STRATEGIES FOR RAISING FUNDS IN THE CURRENT ECONOMY WHERE THE MONEY IS WHEN THERE DOESN'T SEEM TO BE ANY MONEY Larry Rosensweig President LFR Consulting Florida Association of Museums Annual Conference 2009

WHO GIVES A ………DOLLAR? Giving USA 2009 reports: American individuals, corporations, and foundations were very generous in 2008, contributing more than $307 billion to nonprofit organizations For the first time since 1987 and only the second time since Giving USA began publishing annual reports in 1956, total giving decreased in current dollars

WHO GIVES A ………DOLLAR? The impact the economy had on philanthropy last year did not affect all nonprofit giving sectors in the same way. Arts-culture-humanities saw a significant 6.4% decrease in giving As in the past, more than 80 percent of these dollars were given by individuals

GIVING USA

WHO GIVES A ………DOLLAR? Corporate giving – usually only around 4-5% of total – declined by 4.5% in 2008 Foundation giving increased by 3% in 2008, but… Assets declined substantially ~30% New gifts to donor-advised funds down significantly in 2009, with declines expected in giving

HOW ABOUT SOME MORE BAD NEWS! Government Support Down Federal – slight increases in IMLS, NEA, NEH, etc. + stimulus $$ State – large decreases in grants with more cuts expected Local – Tourism + other grants down significantly in most counties Direct subsidies down and trending lower

INDIVIDUAL GIVING DOWN, TOO Still 80-90% of total but… Most people’s assets down Psychology still negative or, at best, uncertain Very few people giving to causes or organizations they are not already involved with

“Why do I rob banks? Because that’s where the money is.” Attributed to Willie Sutton SO….WHERE ARE YOU GOING TO GET THE MONEY?!?

PEOPLE WHO CARE ABOUT YOU Trustees Former Trustees Volunteers Members Past Donors Corporate & Foundation Supporters

HOW TO TARGET THE RIGHT PEOPLE Pick a $$ amount appropriate for your museum List people who gave that amount or more in previous 2-3 years but not this year Review and determine a target amount and giving opportunity for each person/organization

CREATE A SIMPLE MENU Membership Upgrades Sponsor a specific program ‘Host Committee’ Specific amount Event (usually least cost-effective) Unrestricted Gift

SAMPLE PAST DONOR SPREADSHEET Primary AddresseeLast Gift Date Last Gift Amount Total Gifts in FY07+08 Membership CategoryExpires On Target AmountPurposeSolicitor Mr. and Mrs. Frederick R. Flintstone2/2/2007$6,000 FC - Circle Supporter $5,000ExhibAM Mr. and Mrs. J.W. Bigbottom9/9/2008$2,000$4,000 Contributor Member $2,000MembMB Ms. Louise Lasser9/19/2008$1,750$3,750 FC - Circle Member12/11/2009$1,750MembMB Mr. and Mrs. Beauzeau D. Klown12/28/2007$5,000 BallCC Ms. Elaine Benes7/10/2008$7,500 Contributor Member8/5/2009$7,500EducNE

Tell stories about people whose lives you change FOCUS ON WHO BENEFITS AND HOW

Stick to your mission Don’t emphasize the ‘party’

ASSIGN RESPONSIBILITY Who will do research Is prospect a Madoff victim? Did prospect lose job or business? Who will ‘open door’ Trustee or other volunteer? Who will solicit or actually ask for gift Team of staff member and volunteer

Time is of the essence when saying Thank You

Who will follow up and steward the donor? Thank you note (s) Appropriate credits Invitations to events, activities Report on what has been accomplished with donor’s funds

When facing a difficult task, act as though it is impossible to fail. If you’re going after Moby Dick, take tartar sauce. ~ Life’s Instructions for Wisdom, Success, and Happiness ~