Critical Fundraising Steps for Nonprofit Leaders During the Pandemic
During a crisis like COVID-19, fundraising becomes more critical than ever. With staff being laid off and major fundraising events cancelled, it’s no wonder nonprofit leaders are losing sleep. Here are five critical fundraising steps that we can take today to ensure that our nonprofits survive the pandemic.
A person (resembling Sisyphus) pushing a round rock uphill as the sun is setting.
1. Consider applying for the payroll protection loan program. It’s a forgivable loan as long as you keep all of your employees on payroll and spend over 75% of the funding on payroll. For more information, visit the Council of Nonprofits’ Cares Act Information Website.
2. Contact your funders. A lot of foundations have already given out rapid response or relief funding to their current grantees. If you haven’t received it yet, ask for it. You can also try to negotiate extending deadlines for your work plan or try to shift the objectives/outcomes in the plan and budget so you can focus on serving the communities who need it the most during COVID.
3. Think ahead with your fundraising. (also to start building a small reserve). Appeal to your current and past donors. Be specific in the dollar amounts you’re trying to raise, and why it’s critical they need to support your organization now. Things are only going to get worse with the economy, so it’s appeal to the hearts of your community now, rather than wait. Also consider creative fundraising strategies like grassroots efforts or giving circles.
4. Create a cash flow projection. How much do you have in reserves? Which funding sources do you expect will come through vs. which funding streams might you have to diversify? Do you know much you have in cash vs. investments (for those of us privileged enough to have investments)? The Nonprofit Finance Fund has templates that you can use to calculate these numbers.
5. Trim your budget. What can you cut? This is one of the pain points of your nonprofit. If you don’t have reserves, and you’re not willing to cut any programs, operations, etc. you’re only going to be in a deeper hole later. If your organization decides not to apply for the payroll protection or the loans now, then consider that you may have to lay people off. That’s one of the most heartbreaking decisions that nonprofit executives have to make… and it’s one of those responsibilities we take on when we sign up to be in a leadership position.
For more information and resources on development/fundraising, supporting your staff, and/or finances, check out my COVID-19 resources page.