Sqeezing Blood From A Turnip: Fundraising in Tough Times

How to Squeeze Blood from a Turnip: Fundraising in Tough Times

Robert Croft, CFRE, Partner/Consultant, Crandall,

Croft & Associates

and

Jennifer Renner, Development Supervisor,

CANI

from the Northeast Indiana Chapter of the Association of

Fundraising Professionals

December 10, 2010www.slideshare.net/rncroft

How to Squeeze Blood from a Turnip: Fundraising in Tough TimesRobert Croft, CFRE, Partner/Consultant, Crandall, Croft & Associates andJennifer Renner, Development Supervisor, CANI

AFP Northeast Indiana Chapter

Disclaimer: “You can't squeeze blood from a turnip”

Meanings:– A turnip cannot be coaxed,

squeezed, or cajoled into producing blood. All efforts at obtaining blood from this vegetable will be futile. - Wikipedia

– You can only get from people what they are willing or able to give. The American Heritage® New Dictionary of Cultural Literacy, Third Edition.



Is this Your Approach?



How is Your Fundraising?



Don’t Panic!

“The strategic and tactical decisions made by charities will have more influence on their fortunes than will the recession itself. Charities have more control than they think they do, as long as they FOCUS on the fundamentals of their programs, do not panic and FOCUS on the long term.” - Advancing Philanthropy, Jan/Feb 2009



Today’s Objectives

Current State of FundraisingWhy Donors Give/Don’t GiveIdentify 3 Turnips You Must Squeeze (or

slice) to be successful at fundraising



State of Fundraising: Cautious Optimism

Joint survey of 5,000 nonprofits released last week by the Nonprofit Research Collaborative (includes AFP):– 36% of charities reported an increase in giving

during the first 9 months of 2010 compared with 23 percent during the same period in 2009.

– About 37% reported a decrease in giving so far in 2010, compared with 51% a year ago.



State of Fundraising: Cautious Optimism

The 2010 Holiday Giving Survey conducted by Edge Research on behalf of Convio, reveals: – 74% of adults plan to give this holiday season.– Average total gifts of $281.– Online donations -$6 billion, 30% > than last Dec.– Giving is emotional.



Giving USA 2010

Total Giving in 2009 was $303.75 Billion

83% of all giving is from Individuals (incl. Bequests)



Why do people give?



Affluent Donors – BoA 2010 Study

Top motivations for giving were: – Being moved by how their gift can make a

difference (72%).– Feeling financially secure (71%).– Giving to an organization that will use their

donation efficiently (71%).– Supporting the same causes or organizations

annually (66%).

2010 Bank of America Merrill Lynch Study of High Net Worth Philanthropy



Affluent Donors – BoA 2010 Study

Top reasons for why donors stopped giving: – Too frequent solicitation/organization asked for

inappropriate amount (59%).2008 #1 Reason was “no longer feel connected to org”

– Decided to support other causes (34%).– Household circumstances changed (e.g.,

financial, relocation, employment) (29%).– Organization changed leadership or activities

(29%).

2010 Bank of America Merrill Lynch Study of High Net Worth Philanthropy



Fundamentals Matter

Three broad areas (or Turnips) that are the difference between mediocre fundraising and successful fundraising– Culture of Philanthropy– Effective Communications– Be “Donor Centered”



Turnip #1

Culture of Philanthropy



Culture of Philanthropy

Starts at the top– Director / CEO– Board

Belief in the Mission– Would you buy what you are selling?– Passionate

No Silo mentality– Entire org understands importance of fundraising

Transparency/Accountability



Turnip #2

Effective Communications






Your stories should be compelling

UNFORGETTABLE

Tell me your story!



Unforgettable!




Emotional – Puts a “face” on your serviceCompelling – Shows a valid needResponsive – Clear call to actionEasy – For donors to respondMultichannel – Meets donors where they are



Bad, Bad, BAD….

If you can substitute the name of any other charity in your communications

If “needs” are focused more on organization, and economic woes than on those you serve

No specific call to actionNo clear, easy way to respond



Turnip #3

Be Donor-Centered



Be Donor-Centered

Donors are human beingsNeed to be engagedConnect emotionally to your cause/storyRationally evaluate your credibilityNeed to be Asked



Donors are Human Beings

Desire warm acknowledgment– Donors appreciate being appreciated

Expect stewardship– Want to know their gift was put to good use

Build Relationships– Create meaningful experiences (it should be a pleasure to

be a donor)



Donor Cycle



Conclusion

Successful fundraising in good times and bad is about :– Mastering fundamentals– Creating a culture of

philanthropy– Communicating

effectively– Treating donors like

human beings



Resources

Association of Fundraising Professionals- www.afpnet.org- www.afpnein.org

Paul Clark Nonprofit Resource Center- www.acpl.lib.in.us/nrc

Chronicle of Philanthropy- www.philanthropy.com

The Center on Philanthropy at IU- www.philanthropy.iupui.edu

Documents

Sqeezing Blood From A Turnip: Fundraising in Tough Times