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Fundraising in Fundraising in the the New Normal New Normal Nonprofit Leadership Symposium Friday, March 23, 2012 Gainesville, Florida Alyce Lee Stansbury, CFRE Stansbury Consulting LLC

Alyce Lee Stansbury: Fundraising in New Normal 2012

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Page 1: Alyce Lee Stansbury: Fundraising in New Normal 2012

Fundraising in theFundraising in the New Normal New Normal

Nonprofit Leadership SymposiumFriday, March 23, 2012

Gainesville, Florida

Alyce Lee Stansbury, CFREStansbury Consulting LLC

Page 2: Alyce Lee Stansbury: Fundraising in New Normal 2012

©Stansbury Consulting LLC. 2010.

“Fundraising is the gentle art

of teaching peoplethe joy of giving.”

- Henry A. (Hank) Rosso

Page 3: Alyce Lee Stansbury: Fundraising in New Normal 2012

©Stansbury Consulting LLC. 2010.

Defining the New Normal

• Tighter budgets and few staff

• Increased competition for fewer dollars

• Need for more complex funding strategies

• Emphasis on collaboration

• Greater demand for accountability

Page 4: Alyce Lee Stansbury: Fundraising in New Normal 2012

Defining the New Normal

• Greater demand for transparency

• NPOs must demonstrate results

• Savvy donors asking tougher questions

• Greater access to information

• More “asks” to get same results

• Bigger gifts take longer to cultivate©Stansbury Consulting LLC. 2010.

Page 5: Alyce Lee Stansbury: Fundraising in New Normal 2012

Six Strategies forFundraising Success

1. Know where your time should be spent

2. Tell your BEST story

3. Build long-term relationships

4. Fish where the BIG fish are

5. Maintain Public Profile

6. Get your Board on Board

©Stansbury Consulting LLC. 2010.

Page 6: Alyce Lee Stansbury: Fundraising in New Normal 2012

(#1) Know where your timeshould be spent

©Stansbury Consulting LLC. 2010.

• Stewardship– Review thank you letters and overall

recognition process– More personalization (show me that you know me)

– More hand written notes – Involve Board members & volunteers– Say more than “thank you”

Page 7: Alyce Lee Stansbury: Fundraising in New Normal 2012

(#1) Know where your timeshould be spent

• Fundraising programs spend: – 70% on “churn”– 30% on donor retention

• 65% attrition between 1st and 2nd gift• Penelope Burk – Cygnus Applied Research

• 1000 donors – how many left in 5 yrs?• Jerold Panas

©Stansbury Consulting LLC. 2010.

Page 8: Alyce Lee Stansbury: Fundraising in New Normal 2012

(#1) Know where your timeshould be spent

• Stay in touch with donors/stake-holders

• Call top 20 donors. Prepare talking points

• Involve Board members.• Make visits and phone calls a TOP

priority.

©Stansbury Consulting LLC. 2010.

Page 9: Alyce Lee Stansbury: Fundraising in New Normal 2012

(#1) Know where your timeshould be spent

Introduce new people to your cause

– Review database to uncover hidden potential

– Increase meetings with donors and prospects

– Do your own “prospect research” (LAI)

©Stansbury Consulting LLC. 2010.

Page 10: Alyce Lee Stansbury: Fundraising in New Normal 2012

©Stansbury Consulting LLC. 2010.

(#1) Know where your time should be spent

If Development Director:• Identify strengths and skills of CEO• Know difference between asking CEO for

help and asking to do your work*• Meet routinely to discuss status of prospects

and next steps• Keep CEO well informed• Make it easy for CEO to help

* James Donovan

Page 11: Alyce Lee Stansbury: Fundraising in New Normal 2012

©Stansbury Consulting LLC. 2010.

(#1) Know where your timeshould be spent

If CEO:

• Be prepared to participate in fundraising

• Donors want to give to well-managed

organizations• Among $1 million donors:

“Unbreakable bond of regard and respectbetween donor and CEO.”

- Jerold Panas, “Mega Gifts”

Page 12: Alyce Lee Stansbury: Fundraising in New Normal 2012

(#1) Know where your timeshould be spent

• Keep asking.

• Never apologize for asking.

• Don’t make donors feel bad for giving less.

• Don’t assume donors can’t or won’t give.

• Value the donor, not just the donation.

©Stansbury Consulting LLC. 2010.

Page 13: Alyce Lee Stansbury: Fundraising in New Normal 2012

“In tough financial times people

actually give more…

but they give to organizations

they care deeply about.”

- Jerold Panas

©Stansbury Consulting LLC. 2010.

Page 14: Alyce Lee Stansbury: Fundraising in New Normal 2012

(#2) Tell your BEST story

• Make sure you know what you’re selling

• How are donors changing lives?

• Turn mission statements into BECAUSE statements

• Review case for support and MAKE IT BETTER

• What’s new? unique? dramatic?

©Stansbury Consulting LLC. 2010.

Page 15: Alyce Lee Stansbury: Fundraising in New Normal 2012

©Stansbury Consulting LLC. 2010.

(#2) Tell your BEST story

“Think of your

case statement

as a series of

ah – ha’s”. - Tom Ahern

Page 16: Alyce Lee Stansbury: Fundraising in New Normal 2012

©Stansbury Consulting LLC. 2010.

(#2) Tell your BEST story

• Tell your story. Use anecdotes.

• Stories have a beginning, middle, and end.

• Pick ONE statistic that dramatically reveals something worth knowing.

• Pick the juiciest testimonial: the one that makes a point and depicts your organization as effective.

• Be donor centric instead of donor optional.• Tom Ahern

Page 17: Alyce Lee Stansbury: Fundraising in New Normal 2012

©Stansbury Consulting LLC. 2010.

If we want people to

give better…

…we have to do a better job

of explaining why

they should give better.

Page 18: Alyce Lee Stansbury: Fundraising in New Normal 2012

(#3) Build long-term relationships

• Cultivate relationship first: engage them in your work before you ask.

• Communicate before you ask again

• Take Relationship Quiz

• Only timing that matters is the donor’s

©Stansbury Consulting LLC. 2010.

Page 19: Alyce Lee Stansbury: Fundraising in New Normal 2012

(#3) Build long-term relationships

• Add stewardship activities to development plan

• Identify steps after events to deepen relationships

• Visits (no ask) are vital

©Stansbury Consulting LLC. 2010.

Page 20: Alyce Lee Stansbury: Fundraising in New Normal 2012

©Stansbury Consulting LLC. 2010.

(#4) Fish where the BIG FISH are!

Page 21: Alyce Lee Stansbury: Fundraising in New Normal 2012

©Stansbury Consulting LLC. 2010.

(#4) Fish where the BIG FISH are!

• Think BIGGER

• Ask for what you really need

• Ask for more rather than less

“Big, bold programs sell.” -Jerold Panas, Mega Gifts

Page 22: Alyce Lee Stansbury: Fundraising in New Normal 2012

©Stansbury Consulting LLC. 2010.

(#4) Fish where the BIG FISH are!

• Learn to ask well. Practice! • Don’t wait for the “perfect” time to ask.• Cultivate a board member to make asks• Think about challenge gift or other

incentive [LEVERAGE]• Consider a small, compact campaign for

specific project = achieve success; build momentum

Page 23: Alyce Lee Stansbury: Fundraising in New Normal 2012

(#5) Maintain public profile

• Be visible - Be active• Speaking engagements• Community-wide events• Earned media• Newsletters• Website• Social Media• Free stuff

©Stansbury Consulting LLC. 2010.

Page 24: Alyce Lee Stansbury: Fundraising in New Normal 2012

(#6) Get your Board on Board

• Connect them to their passion

• Keep Board well informed

• Bigger gifts require bigger trust in leadership (board & staff)

• Meetings: less reporting; more discussion

©Stansbury Consulting LLC. 2010.

Page 25: Alyce Lee Stansbury: Fundraising in New Normal 2012

(#6) Get your Board on Board

• Strategic plan: driving force of activity

• Sustainability must be key goal

• Enforce Board expectations

• Board must hold each other accountable

©Stansbury Consulting LLC. 2010.

Page 26: Alyce Lee Stansbury: Fundraising in New Normal 2012

©Stansbury Consulting LLC. 2010.

(#6) Get your Board on Board

PASSIONATE volunteers

raise money.

Your job:

Cultivate. Teach. Engage. Involve.•

Page 27: Alyce Lee Stansbury: Fundraising in New Normal 2012

©Stansbury Consulting LLC. 2010.

Fundraising in the New Normal

Are you the lion or the gazelle?

Page 28: Alyce Lee Stansbury: Fundraising in New Normal 2012

©Stansbury Consulting LLC. 2010.

Good Luck - You Can Do it!

Alyce Lee Stansbury, CFRE

Office 850-668-2569

Mobile 850-509-2374

Email: [email protected]

www.stansburyconsulting.com

Page 29: Alyce Lee Stansbury: Fundraising in New Normal 2012

©Stansbury Consulting LLC. 2010.

References & Resources:

• AFP Toolkit for Fundraising in Bad Economy– Articles, research, books, and related links

www.afpnet.org• Ahern, Tom . “How to Write Fundraising Materials”• Ahern, Tom and Joyauax, Simone. Keep your donors: the

Guide to Better Communications and Stronger Relationships (Wiley, 2007)

• Bradham, June. “Board members want to lead – then give,” AFP Resource Center,, March 2010

• Chronicle of Philanthropy, How Charities Cope with a Troubled Economy - Recent stories, live discussions, and stats

Page 30: Alyce Lee Stansbury: Fundraising in New Normal 2012

References & Resources:

• Donovan, James. “Five Tips for Fund Raising Staff in Working with the CEO and Board”, July 2009

• Giving USA www.givingusa.org• Klein, Kim. “Fundraising in times of Crisis”, Jossey Bass.• Lord, James Gregory. “The Raising of Money”• National Council on Nonprofits, “Nonprofit Economic

Vitality Center” • Panas, Jerold. “Mega Gifts”• Panas, Jerold, “Institute for Charitable Giving”• Rosso, Hank. “Achieving Excellence in Fund Raising

©Stansbury Consulting LLC. 2010.