Posts Tagged ‘fundraising strategies’

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.

Here’s some pretty interesting info from this weeks Fundraising Success E-Newsletter. Here’s some data  just released by the “eCampaigning Review Study” that looked at 2 million donors to 50 nonprofits around the world.

The study found that 70% of the nonprofits didn’t send a followup email within one month.  And – can you believe this – 37% did not send a thank you email.

This shows where nonprofits stand in developing their e-fundraising skills – they are only doing the very basics. Apparently nonprofits are learning how to successfully raise money online.  BUT. . .

They are missing the followup! I can’t imagine how they could neglect the thank you and the followup. If they don’t followup, then the donors are most likely to never give again!

There is a lot of research out there indicating that first time online donors are less likely to give again than first time donors by mail. If there was ever an urgent “to-do” in any fundraising office – it’s being ALL OVER first time online donors – and thank thank thanking them.

The Fundraising Success article suggests that a nonprofit create a “welcome route,” – a series of communications to first-time donors.  I love the idea of a Welcome Route. But it’s hard – I know it’s hard – to plan for the followup when you are under so much pressure to bring in new gifts.

But the investment in welcome packages is an investment in next year’s campaign. You are laying the groundwork for NEXT YEAR’s fundraising. You need to engage your donor NOW while she is still excited about her donation and she is really interested in your work.

We all know that developing long term relationships with donors is the KEY to long term, sustainable fundraising. But just because we know it, doesn’t mean that we do it.

This needs to be one of our new-year’s resolutions for 2010 – loving our donors and thanking them in every possible way!

To your fundraising success,

Gail

Here’s a great blog post from direct mail expert and fellow blogger Alan Sharpe. I highly recommend his blog and newsletter.

If your non-profit organization is like many others, you receive half or more or your contributed income at the end of the year as part of what used to be called the “Christmas Appeal.” In recent years it has come to be known as, in politically correct North America at least, the “Year-End Appeal” or “Seasonal Appeal.”

Which means your year-end appeal letter can make or break your year, financially speaking. Here are some tips on how to craft a winning year-end fundraising letter appeal package.

1. Keep it simple
One non-profit ministry that I shall not name mailed their year-end appeal letter in a poly bag along with their donor newsletter. They had been late in getting their newsletter in the mail and so, to save on postage, they mailed it along with the seasonal appeal letter. The campaign bombed, and bombed big. Donors, as far as we could tell, read the full-colour newsletter and ignored the letter that came with it. So my advice is this: keep your year-end appeal simple and focused on one goal: securing a year-end donation.

2. Be creative
You will be competing with other organizations in the mailbox. Every charity sends an appeal at Christmas. So stand out by mailing something creative. When I worked with Doctors Without Borders as their fundraising letter writer, they mailed a Christmas card to donors that donors then signed and returned to the organization with their gift. Doctors Without Borders forwarded the card to a volunteer doctor or nurse who was serving overseas, and whose name was on the card. The cards were greatly appreciated by the volunteers (many of whom were homesick at that time of year). The cards also involved donors in a way that warmed their hearts and motivated them to contribute.

3. Look back with thanksgiving
Use your year-end appeal fundraising letter as a way to thank donors for their support during the past year. Don’t list the names of every staff person you hired or promoted, or go on at length about happenings at head office. Instead, tell at least one heart-warming or compelling story that illustrates in vivid terms how your donors’ gifts changed lives. Use quotes from the people that you serve wherever possible. They add credibility and human interest to your letter.

4. Look ahead with anticipation
Also use this Christmas appeal letter to present your vision for the coming year. Show donors how their gift this “Holiday Season” will make a difference next year for your organization and the people you serve.

5. Use a seasonal theme
Try to tie your appeal to the season. Giving, presents, exchanging greetings, snow, “goodwill toward man” and other themes are popular at Christmastime. If you can tie your appeal to an emotion or sentiment that is already prevalent at the end of the year, and do so in a relevant way without being overly sentimental, do so.

6. Accentuate the positive
Please don’t appeal for donors to get your books out of the red and into the black. If you have a negative cash flow at year-end, don’t ask donors to correct it. They will see your predicament as your fault. Donors are not motivated to eliminate debt (unless it’s Third World debt). But they are motivated to change the world through a gift to your organization. So present your appeal as an opportunity for the donor rather than a rescue operation for your chief financial officer.

7. A special word for Christian charities
Avoid the “God gave us an unspeakable Gift and so should you” approach in your Christmas appeal letter. Instead, show in concrete terms how you will use a donor’s gift to further the work that your Christian donors care about, using a biblical theme if possible.

Here’s a question from our colleague Chris Harp.

“Gail, my question has to do with how to reinvigorate an annual appeal that started in August, but probably should have started in October. Even though our past appeals have been year-end appeals, my board thought sending letters out early would garner increased contributions, but I’m afraid people have just put their letter aside. We are down about 50% at this point, and if we mail the same amount as a reminder, we’ll cut into our profits. Any low-cost ideas to reinvigorate this campaign?”

Hi Chris, I really think you have no choice but to send another mailing to people who haven’t given yet this year. I know the cost of this mailing will cut into your profits as you say, but try running the numbers:

What will you get if you send the additional mailing? :

Expected revenue from the second mailing less the expenses of the second mailing = net increased revenue.

What’s the expected revenue and cost of doing nothing?

If you DON’T send another mailing:

Estimated revenue that might dribble in during November and December from an August mailing = not many more contributions.

I think you must mail an appeal again, for two major reasons. One, they need to be reminded and asked, clearly.  Two, you need to put that pledge card and reply envelope in their hands again.

Almost certainly they have misplaced the pledge card and envelope. And you MUST make it easy for them to give.

Now, there are some other alternatives:  You can send them a postcard, “we haven’t heard from you yet!” and direct them to your web site to make an on-line contribution.

Or you can phone call them to followup the August mailing. I”d love to see your board members making those phone calls since they were the ones who directed the strategy to mail in August.

Finally, there’s always email. You can certainly email folks on your list who have given you their email addresses.

I think you need to plan your year-end appeal using what I call “multiple communications channels” anyway. Use a combination of phone, email, letters and postcards to really jack up your message on your donors’ radar screens.

Good luck and let me know how you do!

In the 09 Year-End Fundraising Strategy Telesummit, direct mail guru Mail Warwick shared an amazingly simple tactic that can have a major impact on your donors’ generosity.

You would never think that this simple step can dramatically increase the return from your fundraising appeals.

Here it is:  Send a postcard or email to donors right before the fundraising appeal letter goes out. People will see the postcard or read the email a few days before their letter arrives in their mailbox.

This is very likely to increase response from those who get the email or postcard.

What you are doing is “warming up your donors.” (see my other blog post on warming up before the ask.)

What you might say is this – and this is from the transcript of Mal Warwick’s Telesummit interview – “I want you to be the first to know that we are soon to launch our year-end campaign.  Our goal is X. The theme is Y.  The deadline is December 31, and so on. . . .”

“You will receive a letter describing the campaign in a couple of days and I hope you will pay close attention and respond.”

This is clearly not rocket science, BUT it cam make all the difference. This is what I have alwyas called a “two-pronged appeal.”

First there is the warm up – an email, a phone call, or even a personal letter letting the donor know that they will be asked soon..”

Then there is the appeal itself.

I used this strategy when I was a staff fundraisser, directing the fundraising program at the Kenan-Flagler Business School at UNC-CH.  (Yes I am a TAR HEEL!)

And it was very successful! A no-brainer, easy to implement, that had a major impact on the success of my campaign.

You can use this in mini-campaigns too, such as soliciting your board or advisory board, or a special group of donors.

Try pulling out a segment of donors for this special treatment if you can’t do it for everyone on your donor list.

I think you’ll be surprised and pleased at your results!

I am such a fan of Kay Sprinkel Grace. She is one of the ultimate fundraising gurus who I have followed for a long time. The highlight of my summer was hearing her in person at the Bridge Conference in DC this summer.

So I wasted no time asking her to be a part of the 09 Year-End Fundraising Strategies Telesummit. And, as usual, she had some provocative and pithy ideas to share. (find out more. . . )

Here’s the deal: we have to know where our donors stand if we are going to successfully encourage them to contribute this year. So we need to drill down a bit into our donors’ minds and hearts and understand their attitudes so we can craft the right kind of fundraising appeal.

According to Kay ( and I do wholeheartedly agree), donors are feeling poor right now, whether they are multimillionares or not. So they are being more and more careful about their giving (and spending for that matter).

Kay thinks the economy is starting to pick up. And she is also seeing that philanthropy is picking up as well. : ) So If philanthropy is starting to pick up, then this year-end is a golden opportunity to re-gain the fundraising losses we have seen in the past year.

But we need to know how to talk to our donors.

Right now. Responding to their current attitudes for fall/winter 09.

Here’s the issue - donors are less likely to take risks now. They are becoming more conservative. Gone are the days when a person might issue 30 checks at year-end, just because they cared a lot and also because they had ample income.

Now, people are giving to fewer organizations – AND to trusted organizations.

SOOOOO how do speak to your donors NOW? Remember that credibility is essential for your fundraising now more than ever. How do you establish credibility?

Lots of ways:

• track record – here are our results
• transparency – how we are spending your money
• who is on our board (what community leaders are standing behind us and our cause?)
• 990 posted online
• professional looking web site and marketing materials
• good looking (ie, professional) fundraising appeal
• longevity – we’ve been in business all this time
• endorsements from well-known community leaders
• funding from well-known sources (publicize this because it adds credibility)

Be sure you hit all these points somewhere in your web site and in your appeal.  And you’ll be more successful if you do.

My site has lots of ideas and strategies for catapulting your fundraising results, your board and your organization - all to new heights.  It is my honor to help you in any way I can – as a trainer, blogger, consultant and coach to nonprofit leaders.

PLEASE sign up now for my newsletter to get regular tips and strategies to help you motivate your board and raise that money your organization needs.

Also do check out my new webinar series for board members to learn about friendraising and fundraising:

End Your Board’s Frustration and Nervousness about Fundraising

Train Your Board Members in Friendmaking and Fundraising

My New Fast Track For Board Members Webinar Series Will Show Them How

If you are supporting or leading a nonprofit board, I’m sure you want to see every single person on your board excited, engaged, involved, and working hard for the cause.

I’ve designed a series of webinars for nonprofit board members – in their language, from their perspective, with humor and practicality.  And it gives them exactly what they need to know in order to be successful.

• March 11: How to be a Supremely Effective Board Member
  
• March 30: How to Become An Influential Advocate For Your Cause
• April 22: How to Start the Conversation and Open Any Door in Town: The Art of  Friendmaking for Your Cause
• May 13: Six “No Ask” Fundraising Strategies for Board Members
  
• June 3: How To Never Get Turned Down When You Ask for Funds and Support
  

The webinars will be all at 1pm eastern and will come with discussion questions to help turn your board into a fired-up, action-oriented friendmaking TEAM. Find out more here.

FREE AUDIO:  “Asking for Major Gifts: How to Never, Ever Get Turned Down”

Here’s everything you need to know about successful solicitations and the secrets to get your donors to say “yes.”  I hope you’ll take the time to listen to this hour-long session.  Download it now and learn how to secure those most important BIG GIFTS!

You can find out more about hiring me to fire up your board for fundraising, present a keynote speech or seminar, or help you as a consultant.

Do check out my calendar of events for my upcoming monthly webinars, and definitely sign up for my newsletter!

Thanks again for visiting!

Gail

PS: You can contact me personally and connect on Twitter, Facebook or LinkedIn. I personally respond to everyone who writes.