Recession-hit not-for-profit organisations optimistic

Recession-hitRecession hit organisations working for causes that suffered a decline in incomes last year, but are bullish over better prospects next year. Even though Asian entities were the worst hit with an average decline of 13 per cent, a majority of them were optimistic of better showing in the coming 12 months.

Half of the world’s not-for-profit organisations saw a decline in their incomes, with the Asian ones being the worst affected. They suffered an average drop of 13 per cent in funds raised during last year as compared to just one per cent decrease by European entities.

But still, Europeans were the most pessimistic when it came to outlook for the next year. Only 30 per cent of the European felt optimistic about the coming 12 months as compared to 70 per cent of Asians and Australasians surveyed globally by the Management Centre, Asia (MC) during May-August 2009.

Usha Menon, Director, Management Centre Asia, says: “The report broadly reflects what we’re hearing from fundraisers worldwide as part of our consulting work. In Asia, a strong dependence on Special Event fundraising and non-regular donations have contributed to a higher drop in funds raised.”

In its Global Fundraising Confidence Survery 2009, released recently, it said the fundraisers’ confidence was growing with 56% reporting that they feel more optimistic about donations in the coming 12 months.

The Management Centre explored the views of 126 leading fundraising directors and sector experts from Europe, Asia, North America, Australasia and Africa about the impact of the financial crisis on the not-for-profit sector.

This survey, in its second year, also found organisations bucking the downward trend and posting increased earnings.

One third (33%) of the fundraisers have successfully bucked the trend and generated additional income despite the recession, the report 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, and as a result becoming more effective and actually raising more income. In many cases, not-for-profit organisations report that donors are responding to increased need by increasing donations,” Ms Menon added.