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Resuscitating Your Budget: Moving Donors to Give

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Recruiting new donors can cost up to 3-10 times more than keeping the donors you have. How do you keep donors loyal to your cause and get them to give even more? How many times should you ask donors …

Recruiting new donors can cost up to 3-10 times more than keeping the donors you have. How do you keep donors loyal to your cause and get them to give even more? How many times should you ask donors to give? What are the reasons donors stop giving? Join us as we address these questions and more!

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  • Thankfully, we DO know a little something about fundraising….Introduce ourselves and our experience And AFP
  • ASK: How many of you are responsible for fundraising for your organization? How many are volunteers involved in fundraising? How long have you been involved in fundraising? Brand new? 1-3 yrs, 3-5 yrs, 5 yrs or more? How many of you think your fundraising programs could improve?
  • The 1977 John Travolta movie 'Saturday Night Fever' was a huge hit. A recent study found that the disco song 'Stayin' Alive' from the film has the perfect rhythm for performing cardiopulmonary resuscitation, or CPR. What do you need to do to keep your fundraising alive?
  • Don’t Panic…like CPR you need to take steady and consistent action to resuscitate and raise financial support.
  • Our purpose today is not to focus on specific fundraising strategies, like direct mail or special events, but rather to focus on the critical underlying aspects that affect the success of fundraising…that move donors to give…like why do people give…
  • Among those experiencing a decline in giving, the main reason cited was fewer individual donations and smaller amounts. Lower amounts received from foundations and corporations also contributed to the overall lower giving amounts at these charities.
  • Is there ever a “good” time to ask for money? Don’t Be this guy! The Fundamentals of fundraising remain true regardless of economic climate: You must continue to ask, but your specific fundraising activities may need to be adjusted to reflect economic realities
  • With 75% of outright gifts from individuals and another 8% in bequests…83%
  • ASK Attendees: Why do YOU give to charity? List answers on whiteboard
  • BoA study of “affluent donors” – those with incomes over $200,000 or assets over $1 million. However, these motivations are fairly universal regardless of income level. Feeling financially secure was #4 in 2008 study…moved up the chart, emotional motivation still top.
  • Top reasons why donors stopped giving TO A PARTICULAR CHARITY. These reasons shifted from the 2008 study indicating how economic climate has impacted donor motivations.
  • SO How do you move donors to give? Treat Donors as People…At its core, fundraising is about relationships
  • There is a process for raising funds, building loyalty and growing donor support. The “Thank you” is a critical step in deepening the conversation, building trust and cultivating the relationship Donors are human beings, not statistics or ATM machines, Desire warm acknowledgment Donors appreciate being appreciated Expect stewardship, they w ant to know their gift was put to good use Relationships matter… Create meaningful experiences (it should be a pleasure to be a donor)
  • The initial gift is a statement of interest not loyalty New Donor Process Handout - a new donor process will ensure new donors don’t fall into the normal fundraising cycle at an awkward time
  • 200
  • ASK: So How many times should you ask a donor for a gift?
  • Donors will give again when they are satisfied their first gift was used as they intended.
  • ASK: What kind of communications are you engaged in?
  • Bad communication: You can substitute the name of any other charity in your communications Needs” are focused more on organization, and economic woes than on those you serve No specific call to action No clear, easy way to respond
  • One of these groups could be your new donors – remember: we want to have a plan for handling new donors. Meaningful interactions is the key. Think of your donor groups and jot down a few ways you could individualize your communications with them.
  • Acquisition and Retention go hand in hand…. Typically lose 30% of donor base annually! What does that mean for Acquisition? You must continue to acquire new donors, BUT Donor Loyalty is King in fundraising Recruiting new donors can cost up to 3-10 times more No wonder only 60% of charities see growth in annual support in a normal year!!
  • Segment asks; ask for a specific amount If someone has given regularly for several years or given 2-3 times in one year – try a monthly giving approach Donors make great volunteers and vice versa – engagement is key Screen your database and do research to find major donors
  • Transcript

    • 1. Resuscitating Your Budget: Moving Your Donors to Give Robert Croft, CFRE, Partner/Consultant, Crandall, Croft & Associates and Jennifer Renner, Development Supervisor, CANI from the Northeast Indiana Chapter of the Association of Fundraising Professionals January 20, 2011 www.slideshare.net/rncroft
    • 2. About Us
    • 3. Some Assumptions…
      • You have donors
        • In a database
      • You have a budget
      • You are already doing some fundraising
    • 4. First a Quick Survey about You
    • 5. Does your fundraising program need CPR?
    • 6. Don’t Panic!
    • 7. Session Objectives
      • Why do people give to charity and stop giving?
      • How many times should you ask?
      • How do you build donor loyalty?
      • How do you get donors to give even more?
    • 8. State of Fundraising: Cautious Optimism
      • Joint survey of 5,000 nonprofits released in December by the Nonprofit Research Collaborative (includes AFP):
        • 36% of charities reported an increase in giving during the first 9 months of 2010 compared with 23 percent during the same period in 2009.
        • About 37% reported a decrease in giving so far in 2010, compared with 51% a year ago.
    • 9. Is there EVER a “Good Time” to Ask?
    • 10. Giving USA 2010
      • Total Giving in 2009 was $303.75 Billion
      • 83% of all giving is from Individuals (incl. Bequests)
    • 11. Why do people give?
    • 12. Affluent Donors – BoA 2010 Study
      • Top motivations for giving were: 
        • Being moved by how their gift can make a difference (72%).
        • Feeling financially secure (71%).
        • Giving to an organization that will use their donation efficiently (71%).
        • Supporting the same causes or organizations annually (66%).
        • 2010 Bank of America Merrill Lynch Study of High Net Worth Philanthropy
    • 13. Affluent Donors – BoA 2010 Study
      • Top reasons for why donors stopped giving: 
        • Too frequent solicitation/organization asked for inappropriate amount (59%).
          • 2008 #1 Reason was “no longer feel connected to org”
        • Decided to support other causes (34%).
        • Household circumstances changed (e.g., financial, relocation, employment) (29%).
        • Organization changed leadership or activities (29%).
        • 2010 Bank of America Merrill Lynch Study of High Net Worth Philanthropy
    • 14. How Do You Move Donors?
      • Treat Donors as People
        • Take time to cultivate relationship
      • Make Appropriate Asks
      • Send Consistent, Meaningful Communications
      • Keep Donors Engaged/Giving
    • 15. Donor Cycle Builds Loyalty
    • 16. Loyalty starts with the 1 st gift
      • Acknowledgement
      • Have a new donor process
        • Welcome letter/packet
        • Thank you call
        • Credibility letter (within 2 months)
        • Newsletter
        • Best ever renewal package
    • 17. Deepen Donor Relationship
      • Phone call
      • Personal visit
        • Ask questions and listen well
        • Learn donor interests
      • Tour of facility/organization
      • Connect with other similar donors
        • Social Media, Special Events
      • Report gift use
      • Plug in to volunteer opportunities
    • 18. Don’t Over-Solicit
    • 19. When to Ask Again? “ 78% of individual donors said they would definitely or probably give again to a charity that provided them with prompt, personal gift acknowledgement , followed sometime later with a meaningful update on the program they had funded.” Penelope Burk Thanks! A Guide to Donor-Centered Fundraising
    • 20. Communicate
    • 21. Effective Appeals
      • Emotional – Puts a “face” on your service
      • Compelling – Shows a valid need
      • Responsive – Clear call to action
      • Easy – For donors to respond
      • Multichannel – Meets donors where they are
    • 22. Give ‘em What They Want Develop a schedule for interacting with donors several times a year with information that is of interest to them. Source: Janet L. Hedrick, CFRE from “Near, Dear, and Clear” by Paul Lagasse in Advancing Philanthropy Nov/Dec 2010
    • 23. The Fundraising Challenge
      • The Fundraising “Bucket”
        • Acquisition and Retention
          • Nonprofits lose 5 donors for every 6 they obtain - Fundraising Effectiveness Project
          • A 10% increase in donor retention can increase the lifetime value of the donor database by up to 200 percent. - IU Center on Philanthropy
    • 24. Get Donors to Give Again (and More)
      • After proper cultivation and stewardship:
      • Ask Again
      • Ask for Upgrades
      • Invite to Monthly Giving Program
      • Identify/Ask for Major Gifts
    • 25. Keeping Your Fundraising Alive!
      • Philanthropy C ontinues even in a bad economy
      • Donors are P eople
        • You have to build trust with effective communication and interaction
      • R etention is King
        • Spend time with your donors – they’re worth it!
    • 26. Resources
      • Association of Fundraising Professionals
      • - www.afpnet.org - www.afpnein.org
      • Paul Clark Nonprofit Resource Center
      • - www.acpl.lib.in.us/nrc
      • Chronicle of Philanthropy
      • www.philanthropy.com
      • The Center on Philanthropy at IU
      • www.philanthropy.iupui.edu
      • http://www.afpnet.org/files/ContentDocuments/Donor_Retention_What_Do_We_Know.pdf

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