By Jeffrey Byrne, President
Midwest Region

As 2009 draws to a close, I wish all of our friends and colleagues a happy holiday season. No doubt, 2009 has been a rough-and-tumble year for all of us in the nonprofit sector. As I reflect on the year, I will share my thoughts on where we have been and anticipate where we are going in 2010.

As we all remember, the first quarter of 2009 brought continued market plunges, rising unemployment and consumer anxiety about economic conditions. Despite the gloomy outlook, we advised our clients to stay near to their donors, to express their concerns that mirrored the concerns of their donors about providing services with fewer resources, and to continue articulating how their organization meets unanswered needs in the community. Research from past economic downturns demonstrated that clients who followed these recommendations would be the recipients of these stewardship efforts as soon as the economy turned around.

By late spring, the economy appeared to have hit its low and we started to see a slow increase in inquiries from our clients’ donors. Donors began to show interest in talking about how they could best make an impact with their philanthropic decisions. Campaigns continued to make progress and organizations taking time to plan for greater efficiency survived challenges while continuing to offer programs and services within their communities.

In response to the changing business environment, we recognized that executive and volunteer leaders needed assistance with fundraising planning. We responded by highlighting and educating our nonprofit partners on resource development services designed to position nonprofits for success in a streamlined economy. These services included counsel in planning, training, communications and annual efforts, and were developed to help organizations inculcate a culture of giving through essential fundraising best practices as they prepared for new economic realities.

As we entered the second half of the year, the stock market began to rebound and donors began to step forward by making hearty investments in the organizations they love. While times are still tough, there is light at the end of this tunnel that we have journeyed during the past 15 months.

For 2010, we see nonprofits’ development efforts rebounding as donors reinvest and reconnect with the organizations that serve the people and needs for which they have passion. It looks like the health of the economy is stabilized and improving. According to a recent article in The Wall Street Journal, by November 2009 investors who were in the market have recovered nearly 50 percent of what they lost.

However, because unemployment remains disastrously high, demands for services in the human service and health care subsectors will continue to increase. Our communities will face challenges in feeding those in need, sheltering the homeless and caring for the sick due to lagging unemployment rates. And, we believe that organizations in the arts, environmental and education subsectors can expect financial stabilization as a result of increased giving.

As we transition from the troubles of this past year, and look to renewed energy for the coming year, my clients and colleagues continue to remind me how blessed we really are to have our health and the fortune to help improve lives throughout our communities. I truly hope that you and your family enjoy a happy and healthy holiday season. We look forward to the many opportunities that 2010 presents.