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What Smart Faith Based Groups Know


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What Smart Faith Based Groups Know

  1. 1. 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
  2. 2. What Smart Faith Based Nonprofits know about raising money during challenging times - AGENDA <ul><li>Introductions </li></ul><ul><li>The Recession & Your Org </li></ul><ul><li>Ideas that work </li></ul><ul><ul><li>Donor Relations </li></ul></ul><ul><ul><li>Annual Giving </li></ul></ul><ul><ul><li>Major Gifts </li></ul></ul><ul><ul><li>Questions/Discussion </li></ul></ul>
  3. 3. <ul><li>Your organization and the recession </li></ul><ul><ul><li>Knowing your constituencies </li></ul></ul><ul><ul><ul><li>How are they affected; regionally & individually </li></ul></ul></ul><ul><ul><ul><li>Be ‘donor centered’ </li></ul></ul></ul><ul><ul><ul><ul><li>We’ll be ok, how are you? </li></ul></ul></ul></ul><ul><ul><li>Your donors, members, and prospects do not stop caring about your mission during a recession. </li></ul></ul><ul><ul><ul><li>Compassionately manage your relationships </li></ul></ul></ul>What Smart Faith Based Nonprofits know about raising money during challenging times
  4. 4. Your organization & the recession <ul><li>Economic downturns are temporary/act accordingly </li></ul><ul><ul><li>But build in an understanding of these concerns into your communications plans </li></ul></ul><ul><li>How does the tough economy impact you? </li></ul><ul><ul><li>Internal & Outreach </li></ul></ul><ul><ul><ul><li>Budget freeze/cut </li></ul></ul></ul><ul><ul><ul><li>Program reductions/elimination </li></ul></ul></ul><ul><ul><ul><li>Hiring Freezes </li></ul></ul></ul><ul><ul><ul><li>Staff Layoffs </li></ul></ul></ul>
  5. 5. Ideas that Work – Donor Relations <ul><li>Orgs tend to NOT look at our donor communications because: </li></ul><ul><ul><li>Narrow view on communications directly tied to fundraising </li></ul></ul><ul><ul><li>Silo approach that compartmentalizes communications </li></ul></ul><ul><ul><li>Willingness to not account for or even seek the donors opinions of all our communications streams </li></ul></ul><ul><li>Simple solutions to employ </li></ul><ul><ul><li>Determine & Chart average number of contacts from direct mail, telephone, email – the different pieces constituents get each month for entire year on the whole! </li></ul></ul><ul><ul><li>Analyze content & purpose of each piece: cultivation, information etc. </li></ul></ul><ul><ul><li>Overlap? How can we consolidate or eliminate </li></ul></ul><ul><ul><li>Survey your donors via email, direct mail or phone, what is important or not </li></ul></ul><ul><ul><li>Implement a plan that reflects what the donor wants/segmentation analysis </li></ul></ul><ul><ul><li>Cost savings on direct mail costs : Postage rates go up May 11 for npo’s </li></ul></ul><ul><ul><li>Spending $ in different areas: online, benchmarking, email – look at as acquisition costs </li></ul></ul>
  6. 6. 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
  7. 7. 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
  8. 8. Ideas that Work – Annual Giving <ul><li>How are we perceived? </li></ul><ul><ul><li>Are we seen as efficient? </li></ul></ul><ul><li>Can we solicit loyal donors more efficiently? </li></ul><ul><li>Are we forthright w/donors in partners to reduce admin overhead? </li></ul><ul><ul><li>Positive message to fit their needs </li></ul></ul><ul><li>Is the annual fund a one-year-at-a-time “thank goodness we made the goal” enterprise? </li></ul><ul><ul><li>Are we surprised when donor retention is low? </li></ul></ul><ul><ul><li>171 faith based organizations lost $188,000 last year from lapsed AF </li></ul></ul><ul><li>Donor loyalty is at the foundation of most ultimate giving </li></ul><ul><ul><li>Why is donor retention NOT the chief goal of the annual fund? </li></ul></ul><ul><ul><li>Is it worth testing a limited solicitation program asking LESS often but encourages and acknowledge of donor loyalty at any gift level? </li></ul></ul><ul><li>Are we over soliciting? </li></ul><ul><ul><li>Budget savings, respect, major gift work </li></ul></ul>
  9. 11. Ideas that Work – Ok so far…. <ul><li>Review our theme so far: </li></ul><ul><ul><li>Fundraising does not stop during a recession </li></ul></ul><ul><ul><li>Most people will not stop giving – some may stop or reduce </li></ul></ul><ul><ul><li>Great time to be smart, effective and efficient </li></ul></ul><ul><ul><li>Use these strategies when times are good </li></ul></ul>
  10. 12. Ideas that Work – Major Giving <ul><li>Needs to continue </li></ul><ul><li>Don’t assume that people can’t give </li></ul><ul><ul><li>What’s the point? </li></ul></ul><ul><ul><ul><li>Major giving is about cultivation and the building of a relationship with donors or prospects </li></ul></ul></ul><ul><ul><ul><li>The relationship needs to continue </li></ul></ul></ul><ul><ul><ul><li>Don’t withdraw – you will jeopardize long term lifetime giving potential </li></ul></ul></ul>
  11. 13. Ideas that Work – Major Giving <ul><li>Take the initiative - draft a document detailing your planning & prep for the recession: </li></ul><ul><ul><li>Explanation of how we will meet our mission goals, and an honest assessment of what we may need to reduce or cut </li></ul></ul><ul><ul><li>Efforts to trim expenses, especially partnering w/donors to cut fundraising costs </li></ul></ul><ul><li>Be donor centric </li></ul><ul><ul><li>Statement of ongoing gratitude for their loyalty & support </li></ul></ul><ul><ul><ul><li>Thank you calls </li></ul></ul></ul><ul><ul><ul><li>Check in calls/emails </li></ul></ul></ul><ul><li>Ask for their input </li></ul><ul><li>Get your major donors to your site for a visit or volunteer </li></ul><ul><li>Don’t operate from a position of desperation </li></ul>
  12. 14. Ideas that Work – Conclusions/Questions <ul><li>Positive actions you can take now to put you in a better position now and in the future </li></ul><ul><ul><li>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 </li></ul></ul>