June 12, 2020 | Read Time: 11 minutes
More than three months into the pandemic and the economic crisis it touched off, nonprofits are still finding their way in an altered landscape. Ask an Expert is here to help.
Send us your questions about fundraising, management challenges, and more, and we’ll track down the right experts to answer them. Please submit your questions to askanexpert@philanthropy.com.
Should we keep moving forward with the pre-silent phase of our capital campaign and put out a request for proposals to assist with phasing, financing, and implementation? Or should we just stop altogether for now and focus on operations and current needs?
— A development director at an independent school
Charities need a firm idea of who will be their major capital-campaign donors before they can gauge whether they have the support to power a major fundraising drive, says Brenda Asare, president and chief executive of the fundraising consultancy Alford Group. As in any other year, she says, nonprofits should launch a feasibility study or philanthropic assessment to illuminate this data.
Fundraisers should survey donors on how much they plan to give to the charity over the coming years and how they’ll balance those gifts with donations to other groups, she says.
Undergoing this process now not only helps charities identify their greatest financial needs and the capacity of their supporters but it also buys them time — about two to four months, Asare says.
“By the time this behind-the-scenes work is completed, donors may be ready to engage in conversation about how the organization navigates Covid-19 and what they are seeing as their future,” she says.
Angela Joens, assistant vice chancellor of development outreach at the University of California at Davis, agrees that a lot depends on how much legwork the charity has already completed. When the pandemic hit, her team at UC Davis was in the final stages of its silent phase, which it began in 2016. She went back to previously identified stakeholders to take their temperature on the campaign now that the economic outlook had dimmed.
“We just do not know what the next few months or years will look like, so gathering data and taking the pulse of your leadership is a good next step,” she says.
Joens and her team talked with the university administration, board, and campaign steering committee to gauge buy-in for a continued campaign. They also reached out to donors to ask whether they would still be able to give to the campaign or if they would have to change when the university would receive their pledges in full.
These discussions gave Joens the confidence to continue the campaign’s silent phase. It helped that she and her team had prepared to launch the campaign in a weaker economy than when they began the pre-silent phase, she says.
“If everyone is on the same page, then I would proceed with your planning,” Joens says. At Davis, fundraisers are planning for a virtual campaign launch in October.
We’re in year two of five of a Capital Campaign — our building is just being completed. I’m repeatedly being asked by my board what we can expect in terms of people and companies not paying their pledges. I don’t know how to respond as this is unprecedented. What are your suggestions on how to reach out to donors who have made pledges or how to respond to board members? It seems like an awkward question to ask these donors.
— Executive director at an agricultural education nonprofit
“If the building is almost complete and you don’t have your pledges in hand, you may be in trouble,” says fundraising consultant Brian Bonde. It helps to have an archive of signed donor agreements outlining how a donor will pace a gift, he adds.
“With these documents in hand, you should be able to build a timeline of expected cash flow from the pledge payments which you can share with the board,” he says.
However, even the most committed donors may have to make changes to their pledges now that the Covid-19 crisis has upended the economy. The best way to make sure your donors can still make good on their pledges, Bonde says, is to ask.
“Donors are our organizational family, and we need to support each other as a family right now,” Bonde says. “You should be talking to them more in this time of crisis, not less!”
A personal, empathetic touch will help ease these difficult conversations, he says. It helps to remember that donors and fundraisers are likely facing similar uncertainties right now, he adds.
“Celebrate their past support. Ask, ‘How are you doing?’ and then truly listen. Then ask them, in an open, compassionate, and transparent way, about their giving at this time,” says Bonde.
And while some donors may need to make changes to their pledges, Bonde says fundraisers shouldn’t be too worried. “Most donors who would make a major gift to a capital campaign are likely to have much of their wealth intact, even in this particular time,” he says.
Asare agrees that donors will probably keep their word. “What we are more likely to see during this moment is donors extending time for payout pledges, adjusting timing of their first pledge payment, or adjusting payout schedules,” she says.
For example, donors may rework their pledge so that they can give more money a few years from now, when the economic outlook may be brighter, and less money during the uncertain near term. Offering donors the chance to make these changes goes a long way, Asare says.
As a nonprofit seeking funding, how do we strike a balance between portraying how dire the current situation is and not appearing too dire? We of course want to be transparent, but what funder wants to support what may be perceived as a sinking ship?
— Fundraiser for a child and family development nonprofit
“The role trust plays in transparency cannot be overestimated,” says Patricia McIlreavy, CEO of the Center for Disaster Philanthropy. Organizations can build trust through strong, long-lasting relationships. But few have the privilege of that position with all of their donors.
Sharing hard truths will not always yield positive results, but failing to be transparent carries the risk that you do not get what you actually require to fix the situation, she says. Still, your level of openness should depend on the relationship you have with a grant maker and the way the foundation operates, she says. Ideally, grant seekers should look to share as much of their situation as possible, while making sure what they say matches the tone set by the grant maker, says Jessamyn Shams-Lau, co-chief executive officer of the Peery Foundation. Take cues from language on the foundation’s website, program officers’ communications, their GrantAdvisor profile, and any other information you can glean about how well they understand nonprofit work, Shams-Lau says.
Consider asking current or past grantees of the foundation you’re approaching for insight into what they do with challenging information, she says. Do they have a history of empathizing with nonprofits? If you have reservations about how truth will be perceived, then look for more subtle ways to share urgency, she adds.
For instance, emphasize the strengths you built and exhibited before the Covid-19 pandemic. Highlight measurement and evaluation data that support the importance of your work now or in the recovery phase of the crisis, Shams-Lau says.
Lead with why people have invested in your work and name-drop. Who else has funded you, what credible names are board members, advisers, or partners? “Help funders see that in supporting you they would not be alone and, in fact, in company that inspires confidence,” she says.
McIlreavy agrees that demonstrating diversity in funding will help build trust.
“No one donor wishes to feel that your future rests entirely on their grant-making decisions, and this is especially true in the midst of a crisis,” she says.
If you can demonstrate to your donors how you are using their funding to balance the measures you’re taking to maintain the health of your organization, she says, you are in a good position to engage them in supporting your work.
Given we’ve received a number of grants for programming now suspended due to Covid-19, do you have any suggestions as to how we should approach those funders to repurpose those dollars to a now more urgent need?
— Associate development director at a Louisiana science and math education group
Help the foundation understand that the original purpose is still important but to further the original goals or project, you have to get through the uncertainty and unique challenges presented by Covid-19, Shams-Lau says. Highlight the importance of general operating support when you’re still figuring out how your organization is navigating an uncertain future.
She recommends talking to the grant maker about this topic rather than sending an email.
This might be an opportunity to highlight the Council on Foundations pledge signed by more than 750 foundations committing to be more flexible, including loosening or eliminating restrictions on current grants, they say.
If your donor has signed the pledge, this would be a great starting point for the conversation, exploring how providing greater flexibility will allow you to respond most appropriately, McIlreavy says.
If the foundation isn’t open to converting its grant to unrestricted support, “be prepared to talk about something specific that you want to spend the grant on that enables the funder to feel like a hero,” Shams-Lau says. Explain how this item or set of items will give you the best chance of coming out of this crisis in a strong position, she adds. Why is it essential to whatever aspect of your work they are most interested in? How will it enable you to come back to the project the grant was originally earmarked for?
McIlreavy recommends looking at how the foundation could help you adapt your programming to diminish the impact of the coronavirus on your mission. If your programs can’t be adapted, ask your donors to consider bridge funding so you can get going again when the crisis is over. Make sure the grant maker understands that program suspensions or alterations affect more than the activities themselves. Explain your standing operational needs and the resources that the programs bring toward covering costs such as rent or shared staff. Restarting after a suspension can be more costly than ongoing maintenance of a nonprofit.
Many funders are giving only to existing grantees. How does an organization best propose a valuable and meaningful project to a funder who doesn’t know us? What is a good strategy under the circumstances? And with so many funders saying they don’t take unsolicited proposals, how do we get our foot in the door to even make a pitch?
— An Oregon-based fundraising consultant
During crises, remember that some funders may withdraw to their known partners, but others may expand and increase their relationships, McIlreavy says. Write to those you’ve sought out before, ask how they are managing in the crisis, and remind them of what you are doing. Ask for that meeting. With remote working and changed paces, it just might work.
When you’re trying to broaden your pool of supporters, research the grant makers and donors that align with your mission.
As you’re doing your research, look at who they have funded in the past. Work the relationships you have to gain an introduction to the donor. If a current grantee recommends the funder talk to you, it could be a strong way to get a foot in the door, Shams-Lau says.
If this is not feasible, ask the funder for an informational session. Use this opportunity to build your relationship and allow the donor to gain a greater understanding of your program and possible alignments with their own goals, McIlreavy says. Remember that this can take time, and patience may be required before a pitch is feasible.
And when you do approach new supporters, make sure you connect your work to the populations they already serve.
For instance, you’re approaching a grant maker that supports education programs. In this moment, the students and families supported by the foundation’s grantees might only be able to keep accessing education programs if your organization’s work helps them stay in their homes during the economic crisis. “Help funders see how issues aren’t siloed and separate but connected and interdependent,” Shams-Lau says.
“For us to come out of this better, as a sector, we have to use this opportunity to put any competition and individualism aside to ensure communities get the holistic and most important support in this moment.”
If you have a question for a future column, send an email to askanexpert@philanthropy.com.
