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Kamela Kettles
Mrs. Lester
Adv. Gr/Comp
9 October 2012
Economic Downturn Effect on Fundraising
The past few years have caused tremendous stress and setbacks for many organizations.
Countless businesses have been affected by the economy including non-profit organizations.
Several of these non-profits help people during hard times, but if no one is willing to give these
organizations donations they cannot give back as they have in the past. In order to tackle the hard
times in the economy, the non-profits will have to figure out a solution to and outlook for the
economy in the upcoming years.
Since the economy has been in a recession, many donations to non-profits have gone
down. Kevin McCoy and Oren Dorell from the USA Today say, “The economic crisis threatening
the nation with the worst recession in decades has set off tremors among non-profits and
charities large and small that rely on donations from Wall Street, industry and average
Americans.” Many people have the same opinion as stated in this article. That opinion is that this
nation is experiencing the “worst recession” in many years. People are beginning to see the effect
of the recession, because they cannot find aid or financial relief that these non-profits would
relieve them from. In an article it states that, “U.S. charities looking under the Christmas tree
likely will be disappointed, as they can expect to see a drop in donations from businesses as well
as individuals” (Gurchiek). The average American family receives their commission checks
during the holiday season. However, the economy is decreasing their average income. The
decrease in peoples income makes it harder for people to donate to their causes because they

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only have enough to give gifts to their family and not help other people outside of their family.
In the Society Human Resource Management it states that, “Giving can take a variety of forms,
such as donations of tangible goods, but we’re certainly taking money, first and foremost”
(Gurchiek). Americans will see that more organizations would rather have money then a tangible
item. If people are not willing to donate money than why would they want to buy a raffle ticket?
The answer is that they want to, but are not financially set to do so. Therefore, non-profits are
delayed because of these mind sets. The economy has set back many non-profit organizations
and the owners and employees are trying to seek help they are not able to receive during these
hard times.
Organizations have been hit hard by the recession, and are doing everything they can to
stay on top of tasks. One reporter found that, “One-third to one-half of all charitable giving
occurs between Thanksgiving and the end of the year, according to Berger, whose nonprofit
group also relies on charitable donations” (Gurchiek). Just like the quote stated before, many
families earn more money during the holiday season. Organizations will see a drop in their most
charitable times because of the income. The drop in their donations shows that many
organizations will be struggling to get help for the needy during the worst times of the year. In
the USA Today a reporter said, “The Red Cross is suffering as much as a 30% drop in responses
and contributions from new donors, and corporate donations are ‘coming in at lower amounts’ at
the halfway point of a campaign to raise $100 million by Dec. 31” (McCoy and Dorell). This
statistic is very eye-opening. During any natural disasters the Red Cross relieves Americans the
most. If organizations like these only raise half of the money they normally do, they will not be
able to help everyone being affected. This impact will only worsen the economy and cause more
needy people. In Guidestar it reveals that, “More than half (52 percent) of the organizations have

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experienced a decrease in contributions” (McLean and Brouwer). This fact is what makes
organizations get frustrated the most. Having more than half of donations being brought in
means that businesses can only help half of the people they have before. These facts are make
people cringe and many non-profits hope to see an improvement in the future. If the donation
amounts received do not begin to go up, there will be many consequences to be faced.
In order for organizations to improve their donation levels, they will have to step up their
game and think outside of the box. George Head says that, “During economic downturns,
nonprofits tend to lose staff, particularly as organizations reduce their payrolls in response to
funding losses. Those employees and volunteers who remain with a nonprofit are placed under
greater stress due to increased responsibilities and longer hours.” Since the economy has been so
harsh on people, you will see many facts like this one. Orgnaizaitons cannot afford to give let
alone have more staff than they can afford. In return, lay-offs cause more anxiety because
multiple tasks are put on one person. Non-profits need to keep as much staff as they can so
multiple people can help with assigned tasks. In addition Clara Miller states, “If they offer
services (e.g., job retraining, food kitchens and housing services) that will lessen the negative
impact of an economic downturn, nonprofits should approach government funders more
aggressively.” Having a non-profit that will give the American people service is more likely to
get more donations. A service non-profit is more likely to help people approve their way of
living. Organizations should expand their charity and help the people that have been affected by
the economy. In response to this solution, the economy will begin to bounce back a little just
with non-profits helping the American people. Clara Miller also implies that, “Nonprofits
heading into recession need to avoid ‘strong, silent behavior" and sustained spending.’
Organizations need to speak up about what they need. Speaking up allows not only the public,

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but also the employees within the company to know what is going on. Every Organization needs
to follow this solution, and it will help them receive more donations. If every non-profit will
keep a few of these solutions in mind, their business will be able to run more smoothly and will
receive more donations.
Many opinions have been reported on the outlook for the economic downturn and a
projection for when giving will return to pre-recession levels. Caroline Preston predicts an
economic turnaround in two to three years: “The largest share of respondents (39 percent) said
they thought it would be at least three years before the economy recovered, while 23.4 percent
felt the economy would rebound in less than two years.” This fact is good, being that some
people think the economy will improve. Having this statistic makes organizations hopeful for the
future and positive in their donation outlook. The statistic shows that the economy may be
impproving since the American attitude has begun to become more positive. A study says that,
“Fundraisers for U.S. non-profits paint a dark funding picture for their organizations, and the
next six months are expected to bring only slight clearing” (Werosh). This statistic is very
contradicting. There is a negative outlook for fundraising, but they will see a very minimum
profit. This shows that organizations will not see a major increase in their donations and will still
be facing many difficulties. Caroline Preston also found that, “Most people said the recession
would not affect their previous charitable commitments. Of those who were committed to a
multiyear gift, 87 percent said they would pay the donations on time. That compares to about 95
percent in good times.” The statistic is a very good outlook. Most American people believe that
their life is better off than the person they would be giving a contribution to. Furthermore,
organizations will begin to see a positive number in their amount of donations. Whether the

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people are pessimistic or cynical, no one can really tell at this time how well their donations will
be five years from now.
The economy is showing signs of a few improvements. However, it will take
around 10 years to have it growing at a rapid pace again. With this in mind, non-profits will see
an increase in donations each year. As long as they use the money wisely their business will still
be stable. An alternative to a non-profit job would be working at a foundation. Foundations
decide how to give out money rather than relying on donations. A great foundations example
would be the Bill and Melinda Gates Foundation. With this in mind an article stated, “That
foundation gives more multiyear grants than any other philanthropy, awarding $2.6-billion in
multiyear grants” (Hall). Their money source will always be plentiful, and their employees do
not have the stress of trying to find donations. Also, people working for foundations still get to
feel the benefit of giving money. Either way, non-profits will be in business for long time
because there will always be a cry for help from needy people.

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Works Cited
Gurchiek, Kathy. "Economy Affecting Businesses' Charitable Donations ." Economy Affecting
Businesses' Charitable Donations. Society for Human Resource Management, 14 Nov.
2008. Web. 12 Sept. 2012.
<http://www.shrm.org/Publications/HRNews/Pages/BusinessesCharitableDonations.aspx
>.
Hall, Holly. "Correction: The Downturn and Multiyear Foundation Grants." The Chronicle of
Philanthropy. Ed. Holly Hall. N.p., 5 Sept. 2012. Web. 12 Sept. 2012.
<http://philanthropy.com/blogs/prospecting/downturn-causes-drop-in-multiyear-
foundation-grants/34786>.
Head, George L., Ph.D. "Sustaining Nonprofits During Economic Downturns." Sustaining
Nonprofits During Economic Downturns. Non-Profit Risk Management Center, n.d.
Web. 12 Sept. 2012.
<http://www.nonprofitrisk.org/library/articles/strategy09002003.shtml>.
McCoy, Kevin, and Oren Dorell. "It's a Hard Time to Be a Charity." USA Today. Gannett, 27
Oct. 2008. Web. 12 Sept. 2012.
<http://www.usatoday.com/money/economy/services/2008-10-26-fundraising-crisis-
donations-charities_N.htm>.
McLean, Chuck, and Carol Brouwer. "The Effect of the Economy." Guidestar.org. GuideStar
USA, 2009. Web. 12 Sept. 2012.
<http://www.guidestar.org/ViewCmsFile.aspx?ContentID=3909>.
Miller, Clara Non Profit Finance Fund. As the Nonprofit Sector Faces Recession, NFF Outlines 5
Recommendations to Prepare for Economic Downturn. Nonprofit Finance Fund. Clara

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Miller, n.d. Web. 12 Sept. 2012. <http://nonprofitfinancefund.org/news/2008/nff-press-
event-nonprofit-sector-faces-recession-nff-outlines-5-recommendations-prepare-ec>.
Preston, Caroline. "Majority of Donors Say Economic Woes Won't Affect Their Giving."
Chronicle of Philanthropy 21.11 (2009): 4. A9h. Web. 13 Sept. 2012. <http://proxygsu-
sche.galileo.usg.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=a
9h&AN=37330014&site=ehost-live>.
Werosh, Leslie C. "Fundraising Strategies and Challenges." Sfsu.edu. San Fransisco State
University, n.d. Web. 12 Sept. 2012.
<http://userwww.sfsu.edu/~lwerosh/Documents/FundingStrat&ChallengesNPOsFinal745
.pdf>.