I've been asked by my nonprofit clients and friends recently about how the economic downturn may impact everything from major gift fundraising to annual support efforts to capital campaigning.  I'm not a trained economist, but I know what I have witnessed, what I have lived through since I began to raise money professionally. 

My short answer is "No, I don't believe we'll see a huge impact, one way or the other, in the next six to eight months." 

I believe in my answer because of two things: First, when a free market balances itself (call it correction, contraction, recession, or depression) it does so gradually and in small cycles that do not largely impact, on balance, an organization's entire donor base. 

Secondly, if organizations continue to focus on the right way of doing personalized (read: donor centered) fundraising, then by in large, they'll come out fine with perhaps minor shortcomings along the way.  I take a simple approach to this stuff and have a glass-half-full perspective. 

Since 1985, I've been paid to raise money for not-for-profit organizations.  At that time, our country delightfully viewed the 1982 recession in its rearview mirror, and was raising record amounts in charitable contributions.  In fact, in the second half of the 1980s, America witnessed a huge growth in the number of charitable organizations. 

Then came the 1990-91 recession lasting 8 months.  The national organization that I was working for at that time launched some major fund raising initiatives and saw tremendous philanthropic growth from such sources as direct mail, memorial giving, special events, and most appreciably, planned giving and bequests.

Then came the next boom and bust. Living in the heart of Silicon Valley during the build up of the technology craze was a blast--something surreal and phenomenal from most perspectives.  So when the proverbial high tech bubble burst in 2001, I had transplanted to New England and managed a number of very successful capital campaigns, including a $10 million new YMCA that was leveraging its local support through a Kresge Foundation challenge grant.  Once again, the big economic downturn did not hurt our fundraising efforts.

Fast forward to our current slowdown.  However you wish to refer to it, the only thing for certain is that we are not currently experiencing a boom, economic expansion, or long term trend growth, as the economists would say.   People are worried again--what will we do in the middle of our campaign if we cannot raise the money? 

Last week in the New York Times, reporter Stephanie Strom (March 14, 2008 Weakness in the Economy Isn't Hurting Charities) reports that 64% of the charities reporting into a recent AFP survey suggest that they are raising even more money today than last year!  So far, so good. 

So, what now?  Let's turn to my second reason for optimism: healthy organizations that stay the course, redouble their efforts, and focus on building long-term, sustainable donor relationships can and will weather any economic downturn--and might even see some slight increases. 

My closing advice: instead of focusing on something you cannot control--the economy--you'd be better off focusing on building stakeholder relationships, making solid asks, and paying attention to the tried and true elemental basics of fund raising and donor relations.  This economic downturn will be long gone before we know it, and we'll be left with lots of good donor relationships!