Fired-Up Fundraising | Gail Perry Associates » Fundraising in the Recession http://www.gailperry.com Nonprofit Fundraising Consultant | Board Development | Keynote Speaker Fri, 03 Feb 2012 03:58:39 +0000 en hourly 1 http://wordpress.org/?v=3.0.4 Where to Find the Gold In Your Fundraising This Fall http://www.gailperry.com/2011/10/where-to-find-the-gold-in-your-fundraising-this-fall/ http://www.gailperry.com/2011/10/where-to-find-the-gold-in-your-fundraising-this-fall/#comments Fri, 14 Oct 2011 15:15:36 +0000 Gail http://www.gailperry.com/?p=6040 ]]>

You may find that your lapsed donors are a pot of gold.

We all know that year-end fundraising is the most important season of all.

About half of your donors will make only one gift a year and most of them will make it during October – December.

And this year, the stakes could not be higher. Donors have narrowed down the number of organizations they support, and they are making fewer gifts.

Join me for my FREE webinar on November 1: “Where to Find  the Donors This Fall.”  I’ll give you even more practical strategies based on the latest research on what donors want right NOW.

Here are your two top priorities for your year-end fundraising this year:

1. Get last year’s donors to RENEW their gifts.

2. Get your lapsed donors back into the fold, with a RENEWED gift.

It’s not the greatest time to be going after brand new donors. Studies are showing that 9 out of 10 donors are not going to consider a gift supporting a new organization right now.

So focus your attention on your loyal, true believers: your current and your lapsed donors.

1. Renew your current donors first.

Why? Because this is your money in the bank. These are the easy gifts. So go get them first and get them now.

Clearly these people love, love your organization and your cause. They believe in you. They just may believe passionately with a deeply emotional connection to your work.

They’ve voted with their money that you are a priority in their lives.

This is the time to be all over your current donors – with love, of course.

But whatever you do this year, beat the bushes, deploy the troops, be ALL OVER last year’s donors and encourage them to renew.

  • Tell them WHY it’s so very important, this year, right now.
  • Give them a sense of urgency and a REASON to give now.

Ditch the high-flown lofty language so many nonprofit folks like to use. Talk to them like they are friends and family: personal, authentic, casual.

2. Go after your lapsed donors with vigor and love.

Current donors and lapsed donors are the bright spots on your fundraising horizon.

They are the secret gold in your donor files.

It’s your lapsed donors who may not be getting the special treatment that your current donors are getting.

BUT – they have already voted in the past that they believe in you. They voted with their money.

And maybe they drifted away because you didn’t shower them with enough appreciation. Maybe they drifted away because their finances got tight.

But I bet you can get them back into the fold!

Try a phonathon to ALL LAPSED DONORS that says:

Call your lapsed donors and say "we love you, we miss you, we want you back!"

“We love you, we miss you, we want you back!”

Now, I don’t know about you, but if an organization said this to me, I just might come back! What would you do?

See, the tone of this appeal above is charming. It’s friendly. It’s casual and fun. It can capture a donor’s heart.

Just LOOK at all the lapsed donors in your data base. Add up the value of their gifts.

Then, after you faint over the total amount of money that has slipped away from you, get to work.

Organize your board members into a phonathon and CALL YOUR LAPSED DONORS.

It’s an easy call to make. And it sounds like fun – something that’s in short supply these days.

Studies have shown that securing business from a new customer costs 10 TIMES more than it costs to get more business out of a current customer.

This also applies to nonprofits: it costs far less to upgrade a current donor or to renew a former donor than it does to secure a new funder. So let’s take the kinder, gentler route.

Bottom Line:

Be smart. Be cost-effective and efficient. Get the easier, sure bet donors first.

Focus on renewing current and lapsed donors, and I bet you’ll be over goal before you know it!

And, plan NOW to join me on November 1 for a FREE WEBINAR:  Where to Find The Donors This Fall.

We all know that fundraising is changing. People ARE still giving – BUT they are giving differently. I’m going to give you practical strategies for year-end that are based on the very latest research data. You can find out more here.

]]> http://www.gailperry.com/2011/10/where-to-find-the-gold-in-your-fundraising-this-fall/feed/ 4 Giving in the USA: How Much? To What? http://www.gailperry.com/2011/06/giving-in-the-usa-how-much-to-what/ http://www.gailperry.com/2011/06/giving-in-the-usa-how-much-to-what/#comments Fri, 24 Jun 2011 13:19:41 +0000 Gail http://www.gailperry.com/?p=5574 ]]>

The much-awaited Giving USA Report came out this week, with important data on just how much US donors gave last year to various causes.

We all look forward to this data because it tells us how generous American donors are feeling. And what types of causes donors are favoring.

Any info we can find out about donors’ preferences is like money in the bank to enterprising fundraisers.

Here’s what I think you need to know about the Giving USA Report and today’s giving climate: (I’m using inflation-adjusted numbers here.)

  • Donors gave 2.1% more this year than last.

Giving is rebounding –  but slowly — just like the US economy.

As the Nonprofit Quarterly puts it, we have “a still-depressed domestic giving scene. ”

  • Overall giving is still down 11% from pre-recession highs.

In ’08 and ’09, giving took a huge dive, dropping by 13% in two years.

It was the largest drop in giving in more than 40 years. (sobering, isn’t it?) This year’s increase of just over 2% still puts us at an overall decline of 11%.

  • Overall, in 2010 donors gave an estimated $290.9 billion.

Last year donors gave $280 billion, so we are up by 10.6 billion.

So giving is beginning to recover as the economy slowly climbs out of the recession.

And donors are showing that they really do continue to care about philanthropy.

  • The philanthropic outlook is still uncertain.

If giving only grows at this slow rate, it may take years to get back to where we were before the recession.

  • US human services groups took the biggest hit last year, with contributions dropping 5.6%.

Originally this sector looked ok, with a decline of only 1.5%.

But the sector includes special funds raised by US charities for Haiti relief efforts.

When you take out the Haiti gifts, you see a real decline of 5.6%.

This couldn’t be worse news for our safety net charities.

With more government cuts expected and demand spiraling, human service agencies can expect continued fundraising challenges.

  • Donors are not going to be giving enough to make up for government cuts to nonprofits.

There are going to continue to “be significant gaps between between needs and services,” according to Patrick Rooney, executive director of the Center for Philanthropy at Indiana University, one of the report’s co-sponsors.

  • Gifts from individuals are by far the largest source of funding to nonprofits – totaling 87% of all gifts.

According to Giving USA: “Combined charitable giving by individuals, bequests, and family foundations is estimated at $254.10 billion in 2010, or about 87% of the  total.”

Never forget: Individuals give so very much more than foundations and corporations.

Focus on major gifts from real people if you want to make your goals.

  • Bequests make up 8% of all charitable gifts.

    Corporate gifts are rebounding.

Never, never forget that the profit in fundraising is in planned giving and bequests.

Don’t lose out on these potentially transformational gifts!

  • Corporate giving grew 8.6% in 2010.

This is not surprising, since corporate giving plummeted during the recession.

But this figure also includes in-kind support – which is an increasing part of the overall total.

  • Foundation grant making dropped slightly – 1.8%.

Foundation grant making by private, community and operating foundations was $41 billion in 2010, according to the Foundation Center.

Foundation giving also took a dive in the past two years, and apparently it has not rebounded yet.

  • Gifts to education grew 3.5% in 2010.

This great news since education gifts dropped in the past two years.

We can typically expect that larger nonprofits, like educational institutions,  will pull out from the recession more quickly than smaller more grassroots organizations.

Giving to education rose to an estimated $41.67 billion – 14% of the total.

  • Gifts to health organizations were about flat: down by 0.3%.

Giving to health was $22.83 billion – 8% of the total.

(1.3% in current dollars or down 0.3% in inflation-adjusted dollars).

Hospitals are challenged by pressure to provide more charity care – so they are focusing more on philanthropy than ever before.

  • Gifts to arts and cultural organizations are up nicely.

Gives to arts, culture, and humanities organizations were 4.1% more in 2010 than in 2009.

This follows a decline of 1.8 percent between 2008 and 2009. 

Many arts groups suffered steep drops in support during the recession, and it’s good to see them rebounding.

  • Gifts to international organizations are up significantly: 13.5%.

And giving to this sector is up by 18.6% over the past two years.

Clearly there is an increased interest in international causes and issues among donors.

  • Environmental and animal-welfare groups had the second largest decline, down 2.3%.

Even the big oil spill in the Gulf last year did not prod an uptick in gifts to environmental groups.

Here are some great reference articles for this report.

U.S. charitable giving shows modest uptick in 2010 following two years of declines (Center on Philanthropy)

The Economy and Giving: How 2011 Fund Raising Will Fare (Chronicle of Philanthropy live discussion)

The Other America’s Philanthropy: What Giving USA Numbers Reveal in 2011 (Nonprofit Quarterly)

You can download the free Executive Summary of the Giving USA 2010 Report here.

]]> http://www.gailperry.com/2011/06/giving-in-the-usa-how-much-to-what/feed/ 1 Average Gift Size to Haiti is Smaller Than Other Disasters – What That Means to Us http://www.gailperry.com/2010/02/average-gift-size-to-haiti-is-smaller-than-other-disasters-what-that-means-to-us/ http://www.gailperry.com/2010/02/average-gift-size-to-haiti-is-smaller-than-other-disasters-what-that-means-to-us/#comments Fri, 26 Feb 2010 14:47:56 +0000 Gail http://www.gailperry.com/?p=1945 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. iStock_000011708698XSmallFor 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.
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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.

iStock_000011708698XSmallFor 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.

]]> http://www.gailperry.com/2010/02/average-gift-size-to-haiti-is-smaller-than-other-disasters-what-that-means-to-us/feed/ 0 The Chronicle’s 10 Emerging Trends for 2010 http://www.gailperry.com/2009/12/the-chronicles-10-emerging-trends-for-2010/ http://www.gailperry.com/2009/12/the-chronicles-10-emerging-trends-for-2010/#comments Sat, 12 Dec 2009 01:40:22 +0000 Gail http://www.gailperry.com/?p=1780 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. 8) 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!
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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.

8) 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!

]]> http://www.gailperry.com/2009/12/the-chronicles-10-emerging-trends-for-2010/feed/ 2 Holiday Giving Looks Pretty Good http://www.gailperry.com/2009/11/holiday-giving-looks-pretty-good/ http://www.gailperry.com/2009/11/holiday-giving-looks-pretty-good/#comments Sun, 22 Nov 2009 16:51:41 +0000 Gail http://www.gailperry.com/?p=1758 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!
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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!

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