Waking Up Your Annual Fund 2009
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This was presented at the 2009 National Philanthropy Day Educational Workshops for AFP Northeast Indiana. Topic is how to improve your annual fundraising results by focusing on some basic keys to success, evaluating results and focusing on donor retention.
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Waking Up Your Annual Fund 2009
- 1. Waking Up Your Annual Fund Consultants of Philanthropy ● Fund Raising ● Training Robert Croft, CFRE November 12, 2009 AFP Northeast Indiana
- 2. It’s Been the Best Year Ever!
- 7. How are You Doing?
- 8. How are You Doing? Tough, But Making It It’s Bad, Very Bad! Breaking Even! Raising More!!!
- 15. Right Attitude
- 16. Do you want to stay in the stinky pool?
- 30. Approach Report
- 36. Focus on Effective Strategies
- 44. Wake Up Your Annual Fund, Surf’s Up
Editor's Notes
- We are not going to be discussing how to tweek your direct mail copy, or newsletter, or how to run a unique special event, or share some innovative new fundraiser that will make you the envy of the fundraisers everywhere. As a fundraiser, I have written many direct mail pieces, and newsletters and special events and done many face to face solicitations…ran the annual fund etc. So I can discuss those things, and certainly doing those things well impacts fundraising…. BUT, what I want to do today, is give you a broader understanding of your role as a fundraiser, what things impact how well you raise dollars. In fact, you can have the best dang direct mail piece on the face of the planet, or run the greatest special event this town has seen, but without the “7 Keys” to success I am going to share with you… your annual fund will stay flat year over year or worse.
- 365-day development program that is the primary source of operating funds
- Notice That in a typical year 40% of charities DO NOT raise more money. So normally, almost half of all charities don’t necessarily do fundraising well!! Why do some charities always seem to do well regardless of outside environment? Some charities are doing well right now or dare I say, “maybe even better”. MY GOAL TODAY IS TO SHOW YOU THAT YOU CAN DO WELL REGARDLESS!
- Surveyed 43 Institutions (mostly independent schools, and higher ed.) on Fiscal Year. Half reported decrease in annual fund, while half saw no change or increase.
- Do expectations of fundraisers matter? Does attitude or mindset affect ability to raise money? ABSOLUTELY!!!! That Brings me to KEY #1 to Waking Up Your Annual Fund…..
- Share a bit about experiences with attitude….CEO, Board, Volunteers, etc.
- Video of wave pool in Japan…filled to the brim!! I’m not sure this is what we mean by a shrinking Donor Pool? Do you want to stay in the stinky pool or move to better fundraising waters?
- Stock Market dropped 90%, charitable giving declined by 20% (from 1931-1933) BUT look at what happened after 1933… Anecdotally locally…smaller gifts but more donors Emotional Connection – “gave what they could at lowest point” …possible lifetime donors Pattern of giving in every economic downturn since is similar Bottom Line: During tough times, Americans dig deeper to help those less fortunate than themselves!
- Keep a focus on the fundamentals and long term Keep a focus on the mission of the organization
- You need a good foundation or support for an annual fund to thrive.
- Even with a good foundation and support structure, annual fund programs can be flat.
- This is your real job….CHIEF BUCKET OFFICER! Acquisition and Retention go hand in hand…. Typically lose 30% of donor base annually! What does that mean for Acquisition? Maintaining the Status Quo is picking up as many new donors as you loose each year. NO GROWTH!!! No wonder only 60% of charities see growth in annual support in a normal year!! Losing 5 donors for 6 they obtain. NO wonder we are all so tired…. Successful fundraising programs understand this dynamic.
- See what you are doing well Find the biggest holes in your bucket Goal is to focus greater effort and resources at areas with most potential What do I mean by Analyzing….
- GROUP EXERCISE – 3-4 to a group, look at the report, New donors, upgrades, downgrades, lapsed Where can you improve? Remember the bucket? Also monitor donor segments ( churches, monthly donors, presidents circle, etc) NEED ETAP DEFINITIONS
- What approaches are cost efficient? CPDR Which are wasting your resources? Where can you improve?
- Know motivations for giving…first time and repeat gifts. What caused them to give in the first place…what do they respond to most? What programs have the most loyal support?
- HERE ARE SOME OPPORTUNITIES FOR DESIGNATED GIVING: What are your donors responding to most?
- Create an acquisition plan and budget Communications, Website, Direct Mail, Peer to Peer, Special Events, etc Focus on Retention efforts Stewardship, Renewal Solicitations, Relationship Building Focus on building relationship and upgrading
- I’m going to share what in my opinion are the most effective strategies (or TOP Strategies) for increasing annual support in the current economic climate Depending on the weak areas you find in your shop
- Recruiting new donors can cost up to 10 times more Acquisition of new donors is dismal in current environment! You must continue to acquire new donors, but donor loyalty is King for Growing your annual fund.
- Current and former donors are your best prospects
- How the first gift is handled (no matter what size) will impact donor loyalty Appropriate and timely acknowledgement 24-48 hour turnaround As personal as possible Appropriate to size of gift Thank you should be a “thank you” not another solicitation Need to clearly communicate how funds were used prior to asking again Be sure calendar staggers appeals and newsletters USE EMAIL Renewal – You loose a 50% of cash donors after first gift – Could have been one-time, special purpose? Many LYBUNT/SYBYNT Strategies…lift notes, phone calls
- New Donors need to be treated differently Typically, get thank you, dropped into regular mailing and renewal cycle You must BUDGET for Retention
- Quickly list You CAN raise Major gifts for annual support…even create a gift chart for annual support Provide example of $7,000 annual gift…personal visit from CEO at Whites You CANNOT upgrade current donors IF YOU DO NOT ASK Them to increase their support. EX: Rainbow Acres letter to major donor each year (donor preference) Monthly, automated donors will stay with you 5-7 times longer than cash donors. In fact, during recession, automated monthly givers have maintained giving…client – June 09 Finance Statement showed major decrease in every donor segment EXCEPT monthly donors! Find ways to engage donors more in the organization.