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Sqeezing Blood From A Turnip: Fundraising in Tough Times

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Sqeezing Blood From A Turnip: Fundraising in Tough Times

  1. 1. How to Squeeze Blood from a Turnip: Fundraising in Tough Times 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 December 10, 2010 www.slideshare.net/rncroft
  2. 2. Disclaimer: “You can't squeeze blood from a turnip” <ul><li>Meanings: </li></ul><ul><ul><li>A turnip cannot be coaxed, squeezed, or cajoled into producing blood. All efforts at obtaining blood from this vegetable will be futile. - Wikipedia </li></ul></ul><ul><ul><li>You can only get from people what they are willing or able to give. The American Heritage® New Dictionary of Cultural Literacy, Third Edition . </li></ul></ul>
  3. 3. Is this Your Approach?
  4. 4. How is Your Fundraising?
  5. 5. Don’t Panic! <ul><li>“ The strategic and tactical decisions made by charities will have more influence on their fortunes than will the recession itself. Charities have more control than they think they do, as long as they FOCUS on the fundamentals of their programs, do not panic and FOCUS on the long term.” </li></ul><ul><li>- Advancing Philanthropy, Jan/Feb 2009 </li></ul>
  6. 6. Today’s Objectives <ul><li>Current State of Fundraising </li></ul><ul><li>Why Donors Give/Don’t Give </li></ul><ul><li>Identify 3 Turnips You Must Squeeze (or slice) to be successful at fundraising </li></ul>
  7. 7. State of Fundraising: Cautious Optimism <ul><li>Joint survey of 5,000 nonprofits released last week 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>
  8. 8. State of Fundraising: Cautious Optimism <ul><li>The 2010 Holiday Giving Survey conducted by Edge Research on behalf of Convio, reveals: </li></ul><ul><ul><li>74% of adults plan to give this holiday season. </li></ul></ul><ul><ul><li>Average total gifts of $281. </li></ul></ul><ul><ul><li>Online donations -$6 billion, 30% > than last Dec. </li></ul></ul><ul><ul><li>Giving is emotional. </li></ul></ul>
  9. 9. 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>
  10. 10. Why do people give?
  11. 11. 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>
  12. 12. 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>
  13. 13. Fundamentals Matter <ul><li>Three broad areas (or Turnips) that are the difference between mediocre fundraising and successful fundraising </li></ul><ul><ul><li>Culture of Philanthropy </li></ul></ul><ul><ul><li>Effective Communications </li></ul></ul><ul><ul><li>Be “Donor Centered” </li></ul></ul>
  14. 14. Turnip #1 <ul><li>Culture of Philanthropy </li></ul>
  15. 15. Culture of Philanthropy <ul><li>Starts at the top </li></ul><ul><ul><li>Director / CEO </li></ul></ul><ul><ul><li>Board </li></ul></ul><ul><li>Belief in the Mission </li></ul><ul><ul><li>Would you buy what you are selling? </li></ul></ul><ul><ul><li>Passionate </li></ul></ul><ul><li>No Silo mentality </li></ul><ul><ul><li>Entire org understands importance of fundraising </li></ul></ul><ul><li>Transparency/Accountability </li></ul>
  16. 16. Turnip #2 <ul><li>Effective Communications </li></ul>
  17. 18. Effective Communications <ul><li>Your stories should be compelling </li></ul><ul><ul><ul><li>UNFORGETTABLE </li></ul></ul></ul><ul><ul><ul><li>Tell me your story! </li></ul></ul></ul>
  18. 19. Unforgettable!
  19. 20. Effective Communications <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>
  20. 21. Bad, Bad, BAD…. <ul><li>If you can substitute the name of any other charity in your communications </li></ul><ul><li>If “needs” are focused more on organization, and economic woes than on those you serve </li></ul><ul><li>No specific call to action </li></ul><ul><li>No clear, easy way to respond </li></ul>
  21. 22. Turnip #3 <ul><li>Be Donor-Centered </li></ul>
  22. 23. Be Donor-Centered <ul><li>Donors are human beings </li></ul><ul><li>Need to be engaged </li></ul><ul><li>Connect emotionally to your cause/story </li></ul><ul><li>Rationally evaluate your credibility </li></ul><ul><li>Need to be Asked </li></ul>
  23. 24. Donors are Human Beings <ul><li>Desire warm acknowledgment </li></ul><ul><ul><li>Donors appreciate being appreciated </li></ul></ul><ul><li>Expect stewardship </li></ul><ul><ul><li>Want to know their gift was put to good use </li></ul></ul><ul><li>Build Relationships </li></ul><ul><ul><li>Create meaningful experiences (it should be a pleasure to be a donor) </li></ul></ul>
  24. 25. Donor Cycle
  25. 26. Conclusion <ul><li>Successful fundraising in good times and bad is about : </li></ul><ul><ul><li>Mastering fundamentals </li></ul></ul><ul><ul><li>Creating a culture of philanthropy </li></ul></ul><ul><ul><li>Communicating effectively </li></ul></ul><ul><ul><li>Treating donors like human beings </li></ul></ul>
  26. 27. 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

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