Asu Surviving Tough Economic Times Presentation Dec 08

Nancy Grace, Graceful Fundraising LLC & Margaret Leichtfuss Surviving Tough Economic Times

Introduction
Nancy Grace, Graceful Fundraising LLC
Mostly Wall Street & Corporate Experience
Chief Fundraising Officer at Phx Zoo
Started Fundraising Consulting Business in 2005
Work with organizations-Valley Leadership, Ronald McDonald House, Phoenix Theatre, ASU Lodestar Center & Others
Contact Info :
www.gracefulfundraising.com [email_address]
480.678.0053

Introduction
Margaret Leichtfuss
23 years experience in nonprofit, health & human services and higher education sectors
Over 15 years in Marketing Communications and Public Relations
Over 13 years in managing Fundraising and Development strategies in organizations ranging from local and very small to very large institutions.
Contact Info : [email_address]

Audience Introductions
Share your name, nonprofit affiliation and position
What would you like to make sure that we cover in the context of “surviving” current times?

Today’s Topics
Organizational Readiness
Small Group Discussion
The Numbers
Fundraising Trends
Dealing with Scary Times
Funder Views
Small Nonprofits
Panel Discussion
Communication & “Case”
Donor Views
Basics of Fundraising
Expectations
Moves Management
Women as Philanthropists
Special Event Fundraising
Ethics
Guiding Principles
Resources & Tools
Summary

Testing for Organizational Readiness to Implement Comprehensive Development Strategies
ANNUAL GIFT STRATEGY (Direct Mail or personal solicitation under major gift threshold)
MAJOR GIFT STRATEGY (Identify, Qualify & Cultivate current donors and future prospects for gifts above annual gift threshold level)
The Board and staff are committed to building and implementing a comprehensive Development strategy and program which goes beyond event fundraising

Prospect Research
Endowment
Planned Gifts
Reserve Fund
BONUS:

Development Champions can be staff, board or volunteers and are engaged with the organization at all levels
Board and Volunteer Champions are knowledgeable about your organization, have given through several strategies and believe in the future enough to talk to others and share their vision
Training and continuing education is available for staff and volunteers
Your organizational leaders are stable, available and knowledgeable:

SCIENCE:
Historical information about donors, prospects and volunteers is gathered and recorded with integrity and accuracy
A process exists or is created for donor cultivation, solicitation, acknowledgment and donor services
The process is accurate, effective and timely
Your organization understands and approaches Development as a Science and as an Art :

Get to know the donor - Listen more than Tell
Cultivate the prospect or donor in a very personal way
Don’t do a “cookie cutter” approach in asking for support
Cultivation could take anywhere from one meeting to 20 years, depending on the donor’s intent and organizational needs
Track your moves with the donor. Make special notes about likes and dislikes, relationships
Your organization understands and approaches Development as a Science and as an Art : ART: Build your strategy around “Relationship Fundraising and Development” rather than “transactional fundraising.”

Donor should have relationship with more than one person in the organization
Respect the Donor – confidentiality
Ongoing engagement with the donor – even if you know another gift is not coming
Thank the donor with personal touches
Continually communicate outcomes or successes of the organization
ART, con’t:

Organizational mission, goals, objectives, specific programs and their budgets for the next 1 to 3 years exist.
Annual and strategic planning are regular functions of the Board.
The organization has the capacity to commit current resources (both financial and personnel) for ongoing future support.
Your organization has a clear mission and is worthy of philanthropic support

All staff and board need to understand and adhere to the financial processes and procedures in spite of emergencies
Confidentiality of donor information
Gift acceptance policies for cash, pledges, multi-year gifts, stock or estates
Historical records need to be maintained to honor donor’s intent
Written financial and donor relations policies are established and implemented

Organizational Readiness (small group discussions)
Share the mission of your organization
Who are your paid and volunteer fundraisers?
What are your top goals/strategies for raising money?
Share any unique successes w/ fundraising

Organizational Readiness Group Report Out
Who had the most unusual mission?
How many in your group had paid development officers?
Share the most unique successes w/ fundraising

The Numbers
Giving Stats: Nearly 90% of US Households Give to Charity with Avg. Contribution of $1,600 and $306 billion in 2007, up 4% over 2006*
Individuals gave $232 b, 76%
Foundations gave $38 b, 12%
Corporations gave $13 b, 4%
Bequests accounted for $24 b, 8%
Volunteerism**
Twenty six percent of the US population, or 61 million people, volunteered at least 1 time during ’06-’07
Children from families where at least 1 adult volunteers are three times more likely to volunteer regularly
*Giving USA 2008; **Bureau of Labor Statistics, US Department of Labor

National Trends
Philanthropy is Everywhere
Nonprofit World is Significant & Growing Part of GDP
Electronic Giving Growing
People Want to Give More than $
More Total Contributions To Fewer Organizations
Recent Focus Areas: Education, Health & Environment
Emphasis on Human/Social Services Now

Local Trends
Relative to Capacity, Phoenix is Tough
Few Corporate Headquarters – hard hit area with our industries (real estate, tourism, banking)
Transient Population
Individuals Still Giving “Back Home”
Only Handful of Sizeable Foundations
Thousands of Nonprofits Competing
Unique Programs Stand Out
Individuals also giving larger dollars to fewer organizations
Too Many Fundraising Events – Focus on “Old Fashioned” Fundraising (relationship building)

Economic Trends/Impact
Fairly Difficult to Read yet: DM appeals are facing a slowdown in donations & failing to keep pace w/ inflation beginning LAST year
Donations to charity in 2007 grew by less than years past with many fundraisers concerned about ’08
Direct mail, telemarketing, big-gift solicitations and special events all grew at slower rates in ’07 (OL giving rates declined the most)
Planned Giving: the “Rock”—continues to grow despite economic conditions
When the stock market falters, foundation assets fall with less distributed-- exactly when social service agencies & others need the grant dollars most
A growing divide in fundraising achievements between small and large groups: 70% of charities with $5m plus budgets raised more $ in ’07 vs. ’06; less than 50% with $500k budgets or less raised more in ’07
*Source: Target Analytics April 2008

“ Can our software handle pledges to pledge next year?”

Know who you are & how to clearly articulate your case
Remain calm & resist the temptation to cut back on your fundraising
Now is a fabulous time to show your appreciation to current AND former donors AND volunteers
Think creatively! More severe times may require more out of the box thinking
Examples

In extreme times, new donor acquisition may be too challenging—instead focus on your core group of supporters and make an effort to find as many former donors
Make a clear and compelling case for why you need continued support now
Ask for non-cash gifts
Acknowledge your donors difficulty with giving now, ask for a gift but emphasize the importance of your long-term relationship with them over all else

Try to arrange for Challenge and Matching gifts –giving your donors’ contributions more bang for the buck
Downplay event fundraising as much as possible
People would rather see 100% of the money they do give going to the cause rather than paying for parties
If you do an event, make sure there are solid follow up strategies

Donors respond best to stories of how their financial support helped individual people
Now is time to convert donors into volunteers
Be transparent! Deal openly with issue of how an uncertain economy affects your organization
Create an earned income plan – brainstorm on this!
Don’t stop asking for support

“ We informed, cultivated, and engaged him, but never checked to see if he was paying attention.”

What Do Major Funders Think? - Organizational
Surveyed three large corporations who grant a total of approximately $8 million annually to local nonprofits
Talked to “the gatekeepers”
Similarities & Differences like individual donors

Funding areas are broad
Reflect mission, culture of organization and customers. Created at board or committee level
Over 1,300 grants awarded on an annual basis
Grants may come from different “pots” of money-do research on website for granting & sponsorship guidelines
Most are giving the same dollar amount , or just a little less.

Economic Impact
Two are seeing a 10 to 20% increase in the number of grant/sponsor requests
One corporation is seeing about the same amount of requests (relationships)
All three indicated that they would do fewer grants at higher levels to make more of an impact
One corporation prefers not to sponsor events and would like to see more requests directly fund programs
Corporations sponsor events for marketing opportunities but mostly because a high-level employee or customer serves on a board and asked.

It’s All About Relationships
Organizations are more apt to get funded if they cultivate and educate key decision-makers on a year round basis—don’t just send in a proposal
Organizations are more apt to get funded if corporate employees volunteer with the organization
Remember that corporations are facing the same financial crisis as nonprofits-you’re not entitled to a gift just because they gave you a gift the previous year
One corporation tends to give to the same organizations because they want to have “relationships for life.”

PET PEEVES
The form was not completed correctly (didn’t follow application instructions)
Organizations who get “creative” in making a program of the organizations “fit” within your giving guidelines
They ask for too much money
They don’t respect your established timeline of the granting donations
They ask for donations last minute
They incessantly call you to find out if they are getting funded
They don’t tell you if some of your employees volunteer with them
They go over your head to CEO or other employee to try and speed up the process or get a different answer
You only hear from them when they want money
You don’t receive the promised recognition/exposure/alignment with the organization

Break Time!
Please return to the room in 15 minutes

CHALLENGES: “Small” – Budget Size Fundraising Program/Sophistication
Challenges:
Limited Resources
Lack of training, continuing education and networking
Technology shortcomings: identifying prospects, etc
Lack of well-established relationships with donors
Inexperienced staff and volunteer fundraisers

Advantages/Opportunities
Lots of low-hanging fruit
Typically more nimble and flexible in adjusting ‘game plan’
Share Your Challenges & Opportunities!
CHALLENGES: “Small” – Budget Size Fundraising Program/Sophistication

Small Nonprofit Real Life Examples - Panel
Allen Gjersvig, Keogh Health Foundation
Kari Yatkowski, Haven Charitable Foundation
Pam Gaber, Gabriel’s Angels

Small Nonprofit Real Life Examples - Panel
Describe Organization, Overview & History
Describe Your Development Program
What has Worked
What has Not Worked
What Have You Not Yet Included in Your Efforts That You Want to

Communication Is Key For Attracting & Keeping Donors
With few exceptions, write and speak in a donor-centric way
Communicate to appeal to people’s desires, not what they should do according to you
Balancing act: sharing success stories from past while creating a current donor sense of urgency
Establish an interesting, unique and lively tone for the organization to use throughout
Be creative & compassionate!
Communicate regularly in short, targeted ways: check out presidential campaigns for best practices on e-communication

Communication Is Key & Mission is Huge…for Donors, Board & Staff!
Most important item to communicate: how your mission fills a gap or need in the community!
… And then tell them/remind them how you successfully used their investment/donation
Example: Kellogg Foundation original guidelines “Do anything as long as it promotes health, happiness & well-being of kids”
Foundation was all over the map until a new mission and focus: “ Strengthen and create conditions that propel vulnerable children to achieve success.”
A good mission drives more board involvement, a rallying cry and productive efforts by staff

The Case is Key!
“ The ‘Case’ represents all the reasons people should support you
Backdrop for all Development & fundraising materials – tailor as needed
Source: Kay Sprinkel Grace

The Case is Key!
‘ Case’ Checklist
Mission Statement
Vision Statement
Values Statement
Goals & Objectives from Strategic Plan
Description of your programs and evaluation process
Description of your community partnerships
Anecdotal and statistical evidence of your impact in your community/communities (stories)
Source: Kay Sprinkel Grace

What Do Donors Think? - Individuals
HOW DO THEY GIVE?
Most donors gave to five or more organizations
Most gave $100 to $250 to each, other gave $750-$2,500+
Most will cut back on the number of charities they give to—They will give same to less to make a bigger difference
Some are suspending giving until stock market gets better
Most of the donors stated they had not received more postal direct mail pieces, but e-direct mail has increased significantly
None of the donors have given to an “unknown” organization because they were sent a direct mail piece
Most “toss before reading” any unpersonalized direct mail pieces

What Do Donors Think? -
WHY THEY GIVE :
The top two reasons why people give?
They have been personally affected by the cause
A friend asked them to give or get involved
… They attended an event that:
focused on the mission and results of the organization
Featured recipients of the organization’s programs or services
Was emotional, fun and made them want to get involved
… They did not like:
Events that were too “over the top” and didn’t yield a high net result
Had a lot of talking heads and focused on the chairs and committee instead of the mission of organization

What do Donors Want?
Follow up—on anything
Personal attention
Giving with special membership opportunities – allows them to give and also visit or engage
Volunteer opportunities for whole family
Measurable Results
… To feel appreciated or acknowledged
Acknowledgment isn’t always a “Thank You” but a report on outcomes on an ongoing basis
A sense of “belonging” to or seeing that they impact the bottom line

What do Donors Dislike?
No Follow up—on anything
Being bombarded with marketing materials
Feeling pressure, shame or guilt to give
Not being invited to social events or hearing that another donor is getting “more” from the organization
No contact until the organization needs more money
Typos or incorrect information on written correspondence
Spouses - only focusing on the male spouse!
Late invitations to events
Beating around the bush in an ask
A “fast ask” without listening to their intent first
Uncoordinated multiple asks from different staff or board members

What ISN’T getting you the gift or a bigger gift?
You didn’t ask
You sent them direct mail for giving and didn’t personally follow up with an ask
They gave for years, but they never received a personal call or follow up
Poor fiscal management or perceived inner turmoil
You bought a list and sent them a form letter
They didn’t feel the connection any more
You only call them when you need money
You only invite them to galas and don’t follow up with year-round engagement
You aren’t sensitive to personal issues going on in family
You aren’t perceived as sincere or trust-worthy
You don’t communicate accurate information
They have no interest in the cause
You don’t listen

How do we get them to give and give more?
Most started giving at lower level & increased giving because:
A friend or board member asked them to give more
The Executive Director/CEO asked them to give more
They are personally affected by the cause
They were invited to take a tour of the organization or meet a recipient of the organization
They volunteered and saw a need
They attended an event
They felt engaged, appreciated and acknowledged
The increase was part of moving up a “membership circle” or “honor roll”
Giving through “membership” – allows them to give and also receive “special opportunities”
There were opportunities for the whole family
They saw measurable results
They knew their gift could “save a program” or organization

The Basics
The Process:
Fundraising is a volume business
There will be plenty of declines: don’t take it personally!
You likely know most of the prospects you need:
90% of all American Households donate
While a down or flat economy/stock market negatively affects the process; a robust economy affects the process of giving even more

The Basics
Reasons for Giving:
Caring about the cause/mission
You see a clear need
You had direct experience or exposure with organization
Giving is a tradition in your family
You want to give something back
Honor/memorialize
You want the recognition
You are returning a favor to a friend
You want a tax deduction
BUT WHAT ARE THE TOP 3 REASONS FOR GIVING???
*Source: Andy Robinson, Big Gifts for Small Groups

What Should Be Expected From Board Member/Volunteer
An Organization Should Outline Its Expectations of Board Members (Fundraising & Generally)
Handout: Board Service Option Form
Support of All Major Fundraising Initiatives
Personal Financial Support as well as Connections to Organizational Funders
Being a spokesperson/steward naturally leads to raising funds—”if you commit your time, how could you not expand the mission?”

What Should Be Expected From Staff
All Staff Members are Fundraisers, Particularly the Executive Director
Work Towards a Small Handful of Fundraising Goals & Priorities – Resist Distractions!
Provide Active Support to All Board Members & Volunteers Willing to Help
Burden for Training & Support on Staff
Provide Leadership on Proper Treatment of Donors & Prospects

“ Moves Management”
WHAT IF YOU GOT HIT BY A BUS?
How will the staff and board continue or build on former relationships with individuals or corporations without “Starting Over?”
Moves Management is only as good as its use…
You can create all the lists of prospects and donors you want, but if you don’t use the financial and personal information with the highest integrity, it’s just information.
Cold calls may work, but creating that connection or making that ask using all the information available will result in continued giving, a bigger gift.
And, documenting the relationship could result in the “Gift of a Lifetime” – an estate or planned gift for the organization.

“Moves Management”
Simply put, blends the science and art of fundraising together to keep an historical record on donor relationship and activity:
Financial Stewardship
Accurately tracks gift amounts
Programs funded
Types of gifts
Soft Credit to spouse/partner/family/company
As Sophisticated or as Simple as your Organization’s Culture and Ability

Simply put, blends the science and art of fundraising together to keep an historical record on donor relationship and activity:
Donor Relations
Who is the donor? Accurate spelling of name, preferred salutation
Who do they know or are related to? (connect records)
What are their passions?
Where have they given to in the past?
What communication do they or should they receive?
Any special requests for recognition or remaining anonymous?
What other organizations do they give to?
Personal anecdotes

Uses financial data, any research and personal information to “move” a donor forward in giving to an organization
Some are die-hard timeline followers: Each donor moves at their own pace
Keep portfolio of specific prospects or donors (CEO, Staff & Board Members) for cultivation and solicitation
Track movement or lack thereof
Add new prospects when prospects become donors
Roll off prospects after a specified amount of time

“ We considered you a prospective donor right up to the third time you said no.”

Women as Philanthropists
Women have unique patterns to their giving, motivations and expectations
Research over the past decade shows that they prefer to give to organizations in which they feel personally connected
A study of giving in Indiana found that men and women give equally on average (when controlled for income and education level)
Many studies show that Womens’ core motivations for giving are similar to those that men have—altruism, gratitude, desire to improve the world
However, men and women differ on communication styles and management in the workplace—largely a result of double standards in economic, social and power structures

Women as Philanthropists The Six C’s of Women’s Giving
Shaw & Taylor and the Women’s Philanthropy Institute:
Create : women either start their own nonprofits or enjoy creating new programs within existing ones
Change : women give to bring about change. In focus groups they indicate the dislike of supporting operations; they target gifts to particular programs or initiatives
Connect : women seek a personal connection with a program or project. A sense of connection can be achieved by providing ongoing information on how the dollars are making a difference

Women as Philanthropists The Six C’s of Women’s Giving
Collaborate : women enjoy working together in groups; competitive fundraising appeals don’t work. Women’s giving circles and philanthropy councils in higher education are examples of collaborative philanthropy
Commit : women are committed—they want to give money and time. In contributing households with a volunteer, the percentage of household income given to nonprofits doubles: this holds up during downturns too!
Celebrate : women like to celebrate their accomplishments and fun with philanthropy. This is grounded in women’s tradition of raising money through events. Events are still an important way to recognize the contributions of major donors and volunteers and also to have fun!

Goals for Excellence in Special Event Fundraising
Update the knowledge of your mission, educate the community & why you exist
Motivate & educate lay leaders/vols/staff
Recruit volunteers (and future board members and supporters) – a gateway for donors
Expand your network in the community
Market your work in the community
Obtain endorsements from community leaders
Receive financial support by achieving the first 6 goals
Source: Hank Rosso’s Achieving Excellence in Fund Raising

Event Fundraising
Principles & dynamics of special event fundraising are similar to most other kinds of fundraising
Offer prior sponsors and supporters the opportunity to easily provide feedback on their experiences
Send communication that details how their investment was well used from the last event before bringing up this year’s event
Practice donor-led conduct; remember old marketing concepts: when a customer buys a quarter-inch drill he really wants a quarter-inch hole; it doesn’t matter what you want to sell…only important thing is what your prospect wants to “buy”
Detail what the sponsorship exposure buys the prospect; access to key people; long term recognition and year-round benefits?

Ethics: Highlights
AFP (Association of Fundraising Professionals)
Code of Ethics: handout
Confidentiality is Critical
Donors Deserve to Know Where their Money is Going—If designated or restricted their donation dollars must be used for their intended purposes
Donors must feel free to ask questions and receive truthful and forthright answers
Donors have a right to know who is on the governing board and to expect that the board exercises prudent judgment in its stewardship responsibilities

Guiding Principles
Be Personal & Sincere
Each Prospect Treated Separately and Distinctly
Anyone Asking for Gifts Must Have Already Made Theirs
Ask for a Specific Dollar Amount or For a Tight Range of Contribution
Consistent Supporters Tend to Make Larger Gifts or Sponsorship Commitments
Use “We” Instead of “I” When Representing the Organization’s Request

Guiding Principles (Cont.)
Relationship Development Versus “Sales”
Make Sure You Never Take for Granted Long-time Donors OR Ignore a Prior Donor
Have Several Prioritized ‘Asks’ in Mind
A Positive Attitude Helps Make You a Better Solicitor & Ensures Your Longevity in the Process
An Ask Without Follow-up Will Result in No Gift

Resources & Tools
IRS under www.irs.gov (Charities & Non-profits tab)
Association of Fundraising Professionals under www.afpnet.org
Arizona Chapter: www.afpgreateraz.afpnet.org or call 480.609.3999
Alliance of Arizona Nonprofits under www.arizonanonprofits.org or call 602.279.2966
Guidestar is a searchable database of 1.5 million nonprofits under www.guidestar.org or call 757.229.4631
Charity Navigator is largest charity evaluator under www.charitynavigator.org
Chronicle of Philanthropy is “The Newspaper of the Nonprofit World”: www.philanthropy.com or 202.466.1200
Board Source has publications, tools and membership to help strengthen nonprofit boards under www.boardsource.org or 877.892.6273
IEG is an organization with a site: www.sponsorship.com that includes valuation tools for pricing sponsorships and latest trends in the sponsorship field

Summary
A Majority of Americans Give Their Time and Money, but they may not be giving now
Creating relationships with donors and prospects is absolutely critical
Asking for Donations is Critically Important—Follow Up!
Development Is Not Easy But Can Be Rewarding With Focus on Fulfillment of Mission
The Best Fundraising Nonprofits Approach Fundraising with Professionals and Volunteers as Partners in the Process
Solicitations are Important but continuing Cultivation and Stewardship are Key
Don’t expect grants or sponsorships to save you in this economy—they are hurting too!
Stand out with your message—build brand reputation!
Go Forth & Help Raise Lots of Money!

Final Thoughts…
“ Act as if it’s impossible to fail”
Hesitation to start or lack of sufficient follow through are biggest barriers to success
“ People don’t care about how much you know until they know how much you care !”
Without even knowing you well, people can sense when you are passionate about an organization or event—unleash your passions about your organization!

Thank You!
Nancy Grace, Graceful Fundraising
www.gracefulfundraising.com
[email_address]
480.678.0053
Margaret Leichtfuss
[email_address]

Asu Surviving Tough Economic Times Presentation Dec 08

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Asu Surviving Tough Economic Times Presentation Dec 08 — Presentation Transcript