100 New Donors in 90 Days: A Step-by-Step Process

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100 New Donors in 90 Days:

A Step-by-Step Process

David A. Mersky

October 17, 2012


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Advising nonprofits in:

• Strategy

• Planning

• Organizational Development

www.synthesispartnership.com

(617) 969-1881

[email protected]

INTEGRATED PLANNING


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www.mission.do


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Today’s Speaker

David A. Mersky Founder and Managing Director

Mersky, Jaffe & Associates

Assisting with chat questions: Jamie Maloney, Nonprofit Webinars

Hosting:

Sam Frank, Synthesis Partnership

©2012 Mersky, Jaffe & Associates

The State of Philanthropy in

America Today:

A View from the Field


What do we actually know?

The Economy

• Worst economy since Great Depression

• Low consumer confidence

• Historically, charitable giving correlates to M1

(Money Supply or disposable cash) not Dow Jones

• Charitable giving decreases less than 1% for every

100 points the Standard & Poor’s 500 index drops,

according to a study by the Center on Philanthropy


Giving During Recessions

• Decline in first-time donors

• Loyal donors continue to give

• Religious affiliation and giving increase

• During the Great Depression bequest giving

increased to 70% of all substantial gifts, well above its

usual level of 10-20%

• Complex, tax-advantaged planned gifts decline

• Smaller gifts are less tax-advantaged, so current stock

market gains or losses are less relevant


The number of 501(c)(3) organizations, 2002–2011

2011 charitable giving

Total = $298.42 billion

Total giving, 1971–2011

Data are rounded.

Total giving as a percentage of Gross Domestic Product, 1971–

2011(adjusted for inflation)

Types of recipients of contributions, 2011

Total = $298.42 billion

Q:

How do you get your

piece of the pie?


A: • A Compelling Case

• A Comprehensive Plan

• A Strong Board

• A Systematic Approach


Segment Your Donor Database

1. Sort donors by

A. Date of most recent gift

B. Amount of most recent gift

2. Current contributors

A. Have you thanked them sufficiently

B. Read http://merskyjaffe.com/10-essential-

articles/ways-to-thank-a-donor/


http://merskyjaffe.com/10-essential-articles/ways-to-thank-a-donor/













How Are You Doing?

• How many donors on your database?

• How many gave in 2010?

• How many 2010 donors gave in 2011?

• What is the rate of renewal?

• How many 1st time donors in 2011?

• What is the total number who gave in 2011?

• WHERE ARE YOU IN 2012?



3. LYBUNTs—The Key to 100% Renewal

A. Analyze each donor for recency—i.e., month, year

B. Solicit them in most appropriate way—how they

gave the last time

– Direct mail

– Email

– Telephone

– Face-to-face

C. Attend to first time donors

D. Review LYBUNTS monthly



4. PYBUNTs—The Key to Resurrection

A. Further segment by highest gift, number of gifts and

cumulative giving

B. For each one who contributed $1,000 or more,

create a “Campaign of One” to re-engage

– Who can provide information

– Who should be assigned

– Design a set of tactical moves

– Review http://merskyjaffe.com/knowledge-

archive/webinars/major-gift-moves-management/


http://merskyjaffe.com/knowledge-archive/webinars/major-gift-moves-management/










A:

A Strong Board…

because leadership

trumps all


12 Principles of Governance

That Power Exceptional Boards

Responsible Boards Competent stewards focusing on fiduciary oversight, compliance with

law, act with financial integrity and operate effectively and ethically.

X

The Source of Power Thoughtful, intentional, active and engaged, knowledgeable and

communicative

=

Exceptional Boards Active engagement and independent decision making, open and honest

with each other and the CEO, passionately challenge and support

efforts in pursuit of the mission. ©2012 Mersky, Jaffe & Associates

8. Sustaining Resources Exceptional boards link bold visions and ambitious plans to financial

support, expertise and networks of influence.

Responsible Boards Approve balanced budget

Accept fundraising responsibilities and contribute personally

Promote organization in community

X

The Source of Power Creative and diverse revenue sources

Enthusiasm for bold visions and ambitious plans

Active involvement in solicitations

= Exceptional Boards

Generate increased revenue

Extend programmatic capacity or organization

Improve organization’s standing in the community



A:

A Systematic Approach to Year-Round Fundraising


Creating a Culture of Giving

Gateways Cultivation

Making the Ask Leveraging the Donor


Gateway Events: First Point in a

Cycle of Life-Long Giving

• Three basic components

– System for capturing names and contact data

with permission

– Facts 101: Vision and Opportunities

– Emotional Hook

“As individuals, we are emotional donors looking for rational reasons to

justify our emotional decision to give.”


Gateway Events: Program Format

• Greeting at the moment of arrival

• Sign-In

– Name

– Address

– Phone Number

– Email address

– Who invited them


Gateway Events: Program Format

• Brief mix and mingle

• The Program

– Facts 101 • Brief history

• Mission

• Program overview

• The numbers

• Vision including the gap, their role and the $ to fill it

– The Emotional Hook

– Thank You and Wrap Up


Gateway Events:

Thank You and Wrap Up

• Conclude on time

• Let people know about follow up • Feedback

• Advice

• Handouts • Basic brochure

• Fact sheet of FAQs

• The Complete Wish List: Real items by program/department from small to large


Follow Up and Involve

• Most important step to build lifelong donors – Follow up process never ends

– Personal contact asking for feedback

• Systematic research call – What will it take to have prospects feel they have made a real

contribution?

– To what extent do they want to become involved

• Customize a plan for each prospect

• Sooner you connect/ask for feedback, sooner you can give them what they want and keep them coming back for more


Script for Follow Up Call

• A research call to determine how each prospect might like to become involved

• Key to follow up call: LISTEN FOR CUES • The Script

1. Thank you for coming

2. What did you think?

3. Be quiet and listen 4. Is there any way you could see yourself becoming more

involved with our agency?

5. Be quiet and listen 6. Is there anyone else with whom you suggest we engage?

7. Be quiet and listen


In this economy, what can you do?

• Focus on annual appeals that “matter”

• Steward relationships with funders and keep asking

• Be sensitive to donors’ challenges.

• Slow down cultivation cycle for major donors; be aware of

their specific economic situation

• Remind people about bequest giving as a way to support

your organization in the future


In this economy, what can you do?

• Steward your loyal donors.

• Call or visit to thank them for their loyalty

• Hold a donor briefing—in person or by conference

call—to help them feel like insiders

• Transparency. Be honest about your financial

challenges, and share your plan to deal with them

• Tighten your case for giving, articulate the need for

your programs and demonstrate results


Keep The Connections

• People will give to those that love them the most.

• Why do donors stop giving? They no longer feel connected.

• The number one reason why people don’t give? No one asked them!

100 Donors in 90 Days

An amazing series includes interviews with 12

top fundraising consultants about ways you can

find new donors. Tips cover everything from

social media to board involvement.

http://merskyjaffe.com/development/100-

donors-for-your-nonprofit-in-90-days-really/


http://merskyjaffe.com/development/100-donors-for-your-nonprofit-in-90-days-really/


















Mersky, Jaffe

& Associates Financial and Human Resource

Development Solutions for Nonprofits

800.361.8689 413.556.1074 fax

www.merskyjaffe.com

OFFICES IN BOSTON AND NEW YORK


http://www.merskyjaffe.com/


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100 New Donors in 90 Days: A Step-by-Step Process