To sum up Ben’s main points, he believes non-profits have to focus on leveraging individual giving (private philanthropy) – following pretty much the model Obama used to fundraise for his campaign. Firstly, because CSR budgets will be the first to see cut downs. Secondly, because foundations will be much more cautionate in grant-giving and will demand more accountability and measurable impact. Last but not least, because individual giving is the main source of revenue for social causes, despite the fact government grants, corporate sponsorship and foundation grants are more visible (it seems in the US they account for more than 80% of all money raised by non-profits). I agree with most of this points, but I believe business looks slightly different in Europe.

The European Union is – and should remain – one of the main grant-givers for European non-profits acting both in Europe and in developing countries. In times of crisis, government spending goes up and corporate spending goes down. While I definitely support the EU drive towards non-profits (either through structural funds or other funding schemes), this money should definitely be spent in a more transparent way. However, NGOs should start lobbying governments and European institutions to support their business in a more efficient and unified manner.

CSR budgets will be cut down in Europe, too. Unfortunately, the sectors that will still receive corporate money will still be the “trendy” ones (environment is actually the only one I can think of), while major ones like health, education and the arts will experience severe cuttings. Honestly, I cannot think of ways NGOs could mitigate this.

European non-profits have to learn – although they should’ve done so years ago – the intricate ways of social entrepreneurship. Less than 10 % of Romanian NGOs have self-sustainability schemes in place – such as making money through co-payment or fee-for-service programmes tailored for third parties. Social entrepreneurs are a rarity in Europe in general, but now it may be the time for them to bloom, out of plain need unfortunately.

As I was talking recently with some friends from PEEP, and as the recent blog campaign about IHTIS (Romanian bloggers helping an association of young people with physical disabilities that want to live independently in fundraising through independent donations) demonstrates, Romanian and European NGOs should learn how to use individual giving better. My friends from PEEP were amazed to receive small individual donations for their educational projects – which are not at all those type of “make the giver cry by showing him individual tragedies and get his money” type of projects. Currently, fundraising by other mechanisms than grant-writing for international donors is almost never used by the most prestigious Romanian non-profits. When I worked for the Coalition for the International Criminal Court in New York, I witnessed dozens of tactics for fundraising that are never used in Romania.

All in all, it’s time for European non-profits to start using their creative strategic thinking. Or to hire/ convince experienced consultants to help them out.