16 Months: The Decline in Giving and the State of Fundraising

There is a lot of alarm these days about the decline in philanthropic giving going on in the US. Mostly smaller and mid-range donors. There are many speculations about why this is the case and what we can do about it. Some say it’s the economy, some say it’s some sort of generational shift against generosity.?Nobody, including me, has a clear answer. But what surprises me endlessly is one obvious reason is rarely mentioned.

That is the state of fundraising and fundraisers. It's unfortunate I have to say this, but I do. Giving comes from fundraising, and fundraising comes from the work of fundraisers. Real people, not websites or apps. How we treat fundraisers affects giving. How couldn’t it?

Our profession is the most unappreciated, misunderstood, and poorly treated profession I know. That’s a heck of a sentence but in my 37 years in the field, I can say that with some confidence. Something you don’t need a study to tell you. However, if you need a study take a look at this one “Underdeveloped” by Compasspoint and the Haas Jr. Fund. Bless them for doing this. It’s rare to see Development Officers/Fundraisers asked about fundraising. https://www.compasspoint.org/underdeveloped?We are a largely silent profession. Many people are out there talking about giving who have never generated a gift in their lives. Fundraisers are silent because our jobs are fragile and our culture is to be behind the scenes.

For me, this study says the most about the decline in giving. If nationally development officers have only a 16-month tenure that’s shocking. How do you build good fundraising when you cannot keep your development officers? The top reason they leave is “unrealistic expectations”. ?We are the only profession I know of that is judged by people who know little to nothing about fundraising. Can you imagine a brain surgeon judged by an accountant, bus driver and a corporate lawyer? It's laughable, but its our reality.

Another stunning statistic is that this last year universities had increased giving by 12.5%. Why? I would hazard a guess that they invest in fundraising. The tough reality is that the large majority of small and medium-sized nonprofits nationally do not invest in fundraising on anything near the scale of a university. Most rely on one development officer at best, and pile 3-5 jobs on them. Grant writer, Major Gifts, do the annual Gala, send out the mailings and more. ?Investing in long-term relationship-based fundraising can be done with small teams. Their goals are set based on the needs of the organization, not on their history of fundraising. This reality is the norm nationally. Plus there are countless examples of non-university nonprofits building powerful fundraising programs, and growing giving because they invest and take a strategic view of it. ?

When it comes to declining giving, we have to ask nonprofit leaders and board members to commit to understanding and even embracing fundraising as never before. We need funders to step up and realize that fundraising is in crisis. It has been for a long time. Covid has accelerated the departure of good fundraisers from my profession. This new study, “What Makes Fundraisers Tick? A Study of Identity, Motivation and Well Being”. This study finds that perceptions of a lack of professional growth, autonomy, and board support were central factors in rising dissatisfaction and a lower commitment to the work of fundraising. Check it out. https://static1.squarespace.com/static/62d7378f7e36475c6adf18ee/t/635c317e7c826e6c3f89339b/1666986367934/What+Makes+Fundraisers+Tick+Report+V2.pdf

Finally, we need to raise fundraising as a cause unto itself. This strikes many people as odd. We need to support this profession as vital to our nonprofits. We need to start talking about the decline in fundraising. Here’s how:

• Funders need to support professional development for fundraisers.
• We need to train and educate our Boards and Leadership on the realities of fundraising. Including creating certification programs so Boards can be adequately trained.
• Funders need to ask nonprofits they support about the tenure of their development officers, about their diversification strategies in fundraising.
• Nonprofit leaders need to make strategic assessments about their investment in fundraising.

These are just a few ideas. I welcome others. Thanks for reading.?