Transcript Solicitation & Stewardship - Three Stones Consulting, LLC

Young Nonprofit Professionals
Network Learning Circle
The Essentials of Fundraising &
Donor Development
Week 5 - Solicitation & Stewardship
Jessica Haynie
October 25, 2011
Today’s Agenda
• Exercise - elevator pitch
• Presentation on solicitation and stewardship
• Discussion on topics for next week’s class
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Review of donor stages
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Identification
Qualification
Cultivation
Solicitation
Stewardship
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Five Principles
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People give to people to help people
People give relative to their means
Those closest must set the pace
The 80/20 rule is becoming the 90/10
rule
• Fundraising programs need balance
4
People Give to People to Help People
• People, not institutions, make the
decisions to donate or not to donate
• Donors make their investments based
on their relationship to the asker; donors
give to people they trust
• From a donor’s viewpoint, institutions do
not have needs, people do.
5
People Give Relative to Their Means
• Offer gift amount categories
• Suggest amount to give
• Use gift range charts
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Those closest must set the pace
Former Participants
Clients
Members
Board
Manag. Staff
Major Donors
Volunteers
General donors
Employees
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The 80/20 rule is becoming the 90/10 rule
Major Gifts
90% of $
10% donors
Upgraded Gifts
20% of donors
Often 80% or
more of the
funds raised
will come from
not more than
20% of the
donors.
10% of $
Base
70% of donors
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Fundraising programs need balance
GuideStar - The Fundraising
Methods That Worked Best in 2010
- and Could Work Best in 2011
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Direct Mail Appeal Package
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Outside envelope
Appeal letter
Response device
Return envelope
Other (brochure, lift notes, news
articles)
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The Letter
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Grab attention in first sentence
State the problem, tell a story
Pose a solution
Tell how the reader can help
Tell benefits to reader if help
Ask for a gift - today
Be specific about gift $ requested (suggest gift amount at
least 25% higher than previous gift)
• Say thank you (2 or 3 times)
• Use a postscript
• Be personal (use you, we, I)
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Best Letters, in general
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Short, indented paragraphs
Underlining or bolding for emphasis
Short sentences, no compound sentences
Short, direct words
Active voice
Simple
Personalized, if within budget
Signature in different color ink
Black ink for body of letter
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Direct Mail Do’s and Don’ts
• Do:
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Invest time to update donor database
Include CLEAR call to action
Use an emotional hook
Personalize your letters (Dear Jessica)
Pay attention to detail (Mr. Jessica Haynie)
Carefully follow postal regulations
• Don’t:
– Make it sporadic
– Make solicitations your only form of communication
– Neglect to test your mailing before going mass
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Generate a feeling of…
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Excitement
Sense of Proximity
Sense of Immediacy
Sense of Hope
Meaning
Sense of Reasonableness
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Segmentation
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Current donors (second ask or special appeal)
Non-renewed donors (last year but not this year)
Lapsed donors (gave over 2 years ago)
New donors (never gave to the organization)
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Face-to-Face Ask - why?
• The most productive means of raising money. This is
the basic building block upon which to create a
relationship between donor and the organization
• Will consistently result in higher dollar amounts per
contact
• Is the most cost efficient means of raising money
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Elements of a Successful Ask
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Select a comfortable, quiet location
Make sure the asker is also a donor
Give a reason/purpose
Be clear and convey exactly what you want
Be gracious in receiving a gift
Be willing to be turned down
Spend 20% of the time talking and 80% listening
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Face-to-Face Ask Rejections
If people aren’t saying no, you’re not asking enough!
• The best way to handle a rejection is…
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Don’t take it personally
Understand why not, and can you counter offer
Don’t debate
You can correct any incorrect information
Don’t get distracted
Still thank them for their time
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Stewardship
What do donors say they want?
“Prompt, personalized acknowledgement of their gift.”
“Confirmation that their gifts have been put to work as
intended.”
“Measurable results on their gifts at work prior to being
asked for another contribution.”
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Stewardship
How to give donors what they want
• Formal annual report
• Letter/email from CEO
• Memo from staff member or volunteer working in the field
• Site visit
• Internal or independent analysis of programs
• Personal update (by phone or in person) from CEO or
board member
• Organizational publications
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Stewardship
Setting stewardship priorities
• Develop a system in place to get personalized thank you
letters out in less than one week
• Refresh content of thank you letters, segmenting for
donors giving to different programs
• Map the donor experience to look for weaknesses and
opportunities
• Develop a plan to demonstrate donor gifts at work
• Thank a donor every day (more than good stewardship,
it’s a good for fundraiser morale)
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Stewardship
$1-$99
$100-$249
$250-$499
$500-$999
$1,000+
Thank you
letter
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Newsletter
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Emails
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Invitations to
events
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Personal thank
you note
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Holiday cards
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Annual Report
Phone call
thank you
Annual visit by
ED
X
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