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

What Smart Faith Based Nonprofits know about raising money during challenging times - AGENDA

• Introductions• The Recession & Your Org•Ideas that work

•Donor Relations•Annual Giving•Major Gifts

•Questions/Discussion

• Your organization and the recession– Knowing your constituencies

• How are they affected; regionally & individually• Be ‘donor centered’

– We’ll be ok, how are you?– Your donors, members, and prospects do not stop caring about

your mission during a recession.• Compassionately manage your relationships

What Smart Faith Based Nonprofits know about raising money during challenging times

Your organization & the recession

• Economic downturns are temporary/act accordingly– But build in an understanding of these concerns into your

communications plans • How does the tough economy impact you?

– Internal & Outreach• Budget freeze/cut• Program reductions/elimination• Hiring Freezes• Staff Layoffs

Ideas that Work – Donor Relations

• Orgs tend to NOT look at our donor communications because:– Narrow view on communications directly tied to fundraising– Silo approach that compartmentalizes communications– Willingness to not account for or even seek the donors opinions of all our

communications streams

• Simple solutions to employ– Determine & Chart average number of contacts from direct mail, telephone, email

– the different pieces constituents get each month for entire year on the whole!– Analyze content & purpose of each piece: cultivation, information etc.– Overlap? How can we consolidate or eliminate– Survey your donors via email, direct mail or phone, what is important or not– Implement a plan that reflects what the donor wants/segmentation analysis– Cost savings on direct mail costs : Postage rates go up May 11 for npo’s– Spending $ in different areas: online, benchmarking, email – look at as

acquisition costs

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

Appeals

E-News

Renewal

Upgrade

Ideas that Work – Holistic Planning

Ideas that Work – Holistic Planning

An Integrated Strategy

In Person Meetings

Phone

Events

BlogsText MessagingSocial Networking Sites

Your Web SiteE-Mail

PrintOther Tools

Ideas that Work – Annual Giving

• How are we perceived?– Are we seen as efficient?

• Can we solicit loyal donors more efficiently?

• Are we forthright w/donors in partners to reduce admin overhead?– Positive message to fit their needs

• Is the annual fund a one-year-at-a-time “thank goodness we made the goal” enterprise?

– Are we surprised when donor retention is low?– 171 faith based organizations lost $188,000 last year from lapsed AF

• Donor loyalty is at the foundation of most ultimate giving– Why is donor retention NOT the chief goal of the annual fund?– Is it worth testing a limited solicitation program asking LESS often but encourages

and acknowledge of donor loyalty at any gift level?

• Are we over soliciting?– Budget savings, respect, major gift work

Ideas that Work – Ok so far….

• Review our theme so far:– Fundraising does not stop during a recession– Most people will not stop giving – some may stop or reduce– Great time to be smart, effective and efficient– Use these strategies when times are good

Ideas that Work – Major Giving

• Needs to continue

• Don’t assume that people can’t give– What’s the point?

• Major giving is about cultivation and the building of a relationship with donors or prospects

• The relationship needs to continue• Don’t withdraw – you will jeopardize long term

lifetime giving potential

Ideas that Work – Major Giving

• Take the initiative - draft a document detailing your planning & prep for the recession:

– Explanation of how we will meet our mission goals, and an honest assessment of what we may need to reduce or cut

– Efforts to trim expenses, especially partnering w/donors to cut fundraising costs

• Be donor centric • Statement of ongoing gratitude for their loyalty & support

• Thank you calls• Check in calls/emails

• Ask for their input• Get your major donors to your site for a visit or volunteer• Don’t operate from a position of desperation

Ideas that Work – Conclusions/Questions

• Positive actions you can take now to put you in a better position now and in the future– 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