Transcript Donor Centered Fundraising - NorthSky Nonprofit Network

Donor Centered
Fundraising
Child and Family Services
Of Northwestern Michigan
Prepared by: Kathy Lievense, CFRE
The Summit Group, Consultants in Philanthropy
$306.3 Billion
Contributed in 2007
Individual Giving
$252 Billion
82.3% of all Gifts
Individuals $229 Billion
Bequests $ 23 Billion
Corporate Giving
$15.6 Billion
5.1% of all Gifts
Foundation Giving
$38.5 Billion
12.6% of all Gifts
Who is Receiving the Contributions We Make?
Religion
Education
Human Services
Foundations
Unallocated Giving
Health
Public Society (UW)
Arts & Culture
International Affairs
Environment & Animals
33.4%
12.1%
9.7%
9.1%
7.7%
7.6%
7.4%
4.5%
4.3%
2.3%
The number of
501©3 organizations
stands at an all time
high of 1,126,367
The largest increase in 2007 was to international affairs (16.1%).
Human services showed an increase of 8.4%.
Pyramid of Giving – The Five I’s
IDENTIFICATION
INFORMATION
INTEREST
INVOLVEMENT
INVESTMENT
The Ladder of Effectiveness
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Direct Mail
Media Use
Special Events
Phone-a-Thons
Grants
Personal telephone without letter
follow-up
Personal telephone call by a peer with a
letter follow-up
Solicitation by personal letter without a
follow-up telephone call
Solicitation by a personal letter with a
follow-up telephone call
Personal visit by one person
Personal visit by a team
Moves Management
The most empowering
strategies for all major gift
fundraisers!
Moves Management
Program
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Select 20-25 of your best
prospects
Create a file on each
person
Identify “natural
partners”
Consult with natural
partners
Select a primary player
Develop a strategy for
each prospect
7. Plan your next 5-10 moves
and establish gift
objectives
8. Record and review
9. Refine strategy
10.Review, refine, review,
refine, etc.
Plan one move per month
for your best prospects!
90/10 Rule!
Donor-Centered Fund Raising
Focuses not on Money, but on
the People Behind the Money
Since the fundraising industry has put such a strong emphasis
on planned giving, why is performance in this area not
showing improvement?
Why is 50% renewal rate after the first gift considered to be
the “industry standard”?
If people made an effort to support a charity in the first place,
then what is happening in fundraising that causes half of
them to say “no” the very next time they are asked to give?
Why do almost 90% of donors disappear within five renewal
campaigns?
Where are these donors going?
A cycle ensues: giving, seeking but not finding
satisfaction, moving on to another charity.
Solution…
We must foster all relationships effectively!
How to Build Donor Loyalty
“Garbage In, Garbage out”
Give highest priority to securing a
second gift from first-time donor
(bonding “window” is 1-3 months)
Basic rule of economics: Invest
more in cultivation and retaining higher
value donors
Reconsider how to tell your success story
to existing donors
Introduce your “leader” in person to donors
Treat online donors as your most valuable members
Monitor both your traditional and emergent competition
How do you communicate how you are different from other
organizations?
Respond and resolve all donor inquiries
Let’s Focus on a New
Generation!
Who are the Millinias?
Born since 1968
They work collaboratively
They believe they can make
the world a better place
They live immersed in causes
Their signature is digital fluency
They ask “How do we begin?”
Often feel under-appreciated within organizations
Talk on-line in venues that support open, freeflowing conversations and opinions
What Do We Ask Ourselves?
Why do we want to connect to the Millennias?
What conversations do we want to have with them?
How open are we to listening to them?
What will we allow them to do that we don’t feel we
have to control?
Today’s younger generation are the philanthropists of tomorrow!
Characteristics of a Major Gift
Prospect
Has the capacity to give, as might be recognized by past
giving, lifestyle, or knowledge of family circumstances
OR
Is philanthropic, a regular donor to other organizations
OR
Has a philanthropic interest in foster care or adoption
OR
Has an affiliation with CFS, such as a volunteer, parent,
relative or friend
AND
Is Accessible
Making the Call!
“Every gift involves a bit of the donor’s self. Giving money
is the most personal expression of a person’s values.”
REMEMBER:
We are not seekers of money. We are engaged in empowering
people to share!
We must have commitment, knowledge, skill & practice
The foundation of the solicitation is built on the Case
Statement
People Give to People!
Making the Call!
Be proud you’re inviting others to join you in helping others
Tell who will be helped
Give donors a choice
Ask donors what THEY want
Lay the foundation, plan for the long term, end the hard sell
Encourage feedback – comments, questions, complaints
Thank the donor, Thank the donor, Thank the donor
Be a donor yourself!
Additional Suggestions for
Making the Call
• Remind the donor that
his/her gift may be
matched
• Offer monthly, quarterly
or annual installments
• Put a smile on your face
• Listen to your donors;
switch from monologue to
dialog. Successful
fundraisers listen 80% of
the time
Additional Suggestions for
Making the Call
• Be positive
• Think like a donor
• Offer donors the opportunity
to become involved
• Invite donors to “see for
themselves”
• Communicate with passion
• Tell stories, use photographs,
use words wisely
• Explain reality
Standards of Giving Necessary
for a $50,000 Campaign
This gift chart indicates that: 80% of the money will be contributed by 20% of the
donors and 20% of the money will be contributed by 80% of the donors.
$ 5,000
4
1
$ 5,000
$ 2,500
8
2
$ 5,000
$ 2,000
16
4
$ 8,000
$ 1,000
32
8
$ 8,000
$
500
64
16
$ 8,000
$
250
100
25
$ 6,250
$
150
120
30
$ 4,500
$
100
160
40
$ 4,000
600
154
$ 1,250
1,104
280
$ 50,000
Less than $100
TOTAL
Donor Centered Gift
Recognition
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Hold open houses where children are
present
Recognize program support through
press releases
Plaques – 53% of corporate donors
will display them; 5% of individual
donors will display them
Present framed pictures drawn by a
child
Have the “right”person thank the
donor
Host a “thank-a-thon”
For every one time a person makes a
gift, contact them two other times
without asking for money.
Take pictures. 86% of corporations &
65% of individuals love it!
Remember donors when they are ill
or celebrating a special day
PLAN! PLAN! PLAN!
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Goals’ Objectives & Strategies
Gift Acceptance Policies
Annual Calendar
Conflict of Interest Guidelines
Marketing/Public Relations Plan in Coordination with
Fundraising Plan
• Job Descriptions (staff, volunteers, committees & board
members)
• Publications
• Coordination of annual fund, major gift program and
planned giving program – DONOR CENTERED!
Philanthropy in the New
Economy
Challenges
Focus on the positive rather than the negative
Raise awareness of opportunities
Build infrastructure
Create a more philanthropic culture
Educate the board about their role in
philanthropy
Communicate often with donors without a
financial request
STRATEGIES
Going green and using more email
More efficient use of the website
Asking board members to make cultivation calls rather
than solicitation calls
Inviting major gift donors to share why they made gifts
Asking the Executive Director to call and thank donors
Looking to make best use of social media
Encouraging younger people to be involved on committees
Key Advice for Philanthropy in
the New Economy
Your case is a terrific cultivation and
fundraising tool
Make more personal contacts
Donors want to see ROI
“Philanthropy is voluntary
action for the public good
through voluntary action,
voluntary association and
voluntary giving.” Payton, 1988
Through the centuries, it has been clearly
established that people want and have a need to
give. People want to give to causes that serve
human and societal needs. They will give when
they are assured the organizations they
contribute money to are worthy, and accountable
in using the gifts they have received.
Through communication, cooperation, and
coordination, we can enable all people to
experience the joy of giving!
Questions
&
Answers