Pandemic End of Year Support in 2020

The end of the year is a critical time for most non-profits. In fact, nearly one third (31%) of annual giving occurs in December. The COVID-19 pandemic has made 2020 a year full of unprecedented obstacles for nonprofits around the world. Whether it is volunteerism, donor support or foundation funding, this year has been a new experience for everyone. The help and funding received from volunteers and donors is crucial, as are those last minute grants needed to balance your organization’s final budget. This article discusses a few ways funding and support have been impacted by COVID-19 and how to ensure your organization is taking the necessary steps to succeed in this challenging time.

Volunteerism

According to a study conducted by Fidelity Charitable, 57% of people surveyed about philanthropy in response to the COVID-19 epidemic, reported that their time volunteering this year would likely drop, or stop entirely. Older generations in particular reported their volunteering would decrease due to the pandemic. More than half of the Silent Generation and Baby Boomers, 61% and 57% respectively, anticipated time spent volunteering to drop, while 19% of Gen X, and 31% of Millennials actually report that they anticipated their volunteerism to increase as a result of the pandemic.

Individual Donors

According to the same study, they found that most donors planned to maintain, or even increase, their charitable contributions this year. Specifically, 54% planned to maintain current giving levels, and 25% they would likely increase their charitable donations. Again, it seemed the younger generations were more likely to strive to increase their charitable giving in response to the pandemic. Millennials were the most likely generation to donate to charitable causes at 46%, compared to 25% of Gen X and just 14% of Baby Boomers. Of those who planned to decrease their donations, concern about a potential recession and the economy in general were listed as main reasons for their decisions. 

Foundation Funding 

Grant makers are taking different approaches to supporting charities amid the coronavirus pandemic and the economic freefall, including prioritizing general-operating support, creating rapid-response funds, and streamlining processes for grant applications and reporting. Although 2020 was incredibly challenging, these changes mean more relaxed grant requirements, faster decision making, and additional flexibility for recipients, as well as reducing numerous hurdles that made seeking and managing grants so cumbersome. 

There are approximately 112,000 foundations in the United States alone, and a surprising number of grants are actually made in December. Foundations are required to spend at least five percent of their assets annually and the majority of that is typically paid out in grants. This can be a moving target for a lot of foundations because of the constant oscillations of the stock market and the average value of their investments, frequently making December a mad scramble to achieve their mandated five percent payout. 

What this means for nonprofit organizations is that December is the perfect month to look for additional foundation funding to meet your goals. There are several ways to do this. 

• If you already receive foundation funding, you can ask if they might be able to make a special, end-of-year, one-time gift to your organization. Ideally, this would be for general operating support, but it could also be for something that reflects the foundation’s mission more specifically. Foundations are far more likely to make a last-minute grant to an organization they know and trust.

• Find a new foundation that is interested in your organization’s priorities. This will involve a bit more work, because you will need to research foundations that may have been overlooked in the past or new grants that may be available.The Foundation Directory Online (FDO) allows you to search the 990 tax returns of more than 100,000 independent and community foundations. You can sort them by state and look up profiles of the ones located closest to you. 

• Be sure that the foundations you choose are a good fit for your organization’s mission and programs. A targeted approach will get you better results and allow you to use your time more efficiently. 

• Make your cover letter irresistible. Foundations get many, many more requests than they can approve, so being creative and compelling from the start will get you further in the process. 

• Prepare for the paperwork. Be sure you have as much data as possible before applying for the grant. If you are fortunate enough to receive an end-of-year commitment from a foundation, it will be a significant challenge to get all the paperwork done in time. Although it may be difficult, it’s important to remember that it is worth it, and foundations develop great respect for organizations that are willing and able to provide the data necessary to complete grant approval, regardless of the time of year.

• Know that you may not receive the grant, and that it is still a win for your organization. Some foundations may not respond to your inquiry, while others may send a rejection letter. Even if they are unable to give at this time, keep in mind that by reaching out to them, you have increased your potential funders and planted seeds to develop a relationship that could mean future grants. 

2020 has been a difficult year, but it has also opened many people’s eyes to the necessity of nonprofit organizations. As a responsible nonprofit, it is imperative that you strive for the last minute grants throughout the rest of this month.