Back to Basics: Raising the Money You Need to Do Your Good Work

These are tough times to be fundraising. The economic downturn has affected just about everybody, whether through layoffs or reduction in income or simply a sense of extreme worry and caution about the future. Nonetheless: in order to do your good work, to fulfill your mission, to serve your clients and your community, you're going to have to raise money - and now is the season to be asking. Here are some important facts to keep in mind as you work on your campaign:

• $308 billion in charitable donations were made in the U.S. in 2008, despite the global economic crisis. Though their ability to give may be more limited, Americans will continue to give.
• 70% of all Americans contribute annually to nonprofit organizations they care about. This means that 7 out of 10 people you know feel it is important to support charitable causes.
• 82% of all charitable gifts come from individual donors. Grants from foundations provide 12%, and corporations give a paltry 5%. Fundraising events are labor-intensive projects that cost on average $1.30 for every $1 raised. So: in order to use your staff and board time strategically, be sure to focus on asking individuals.

And it's good to remember that there are just three basic things that motivate giving:

1. Somebody asked. It's as simple as that. Religious institutions always top the list of funds received - because they ask, every week.
2. The donor has a relationship with the asker. People give money to people - people whom they know and respect.
3. The donor wants to be part of the work. Donating money is a way to participate actively and make a difference in the world. People love to give away money to causes they care about - especially when you can demonstrate real impact. And giving connects them to a community with shared values.

Remember that fundraising is an exchange. Your donors give one thing of value - their money, in exchange for another thing of value - the good work of your organization. Your job is to educate your donors about the impact of your programs and services, learn how they want to be involved, provide donors with meaningful opportunities to participate, build lasting relationships with them, connect them with community, and thank them for their support.

Above all, return to your mission. Ask yourself what drew you to the work, what makes you feel passionate about your organization, why it's important, how it has changed people's lives. This is what you want to communicate to your donors. Reach out with integrity with your fundraising, knowing that giving to righteous causes makes people feel good.

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.