Navigating Economic Uncertainty: How Nonprofits Can Thrive During a Recession
- info3430759
- Apr 4
- 2 min read
During a recession, nonprofits face financial challenges as donations decrease and economic instability affects funding sources. To ensure your organization remains resilient, consider these three key strategies:
1) Emergency fund
During a recession, the best thing to do is to set up an emergency fund. This will help you to be able to withstand fluctuations in revenues while being able to maintain your organization's expenses.
Layoffs and a downturn in the economy means that donations will decrease. Now is the time to encourage your donors and supporters to contribute to your work. You can even remind your donors that they may receive a tax receipt if your organization is a registered charity.
2) Reduce spending
As a for-profit business, we often speak with other business owners and we are hearing the same sentiment. Revenues are down and as a result we must keep costs low. For this reason we recommend having a look at your spending in your organization.
Do you have subscriptions that you're not currently utilizing?
Are there costs that you can reduce in your operations?
Now is the time to reduce spending to be prepared for future fluctuations in the economy.
3) Diversify funding streams
It is critical that your organization diversify its revenue. This is something we typically recommend to our clients and you can do so through a number of channels.
Some popular methods to diversify revenue include:
Direct mail
Online giving
Peer to peer giving
Special events
Bequests
Major gifts
The DoGood team is available if you're looking for a paid consultation or advice on how to thrive during tough economic times. Please connect with us through your favorite social media platform, by email at info at dogoodfunding.ca or using the contact us page on our website.
PS here’s a good read from the last economic crisis. Check out “How Charities Should Respond to the Covid Crisis”