2012 Spring Webinar Series

Transcription

1 2012 Christian Brothers Services, Romeoville, IL. All Rights Reserved Spring Webinar Series 2012 Christian Brothers Services, Romeoville, IL. All Rights Reserved. No part of this presentation may be reproduced, stored in a retrieval system, or transmitted by any means without the written permission of Christian Brothers Services. Christian Brothers Services Spicing Up Your Annual Fund March 22, SPRING WEBINAR SERIES Opening Prayer Creator God, through your world and people that surround us, we pray that we may grow more aware this day of your life giving presence. Open our minds and hearts to apply the knowledge from today s webinar for the good of all. We ask these things in Jesus Name. Amen

2 Christian Brothers Services Spicing Up Your Annual Fund Heidi Waltner-Pepper Vice President Ter Molen Watkins & Brandt 2012 SPRING WEBINAR SERIES Presentation Outline Annual Fund Review Your Board and Fundraising What goes into an Annual Fund Plan? Adding some spice. 5 What is an Annual Fund? An organized effort to obtain gifts on an annual basis, usually to support general operations It is the primary fundraising method used to broaden support and upgrade giving levels and to provide support for ongoing programs 6

3 Why is an Annual Fund important? Renew donor support annually Cultivate donors to increase giving levels Solicit new donors to broaden the base of support Identify leadership Identify major gift prospects Build donor loyalty 7 Traditional Donor Pyramid Donor Commitment Investment Involvement and Interest Donor Growth Information and Identification Donor Contact Fundamental Elements of Building Your Annual Fund Donor identification Cultivation Solicitation Stewardship 9

4 Six Primary Constituencies of Prospective Annual Fund Donors Individuals Businesses Clubs Organizations Corporations Foundations 10 Annual Fund Elements Direct Mail Annual Appeal letters Grant writing Personal visits Special events Telemarketing Membership E-philanthropy or online giving 11 Assessing Your Program What are your key annual fund activities? Identify significant gaps in time between activities How can you augment/add/expand activities to create a more year-round program? 12

5 Ladder of Effective Fundraising How do you communicate? 13 Key Questions for Donor Cultivation Who are the target audiences for each activity? How are they integrated? Are you tracking a donor s movement, their life cycle, to understand the different points at which they connect to your organization? What is their progression? How do you develop them? What are the things you are doing to strengthen your relationship to them? 14 What is the donor s context? How do you relate to your donors or prospects? Invitations to events? Direct mail and annual fund solicitations? Newsletter mailings? Thank you calls and letters? Other ways? 15

6 Stewardship and Cultivation (Speaks to the care and feeding of donors) How do you capture data and knowledge about your constituents? Are you talking to your donors and capturing that information? What are you learning about them motivations, interests, concerns How quickly do you process and acknowledge gifts? 16 Why your board is so important to the fundraising process? Bottom line the board is responsible for ensuring that adequate resources are and will be available to support the programs of the institution The board has a perspective that reaches beyond the present to address needs for the future They are responsible for how funds are raised and how they are spent 17 A Board Member s Role Deepen the commitment of other donors to your organization Increase interaction with your donors Inform of the values and benefits of your organization Share their own passion and commitment to your mission Listen to donor feedback 18

7 How Your Board Can Help With Your Annual Fund Endorse your programs and sign letters Help with donor visits Assist with events Give tours/presentations Identify potential donors Plan activity and set direction Identify human interest/service stories Represent the organization at civic meetings 19 Developing an Annual Fund Plan Is your staff and board involved in planning? Does your plan fit within the overall development plan? What about your overall organizational plan? How does one determine appropriate goals? Does it include financial projections? 20 Developing an Annual Fund Plan Continued Who will take responsibility for what? What is the timeline? How do you evaluate the effectiveness of your annual fund activities? 21

8 Example of an Annual Fund Strategy Strategy Individuals and organizations giving<$500 a year Actions Send annual renewal mailing in October Send renewal reminder in December Send newsletters twice a year (February, June) Thank all donors within 1 week of their gift Customize letters with upgraded asks and handwritten notes Invite Annual Fund donors to one event per year 22 Strategies for Growth Three basic strategies for increasing revenue from your Annual Fund: 1) Increase the gift size of current donors 2) Increase the # of gifts from current donors 3) Increase the # of current donors 23 Increase the Gift Size of Current Donors Easiest strategy to begin with Always ask for a specific amount based on the donor s giving history Offer an array of gift size options Allow donors to stay at the same giving level for a while Offer payment options (pledges, credit card, etc.) 24

9 Increase the Number of Gifts Special appeals in addition to the annual fund Institute a monthly giving club Offer electronic funds transfer (EFT) payment options Offer e-philanthropy or online giving through your website 25 Increase the Number of Current Donors Probably the most challenging strategy Donor attrition needs to be factored into growth strategies Increase number of donors either by Adding new donors Recapturing lapsed donors 26 Another Strategy Challenge/Matching Gift Programs They can significantly increase your chance to raise more money Your Board can be your best source to help you identify an individual, company, family or community foundation willing to make the pledge 27

10 Another Strategy Challenge/Matching Gift Programs The amount of the challenge grant request will depend on a variety of factors The need based on the fundraising goal The rated capability of the Challenge Grant Prospect The rated potential of those in your donor base from those who you will be seeking matching funds Will you seek a dollar per dollar match or increase the ratio to perhaps one-for-two or even one challenge dollar for every three you raise? 28 Another Strategy Challenge/Matching Gift Programs Visit the Prospect with the help of your Board, identify the appropriate solicitor's State your case Let them know of the explicit, unique advantage of a Challenge Grant program This will provide inspiration and enthusiasm to your leadership and volunteer solicitors when making personal solicitation 29 Another Strategy Challenge/Matching Gift Programs It s a compelling solicitation ask which lets donors know that the gifts they give will not only help to make your organization s fundraising campaign more successful but that the money they give literally multiplies as it is matched by the challenger. 30

11 Another Strategy Challenge/Matching Gift Programs Once you have secured a Challenge Grant start with your Board! Your Board sets the precedent they must be the first to give before you go out to others. 100% participation is critical 31 Another Strategy Challenge/Matching Gift Programs Publicize, Publicize, Publicize Announce the Challenge Grant to the remainder of your donor base by sending out special letters. Publicly herald the Challenge Grant and the generosity of the donor in every possible mailing and publication your organization produces 32 Another Strategy Challenge/Matching Gift Programs A Challenge Grant will energize your Annual Fund and multiply the gifts from the Board, from donors who have major giving potential and to seek major new gifts from individuals, corporations and foundations. 33

12 QUESTIONS Metrics used to analyze your program Individual revenue Annual Fund Donors Growth Average Giving per Donor Renewal rate Cost per dollar raised 35 Typical Response Rates Method Mail Standards 5-10% for new, renew, lapsed Phone 10%+ pledge rate for current/lybunts/sybunts % give/join rate Acquisition % Renewal 10-35% per mailing Recapture 5-10% of lapsed file (lybunt, sybunt) 36

13 QUESTIONS For questions regarding Fundraising Contact: Brian Page at x 3092 For more information on Christian Brothers Services or for a link to handouts for today s webinar Geni Olejniczak at geni.olejniczak@cbservices.org x 2463

14 2012 Christian Brothers Services, Romeoville, IL. All Rights Reserved Christian Brothers Services, Romeoville, IL. All Rights Reserved. No part of this presentation may be reproduced, stored in a retrieval system, or transmitted by any means without the written permission of Christian Brothers Services.