A soft economy is bad news for almost everyone, but nonprofits are hit especially hard when things get tough. That's because they don't just have the normal declines in available income to contend with, but also the added pressures of lowered portfolio values, which can lead foundations and wealthy donors to substantially reduce the size of their annual gifts—or even eliminate them altogether.

Even the traditional economic appeal of giving, a lower tax burden, is rendered somewhat moot when there aren't as many high wage earners and soaring investment accounts to draw from.

Add to that fact that charitable giving tends to be a very flexible expense in most households, and it's easy to see why so many nonprofits have been feeling the crunch recently. Faced with the uncomfortable prospect of cutting back on their programs or reducing the size of their staff, many have had to find creative ways to stay afloat and keep their operating budgets in the black.

Does this mean you should abandon your fundraising efforts, or resign yourself to scaling back your plans for the coming year? Absolutely not. Smart nonprofits can still get ahead in this economy, they just have to change their approach. Here is a trio of great ideas you can use to keep your organization on track financially, even while the economy is struggling:

Look for a larger pool of smaller donors. 

Although there certainly are American families who are struggling to get by, most of the middle class is experiencing this recession as they have others: as a decline in bonuses and portfolio values, but without an enormous decrease in expendable income. In other words, they can still afford to give the odd small gift… assuming that your nonprofit organization can reach them and make a compelling case.

Start by building a bigger list of smaller potential donors. Social media and event marketing are two great low-cost, high return methods of gathering names and e-mail addresses that can be used for fund-raising efforts later. Once you have them, make it clear in your messages that a small gift—even one of just a few dollars—can make a difference in your cause. Those donations add up, and can make all the difference in a tough economy.

The key to this approach lies in having a great list, and finding a way to reach donors cost-effectively. For that reason, having the ability to accept donations via e-mail or your website is almost a necessity.

Making their events more fun and interesting. 

It isn't just that people have time and a little money for events they enjoy in a tough economy; it's that they'll find the income and available evenings for these kinds of diversions especially when times are tough. Who doesn't relish the chance to forget about the bad news that is being flashed across television screens and enjoy the company of friends while supporting a good cause?

Fundraising events can still be a big boost for your bottom line during a recession, with the key difference being that they need to be functions that people want to attend, rather than simply feeling obligated to show up and make a gift. Faced with the prospect of an uninteresting evening and writing a check, many donors will choose to stay home. But give them the chance to have the time of their lives and feel a bit better about the world around them, and you'll be able to fill your fundraising event to its capacity.

Taking advantage of more cost-effective tools. 

Of course, the best donations are the ones you don't have to solicit at all, or short of that, have to spend very small amounts of money to attract.

As most experienced nonprofit executives will know, the secret to bringing in large gifts, unsolicited, is a strong and ongoing public relations campaign. If there are enough stories about your organization floating around, someone is bound to take notice and want to help further your cause in any way they can.

If you're having trouble attracting attention from the press, then online fundraising is the next best step. Your nonprofit could grow to love it for the same reason that so many businesses do: There's simply no better way to bring together an interested group of individuals without spending a fortune. A targeted online fundraising campaign can outpace nearly any other, especially once the relatively low costs of getting started are factored in.

The economy might be tough, but that doesn't mean you have to throw in the towel on your fundraising efforts. Simply follow these strategies, put the right tools at your advantage, and you might even be able to grow your budget while other charitable groups are trying to just keep up.

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