2. Philosophies in Fundraising
• 20+ years in the trenches
• We live in a time of abundance
• Stop thinking people are poor
• Don’t give them a way out – recession/busy/other
interests
• People want to be heroes/do good – that’s your job
• People are giving money away anyway, might as
well be to you
• Stop shopping for shoes in a bakery
• Get out of your comfort zone – don’t stay safe!
2
3. We Are Powerful
• 83% of donations from individuals yet focus elsewhere
• 2004 = $240 billion
• 2011 = $306 billion = 27%
• Is that a lot of money? What does it buy?
1,530,000 Ferraris
838 Busch Stadiums
6.8 billion tickets to the Baldknobbers
EVERY YEAR
• What do we have to offer?
3
1 thing
4. We Are Resilient
Glorious 1980’s
unrestricted $
Who took the fun away?
we did
how?
We put up with whims and trends and natural
disasters
but we keep on going
why? Nobody else does what we do
4
5. But Are We Using Our Muscle?
Outcomes on steroids
unrealistic expectations
overpromising – everyone loses
Collaborations as mandatory
corporate mergers?
Threat of stripping tax deductibility
Trump challenge to Obama
charities held hostage to politics
5
6. My Challenges to You for 2013
• Make your voice heard
• Engage in meaningful conversations with
donors
• It’s not what you have done, it’s what you
haven’t done – broaden your thinking
• Engage in intentional fundraising
Capture research-based best practices
Embrace transformational philanthropy
6
7. Where Are You?
Planned
% %
% Major %
Repeat-Increasing
% %
Repeat
% %
Annual
% %
100 % 100 %
7
8. Where Is Your Energy?
Donors are at
the level Planned Proactive
where we put Fund Raising
them
Major
Repeat-Increasing
Passive Fund Repeat
Raising
Annual
Change your donor behavior by changing yours! 8
9. Intentional Process
Finding Nurturing
Goal: Establish two healthy pools of prospects 9
10. No Silver Bullet, Sadly
• No new development director will save you
• No new board member will transform you
• Fundraising is a team sport and everyone
has talent
Build that into your culture and make a
paradigm shift
Stop any animosity between program and
development
10
11. So Much Proven Stuff – Use It!
• Science of Giving
outlines actual $ increases and other techniques
• 100% emotion
pity
anger
• Don’t speak to the masses
paint the picture of the one
Pale male
• Study responses from the natural disasters
issue of ‘proximity’
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12. Study Behaviors – NOT Demographics
Casual High
Repayer
Giver Impact
Faith See the Personal
Based Difference Ties
12
Source: Money for Good, May 2010
13. Market Opportunity by Segment ($B)
New Donations Switchable Donations
Repayer $3.40 $2.20
Casual Giver $4.00 $5.90
High Impact $3.00 $3.00
Faith Based $4.00 $2.60
See The Difference $1.60 $3.50
Personal Ties $3.30 $8.40
13
Source: Money for Good, May 2010
14. Get Ready for
Transformational Philanthropy
• Taste of that outcome – different era
• Social media for instant impact
• Traditional vs. transformational
Meth epidemic in Montana
old way
new way
Barron’s – passive check writers vs. ‘hyperfocused
investors’
Workable ideas – one goat!
Smithsonian article
no cars - no house - phone is their universe
How are we responding as nonprofit organizations?
Are we thinking too small? Mired in tradition?
the new philanthropists aren’t
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15. My Predictions
• Predictive analytics – banks use it, why not us (past
giving single largest factor in future giving, or is it?)
• Focusing on process will get more results than
focusing on results first
• Your leadership can change your culture
• Higher competition for programs and funds – all is
fair in love, war and fundraising
• Collaborations and mergers
• Goodbye to old ways
• Entrepreneurship and innovation will become
traditional philanthropy
15
DEMOGRAPHICS THAT ARE SOMETIMES USE, SUCH AS ZIP CODES, ARE NOT CRITICAL PREDICTORS OF BEHAVIORThe Money for Good survey and research discovered there are 6 prominent donor behaviors: Repayer, Faith Based, Casual Giver, See the Difference, High Impact, and Personal Ties. Repayers Support Organizations that impact them or a loved oneFaith Based Give to Organizations that fit with their religious beliefsCasual Givers Primarily give to well known nonprofits through a payroll deduction at workSee the Difference generallyGive to local charities where they feel they can make a differenceHigh Impact givers Support causes that seem overlooked by othersPersonal Ties donors Give when they are familiar with the people within the organizationThe most advisable strategy is to pick 2 core groups to focus on, then prioritize your investments based on what will drive donor behavior. Understanding the differences between these core groups can help your organization better understand how to manage and approach these prospective donors.
SUFFICIENT MARKET OPPORTUNITY EXISTS IN EACH SEGMENT!!! And each segment has its own Pro’s/Con’s. For example: The Personal Ties segment provide the greatest opportunity for Switchable Donations to your organization. However, they are also the highest risk segment because they generally leave when the people they have ties with leave the organization.You must remember that you Cannot be everything to everyone – choose segments to focus your efforts on!!!Which donor behavior segments make up the 20% that produce 80% of the MONEY for your organization?
