According to the Philanthropic Giving Index (PGI), a report by the Center on Philanthropy, the climate for fundraising in the US has declined almost 9 percent for the first half of 2009, continuing the downward trend from 2008. In fact, positive fundraising attitudes among the professionals polled for the report has declined by 29 percent since one year ago.

The report reveals that 86 percent of fundraising professionals say the U.S. economy is having a negative or very negative impact on fundraising now—a gain, when compared to the 93 percent who believed so in December of 2008. 60 percent expect the negativity to continue over the next six months, while 23 percent say the economy will have a positive affect on fundraising.

The PGI is similar to the Consumer Confidence Index, which is used by economists and forecasters to measure Americans’ buying habits. The Center polls nonprofit fundraising professionals to compile the report, which also shows that the current giving environment fell to the lowest level ever since the study began in 1998.

Fundraisers for arts, culture and humanities organizations and human services nonprofits feel they will have a more difficult road ahead, while educational and religious fundraising professionals are more optimistic about the current situation.

Donors are still giving, although the pace and amount has slowed. Nonprofit managers need to continue with consistent, focused messaging and marketing efforts to stay top-of-mind in their supporters’ and donors’ minds. Building relationships with prospective donors is also extremely important—as is finding creative ways to make it easy for donors to give.

Fundraisers report that Internet and email fundraising, along with direct mail, are the most successful venues for getting donations. Foundation grants and major gifts are falling, 23 percent and 39 percent, respectively since December 2007.

The good news is that expectations for the next six months are better, while still short of true optimism. Nonprofit organizations (NPOs) will likely face continued difficulties in raising funds. But, it’s difficult to predict how the recession will impact charity giving—because the only thing predictable is uncertainty!

Tags: Affect on Fundraising, Charitable Giving, Non Profit Management, US Economy

This entry was posted on Friday, August 7th, 2009 at and is filed under Marketing for Nonprofits, Nonprofit Management. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.