Business & Finance Stocks-Mutual-Funds

Money Is Scarce

When money is tight, it is easy to think of it as being scarce.
However, money is abundant but you do need to look for it in the right way and in the right places.
Many of us feel money is tight.
I certainly do but without any justification.
My income is a little ahead of last year.
I have been with my current employer for 9 years and the company is doing better than last year.
My household expenses are down a little from last year.
All of that should make me feel good.
However, I feel like money is tight and I am being more careful with my spending then usual.
Even though it is psychological, it is still reality.
I have more but am spending less because I think money is tight.
My vendors need to work harder to encourage me to spend the same as last year.
My conservative approach is making money tight for the people who are unwilling to work a little harder.
The implication for fundraising is that people are going to be more discerning about their giving.
They will want more questions answered before they give.
It will require a more compelling reason than usual to receive the same size gift as last year.
The organizations that fail to put out the extra effort will find fewer dollars in the bank.
What are the compelling reasons people gave to your organization last year? What has the organization done this year to make it more compelling to give? How has the world changed in the past twelve months that makes the need for your organization more compelling? What evidence do you have that the gifts you receive are being used more effectively? How are your services to clients more efficient this year? In short, the message to donors needs to be, "We are doing more (X) with less (Y) but there is so much more that needs to be done (Z)?"
X - In the past year we have made our programs more effective by...
Y - In the past year we have made our internal processes more efficient by...
Z - The world has changed in the following ways and it makes what we do more necessary.
The preceding formula explains why even with money being tight some organizations are seeing an increase in giving.
There are examples in all segments of the nonprofit sector.
While it is a formula that is repeatable, it is most effective when it is built on a year of intentionality rather than a backward look at the end of the year.
This implies that next year at this time things will be easier if between now and the end of the year a plan is developed to increase the value of X and Y throughout 2011.
Next Step:
Find the evidence that quantifies the values of X and Y for 2010 Create a plan to significantly increase the values of X and Y in 2011 Track the growth of X and Y each month Begin reporting to the donors the increasing value of X and Y as soon as there is a measurable and meaningful change
Focusing on X (effectiveness) and Y (efficiency) increases sustainability.
X and Y increase the sustainability of the programming.
X and Y increase the sustainability of the funding process (grants, donations, and fee for services).
How soon before you know the value of X and Y for 2010?

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