Embed Size (px)
Citation preview
CULTIVATING AND SUSTAINING YOUR
ANNUAL FUND
Presented by:Jerry F. Smith, CFRE
President and CEOJ. F. Smith Group
Northeast Annual Giving ConferenceMarch 21, 2012
“Annual giving is the custom of
making a gift-a-year to an
institution in which one has
faith…”
-Benjamin Franklin
Purpose of an Annual Fund
• Build a habit of giving
• Identify new prospective donors
• Decrease “nickel and dime” fund-raising• Produce restricted and unrestricted gifts for
new or ongoing projects
• Increase volunteer base
Purpose of an Annual Fund
• Extend base of regular, continuous support from both new and established donors
• Promotes giving over a donor’s lifetime, not just a one-time gift
Purpose of an Annual Fund
• Can become the main source of unrestricted support for an organization
Planning for an Annual Fund
• Draft a philosophy statement• Determine projects to be funded• Set goals• Give the annual fund a name and its own
“brand”• Seek administrative and board approval for all
of the above items• Develop a timeline and budget
Set goals for the Annual Fund
• Base a goal on what you can raise, not the dollar amount of the projects
• Set goals for:– Number of donors– Number of first-time donors– Number of parent donors– Number of grandparent donors– Number of alumni donors
Components of an Annual Fund
• Personal solicitations = 25% of goal
• Special events = 50% of goal
• Phone/direct mail/email/online giving = 25% of goal
Online Giving Statistics• 63% of Americans have given or plan to give online
this year
• More than 50% said that they would NOT have taken further action if they had not first visited the charity’s web site
• 2001= $550 Million
• 2009= $15.48 Billion
– Fastest growing form in the world
Online Giving Research• Online givers were better LIFETIME givers
• Age does not matter
• A higher percentage of donors 45 to 54 and 55 to 64 give online than offline
• 25% of donors aged 65 and older give both online and offline
Online Giving Research• 77% of nonprofits had at least one online gift of $1,000
or more last year
• The median online gift above $1,000 was $3,500 in 2009
• Also, a higher percentage of donors with annual incomes greater than $50,000 and beyond $100,000 give online than offline
• 33% of online donors will switch channels to become offline donors while only 3% of offline donors switch to online giving
Median Lifetime Giving Dollars
Regular Givers Online Givers
School A $ 485 $ 1,105
School B $ 115 $ 654
School C $ 213 $ 325
School D $241 $390
School E $405 $ 925
From Research by Peter Wylie
Online Giving Across Age Decades
• On average across the 5 schools, regular givers in their 50s gave $445; online givers in their 50s gave $1,451.60
Direct Mail• Increase the number of mailings
• Record response levels from each mailing
• Increase segmentation
• Avoid “Dear Parent” salutation
• Hand sign the letters
• Use first class stamp
• Make envelope say “open me!”
• Thank donors immediately
Phonathon
• Follow first direct mailing with phonathon
• Consider using students
• Train callers; provide a script
• Fill out pledge card while on the phone
• Send thank you notes immediately• Follow up with a letter specifying amount of pledge
Annual Fund FindingsHow is your Annual Fund currently doing this year?
Source: Third Annual Annual Fund Survey by The Woolbright Group; http://www.woolbrightgroup.com/newsletter/2011/April/survey.html
(Based on responses from 43 Advancement Professionals)
Annual Fund FindingsHow is your Annual Fund currently doing this year?
Trend Lines
• We’re staying steady this year in our dollars:12% (2011), 16% (2010), 7% (2009)
• Our dollars are up:84% (2011), 65% (2010), 22% (2009)
• Our dollars are down:5% (2011), 19% (2010), 70% (2009)
Annual Fund Findings
Leadership Gifts - We Are Witnessing:
Annual Fund Findings
Trend Lines
• Increase in total leadership gifts: 70% (2011), 72% (2010), 19% (2009)
• Decrease in total leadership gifts: 5% (2011), 11% (2010), 52% (2009)
• On par with last year in total leadership gifts: 26% (2011), 17% (2010), 30% (2009)
Leadership Gifts - We Are Witnessing:
Annual Fund FindingsCompared to last fiscal year, I anticipate our Annual Fund dollars to be in the following range by the end of this current fiscal year:
Annual Fund FindingsCompared to last fiscal year, I anticipate our Annual Fund dollars to be in the following range by the end of this current fiscal year:
Trend Lines
• Level (no growth): 7% (2011), 5% (2010), 11% (2009)
• Decrease by 1-5%: 2% (2011), 5% (2010), 26% (2009)
• Decrease by 6-10%: 0% (2011), 5% (2010), 22% (2009)
• Decrease by more than 10%: 0% (2011), 0% (2010),
22% (2009)
• Increase by 1-5%: 51% (2011), 57% (2010), 7% (2009)
• Increase by 6-10%: 30% (2011), 24% (2010), 11% (2009)
• Increase by more than 10%: 9% (2011), 3% (2010),
0% (2009)
Annual Fund Findings
In terms of our online gifts, we are witnessing:
Annual Fund FindingsIn terms of our online gifts, we are witnessing:
Trend Lines
• An increase in the number of online gifts: 76% (2011), 78% (2010), 52% (2009)
• A decrease in the number of online gifts: 5% (2011), 8% (2010), 8% (2009)
• No change in the number of online gifts: 18% (2011), 14% (2010), 40% (2009)
Thank You!FUND-RAISING
Rules of the Road to SuccessBy: Jerry Smith, CFRE
If you would like a Free copy of my book
Please send your name and mailing address
