Let s Have Coffee! The Art of Face-to-Face Fundraising

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1 Let s Have Coffee! The Art of Face-to-Face Fundraising Tom Iselin President First Things First tomiselin@gmail.com

2 Fundraising Where s the BIG money?

3 Tom Iselin Background Options trader turned social entrepreneur Founded nonprofits that are national in scope Author of 6 books Loves the outdoors!

4 Format Educational Strategic Practical

5 Let s Have Coffee! Goals 1. Understand the fundraising environment 2. Learn why face-to-face fundraising is a winning tactic 3. Learn key face-to-face fundraising principles

6 You re on a mission... You Want to Make a Difference! It s not about Wall Street or State Street. It s about sides streets and back alleys. You have noble intentions. You have a worthy mission.

7 Today s Fundraising World is Fierce! 1.5 million nonprofits 85% have budgets under $500k 94% have budgets under $2.0 mil Top 400 nonprofits receive 20% of all giving! 60% of all giving goes to: Education, healthcare, large cultural orgs, and religious orgs. Plus, you re facing limited resources to raise $$$. Page 2

8 Let s Have Coffee! Goals 1. Understand the fundraising environment 2. Learn why face-to-face fundraising is a winning tactic 3. Learn key face-to-face fundraising principles

9 Take Note! Page 2 More than % of funds donated to charity comes from individuals and % of this money comes from face-to-face giving.

10 Where are you spending your time and money? Percent of Time Amount of Funds Raised 1. One-on-one meetings 2. Small group meetings or parties 3. Telephone conversations 4. Personalized handwritten letters 5. Personalized word processed letters 6. or text solicitation 7. Web, blog, and other online solicitation 8. Annual fundraisers or large group events 9. Mass mail/direct mail solicitation using videos 10. Mass mail/direct mail solicitation 11. Grants 12. Brochure distribution 13. Advertisements 14. Other

11

12 Page 3 3 minutes! Reflection and Application...

13 Case Study: The Cost of Writing Grants Page 4 Higher Ground applied for a $15,000 grant. Grant submission was 62 pages; took 60 hours. 4 required reports; 25 pages each; 30 hours each.

14 Case Study: The Cost of Writing Grants Total hours spent on grant: 210 Income raised from grant: $15,000 Income per hour: $71 Page 4 Total one-on-one meetings: 60 Hours spent preparing for meetings and follow up: 120 Total hours managing donors: 180 Income from one-on-one meetings: $935,000 Income per hour: $5,194 Dozens of times more profitable! Risk: Average grant cycle: 2 years! But not donors... Possibly many years, plus additional benefits!

15 Cost of Hosting A Gala Page Hours Jenny ($30/hr $29,000) 948 Hours Katie ($16/hr = $15,000) 100 Hours Steve 60 Hours - Adele 255 Hours - 10 to 20 Hours Board Members Involvement 60 Hours - Silent Auction Volunteer Suzy 120 Hours - Gala Coordinator Peter 200 Hours - 50 Gala Volunteers 200 Hours - 4 Interns combined hours Hours: 2931 Gala gross: $155,000 Direct Expenses: $85,000 Net: $70,000 Jenn and Katie: $53,000 (with taxes) Net, Net: $17,000 Calamities? = $5.80 /hr!

16 Why is Face-to-Face fundraising a winning strategy? 1. One of the most effective ways to raise money. 2. Gives donors a chance to see and feel your passion. 3. Provides an opportunity to build trust. 4. Is an efficient use of resources. 5. It s dynamic (interactive), not static 6. Cannot be duplicated in brochure, video, website. Winning Strategy!

17 Face-to-Face Calamity Forcing folks to ask for money A missed donation because the asker wasn t effective. A smaller donation because the asker wasn t effective. A donor leaves the nonprofit due to a bad experience. A donor tells shares her bad experience with others. The asker leaves because he feels forced to ask for money, or he feels uncomfortable asking for money. Page 4

18 Who wants to do what? Who s good at what?

19 Let s Have Coffee! Goals 1. Understand the fundraising environment 2. Learn why face-to-face fundraising is a winning tactic 3. Learn key face-to-face fundraising principles

20 Take Note! Let s look at more startling statistics... Page 2! Questions minutes!

21 Let s Have Coffee! Goals 1. Understand the fundraising environment 2. Learn why face-to-face fundraising is a winning tactic 3. Learn key face-to-face fundraising principles

22 The Super 6 Donors are attracted to: 1. Issues they care about 2. Missions they believe in 3. Organizations they trust 4. People they like 5. First-rate performance and impact 6. Outstanding donor stewardship and customer service Page 5

23 The Big 2 Why Donors Continue to Give 1. Has my donation make a difference? 2. Have you made me feel valued and appreciated for all the monetary and nonmonetary contributions I ve made? Page 5

24 7 Strategic Fundraising Principles 1. Build sticky relationships 2. Make a connection ask first 3. Increase the number of face-to-face asks 4.Find, keep, and touch more donors 5. Get donors involved 6. Focus on the needs to you fill 7. Create more goose bumps Pages 5-6

25 Principle 1: Build Sticky Relationships Avoid: Cash machine feeling Ignore donor = bye, bye $$$ Focus on: Individual interests Philanthropic interests Personalizing everything! Do the small stuff! Be a Philanthropic Concierge Story: Dinner!

26 Principle 2: Make a Connection Ask First The first ask is NOT for money! First ask donors to: Observe programming Volunteer for a day Take a site tour Watch a performance Attend a friendraiser Less Pressure!

27 Principle 3: Increase the Number of Face-t0-Face Asks Many nonprofits: Less than 5% Top Fundraisers: 50% Connect with donors Nurture relationships Build trust and credibility Explain your work and impact Express your passion ASK IN PERSON! Always with Major Donors Just Ask! 70/90 Rule

28 Principle 4: Find More Donors 200, $100 donors = 1, $20,000 donor Referral systems: board, vols, staff, donors Speak at corporations and civic functions Host open houses and awareness events Get radio and TV time; social media Give tours, collect contact info Story: Argyous What are Your Conversion Rates?

29 Principle 5: Get Donors Involved Magic = Money = Retention! Ideas Observe a program Tour your facility Volunteer Join a committee Invite to event Solve a problem Meet 2-3x a year Donor Engagement Form Loyal, generous and faithful fans! Story: Ice Skating

30 Principle 6: Focus on the Needs You Fill We need money for our programs... No, No! Your gift will help these wounded veterans get the harnesses they need that will allow them to ride horses... Yes, Yes! Frame your ask to show how the beneficiaries will benefit, not your nonprofit

31 Principle 8: Focus on the Needs You Fill

32 Principle 7: Create More Goose Bumps Great fundraising = savvy marketing! Clear messages Top-of-mind association How can you stand out? Killer marketing quiver: Compelling stories Stunning videos Striking images

33

34 7 Strategic Fundraising Principles 1. Build sticky relationships 2. Make a connection ask first 3. Increase the number of face-to-face asks 4.Find, keep, and touch more donors 5. Get donors involved 6. Focus on the needs to you fill 7. Create more goose bumps

35 Take Note! More than 80% of funds donated to charity comes from individuals and 80% of this money comes from face-to-face giving.

36 Questions

37 STRATEGIC SERVICES FOR NONPROFIT ORGANIZATIONS TOMISELIN.COM This presentation will be available at cnmsocal.org/501conference

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