Gailperry.com » Fundraising in the Recession

Average Gift Size to Haiti is Smaller Than Other Disasters – What That Means to Us

Gail — Fri, 26 Feb 2010 14:47:56 +0000

The Chronicle of Philanthropy reported this week that some international relief organizations said their average gift size to help the Haiti crisis is smaller than after the tsunamis in 2004. The good news is that the number of gifts went up even if the size of the gift was down.

For example, (and I’m quoting from the Chronicle article here:)

In the first 10 weekdays after the earthquake in Haiti, Mercy Corps received 61,505 contributions, compared with 49,561 donations during the same period after the tsunamis. But the average size of the Haiti gifts was $109, compared with $208 for the tsunami gifts.

As of Wednesday, the American Red Cross had received approximately $231-million, a little more than a third of the more than $644-million raised by major U.S. relief groups. Online donations for Haiti have averaged $92 for the group, compared with $150 after the tsunamis.

World Vision U.S. has raised almost $30-million for its work in Haiti, roughly the same amount the organization had received during the same period after the tsunamis. But the charity’s average gift size is $130 this disaster, compared with $191 for the tsunamis.

Here’s my take on this: Clearly the disturbing trend to smaller gifts is because of the recession. How long will we be here? Gift size has dropped almost across the board.

I, for one, am anxiously waiting for signs of spring – looking for signs of a resurrection in the economy and in giving. These trends in gift size may be the first bellweather to let us know how things are going. And clearly, the tide hasn’t turned yet. But these donors are more of the anonomyous type – the kind motivated by media to “help out” in times of crisis.

We CAN be successful when we make focus in on our CURRENT donors – those who are already on the bandwagon with us. All the more reason for us to be keeping our donors and friends of our cause excited about the impact we are making in the world.

I just read in the Benevon newsletter yesterday of some stunning results from first time “ask events’ – major funds that were raised from both new and old donors. When we pull in those personally devoted to our cause and tell our story with impact and passion, they WILL give.

Our inner circle donors are a better bet right now than new donors who come to us thru the media.

The Chronicle’s 10 Emerging Trends for 2010

Gail — Sat, 12 Dec 2009 01:40:22 +0000

Today’s Chronicle of Philanthropy identified 10 trends that are a bit unnerving. These are outside forces that are making life a challenge to put it lightly for anyone trying to carry out a nonprofit mission.

These trends are worrisome at best. They point out warning signs and potholes on the road to a nonprofit’s success.

I’d much rather see the pundits give us some good news coming down the pike for 2010. Listen, I’m the eternal optimist. There’s got to be a way to find something to be hopeful about! : )

Here are the trends that the Chronicle has pointed out:

10 Trends – Emerging Forces for 2010

1) Governments in Crisis – this means that we won’t be seeing grants and support from the governmental sector come back anytime soon. Let’s just hope that your nonprofit has not over-relied on government support!

2) Strains in the Safety Net – yes, this is troubling. Nonprofits are being asked to fill the gaps in the safety net. Can they do it?

3) A Full-Court Press for Modest Gifts – the mega gifts are really declining. And smart organizations are focusing on smaller gifts from generous donors.

4) Grim Grants Outlook – since foundations’ endowments lost so much in the stock market, the funds available for grantees has shrunk considerably for 2010.

5) A Weakened Charity Work Force – ok, so there have been alot of layoffs in our sector and people are straining to do more with less. We can handle it temporarily until things bounce back.

6) A Sharpened Eye on Charity Pay – oversight, transparency, scruitiny – it’s all there when examining nonprofit perks!

7) Rising Donor-Charity Tensions – donors are asking for more and more. They want to be able to control their gifts in ways we haven’t seen before.

Proving That Charity Works – outcomes, results, impact. That’s what everybody wants from us.

9) Volunteerism Becomes Cool – here’s a bright spot. Helping others is now the new cool. Yes!

10) A Stalled Online Revolution – I don’t agree with this one. The online world offers nonprofits incredible tools. We just need to learn how to use it.

I don’t want to hear words like: grim, stalled, weakened, tensions, strains and crisis, I am currently overdosed on the dark side.

Let’s look at the opportunities for us all – even in the midst of a challenging year. Last year, I published “7 Reasons for Fundraisers to be Optimistic in 09″ in the international AFP newsletter. I promise you that I’ll create an even longer list for 2010!

Holiday Giving Looks Pretty Good

Gail — Sun, 22 Nov 2009 16:51:41 +0000

Hi, I’ve been on vacation last week on the lovely west coast. My friend Jane Heimerdinger from the `Iolani School in Honolulu, Hawaii invited me to speak at the CASE VII Conference in San Francisco. And I stayed out on the west coast visiting the Napa Valley a few days. Life is good!

The Chronicle of Philanthropy columnist Holly Hall just posted an article on the Chronicle’s Prospecting blog: “Most Americans Intend to Make Holiday Donations This Year.” You know I have been preaching optimism about year-end giving right now – from my perspective, things are looking up.

I am seeing a turning tide of not only hopefullness, but clear indications that donors are starting to loosen the strings on their wallets.

The Chronicle cited a study by the American Red Cross of over 1000 adults in November that showed the same results.

If you can imagine, almost 25% of those polled said that their income had decreased during the recession! But even including those people, 80% of all those surveyed said that their year-end gifts would stay the same (62%) or increase (7%).

And only 20% said their giving would cut back. I think it is so very encouraging that the people in this poll said they would economize in other areas in order to keep up their giving. This agrees with other studies earlier in the year that cited the same opinions.

We need to remember – Amerians are a generous people. And we are accustomed to giving in the fall and particularly during the holiday season.

May your end of year campaign be the best ever! Onward!

Focus on Individuals if You Want to Reach Your Year-End Fundraising Goals

Gail — Wed, 07 Oct 2009 03:38:14 +0000

I missed yesterday’s blog post because I was heading to Harrisburg, PA to deliver the keynote speech for today’s Central Pennsylvania AFP Conference. (What a great crowd of fundraisers they are in south-central Pennsylvania!) So now I’m going to catch up!

After my keynote and two workshop sessions, I got Kim Klein on the phone for the last interview in the 09 Year-End Strategies Telesummit. As usual, Kim was on target with some eye-opening comments that will help us all.

Who’s going to pull us out of the recession?

Kim wants to remind us that it is really going to be individuals (not corporations, foundations or the government) who will stick by us this fall. She reminded us that the bulk of contributions comes from individual donors, anyway – somewhere over 80% of all contributions.

And most people give out of their current income. And most people are still employed. So. . . .that means that there is still plenty of money “still in play” as Kim aptly puts it.

Who’s in trouble now?

The organizations who are in trouble now are those who did not build a diversified base of donors. They who relied too much on support from one sector. They either over-relied on foundation funding, or corporate support, or government grants.

Who’s OK now?

It’s the groups who have a broad base of individual donors who are doing just fine right now, thank you very much. Kim said it was the individuals who are giving from $50 to $2500 annually who are keeping lots of nonprofit organizations in business.

So as you plan your year-end strategy, focus down on your wonderful donors who give as individuals. They are the ones who still have the money to give. And they are the ones who will stick with you when the people you serve really need your help.

Nine Steps to Create Your Year End Fundraising Plan

Gail — Sat, 03 Oct 2009 04:54:07 +0000

I am almost finished interviewing the fundraising gurus in my 2009 Year-End Strategy Telesummit. And here’s my Year-End Strategy #2 showing you how they suggest putting together your year-end fundraising plan. I’ll drill down on each one of these in the next few posts and discuss it in more detail.

1. What types of communications media will you use? Will you use mail, email, phone calls and in what order? Direct mail guru Mal Warwick recommended in the Telesummit that nonprofits send several appeals via letter, email and phone.

2. What’s the schedule of appeals? When will you send out mail, vs phone calls, vs. email? What will follow what? Schedule them out over the next two and a half months and make a real plan.

3. What will be the theme? You need a “dynamite marketing concept” for the appeals, says Mal Warwick. The visual look of the email and letters needs to be the same. And the font/typeface/white space/logo of your annual appeal needs to be the same in email and direct mail. And the message is the SAME.

4. What’s your budget for the campaign? How far can you stretch your dollars?

5. What will be the purpose of your end of year appeal? Will it be for “general unrestricted?” (boring) Or will it be for something specific that donors can really latch on to? (interesting) Kivi Leroux Miller recommended in the Telesummit that we focus on raising money for a specific project in our end of year appeals.

6. How will you segment your list? Will you pull off a certain group for face to face calls? Will you send a special set of appeals to nondonors vs donors? How will you solicit lapsed donors? Or last year’s gala attendees? Or mothers of school age children? Consider all the ways you can segment your list and make that plan.

7. What role will your board members play? Will they make some face to face calls? Will they make thank you phone calls? Will they hold holiday parties asking for in-kind gifts? Will they send email appeals to their own networks? Be sure you activate them!

8. How will you promptly thank your donors? Will you find 7 ways to thank your donors so they’ll give again when asked? Will you organize a team of board members to make prompt thank you calls when gifts are received?

9. How will you evaluate your campaign? Will you compare to last year’s? Will you evaluate the size of gift or the number of gifts or both? How will you measure your success?