Colleges almost certainly will face funding challenges in Fall 2020 and moving forward. How might this affect advancement, and how should a president prioritize fundraising?
The most important change is to focus on current dollar and immediate use. Donors will recognize the immediate difficulties, and strong supporters are likely to want to help. If you have been working with a donor on a $100,000 endowment gift, encourage them to make a $5000 gift today, or even better to make a $10,000 gift today, and to move the endowment plan into their estate. If the donor is committed to an endowment, suggest they at least “jumpstart” it with a current gift equal to the expected yield of about $5000, as almost all endowments payout in arrears, and you need their support now.
With the decline in the stock market, some endowments, particularly recent ones, may be “underwater” in that the current value is less than the original donated funds (actually, less than the permanently restricted fund). Though foundations have more flexibility today due to changes in UPMIFA, if the underwater endowments are recent, you may be able to contact the donor for permission to alter the agreement or at least to get their approval if you hope to expend from an underwater account (without violating any restrictions, laws, or covenants!)
During the 2008-2009 recession, many foundations changed spending policies to decrease payout, which put additional financial stress on students and institutions. Of course, a president must work with the Foundation Board or equivalent to ensure prudent use of funds, but it is worth emphasizing to the Board that good spending and investment policies are intended to assure generational equity; it is time to rely on those policies, take a long-term outlook, and keep supporting the institution. Historically, the stock market DOES bounce back.
Of course, many donors are likely to feel alot of uncertainty in the coming months. My experience is that one must stay positive, stay engaged, and that strong supporters will always return to their love of their institution.