FROM PERIL TO PROFIT WHAT DONORS SAY WILL TURN FUNDRAISING AROUND IN THIS ECONOMY. This Seminar Draws From…. Donor-Centered Fundraising Philanthropy in a Turbulent Economy Communication Is the Ask. How Profit Is Made in Fundraising. Not-for-Profits can only spend fundraising profit .
Philanthropy in a Turbulent Economy
Communication Is the Ask
Not-for-Profits can only spend fundraising profit.
Profit is the remainder between the value of the gift and the cost to get it
The profit margin widens the longer a donor gives; therefore, extending donor retention equals earning higher profit
a manageable number of donors, encouraged to stay loyal and inspired to give generously makes more money for a NFP than does a volume of donors which is so large that it has to be handled through mass marketing
large-volume fundraising is the norm
donor attrition is over 90%, with 65% of contributors never making a second gift
constant, high volume acquisition is deployed to make up for the loss of large numbers of unprofitable or barely profitable donors
this drains the fundraising budget, leaving too few resources for donor retention strategies
DONORS ARE ON THE MOVE option?
DONORS’ CHANGING GIVING BEHAVIOR option?
2002 TO 2007
THE DONOR-CENTERED SOLUTION years prior to economic decline
A March/09 review of NFP websites found that only 43% stated their mission & goals and only 4% identified how they use charitable donationsAre Donors Noticing the Shift to a Donor-Centered Model?
UNIQUE SELLING PROPOSITIONS FOR PROSPECTS AND DONORS
RESTRICTED vs UNRESTRICTED GIVING stated their mission & goals and only 4% identified how they use charitable donationsCase Study
PHILANTHROPY in a TURBULENT ECONOMY stated their mission & goals and only 4% identified how they use charitable donations
PROFILE OF SURVEY RESPONDENTS stated their mission & goals and only 4% identified how they use charitable donations
54.3% are between 45 and 64 years of age
GIVING PROFILE OF RESPONDENTS volunteer experience in last 12 months
43.7% support 3-5 causes
all respondents and top 5% by total giving
HOW THE ECONOMY HAS AFFECTED RESPONDENTS AND THEIR PHILANTHROPY
“But I Did Everything Right” alter their terms due to the economic downturn?Case Study
FUNDRAISING OPPORTUNITIES alter their terms due to the economic downturn?
1=not at all motivating 7=highly motivating
1=definitely would not 7=definitely would
Respondents under 35 years of age
Respondents 35 years of age and older
actively religious Americans are more generous donors and more active volunteers
they are also more likely to maintain or increase their giving during the recession
Religious conviction decreases with age which may have implications on giving and volunteering in the futureReligiosity and Its Impact on Giving in this Recession
69% of donors under the age of 35 are professionals, academics, owners, managers or entrepreneurs
47% earn over $70,000 (52% of donors between 25 and 34, who are less likely to still be in school)
70% are not supporting dependents
more open to giving to causes for the first time
more likely to give through technology-driven appealsYounger Donors: A Hidden Fundraising Gem
How to Communicate With Your Donors between $40K and $129K
THE LESS INFORMATION YOU GIVE YOUR DONORS AT ANY ONE TIME, THE MORE THEY WILL ABSORB AND RETAIN
Communication from the Right Person
on NFP websites
through Guidestar and other sites that rate NFP performance
by reading print brochures, newsletters
by perusing fundraising solicitation materials
What donors get:
What donors want:
COMMUNICATION IN A WORLD OF INDEPENDENTLY-MINDED DONORS
IN ELECTRONIC COMMUNICATION, MORE THAN EVER YOUR JOB IS TO GET TO THE POINT!
ONLINE COMMUNICATION IS MUCH MORE IMPORTANT THAN ONLINE GIVING
THE ULTIMATE “PUSH” COPY
It’s OK for donors to have second thoughts about donating online…just not about donating
Fundraisers Who Evolve from Gatekeeper to
Customer Service Agent Will Reap the Rewards
CYGNUS APPLIED RESEARCH, INC. online…just not about donating
CHICAGO / TORONTO / YORK, UK