Restoring Your Fundraising from Jalopy to Roarin’ Hot Rod

Restoring Your Fundraising from Jalopyto Roarin’ Hot Rod

NAAM Conference 2012Robert Croft, CFRE

www.slideshare.net/rncroft

7 Easy Steps!

First a Quick Survey @ You

About Me: Car Restoration

Thank Goodness for eHow!

Crandall, Croft & Associates,Restoring Your Fundraising Program

How Did We Survive w/o eHow?



With VIDEO!


How To Manage an Automobile Museum



Session Objectives: Restoration 101

• Overview of Basics of Fundraising• Acquiring New Donors• Keeping Current Donors• Raising Major Gifts• Today’s Goal: Putting It Together in an Annual

Plan

7 Easy Steps!

Step 1: Inspect, Inspect, Inspect

Is this the state of your current fundraising efforts?


Q1: Is Your Garage Big Enough to Raise Big Bucks?

YES! Small shops can raise millions with right tools, determination and effort!


Q2: Are You Truly Committed to Fundraising?

• Starts with commitment from Board– Including leadership giving and participation in

fundraising activities• CEO Actively Involved in Fundraising– Who is primarily responsible?

• Culture of Philanthropy• Volunteer Fundraisers– Volunteers make the best fundraisers!

Q3: Evaluate Your Current Fundraising?


Tool: Conduct a Development Audit

• An internal assessment of your overall fundraising program

• Examines governance, human capital, development systems, procedures, donor relations and fundraising approaches

• It is an essential tool to measure the gap between an organization’s current fund raising efforts and established best practices in the industry


What an Audit will Accomplish:

Identify areas of strengths in fundraising

Identify areas of weaknesses in fundraising

Identify current giving patterns and donor preferences

Provide clarity on areas for improvement

Audit Resources:www.slideshare.net/rncroft - Detailed Presentationwww.guymallabone.com/resources - Audit Tool


Fundraising Review Questions

• Is the fundraising program diverse?• Are fundraising efforts systematic and

consistent?• Are we utilizing established industry “best”

practices?• What approaches work best for this

organization?


Step 2: Repair the Frame: (Fundamentals of Fundraising)

Pyramid of Giving

16Adapted from James M. Greenfield, Evaluating and Managing the Fund Development Process,

2nd ed., New York, NY: John Wiley & Sons, 1999.

The Art of Fundraising is a systematic effort to move individuals up the pyramid of commitment

Estate Giving

Major Giving

Special/Major Giving

Repeat Annual Giving

First-timer Annual Giving

Level of Relationship

Interest

Committed


Your Job as a Fundraiser

• Cultivate and deepen relationships• Utilize effective fundraising practices• Maintain the highest ethical standards

17


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

Connection to Mission


Check Your View of Fundraising

• “Begger” or “Enabler”?• Giving is an Exchange of Values:

– “One way you show appreciation to donors is by asking them to give.”

– Million $ Donor

• You enable donors to meet their personal desires (satisfaction, faith, reciprocity, recognition) by matching their interests with your organization’s needs


Check Your View of Fundraising

• Great Fundraising is Rooted in Relationship

• Giving is built on Trust• You Steward Relationships

on Behalf of Your Museum


#1 Reason Why People Give?

They were Asked!


Common Rust Spots on the Frame

• Improper Gift Acknowledgement• Lack of Donor Management

Software for Tracking Relationships

• Lack of an Annual Fundraising Plan– No consistency– No intentional cultivation

process

Within 48 Hours is

Gold Standard


Step 3: Body Work (Obtaining New Donors)


Finding New Donors

• Start with any connections to your museum

• Make a list of all your constituent groups– Consider how to

reach individuals in each group Hank Rosso’s Concentric Circles


Tools for Acquiring New Donors

• Special Events– Shows, Exhibits and/or Marquee Event

• Annual Fundraising Campaign– Utilizing volunteer solicitors

• Membership Program– Capture Contact Info During Visit – send personal

invitation a few weeks later• Capital Campaign/Endowment Campaign

People Give to People


Acquiring New Donors

This is NOT THE GOLD, but

Finding Gold Prospects


Step 4: Finish the Interior (Retaining Donors)


The Fundraising Challenge

• The Fundraising “Bucket”– Nonprofits lose 5 donors for

every 6 they obtain - Fundraising Effectiveness Project

– A 10% increase in donor retention can increase the lifetime value of the donor database by up to 200 percent. - IU Center on Philanthropy


Donor Cycle

Cultivate

Solicit

Thank

IdentifyRust Spots


Tool for Keeping Donors: Stewardship

• Appropriately acknowledge gift• Share impact of gifts– Newsletters, Magazines, Email, Personal letter

or visit• Focus on stewardship to build relationship

and trust– Host a Stewardship Event to thank donors– Phone to thank for gift (Board Members Best)


Donor Stewardship

“78% of individual donors said they would definitely or probably give again to a charity that provided them with prompt, personal gift acknowledgement, followed sometime later with a meaningful update on the program they had funded.”

Penelope BurkThanks! A Guide to Donor-Centered Fundraising


What Else Must You Do?

Hint: Most donors “lapse” after their first gift


What Else Must You Do?

ASK AGAIN!

Hint: Most donors “lapse” after their first gift


Tools for Renewing Donors:Asking Again

• Direct Mail Renewal Appeals– Utilize lift notes

• Annual Membership Renewal– Direct Mail + Phone

• Special Events• Peer to Peer Solicitation


Tool: First Time Donor Process

• Sample Process:– Welcome letter/packet (within 7-10 days or with

thank you letter)– Thank you call– Credibility piece (within 2 months)– Newsletter– Best ever renewal package (within 3 months)


Tool: Monthly Giving Program

• Monthly Donors:– Generate more $$ at less cost– Are incredibly loyal• EFT Donors give 5-7 times longer than check writers• Typically continue giving even during tough times

“Adopt an Auto”

Program


Step 5: Rebuild the POWER (Major Gifts)

39Crandall, Croft & Associates,Restoring Your Fundraising Program

The Pareto Principle

Donors Gifts10-20%

80-90%

80-90%10-20%

Pyramid of Giving



Estate Giving

Major Giving





Interest

Committed

Spend Your Time Here!

AndHere!


Tool: Steps to Major Gifts

• Identify Prospects– Database Review/Wealth Screening– CEO and Board Prospect Review– Prospect Rating Committee

• Plan Cultivation– Right Person– Take time to Discover Donor’s Interests, Goals

“60% of 7 figure gifts came from people who had never given more than $500.” - Midsize Community College


Tool: Steps to Major Gifts

• Solicitation– Have a valid need or reason for major gift– Match donor’s interests with specific need– Go with a team– Practice– LISTEN to the Donor– Don’t chicken out…make the ask and be QUIET.


Step 6: Add Some Bling


Tools: Add Some Bling

• Corporate Sponsorship Program• Planned Giving Program – Gift Annuities, Simple Bequests and Life Insurance

• Donor Recognition Program– Giving Clubs: Annual Giving, Major Giving– Named Legacy Society to recognize planned gift

donors• Host an annual induction/recognition event

– Recognize in Annual Report


Tools: More Bling

• Social Media– Facebook: Create community– Foursquare: Offer “check in”

specials– YouTube: Post videos of

interest (like a behind the scenes look at a car restoration)


Even More Bling…

• Put QR Codes on everything– Link to Donation page on response

envelopes, brochures and newsletters

• Utilize QR Codes on exhibits or in newsletters that take patron to a video

• QR Code on membership or event/show invitation to take directly to registration page

Possibilities are Endless!


Step 7: Enter the Show(Put it Together in an Annual Plan)

Pyramid of Giving



Estate Giving

Major Giving





Interest

Committed

Plug in the Tools


Acquiring New Donors•Patron Visits/Tours•Membership Invitations

•Peer to Peer Solicitation•Special Events

•Car Shows/Public Events•Specific Campaigns

•__________________•__________________

49


Keeping Donors

•Effective Stewardship •Communications – Magazines/Email

•Renewal Solicitations – Direct Mail•Membership Renewal – Direct Mail/Phone

•Special Events•Donor Recognition Program

50


Major Gifts

•Prospect Research•Cultivation: Tours, Visits, Special Events

•Individual Solicitations•Recognition Club for Annual Major Gifts

•Naming Opportunities•Special Projects/Capital Campaigns

51


Planned Giving

•Prospect Research•Planned Giving Program

•Direct Mail/Newsletter Stories•Recognition Club for Estate Gifts

•Naming Opportunities•Endowment

52


Create a Calendar


Get Out and Turn Some Heads!

News & Politics

Restoring Your Fundraising from Jalopy to Roarin’ Hot Rod