Confidence Dips

CHARITIES, BEWARE. If you think it’s hard now to raise money for your cause, hold on to your hats. It’s going to be a bumpy ride for at least the rest of the year, according to a new survey just out from the Center on Philanthropy at Indiana University.

The center's Philanthropic Giving Index, Summer 2008—a consumer confidence index for charitable fundraisers—shows a sharp increase from December in the number of people who say the economic downturn has led to a slowdown in donations. The most pessimistic of the 144 national fundraisers and consultants surveyed were fundraisers from health and human services organizations, many of whom predicted that this year will probably go down as the year in which many good causes will see their donor dollars fall off significantly, thanks to the souring economy.

“The percentage of fundraisers reporting a negative impact of the economy on giving has grown significantly,” says Research Director Patrick Rooney. “Just over 83 percent of fundraisers reflect that view now, versus 48 percent six months ago.”

While nonprofits typically see fewer donations during bad economic times, Rooney says respondents felt this downturn will likely be somewhat prolonged: only 15 percent of those surveyed predicted fundraising would pick up within the next six months versus 62.7 percent predicting its impact will remain negative.

Not all the news is bad. Those surveyed said special events remain a good way to raise money: three out of every four fundraisers, or 74.3 percent, said their most recent event was very effective or slightly effective in promoting the mission of the organization, while 83.9 percent said their fundraising special event was very or slightly effective in raising philanthropic dollars. In addition, just under one-third, or 31.9 percent, of those surveyed reported getting between $15,000 and $49,999 in net revenue from their most recent special event. Less than five percent said their total net revenue was less than zero, while 19.1 percent said it was between nothing and $14,999.

“Special events can be effective fundraising tools,” says Timothy Seiler, director of The Fund Raising School and Public Service at the Center on Philanthropy, “ but in these times…relying on events or any other single fundraising technique is not likely to bring an organization the success it is hoping for.”