The Cause+Effect Podcast What to Do When Giving Drops
Jun 5, 2025
Rick Dunham, founder and chairman of Dunham & Company, brings his fundraising expertise to tackle the challenges nonprofits face during downturns in charitable giving. He discusses the impact of economic factors on donor behavior and reveals practical strategies for engaging lapsed donors. Dunham emphasizes the importance of transparency and compelling storytelling, and highlights the potential of legacy giving. His insights offer actionable advice for organizations striving to sustain funding in uncertain times.
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Donor Giving Fluctuations
- Donors' giving largely depends on their personal financial situation and psychological context.
- The COVID cash influx in 2021 led to record giving, but inflation in 2022 caused a sharp decline followed by stabilized, flat giving.
Prioritize Strategic Budget Cuts
- Avoid across-the-board budget cuts as they can harm income generation.
- Focus cuts on non-mission-critical areas and preserve marketing and fundraising budgets.
Engage Donors with Transparency
- Double down on re-engaging lapsed donors through targeted communication and thank you campaigns.
- Be honest with donors about financial struggles without sounding alarmist to encourage support.