Nonprofits felt the full weight of the coronavirus’s impact at the height of spring event season, calling into question longstanding patterns of how and when charities do mass fundraising. Organizations had to cancel galas, walkathons, live auctions, and giving days that often take months, if not a year, to plan.
The losses have been substantial. First, many groups had to take money out of their general operating coffers to cover paying for venues and other expenses that went unused. So instead of raising money, they lost it.
But perhaps just as important, the revenue raised through events account for much of the unrestricted money many groups bring in, says Sam Cobbs, chief executive of the Tipping Point Foundation in San Francisco.
“With those events getting canceled, not only are they going to miss that revenue, but they’re not going to have those unrestricted dollars to pay for things that are much needed,” he says.
Now most groups that had to postpone events are trying to figure out when it is appropriate to start raising money again for efforts that have little to do with the coronavirus response.
No Sidewalk Solicitations
Many nonprofits have also stopped sending fundraisers to knock on doors and approach pedestrians on sidewalks. Such face-to-face fundraising is “an unfortunate victim” of the coronavirus pandemic, says Daniel Karp, senior vice president for integrated direct marketing at Covenant House, which serves homeless youths.
In a bid to attract more monthly and younger donors, the charity tested face-to-face fundraising in several cities last year and had planned to expand the approach to more. Covenant House hasn’t yet decided whether to abandon the fundraising strategy altogether. But for now, it is hoping face-to-face fundraisers can make calls to new donors and keep them updated on the nonprofit’s work.
Nonprofit leaders say the mess this spring underscored the need for multiple revenue streams — a step some charities were already considering to prepare for the next economic recession.
“Our supply chain is from donors and funders,” says Marnie Webb, chief community impact officer at TechSoup, a nonprofit that provides technological support to other charities. “How are we making sure that we’re diversifying as much as possible the way the money comes in?”
Webb says fundraisers might need to pause on certain appeals for now but should keep donors engaged throughout the year by adding more digital opportunities for them to interact with a charity.
Asking major donors to host a monthly tweet chat about an organization’s work is a good first step, she says.
Digital events like that let donors talk publicly about their support for the organization, like they might otherwise only do at a gala or other in-person event. What’s more, Webb says, donors are “continuing to get some of that interaction that’s not just about donating.”
