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CYGNUS APPLIED RESEARCH:
WHEN ASKING FOR DONATIONS, IT DEPENDS ON WHO’S ASKING

- Survey Among 22,000 Donors Finds Volunteers Key in
Attracting New Money for Not-for-Profits -

(Chicago) April 21, 2009 -- Many volunteer solicitors for not-for-profit organizations have become increasingly gun-shy about asking for charitable donations in today’s economy, for fear of a negative response at a time when money is tight.  However, according to a study of nearly 22,000 American donors, conducted by Cygnus Applied Research, a leading market research and fundraising consulting firm specializing in the not-for-profit sector, people are happy to give, but it all depends on who’s asking.

“The development directors and CEO’s we’ve spoken with noted the recession has caused their Boards and other volunteer solicitors to become very reluctant to ask for gifts,” said Penelope Burk, president of Cygnus Applied Research. “It’s not that volunteers are afraid of getting a ‘no’; it’s that they’re convinced, because people are so anxious about spending money in this down economy, that they’ll get, ‘Are you crazy?  It’s a fundraising Catch-22.  Donors can be influenced to give because volunteers make the ask; but volunteers aren’t asking for fear that donors won’t give.”

This reluctance, Burk notes, is accelerated when it comes to donors they know personally. In good times, connection is a huge advantage; in bad times, volunteers worry about opening up embarrassing conversations with friends and colleagues who have been hurt by the recession.  

These concerns are unfounded according to The Cygnus study, “Philanthropy in a Turbulent Economy” which reports that 42.5 percent of donors would give this year to a cause they had never supported before if asked to do so by a leadership volunteer or by someone they know personally, while just 16.2 percent are not open to supporting new causes during the recession.

Additionally, 52.3 percent of donors said they are still planning to give to charity in 2009, and of those respondents, 78.6 percent plan to give the same or more this year to organizations they have previously supported if they get a personal appeal from a volunteer or someone they know.

The study also found that 67.6 percent of study donors who are volunteers themselves said they would be more likely to double the value of last year’s gift if it was for an organization for which they volunteered, either now or in the past.

“Despite what many not-for-profit Board leaders think, donors can be influenced to give especially if those asking are people they trust,” says Burk. “Volunteers are people donors can trust because they give their time and take responsibility for charities at the highest level. At a time when trust is a scarce commodity, not-for-profits’ leadership volunteers represent all that is still good and right in the world.”

Burk provides suggestions for how not-for-profits can best market their cause by continuing to appeal to their donors in a down economy:

• Donors are more open to the possibility of making a first-time gift to an organization if it is working to relieve suffering caused or made worse by the economic downturn. Not-for-profits should assess their programs and services and the results that those activities achieve through the filter of serving the community in ways that mitigate the impact of the recession.
  
• All organizations, not just human services and healthcare, have a case for helping people affected by the downturn. For instance, the arts can be marketed as productions that provide momentary escape or reflect on life experiences during historical economic crises, while environmental organizations can position themselves as innovative businesses of the future that will help turn around a failing economy and save the planet.
  
• Being relevant in this economy will not be enough to ensure a stable fundraising operation. Not-for-profits must communicate their results, in measurable terms, even to first-time donors making modest contributions.
  
• Leadership volunteers are a not-for-profits’ most important asset during a recession. Donors say leadership volunteers’ have the most influence over their giving decisions. Using volunteers to ask for contributions and having volunteers thank donors for gifts already received are powerful tools in engendering donors’ trust and willingness to give again.

“Philanthropy in a Turbulent Economy” is available for sale from Cygnus Applied Research by calling (800) 263-0267 or by visiting the company’s web site at http://www.cygresearch.com/press

Methodology

In January 2009, Cygnus Applied Research, Inc. engaged almost 22,000 American donors in an on-line survey about their long term and recent giving history, how they had personally been affected by the economic downturn so far, and whether and how the recession will impact their philanthropy in 2009. Overall study results are accurate within a margin of error of +/-0.74 percent, nineteen times out of twenty.

About Cygnus Applied Research, Inc.