Latest / The Nonprofit Podcast / Ep 170| When Giving Slows: 4 Leadership Strategies for Nonprofits

Transcript

Ep 170| When Giving Slows: 4 Leadership Strategies for Nonprofits · The Nonprofit Podcast

• 0:00
  SPEAKER_01: I remember sitting down at my desk last June, looking at our projections and thinking, okay, this isn't just slow, this is off course.
• 0:08
  SPEAKER_01: And I had two choices.
• 0:10
  SPEAKER_01: I could hope that it turned around on its own, or I could start calling it what it was and get ahead of it.
• 0:16
  SPEAKER_01: And I chose the second one.
• 0:17
  SPEAKER_01: So what do you actually do when the revenue slows?
• 0:21
  SPEAKER_01: The Nonprofit Podcast, powered by DonorBucks.
• 0:25
  SPEAKER_01: Welcome to the Nonprofit Podcast.
• 0:28
  SPEAKER_01: I'm Kara, your voice from the front line of fundraising.
• 0:31
  SPEAKER_01: Each week we share practical information, clear insights, and inspiration to help you raise more, reach further, and drive real results to take your nonprofit to the next level.
• 0:43
  SPEAKER_01: Today we're going to have a real, honest conversation about something every nonprofit leader faces, but most of us hate to admit.
• 0:51
  SPEAKER_01: And it's what do you do when the numbers don't look good?
• 0:56
  SPEAKER_01: I'm talking about those months when giving slows and then stays slow, when your budget is tight, when your team feels the pressure, and when you're lying awake at night wondering how you're going to keep all the plates spinning.
• 1:10
  SPEAKER_01: I've been there.
• 1:11
  SPEAKER_01: I'm executive director of the Grace Care Center Foundation and lead fundraiser for an amazing community center.
• 1:18
  SPEAKER_01: In fact, last summer we were in that spot and it was more than a typical summer slump.
• 1:24
  SPEAKER_01: We saw giving dip earlier than usual and stay there.
• 1:27
  SPEAKER_01: I had to pivot quickly.
• 1:29
  SPEAKER_01: And today I want to talk about what I did, what I wish I had done sooner, and how you can lead when the financial picture gets rough without losing your cool or losing your people.
• 1:40
  SPEAKER_01: So first, name it early.
• 1:43
  SPEAKER_01: One of the biggest mistakes leaders make, it's waiting too long to admit there's a problem.
• 1:49
  SPEAKER_01: Many of us say we're mission-driven, we're optimistic, we're used to making things happen.
• 1:54
  SPEAKER_01: So we think this will turn around, let's just hang in there a little longer.
• 1:58
  SPEAKER_01: But by the time it feels like a crisis, you're already behind.
• 2:02
  SPEAKER_01: I remember sitting down at my desk last June, looking at our projections and thinking, okay, this isn't just slow.
• 2:10
  SPEAKER_01: This is off course.
• 2:11
  SPEAKER_01: And I had two choices.
• 2:13
  SPEAKER_01: So I could hope that it turned around on its own, or I could start calling it what it was and get ahead of it.
• 2:19
  SPEAKER_01: And I chose the second one.
• 2:20
  SPEAKER_01: I pulled my board in and I said, here's what I'm seeing.
• 2:24
  SPEAKER_01: We're behind.
• 2:25
  SPEAKER_01: Let's talk about some options now before we hit a bigger wall.
• 2:29
  SPEAKER_01: And that one decision made the next eight weeks manageable.
• 2:33
  SPEAKER_01: We put a big summer fundraising campaign into full swing.
• 2:38
  SPEAKER_01: We pulled it together quickly, but it was a success.
• 2:41
  SPEAKER_01: And it's one we replicated again this summer and one that our donors looked forward to supporting again.
• 2:47
  SPEAKER_01: So if you're in that moment right now, here's your first action step.
• 2:52
  SPEAKER_01: Look at your numbers.
• 2:53
  SPEAKER_01: Don't sugarcoat them.
• 2:55
  SPEAKER_01: And if they're not where they need to be, say so.
• 2:57
  SPEAKER_01: Say it out loud to your team.
• 3:00
  SPEAKER_01: Great minds can make some great momentum.
• 3:03
  SPEAKER_01: Okay, on to number two.
• 3:05
  SPEAKER_01: We lead with calm, not crisis.
• 3:09
  SPEAKER_01: Let's talk about how you talk about it, because your tone, it matters more than the numbers themselves.
• 3:16
  SPEAKER_01: You can say, We were way off budget and I don't know what we're going to do.
• 3:20
  SPEAKER_01: Or you can say, we're behind where we want to be, and I've got a few ideas to help turn this around.
• 3:26
  SPEAKER_01: It's really the same situation, but totally different energy around those.
• 3:30
  SPEAKER_01: Your team, your board, your donors.
• 3:33
  SPEAKER_01: They look to you for cues.
• 3:35
  SPEAKER_01: You're not expected to have all the answers, but they need to believe you're steering the ship.
• 3:41
  SPEAKER_01: Last summer, when I updated our board, I didn't spin it.
• 3:44
  SPEAKER_01: I said, we're under by about 18% this quarter, and that's significant, but we're already tightening our spending.
• 3:52
  SPEAKER_01: We're planning a donor re-engagement push.
• 3:55
  SPEAKER_01: So I wasn't trying to solve it all in one sentence, but I was giving them a framework.
• 4:00
  SPEAKER_01: And I think I showed that I was working on a solution.
• 4:04
  SPEAKER_01: Here's a little script you can borrow for donors or board members.
• 4:08
  SPEAKER_01: So you can say, giving has slowed more than we expected this season.
• 4:12
  SPEAKER_01: To stay on track with our goals this year, we're inviting partners to step up and help close the gap.
• 4:18
  SPEAKER_01: No panic, just clarity and invitation to help you brainstorm and figure out how to keep moving forward.
• 4:27
  SPEAKER_01: Next, number three, pivot with purpose.
• 4:31
  SPEAKER_01: So, what do you actually do when the revenue slows?
• 4:35
  SPEAKER_01: So this is where that panic can really creep in.
• 4:38
  SPEAKER_01: We feel the squeeze, we start making cuts, or worse, we freeze, right?
• 4:42
  SPEAKER_01: But here's the key: you don't have to cut your way to survival.
• 4:46
  SPEAKER_01: You need to focus your way forward.
• 4:48
  SPEAKER_01: For us, we paused two nonessential initiatives.
• 4:53
  SPEAKER_01: So they were projects that weren't time sensitive, and we redirected our energy toward revenue building work.
• 5:00
  SPEAKER_01: So we made one on one donor calls to our top 50 donors.
• 5:05
  SPEAKER_01: So here's what we said: we said help us raise$80,000 before the end of July to meet the additional need this summer.
• 5:11
  SPEAKER_01: And it worked.
• 5:13
  SPEAKER_01: Not because we launched a flashy campaign, but because we got focused, we got personal, we got clear about what mattered most.
• 5:22
  SPEAKER_01: And so here's what I want to ask you in a moment like this.
• 5:26
  SPEAKER_01: Consider what's essential to protect?
• 5:29
  SPEAKER_01: What can wait?
• 5:30
  SPEAKER_01: Where can we invite people into the story right now?
• 5:34
  SPEAKER_01: In our case, we had a really great reason to give during the summer months that inspired our donors to come around.
• 5:43
  SPEAKER_01: So let's talk about number four.
• 5:46
  SPEAKER_01: Transparency builds trust.
• 5:49
  SPEAKER_01: Here is a surprising thing that happens when you're transparent.
• 5:53
  SPEAKER_01: People want to help.
• 5:55
  SPEAKER_01: It's easy to think that being honest about a downturn will scare donors away, but more often it draws them in.
• 6:02
  SPEAKER_01: People give because they care about the mission and they want to feel like insiders.
• 6:07
  SPEAKER_01: Like their gift makes a difference and a real moment of need.
• 6:11
  SPEAKER_01: So, for instance, one of our largest supporters just shared with me that he was happy to help when we reached out explaining we were short during a recent back-to-school backpack drive.
• 6:22
  SPEAKER_01: They sponsored 100 backpacks because of that one conversation.
• 6:26
  SPEAKER_01: And last summer, when I shared that summertime is often stretched thin for many organizations, including ours, a longtime supporter called me and said, I appreciate your honesty.
• 6:38
  SPEAKER_01: I know this isn't easy, but I believe in what you're doing and I want to help.
• 6:42
  SPEAKER_01: We ended up meeting for coffee.
• 6:44
  SPEAKER_01: They gave one of the largest gifts we received that quarter.
• 6:47
  SPEAKER_01: And I've been able to have some conversations with additional supporters since then, explaining that it's really helpful when donors give during slower seasons, not just at year end.
• 6:57
  SPEAKER_01: It's nice to be able to explain that and see the response.
• 7:01
  SPEAKER_01: That wouldn't have happened if I'd stayed quiet.
• 7:04
  SPEAKER_01: So, yes, be wise in how you share.
• 7:07
  SPEAKER_01: Don't broadcast fear, but don't hide that need either.
• 7:10
  SPEAKER_01: It's really a delicate balance, but I know you can do it.
• 7:13
  SPEAKER_01: And lastly, please know that you can lead through this.
• 7:17
  SPEAKER_01: If the numbers don't look good right now, I want you to hear me clearly.
• 7:22
  SPEAKER_01: You're still a good leader.
• 7:24
  SPEAKER_01: And this isn't a failure.
• 7:26
  SPEAKER_01: It's a moment, one that you can grow through.
• 7:29
  SPEAKER_01: For me, this summer looks a lot better than it did a year ago.
• 7:33
  SPEAKER_01: That rough moment turned into momentum.
• 7:36
  SPEAKER_01: Every nonprofit hits a tough season and sometimes a lot during the year, but what matters is how you respond.
• 7:44
  SPEAKER_01: So here's your recap today.
• 7:46
  SPEAKER_01: Name it early, don't wait until it's a crisis.
• 7:49
  SPEAKER_01: Lead with calm because your tone sets the temperature.
• 7:53
  SPEAKER_01: Pivot with purpose, not panic, and be transparent because that honesty, it builds trust.
• 8:00
  SPEAKER_01: You don't have to white-knuckle this alone, and your mission, it's worth fighting for.
• 8:06
  SPEAKER_01: You've got this.
• 8:07
  SPEAKER_01: I'm rooting for you.
• 8:09
  SPEAKER_01: And thank you for being part of the nonprofit podcast community.
• 8:13
  SPEAKER_01: Your work matters, and we're honored to support it.
• 8:16
  SPEAKER_01: If you enjoyed this episode, share it, leave a review, or subscribe to our YouTube channel.
• 8:22
  SPEAKER_01: Until next time, take that first step and stay inspired.
• 8:27
  SPEAKER_00: That warm feeling when you help someone, it's not just happiness, it's fulfillment.
• 8:32
  SPEAKER_00: And we believe it should be available to everyone.
• 8:34
  SPEAKER_00: From frontline heroes to first time fundraisers.
• 8:38
  SPEAKER_00: Our tools empower you to help others.
• 8:41
  SPEAKER_00: This is our mission.
• 8:42
  SPEAKER_00: This is Donorbox, helping you help others.