Looking back on the year, 2009 can be characterized as a rollercoaster ride for nonprofits. Although it has been a difficult time, 2009 has made organizations aware of how they need to shape up. Among our clients, here are the top lessons learned from the economic challenges.

Maximizing efficiency

Many organizations had to take a hard look at cost-saving measures and spend strategically with a view to direct impact on donations. Unfortunately, nonprofits cut staff to reduce expenses.

Meanwhile, they had to find new ways of getting tasks completed – with fewer staff and resources – while keeping contributions from falling. Organizations turned to automating manual job functions and sharing infrastructure and technology to be more effective in the challenging economy.

Re-evaluating poor management

With limited staff, organizations have learned how important it is for everyone to work together as a team. They understood the need for greater focus on business processes and increased awareness of what occurs on a day-to-day basis.

This has allowed organizations to run more smoothly and be better prepared to face the operational challenges that may arise, especially for when the global economy begins to pick up over the next year.

Emphasizing the basics

Organizations re-aligned their key performance indicators, monitored them closely and adjusted their development plans to maximize fundraising opportunities. During the recession, nonprofits realized that they could no longer rely heavily on corporate giving.  They saw the need to diversify funding, forge better donor relationships and re-focus on retention.

Strategies for success in 2010

Nonprofits have an opportunity to learn from the struggles of 2009 and thrive with the recovering economy in 2010. They have used the past, difficult year to re-evaluate everything they do and see what practices work best for them. The strategic improvements they have already begun to make will better position them for the next year and beyond.

Retention and relationships

Those deeply invested in an organization are the best ambassadors. If they feel more engaged, they will want to give even more. The need is greater in a downturn, and people’s stories are more compelling; therefore, donors typically do not mind being asked to do more than just giving.

Tips for reaching out

·       Have existing donors reach out to their friends and family to bring new volunteers in. If this group of donors is truly devoted to an organization, they will be excited to encourage others to get involved.

• Maximize touchpoints by building a culture for peer-to peer fundraising.
• Incorporate supporting features into the web site, and remember to include the organization’s core messages with every personal request.
• It is important to build upon the brand, so that an organization can begin to build a new donor pool with the help of the existing one.

Strengthen interest through social media

Many nonprofits have been hesitant to use social media, but more have been adapting to it. Why not take advantage of another communications channel to reach existing and future donors? Using tools such as Twitter and Facebook will not necessarily be the magic bullet for fundraising purposes, but social media will raise awareness by providing donors with weekly, daily and real-time organization updates.

Donors can also join groups and connect with others that support the cause. People who are thinking about donating may look to these sites for more information and to see what is happening in the community, so don’t forget to highlight the appeals, initiatives and needs.

Adding social networking technology to an organization’s web site in the form of individual profiles, discussion forums and blogging capabilities is a great way to add value to the donor base.

Invest in technology

It is important for nonprofits to look for more ways to save and benefit from the technology they already have. Nonprofits can use technology to analyze information about their donors. They can find out why people give, what will make them give more and what events have triggered them to continue giving. Having this information will help an organization find new donors and reach out to them more effectively.

Looking ahead to 2010, it seems nonprofits will simply have to work harder to maintain their income. Although it will take time for giving levels to rise, nonprofits are in better shape to take advantage of the rebound than they were earlier in 2009. The lessons learned during the downturn will help organizations find more creative approaches in the future.