Resuscitating Your Budget: Moving Donors to Give

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

Resuscitating Your Budget: Moving Your Donors to GiveRobert Croft, CFRE, Partner/Consultant, Crandall, Croft & Associates andJennifer Renner, Development Supervisor, CANI

AFP Northeast Indiana Chapter

About Us



Some Assumptions…

You have donors– In a database

You have a budgetYou are already doing some fundraising



First a Quick Survey about You



Does your fundraising program need CPR?



Don’t Panic!



Session Objectives

Why do people give to charity and stop giving?

How many times should you ask?How do you build donor loyalty?How do you get donors to give even

more?



State of Fundraising: Cautious Optimism

Joint survey of 5,000 nonprofits released in December by the Nonprofit Research Collaborative (includes AFP):– 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.

– About 37% reported a decrease in giving so far in 2010, compared with 51% a year ago.



Is there EVER a “Good Time” to Ask?



Giving USA 2010

Total Giving in 2009 was $303.75 Billion

83% of all giving is from Individuals (incl. Bequests)



Why do people give?



Affluent Donors – BoA 2010 Study

Top motivations for giving were: – Being moved by how their gift can make a

difference (72%).– Feeling financially secure (71%).– Giving to an organization that will use their

donation efficiently (71%).– Supporting the same causes or organizations

annually (66%).

2010 Bank of America Merrill Lynch Study of High Net Worth Philanthropy



Affluent Donors – BoA 2010 Study

Top reasons for why donors stopped giving: – Too frequent solicitation/organization asked for

inappropriate amount (59%).2008 #1 Reason was “no longer feel connected to org”

– Decided to support other causes (34%).– Household circumstances changed (e.g.,

financial, relocation, employment) (29%).– Organization changed leadership or activities

(29%).

2010 Bank of America Merrill Lynch Study of High Net Worth Philanthropy



How Do You Move Donors?

Treat Donors as People– Take time to cultivate relationship

Make Appropriate AsksSend Consistent, Meaningful

CommunicationsKeep Donors Engaged/Giving



Donor Cycle

Builds Loyalty



Loyalty starts with the 1st gift

AcknowledgementHave a new donor process

– Welcome letter/packet– Thank you call– Credibility letter (within 2 months)– Newsletter– Best ever renewal package



Deepen Donor Relationship

Phone callPersonal visit

– Ask questions and listen well– Learn donor interests

Tour of facility/organizationConnect with other similar donors

– Social Media, Special Events

Report gift usePlug in to volunteer opportunities



Don’t Over-Solicit



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 BurkThanks! A Guide to Donor-Centered Fundraising



Communicate



Effective Appeals

Emotional – Puts a “face” on your serviceCompelling – Shows a valid needResponsive – Clear call to actionEasy – For donors to respondMultichannel – Meets donors where they are



Give ‘em What They Want

2011 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DECGroup A Newsltr Letter

from a child

Newsltr Appeal Newsltr Back to School Report

Appeal Newsltr Thank You Card

EOY Ltr

Group B Newsltr Program Recap Report

Newsltr Appeal Newsltr Letter from the President


EOY Ltr

Group C Newsltr State of the Org Ltr

Newsltr Appeal Letter with photos

Newsltr Appeal Newsltr Thank You Card

EOY Ltr

Group D Newsltr Letter from X

Newsltr Appeal Newsltr Private event


EOY Ltr

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



The Fundraising Challenge

The Fundraising “Bucket”– Acquisition and Retention

Nonprofits lose 5 donors for every 6 they obtain - Fundraising Effectiveness Project

A 10% increase in donor retention can increase the lifetime value of the donor database by up to 200 percent. - IU Center on Philanthropy



Get Donors to Give Again (and More)

After proper cultivation and stewardship:Ask AgainAsk for UpgradesInvite to Monthly Giving ProgramIdentify/Ask for Major Gifts



Keeping Your Fundraising Alive!

Philanthropy CContinues even in a bad economy

Donors are PPeople– You have to build trust with

effective communication and interaction

RRetention is King– Spend time with your

donors – they’re worth it!



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

-http://www.afpnet.org/files/ContentDocuments/Donor_Retention_What_Do_We_Know.pdf

Resuscitating Your Budget: Moving Donors to Give

Self Improvement

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