100 New Donors in 90 Days: A Step-by-Step Process


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We live in the midst of a “new normal.” The current, unprecedented global economic roller-coaster and political uncertainty impact personal philanthropy. This new normal has led to many donors’ anxiety about the future.
As a result, people are not making new, first time gifts and are cutting their giving to some of their former charities—if not eliminating them altogether. Then, where are you to find the donors and the money to achieve your goals?
Research shows that it requires 4.5 times the effort, staff, and dollars to acquire a new donor as it does to keep one. Yet some nonprofits seem to spend more time and energy pursuing a new giver than making the effort to keep the old friend happy and engaged.
We know that with proper planning you can retain your donors. It has been demonstrated that with effective development and stewardship, you can be certain of an enthusiastic donor base and high retention. If you follow systematic procedures, the annual fund program is virtually failsafe. Securing donors is obviously the first step. But then you must acknowledge promptly and effectively, show appreciation regularly and sincerely, and give priority to winning the donor’s heart and mind to the cause.
Following this plan will help to create a culture of giving at your organization.

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100 New Donors in 90 Days: A Step-by-Step Process

  1. 1. 100 New Donors in 90 Days: A Step-by-Step Process David A. Mersky October 17, 2012A Service Of: Sponsored by:
  2. 2. INTEGRATED PLANNING Advising nonprofits in: www.synthesispartnership.com • Strategy • Planning (617) 969-1881 • Organizational Development info@synthesispartnership.comA Service Of: Sponsored by:
  3. 3. www.mission.doA Service Of: Sponsored by:
  4. 4. Today’s Speaker David A. Mersky Founder and Managing Director Mersky, Jaffe & AssociatesAssisting with chat questions: Hosting:Jamie Maloney, Nonprofit Webinars Sam Frank, Synthesis PartnershipA Service Of: Sponsored by:
  5. 5. ©2012 Mersky, Jaffe & Associates
  6. 6. The State of Philanthropy in America Today: A View from the Field ©2012 Mersky, Jaffe & Associates
  7. 7. What do we actually know? The Economy• Worst economy since Great Depression• Low consumer confidence• Historically, charitable giving correlates to M1 (Money Supply or disposable cash) not Dow Jones• Charitable giving decreases less than 1% for every 100 points the Standard & Poor’s 500 index drops, according to a study by the Center on Philanthropy©2012 Mersky, Jaffe & Associates
  8. 8. Giving During Recessions • Decline in first-time donors • Loyal donors continue to give • Religious affiliation and giving increase • During the Great Depression bequest giving increased to 70% of all substantial gifts, well above its usual level of 10-20% • Complex, tax-advantaged planned gifts decline • Smaller gifts are less tax-advantaged, so current stock market gains or losses are less relevant©2012 Mersky, Jaffe & Associates
  9. 9. The number of 501(c)(3) organizations, 2002–2011
  10. 10. 2011 charitable givingTotal = $298.42 billion
  11. 11. Total giving, 1971–2011
  12. 12. Total giving as a percentage of Gross Domestic Product, 1971– 2011(adjusted for inflation)Data are rounded.
  13. 13. Types of recipients of contributions, 2011 Total = $298.42 billion
  14. 14. Q:How do you get your piece of the pie?©2012 Mersky, Jaffe & Associates
  15. 15. • A Compelling Case A: • A Comprehensive Plan • A Strong Board • A Systematic Approach©2012 Mersky, Jaffe & Associates
  16. 16. Segment Your Donor Database 1. Sort donors by A. Date of most recent gift B. Amount of most recent gift 2. Current contributors A. Have you thanked them sufficiently B. Read http://merskyjaffe.com/10-essential- articles/ways-to-thank-a-donor/©2012 Mersky, Jaffe & Associates
  17. 17. How Are You Doing?• How many donors on your database?• How many gave in 2010?• How many 2010 donors gave in 2011?• What is the rate of renewal?• How many 1st time donors in 2011?• What is the total number who gave in 2011?• WHERE ARE YOU IN 2012?©2012 Mersky, Jaffe & Associates
  18. 18. Segment Your Donor Database 3. LYBUNTs—The Key to 100% Renewal A. Analyze each donor for recency—i.e., month, year B. Solicit them in most appropriate way—how they gave the last time – Direct mail – Email – Telephone – Face-to-face C. Attend to first time donors D. Review LYBUNTS monthly©2012 Mersky, Jaffe & Associates
  19. 19. Segment Your Donor Database 4. PYBUNTs—The Key to Resurrection A. Further segment by highest gift, number of gifts and cumulative giving B. For each one who contributed $1,000 or more, create a “Campaign of One” to re-engage – Who can provide information – Who should be assigned – Design a set of tactical moves – Review http://merskyjaffe.com/knowledge- archive/webinars/major-gift-moves-management/©2012 Mersky, Jaffe & Associates
  20. 20. ©2012 Mersky, Jaffe & Associates
  21. 21. A: A Strong Board… because leadership trumps all©2012 Mersky, Jaffe & Associates
  22. 22. 12 Principles of Governance That Power Exceptional Boards Responsible Boards Competent stewards focusing on fiduciary oversight, compliance with law, act with financial integrity and operate effectively and ethically. X The Source of Power Thoughtful, intentional, active and engaged, knowledgeable and communicative = Exceptional Boards Active engagement and independent decision making, open and honest with each other and the CEO, passionately challenge and support efforts in pursuit of the mission.©2012 Mersky, Jaffe & Associates
  23. 23. 8. Sustaining ResourcesExceptional boards link bold visions and ambitious plans to financialsupport, expertise and networks of influence. Responsible Boards Approve balanced budget Accept fundraising responsibilities and contribute personally Promote organization in community X The Source of Power Creative and diverse revenue sources Enthusiasm for bold visions and ambitious plans Active involvement in solicitations = Exceptional Boards Generate increased revenue Extend programmatic capacity or organization Improve organization’s standing in the community ©2012 Mersky, Jaffe & Associates
  24. 24. ©2012 Mersky, Jaffe & Associates
  25. 25. A: A Systematic Approach to Year- Round Fundraising©2012 Mersky, Jaffe & Associates
  26. 26. Creating a Culture of Giving Gateways Cultivation Leveraging Making the Ask the Donor©2012 Mersky, Jaffe & Associates
  27. 27. Gateway Events: First Point in a Cycle of Life-Long Giving• Three basic components – System for capturing names and contact data with permission – Facts 101: Vision and Opportunities – Emotional Hook“As individuals, we are emotional donors looking for rational reasons to justify our emotional decision to give.”©2012 Mersky, Jaffe & Associates
  28. 28. Gateway Events: Program Format• Greeting at the moment of arrival• Sign-In – Name – Address – Phone Number – Email address – Who invited them©2012 Mersky, Jaffe & Associates
  29. 29. Gateway Events: Program Format• Brief mix and mingle• The Program – Facts 101 • Brief history • Mission • Program overview • The numbers • Vision including the gap, their role and the $ to fill it – The Emotional Hook – Thank You and Wrap Up©2012 Mersky, Jaffe & Associates
  30. 30. Gateway Events: Thank You and Wrap Up• Conclude on time• Let people know about follow up • Feedback • Advice• Handouts • Basic brochure • Fact sheet of FAQs • The Complete Wish List: Real items by program/department from small to large©2012 Mersky, Jaffe & Associates
  31. 31. Follow Up and Involve• Most important step to build lifelong donors – Follow up process never ends – Personal contact asking for feedback• Systematic research call – What will it take to have prospects feel they have made a real contribution? – To what extent do they want to become involved• Customize a plan for each prospect• Sooner you connect/ask for feedback, sooner you can give them what they want and keep them coming back for more©2012 Mersky, Jaffe & Associates
  32. 32. Script for Follow Up Call• A research call to determine how each prospect might like to become involved• Key to follow up call: LISTEN FOR CUES• The Script 1. Thank you for coming 2. What did you think? 3. Be quiet and listen 4. Is there any way you could see yourself becoming more involved with our agency? 5. Be quiet and listen 6. Is there anyone else with whom you suggest we engage? 7. Be quiet and listen©2012 Mersky, Jaffe & Associates
  33. 33. In this economy, what can you do?• Focus on annual appeals that “matter”• Steward relationships with funders and keep asking• Be sensitive to donors’ challenges.• Slow down cultivation cycle for major donors; be aware of their specific economic situation• Remind people about bequest giving as a way to support your organization in the future ©2012 Mersky, Jaffe & Associates
  34. 34. In this economy, what can you do?• Steward your loyal donors.• Call or visit to thank them for their loyalty• Hold a donor briefing—in person or by conference call—to help them feel like insiders• Transparency. Be honest about your financial challenges, and share your plan to deal with them• Tighten your case for giving, articulate the need for your programs and demonstrate results ©2012 Mersky, Jaffe & Associates
  35. 35. Keep The Connections• People will give to those that love them the most.• Why do donors stop giving? They no longer feel connected.• The number one reason why people don’t give? No one asked them!
  36. 36. 100 Donors in 90 DaysAn amazing series includes interviews with 12top fundraising consultants about ways you canfind new donors. Tips cover everything fromsocial media to board involvement.http://merskyjaffe.com/development/100-donors-for-your-nonprofit-in-90-days-really/©2012 Mersky, Jaffe & Associates
  37. 37. ©2012 Mersky, Jaffe & Associates
  38. 38. Mersky, Jaffe & Associates Financial and Human Resource Development Solutions for Nonprofits 800.361.8689 413.556.1074 fax www.merskyjaffe.com OFFICES IN BOSTON AND NEW YORK©2012 Mersky, Jaffe & Associates
  39. 39. Find listings for our current season of webinars and register at: NonprofitWebinars.comA Service Of: Sponsored by:
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