Recession-proof Your Advancement Office: It's Time
3 Ways to Raise Money in an Economic Downturn
Appreciate Assets: Update and review your stock transfer and gift acceptance policies with Finance and Advancement. Make sure your gifts officers know how to encourage donors to talk with financial advisors about the possible benefits of donating appreciated assets (stock, real estate and closely held businesses, e.g.). When values start taking a U-turn and cash is in short supply, your institution may benefit from your donors’ capital gains.
Retain Earners: If you lose a top producer during a recession, you will fight internal budgetary pressure to leave that position vacant. As other revenue streams dry up, you need to invest in your best gifts officers. Look at the numbers: Identify those who have the highest percentage of repeat donors, those who have the highest number of new donors and those who have the highest average gift size increases each year. Offer those gifts officers a retention bonus for staying through the next 12 months as soon as the recession starts.
Lean In: Don’t pretend times are normal for you or for your constituents. Alumni will lose jobs during a recession. Be ready with a suite of useful upskilling courses - on campus and online - to help them make the most of their job search. If you do this right, you could also be opening up a new revenue stream for your institution that outlives the recession. On top of that, your temporarily cash-strapped alumni will remember that you were there when they needed you most.
Having moved into the college presidency from advancement on the heels of the Great Recession, I want you to be ready for what’s coming…and it is coming.
When you’re ready to recession-proof your Advancement Office, call me.
In the meantime, Download: 3 Things Every College President Should Know About Fundraising.
Bonus Tip: Bring that endowment spend rate back down below 5% of a 3- or 5-year rolling average. You are not alone in your “irrational exuberance” in the face of tight cash flow and stock market gains, but stop it. Stop it now.