Economic downturns are a fact of life. It’s normal to feel that once we pull out of a downturn the foreseeable future will be rosy and great. That is generally true, but another downturn always awaits. Recessions are a cyclical phenomenon. As an independent school leader, preparing for the inevitable is vital for the long-term health of your school.

Advancement departments play a critical role in ensuring school financial sustainability. During an economic downturn, fundraising is indeed more difficult. But there are some interesting areas that can still move the donor needle.

Storytelling

Economic downturns typically result in larger requests for financial aid. This is predictable, but relying on messaging that is generalized and does not speak to the emotional ask for financial aid will not yield fruitful results. For example:

The Greenwood School Financial Aid program awards aid to families to help them remain part of our community. Last year donors helped 94 students, and this year we expect demand to surge. We encourage you to give what you can to leave a meaningful impact in the life of a Greenwood student.

This is useful information, but donors don’t give to numbers. Consider the following:

Our daughter has been at Greenwood since kindergarten. When the pandemic hit we knew we’d be affected, but had no idea it would be so severe. Our monthly income dropped nearly 40% and we did everything possible to keep our daughter at Greenwood. The financial aid program has helped us tremendously. We are moved beyond words and thank the generous donors who give to Greenwood. Without your support, we could not have remained part of this special family.

- Anonymous Greenwood Mother

Most times financial aid recipient families will choose to remain anonymous. This is understandable. But some are so touched by the donations that they do not mind lending their name to their testimony. With or without a name, testimonials like this speak to the human element of fundraising. These are messages that drive fundraising.

Second, many independent schools have financial aid programs for talented students from low-income, disadvantaged backgrounds. Fundraising for these scholarships is typically more attractive than fundraising to keep a current student in school. Strengthening your Advancement department efforts in increasing the amount of aid for this cohort of students can yield positive outcomes in challenging economic environments.

Ask Everyone

Everyone in your independent school community can be a donor. It doesn’t matter their income level. In fact, most school Advancement departments will tell you that their largest donors are not their highest net-worth families.

People give for various reasons. But the one thing they all seek is a way to put what they have to further a cause greater than themselves. The “ask everyone” motto can be difficult to adhere to. The last thing a school wants to do is overwhelm their parents with constant asks, especially during an economic downturn.

Yet, when the Board is involved, great things can happen. “Ask teams” are popular Advancement department initiatives. These are teams of typically two people - a Board member and an Advancement team member. The Head of School could also be involved. The teams meet with families on a 1:1, weekly basis to make the ask in-person. In a given month, a Board of 15 meeting once per week with individual families can realistically make 60, in-person asks. Spread over a semester that is 300 families.

Accommodate the Donor

School annual funds seek to close the budget gap and/or offset items in the operating budget. A school might need an annual fund to yield $200,000 in cash to do this. But as most school professionals can attest to, you’re constantly offered things you don’t need (or want) from donors.

This is part of “doing business.” Yet, during an economic downturn, receiving a donation “in-kind” or even in cash directed to a non-essential project can turn out to be quite beneficial. Economic downturns do not affect all sectors equally. For many households, the pandemic resulted in more income. While it would be great if these households supported the school’s core needs, having someone get into the habit of giving to the school is a positive thing.

Large, institution-changing donations take time to cultivate. The big donation is never the first one. During economic downturns, it can be easier for a potential major donor that owns a restaurant chain, for example, to donate food for an event. This obviously offsets costs and also initiates a relationship.

Don’t ignore projects or donations that might not add immediate value but could lead to larger gifts once the economy picks up again. Accommodate the donor’s offer (within reason) and cultivate that relationship.

Economic downturns are a part of the human condition. Pretending their effects are once in a lifetime and never to occur for another hundred years is foolish. We know they’re coming and putting strategies in place to maintain fundraising efforts and positive momentum during trying times is sound financial (and donor) management.