restoring your fundraising from jalopy to roarin’ hot rod
DESCRIPTION
Presentation to the National Association of Automobile Museums. Content is basics of fundraising.TRANSCRIPT
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?
Crandall, Croft & Associates,Restoring Your Fundraising Program
How Did We Survive w/o eHow?
With VIDEO!
Crandall, Croft & Associates,Restoring Your Fundraising Program
How To Manage an Automobile Museum
How Did We Survive w/o eHow?
Crandall, Croft & Associates,Restoring Your Fundraising Program
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?
Crandall, Croft & Associates,Restoring Your Fundraising Program
Q1: Is Your Garage Big Enough to Raise Big Bucks?
YES! Small shops can raise millions with right tools, determination and effort!
Crandall, Croft & Associates,Restoring Your Fundraising Program
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?
Crandall, Croft & Associates,Restoring Your Fundraising Program
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
Crandall, Croft & Associates,Restoring Your Fundraising Program
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
Crandall, Croft & Associates,Restoring Your Fundraising Program
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?
Crandall, Croft & Associates,Restoring Your Fundraising Program
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
Crandall, Croft & Associates,Restoring Your Fundraising Program
Your Job as a Fundraiser
• Cultivate and deepen relationships• Utilize effective fundraising practices• Maintain the highest ethical standards
17
Crandall, Croft & Associates,Restoring Your Fundraising Program
Why Do People Give?
Crandall, Croft & Associates,Restoring Your Fundraising Program
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
Crandall, Croft & Associates,Restoring Your Fundraising Program
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
Crandall, Croft & Associates,Restoring Your Fundraising Program
Check Your View of Fundraising
• Great Fundraising is Rooted in Relationship
• Giving is built on Trust• You Steward Relationships
on Behalf of Your Museum
Crandall, Croft & Associates,Restoring Your Fundraising Program
#1 Reason Why People Give?
They were Asked!
Crandall, Croft & Associates,Restoring Your Fundraising Program
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
Crandall, Croft & Associates,Restoring Your Fundraising Program
Step 3: Body Work (Obtaining New Donors)
Crandall, Croft & Associates,Restoring Your Fundraising Program
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
Crandall, Croft & Associates,Restoring Your Fundraising Program
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
Crandall, Croft & Associates,Restoring Your Fundraising Program
Acquiring New Donors
This is NOT THE GOLD, but
Finding Gold Prospects
Crandall, Croft & Associates,Restoring Your Fundraising Program
Step 4: Finish the Interior (Retaining Donors)
Crandall, Croft & Associates,Restoring Your Fundraising Program
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
Crandall, Croft & Associates,Restoring Your Fundraising Program
Donor Cycle
Cultivate
Solicit
Thank
IdentifyRust Spots
Crandall, Croft & Associates,Restoring Your Fundraising Program
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)
Crandall, Croft & Associates,Restoring Your Fundraising Program
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
Crandall, Croft & Associates,Restoring Your Fundraising Program
What Else Must You Do?
Hint: Most donors “lapse” after their first gift
Crandall, Croft & Associates,Restoring Your Fundraising Program
What Else Must You Do?
ASK AGAIN!
Hint: Most donors “lapse” after their first gift
Crandall, Croft & Associates,Restoring Your Fundraising Program
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
Crandall, Croft & Associates,Restoring Your Fundraising Program
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)
Crandall, Croft & Associates,Restoring Your Fundraising Program
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
Crandall, Croft & Associates,Restoring Your Fundraising 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
40Adapted from James M. Greenfield, Evaluating and Managing the Fund Development Process,
2nd ed., New York, NY: John Wiley & Sons, 1999.
Estate Giving
Major Giving
Special/Major Giving
Repeat Annual Giving
First-timer Annual Giving
Level of Relationship
Interest
Committed
Spend Your Time Here!
AndHere!
Crandall, Croft & Associates,Restoring Your Fundraising Program
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
Crandall, Croft & Associates,Restoring Your Fundraising Program
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.
Crandall, Croft & Associates,Restoring Your Fundraising Program
Step 6: Add Some Bling
Crandall, Croft & Associates,Restoring Your Fundraising Program
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
Crandall, Croft & Associates,Restoring Your Fundraising Program
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)
Crandall, Croft & Associates,Restoring Your Fundraising Program
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!
Crandall, Croft & Associates,Restoring Your Fundraising Program
Step 7: Enter the Show(Put it Together in an Annual Plan)
Pyramid of Giving
48Adapted from James M. Greenfield, Evaluating and Managing the Fund Development Process,
2nd ed., New York, NY: John Wiley & Sons, 1999.
Estate Giving
Major Giving
Special/Major Giving
Repeat Annual Giving
First-timer Annual Giving
Level of Relationship
Interest
Committed
Plug in the Tools
Crandall, Croft & Associates,Restoring Your Fundraising Program
Acquiring New Donors•Patron Visits/Tours•Membership Invitations
•Peer to Peer Solicitation•Special Events
•Car Shows/Public Events•Specific Campaigns
•__________________•__________________
49
Crandall, Croft & Associates,Restoring Your Fundraising Program
Keeping Donors
•Effective Stewardship •Communications – Magazines/Email
•Renewal Solicitations – Direct Mail•Membership Renewal – Direct Mail/Phone
•Special Events•Donor Recognition Program
50
Crandall, Croft & Associates,Restoring Your Fundraising Program
Major Gifts
•Prospect Research•Cultivation: Tours, Visits, Special Events
•Individual Solicitations•Recognition Club for Annual Major Gifts
•Naming Opportunities•Special Projects/Capital Campaigns
51
Crandall, Croft & Associates,Restoring Your Fundraising Program
Planned Giving
•Prospect Research•Planned Giving Program
•Direct Mail/Newsletter Stories•Recognition Club for Estate Gifts
•Naming Opportunities•Endowment
52
Crandall, Croft & Associates,Restoring Your Fundraising Program
Create a Calendar
Crandall, Croft & Associates,Restoring Your Fundraising Program
Get Out and Turn Some Heads!