Managing Relationships:Donors, Development, and Data

By Caroline H. Joss

November 14, 2008

Why I consider myself the Generational Bridge to somewhere…..

• We have to continue integrating new technology into our relationship building: to manage donors, to maximize revenues, and to make our organizations more effectively serve our constituents.

• It’s old school combined with new school.

• We have to build that support, that platform, that relationship which is part of our responsibility to our donors and supporters.

• One way to build it is with data.

• The other way is development.

What’s the point?

• We have to do what we do, in order for our donors and supporters to do what they need to do - give money and resources - in order to meet the needs of our constituents, the people you and I serve. Your specific mission, whatever it may be.

Specifically I will address

• How the economic downturn will affect your organization, with information gleaned from the Center for Non-Profit Advancement, as well as the Foundation Center, and Washington Regional Grantmakers.

• I will concentrate on Foundation and Individual donors.

What I will address (cont.)

• I will make the case for why individual donors matter (most).

• Explain a bit about data management.

• Give some suggestions for taking care of your donors and continuing to make a case for your organization.

• Address other fundraising avenues to consider.

What I will not address:

• Where to get tickets to the Inauguration.

• How you can get a job in the Cabinet.

What’s going on?Data from the Washington Grantmakers

October 2008 survey to members:

• Four out of five respondents (80%) experienced a drop in assets from 2007-2008.

• More that half (57%) anticipate that their 2009 grants will be the same or only a bit less that ‘08.

• Nearly half (47%) anticipate making fewer but larger grants in 2009.

• Half plan to increase funding for general operating support.

Giving in 2009

• Some grantmakers are considering refocusing or reviewing their giving strategies by:

• Focusing more on their core issues. Increasing multi-year commitments, and advocacy efforts.

• Scaling back (regrouping) is occurring. • Weinberg Foundation = example.

What’s the bottom line?

• Grantseekers will find the funding environment increasingly more competitive.

• Grantmakers are re-thinking their priorities and giving practices as well:

• Some foundations are allowing grantees to convert restricted grants to general operating funds…

Of those that will continue to give the same or more grant money in 2009:

• They will be giving fewer grants but those that are given will be higher dollar amounts.

• They will probably concentrate on those organizations they have funded previously.

• Good news if you are already receiving money, challenging if you are trying to get new foundation grants.

The game has changed.

• There will be changed circumstances for non-profits as a result of the financial shake-down of the last month(s).

• Will not be able to rely on some previous players in the equation - like Fannie and the Freddie - whose combined giving to the Washington area was about $47 million.

• Who else? Banks and other financial services which are gone or have been re-shaped.

Any Good News here?

• The good news is your base of individual donors.

• Why? Ordinary Americans are generous and will continue to give (especially those that give in the mid-range.)

• Individual donors are the foundation of your giving program…..

However….

• The key to any good development program is to diversify, diversify, diversify.

• Don’t have all your eggs in one basket.

• Current donors v. new donors. (Retention v. Acquisition.) They already support your mission, and will continue to make a difference.

How data management is key to your relationship with donors and

part of the life cycle of an organization

These are the stages of data management in an organization:

• None

• Some

• One

Why is data organization so important?

• Consolidates information in one place.

• Data is relational (all things are related and can be cross-referenced.)

• Everything is documented: donations, events, volunteering, visits, etc.

• Can be used to track very specific things.

Why is that good?

• Report capabilities give you abilities to look at the data quickly.

• Interface with other software for ease - word-processing, accounting, and on-line.

• Data can then be used as a tool to evaluate and track the effectiveness of your fundraising program.

• Make changes, keep on the course...

The new economic reality dictates our needs

• We need to get and keep our data in order.

• We need to continue to work with our donors.

• Relationship Building has to get stepped up another notch in times like this.

• How do we do that?

How do we do that?

• Letting donors feel ownership of the mission and a connection to the organization.

• Providing a platform for success. • Involving the donors in being part of the solution.• Being positive overall. No “sinking ship”

mentality. • Keeping your donors informed.• Using effective and compelling language in your

communication and outreach, especially now.

Thank your donors.

Quickly but correctly

Nicely

Profusely

Expanding your donor vision:Other avenues to consider

• Planned giving

• Multiple year pledges

• Collaboration with others: local and federal government agencies, other non-profits.

• Corporates and special events.

• Acquiring donations using new technologies.

Keep informed and active

• Don’t sit back and roll over. Become aware of the issues and take a stand.

• Join others in similar organizations and form coalitions.

• Take an advocacy role - be vocal.

• Be available to step up to the plate.

The Transformative Power of continuing to do the Right Thing even in hard times.

• “Conscience do Cost.” It may not be easy or feel good all the time.

• Remember this is a symbiotic and collaborative relationship, between the organization, the donors, and the people that you serve.

• Your organization is merely a conduit between the donors and your constituents.