A Survival Kit for Fundraising in a Bad Economy

Thanks to AFP Resource Center for publishing "A Survival Kit for Fundraising in a Bad Economy"

Times are hard and life is strange...

A tumultuous economy can present unique challenges for nonprofit fundraising. Looking for ways to cope? AFP has compiled a toolkit of resources to advise and guide fundraisers in tough economic times.

“Donors have a lot on their minds these days as they sit down with their personal budgets,” explains Paulette Maehara, CFRE, CAE, president and CEO of AFP. “But despite the headlines about Wall Street and the financial markets, we as fundraisers should not lose sight of the fact that giving is a way for communities to pull together. While the economic forecasts are uncertain right now, what is quite certain is the capacity of people to lend a hand and support institutions of all kinds. We hope you’ll use AFP as a resource in garnering vital support for your organization in what may be a wild ride over the next few months.”

Recent coverage (AFP and others):

• "Fundraising Tips: Do’s and Don’ts in a Troubled Economy"AFP eWire
• “The Shifting Bottom Line: How the economy affects giving”By Paul Lagasse
• “Enjoy the Ride! How to effectively raise funds in a roller-coaster economy”By Mary Ellen Collins
• “Secrets to Strong Giving in a Struggling Economy”By Jim Sheppard
• “‘Donor fatigue’—Nonprofits forced to work harder for funds”By Adam Leech
• “Fundraising in a Recession: How Fast, How Soon”By Alexander, G. Douglass
• “Recession-Proof Your Fundraising” The Resource Alliance By Kevin Kibble
• “Fundraising in a Recession” By Kristin Clarke, ASAE & The Center for Association Leadership
• “Succeed at Fundraising Despite a Recession”By Marc A. Pitman, CFCC
• “Three Suggestions for Raising Money in Tough Economic Times”By Jim Berigan
• “Eight Ways Your Organization Can Cope With the Recession”By Mal Warwick

To read the full article, visit:
http://afpnet.org/ka/ka-3.cfm?folder_id=2545&content_item_id=24683

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Fundraising Blogs from the AFP Community

Thanks to the Association of Fundraising Professionals (AFP) for including this blog in their recent article:

Fundraising Blogs from the AFP Community

Here is an excerpt from that article with some of the blogs they reference:

• Donovan’s Donor Diary (http://www.fundraisingcorner.blogspot.com/) by Jim Donovan, president and CEO of Donovan Management Inc. in Lake Monroe, Fla.
• Everyday Giving Blog (http://www.everydaygivingblog.com/) by Roger Carr, founder of Everyday Giving in Fredericksburg, Va.
• Fundraising for Nonprofits blog (www.gayleroberts.com/blog) by Gayle Roberts, fundraising counsel, Fundraising for Nonprofits in San Francisco, Calif.
• New Voices of Philanthropy (http://www.newvoicesofphilanthropy.org/) by Trista Harris, executive director of Headwaters Foundation for Justice in Minneapolis, Minn.
• Perspectives From the Pipeline (http://www.fromthepipeline.blogspot.com/) by Rosetta Thurman, director of development and special programs at the Nonprofit Roundtable of Greater Washington in Washington, D.C.
• The Raiser’s Razor (http://www.theraiser.blogspot.com/) by Jeremy Gregg, CFRE, director of development at Central Dallas Ministries in Dallas, Texas.
• Sue’s Muse (http://www.suesmuse.com/) by M. Sue Woodward, CFRE, president of Woodward Associates in Potomac, Md.
  

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CFRE Review Course this June 11-12, 2008 in Dallas

If you are anywhere near the Dallas/Fort Worth Metroplex, please consider joining the members of the Association of Fundraising Professionals (AFP) - Greater Dallas Chapter along with the members of AFP - Ft. Worth Metro Chapter for the AFP DFW Philanthropy Conference 2008!.

Among the key features will be the "best CFRE Review Course in Texas." Here is the agenda for the course, which will be taught by veteran fundraiser and CFRE master James Holcomb:

• History of Philanthropy and Laying the Foundation for Fund Development


• Defining the Integrated Development Program


• Making the Case


• Volunteers and Staff : Roles, Responsibilities, and Relationships


• Identifying, Involving, and Retaining Current and Prospective Donors


• Annual Giving and Fundraising Methods


• Planned Giving ( U.S. version and/or Canadian version)


• Capital Giving
  

More info here:
http://dfwphilanthropyconference.com/cfre.htm
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Changes to ACFRE Certification Process

For those of us who don't even have our CFRE (Certifed Fundraising Executive designation) yet, this is likely a lifetime of planning away... but it's good to know.

For those of you who DO have your CFRE and would be interested in the Advanced Certified Fundraising Executive designation, this likely comes as great news:

Philanthropy.com reports in their article What Senior Fund Raisers Need to Know:

The Association of Fundraising Professionals this month announced that it is revising the certification examination for its highest credential, known as the Advanced Certified Fundraising Executive designation.No longer will fund raisers seeking advanced certification be expected to answer questions on the exam about federal tax laws or bequests and other types of planned gifts.

For those of you who are in Dallas and who are interested in taking the CFRE, a few of us are organizing a regular study group for a few Tuesdays prior to the AFP DFW Philanthropy Conference 2008 and the CFRE Review Course. We're meeting at the Center for Nonprofit Management from 5:30 - 7:00 on Tuesday June 3 and Tuesday June 10. Let me know if you're interested in joining us!

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The Gift Whisperer

Today, I had the wonderful privilege of hearing veteran fundraiser Jerold Panas deliver the keynote address at the AFP Greater Dallas Chapter's monthly luncheon. The speech followed his morning workshop session, which focused on "Making the Ask." All of this was prefaced with a powerful introduction speech by Mr. Panas during our breakfast, which began at 7:00 a.m.

Somehow, by 1:30, Dr. Panas was still smiling!

Dr. Panas has been raising funds for over forty years. He is Executive Partner of Jerold Panas, Linzy & Partners as well as the founder & chairman of the board of the Institute for Charitable Giving.

Some of the key thoughts from the day:

• Language is important -- do not use the word "prospect" or "suspect" in reference to donors; use the words "probable donor" and "possible donor." Your whole perspective on them will change.
  
• Similarly, consider replacing the words "Development" and "Advancement" with "Philanthropy." Wouldn't you prefer to introduce yourself to a probable donor as the Director of Philanthropy than the Director of Development?
  
• When making calls on donors, travel in pairs (and try to bring a volunteer or client instead of another staff member).
  
• Thank your donors seven times: send a receipt from Finance, followed by a hand-written note from Development, followed by a hand-written note from program officer, followed by report from development on the impact of their gift, followed by thank you call from client, recognize them in an annual report, etc.
  
• Fundraising is more art than science. But there are some helpful formulas to determine gift range for a major gift ... such as 10-25 times their annual gift size. However, the best way to determine possible gift size is to find out what other gifts they have given.
  
• There are three basic things that motivate donors in relation to your organization: PIE -- Performance, Image and Exposure. Of these, more than 68% report that Exposure is the dominant influence... so be sure that you are getting in front of donors as often as possible. He recommended considering a one-page, front-and-back letter from CEO every 4 weeks that had a simple story in it that showed impact of your work.
  
• The day after you talk with a donor, they remember less than 1/3 of what you said but more than 2/3 of what they said. Your goal, therefore, is to get them talking.

This last point really resonated with me. One of the first things that I realized after joining the Church of Phil Cubeta was that I am not a marketer. I am not even a fundraiser. I am a liaison between a donor and an organization; I am a counselor; I am a coach; I am a pastor; I am, above all, an advocate for the donor's dreams.

I cannot talk someone into donating... at least, not into donating substantially and for a long time. I might be able to hoodwink a few fools into parting with small cash, but I cannot fake a person into a transformational gift.

This is something that only they can talk themselves into.

My job is to be there to hear them do so.

Thank you to AFP for organizing the event, and to Dr. Panas for illuminating the obvious with just the right balance of humor and passionate sincerity.

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The Donor-Centric Pledge

Thanks yto TexasNonProfits at TXNP.org for this article:

We, [fill in the name of your nonprofit organization here], believe…

1. That donors are essential to the success of our mission.

2. That gifts are not "cash transactions." Donors are not merely a bunch of interchangeable, easily replaceable credit cards, checkbooks and wallets.

3. That no one "owes" us a gift just because our mission is worthy.

4. That any person who chooses to become our donor has enormous potential to assist the mission.

5. That having a program for developing a relationship with that donor is how organizations tap that enormous potential.

6. That we waste that potential when donors are not promptly thanked.

7. That "lifetime value of a donor" is the best (though often overlooked) way to evaluate "return on investment" in fundraising.

8. That donors are more important than donations. Those who currently make small gifts are just as interesting to us as those who currently make large gifts.

9. That acquiring first-time donors is easy but keeping those donors is hard.

10. That many first-time gifts are no more than "impulse purchases" or "first dates."

11. That you'll have to work harder for the second gift than you did for the first.

12. That a prerequisite for above-average donor retention is a well-planned donor-centric communications program that begins with a welcome.

13. That donors want to have faith in us, and that it's our fault if they don't.

14. That donors want to make a difference in the world -- and that our mission is one of many means to that end.

15. That donors are investors. They invest in doing good. They expect their investment to prosper, or they'll invest somewhere else.

16. That we earn the donor's trust by reporting on our accomplishments and efficiency.

17. That individual donors respond to our appeals for personal reasons we can only guess at.

18. That asking a donor why she or he gave a first gift to us will likely lead to a amazingly revealing conversation.

19. That fundraising serves the donors' emotional needs as much as it serves the organization's financial needs.

20. That we are in the "feel good" business. Donors feel good when they help make the world a better place.

21. That a prime goal of fundraising communications is to satisfy basic human needs such as the donor's need to feel important and worthwhile.

22. That the donor's perspective defines what is a "major" gift.

23. That every first gift can open a door to an entirely new world for the donor, through participation in our cause.

Read the full article here:
http://www.txnp.org/articles/articles.asp?ArticleID=8754

On a related note, you can read the Donor Bill of Rights here:
http://www.afpnet.org/ka/ka-3.cfm?content_item_id=9988

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Survey question: Do you have a plan to secure 2nd gifts from new donors?

I encourage you to drop by FundRaising Success to answer this question:

Does your organization have a specific strategy in place to secure second gifts from new donors? What do you feel is its most important component?

Not in the mood to click?
To send responses/comments, e-mail: mbattistelli@napco.com. Responses should not exceed 100 words. Your ideas, insights and opinions could be published in an upcoming issue of FundRaising Success magazine.

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Do fundraisers have friends?

I have frequently joked with my peers that we no longer have any friends because the world is divided into peers, prospects and donors. For example, none of my high school friends answer my calls anymore since I volunteer to lead the school's alumni fundraising efforts for my class!

These quotes, courtesy of AFP Dallas, brought me some hope....

"Only your real friends will tell you when your face is dirty."
- Sicilian Proverb

"The friend is the man who knows all about you, and still likes you." - Elbert Hubbard, The Notebook, 1927

"A good friend is cheaper than therapy." - Author Unknown

"A friend knows the song in my heart and sings it to me when my memory fails." - Donna Roberts

"You can always tell a real friend: when you've made a fool of yourself he doesn't feel you've done a permanent job."
- Laurence J. Peter

"Friends are those rare people who ask how you are and then wait for the answer." - Author Unknown

"There are big ships and small ships. But the best ship of all is friendship." - Author Unknown

"A true friend is one who thinks you are a good egg even if you are half-cracked." - Author Unknown

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