Fundraising In Uncertain Times

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Fundraising In Uncertain Times

• Centre on Philanthropy, Bermuda
• Power of One Conference
• February 27, 2009
• Sharilyn Hale, M.A., CFRE

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Session Overview

• Define uncertain
• Scan the environment the research
• Review fundraising fundamentals
• Explore six key strategies for fundraising in
  uncertain times
• Link back to our purpose as fundraisers and
  community builders

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Defining uncertain times

• Economic
• Political
• Social
• Environmental
• Organizational
• Actual vs. psychological/
• perceived
• Riding the waves and cycles

4
Recent Headlines

• The Chronicle of Philanthropy
• More Charities Report a Drop in Gifts This Year,
  Report Says
• 29 of Americans Plan to Cut Giving This Year
• 100,000 Nonprofit Groups Could Collapse in Next
  Two Years, Expert Predicts
• The Royal Gazette, Bermuda
• Donations Hurt by Recession Salvation Army
• Charities Feel the Pinch
• Economic Downturn Affecting Charities

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Scanning the Fundraising Environment Bermuda

• What are charities in Bermuda seeing and feeling?
• What are donors and volunteers saying and
  sharing?
• How are you feeling? Has your giving changed?

6
Scanning the Fundraising Environment North
America

• Macro/Micro impact type and maturity of
  organization, program components, geographic
  region, constituents
• Many charities facing increased demand for
  services, as budgets are tighter.
• Very little fat to trim in organizational
  budgets
• Reduced income from endowments/investments
• Corporate giving and sponsorship reduced
• Individual donors giving smaller amounts
• Delayed giving decisions
• Campaigns to take longer, pledge periods longer
• Increased prominence of social benefit causes

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The Research

• Giving USA Foundation Study released Fall 2008,
  What Happens to Giving During Recessions and
  Economic Slowdowns?
• Giving typically continues to grow, but at a
  slower rate. But, during long recessions,
  overall giving can decline by 2.7
• While charitable giving is impacted by
  recessions and/or economic slowdowns, it's not by
  nearly as much as one might expect.
• Indiana Centre on Philanthropy Philanthropic
  Giving Index (PGI)
• Fundraising climate toughest since 1998
• Expectations Index (which rates the confidence of
  fundraisers) down to 66.1 from the average 88.9
• By putting their fundraising fundamentals in
  order, non profits can gear themselves to
  effectively address critical social needs that
  only will grow as the economic storm rises.
  Giving USA

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Become a learner

• In times of change, learners inherit the Earth,
  while the learned find themselves beautifully
  equipped to deal with a world that no longer
  exists.
• philosopher Eric Hoffer

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Be Grounded in the Fundraising Fundamentals

• Fundraising 101 and the core body of knowledge
• Organizational mission and values
• Ethics and accountability
• Relationship building
• Professionalism
• If youre doing these things well, keep doing
  what
• youre doing. If youre not, regroup and start
  again.

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6 Strategies to consider during Uncertain Times

• 1) Cultivate and communicate more than ever
• Identify top donors, hold them close
• Keep telling your story/making your case
• Keep donors up to date on the issues, tell the
  truth
• Acknowledge their pain and fear
• Dont be a fair weather friend! Keep talking to
  those who stop giving
• Explore technology for ways to communicate
  quickly and inexpensively
• Key resource Keep Your Donors, Ahern Joyaux,
  2008

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6 Strategies to consider during Uncertain Times

• 2) Understand your constituents
• Who are your supporters and how are they
  impacted? Some may be impacted more or
  differently than others
• Continue with donor acquisition
• Research industries, and people, who are doing
  well
• Utilize and acknowledge this information in your
  fundraising strategy and communications
• Key resource Building Donor Loyalty, by Sargent
  Jay, 2004

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6 Strategies to consider during Uncertain Times

• 3) Keep asking (but dont be pushy)
• Theres still money out there
• Encourage family support board members,
  volunteers, staff, 100 participation as goal
• Demonstrate the continued/increased need
• Ask for deferred gifts or pledges (estate gifts)
• Ask for volunteer time
• Make it easy for your donors to maintain their
  connection to your organization
• Reflection Dont be stuck in negativity,
  acknowledge uncertainty then inspire hope

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6 Strategies to consider during Uncertain Times

• 4) Collaborate
• Seek out likely and unlikely partnerships that
  demonstrate strengths of each partner
• Share resources and problem solve together
• Share and expand mutual bases of support
• Its not just about saving costs but about impact
  
• Example Community based art group and a non
  profit housing organization 1 dinner event
  instead of 2. Greater net revenue, increased
  awareness and cross-over programming opportunity.
  

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6 Strategies to consider during Uncertain Times

• 5) Evaluate then adjust your fundraising program
• What part of your program delivers the greatest
  results?
• What is working? What are you good at?
• What can you stop doing? Start doing?
• What can you do better or differently?
• How are you demonstrating impact, outcomes and
  accountability to your donors?
• Key metrics cost per dollar raised, average gift
  amounts, response rates, number of new donors,
  return on investment, responses from donor surveys

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6 Strategies to consider during Uncertain Times

• 6) Look forwardthis too shall pass and you want
  to be ready
• Dont panic, thoughtfully respond
• Prudently revise your financial projections
• Investigate what uncertainty reveals about your
  fundraising program (poor donor relations,
  inadequate tools and systems, dated programs)
• Dont apologize for administration costs.
  Organizational capacity helps you weather the bad
  times and respond in the good.
• Be cautious about cutting fundraising budgets,
  but link resources to results and areas of growth
• Communicate internally board, staff and
  volunteers

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Remembering our purpose

• Philanthropy is
• Love
• Community
• Compassion
• Aspiration

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Give donors a reason to keep giving
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What donors want

• I want to be recognized and valued for my gift
• I want to feel good about giving
• I want to know how my money will be used and what
  difference it will make
• I want to be inspired
• I want to feel involved, a part of something
• I want to be impressed, so I can tell others
  about the cause and recruit them to support it
• I want you to ask my opinion
• I want to know that you listen to me
• From Ken Burnetts The Zen of Fundraising 89
  Timeless Ideas to Strengthen and Develop your
  Donor Relationships

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Now more than ever

• Never doubt that you are changing the world
  when you feed a family, educate a child, display
  a great work of art, or simply drop a dollar into
  a collection can.  I have no doubt that Bermudas
  community will rise to the challenge and this
  time next year we will speak of our charitable
  communitys extraordinary accomplishments.
• Cris Wineinger

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Useful Resources for Uncertain Times

• Resources for Charities Coping with a Troubled
  Economy, Chronicle of Philanthropy
  http//philanthropy.com/financial_crisis/
• Fundraising Survival Kit, Association of
  Fundraising Professionals, http//www.afpnet.org/k
  a/ka-3.cfm?folder_id2545content_item_id24683
• Fundraising Fundamentals for the Economic
  Downturn, Charity Village, http//www.charityvilla
  ge.com/cv/archive/acov/acov09/acov0903.asp
• Fundraisers Newsyletter, Simone Joyaux,
  http//simonejoyaux.com/e107_plugins/content/conte
  nt.php?content.501
• Recession Watching is Not an Option, a thought
  piece by Tony Elischer, http//www.thinkresource.o
  rg/sites/default/files/Recession20-20Watching20
  is20Not20an20Option_0.pdf

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• Sharilyn Hale, M.A., CFRE is the Director of
• Philanthropy at YWCA Toronto, leading
• Canadas largest campaign in support of
• affordable and supportive housing. An
• enthusiastic mentor and educator, Sharilyn
• has a keen interest in womens philanthropy
• and community and international
• development.
• She is a Director of CFRE International, the
• only internationally recognized credential for
• fundraising professionals, and is Chair of the
• International Job Analysis Task Force. A
• member of the Association of Fundraising
• Professionals (AFP) with undergraduate
• degrees in Theology and Psychology,
• Sharilyn also holds an MA in Philanthropy
• Development and is a contributing author to
• the International Encyclopedia of Civil

• Sharilyn Hale, M.A., CFRE
• Watermark Philanthropic Advisory Services
• Toronto Ontario
• 416-567-3002
• sdhale_at_rogers.com