GIVING USA also tracks where the money is going. Religion and Education receive the largest slices of the receiving pie. Human services, which has been a growing sector since 2001, came in third at $29.64, making it 9.7% of the receiving pie.

Although giving increased in 2007, now more than ever – make your case for support to the right donor, for the right initiative, in the right way for the right amount, and stay tenacious!

To learn more about the Giving USA Foundation and to order a copy of GIVING USA click here.

Ten Tips for Tough Times

Tough times call for concentrated communication and creativity. People will respond especially in difficult times. They are more aware that there are needs in the community, they will dig deeper and give to the organizations they care most about. Click here for Ten Tips for Tough Times.

Preparing for Budget Shortfalls and
Implementing Stopgap Funding Strategies

So much can happen to derail the best laid financial plans - weather disaster, unexpected client needs, shocking loss of a significant funder, delayed reimbursements from contracts, etc. You can avoid most budget shortfalls by planning in advance. There also are steps you can take to respond with stopgap funding strategies as shown by the tips below.

Preparing for a Budget Shortfall by Planning in Advance
Build Diverse Streams of Funding	Cultivating multiple streams of funding from government ,foundations, corporations and individual donors is critical to ensuring that your program does not rest on one funding entity alone – leaving it vulnerable to fiscal disaster.
Develop a cash flow budget	Review a cash flow budget at least every 6 months to help forecast changes to anticipated cash flow and expose potential shortfalls. Click here to download instructions and a sample cash flow budget.
Work with your volunteer leaders to develop a three-point plan	Your stakeholders – volunteer leadership, major donors, banking vendor, etc. – will appreciate your diligence by asking their advice in developing a three-point budget shortfall plan of response occurring as a result of emergencies, disasters, etc.
Establish an Emergency Fund	Save your money and establish a “Rainy Day Fund”. This emergency fund should have at least a 3-month operating balance.
Obtain a Line of Credit	A Line of Credit is a pre-established loan authorization with a specified borrowing limit. The line of credit is extended by a lending institution to an organization based on its creditworthiness. Prepared by a lender most familiar with your operation, this preparatory step should be done when your financials are healthy.
Implementing Stop Gap Funding Strategies When a Financial Crisis Occurs
Draw from Emergency Fund	Use your “Rainy Day Fund” to keep your services humming, giving you time to correct the shortfall.
Activate your line of credit	You have prepared for it, now use it!
Create an emergency Resources Now! team	This is an “all hands” team of fundraising volunteer leaders and friends working to help the organization close the funding gap.
Inform major supporters, volunteer leadership, etc. immediately	No one likes surprises; keep your stakeholders informed. With advance warning, their influence can help close the funding gap through relationships with foundations and other funders.
Secure a challenge grant	Major funding stakeholders can pool and attract resources from funders and issue a challenge grant to be matched at whatever percentage by funds raised through your organization’s donor database.
Mail an emergency fund appeal	By sending a mail appeal (to a previously responsive fundraising database) which features a Challenge Grant could encourage increased support in this emergency. P.S. Avoid the emergency “we’re about to close our doors” jargon. It does not build donor confidence even though donors may respond once to an emergency appeal, they will not give again to the same appeal.
Negotiate payments to vendors	If you are really in a bind, you may wish to negotiate a payment schedule with vendors. Perhaps you will be able to extend payment to 60 or 90-day schedule.

Let us know

Have you found ways to raise funds in tough times?
Contact us at LEADline@CampaignConsultation.com
(LEADline is sponsored by the Corporation for National and Community Service through its Resource & Fund Development Initiative.) We would be happy to answer questions or to give you more support.

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