From the Desk of

Kevin Smyrle ¦ Associate Partner

Major Gifts Are Up…But Uncertain Times Means Attention is Necessary

You may recall in my last column, I discussed the role of technology, specifically AI, in the world of fundraising. While it’s an incredibly powerful tool, I hope we all agree that AI cannot replace the value of human connection in building relationships between our donors and our organizations. As I write this, the Dow Jones has experienced a significant drop followed by a rebound and is within 100 points of where it stood a month ago. The tech-heavy NASDAQ also has dropped, but historically, it continues to gain in value year over year. Who would’ve thought just a few short weeks ago that much of the NASDAQ decline would be due, in large part, to AI, as many AI Chip manufacturers and AI focused technology companies are experiencing retractions?

It’s no secret that economic uncertainty and market downturns can significantly impact philanthropy, especially major gift philanthropy. Many investors are fleeing to “safety” today, but most of our organizations don’t have the equivalent of a safe haven during rough economic patches. This doesn’t mean that major gift fundraising should be put on hold. However, let me suggest that, maybe we do have options after all. No, an AI bot can’t bring gifts to fruition or add to our organization’s bottom lines, but a robust pipeline can. In fact, it’s precisely during uncertain, challenging times that a strong pipeline becomes essential.

A well-cultivated major gift pipeline requires consistent attention, nurturing, and strategic planning. It’s about identifying potential major donors, building relationships, understanding their passions, creating and maintaining genuine connections. While AI can assist in identifying prospects and tracking interactions, it cannot replace the art of human engagement. If your organization has spent the necessary time and energy cultivating a robust pipeline then you, at least, have a little less to worry about.

But if you are like some organizations, then you’ve had some good years while the market was roaring. Savvy donors used appreciated assets to make gifts, several gifts came in earlier than you anticipated, and perhaps even at much higher values. Too often this happens at the expense of the major gift pipeline. It’s precisely in these times that we need to redouble our efforts to fill the pipeline. Give extra attention to the annual fund, increase qualification and cultivation efforts, be creative with planned giving. The hard part is balancing this work with the need for cash in the door now. Double down on your data and work with engaged prospects that love your organization. Volunteers, consecutive donors, and grateful recipients, if appropriate.

In times of economic uncertainty your supporters know their support is needed. Don’t be afraid to communicate openly and honestly with your donors. Keep them informed about your organization’s challenges and successes. You’ll likely find some gifts you weren’t expecting and continue to build your pipeline that will ensure your organization’s future success.