Nonprofit Lowdown: Fundraising Fri-Yay #1 - Recession Ready Playbook
Host: Rhea Wong
Release Date: August 1, 2025
Podcast Description: Nonprofit Lowdown reviews and recommends the best ideas, resources, tools, tricks, and tips to run your nonprofit like a pro.
Introduction
In the premiere episode of Fundraising Fri-Yay, Rhea Wong tackles the pressing issue of navigating nonprofit fundraising amidst economic uncertainty. Acknowledging the anxiety caused by fluctuating federal funding and economic instability, Rhea offers a comprehensive "Recession Ready Playbook" designed to help nonprofits sustain and even thrive during challenging times.
State of the Nonprofit Sector
Rhea opens the episode by addressing the tumultuous economic landscape in the United States, emphasizing how unpredictable federal funding has left many nonprofits feeling "completely whipsawn and crazy" (00:25). She reassures listeners, drawing from her "20 plus years of fundraising" experience, that such challenges are temporary:
“This too shall pass. If it's not one thing, it's going to be another.” (00:25)
Be the Thermostat, Not the Thermometer
Rhea introduces a pivotal metaphor to frame the nonprofit response strategy:
“It is much better for us to be the thermostat and not the thermometer.” (01:15)
She explains that while external circumstances may be uncontrollable, nonprofits can manage their reactions and strategies to adapt effectively.
Recession Ready Playbook: Key Strategies
Rhea outlines a four-step playbook to help nonprofits navigate economic downturns:
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Retention: Doubling Down on Existing Donors
- Importance of Retention: Retaining donors is more cost-effective than acquiring new ones. Even a modest 10% increase in retention can double revenue.
- Strategies:
- 90-Day Gratitude Sprint: Handwrite notes, make thank-you calls, and send quick impact photos to top donors (02:30).
- Early Warning Signs: Use CRM tools to flag lapsed donors and intervene appropriately.
- Monthly Giving Upgrade: Encourage one-time donors to switch to recurring donations, typically between $15-$25.
- Matching Pool: Secure a one-to-one match from major donors to boost response rates by 20-40% in uncertain times.
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Widen and Steady Your Revenue Mix
- Diversification: Reducing reliance on a single revenue stream by introducing new income sources such as corporate sponsorships, fee-for-service training, e-courses, or low-cost merchandise.
- Long-Term Growth: Acknowledge that new revenue streams may take time to develop but start implementing them immediately.
- Donor Advised Funds: Tap into the $250 billion available by reminding major donors of their ability to recommend grants.
- Legacy Planning: Host estate planning seminars or webinars to encourage legacy gifts.
- Skills-Based Volunteering: Engage corporate partners in providing pro bono services like legal or marketing support.
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Communicate for Confidence, Not Crisis
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Radical Transparency: Share a quarterly one-page dashboard detailing financials and impact to build trust.
“Drop a one page dashboard each quarter that shows the dollars in, dollars out and the lives change.” (05:00)
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First Storytelling: Use personal stories and short videos to illustrate impact, making communication more relatable.
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Engagement Channels: Foster two-way communication through virtual town halls or groups to keep supporters engaged.
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Build Internal Shock Absorbers
- Scenario Budgets: Create green, yellow, and red scenarios with predefined expense triggers to respond swiftly to financial changes.
- Operating Reserves: Aim to have at least three months of cash on hand to demonstrate stability and provide peace of mind.
- Shared Services: Collaborate with other organizations to share back-office costs or co-host events.
- Automation: Leverage AI to handle low-value tasks, freeing up staff for strategic stewardship activities.
Actionable Steps and Quick Wins
Rhea emphasizes the importance of taking immediate, manageable actions to build momentum:
- Audit: Map every revenue stream and retention metric to identify single points of failure.
- Prioritize: Select one retention strategy and one diversification move to implement within the next 90 days.
- Measure and Share: Track results publicly to build confidence and demonstrate progress.
Quick Wins:
- Coffee with the CEO: Host a 30-minute Zoom Q&A for mid-level donors.
- Monthly Gift Emails: Launch an email campaign targeting new and low-dollar donors with $10 starting asks.
- Corporate Micro Projects: Engage corporate partners in small volunteer initiatives.
- Board Referral Challenges: Encourage trustees to introduce new prospects and host VIP site visits.
Conclusion
Rhea wraps up the episode by reiterating that while economic headwinds may temper generosity, they don't extinguish it. By focusing on donor retention, diversifying income sources, and maintaining transparent communication, nonprofits can emerge from downturns stronger.
“Economic headwinds filter generosity. They don't kill it.” (16:30)
She invites listeners to download the free playbook from the show notes and offers a strategy call for personalized assistance.
Notable Quotes
- “This too shall pass. If it's not one thing, it's going to be another.” — Rhea Wong [00:25]
- “It is much better for us to be the thermostat and not the thermometer.” — Rhea Wong [01:15]
- “Drop a one page dashboard each quarter that shows the dollars in, dollars out and the lives change.” — Rhea Wong [05:00]
- “Economic headwinds filter generosity. They don't kill it.” — Rhea Wong [16:30]
Final Thoughts
Rhea Wong delivers a timely and strategic guide for nonprofit leaders facing economic uncertainty. Her actionable steps and emphasis on both retention and diversification provide a balanced approach to sustaining and growing nonprofit operations during recessionary periods. Listeners are encouraged to implement these strategies promptly to ensure resilience and long-term success.
Resources Mentioned:
- Recession Ready Playbook (Available in show notes)
- Strategy Calls: riawong.com