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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 to give? What are the reasons donors stop giving? Join us as we address these questions and more!

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Resuscitating Your Budget: Moving Donors to Give

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

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