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Raising Money In Challenging Times
 

Raising Money In Challenging Times

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    Raising Money In Challenging Times Raising Money In Challenging Times Presentation Transcript

    • Raising Money in Challenging Times: Strategies & Ideas for Success Robert Shechter May 2009
      • Evaporation of $15 trillion in private family assets and wealth
      • Many charities will disappear/merge
      • Mortgage crisis
      • Banking failures
      • Madoff scandal
      • Failure of the automotive industry
      • 9.4% unemployment
      The Bad News
    • What is the Economic Reality? Wall Street Journal – 3/30/09
    • What is the Philanthropic Reality? Wall Street Journal – 3/30/09 Source: Giving USA Spotlight, Issue 3 2008 Inflation-adjusted total giving amounts based on Giving USA records for 1967 to 2007. The black bars indicate years with a month or more of recession. Giving does not go down during all recession years. It rose or stayed stable (adjusted for inflation) in 9 of the 15 years on record with at least one month of recession.
    • What’s the Forecast for Philanthropy? Wall Street Journal – 3/30/09 Source: Giving USA Spotlight - 2008 “ Philanthropy in a Turbulent Economy” Cygnus Research – Jan. 2009
    • What’s the Forecast for Philanthropy? Wall Street Journal – 3/30/09 Source: Giving USA Spotlight - 2008 “ Philanthropy in a Turbulent Economy” Cygnus Research – Jan. 2009
    • Some things never change… Wall Street Journal – 3/30/09 Source: Giving USA Spotlight - 2008 Donor ranking of important factors when making a gift… Source: Bank of America High Net Worth Philanthropy Study 2008
    • And the reasons people contribute don’t change during a recession either…
      • Desire to do something that “matters” and have an impact – desire for “meaning”
      • Leave a legacy – make a difference
      • Religious beliefs
      • Belief in the specific goals and benefits of the cause/initiative/project
      • Desire to be part of something greater than oneself
      • Desire to emulate others who give
      • Pressure from a peer to support a cause that’s important to that person
      • Desire to be perceived as having the assets/lifestyle of a prominent person
      • Ego
      • Income/estate/gift/capital gains tax benefits
    • Critical next steps… Wall Street Journal – 3/30/09 Source: Giving USA Spotlight - 2008
      • Steward gifts properly
        • During a recession, it is more important than ever to thank donors
        • Recruiting a new donor is much more expensive than retaining existing donors
        • When the economy improves, donors are more likely to resume giving to orgs that have stewarded their gifts well
      • Keep communicating with your best prospects even if they stop or reduce giving
      • Stay focused on your mission
      • Don’t stop asking
      • People who really care about your work and mission will try to find a way to give
    • What you should try to avoid … Wall Street Journal – 3/30/09 Source: Giving USA Spotlight - 2008
      • Special events
        • In tough economic times, donors can become downright angry if their money goes toward some fancy event rather than directly to the organization/program
        • For necessary events, look for low cost options that focus on substance and mission
      • Major donor acquisition initiatives
        • People will be less likely to support unfamiliar organizations
        • Work on re-engaging lapsed donors and energizing top performing segments
      • Across the board staff cuts
        • The economy will eventually improve
        • Re-staffing and training could take six months to a year
      • Cutting back on donor relations activities
    • Strategy #1… Wall Street Journal – 3/30/09 Source: Giving USA Spotlight - 2008
      • Prospect amongst executives and owners in recession-proof businesses…
        • Bankruptcy attorneys
        • Corporate restructuring attorneys
        • Luxury retail
        • Discount retail
        • Healthcare
        • Beauty and cosmetics
        • Repair services
        • Tax accountants
        • Waste collection
        • Rental property owners
        • Debt collection
        • Healthcare
        • Alternative energy
        • Rental property owners
        • Food and Grocery
        • Education
        • Funeral homes
        • Government
    • Strategy #2… Wall Street Journal – 3/30/09
      • Get networked…
        • Firstgiving.com
        • Bringlight.com
        • Sixdegrees.org
        • Yourcause.com
        • Yahoo for Good
        • Zazengo.com
        • Razoo.com
        • Socialvibe.com
    • Strategy #3… Wall Street Journal – 3/30/09 Source: Giving USA Spotlight - 2008
      • Make a commitment to world-class donor service…
        • Be accessible and respond quickly
        • When a donor complains, focus on saving the donor, not the gift
        • Don’t put any prospect/donor on hold – ever
        • Don’t ever allow a meeting with a prospect/donor to be interrupted
        • Don’t ever allow a prospect/donor’s phone call to sit overnight unreturned
        • Don’t make a prospect/donor wait in the reception area for more than 3 minutes
        • Be honest – if we mess up, just explain and apologize. Donors will appreciate this.
        • Be cheerful and helpful
        • Be personal and personable
        • When donors call, they should get a real human voice
    • Strategy #4… Wall Street Journal – 3/30/09 Source: Giving USA Spotlight - 2008
      • Stay the course in cultivating prospects
      • Continue to utilize all the traditional cultivation methods…
        • Introduce them to your leadership, board members, and existing donors
        • Send holiday, sympathy, and anniversary cards
        • Send personal notes of congratulations for accomplishments
        • Send thank-you notes for referrals
        • Ask for their advice in their area of expertise
        • Arrange for your existing donors to call, write, or visit prospects regularly
        • Inform them of new initiatives and opportunities to give
        • Send them clippings regarding their own interests, along with a personal note (sports, theater, music, literature), and certainly if/when they or their company is mentioned in the news
        • Take them out to events they will enjoy
        • Feature them in your internal publications
    • Strategy #4…continued… Wall Street Journal – 3/30/09 Source: Giving USA Spotlight - 2008
        • Invite them to speak or give a seminar in their area of expertise to your other prospects, donors, administration
        • Ensure that ORGANIZATION leadership makes regular periodic contact after they meet with the prospect
        • See things through the prospects eyes:
          • Determine his needs and desires
          • Figure out his concerns
          • Probe for giving clues
          • Understand what he’s willing to invest in
        • Place prospect on board or committee
        • Introduce prospect to people who have benefited from your programs
        • Ask prospect to host a high-end reception
        • Visit with prospect at home, office, restaurant Note: this is a VISIT, not a meeting or an appointment. A meeting is for negotiating contracts and an appointment is for the dentist. A visit is pleasant, positive, happy, and an opportunity for the donor to invest in changing lives.
    • Strategy #5 Wall Street Journal – 3/30/09 Source: Giving USA Spotlight - 2008
      • Be rigorous about prospect research
        • You don’t have the time or resources to chase ghosts
        • You must determine the prospect’s
          • Giving capacity
          • Inclination to give (in general and your org in particular)
          • Links/connections/relationships
          • (WealthEngine is the best tool for this–subscription-based)
        • Your best donors are already in your database
        • Time spent researching and qualifying a prospect is time saved in pursuing the unqualified
        • Just because someone is wealthy doesn’t mean they will give you anything
        • 90% of the money comes from 10% of the people
    • Strategy #5…continued Wall Street Journal – 3/30/09 Source: Giving USA Spotlight - 2008
      • Be rigorous about prospect research
        • Researching Individuals
          • Ziggs.com
          • Zoominfo.com
          • Zabasearch.com
          • AMA Physician Select
          • AIM Docfinder
          • Martindale & Hubbell (Lawyers)
          • FindLaw (Lawyers)
          • Hoovers
          • Federal Election Commission
    • Strategy #5…continued Wall Street Journal – 3/30/09 Source: Giving USA Spotlight - 2008
      • Be rigorous about prospect research
        • Real Estate valuations…
          • NETRonline.com
          • Zillow.com
          • Yahoo Real Estate Home Values
    • Strategy #5…continued Wall Street Journal – 3/30/09 Source: Giving USA Spotlight - 2008
      • Be rigorous about prospect research
        • DonorSearch.net – records of previous gifts
        • Biography.com
        • Salary.com
        • Guidestar
        • NOZASearch.com
        • Foundationcenter.org
        • Publicrecordcenter.com
    • Fundraising 101…Remember? Wall Street Journal – 3/30/09 Source: Giving USA Spotlight - 2008
      • Salary represents 10 percent of net worth
      • Stock holdings represent 30-35 percent of net worth
      • Real estate holdings represent 20-25 percent of net worth
      • Prospects have the capacity to give about 5 percent of net worth (or known assets) to charity (in a single gift or over five years)
      • An annual fund gift represents about 10-20 percent of a prospect’s major gift capacity
      • Prospects have the capacity to give 10 percent of the value of stock options of $1 million or more to charity
    • Conclusion Wall Street Journal – 3/30/09 Source: Giving USA Spotlight - 2008
      • The best time to raise money is when you need it
      • The reasons people give, do not change during a recession
      • Philanthropy will decline, but not dramatically
      • We need to work much smarter than before
      • We’re here to help:
      • Rob Shechter – 917-226-3997 [email_address]