What does $4/gallon gas mean for nonprofits?

If it hasn’t hit your state already, it will soon.  What are the repercussions of rising gas prices if you’re a nonprofit?

Everyone in the U.S. doesn’t suddenly get poorer - but they might feel it.  For “middle America,” and even upper-middle class America (the bulk of donors these days),  the pinch at the gas pump can have the halo effect of making them think even harder about their spending.  The logic goes something like this:  

“It costs $50/$60/$70 to fill up my tank now – more than just a few weeks/months ago – and if I do that once/week from now on, what does that mean for my budget?  My salary hasn't gone up that much – how much do I have to cut my spending from now on to keep up?” 

This kind of mental process can hurt nonprofits as American review their “discretionary” spending, in an effort to “cut back” and “tighten the belt” again.  Just when the economy was showing signs of progress this can have hurtful effects.

What to do?

·        Tell your story - how donations have made a difference to your organization.  Show that you’ve made a difference in utilizing – wisely – every dollar you’ve received.

·        Show how the smallest donations help - $1/day feeds X, $25 saves Y.  Small denominations do help!

·        Make sure you communicate with your members/donors when you’re NOT just asking for money, so they feel an ongoing part of your organization (and your success) – not just pocketbooks

Don’t let the rising price of gas get you down.  Use leadership and creativity to rise above it with your mission and your accomplishments.