Income drop not blamed on recession

Fundraising | Celina Ribeiro | 14 Sep 2009

Half of the non-profit organisations around the world have reported a drop in income, a new survey of 126 fundraising directors and sector experts suggests.

But fundraisers do not blame the recession for the fall, according to the study.

While 50 per cent of 126 fundraising directors and sector experts around the world reported a drop in income at their organisation, one third reported an increase, according to the Global Fundraising Confidence Survey 2009 released today.

Across the board, there was a 3 per cent fall in revenue, with European charities faring better than most in reporting an average decline of 1 per cent in fundraising income.

But despite these falls, the majority of fundraisers are confident that donations will increase over the next 12 months. More than two-thirds of Australasians and Asians are optimistic about the coming year while Europe is the most pessimistic of the regions, with only 30 per cent expressing confidence in the immediate future.

The survey, conducted by the Management Centre from May to August this year, also found that recession panic may be waning. Fifty-four per cent of respondents said that the recession alone was not responsible for their fundraising performance, with staff recruitment and a lack of effective leadership and strategy for the more harsh economic times as having a significant impact on their performance.

Bernard Ross (pictured), managing director of the Management Centre, said: "Fundraisers have been quick to adjust to the economic climate, and our experience is that roughly a third of not-for-profit organisations are stepping up to the challenge of the recession, and as a result becoming more effective and actually raising more income."

Who's Who: Celina Ribeiro

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