Fundraising sector defies downturns
Monday November 03 2008
THE non-profit sector has proved surprisingly resilient in times of crises and market turbulence, according to a report published by management consultants and non-profit sector specialists, 2into3.
The report 'Fundraising in a Cold Climate' provides a comparative analysis of the impact of significant world events on fundraising versus market performance, and also examines the impact of recessionary periods in the sector.
The report looked at specific events across a 70-year period from the fall of France in WWII through to the September 11 attacks and, with one exception, in declining markets donations increased between 4pc-42pc.
In 2002, when the Standards & Poor index dropped by 23pc, philanthropy actually increased by 1pc. Over a 40-year period, the report found that, adjusted for inflation, donations on average drop by merely 0.7pc during times of recession.
Dennis O'Connor, director of 2into3 and co-author of 'Fundraising in a Cold Climate', suggests that while there will be changes to the manner and sources of giving, if history were to repeat the trend, then planned giving could potentially increase.
- Philanthropy
