what executive directors desperately need to know about fundraising
DESCRIPTION
Our webinar will focus on addressing the essence of a non-profit leader’s job function – fundraising. This is ironic because the overwhelming majority of executive directors we’ve surveyed tell us it’s the part of the job they enjoy the least. We’ll focus on why EDs struggle with this most essential of tasks and what they can do to significantly direct sufficient time and effort to ensuring organizational sustainability.TRANSCRIPT
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What Executive Directors Desperately Need to Know About Fundraising
Ron and Sue Rescigno
February 12, 2013
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What the Executive Director/President/CEO Desperately Needs to Know About Fundraising
Ron and Susan Rescigno
Scenario
Your Solicitation is just
like everyone else’s…
…Whose fault is that??
The current state of the
economy looms large in the
minds and words of the
average executive director
and president
If you are pointing to the
economy to explain financial
shortcomings, you’re
skipping the real problem
and the real solution
“It’s the economy… that’s why the results weren’t what we hoped for.”
Let’s take a step back
How much of your day do you spend
fundraising??
0-25% of time
26-50% of time
51-75% of time
76-100% of time
The essence of most non-profits is...
FUNDRAISING
Then shouldn’t you be spending the better
part of your workday on this function?
Major Sources of Non-profit Revenue
1. Corporate
2. Foundations
3. Government
4. Individuals
Corporate
•65% gave more than in ’07, ’08, and ’09
combined
•40% increased giving by 10%
•53% are giving more now than before
the recession in 2007
•Blaming lack of corporate contributions does not hold up!
Source: Committee Encouraging Corporate Philanthropy 2010:
:
FOUNDATIONS: a misplaced blame
The average foundation has reached deep
into its pockets to minimize the pain of
leaders of non-profits.
…so stop complaining!! Foundations have
been, and are continuing, to do their part.
-Foundation Center & Daring to Lead Survey
the GOVERNMENT is set in its giving ways
It is what it is… and you can’t change it!
Government contracts = Executives being more
involved in policy activities
Budget Shortfall = less government funding
Government funding pain will not go away with
any economic recovery
Where, then, will the
average executive
director of an
average non-profit
have to go to
make the
difference…?
That’s right… INDIVIDUALS
Their support makes
any cutback by the
government,
corporations, or
foundations seem
insignificant.
80% of all philanthropic
contributions come
from individuals.
This current economic time is
different from those in the past in that INDIVIDUAL giving is down.
How do YOU explain the relative weakness of individual giving at this time?
Relationship Building is Vital
To RAISE MONEY the Executive director needs to:
•really like to meet new people
•understand their donors’ motivations
•communicate passion
•make the ask and want to chat about what the donor is
interested in
Relationship Building is Vital
If you can’t meet these requirements, your
fundraising will continue to fall.
60% of high net worth donors who stop
giving to an organization do so because they
feel a “loss of connection” with the
organization.
So if this is you… RETHINK your strategy!
How to Build your Donor relationships
Get to KNOW your donors on a personal
level
Donors are willing to give greater amounts
when they know you are grateful to receive.
Grant writing is not the answer here
Invest your time in the INDIVIDUAL
Remember… quality results in quantity.
Individual giving is down because it’s the Board’s Fault…They’re Weak
This is not true. An effective
fundraising board does not
just happen...
…UNLESS the executive
director (YOU) takes the
time and effort to cultivate
this skill
Train your board members
to enjoy fundraising to avoid
negative attitude and to
promote strong fundraising
Planned
&
Deferred Givers
Major Givers
Annual/Recurrent Givers
Occasional Givers & Event Participants
The
GIVING
Pyramid
The Board and YOU… it can be tricky
PROBLEM
•Executive time invested in working with board
members is low
•16% of executives reported spending fewer
that 5 hours per MONTH on board related
activity
•39% of executives spend between 5-10 hours
per month on board related activities
The Board and YOU… it can be tricky
SOLUTION
Recruit motivated board members
Articulate fundraising expectations
Provide the board with a clear and reviewable plan
Offer training to board members
…after all, board members rarely have the time to do the leg work necessary to build an entire individual donor base
Executive Director Time Management
We know you’re busy… but if you
protest that you have 1,000 things
to do and not enough time,
remember: 999 of those things
cannot happen without money!
Spend your time:
Building public awareness
Meeting new potential
donors
Making asks and upgrade
requests
How many actual in person visits
with potential donors have you made
in the last fiscal quarter??
It is your responsibility to
prioritize fundraising and
make the painful choices of
re-allocating how you use
your time
The Average ED spends under 5%
of time on individual fundraising… a
prescription for disaster!
Failure to invest time directly affects giving
60% of high net donors stopped giving because they felt a loss of connection
While it is true that the recession is making us more careful about giving, donors have not stopped giving entirely
then… why aren’t they giving to you??
Because EDs don’t spend the time cultivating individual donors?
Are other parts of their job too demanding?
Because it’s quicker to write a corporate, foundation, or government grant application than networking with prospects?
Is there a lack of training and infrastructure for individual fundraising?
Know THIS
•½ of chief fundraisers plan to leave their jobs in 2 years or less
•More than ½ of EDs reported they cannot find qualified people to
run their fundraising staffs
What is the problem here..?
…possibly a lack of philanthropic tradition??
•If this is true, should we blame the ED?
•Do YOU expect fundraisers to possess contradictory traits?
•Being BOLD, ASSERTIVE, and GOOD at asking for money
doesn’t mean you’re also going to be good at writing a grant
There are different skills that require different fundraiser types
Steps Charity Leaders Can Take
•Spread accountability for fundraising throughout
the organization
•Elevate the fundraising profession by promoting
it as a rewarding career
•Strengthen and diversify the talent pool
•Train board members more thoroughly,
emphasizing partnerships with the charity’s EDs
•Take a more active role in the fundraising
process… if needed, take a class; hire counsel
to guide you and your team
“Charities that succeed at
fundraising differ from those that
struggle in one key way: those
that succeed have leaders who
are deeply involved in
fundraising.” –W. Sturtevant
Thank You! We’d love for you to share some of your ideas or secrets for success as far as what you do to build relationships and engage with your donors, as well as any questions.
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