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What Executive Directors Desperately Need to Know About Fundraising

Ron and Sue Rescigno

February 12, 2013

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What the Executive Director/President/CEO Desperately Needs to Know About Fundraising

Ron and Susan Rescigno

Scenario

Your Solicitation is just

like everyone else’s…

…Whose fault is that??

The current state of the

economy looms large in the

minds and words of the

average executive director

and president

If you are pointing to the

economy to explain financial

shortcomings, you’re

skipping the real problem

and the real solution

“It’s the economy… that’s why the results weren’t what we hoped for.”

Let’s take a step back

How much of your day do you spend

fundraising??

0-25% of time

26-50% of time

51-75% of time

76-100% of time

The essence of most non-profits is...

FUNDRAISING

Then shouldn’t you be spending the better

part of your workday on this function?

Major Sources of Non-profit Revenue

1. Corporate

2. Foundations

3. Government

4. Individuals

Corporate

•65% gave more than in ’07, ’08, and ’09

combined

•40% increased giving by 10%

•53% are giving more now than before

the recession in 2007

•Blaming lack of corporate contributions does not hold up!

Source: Committee Encouraging Corporate Philanthropy 2010:

:

FOUNDATIONS: a misplaced blame

The average foundation has reached deep

into its pockets to minimize the pain of

leaders of non-profits.

…so stop complaining!! Foundations have

been, and are continuing, to do their part.

-Foundation Center & Daring to Lead Survey

the GOVERNMENT is set in its giving ways

It is what it is… and you can’t change it!

Government contracts = Executives being more

involved in policy activities

Budget Shortfall = less government funding

Government funding pain will not go away with

any economic recovery

Where, then, will the

average executive

director of an

average non-profit

have to go to

make the

difference…?

That’s right… INDIVIDUALS

Their support makes

any cutback by the

government,

corporations, or

foundations seem

insignificant.

80% of all philanthropic

contributions come

from individuals.

This current economic time is

different from those in the past in that INDIVIDUAL giving is down.

How do YOU explain the relative weakness of individual giving at this time?

Relationship Building is Vital

To RAISE MONEY the Executive director needs to:

•really like to meet new people

•understand their donors’ motivations

•communicate passion

•make the ask and want to chat about what the donor is

interested in

Relationship Building is Vital

If you can’t meet these requirements, your

fundraising will continue to fall.

60% of high net worth donors who stop

giving to an organization do so because they

feel a “loss of connection” with the

organization.

So if this is you… RETHINK your strategy!

How to Build your Donor relationships

Get to KNOW your donors on a personal

level

Donors are willing to give greater amounts

when they know you are grateful to receive.

Grant writing is not the answer here

Invest your time in the INDIVIDUAL

Remember… quality results in quantity.

Individual giving is down because it’s the Board’s Fault…They’re Weak

This is not true. An effective

fundraising board does not

just happen...

…UNLESS the executive

director (YOU) takes the

time and effort to cultivate

this skill

Train your board members

to enjoy fundraising to avoid

negative attitude and to

promote strong fundraising

Planned

&

Deferred Givers

Major Givers

Annual/Recurrent Givers

Occasional Givers & Event Participants

The

GIVING

Pyramid

The Board and YOU… it can be tricky

PROBLEM

•Executive time invested in working with board

members is low

•16% of executives reported spending fewer

that 5 hours per MONTH on board related

activity

•39% of executives spend between 5-10 hours

per month on board related activities

The Board and YOU… it can be tricky

SOLUTION

Recruit motivated board members

Articulate fundraising expectations

Provide the board with a clear and reviewable plan

Offer training to board members

…after all, board members rarely have the time to do the leg work necessary to build an entire individual donor base

Executive Director Time Management

We know you’re busy… but if you

protest that you have 1,000 things

to do and not enough time,

remember: 999 of those things

cannot happen without money!

Spend your time:

Building public awareness

Meeting new potential

donors

Making asks and upgrade

requests

How many actual in person visits

with potential donors have you made

in the last fiscal quarter??

It is your responsibility to

prioritize fundraising and

make the painful choices of

re-allocating how you use

your time

The Average ED spends under 5%

of time on individual fundraising… a

prescription for disaster!

Failure to invest time directly affects giving

60% of high net donors stopped giving because they felt a loss of connection

While it is true that the recession is making us more careful about giving, donors have not stopped giving entirely

then… why aren’t they giving to you??

Because EDs don’t spend the time cultivating individual donors?

Are other parts of their job too demanding?

Because it’s quicker to write a corporate, foundation, or government grant application than networking with prospects?

Is there a lack of training and infrastructure for individual fundraising?

Know THIS

•½ of chief fundraisers plan to leave their jobs in 2 years or less

•More than ½ of EDs reported they cannot find qualified people to

run their fundraising staffs

What is the problem here..?

…possibly a lack of philanthropic tradition??

•If this is true, should we blame the ED?

•Do YOU expect fundraisers to possess contradictory traits?

•Being BOLD, ASSERTIVE, and GOOD at asking for money

doesn’t mean you’re also going to be good at writing a grant

There are different skills that require different fundraiser types

Steps Charity Leaders Can Take

•Spread accountability for fundraising throughout

the organization

•Elevate the fundraising profession by promoting

it as a rewarding career

•Strengthen and diversify the talent pool

•Train board members more thoroughly,

emphasizing partnerships with the charity’s EDs

•Take a more active role in the fundraising

process… if needed, take a class; hire counsel

to guide you and your team

“Charities that succeed at

fundraising differ from those that

struggle in one key way: those

that succeed have leaders who

are deeply involved in

fundraising.” –W. Sturtevant

Thank You! We’d love for you to share some of your ideas or secrets for success as far as what you do to build relationships and engage with your donors, as well as any questions.

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