Surviving the Storm: How Resilia Helps Nonprofits Weather Economic Recessions

By: Kate Sheahan McElroy, Research & Learning Manager, Resilia

From economic booms to busts and everything in between, nonprofits have always grappled with uncertain economic conditions. Today’s nonprofit leaders might recall the effects of the Great Recession of 2009, and the immediate impact of the 2020 COVID-19 pandemic on their operations. Economic downturns affect various industries in unique ways, but can be incredibly challenging for the nonprofit sector and the people who depend on their essential services. Recent inflation and decreases in giving indicate an uncertain economic climate, and nonprofits need to anticipate any challenges ahead. In this series, we will highlight strategies that nonprofits–and later, the funders that support them–can use to weather economic uncertainty and thrive.

So what exactly can nonprofits do to best prepare for a recession?

Almost every facet of a nonprofit’s operations is affected by the economy. Fundraising typically decreases during a challenging economic climate, especially from individual donations. Individual giving decreased in 2022, which is often seen as a symptom of economic uncertainty, according to the Giving USA 2023 report. Donations through special events diminish significantly, as events like galas may be seen as less essential during more significant hardship. At the same time, difficult times often increase the demand for nonprofits' essential services: more people may turn to rental assistance, unemployment counseling, or community pantries. This increase leads to strained staff capacity, especially if staff were cut to save costs: the same number of people—or less—providing services to a sudden influx of people can quickly lead to staff burnout. 

However, lessons from past recessions and economic difficulties can help today’s nonprofits prepare. For example, tactics used during the dot com bubble burst of the early 2000s were applied to the Great Recession, which was then applied to the COVID-19 pandemic and can be applied successfully again, according to The Chronicle of Philanthropy.

Here are four proven lessons that nonprofits can use to prepare for the future: 

• Storytelling helps nonprofits put a spotlight on their mission and vision through real-life examples that help supporters connect with the organization. Readers like to see full stories with a beginning, middle, and end. Stories that show how an organization addresses a specific problem with a clear result are beneficial. With Resilia’s Storybuilder Tool, organizations motivate supporters and share their impact through posts, videos, and call-to-action links to their donation pages. Stories can then be shared in emails, newsletters, and social media. 

• Build sustainable growth. Sustainable growth can be daunting for many nonprofits, but it helps build a solid and active foundation. Diversifying funding streams is another way to create sustainable growth: this means an organization isn't dependent on one major donor or a single large grant to support its operations. Building a monthly donations program is a significant first step toward diversifying a nonprofit’s revenue. Resilia Donations makes it easy for your supporters to sign up for a monthly contribution: Reach St. Pete, a Florida nonprofit serving those experiencing homelessness and other at-risk situations, set up Resilia Donations in only one day. Within two months of adopting Resilia Donations, they raised over $4,000 in donations, including four recurring contributions. Small steps make a big difference toward sustainable growth. 

• Stay connected with your supporters. During difficult times, especially a recession, a nonprofit’s financial supporters often receive frequent and numerous requests for donations. Nonprofits should strengthen their donor relationships, ensuring that their supporters know the impact and significant difference of their support. Donor recognition, thank you notes, and strong storytelling, keep an organization’s supporters confident in a nonprofit’s operations and excited about its mission. Busy nonprofit leaders can use Resilia Academy’s easy templates for donor materials, like thank-you letters and sponsorship requests, to make staying in touch with supporters simple and straightforward. 

• Learn from your nonprofit community. During difficult times, especially recessions, nonprofit leaders draw inspiration from the creativity and resilience of their peers. Resilia Community is an authentic, user-driven space for nonprofit leaders to get inspired, learn, and grow in a positive and safe environment. Office hours, peer-to-peer sessions, and group coaching workshops allow nonprofit leaders to share problems and find practical solutions in real time. Nonprofit leaders can also lean on Resilia’s team of nonprofit experts, who collectively have nearly 200 years of nonprofit expertise. 

Preparing for uncertainty can be daunting, but preparation doesn’t have to happen in a vacuum. Building an organization’s capacity to thrive amidst the chaos is made easier through holistic support and preparation. However, the burden of sustaining a nonprofit’s essential work isn’t on organizations alone: funders play a crucial role in helping an organization maintain operations and increase capacity. The next post in this series will delve into the essential strategies that funders can use to bolster their nonprofit partners during economic crises. Stay tuned for this insightful guidance on navigating uncertainty and fostering lasting impact.