BGU Looks At Israel’s Nonprofit Sector

Remember the good old days of fundraising?
That’s right, I’m talking about 2007.
The following report summary on Israeli non-profit fundraising in 2008 was put together by our neighbors down the road at Ben Gurion University and featured in today’s Business In Briefsection at Haaretzonline.
The year 2008 was a grim one for Israel’s nonprofit organizations, which raised 31% less in donations than in the previous year. A survey of 225 charities conducted by Ben-GurionUniversity of the Negev for the Israel Gives organization found that 4% of the NGOs that had participated in the previous year’s survey had disappeared and about a quarter are cutting back on personnel. Half, however, reported raising more money this year as the global economic crisis receded, while 17% reported an increase in demand for their services. (Lior Dattel)

Is there light at the end of the tunnel?

Yes.
We’ve seen a significant upturn is mailing and emailing acquisition during the second half of 2009. And we expect that to continue.
Many Jewish organizations had panic attacks when the economic storm hit in late 2008. They responded by cutting back on services, staff and fundraising all at once to save resources. Now many are seeing that not being in the mail, not being in touch with their donors and doing acquisition for new donors is not a good long-term fundraising strategy.
It may save money in the short run, but down the road when you have 20,000 less donors on your file, you are going to feel it.
Donors also had their own panic attack and many cut back on donations or stopped giving altogether.
Now, with the economy starting to show signs of a turn-around, people are starting to give again and non-profits are starting to mail again.
We’re looking for an even bigger return to direct mail in 2010 and also increased usage of email blasts.
David

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