Throughout history, fundraisers have struggled to raise gifts in challenging and uncertain times, particularly in times of economic recession (see Sharpe Insights article, “The Sky Is Falling … Again! The Economics of Giving”). For those who recall the iconic hard rock band “Spinal Tap,” it is as though the amplifier has been “turned up to an 11!”

In recent years, we have experienced events and conditions that have impacted giving: terrorist acts, a global pandemic, recessions and a sharply divided political landscape. Other factors continue to impact the philanthropic world in the following areas, both globally and at home:

• Economic changes.
• Demographic changes.
• Tax and social policy changes.
• And, last but not least … the wealth transfer.

Except for the wealth transfer, all of these changes have occurred multiple times in the past and will certainly occur in some form or fashion in the future. What history teaches us, above all else, is that philanthropy will continue even though the number, size, form and sources of gifts will change based on the overall environment impacting donors.

Growth opportunities in times of contraction

Adjustments will be necessary to make the most of current giving opportunities and to minimize efforts that produce little tangible return. A few areas of potential growth in times like these include gifts from foundations, donor advised funds and the always “tried and true” planned giving—specifically noncash gifts, beneficiary designations, QCDs from IRAs and, of course, bequests, split-interest gifts and other remainders.

According to the Sharpe Knowledgebase^®, planned gifts have been shown to be especially important for our clients during times of economic downturns and hardship. Put simply: Planned gift revenue continues even when other giving slows. For instance, bequest revenue to colleges and universities was seen to increase during the Great Depression nearly 100 years ago!

While it may seem counterintuitive, data has shown that planned giving programs are even more essential during difficult economic times than in good times. If you aren’t actively marketing and soliciting planned gifts, it’s time to start. In our experience, print is the best way to communicate the planned giving message, supplemented with digital avenues. And if you have an existing planned giving program in place, consider expanding your messaging channels and, most importantly, make sure your basic data (age and wealth estimates) are fresh.

Stewardship must continue

While there are no easy answers to the difficult challenges we face today, it is important to continue to take good care of existing donors by solidifying those relationships and be able to recognize those who can give now and in the future, particularly through larger than average gifts or through multiple channels such as DAFs, foundations, matching gifts, IRA QCDs or estate plan gifts. Consistent marketing is key and having good data can make all the difference.

Together we can!

Through our training, blogs, Insights newsletter and our new podcast (launching soon), the Sharpe Group team will continue to follow these topics and provide ideas and advice to assist donors, advisors and fundraisers in discovering the best ways to give.