Dr. Shariq Siddiqui is an Assistant Professor of Philanthropic Studies and Director of the Muslim Philanthropy Initiative at the Indiana University Lilly Family School of Philanthropy. Shariq has a Ph.D. and M.A. in Philanthropic Studies from the Lilly Family School of Philanthropy. He also has a JD from the McKinney School of Law at Indiana University and holds a B.A. in History from the University of Indianapolis.

Shariq authors research on Muslim philanthropy and the Muslim nonprofit sector. Most recently, he conducted a national survey of full-time Islamic schools in the United States. This project resulted in the book (that he co-authored) Islamic Education in the United States and the Evolution of Muslim Nonprofit Institutions, published in November 2017. Shariq also serves as the co-editor of the Journal of Muslim Philanthropy and Civil Society, Journal on Education in Muslim Societies and as the Series Editor of the Muslim Philanthropy and Civil Society Book Series. All three of which are published by Indiana University Press. He has served as a nonprofit practitioner for over 20 years for international, national, regional, and local nonprofit organizations.

Shariq serves on the board of the following organizations:

Center on Muslim Philanthropy

Institute for Social Policy and Understanding

YMCA of Greater Indianapolis

Worried about the Covid 19's impact on your fundraising?  See Shariq's guidance on how to navigate this pandemic here.

I know that this is a time of great stress for people across the world. Jumaah prayers and daily congregational prayers have been cancelled. Important meetings have been postponed, cancelled or moved online. We look at the world that was already suffering due to war, poverty, inequality, prejudice. Now we must find a way to confront a new challenge that risks infecting and killing many. Nonprofit leaders, as stewards of their organizational mission, have to find ways to navigate this global challenge, protect themselves, their staff and families and find ways to deliver on the solutions that their organizations were established to solve. Coronavirus has not wiped away poverty, inequality, suffering, islamophobia, racism, domestic violence, hunger to name just a few of the challenges our nonprofit organizations were created to fight. 

For Muslim American nonprofit organizations that are highly dependent upon special events or “the fund raising dinner”, this could be particularly challenging. The fact that special events are considered one of the least effective ways of raising funds has long been something we have shared in our fund raising trainings. But for Muslim American nonprofits these represent the very core of our efforts to raise funds. 

I believe that this is an opportunity for Muslim American nonprofit organizations and donors to change the way we raise (and give) money and transition to more effective means. This is a time for Muslim American donors to find ways to proactively reach out to the nonprofit organizations that they believe in and find ways to offer support. Muslim American nonprofits must remind their donors why they supported them in the first place. Your mission is still relevant, the fierce urgency of now still remains, coronavirus doesn’t make your mission irrelevant – it makes it more difficult. These are things that we must remind our supporters and stakeholders. It doesn’t take an event to do this – meaningful conversations can safely happen even during a time of social distancing using telephones, virtual meetings, emails, digital and social media.

My colleagues at the Lilly Family School of Philanthropy have pondered the challenges that nonprofit organizations face during this global crisis. In particular, we seek to respond to the rising concern about what this will do for our fundraising activities. I draw upon a blog that was written by my colleagues at the Lilly Family School of Philanthropy to share some perspective on the challenges and opportunities ahead. Much of what follows is their work that I incorporate in to this guiding document.

Muslim American nonprofits organizations are affected by trends that are general to all American nonprofits and also impacted by unique challenges of being Muslim Americans. As Sabith Khan and I share in our book, Islamic Education in the United States and the Evolution of Muslim Nonprofit Organizations, the economy and stock market decline affects all nonprofits regardless of faith. 

Muslim American nonprofits face unique demographic challenges because they are highly diverse, dispersed and very small in number. They also face unique challenges because of the fundraising strategy that they employ in achieving fundraising goals. Namely, a heavy reliance upon fund raising dinners or congregational prayers fund raising. Both of which are deeply impacted by the coronavirus pandemic.

Some important background information is critical for our understanding how to help our fundraising programs to navigate this crisis.

The Economy 

It is established knowledge that the stock market affects giving now, and has impacted it in in the past. So, is it important to follow day-to-day trends in the stock market, or to study in long-term?

Dr. Patrick Rooney, executive associate dean for academic programs and professor of economics and philanthropic studies at the Lilly Family School of Philanthropy, explained that both do. “It’s easier to follow day-to-day news about the economy. It’s also beneficial to understand current economic trends when you’re discussing giving with your donors, as the stock market can affect their lives. However, our research has found, that the day-to-day variation in the stock market really doesn’t predict changes in household giving. It’s more year-end to year-end. Longer-term trends matter. If donors, especially high-net worth donors, do gain money through the stock market in one year and then lose it next, they may be less comfortable making big philanthropic investments. However, even if they decrease their giving from their stock assets, they may give more aggressively out of their income.”

In other words, donors can give out of multiple different channels. While the economy, GDP, the stock market, and tax policy play an important role in giving, they aren’t the only reasons why people give. 

Dr. Rooney pointed out, though, that people don’t give solely because of financial reasons. “If you only care about yourself, you’re always better off not giving than taking the after-tax deduction. So even with a tax deduction, giving to charity is still an altruistic act.” 

For example, many Muslim American’s have funds sitting in donor advised funds. While their stock portfolio may have declined or their current income may be reduced, the funds they have saved in donor advised fund accounts can only be used for charitable purposes. This is a great time to remind them of these potential available charitable funds at their disposable. It is at times like this that these donor advised funds can help mitigate any possible economic and stock market downturn.

Advice for fundraisers

Don’t stop fundraising.

“People don’t give unless they are asked, for the most part. So continue to ask for those donations,” Dr. Rooney explained. This is a time to reach out to donors through phone, emails and virtual calls to connect directly. 

In addition, the Philanthropy Panel Study data from 2000-2016 demonstrated that while the percentage of households who gave declined during the Great Recession, households who continued to give, gave consistently during difficult economic conditions. 

“Even though the Great Recession was the biggest economic downturn since the Great Depression, many people didn’t stop giving. The dollar amount they gave may have changed, if income decreased, but most people gave a consistent percent of their income, even during hard times. Giving can become a habit. Even if the economy is hit hard, some people will not change their giving behaviors dramatically,” explained Dr. Chelsea Clark, research associate at the Lilly Family School of Philanthropy. 

Maintain communications with your donors. 

“Thus, during times of economic slowdown or insecurity, nonprofits need to increase communications with their donors, who might be open to the possibility of special (additional) donations during this particular economic season,” said Bill Stanczykiewicz, assistant dean for external relations and director of The Fund Raising School. 

Giving may decline at the moment, but continue to make your case. 

Nonprofits may be concerned that donations from households may shift toward combatting COVID-19. However, the report U.S. Household Disaster Giving in 2017 and 2018 states that the majority (78 percent) of disaster aid donor households reported that their disaster giving did not affect their giving to other causes. Twelve percent reported an increase in their giving to other causes.

Advice for foundations

Consider adjusting your giving to donate more during times of emergency. 

Dr. Rooney and coauthors Dr. Richard Sansing and Jonathan Bergdoll conducted research that tested simulations under several scenarios to determine the effects of higher payout requirements generally and/or a 2 percent supplemental payout during periods of economic downturns. Higher payout rates would help offset the macroeconomic and microeconomic losses during recessions. 

They discovered that foundations could easily sustain themselves with a supplemental 2 percent payout during recessions and that a permanent increase in rates would most likely lead to a decline in the value of the corpus over simulations of 50 and 100 years, but the likelihood of closure (asset values falling below $5000) is essentially zero for payout rates of 15 per cent or less over the next 50 years and 9 percent or less over the next 100 years.

In other words, foundations could consider giving more to nonprofits (many of whom provide crucial services to at-risk populations) during uncertain times, without worrying that they will completely drain their endowment. 

Finally, Stanczykiewicz noted that during times of uncertainty, philanthropic associations can provide a point of connection, a place to be known, a place to gather (within a certain distance), a place to share information, and a place to commiserate. 

“The other two sectors can't provide these opportunities for association - what Robert Payton referred to as ‘the gift of human presence.’ Nonprofits provide places to build social capital and to work together toward a better world. ”

Final piece of advice, it is during these times that we must remember the fundamentals:

1. Do you have a written fundraising plan? Social distancing may provide the opportune to develop a strong document. ElHibri Foundation has developed a useful fundraising plan tool. There are a number of other potential draft plans available online. Use this time to get your fundraising plan in writing.

2. Does your organization have a budget and fundraising goal? 

3. Does your organization have a written case for support that can be adapted for different forms of communication?

4. Have you developed a gift range chart that lets you know how many donors you need at different donation levels? A rule of thumb is that 10% of your donors should make up 60% of your funds. Who are these people, what is your strategy to engage with them during this period of time.

5. If you planned a fundraising event have you considered innovative virtual events. See this blog as one example.

6. Do you have a communication plan that takes into consideration the various channels that your donors would like to engage with you. At this point, our email inboxes may be too cluttered and our social media feeds are being used more than unusual. This may be a useful time to send personalized notes through “snail mail” to your top donors. While slow and expensive – USPS delivers your mail to your donors six days a week.

7. Do you have a targeted stewardship plan for donors at each giving level? This is a good time to pick up the phone, make sure they are ok and thank them for their support.

8. Perhaps most importantly,  as we continue our thinking on how to respond in this time of crisis, perhaps we can add thoughts on how to continue to serve our beneficiaries/clients in these times as well.  While not directly fundraising, it does continue to demonstrate the organization’s relevance and its adaptability

I know that this is a stressful time. But this is not the first crisis we have faced and likely not the last. Lets go back to fundamentals and find ways to ask our donors for money in the safest and most effective means at our disposal. It is fortunate, that one on one meetings are considered the most effective ways to raise funds. Technology allows us to do that effectively despite social distancing.