Long-term donors are key to surviving economic crisis, charities warned

By Hannah Jordan, Third Sector Online, 9 October 2008

Long-term donors are key to surviving economic crisis, charities warned

Charities should nurture loyal supporters to survive the looming recession, fundraisers at a conference in London have been told.

John Studzinski, a philanthropist and investment banker, told delegates at the Raising Funds from the Rich event this week that the economic conditions meant that donor behaviour would become polarised and charities would lose ‘fair-weather' supporters.

Loyal donors would want to help charities succeed, he said: "If you approach them appropriately, those who care most passionately about your work will stand by you and see you through this period."

Studzinski predicted major donors and foundations would cut back on grants because of their reduced income and donors would become more aggressive about seeing their money go towards the cause and not into overheads.

He also said that corporate giving would fall and warned charities not to rely on it for income. "Don't take companies too seriously - they tend to see you as a marketing tool," he said. "They will cut back on your donations before they cut back on people."

Governments are also likely to reduce community spending and cut charity funding, according to Studzinski. But charities should not panic, he said.

"This is going to be a tough period for charities, but I think that we can learn a lot and emerge stronger."

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One Small Voice?

One Small Voice?, 13 October 2008, 10:23

Really? Thank the lord for 'expert' commentators. How would we survive without their incisive insights?

It is disturbing, however, if major donors are going to become more 'aggresive' about ensuring that their money goes 'towards the cause' and not (essential) overheads at precisely the time when charities need suporters to take a more mature approach and invest in their ongoing viability.

Cutting down on proper management and governance is not going to ensure that your favourite charity rides out the storm.

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lyndsey maiden

lyndsey maiden, 15 October 2008, 10:04

I agree completely with the comment. With regards to the major donor element- for goodness sake how on earth are charities meant to meet all of the stringent monitoring requirements and huge admin burden without these essential overheads. These overheads that funders are so often reluctant to support are the backbone to an organisation. Sorry but you cannot rely on volunteers to answer the phone all the time nor can you rely on them to do the Sorp, or fill in the monitoring forms etc. Not because volunteers are no good but because volunteers should not have to do these jobs. Volunteers should enhance a charity but should not prop it up!

I agree we all need to become leaner in these times however I know very few charities that don't already run on lower than average wages, using one person to do two jobs and cutting costs at every opportunity. Where are the cuts to be made!!!?

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