The Impact of Corona-virus on the Philanthropic Sector & Fundraising....

We’re only midway through March, but it has already been an incredibly active year, from the Australian bush fires, earthquakes in Puerto Rico, and now this corona virus. On March 11, 2020, nearly two months after announcing a global health emergency, the World Health Organization declared the COVID-19 outbreak a pandemic. Caused by the virus SARS-CoV-2, the disease originated in Wuhan province of China but since has spread to every continent except for Antarctica.

As disasters go, the Corona virus impact on the philanthropic sector can be deemed "crazy, disastrous, unnerving and unsettling", caused by the likely cancellation of hundreds of fundraising events globally. In the event of a lock-down, lots of charities have no cash reserves, and hence, they are reliant on fundraising events, which are being cancelled.

Added to this is the introduction of formal social distancing, self-isolation and quarantine guidance nationally, which could also have a deep effect on the nation's volunteer system, which is the backbone of many non-profit organizations, on whom many local services rely extensively. In addition, many employees of non-profit organizations are facing wage cuts, reduced work hours and even lay-offs, as many charities are losing up to 80% of their income due to travel and events cancellations.

In the wake of this pandemic, The National Emergencies Trust (NET) of UK has launched a corona virus fundraising appeal to raise funds for local charities.

NET will award grants and distribute money raised through a number of charitable organisations, for example local community foundations.

Partners will work within parameters agreed with NET “to help identify the greatest need and distribute funds with both care and speed wherever possible”. Individuals and charities should not apply directly to the NET for funds. Local charities should contact their local community foundation to apply for funding.

The Need for Sustainable Fundraising

CCS, a New York based strategic fundraising consulting firm with a rich history of 70+ years of impacting the World through Philanthropy, suggests the following specific measures and guidelines on fundraising strategies during the Corona virus crisis:

• Increase communication: Keep your stakeholders fully informed and deeply engaged. Donors and stakeholders are interested in how organizations are affected by the current situation, and what actions are being taken.
• Avoid wholesale cancellation of fundraising plans: Adhere to your overall fundraising plans and strategies, with reasonable adjustments to your day-to-day meetings, events, and activities, depending on your local circumstances.
• Reaffirm your mission and impact: Reaffirm your organization’s mission and continuously remind donors of the impact of your work. If you have a special role to play in the current public health issue, explain it.
• Develop a short-term action plan: Develop a plan of action, including a communications plan over the next several weeks, featuring an outreach initiative of personal calls and emails to key donors and friends.
• Leverage technology: Find ways to more effectively incorporate video conferencing, podcasts, or virtual briefings that make meetings more dynamic and create more personal experiences regardless of distance. Consider how social media or other virtual platforms can serve as temporary alternatives to in-person convenings.
• Motivate: Redouble efforts to help motivate development staff, administrative leadership, and trustees by reminding them of the resilience of philanthropy in difficult times. Donors who feel engaged and connected will continue to support their beloved institutions, especially in times of crisis.
• Consider special briefings: Consider hosting a series of teleconference briefings with stakeholders on issues pertinent to the current situation. Donors and constituents are interested in knowing how a nonprofit is responding to the current situation: whether classes, events, services, or performances are being altered or canceled; how employees are being cared-for; how operations are affected; if any new services or programs are being initiated in response to current circumstances.
• Engage, engage, engage: We have all been impacted by COVID-19 in some way. Giving is a two-way street and donors want to know that you value them and are concerned about their welfare. During these challenging times, those nonprofit organizations that stay the course and engage extensively with their stakeholders, emerge greatly successful.

These situations offer an important time for nonprofits to demonstrate their relevance and cement their relationships with their donors and friends. Donors look to these organizations as vital resources.

In the past, those donors who stopped supporting specific nonprofits during or after a crisis did so primarily because they no longer felt connected to them.

• Jerry Hauser, CEO of the Management Center, said nonprofits should look at the current market turmoil "as a one-time or short-lived event" and said nonprofits should avoid laying off staff or making other major structural changes under the assumption that a recession is imminent. It’s too soon to say we’re in for a long, rough road, and it’s too risky to erode your ability to deliver on needed programs. This is a good time for organizations to consider using their reserves."
• Sandi Clement McKinley, vice president for advisory services for the Nonprofit Finance Fund, agreed that the coming weeks and months may be a good time for nonprofits to consider dipping into reserves, if available, while making a commitment to restore those reserves later. That’s a conversation that should include the board of your nonprofit, she said. She also urged nonprofits to focus on their core missions at a time like this and to shelve plans to expand into areas where they don’t currently have expertise or experience.

Meanwhile, donors and foundations continued to pour money into efforts to fight the corona-virus. Philanthropic funding to combat the corona-virus has topped $1 billion, including $182 million from U.S. sources. The nature of the current crisis is particularly daunting for donors who may lack the expertise to know how best to help with needs directly related to the corona-virus, such as drug development. Therefore, many donors are taking a "wait-and-watch" approach to the impact of the corona-virus.

The corona virus has already reached its long tentacles into our community. From how we work, to how our children are educated, to how we interact and support each other, to how we advocate for the health and safety of ourselves and our loved ones, it’s a stressful time right now for everyone around the world. However, when a group of social change-makers comes together, wonderful things begin to happen:))

Since the start of this devastating Corona-virus pandemic, businesses have been looking inward as they evaluate their workplace policies and figure out how best to ensure the safety of their employees while keeping their operations running. However, of late, many companies and non-profits are beginning to look outward to identify the ways their business and employees can help nonprofits and people in the community. The benefits of workplace giving are becoming more poignant than ever! 

Just as we have seen in the case of natural disasters, I expect to see a surge in employers using their workplace giving programs as an outlet for their employees to safely donate to Nonprofits and Charities with corona-virus initiatives. 

While the full scale of the corona-virus toll has yet to be seen, one thing is crystal clear: Nonprofits all across the U.S. are playing an absolutely vital role in addressing and mitigating the impact the corona-virus will have on communities across our nation, and filling the void made by the lack of government resources.

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Thank you for reading!

I hope you found this article informative, useful and relevant to the current health crisis that the world is witnessing in the form of COVID_19 and trying to come to terms with. I have focused on the Non-Profit sector, since these organizations will be the hardest hit during such times of economic volatility with severe cash-flow crunch and depleted reserves!

Follow me on twitter: @radhyka

**//**Additional research, inputs & excerpts from csrwire.com, philanthropy.com, ccsfundraising.com, theguardian, civicsociety.co.uk, etc.,**//**

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