New Shift in Charitable Giving in Canada Could Mean Cash Flow Crunch for Non-Profits
TORONTO, Dec. 1 /CNW/ - In today's severe global economic climate, charitable organizations are required to do much more for their donors than ever before, for survival, according to a new report released yesterday. If not, a serious cash flow crisis could be on the horizon.
The research was commissioned by The Goldie Company in Toronto which is a leading Canadian fundraising firm. The research was unveiled at the Association of Fundraising Professionals Conference in Toronto. The research investigated the current state of donor trends in 2010 by surveying a number of charitable organizations across Canada. The results reveal that organizations that do little to steward donors via recognition, frequent communication and sharing, have experienced significant drops in donations and a decline in overall revenue.
"This report shines a light on where things are going and this may be a trend that reflects a fundamental shift in charitable giving in Canada," states George Stanois, Managing Director of The Goldie Company.
"It's unprecedented. Now more than ever before, organizations need to think strategically about donors who are no longer satisfied with a thank-you letter in the mail. They are more demanding, more informed and have more options of where to put their money," Stanois says.
Donors are most frequently thanked through mass distribution approaches such as thank you letters, reports and newsletters. Major donors are acknowledged through more personalized techniques such as arranging personal meetings with organization representatives, invitations to special events and telephone calls from high profile people within the organization. These three techniques used to interact with major donors are also viewed as having the most impact, though not all organizations have experienced success using these strategies and some have discontinued these practices due to a lack of results.
"It's brutally competitive and fundraising organizations need to think a lot differently than they did before," Stanois says.
"We need a new way of thinking about where the money is coming from, or we may risk a critical drought in charitable cash flow in Canada."
The Goldie Company, Canada's longest established fundraising firm, offers a full range of fundraising and management services to drive campaigns and build organizational capacity. The firm has raised in excess of one billion dollars through partnerships with clients and volunteers.
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