Even before the October economic downturn, some nonprofits surveyed by Marts & Lundy reported that dramatically increased energy and construction costs were forcing them to delay building projects.

But most of those nonprofits that were either currently in the middle of a campaign or planning one had not yet found it necessary to make adjustments to their campaign goals.

The findings are the result of an online survey of Marts & Lundy clients conducted from mid-May through mid-June 2008. In all, 57 clients participated, 78% of which are educational institutions. Nine percent identified themselves as involved in "arts and culture," 4% in "human service," and 4% in "public benefit."

As of early summer 2008, the recession that many economists now believe began in December 2007 was already being felt by nonprofits. Advancement staffs found it necessary to operate with fewer resources, and board members were expressing reluctance to execute major gift solicitations. Advancement officers also reported focusing on reducing costs and justifying positions.

Over four decades, from 1969 to 2006, the educational sector has experienced “persistent growth despite seven periods of stock market decline.”

Some clients nevertheless reported strong fundraising performance for annual giving, and only three clients said they very frequently received unfavorable responses that could be associated with worrisome economic conditions.

Most respondents (73%) said they had experienced some negative reactions from their constituents. But 26% described such reactions as rare or very rare, and 14% had experienced no negative responses at all.

Those most likely to express negative reactions were regional/national corporations (21%), trailed by local businesses/underwriters (16%), parents/grandparents (14%), and alumni/members (14%).

Donors "who have significant capacity are less concerned with the economy when making philanthropic decisions than those with less capacity," Marts & Lundy found.

None of the nonprofits reported negatives responses, for example, from prospects with the capacity to make a gift of $100 million or more over the next five years.

"Negative reactions became more apparent at the capacity level of $1 million to $9.99 million and grew steadily as capacity lessened, with the most frequent negative reactions from those with the capacity to make a gift of less than $25,000 over five years," Marts & Lundy found. "Furthermore, those donors expressing a negative reaction about giving have adjusted how they are making their gifts," making smaller gifts, extending the payment period on pledges or making no gift at this time.

With regard to overall campaign goals, 5% of those engaged in a campaign or planning one reported increased campaign goals, while another 5% have decreased their goals. Eleven percent reported alternatives, such as having already exceeded a goal, entering a new phase with a flexible goal, or simply waiting to see how the economic climate will affect the campaign.

This wait-and-see attitude will probably persist as the recession continues, but research into patterns of giving during economic slowdowns conducted for Marts & Lundy by Nelson C. Lees reveals an encouraging sign: Over four decades, from 1969 to 2006, the educational sector has experienced "persistent growth despite seven periods of stock market decline."

Moreover, a study by Lees of 16 campaigns during the economic downturn of 2001Ð2003 discovered that each campaign gained momentum during that period regardless of the goal of that campaign. Lees' findings suggest that educational institutions are not drastically affected by economic downturns.