96: Unexpected Gift
"... If donors are largely unaware of fluctuations in the grants received by charities, then reductions in fund-raising becomes a sensible explanation for crowding out..." This week, I came across a large scale research article from 2009 titled, “Is Crowding Out Due Entirely to Fundraising?” Reflection questions: If your organization suddenly lost significant government funding, what unique strengths, especially through your donor relationships, could you leverage to better serve your specific community's needs? The nonprofit sector has faced profound shifts before. Will you ponder with me how our current challenges could bring unexpected gifts as well? Reflection on quotes The last three months have highlighted a critical challenge many nonprofits face: the delicate balance between government funding and private donations. Many nonprofits have built programs around federal grants, only to see them reduced or eliminated, leaving the organization scrambling to fill the gap. So many of my coaching sessions have centered around this issue. One striking statistic from this 17 year look-back research is that every $1000 grant reduces giving by $727. So, I invite you to join me in reflecting on how the reversal of "crowding out effect” that federal funding has on fundraising may actually help us build more sustainable…