Thursday, May 10, 2007

Another "external influence"

There has been a lot of "buzz" in the past couple of years about
declining sales on traditional catalog "shopper" fundraisers. There
has been, within the fundraising industry, quite a bit of "the sky is
falling" rhetoric which question the products and programs put forth
by the industry, and lots of hand-wringing about the future. The
industry has also, at the same time, embraced frozen foods, like
cookie dough, pizza, cheesecakes, and desserts--with excellent results.

Some of this may have merit, but much of it ignores outside
influences that have absolutely nothing to do with products,
programs, prizes, or anything else put forward by the product
fundraising industry.

I wrote several days ago about two external influences--people being
over-mortgaged and excessive credit card debt--which reduce the
available "discretionary spending" money in the family.

Today's "outside influence" is particularly unpleasant. There is a
"shadow economy" based on drug addiction that is bleeding off the
economic resources of many if not most communities in our country.
(Of course the human toll is devastating, but that's another
subject.) Our region has been heavily impacted by the drug trade,
particularly "crystal meth." A program by a court officer for my
Rotary Club yesterday brought this home to me in graphic detail. In
other areas of the country the "drug of choice" may be different, but
the economic result is the same.... less discretionary money in the
local economy. Everyone is impacted. Some people are the victims of
theft--home, car, business break-ins, etc.-- but everyone is impacted
by rising prices caused by shoplifting, gas station drive-offs,
unpaid medical treatment of addicts, and a myriad of other "domino
effect" issues.

Do I have any proof of this? No. Do I see trends that support this
supposition? Yes. In particular, over the past 3 years, groups that
are closest to the interstate highway have had the greatest decline
in fundraising sales, while those far removed are staying steady or
are increasing in sales. This particular interstate highway is a
known "drug corridor." I suspect that some real estate and credit
card issues are also in play, but the correlation between drug
activity and sales levels is striking. It's almost like fundraising
sales are a "leading economic indicator" which can spot increased
drug activity before other indicators pick it up.

So, if you are having trouble raising enough funds to do the things
you want to do for your community, check with your local authorities
and see if you can arrange a program for your organization about the
drug problem in your area. (Yes, I am assuming it's there, because
it probably is, even though you don't want to admit it.) This
activity will be a "drop in the bucket" but if there are enough
"drops" there will be an eventual impact. Putting the "shadow
economy" money back into the "legitimate economy" will benefit your
children and grandchildren. And it will help stem the tide of
destroyed lives that the drug trade leaves in its wake.

If you, in fact, find that there is an economic impact from the
"shadow economy" in your area, and you need to raise more funds
through product sales than you are currently achieving, change to a
frozen food product for your project. People need to buy food, and
will gladly spend some of their grocery budget on quality frozen
foods--if they are offered at a reasonable price. Those with no
"discretionary money" in their pockets--whether from home mortgage
expense, credit card debt, or rising prices caused by the drug trade--
will still buy food.

It has been said many times... "find a need and fill it." People
need to eat.

No comments: