There’s no denying Canadians are a generous bunch. Even in times of economic turbulence, the populace is known to pry open its heavily-depleted wallets and give. But, with the competition for dollars at an all-time high, those searching for cash may be feeling the pressure.

The 2007 Canada Survey of Giving, Volunteering and Participating (CSGVP) relied on information gathered as far back as 2004. So, while it may not accurately reflect today’s economic realities, its findings are still interesting to note. For example, it stated that, while the average value of donations increased, the average number of donations decreased from 4.3 in 2004 to 3.8 in 2007. What’s more, though the majority of Canadians make donations of some kind, the report said only a minority account for most dollars donated. In fact, the top 25% of donors (who contributed $364 or more annually) were responsible for 82% of the total value of donations.

More recently, in a Globe & Mail opinion piece from November 2009, Marcel Lauzière, president and CEO of Imagine Canada, wrote, “84% of Canadians give to charities in one manner or another. However, there are troubling signs that our charitable donor base is shrinking.” He continues, “Only 24% of Canadian tax filers claimed charitable donations in 2007, compared to 30% in 1990.”

Wanting to check the pulse of our fierce, battle-weary, yet ever-energetic fundraisers, we brought a few together and asked: How are you faring going into 2010?

Fundraisers’ overall mood

“It feels like recovery is happening for some parts in the nonprofit sector while others have been rocked in a more fundamental way and continue to suffer,” says Andrea Seale of Blueprint Fundraising. Major gifts, for example, seem to be slowly returning to the table but large cuts to government grants are keeping many from celebrating just yet. At the same time, she adds, “the economic implosion has made fundraising more important than ever,” with leaders of organizations looking to fundraisers to help figure out their next steps.

For the most part, fundraisers reported feeling a sense of optimism as they enter a new decade. “Advances in technology have made it easier to connect with donors and for donors to connect with organizations doing good work,” says Carolyn Marshall, principal of the Research Store.ca and partner at Bloom Non-Profit Consulting Group. The response to the current devastation in Haiti is a good example, she offers. And, despite the cautionary tales that fill media reports, “Canadians continue to be generous supporters in their day-to-day lives.” The United Way of Calgary‘s recent fundraising success is a good example, Marshall says. According to a recent announcement, it surpassed its $49 million fundraising goal set for 2009 by a whopping $2.5 million. Apparently, the reported 28,000 job losses in Alberta didn’t stop dollars from flowing.

Karen Wilson, CFRE, president of AFP Greater Toronto Chapter and a partner at KCI, a fundraising consultancy, echoes Marshall’s positive overview. She senses an increase in optimism among donors, though summarizes their approach to giving as “cautiously optimistic.” They’re still giving but in lesser amounts, she explains. What’s more, since the 2009 mindset was a nervous one, 2010 budgets were reflective of that. “I think 2011 and 2012 will see much larger gifts,” she says, attesting to an anticipated turnaround.

But Seale asks an important question, addressing the proverbial elephant in the fundraising room. “Statistics Canada says the proportion of people giving to charity is shrinking, why is that?” What can be done to better understand that reality, she queries further, to encourage those who never give to be more generous?

That may be true but one thing’s for sure, donors – individuals, foundations and corporations – have become more sophisticated. “They’re asking many more questions than they used to, they want to see accountability,” says Sarah Howard of Compton Fundraising. There’s a greater demand for reporting, for delivery of sponsorship benefits, and just everyday measurables to demonstrate verifiable impact.

Challenges facing charities

Part of the reason for that, offers Howard, is the high level of competition. With an increasing number of charities knocking on doors, the giving may very well continue but the number of organizations receiving donations will naturally diminish. In the past, for example, a donor with $100,000 may have donated to 100 organizations but today, they’ll give larger gifts to only 10. The level of competition (and the recession) has simply altered the playing field. But, whereas they may have been more lax with how organizations used their donations, with bigger sums in play now, “They’re going to be asking a lot more questions to make sure their dollars are properly stewarded,” says Howard.

An increase in the number of charities has other implications. As organizations multiply, so does the risk of duplication. With many charities pursuing similar missions it would behoove some to work together, says Howard. Collaboration would not only make sense in light of limited resources, it would also take an enormous pressure off of prospective donors bombarded at every turn. “I would like to see a further trend towards collaboration,” echoes Marshall. “Smaller organizations should work together to pool resources in order to share benefits.”

Other fundraisers mentioned the ongoing challenge of limited fundraising resources for small- to medium-sized charities. “Fundraisers in smaller shops are often tasked with filling the roles of fundraiser, communications professional, database administrator, researcher, and special events manager – and that’s just before lunch,” says Marshall, tongue-in-cheek. Moreover, charities often hire people to fill fundraising positions with little or no experience in the field, she adds. “That’s not to say these hires won’t grow into excellent fundraising professionals but learning by trial and error can be frustrating when expectations are high.”

Of course, what would a discussion on fundraising obstacles be without mention of government cutbacks? Its impact on arts groups, smaller organizations, and those delivering social services can be especially damaging, says Howard.

Ongoing fundraising frustrations

What may also be damaging is the greater responsibility for delivering programs on the part of charities and nonprofits, says Seale. The sector is increasingly being asked to be “the caregivers of our society and culture in so many ways.” With that reality in mind, Seale wishes the federal and provincial governments would establish additional incentives for donors to give.

For Marshall, her job is made more difficult by media reports about disreputable charities or scams. “Whenever a bad new story appears in the press, it negatively affects the entire sector and a magnifying glass is held over all, whether reputable or not,” she says. Her hope is for more positive stories on the charitable sector and its “billion-dollar contribution to the Canadian economy.”

Lessons learned: Managing expectations and communicating

According to Wilson, two of the smartest things a fundraiser can do today are manage expectations and communicate. It may be difficult when times are tough and donations on the downswing but do it anyway, she says. Keep one’s board abreast of the situation so they know what to expect – even if the news isn’t great. Seale agrees. “It’s hard to be the bearer of bad news and feel the weight of responsibility for cuts and layoffs, protecting people’s jobs and programs.” But encouraging boards and CEOs to be cautious with expectations is important.

As for the donors themselves, don’t assume the time isn’t ripe for conversations during a downturn. Cultivating and building relationships is more important than ever. And patience is a significant virtue. “We have to listen more intently to our donors,” says Seale. “I’d like to see the bar raised in terms of donor stewardship and communications,” agrees Howard. “Some do it brilliantly; it’s really impressive but others only do it when they have to ask for money.” Besides, adds Wilson, if you focus on stewardship today, “There will be returns in the future.”

It’s also important to remain optimistic, she adds. Keep in mind the great work organizations do and why you’re doing the work you do. Stay focused on planning and, in time, things will turn around. That message seems to be sticking as record attendance levels at a recent AFP Congress can attest. “It was a year where people really did go back and look at why they’re raising money; they went back to the basics and produced solid fundraising plans. That’s good learning,” she says.

2010 and beyond: What lies ahead for charities

So what do these professionals hope the future will bring? Many think organizations are still going to feel the effects of the recession for some time, with the real turnaround coming in 2011 and 2012.

Once the numbers return to regular levels, Howard hopes to see corporate Canada step up to the philanthropic bat more often than it does today. Others look to technology and its impact on the fundraising landscape. As mentioned, the response to the Haiti earthquake is a good example of the innovative ways fundraising is taking shape. “I am excited about how technology is helping us build very real communities online where people want to participate with nonprofits in lots of ways,” says Seale. “It’s not just the charity talking to the donor, it’s supporters talking to each other, taking action, giving, helping set direction.”

Overall the forward-looking mood seems good. “We’re seeing the growth of giving circles, e-philanthropy, youth philanthropy, social entrepreneurship – it’s an exciting profession to be in right now,” exclaims Marshall. Wilson agrees, adding it’s important to keep the broader picture firmly in mind. “Organizations we work for do amazing work for our society,” she explains. “And that’s why we’re doing this.”

Elisa Birnbaum is a freelance journalist, producer and communications consultant living in Toronto. She is also president of Elle Communications and can be reached at: info@ellecommunications.ca.

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