward to three friends or colleagues. Provide a “back-end” (as mentioned last time) to accept credit card purchases online. Be clear about where checks can be sent and, again, your deadline. Include a form to complete if the person wants more information or wants an occasional or periodic update. Evan Shapiro, Meerkat Technology, in Massachusetts, has an excellent tried-and-true back-end for nonprofits, especially theaters and other types of arts organizations.

A premium? Offer a prize for giving that makes the recipient of your request laugh - perhaps a coupon for $20 for take-out for two from your local favorite chicken-dinner place. Offer this for donations @$50 or above. You’re going to make money anyway.  The plus about the premium is it signals the seriousness of your intent, and gets people’s attention.

Redeploy? - Even if you have 3 FTEs (or fewer) you have to be smart and strategic about how you prioritize and focus your daily activity.

Example: If you have been doing a newsletter in-house - consider getting pro bono help from the outside (e.g., a graphic designer) for a shortened newsletter, but punchier and with a simple, clean look. Pour whatever talent you have in to creative fund raising. Give morale boosting small potluck dinners for your program directors, coordinators and caseworkers. Hang together. Be specific about what you can do together to keep your nonprofit viable and lay groundwork for a healthier future.

BasecampTM - This tool will help you through a time of workforce assessment. You may have staffed a lot of board committees or task forces. You’re agonizing over how to keep these going. Basecamp is a platform that organizes conversations, sharing of documents and even writing together. There is a brand-new live chat function; Basecamp is always adding and improving.

The basic fee is $24/month. I have found this level sufficient for most of my purposes to date. It’s intuitive and fun. Feel free to write me with questions about how it can be applied or how it works. Basecamp (run by 37signals) has very good short tutorials and is intuitive to use if you pause for a few minutes to think (and don’t rush yourself).
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One Response to “The crisis continues – Funding the “gap” and redeploying”

  1. Mark Says:

    Bev it will be interesting to see how much this effects nonprofits. The crisis is now running rampant throughout all sectors of the economy and is rapidly extending into the consumer segment. Sadly the curtailing of credit lines to consumers takes away available spending power some of which would be used as donations to nonprofits. Scary times.

    Basecamp is excellent by the way.

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