Getting donors' attention is likely to be more of a challenge this year as nonprofit groups step up their solicitations to individuals, foundations, and corporations, often in an attempt to make up for cuts in government funding, the Chronicle of Philanthropy reports.

In 2004, many charities struggled to raise enough to keep pace with the rate of inflation, which came in at 3.3 percent. In addition, some had to contend with donors reallocating a portion of their giving from charitable causes to political causes. Late in the year, the tsunami disaster in South Asia generated unprecedented giving to relief and humanitarian organizations, causing many nonprofit groups to fear a drop-off in donations for their own programs.

As a result, some nonprofits are becoming more aggressive in their fundraising efforts, including asking wealthy individuals to donate land or stock in privately owned businesses. "A lot of these family-owned businesses have been doing very, very well, in [contrast] to the stock market," said Dan Rice, national director of planned giving for World Vision. "We're getting these gifts because we're asking for them, and you get what you ask for. If you went all the way through 2004 and did not get real estate or closely held stock, you left something on the table."

Organizations also are sticking with tried-and-true methods, such as direct mail, to increase attract new donors and raise more funds. According to the Minneapolis Star Tribune, nonprofit groups send out 14 billion to 15 billion pieces of mail per year, many with gifts such as note cards, calendars, and address labels tucked inside. Because charities are exempt from "do not call" restrictions, other nonprofits rely on telephone solicitations, even though unsolicited phone calls can irritate potential donors and paid telemarketers often claim .45 to .90 of every dollar raised.

Regardless of their preferred fundraising technique, the biggest concern for nonprofits in the year ahead will be the willingness of donors to open their checkbooks. "I will aim high and budget flat," said Peter Thomas, a senior vice president at United Ways of New England. "It is just prudent business until we see a real economic turnaround."