2017 Connecticut Land Conservation Conference. Show Me the Money. Back to Fundraising Basics
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1 2017 Connecticut Land Conservation Conference Show Me the Money Back to Fundraising Basics
2 How Did You Learn To Give? Turn to the person next to you, share with them your earliest recollection of giving; how did you learn to give who taught you and how it made you feel Now reverse the process
3 Philanthropy is NOT About Money Philanthropy is about VALUES Philanthrōpos - loving people goodwill to fellow members of the human race
4 The Ability to Make An Impact Why People Give The ability to make an impact Belief in the cause Belief in the organization Belief in the people who do the work Because someone asked them
5 The Ability to Make An Impact Why People Give The ability to make an impact Belief in the cause Belief in the organization Belief in the people who do the work Because someone asked them
6 2015 contributions: $ billion by source (in billions of dollars all figures are rounded) GIVING USA FOUNDATION 2016
7 Over 50% LOST
8 ADVANCING PHILANTHROPY SUMMER 2016 FUNDRAISING EFFECTIVENESS SURVEY REPORT 2016 Fundraising Effectiveness Survey 10,000 respondents covering fundraising results for Organizations experienced a 5.3% increase in giving Overall gain of $4.695 billion over the prior years Gains were generated from new, upgraded current and previously lapsed donors. During this same period there was also a loss of $4.264 billion from donors whose contributions lapsed or were reduced For every $100 gained, there was a $91 loss
9 . 10% of donors 90% of funds Planned Giving Major Gifts Cultivation and stewardship Inspire Major Support 90% of your donors 10% of your funds Donor Renewal & Retention: Annual Giving, Events Direct Mail, Memorials Retention Efforts Relationship Building Donor Acquisition: Events, Direct Mail Constituency building Social Networks Retain & Grow Cultivate & Appreciate Build the Base
10 Top 5 Ways Donors Research Charities Look at an organization s website Consult an online charity watchdog Search online for information 54% 42% 27% Ask people they trust about the charity 26% Review news-media reports about the charity 23% A positive, strong, and clear message is what gets me to consider a cause, and a detailed explanation of the uses of the donated money is what will get me to trust a cause. SOURCE: CYGNUS APPLIED RESEARCH
11 Consider your website 41% Decide not to donate after seeing a charity s website! Survey conducted by Cygnus Applied Research THE CHRONICLE OF PHILANTHROPY OCTOBER 2016
12 They can give more! 31% of more than 21,600 affluent donors said they could have given more! 41% of donors under age 35 said they could have given more! I dislike being bombarded with donation requests, as it implies that the group is somewhat unappreciative of what I have already given. In % of donors said a charity s results determine whether they make a gift. A significant increase from 2011 when only 16% felt this way. Nonprofits would do better focusing on success stories.than by trying to make those of us who are considering donating feel privileged and guilty. SOURCE: CYGNUS APPLIED RESEARCH
13 But affluent households supported many causes last year! 0% 10% 20% 30% 40% 50% 60% 70% Basic needs Religion Health Nonprofits that support multiple causes Youth and family services Education Animal welfare Higher education Arts and culture Environment International Aid Other 11% 40% 38% 36% 33% 33% 31% 27% 21% 24% 50% 63% SOURCE: INDIANA UNIVERSITY LILLY FAMILY SCHOOL OF PHILANTHROPY AND U.S. TRUST
14 What affluent donors want from nonprofits Low Overhead 89% said charities should spend only a reasonable amount on administration or fundraising costs. Strong Operations 89% said groups should demonstrate sound business operational practices. SOURCE: INDIANA UNIVERSITY LILLY FAMILY SCHOOL OF PHILANTHROPY AND U.S. TRUST
15 What wealthy donors want to know 42% - How to identify volunteer opportunities 29% - Information about the work of specific charities 20% - How to engage the younger generation in giving SOURCE: INDIANA UNIVERSITY LILLY FAMILY SCHOOL OF PHILANTHROPY AND U.S. TRUST
16 What matters to donors Research surveyed 206 nonprofit organizations and more than 1,250 donors Knowing their money is used wisely (71%) Feeling that organizations they support have a good reputation (69 %) Having a strong belief in the organization s mission (68%) Believing that their support makes a difference (53%) * Edge Research for Abila, a software company working with North American nonprofits
17
18 Move to a Donor-Focused Approach 80% of your money comes from 20% of your donors! Know how your donors are giving Learn to understand their giving patterns Don t silo or segregate your donors
19 Know Your Donors! Understand Who They Are and the Terminology Major donors fewer yet more frequent contact Loyal Donors cultivate and build relationships Renewing donors understand when and why Lapsed Donors come back strategies & reintroduction New Donors general cultivation and outreach Corporations strategic alliances Foundations honest partnerships
20 Gift Table Analysis Dollar Range FY 2016# FY 2016 $ FY 2015 # FY 2015 $ FY 2014 # FY 2014 $ $100,000 $75,000 $50,000 $25,000 $10,000 $5,000 $2,500 $1,000 $500 $250 $100
21 Dollar Level FY 2016# FY 2016 $ FY 2015 # FY 2015 $ FY 2014 # FY 2014 $ $100, $ $0.00 $50,000 - $99,000 1 $75, $75, $25,000 - $49,999 1 $25, $0.00 $10,000 - $24,999 1 $10, $28, $5,000 - $9,999 2 $12, $15, $2,500 - $4,999 7 $21, $13, $1,000 - $2,499 8 $8, $14, $500 - $ $11, $16, $250 - $ $10, $18, $100 - $ $16, $22, Less Than $ $16, $22, TOTAL 693 $ 208, $ 234, $ 225,782.96
22 Constituent Analysis Fiscal Year Total Donors Total Raised Average Gift 2016 $ - $ $ - $ $ - $ - Renewing Donors Recovered Donors New Donors Lapsed Donors
23 Analysis of Donor Behaviors past 3 years Donor Type FY 2016 FY 2015 FY 2014 Donors New Donors Lapsed Donors Net loss from prior year Total Giving $ 396,116 $ 682,393 $ 616,631 Average Gift $ 426 $ 654 $ 614 Potential lost revenue $133,338 $75,210 $92,100
24 Three Objectives Pipeline Goal: X new donors - $100,000 Retention Goal: 70% retention of 2016 donors; $250,000 Major Donors Goal: Personally connect with 150 donors; $550,000 Acquisition Strategies Staff-led Events (how many) Volunteer-led events (how many?) Direct response appeals Stewardship Retention Strategies Staff-led Events (how many) Volunteer-led events (how many?) Direct response appeals Stewardship Major Donor Strategies Corporate & business partnerships Personal solicitations and follow-up Moves management Stewardship other
25 Fund Raising Buckets Supports Operations Based on donor renewals Specific Purpose or Project Based on structured appeal with major donors Supports Operations or Projects Based on new and renewing donors Supports Reserves, Endowment or Special Project Based on loyal donors remembering your organization
26 Tools in Your Tool Chest Personal Face-to-Face Solicitation Direct Mail Online Giving Recurring/Sustained Gifts Memorial Giving Giving Clubs Memberships Events
27 Direct Mail WHAT YOU DO Direct mail should be done several times a year Year end mailings provide the greatest return during the Seasons of Generosity and yearend tax incentives REMIND PEOPLE THROUGHOUT THE YEAR! HOW YOU DO IT Focus on you the donor not we your land trust Include a story Emphasize the future Include a specific ask with a specific amount reference last gift and date Make your sentences short and to the point. Include a P.S. most read Two pages is OK if you are telling a good story Graphics enhance your appeal List your Board on the side
28 E-Giving Whatever you send out via snail mail should also go via - the exact same thing Each component must validate the other to make it effective The more consistent your message the more people understand your cause!
29 Renewing/Upgrading Strategies Recurring/Sustained Gifts Good for renewing donors Usually arranged through personal or direct mail Giving Clubs Effective way to sustain or upgrade gifts Used in conjunction with Annual Report as an appeal Target donors who are close to next level and offer them the opportunity
30 Requests to Corporations and Foundations Cultivating personal relationships is the key for acquiring this support on a continuous basis The senior executive is often a major gift prospect/donor Communication between the major gifts officer and corporate giving director is vital
31 Capital Campaigns New Building or Addition New Program or Major Expansion Secure significant property Build Endowment Secure Large Leadership Gifts Structured Methodical For a specific compelling need Not operational Significant funds
32 Where the Money Comes From Gift Level Number of gifts Total $250,000 1 $250,000 $100,000 3 $300,000 $50,000 7 $350,000 $25, $300,000 $10, $250,000 $5, $150,000 $2, $175,000 $1, $125,000 $ $100, $2,000,000
33 Crowdfunding what is it & how to do it? Persuading individuals to each give you a small donation -- $10, $50, $100, maybe more Over 600 platforms: Kickstarter, Indiegogo, Go Fund Me Have an engaging story to tell, or your campaign could flop Tell a Story! Some sites do not collect money until your goal is reached Set Goals! A network of enthusiastic friends and family willing to help get the ball rolling by giving and urging others to give You Need a Crowd! Be prepared to essentially live online, staying active on social media sites, until the crowdfunding campaign is complete It s Not Easy!
34 Ultimate Crowdfunding Opportunity Give Tuesday November 28, 2017 We have a day for giving thanks. We have two for getting deals. Now, we have #GivingTuesday, a global day dedicated to giving back. On Tuesday, November 28, 2017, charities, families, businesses, community centers, and students around the world will come together for one common purpose: to celebrate generosity and to give. Build it into your Year-End Giving Strategy It is never too early or late Include your goal for that day Add catchy/meaningful hashtags #HarnessTheEnergy #GivingTuesday #GiveBack #ActsOfKindness
35 . Planned Giving Major Gifts Cultivation and Stewardship Inspire Major Support Donor Renewal: Annual Giving, Events Direct Mail, Memorials Retention Efforts Relationship Building Donor Acquisition: Events, Direct Mail Constituency building Social Networks Retain & Grow Cultivate & Appreciate Build the Base
36 Tea With Your Favorite Aunt. Visit at least once a year The Planned Giving Prospect Note the little things, pictures of their grandchildren, plaques, collections, gardens, Ask personal questions it s ok Don t rush the business this is social Profile Financially comfortable Reason Belief in mission Used services Someone they know Giving Consistent Long-term Concerns Need for income Concern for future Complicated Not wealthy enough Ask them about charity
37 Build a Meaningful Stewardship Program
38 The Basics Deposit the check immediately! Send the acknowledgement within 48 hours Personalized All accurate IRS information included Make it warm and appreciative Make sure they are included in your list Call for those who gave something significant Larger than average first time gift Major Donor Recovered Donor
39 No One Likes to Ask For Money So Start Saying Thank you Instead!
40 Boards are Great Stewards Communicate Via or Notes Personalize a thank you for a gift Call them and thank them for the contribution Add an note to a newsletter you received Write a personal note on an invitation or appeal
41 Fundraising is a Conversation When Socializing with friends over dinner, golf or shopping, have a (deliberate) 5-10 minute conversation about the organization: I was out hiking today and I have really gotten involved with.. I just heard the most amazing story..
42 Use An Event ASK THEM TO JOIN YOU Invite them to sit at your table Ask them to join you for the Annual Meeting Include them when there is a particular activity Ask Them to Go on A Hike ASK THE RIGHT QUESTIONS How are you connected with this organization? What made you decide to come here tonight? Why does this organization matter to you?
43 Gratitude is Where Giving Begins Group Exercise Write down three ideas that you will bring back Share with the entire group.
44 Why Do We Lose Our Donors? They suffer financially They die, move, or face tragedy They forget They get distracted They lose interest You mail them too often. You don t mail often enough You don t listen You treat them like a stranger They feel unappreciated. You make them mad
45 Questions to Ask Yourself When a donor gives to you how do you really make them feel? Will you keep the donors you have and give them a reason to grow with you? Do you build relationships with the emerging philanthropists of your organization?
46 Things to Do When You Leave Today 1) Set aside a budget and time for developing your plan Set up a 3-year look behind of your gift table Understand your retention rate and what you need to do 2) Know your donor, especially their motivation for giving and desired involvement 3) Say thank you, early and often 4) Demonstrate the impact the donor s contribution is making using stories, testimonials, and statistics
47 Unless someone like you cares a whole awful lot, nothing is going to get better. It's not. ~The Lorax by Dr. Seuss
48 INFLUENCE * INCREASE * IMPACT Danosky & Associates helps nonprofit organizations build the capacity to move their strategic vision forward with a solid foundation and an army of support behind them info@danosky.com
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