All Things Annual Giving

Annual Giving Programs in a Small Office Environment

In the current economic climate, every day and every dollar count.  In smaller, community nonprofits, there are few resources available to hire a full development staff, and rarely even an experienced development director. 

But how then do maintain a thorough and adequate database, create the message, produce the materials, or touch the donors as often or in the way you need to be able to in order to attract the resources that will enable your success?

First of all, assess what you need in order to succeed.  The list of items itself will help you identify things you may be able to outsource that you hadn't previously considered.  Check online to see what resources you can gather that are available in the broader marketplace.  Then determine what resources may be available for free and what may be discounted if you ask. 

Then look at your existing staff.  How much ownership has your program staff taken for the actual existence of the positions they occupy?   Whoa!  These are tough words - and indeed they are.  But in a depressed economy, it's just wrong to think that anyone can hold a job without taking responsibility for its funding.  Those who do are soon referred to as "former employees".

While time management is important in a larger organizational structure, it is tantamount to survival in a smaller nonprofit.  Reassess your own schedule and think about places where you might devote more time to working through the prospects for more funding.

Finally, go to your board!  This is both the course of last resort - and the first.  The entire board needs to take ownership of fund development and bring the resources the organization needs to succeed.  Go to them for personal commitments and a division of responsibilities on the board that will account for meeting every dollar in your budget. 

Granted, most boards of small nonprofits will resist - and strongly - but if you are tactful, yet direct, reinforcing, yet transparent - they have little choice but to respond or turn over the reins to those who will. 

Brian Lacy & Associates has years of experience helping small nonprofits manage through the challenges of limited staff and other resources.  Contact Brian Lacy & Associates today to learn more about how we can help.

Using Online Giving to Improve Annual Fund Efficiency

by Andrew Thompson

Earlier this week, we discussed how your expense budget affects the efficiency of your program.  For years now, directors of development and annual giving programs have been striving to increase the volume of gifts that come via online contributions. 

Hopefully, your institution long ago made sure that visitors to its site had a clear and easy path to making a gift online.  Likewise, any donor making an online contribution should be inputting enough data that you will have the opportunity to continually cultivate a relationship with that donor pro-actively in the future. 

By no means, however, is that the end of the story.  In future posts, we'll explore a variety of ways that you can make your online giving program more effective, i.e. specifically to produce more revenue, but here we'll only touch on that point as we stay focused on the efficiency of your program.  You need no daily reminder that these are tough times.  But, these ARE challenging times in the world of fundraising, and you have to come to work every day with both a sense of urgency and the need for greater efficiency.

In doing so, improving revenue numbers will certainly help.  Remember, we're looking at the ratio of the cost it takes to raise every dollar as the method of defining efficiency.  Thinking in those terms really helps to properly frame the problem.  Ask yourself, which methods of fundraising bring in the most at the least cost?  Phonathon?  Direct mail?  Online giving?  In person visits? 

As a former planned giving director, I was constantly reminded to tell our team how efficiently we raised money.  At the American Cancer Society, we liked to say it costs 22-23 cents to raise a dollar, but less than 7 cents to raise "major gifts" and even less to raise legacy and planned gifts. 

Over time, however, I came to understand that there were many different ways of calculating these numbers, and thus, many different results as well.  So the question is then, how does online giving truly compare to other methods of raising money, and even more to the point, how can it be done in a a way that helps to produce a more efficient annual giving program?

Here are two important points to consider.

First, you probably already know that online giving can appear much more efficient than it actually is.  The blessing of having someone you did not solicit make a gift nonetheless, carries with it the burden of not knowing what s/he responded to.  It also means there is no group or category from which s/he emerged and can necessarily easily be placed.  

Thus, if you want to replicate the result, you have to spend time and energy figuring out what it was that got his attention and use it to target others who would do the same.  But because s/he was unique in this way, you will find yourself targeting more or less unique behaviors which can be very time consuming and inefficient. 

Achieving greater efficiency online demands an understanding that these attracted but unsolicited donors respond in much the same way as any other online customers.  Hence, the process of search engine marketing has been your ally and you can make it work even more to your benefit with proper optimization techniques. You will gain efficiency in online giving when you match the reasons these donors are looking to the messages they can find and will see when they are attracted to your site.

The second point to help you in this process is to always keep in mind that the efficiency is largely gained after the donor has made an online contribution rather than before.  You now have a tremendous source of new information and an opportunity to cultivate a long term and growing relationship with him or her because you made that first gift possible online.

Right at the outset, you have a unique chance to capture some additional funding with reminders that their gifts may be eligible for a match from an employer.  Immediately after a gift is committed, you can redirect the donor to another page where they can determine the eligibility and sign up instantly for the match.  I've worked with Brian Lacy and Associates on this in the past, and it is a tremendously effective way to improve giving results before you've even had contact with the donor himself.

Online giving opens a diverse array of giving options to pursue.  Carefully crafting your program to enable and improve your overall efficiency can solve many of the difficult problems you may face in a challenging economic environment. 

Effective Alumni Relations Boost Annual Giving (Part 3 of a 3 Part Series)

Boost Annual Giving Results in This Flagging Economy (Part 3)

By Brian Lacy

NOT MERELY YEAR OF GRADUATION, BUT SCHOOL OR ANOTHER SMALLER UNIT

Focusing on alumni for just a second, remember to organize your annual giving not around years of graduation, but also according to the school or a smaller unit from which they graduated. Alumni can easily rebuff appeals from a larger entity they feel less affinity to, but will have a tough time refusing an appeal from the individual school or program from which they graduated. This is especially true for adult students such as those who attended an executive MBA program.

ONCE IS NOT ENOUGH

Interested in a no-brainer? Try repeating your campaign every three to five months. lf, for example, yours is a Big Ten school that just beat a competitor to become the national champion, repeating the annual fund immediately afterward so that a many delirious alumni and friends can give again, is a solid strategy.  Try to secure two gifts each year from your alumni.  More than 50% of annual donors will give at least twice a year if solicited well.

HIT THEM WHERE THEY LIVE

And no, it's not their wallet or purse, but their heart. A number of years ago, after I had  graduated from the School of Journalism at the University of Oregon, I received a call from a student. "Do you remember those typewriters you used in Basic News Writing?" (Remember, this was a long time ago.) "Well, we're trying to replace them. Can we count on you to help?" Of course I remembered those typewriters, and of course they could count on me.

WHY WAIT UNTIL THEY GRADUATE?

If the job of the Admissions office is to recruit young alumni, then the job of the college is to begin working with freshmen so that they understand their role as alumni. Rather than waiting until they graduate, begin involving current students now. While they might not be in a position to give, they are in an excellent position to ask. Put them on the phone. Many schools ask seniors to contribute their first gift while still a student. Teach a giving tradition to students. A program that gives students an opportunity to say thanks, and helps to create a stronger campus culture of philanthropy and community is very desrable.

INTEGRATE MEDIA

One excellent way to increase response is to integrate your institution's annual fund appeals across multiple media. Rather than relying just on postal mail or telephone, precede your annual fund campaign with some articles in the institution’s publications. A letter from the president that announces the campaign but does not make the ask. Use your Web site to reinforce and even expand key messages. Remember that integrating across multiple platforms will increase giving.

 

Enhancing Annual Giving and Annual Fund Even While the Economy Lags

Boost Annual Giving Results in This Flagging Economy (Part One)

For most independent schools, colleges and universities, the annual fund is the backbone of fundraising strategies, for a number of reasons:

First, the annual fund is the simplest and most common of all fundraising appeals, and as such, it's a good gauge of an institution's overall ability to raise dollars. After all, if a college cannot manage its annual giving program, it is likely to have a very hard time succeeding with more complex fundraising strategies like capital campaigns and major donor solicitations.

Second, annual giving is an important litmus test of alumni satisfaction - if giving is up, or steady, it's likely that alumni are reasonably satisfied. At the same time, a publicized malfeasance, the firing of a beloved football coach, or a change to the institution's name--can negatively impact giving if not handled correctly.

Third, alumni participation is also a key criterion that foundations evaluate when considering your grant request. Their reasoning is simple: if alumni don't support the school, why should we?

Finally, many independent schools and private colleges need the dollars generated through alumni giving to bolster their annual operating budget.

For these and other reasons, a strong annual fund program is essential. So, let's explore some options for enhancing your annual fund response. While some ideas will be simple and others more complex, at least one or two is certain to help you reach and even exceed your annual goal.

However, before we can discuss how to enhance your annual giving, two elements of a mindset need to be clear:

First, a successful annual fund is not automatic. Too many colleges and universities look at the annual fund as a spigot that they can turn each year (open the valve and cash comes out). This kind of attitude will, over time, lead to a decline in giving. The annual fund is best considered as an expression of a larger relationship. If the relationship is solid and of benefit to donors, then the fund dollars will come.

Second, the institutional need or desire for these dollars does not automatically equate to a donor giving. Many studies have indicated that donors are asked to give to nonprofits more than 400 times each year.  The myth that people don't give because they aren't asked is indeed a myth.  The real reason most people don’t give is the need isn't compelling. Donors must understand your need, both logically and emotionally. Donors give out of a sense of involvement.

Come back soon to read some ideas for strengthening your annual giving effort.

USPS New Postal Service National Change of Address Link Rule

Direct mail marketing remains one of the most powerful and economic ways to reach a target audience— delivering your message directly to your prospects through the U.S. mail for pennies. The beauty of direct mail marketing is that it’s a medium that works regardless of budget—big or small.

Effective November 23, 2008 the United States Postal Service now requires address lists for standard mail to be cleared of incorrect addresses every 95 days, rather than every 185 days as previously required.

The new ruling, announced earlier this year, is meant to decrease the number of undeliverable mail pieces processed by the post office. The rule has been expanded to Standard (nonprofit discount rate) mailings. It originally only applied to First Class mail.

In order to meet the new “Move Update” standards, a mailer must update its addresses using methods approved by the Postal Service. The method recommended by most is the National Change of Address (NCOA) update method.

To comply, mailers must update their mailing lists to account for recipients who have moved every 95 days at minimum. For example, a mailing entered on Nov. 23 must bear names and addresses that were updated no earlier than August 20.

Nonprofit organizations that do not update addresses they mail within 95 days, verified by submission of a Certificate of Move Update Compliance (PS Form 6014), may be charged First Class postage on their entire mailing.

Contact Brian Lacy (or by phone at 860-478-9291) for assistance with inexpensive NCOA Screening and other data cleansing services.

Successful Annual Giving Programs for Health Care

Annual Giving is the underlying foundation for all successful development programs. 

This is as true in health care, for academic medical centers, and other nonprofits. Great annual giving work is a team effort. So, plan on sending or bringing your development team to a seminar on Successful Annual Giving Programs.

Here's an opportunity to get special bonus discount for group registrations.

 

• What: Successful Annual Giving Programs for Health Care
• When: February 2-4, 2009
• Where: Hilton Houston Plaza/Medical Center
• Who: Annual Fund Officers, Directors, gift planning officers, key volunteers.

Looming Economic Crisis Dominates Annual Giving News

A weak economy and its effect on annual giving programs, continues to dominate the headlines and news stories relating to fundraising through annual fund efforts.

Creativity and Motivation Counter a Negative Econony
By Jason Fisher
Phonathons are a unique animal in the world of higher education fundraising. Along with being the dominant donor retention and donor acquisition tool, they are also the most suitable medium with which colleges and universities can ...
On the Line...with Jason Fisher - http://phonathonblogger.typepad.com/ontheline/


Churches see drop in giving
Dallas Business Journal - Dallas,TX,USA
“Everyone is kind of holding their breath this month of December” because as much as 30% of total annual giving to worship centers comes in the last month, ...

Annual Giving Campaign Planning with Purpose

Annual giving programs come with a unique set of challenges.  Especially when preparing and planning an upcoming campaign, there is a premium on a governing framework of concepts that should be kept in mind in creating the right message and gameplan.  We commend the following for your own thought:

Trust Donors' Desire to Give to Your Cause: Seeking charitable donations is, despite rumors to the contrary, quite different from attracting sales in a for profit company.  This is especially true in difficult economic times.  But, at any time, people buy for different reasons than they give.  They also invest for different reasons than they give.  Understanding donors charitable motivations is at the heart of any successful effort to raise money in the nonprofit arena. 

Know the Value and the Burden Accompanying Annual Giving: The annual fundraising effort drives database management, donor segmentation, and then major gift development and planned giving.  In short, it is the functional engine for all fundraising activity of the organization.  While it's not expected to raise as much as major gifts will, it carries with it the burden of providing new prospects by sifting thorugh the mountains of data that can be accumulated via an annual fund campaign. 

Reaching Donors Through Email

Using Email in a Weak Economy

Compared to other forms of communication, email is extraordinarily efficient. No doubt, you are making the most of the use of email already, but think about increasing your email usage, particularly in a bad economy, as you avoid postage, telecommunications and labor costs.

Below are a few specific ideas:

1. Employ an Effective Email Service Provider to make sure you cover all the bases you need in running email campaigns. One way of expanding your reach through is with a Network for Good account.  Network for Good ties in multiple nonprofit organizations with its mailing programs to reach more potential donors in a short period.