Fundraising Tips for Turbulent Times

Jerry Panas has created a weekly series of tips to help nonprofits with their fundraising during this time of economical turmoil. The series is entitled “Economy Response.”

According to Mr. Panas’ website:

“ECONOMY RESPONSE is our answer to the turmoil the economy is in these days. The good news is that many organizations are actually raising more money now than they have in the past.

There’s a reason for this. In tough times, people actually give more. But here’s the rub. They only give more to organizations they care about. Those that are lower in their philanthropic priority will receive less or are dropped.

Your response to all this is to be scrupulous in your stewardship... get in front of your donors on a regular basis...make your case more dramatic and compelling, and more urgent... show how your institution is more distinctive— a mission without parallel... demonstrate that your delivery is more effective than ever... let them know you are cutting all expenses that don’t provide better service...and you are touching more lives than ever before.

That is what this series is all about. Each week, ECONOMY RESPONSE will offer a special message to help you get your friends and donors into your institutional hug, a lasting embrace.”

To access the series, just click on the title to this post.

Fundraising During Challenging Economic Times

The Association of Fundraising Professionals (AFP) makes available free resources on its website, particularly on the “Resource Tools” page found under “Resource Center” on the left menu bar (www.afpnet.org).

One such resource is a recent article written by Derrick Feldmann, which provides suggestions about building stronger ties with donors during tough economic times. Mr. Feldmann provides suggestions centered around being proactive, involving donors and communication.

To access this helpful resource, just click on the title to this post.

Major Gifts- Donor Cultivation System

The most effective major gifts programs are those that are well thought out, systematic and properly executed, day in and day out. The Corporation for Public Broadcasting (CPB) has created an excellent guide to help their member stations implement and manage a major gifts program. The guide should be adaptable for any organization involved in fundraising.

The guide is entitled “The Donor Cultivation System.” It is explained on the CPB website as,

“a collection of tools and instructions on how to use them that will take you from identifying donors through cultivating them to getting the gift. There are three principal tools in this system:

1. Prospect ratings tools

2. Moves management tools

3. Prospect call sheets

Some of these tools have more than one component. For instance, the moves management tools include a ratings grid for clustering your prospects—identifying those with the greatest potential—and a spreadsheet for tracking moves. These tools work together as part of a system, and the system is an integral part of this site.”

To access the guide, just click on the title to this post.

Resources from the United Kingdom- Institute of Fundraising

According to its website:

“the Institute of Fundraising is the professional membership body for UK fundraising. Its mission is to support fundraisers, through leadership, representation, standards-setting and education, and it champions and promotes fundraising as a career choice.”

The Institute’s website contains many practical resources for fundraisers, no matter which country you live in, available for free download. If you live outside the UK, you should be able to adapt the resources for the needs of your organization and compliance with the laws of your country.

In particular, the Institute has assembled a library of best practice codes. Currently, there are 29 codes in the library on various fundraising and related topics, including:

acceptance or refusal of donations,

major gift fundraising,

direct mail,

event fundraising, and

many more.

To access the Institute’s homepage, copy and paste the following link into your address bar: http://www.institute-of-fundraising.org.uk/

To access the Institute’s directory of best practices codes, just click on the title to this post.

Fundraising- Major Gifts- Jerry Panas: “The Fundraiser’s Credo”

Jerry Panas is an exceptional fundraising consultant with a unique understanding of what motivates donors to make major gifts. He has written a number of helpful books and articles … all of which are worth reading. One of my favorites is entitled “Asking.” It is a practical, easy to read resource for both professionals and volunteers involved in major gift fundraising.

Some of his articles are available from “Contributions” magazine. “Contributions” is a free online magazine which covers topics such as “board development, major gifts fundraising, prospect and donor research, direct mail fundraising, volunteer management, nonprofit marketing, Internet and email fundraising, proposal writing, planned giving, and corporate and foundation fundraising.”

One of Mr. Panas’ articles, available from “Contributions,” is entitled “The Fundraiser’s Credo.” Mr. Panas has developed what he refers to as “the absolute truths about fundraising and philanthropy.” Here are a few that he writes about in the article:

“You must ask for the gift.

It is absolutely amazing what you don’t raise when you don’t ask! In every study we’ve conducted, the reason most often cited for why a person hasn’t made a gift is “because I’ve never been asked.”

…

Individuals give emotionally, not cerebrally.

Your donors give to dreams and dazzling visions. Giving is visceral. The larger the amount, the more likely it’ll go from the heart directly to the checkbook.

…

It’s harder to get an appointment than it is to get the gift.

Actually, more strategy, planning, and innovation are needed to get the visit than to sell the program. I know now that securing the visit means you’re 85 percent on your way to getting the gift. This means you need to use all your ingenuity and resolution, artful persistence, in getting the visit. The gift will follow.

The decision to give is spontaneous.

You’ve made a dazzling presentation. There’s almost an immediate spark of electricity. You can feel it. The amount may still be in doubt, the timing may be a question, the manner in which the gift will finally be made may require further study – but the decision is made.

…

The commitment regarding the major gift won’t likely be made on the first visit.

If you get a gift on the first visit, chances are you’re not getting as much as you should. You’re leaving money on the table. Spend much of your time during the first call showing the drama, the power, and the excitement of the program. Sell the dream.

Don’t sell the needs of the institution.

People have needs. Institutions don’t have needs. They have answers and solutions. Sell the answers and solutions. Your donors don’t give because you have needs. They give because you have solutions. They give to opportunities. Bold, visionary, exhilarating opportunities.”

To access the complete article, just click on the title to this post. To find more information about Mr. Panas, just copy and paste this link- http://www.jeroldpanas.com/

Fundraising- Integrated Development Plan

The Corporation for Public Broadcasting has created an excellent resource website to help its affiliated stations plan and execute fundraising initiatives focused on major gifts.

Part of the information provided emphasizes the importance of the creation of an Integrated Development Plan (IDP). According to its website,

“Development plans come in all shapes and sizes but the best ones share four common elements, which are outlined below. Choose whatever format works for you and is consistent with the rest of your station's planning, but be sure to include these elements. It may be useful to tie them together with a narrative so that the budget is useful even for those who have not been closely involved in its preparation.

Four elements of an Integrated Development Plan:

1. Case Materials
Your internal case materials are a critical part of your Integrated Development Plan because they provide the link between your development plan and your station's strategic plan. …

2. Budget
The best plan in the world will fail if it is not based upon a realistic projection of revenues and expenses. Setting goals and allocating resources is a critical part of the planning process and often the subject of lots of internal negotiation. … Be sure to pay particular attention to the personnel costs as you plan your budget. Major giving is a labor intensive process.

3. Operational Plan
At the heart of your Integrated Development Plan is an Operational Plan that takes each of your goals and breaks them into a series of "SMART" (specific, measurable, attainable, results-oriented and time-determined) Objectives and Action Steps. …

4. Annual Calendar
One of the best ways to ensure coordinated planning among all of your development activities is to use [a] Fundraising Calendar Template to plan, schedule and track all of your activities.”

The website also has resource links to serve as examples and guides in developing each of the elements listed above. Overall, the materials should be suitable for adaptation for use with any organization.

To learn more just click on the title to this post.

Resource- Philanthropy Journal

The Philanthropy Journal is a free online publication of the A. J. Fletcher Foundation. According to its website, the Journal-

“delivers news, information, resources and opinion about charitable giving, fundraising, management, leadership, marketing and communications, focusing in particular on organizational effectiveness, donor engagement and collaboration.”

The Journal is an excellent resource for timely articles, information and analysis. If you decide to explore their site by clicking on the title to this post, be sure to access the “Resources” page for more in-depth coverage of subject areas.

Fundraising- Grant Writing Basic Training

If you are new to writing foundation grant proposals or need a refresher, then the short course provided by the Foundation Center may be helpful. The Foundation Center is a nonprofit organization which conducts research and provides extensive resources and training related to foundations.

The Center’s free online tutorial covers the essentials of proposal writing, including- gathering background information, components of a proposal, executive summary, statement of need, project description, budget, and organizational information. Additionally, the elements of a letter proposal are covered.

Remember to always check the proposal requirements of the foundation you are submitting your proposal to in order to insure compliance with their rules.

To access the tutorial, just click on the title to this post.

Fundraising- Online Gifts

If you want to learn more about the intricacies of accepting gifts online, then you may want to attend “Donation University.” On its website, Qgiv, the creator of Donation University states:

“Donation University is a free, web-based guide to understanding online giving. Donation University offers a step-by-step approach that details the online processes, definitions, accounts and the options associated with online giving and payment processing, and allows a visitors to proceed at whatever pace best suits them.”

Of course, there are a number of service providers who process online gifts. The tutorial should be helpful as you consider which company is best for your organization.

To access Donation University, just click on the title to this post.

Fundraising- The 20 Biggest Fundraising Mistakes, Part II

Last week’s post contained a link to a Guidestar article discussing David Lansdowne’s first ten of the twenty biggest fundraising mistakes he wrote about in his book entitled “The Relentlessly Practical Guide to Raising Serious Money.”

Here are the next ten:

“11. Failing to Have a Strong Rationale

12. Failing to Cultivate Donors

13. Failing to Set a Realistic Goal

14. Failing to Train Solicitors Adequately

15. Failing to Thank Your Donors

16. Failing to Focus on Your Top Prospects First

17. Failing to Ask for a Specific Gift

18. Failing to Focus on the Best Sources and Methods

19. Failing to Find the Right Person to Ask

20. Failing to See Your Top Prospects in Person.”

The article concludes with the following observation:

“Harold Seymour, legendary fundraiser, puts it best: 'For clinking money, you can shake the can. For folding money, you should go ask for it. For checks and securities and gifts in pledges, you have to take some pains—make the appointment, perhaps take someone along, count on making two or more calls, and in general give the process enough time and loving care to let it grow and prosper.'"

The article also contains a discussion about each of the mistakes and how to avoid them. For access, just click on the title to this post.

Fundraising- The 20 Biggest Fundraising Mistakes, Part I

David Lansdowne is a professional fundraiser who wrote a book entitled “The Relentlessly Practical Guide to Raising Serious Money.” Guidestar has available two articles based upon excerpts from the book which identify 20 of the biggest mistakes fundraisers can make.

Here’s what is covered in the first article:

“Call them what you will—gaffes, blunders, oversights, or errors—mistakes creep into everyone's professional life. But in fundraising—unlike other fields—where thousands if not millions of dollars are often at stake, mistakes can be especially hazardous.

Who hasn't forfeited a significant gift, or received but a token one, due to some serious miscalculation?

While there may be hundreds of them, 20 potentially costly fundraising mistakes stand out. They can't really be ranked, since circumstances alter their impact. But here they are in an effort to ward you away from them.

1. Thinking Your Organization Will Attract Support Simply Because It's a Good Cause …

2. Thinking That Others Can Raise the Money …

3. Believing That Because People Are Wealthy They Will Contribute to You …

4. Thinking You Can Whisk Wealthy Prospects In at the Last Minute …

5. Failing to Research and Evaluate Prospects …

6. Failing to Ask …

7. Thinking That Publicity Will Raise Money …

8. Failing to Recruit the Right Trustees …

9. Believing You Can Raise Money by the Multiplication Table …

10. Failing to Have Deadlines …”

The article discusses each of the mistakes and provides suggestions on how to avoid them. If you would like to read more, just click on the title to this post.

Prospect Research- Helpful Hint #1- Association of Professional Researchers for Advancement (APRA)

To say that a good prospect researcher is “worth their weight in gold” is an understatement. A researcher is an essential part of the fundraising team and can make a dramatic difference in the productivity of the entire advancement effort.

An excellent resource for professionals who work in research, analytics and relationship management is the Association of Professional Researchers for Advancement (APRA). According to its website,

“APRA is the premier international organization for fundraisers who specialize in research and information management. APRA is committed to providing leading-edge educational and networking opportunities to fundraising research professionals, establishing and promoting high professional standards and ethical guidelines, and providing advocacy and a representative voice for the profession.

Representing more than 2,500 development professionals around the world in all types of nonprofit environments, APRA is easily the most diverse organization dedicated to the fundraising research professional. APRA offers numerous opportunities and services intended to enable members to more effectively meet the needs of their institutions and maintain the highest ethical standards.

In an increasingly dynamic technological environment, APRA is dedicated to the professional growth of its membership. Whether through education, networking opportunities or publications, APRA encourages and assists members to stay ahead of the curve in the areas of technology, resources and best practices of information management.”

For further information, click on the title to this post.

Alumni- Helpful Hint #1- Best Practices

Building a large base of supporters is critical for the fundraising success of any organization. If you work at an educational institution, you already know that your alumni are an important segment of the base. If your organization is not in education, you may be able to adapt some of the best practices utilized by educational institutions to engage their alumni to help build your support base.

The University of Michigan Alumni Association has assembled a group of best practice resources that provide guidance for their alumni clubs. According to their website:

“To help regional clubs reach alumni in their area as effectively as possible, we developed this set of "best practices," based on input from clubs across the country. We hope that these examples will help describe what a model alumni club should look like and give you ideas for ways to improve upon your current club structure and activities. Each of the following areas is important to having a club that is first and best for all alumni.

• Club Mission
• Club Events
• Collaboration
• Leadership Succession
• Scholarship and Student Support
• Public Relations and Promotion
• Membership
• Financial Basics”

On their website, each of the areas described above is a hyperlink to individual sections of their best practices guide. To access these resources, just click on the title to this post.

Fundraising- Helpful Hint #4- Capital Campaign- Feasibility Study (a/k/a Planning Study)

A Feasibility Study (commonly referred to these days as a Planning Study) is an excellent tool to help your organization gather information about its internal and external readiness for a capital campaign. It is also a very valuable tool that can be used to cultivate key decision makers, major gift prospects and potential leaders.

A good basic discussion of the benefits of a study, as well as the process, has been created by Tony Poderis. Identifying the value of a feasibility study, Mr. Poderis points out:

“At one time, a feasibility study for a capital or endowment campaign was little more than a process of identifying where the money was -- who had it and how much they might be willing to give. No longer. In today's donor-centric world, an organization needs to assess the:

1. Community's perception of the importance of the need for which
money is to be raised.

2. Feelings, both positive and negative, about the organization and
its mission.

3. Size of the potential donor base and its ability to give.

4. Availability of strong campaign leadership and effective volunteers.

5. Internal resources available for the campaign and the preparedness
of the organization to undertake it.

6. External factors that could influence the outcome of the campaign.”

To access Mr. Poderis’ complete article, just click on the title to this post.

Fundraising- Helpful Hint #3- Major Gifts- Moves Management

If you are attempting to increase the results of your major gift fundraising program, Blackbaud, the parent company of a variety of fundraising software solutions including Raisers Edge, has a series of helpful white paper reports available. Their article entitled “Embracing Technology for Moves Management® Success,” is a particularly good place to start.

The article offers the following explanation of the Moves Management process:

“Do you visit prospects, create gift proposals, solicit individuals or organizations for donations, and cultivate and steward donors? The actions you take to bring in donors, forge relationships and keep the contributions coming are known as Moves, and Moves Management, simply put, is the system of policies, procedures and practices that directs these actions.

An effective Moves Management program will improve your bottom line and facilitate a number of internal processes. Look for an enhancement of:

• Constituent relationship management (CRM): Finding, analyzing and tracking constituent information to form personal, lifelong relationships with your donors.
• Solicitation strategy: Increasing the success of your efforts by targeting prime donor prospects.
• Program and pipeline management: Move prospects through successive pipelines: identify, qualify, cultivate and solicit — with the intent of progressively turning them into donors and predicting future gifts.
• Strategic analysis and execution: Evaluating your program in light of specific goals and objectives to ensure optimal results.

A successful Moves Management program increases the success rate of every solicitor action, communication and appeal. As with any new policy, procedure or process, however, it is important to begin with a foundation of solid goals and objectives.”

If you would like to read the entire article, just click on the title to this post.

Fundraising- Helpful Hint #2- Strategic Planning

The strategic planning process is an excellent tool for an organization to utilize, not only to help it understand how to get from where it is today to where it wants to go, but also to help determine fundraising objectives and cultivate potential donors. Once the organizational strategic plan is completed and fundraising objectives determined, the advancement or development department can also use a strategic planning process to help it achieve the objectives.

Dr. Carter McNamara of Authenticity Consulting, LLC, points out, that “strategic planning serves a variety of purposes in organization, including to:

1. Clearly define the purpose of the organization and to establish realistic goals and objectives consistent with that mission in a defined time frame within the organization’s capacity for implementation.
2. Communicate those goals and objectives to the organization’s constituents.
3. Develop a sense of ownership of the plan.
4. Ensure the most effective use is made of the organization’s resources by focusing the resources on the key priorities.
5. Provide a base from which progress can be measured and establish a mechanism for informed change when needed.
6. Bring together of everyone’s best and most reasoned efforts have important value in building a consensus about where an organization is going.

Other reasons include that strategic planning:
7. Provides clearer focus of organization, producing more efficiency and effectiveness
8. Bridges staff and board of directors (in the case of corporations)
9. Builds strong teams in the board and the staff (in the case of corporations)
10. Provides the glue that keeps the board together (in the case of corporations)
11.Produces great satisfaction among planners around a common vision
12. Increases productivity from increased efficiency and effectiveness
13. Solves major problems.”

If you are interested in learning more about strategic planning and how it may help your organization, Authenticity Consulting’s “Free Management Library” website is an excellent place to start. To access their site, just click on the title to this post.

Fundraising- Helpful Hint #1- Assessment

Fundraising is most successful when it is coordinated with the organization’s strategic plan, properly staffed (paid and volunteer), adequately resourced, utilizes a comprehensive programming approach, and consistently executed, at a high level, year in and year out.

The first step in positioning your organization to achieve the best results possible is to perform an assessment of your current program. An assessment is essentially a thorough review of your current program and is intended to shed light on areas that you may need to improve.

The Institute for Conservation Leadership has posted a basic assessment questionnaire which you may find beneficial as you begin your review. To access their webpage, just click on the title to this post.

Online Fundraising Observations

AFP, the Association of Fundraising Professionals, has a short article available entitled “Online Fundraising In 2008: Can We Blink Yet?” It provides a quick glimpse of the current landscape, as well as some helpful observations of how to make the best use of your online fundraising efforts.

For example, did you know-

1) “one-third of people over 65 (those most philanthropically inclined) are now active on the Internet. Plus, nearly three-quarters of those in the 50–64 age group (i.e. the folks making the most money) are going online regularly,” and

2) the vast majority of donations online are still generated by websites that make a compelling case, in both words and photographs, and succeed in getting people to visit them. (Another fact: a recent survey found that 62 percent of Americans visit an organization’s website before donating!).”

Keeping up do date and implementing best practices in online fundraising will help keep your donors informed and should help increase total dollars raised.

To access the complete article, just click on the title to this post.