Keep Talking: Communicating with Your Donors

Maintaining positive contact with donors throughout the year is an essential part of your fundraising program. Here are a few suggestions for you as you navigate these challenging times using today's complex and diverse technology:

• Communicate good news in a timely fashion. Don't hold off on good news until it's time for your regular newsletter. If something great happens, let people know right away using email and press releases - this could include an award, an exciting new program, or simply a story that lets people know good things are happening to the people you serve.

• Communicate bad news, too. Many of you may have hesitated to let your donors know how this economic downturn is affecting your agency - but if we truly regard donors as investors and partners, then we'll also be willing to communicate bad news. Let them know if you've had to layoff staff or cut back on programs. Better that they find out directly and accurately from you than secondhand; plus you'll find donors are both sympathetic and much more willing to help if they're not surprised.
  
  
• Let them know all the ways they can support your agency. Offer a variety of opportunities for your donors to participate. Ask if they'll join your Advisory Board. Invite them to a volunteer work day. Solicit their thoughts and suggestions about your programs directly by phone or through surveys. They may not be able to help, but they will be pleased that you asked - and they will feel more connected to your agency.
  
  
• Let donors know they are your investors and partners. Ultimately, your organization will become healthier and more sustainable when your donors move from viewing their giving as an annual transaction to seeing their investment as an ongoing commitment and opportunity to participate in furthering your mission.
  
  
• Use all of your communication tools strategically. There are so many ways to communicate these days: your website, email, Facebook, newsletters, press releases, phone calls, letters. Make sure your website is easily navigable, with up-to-date graphics and great visuals. Use email for weekly newsletters plus reminders about upcoming events and news announcements; use Facebook to try to spread the word to folks with event evites, good videos, and photographs with donors tagged. But be sure to still use the old-fashioned, more personal methods - letters and phone calls - most especially when thanking people for their contributions of time and/or money.
  
  
• Whatever your message, frame it in gratitude. Preface every communication with continued thanks to your donors for their investment in your work. And make sure your appreciation is specific to their gift and its impact. Above all, remember that fundraising is about building relationships, and expressing appreciation is an essential element. You can never thank people enough!

Hard Times & Fundraising Challenges

Guidestar has just reported that over half of charitable organizations in a recent survey experienced a drop in donations between March and May of this year, and 36% have cut their budgets. And the president of the Foundation Center is predicting that foundation grants will drop at least 9% in 2009, while individual giving declines as well.

The message for all nonprofits: assume that the current downturn in charitable giving is going to continue for some time, and act accordingly. Remember what it felt like back in the 1970's and 1980's, when agencies struggled to make ends meet from month to month? It's time to get used to financial uncertainty once again. It's also time to be strategic and creative about your strategies. Here are five tips for you as the fall fundraising season approaches:

1. Set lower, more manageable goals. Break your big dollar goals into smaller parts. This makes it easier to grasp, both for your donors and for those who will be soliciting funds. It also makes people feel that smaller donations can really make a difference. And consider setting a goal to simply increase the number of donors.
2. Use matching challenges. Raise money first from your Board of Directors and/or loyal donors, then challenge people to match it. Folks feel good when they know every dollar they contribute will be doubled.
3. Get full and active participation from your board. It is absolutely essential that every member of your board make a significant (based on their means) annual contribution! And it also essential that your board actively solicits donations from friends, family, and acquaintances.
4. Make it easy for people to donate. Offer easy options for monthly and/or quarterly donations. Make sure the Donate button is prominent on your website and email notices. Have membership/donation materials available at every event. Include remit envelopes in every snail mail newsletter.
5. Use your staff and volunteer time efficiently. In this time of staff layoffs and budget cutbacks, don't waste your time on more labor-intensive fundraising events or on writing speculative grants. Focus on making personalized asks to your most loyal supporters, clients, and volunteers. Remember: the quickest, most cost-effective way to raise funds is to personally ask someone you know who cares about your organization.

Above all, stay in touch with your donors - and keep asking for their support. Ask in a way that acknowledges the economic downturn, and at the same time stresses how important donor contributions are right now to further your mission and goals.

Good News, Bad News, Part Two: 2009 to Date

If you thought 2008 was a bad year for nonprofits, reports about the first six months of 2009 won’t make you feel any better.

A new study by Bridgespan (from a survey of 100 nonprofit leaders) indicates that, compared to the last six months in 2008: the percentage of nonprofits laying off staff has increased from 28% to 41%; the percentage of organizations making programmatic reductions has ballooned; and many agencies have had to draw down on their reserve funds in order to continue functioning.

Almost all (92%) were experiencing serious effects from the economic downturn, with 45% saying that their financial situation had worsened in the first 6 months of 2009. More agencies have had their funding cut, and the magnitude of the cuts has increased. At the same time, demand for services has increased. Significantly, every kind of funding source has cut their levels of support – including corporations, government, private foundations, and individuals. Revenues from special fundraising events have also been affected.

Small nonprofit organizations (with budgets of less than $1 million) have been hit the hardest - 70% worse as opposed to medium organizations at 38% and large organizations at 41%. Larger agencies have been able to cut overhead more easily, and they also have more months of operating expense coverage in their reserves.

All of these statistics add up to one thing: this is no quickly passing storm. We’ve seen 9 months of challenging times for nonprofits, and it’s not likely things will change soon. Every nonprofit organization will need to plan accordingly, and assume that fundraising will continue to be difficult throughout 2009.

The good news is that 33% of the surveyed organizations reported that funders have stepped up giving to meet the current need. This country has a long-standing history of supporting charitable organizations; despite this unprecedented economic downturn, donors have continued to give to organizations they care about even if at reduced levels. And many nonprofits are working creatively and strategically to protect core programs and come up with new solutions in the face of the economic downturn.

The message is that now is a time when it’s essential to continue to communicate actively with your funders – including corporations, foundations, and individuals. Keep them in the loop about what’s going on financially, and how you are continuing to do your good work. Engage your Board actively in assessing programs, staff, and funding. Let your donors know about your current strategies to balance your budget while protecting core programs. Hope for the best, but assume the worst is a long ways from over.