Many organizations across the United States are feeling the pressure of an increasingly unstable funding environment. Government budget cuts are disrupting service delivery and, once again, fundraising teams find themselves on the back foot. Today’s circumstances may remind you of the beginning of the COVID-19 pandemic five years ago, or maybe you’re having flashbacks to 2008 at the start of the Great Recession? When the social sector experiences upheaval, the nonprofit industry naturally wants to lean into helping as many people as possible. As a leader, your gut reaction may be to prioritize programmatic spend. However, you won’t be able to deliver your mission if you run out of money. For example, during the COVID-19 pandemic, organizations with reserves thrived. Those without closed their doors.
Reserves are your organization’s oxygen mask. Collaborate with your board of directors and identify the right balance between plugging immediate budget holes and building reserves for the future. Historical data indicate that individual major gift giving is more resistant to economic uncertainty, recessions, and other external shocks and factors. Consider a scaled campaign focused on your high- and medium-capacity individual prospects and donors. Build a persuasive business case highlighting how their investment in your organization’s financial stability will impact the community now and for future generations. The sooner you start, the better! If you or your board are unsure where to begin, contact us at Sharity. We can review your organization’s financial stability and well-being with you, and help you plan a campaign to build a healthy reserve balance.