Stewardship As Revenue Enhancer


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One of our client organizations recently discovered that more than 80% of their first time donors did not renew their support. We showed them that research has shown that it costs as much as 4.5 times more to acquire a first time donor as to renew an existing donor. Through an interactive examination of best practices in gift acknowledgement, recognition and donor cultivation, we will explore the value of stewardship as a revenue enhancer.

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Stewardship As Revenue Enhancer

  1. 1. The Artful Solicitor – Stewardship as Revenue Enhancer David A. MerskyA Service Of: Sponsored by:
  2. 2. Affordable collaborative data management in the cloud.A Service Of: Sponsored by:
  3. 3. Today’s Speaker David A. Mersky Founder and Managing Director, Mersky, Jaffe & AssociatesAssisting with chat questions: Hosting:April Hunt, Nonprofit Webinars Sam Frank, Synthesis PartnershipA Service Of: Sponsored by:
  4. 4. The Artful SolicitorStewardship as Revenue Enhancer August 31, 2011
  5. 5. The Case of… …the Disillusioned and Confused Prospects©2011 Mersky, Jaffe & Associates
  6. 6. The Case of… …the Disillusioned and Confused Prospects• You are the new CEO of NCSC• Dinner with $1,000 AF “under-givers”• Predecessor lavished time on these “alumni”• Proposal for $250,000 named fund in sustainable energy went nowhere• Pleasant evening• Predecessor misread interest and status©2011 Mersky, Jaffe & Associates
  7. 7. The Case of… …the Disillusioned and Confused ProspectsTo your horror you learn, the donors – Have no interest in sustainable energy program – Chagrined and dismayed by proposal – Interest in NCSC, but business requires all cash and prevents major gift now, and BTW, – “What happened to $25,000 we gave last year for which we received no acknowledgement, plan for use nor recognition?”©2011 Mersky, Jaffe & Associates
  8. 8. The Case of… …the Disillusioned and Confused ProspectsThe donors – are a married couple, ages 60 and 62; – had never made a major gift (i.e., above $1,000) before the $25,000; and – have no children.©2011 Mersky, Jaffe & Associates
  9. 9. The Case of… …the Disillusioned and Confused Prospects What do you do after the dinner?©2011 Mersky, Jaffe & Associates
  10. 10. The State of Philanthropy in America Today: A View from the Field ©2011 Mersky, Jaffe & Associates
  11. 11. The number of 501(c)(3)organizations 2001–2010
  12. 12. Total giving as a percentage of Gross Domestic Product, 1970–2010Data are rounded.
  13. 13. 2010 charitable givingTotal = $290.89 billion
  14. 14. Total giving, 1970–2010
  15. 15. Types of recipients of contributions, 2010 Total = $290.89 billion
  16. 16. Q:How do you get your piece of the pie?©2011 Mersky, Jaffe & Associates
  17. 17. A: A Strong Team… because leadership trumps all©2011 Mersky, Jaffe & Associates
  18. 18. Financial Resource Development: An Exceptional Leader’s Tasks and Responsibilities ©2011 Mersky, Jaffe & Associates
  19. 19. Leaders make their own philanthropic investment • It makes a difference • It empowers them to serve as an advocate and ambassador • It enhances their credibility to ask others to invest©2011 Mersky, Jaffe & Associates
  20. 20. Leaders thank donors • Acknowledge contributions in personally written letters and calls • Tell donors the value of their investment • Recognize donors at events personally©2011 Mersky, Jaffe & Associates
  21. 21. Leaders help make connections• Review existing prospects and donors• Identify others from communal, professional or personal contacts ©2011 Mersky, Jaffe & Associates
  22. 22. Leaders mentor potential donors • Educate and encourage prospects to support the congregation • Host a meeting at home for potential major donors • Conduct one-on-one encounters to engage potential donors©2011 Mersky, Jaffe & Associates
  23. 23. Leaders solicit their peers• People give to people• Approach people with whom they are comfortable• By asking others to give, leaders fulfill their responsibility to provide financial resources• Build a community of donors and funders©2011 Mersky, Jaffe & Associates
  24. 24. A:• A Strong Board• The Development Cycle: The Context for Stewardship ©2011 Mersky, Jaffe & Associates
  27. 27. The Development Cycle Identification Renewal Research Stewardship Planning Solicitation Cultivation©2011 Mersky, Jaffe & Associates
  28. 28. Create Lifelong Donors• It takes 4.5 times the effort and dollars to acquire a new donor as it does to keep one.• Retain donors with effective development and stewardship, systematic procedures, failsafe annual fund program.©2011 Mersky, Jaffe & Associates
  29. 29. Create Lifelong Donors• Securing donors is obviously the first step.• But, then – acknowledge promptly and effectively – show appreciation regularly and sincerely – give priority to winning the donor’s heart and mind to the cause.• Create a culture of giving at your organization©2011 Mersky, Jaffe & Associates
  30. 30. Stewardship=Success1. A systematic plan – for acknowledgment and stewardship – in the form of a manual – reviewed annually2. Seven ways or more to acknowledge and recognize your donors©2011 Mersky, Jaffe & Associates
  31. 31. Stewardship=Success3. Acknowledgment letters – reviewed and changed at least once a year – first acknowledgment letter sent out in 48 hours4. Accountable to donors – By reporting outcomes of gift to • clients • program • organization©2011 Mersky, Jaffe & Associates
  32. 32. Stewardship=Success 4. (cont.) Accountable to donors – send emails from organization’s beneficiaries – staff members or volunteers systematically call and thank donors – publish an Annual Report with Honor Roll of donors – number of years of continuous giving©2011 Mersky, Jaffe & Associates
  33. 33. Stewardship=Success5. Development staff and/or volunteer leadership – plan for regular stewardship calls or “moves” – send a letter or newsletter to a small, select list of major gift donors, prospects, and influentials – send all donors a newsletter with stories about donors that gives recognition for their gifts©2011 Mersky, Jaffe & Associates
  34. 34. Stewardship=Success5. (cont.) Development staff and/or volunteer leadership – actively discuss stewardship activities and annually review plans and activities – budget for stewardship activities – gathered information from donors in the past 24 months (e.g., conducted a donor survey or donor focus groups)©2011 Mersky, Jaffe & Associates
  35. 35. Stewardship=Success5. (cont.) Development staff and/or volunteer leadership – survey lapsed donors to determine why they might have dropped out – proactively communicate with donors about issues that may be unpleasant or sensitive©2011 Mersky, Jaffe & Associates
  36. 36. Stewardship=Success6. Do you – recognize donors for their cumulative giving – provide public donor recognition through such things as gift clubs, wall of honor, signage, dinners, events, etc. – recognize those who have made a planned or testamentary gift©2011 Mersky, Jaffe & Associates
  37. 37. Stewardship=Success6. (cont.) Do you – monitor what comparable organizations do in the area of stewardship – provide briefings to staff©2011 Mersky, Jaffe & Associates
  38. 38. Working in the Third Sector, enables us toengage with others • to build community • to meet a bold challenge • to make a difference in the world • to save and change lives
  39. 39. Mersky, Jaffe & Associates Financial and Human Resource Development Solutions for Nonprofits 800.361.8689 413.556.1074 fax OFFICES IN BOSTON AND NEW YORK©2011 Mersky, Jaffe & Associates
  40. 40. Find listings for our current season of webinars and register at: NonprofitWebinars.comA Service Of: Sponsored by: