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| If you are an
Economic Development Organization or Chamber of
Commerce with jurisdictional responsibility for
economic development and are currently funded on a
multi-year cycle that expires anytime during the
next 36 months, take five minutes to read the
following: |
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How long can
we delay our next campaign to ensure that
the economy is better when we start asking
for financial support?
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Corporate support for civic endeavors has
been declining for fifteen years! This
trend is real. In 2007, corporate America
contributed over $1 billion LESS to civic
organizations, including EDO's and Chambers,
than it did in 1991. The current economic
situation is going to accelerate this trend
but it didn't happen overnight. But take
note, corporate America hasn't stopped
contributing; they have just stopped
contributing to under- performing and
non-performing civic endeavors!
The current unemployment rate nationally is
7.6% and may be higher in some of your
communities. The latest predictions from
the Federal Reserve state that unemployment
will rise to over 8.5% later this year, and
will peak at over 9% in the first quarter of
2010. Furthermore, the Fed is forecasting
an overall economic contraction of
approximately 1% or more yet this year.
While many economists seem to believe that
the economy will "pick up speed" in 2011,
some Fed officials have said, "it could take
five or six years for the economy and
employment to get back into a sustainable
mode of health."
So our question to you is,
just exactly when do you think things are
going to be better?
Furthermore,
what are the risks of delaying your
next capital campaign?
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Over the past year, we have completed a
number of successful funding campaigns but
they have all required additional effort and
time as broadening the funding base has
become a crucial component of long-term
viability. Our prediction is the "top of
the funding pyramid" will experience a net
decline, requiring programs to attain a
broader funding base that maximizes middle
market potential. This takes more time.
The longer
you wait, the less time you have to change
your funding model to build the right
foundation for the future. |
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Crisis management is typically not optimal
when it comes to funding your programs.
Some
of the worst decisions are made when "backs
are against the wall".
The longer you wait, the closer you get to
"the wall". |
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All campaigns need a little "margin for
error". Your largest investor can't do what
they have done in the past; your government
support is declining; your board chair
resigns. All kinds of unanticipated things
can occur in the midst of an effort to
re-capitalize your program. The best laid
plans include contingencies for dealing with
these unintended consequences but
with less
time to complete the process, and a smaller
"margin for error", the risk of mistakes
that could lead to long term damage to your
program escalates. |
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All of your investors would like to go
"year-to-year", instead of making a
multi-year commitment. Imagine what
this would do to your program and your
life. No longer can you count on a fully
funded budget as long as you are meeting
expectations and communicating with your
investors. Instead, you will need to
dedicate 50% or more of your time to
generating revenue to sustain your budget.
Is that what your investors are paying you
to do? No!! They want you out growing
jobs and generating economic investment in
your communities. |
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All it takes is one
extension----one year of "can you extend
your current commitment for one more year
and we will conduct the campaign next year
when the economy is better" to break the
cycle of multi-year support.
I can hear your investors now ---- "if we
did it last year, why can't we just do it
again this year"? And before you know it
your back on the treadmill, spending the
majority of your time chasing dollars and
not having enough time to devote to economic
development and long-term strategic
planning. |
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There
will never be a better time to "make the case" for
your program. Don't miss this opportunity. Will
it be the hardest campaign you have ever completed?
Probably. But funding your program has never been
more important. Do you really want to send the
message to your investors, constituents and
community that what you do is not so important that
we can't put it off until next year?
Economic development is all about leadership---Now
more than ever, we need to Lead the effort to
generate jobs and capital investment; Lead for
positive change in your community or region; Lead
when others only want to follow. Leadership has
never been more important than now. Don't be
afraid to Lead! |
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