A 30 minute primer April 2, 2009 Pam Dechert, CFRE What Smart Faith Based Nonprofits know about raising money during challenging times “ In the nonprofit world, it’s “survival of the fittest” during times of economic recession. But that doesn’t mean you have to be the largest, best funded organization to survive – more importantly, its how you react to the economic environment that makes all the difference.” Materials based on “Raising Money during Challenging Times” by Lawrence Henze Director of Target Analytics, A Blackbaud Company

What Smart Faith Based Nonprofits know about raising money during challenging times - AGENDA Introductions The Recession & Your Org Ideas that work Donor Relations Annual Giving Major Gifts Questions/Discussion

Introductions

The Recession & Your Org

Ideas that work

Donor Relations

Annual Giving

Major Gifts

Questions/Discussion

Your organization and the recession Knowing your constituencies How are they affected; regionally & individually Be ‘donor centered’ We’ll be ok, how are you? Your donors, members, and prospects do not stop caring about your mission during a recession. Compassionately manage your relationships What Smart Faith Based Nonprofits know about raising money during challenging times

Your organization and the recession

Knowing your constituencies

How are they affected; regionally & individually

Be ‘donor centered’

We’ll be ok, how are you?

Your donors, members, and prospects do not stop caring about your mission during a recession.

Compassionately manage your relationships

Your organization & the recession Economic downturns are temporary/act accordingly But build in an understanding of these concerns into your communications plans How does the tough economy impact you? Internal & Outreach Budget freeze/cut Program reductions/elimination Hiring Freezes Staff Layoffs

Economic downturns are temporary/act accordingly

But build in an understanding of these concerns into your communications plans

How does the tough economy impact you?

Internal & Outreach

Budget freeze/cut

Program reductions/elimination

Hiring Freezes

Staff Layoffs

Ideas that Work – Donor Relations Orgs tend to NOT look at our donor communications because: Narrow view on communications directly tied to fundraising Silo approach that compartmentalizes communications Willingness to not account for or even seek the donors opinions of all our communications streams Simple solutions to employ Determine & Chart average number of contacts from direct mail, telephone, email – the different pieces constituents get each month for entire year on the whole! Analyze content & purpose of each piece: cultivation, information etc. Overlap? How can we consolidate or eliminate Survey your donors via email, direct mail or phone, what is important or not Implement a plan that reflects what the donor wants/segmentation analysis Cost savings on direct mail costs : Postage rates go up May 11 for npo’s Spending $ in different areas: online, benchmarking, email – look at as acquisition costs

Orgs tend to NOT look at our donor communications because:

Narrow view on communications directly tied to fundraising

Silo approach that compartmentalizes communications

Willingness to not account for or even seek the donors opinions of all our communications streams

Simple solutions to employ

Determine & Chart average number of contacts from direct mail, telephone, email – the different pieces constituents get each month for entire year on the whole!

Analyze content & purpose of each piece: cultivation, information etc.

Overlap? How can we consolidate or eliminate

Survey your donors via email, direct mail or phone, what is important or not

Implement a plan that reflects what the donor wants/segmentation analysis

Cost savings on direct mail costs : Postage rates go up May 11 for npo’s

Spending $ in different areas: online, benchmarking, email – look at as acquisition costs

Appeals E-News Renewal Upgrade Ideas that Work – Holistic Planning JAN. FEB. MAR. APR. MAY JUNE JULY AUG. SEPT. OCT. NOV. DEC. 2 2 2 0 1 1 2 3 3 1 0 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Ideas that Work – Holistic Planning An Integrated Strategy In Person Meetings Phone Events Blogs Text Messaging Social Networking Sites Your Web Site E-Mail Print Other Tools

Ideas that Work – Annual Giving How are we perceived? Are we seen as efficient? Can we solicit loyal donors more efficiently? Are we forthright w/donors in partners to reduce admin overhead? Positive message to fit their needs Is the annual fund a one-year-at-a-time “thank goodness we made the goal” enterprise? Are we surprised when donor retention is low? 171 faith based organizations lost $188,000 last year from lapsed AF Donor loyalty is at the foundation of most ultimate giving Why is donor retention NOT the chief goal of the annual fund? Is it worth testing a limited solicitation program asking LESS often but encourages and acknowledge of donor loyalty at any gift level? Are we over soliciting? Budget savings, respect, major gift work

How are we perceived?

Are we seen as efficient?

Can we solicit loyal donors more efficiently?

Are we forthright w/donors in partners to reduce admin overhead?

Positive message to fit their needs

Is the annual fund a one-year-at-a-time “thank goodness we made the goal” enterprise?

Are we surprised when donor retention is low?

171 faith based organizations lost $188,000 last year from lapsed AF

Donor loyalty is at the foundation of most ultimate giving

Why is donor retention NOT the chief goal of the annual fund?

Is it worth testing a limited solicitation program asking LESS often but encourages and acknowledge of donor loyalty at any gift level?

Are we over soliciting?

Budget savings, respect, major gift work

Ideas that Work – Ok so far…. Review our theme so far: Fundraising does not stop during a recession Most people will not stop giving – some may stop or reduce Great time to be smart, effective and efficient Use these strategies when times are good

Review our theme so far:

Fundraising does not stop during a recession

Most people will not stop giving – some may stop or reduce

Great time to be smart, effective and efficient

Use these strategies when times are good

Ideas that Work – Major Giving Needs to continue Don’t assume that people can’t give What’s the point? Major giving is about cultivation and the building of a relationship with donors or prospects The relationship needs to continue Don’t withdraw – you will jeopardize long term lifetime giving potential

Needs to continue

Don’t assume that people can’t give

What’s the point?

Major giving is about cultivation and the building of a relationship with donors or prospects

The relationship needs to continue

Don’t withdraw – you will jeopardize long term lifetime giving potential

Ideas that Work – Major Giving Take the initiative - draft a document detailing your planning & prep for the recession: Explanation of how we will meet our mission goals, and an honest assessment of what we may need to reduce or cut Efforts to trim expenses, especially partnering w/donors to cut fundraising costs Be donor centric Statement of ongoing gratitude for their loyalty & support Thank you calls Check in calls/emails Ask for their input Get your major donors to your site for a visit or volunteer Don’t operate from a position of desperation

Take the initiative - draft a document detailing your planning & prep for the recession:

Explanation of how we will meet our mission goals, and an honest assessment of what we may need to reduce or cut

Efforts to trim expenses, especially partnering w/donors to cut fundraising costs

Be donor centric

Statement of ongoing gratitude for their loyalty & support

Thank you calls

Check in calls/emails

Ask for their input

Get your major donors to your site for a visit or volunteer

Don’t operate from a position of desperation

Ideas that Work – Conclusions/Questions Positive actions you can take now to put you in a better position now and in the future Don’t sit back and let the recession act on your efforts; be a leader and be proactive in seeking strategies that will make your organization smarter, more effective & efficient

Positive actions you can take now to put you in a better position now and in the future

Don’t sit back and let the recession act on your efforts; be a leader and be proactive in seeking strategies that will make your organization smarter, more effective & efficient