1. The Role of Volunteers OASFAA-OCAN Conference December 13, 2011 Presented By: John G. Goettler, CFRE Successful Fund-Raising Strategies in Challenging Times 580 South High Street Columbus, Ohio 43215 614-228-3269 www.goettler.com

2. Giving USA 2009: Who Gives Total Giving 2008 = $307.65 billion (-2.0%) Individuals = $229.03 billion or 75% (-2.7%) Bequests = $22.66 billion or 7% (-2.8%) Foundations* = $41.21 billion or 13% (+3.0%) Corporations = $14.50 billion or 5% (-4.5%) Combined individual and bequest gifts accounted for 82% of all gifts made in 2008 Note: First decline in giving since 1987 and the second since Giving USA began in 1956

3. Giving USA 2009: Who Receives Religious $106.89 billion or 35% of total giving Education $40.94 billion or 13% Grant-making Foundations $32.65 billion or 11% Human Service $25.88 billion or 9% Health $21.64 billion or 7% Arts, Culture, Humanities $12.79 billion or 4% Environmental/Animal Welfare $6.58 billion or 2% International Affairs $13.30 billion or 4% Public-society Benefit $23.88 or 8% Unallocated Contributions $19.39 billion or 6%

4. Giving USA: Recession Trends Charitable giving during recessions does not keep up with inflation In the last 5 recessions since 1973, giving decreased by 1.3% In non-recession years from 1966- 2006, giving increased by 4.3%

5. Recession Tips from Giving USA: Partner with other organizations to raise visibility and gain a broader audience. Improve efforts in securing small annual gifts and acknowledge gifts quickly. Increase advocacy work and draw attention to specific work of your organization.

6. Recession Tips from Giving USA: Shift priorities from fundraising for specific groups to fundraising for specific problems or needs People give to support what they value and believe in. The giving percentages are relatively constant year to year. Think creatively.

7. Three Deadliest Mistakes… …a development professional can make in a bad economy: #1Spend less on fund-raising. #2 Become pessimistic. #3 Apologize when asking for money.

8. What Should You Be Doing in a Lousy Economy? What you should have been doing all along! Planning Analysis Communication Donor Stewardship Focus on the Fundamentals!

9. Create Your Development Plan In tough economic times, your development plan will become more important than ever. Before writing your annual development plan, you need to determine: Target audiences Target programs Target methodology Remember: people still give to people!

10. Elements of a Comprehensive Plan Agency Mission Case Statement for agency and for each project Overall development goals Fundraising projections Table of Gifts Methods & Strategies Metrics/Evaluation

11. A Comprehensive Plan… …includes fundraising projections: income & expenses. This section of the development plan lists each development project separately, with projections by functional line item for gross income, net income and expenses. Should include a financial section that gives a profile of annual giving and an annual gift range chart. Use a matrix for each project.

12. A Comprehensive Plan… …using annual giving strategies should include: An Organizational Chart for your team, with defined responsibilities and reporting structures…and job descriptions. A Table of Giving Standards

13. A Comprehensive Plan… Annual Fund Goal = $100,000 No. of Prospects No. of Donors Gift Amt. Total per Category Cumulative Total% 3210,00020,000 20% 1245,00020,00040,00040% 1552,50012,50052,50053% 1862,00012,00064,50065% 2481,50012,00076,50077% 36121,00012,00088,50089% 45155007,50096,00096% 60202505,000101,000101% 21372

14. A Comprehensive Plan… Includes methods and strategies for each target audience and program Identifies fundable projects and programs (marketplace perspective) Involves board, staff, and donors Has a structure for evaluation through metric analysis

15. Methods & Strategies: Example Personal Solicitation Campaign 1.Board Solicitation (Chairs: Board President, Development Committee Chair) Time Frame: September-December # Prospects: 20 Goal: 100% giving; $50,000 ($38,000 raised in last FY) Method: Personal solicitations. Request amounts based on donor history and evaluations. 2.Individual Solicitation (Chairs: TBA with volunteers) Time Frame: September-December # Prospects: 50-75 top individuals, ad hoc committee members, family trusts/foundations Goal: $50,000; 60% renewals, 15% gift upgrades ($40,000 raise in last FY) Method: Personal solicitation by board and non-board volunteers

16. Evaluation: Development Metrics 2009 Major Donor Fund-raising Goal$150,000 Average Historic Major Gift Amount$ 5,000 # of Gifts Needed to Close to Reach Goal 30 # of Solicitations Needed 90 Conversion rate of 1/3 # Visits Needed to Qualify/Cultivate/Ask/Close 300 With Top Prospects (30 X 4 visits) 120 With Middle Prospects (30 X 6 visits) 180 With Low Prospects/Qualification Names (30 X 8 visits) 240 VISITS / SOLICITATIONS / CLOSURES ANNUAL 300 V 90 S 30C MONTHLY 25 V 8 S 3 C

17. Determining Your Metrics How much money do you need to raise? What is the average size of a major gift to your agency? –These are gifts to the annual fund that are not related to grants or special events. Fundraising goal divided by average gifts size equals –number of gifts you need to successfully identify, cultivate, solicit and close.

18. Key Elements for Success Communication Cultivation Stewardship The new normal? Many Professionals suggest flat (fund-raising results) is the new up!

19. Communication In addition to getting the word out about your programs, get the word out about the impact the economy is having on them. Open and honest: “We know it’s tough for you but the lines for our services are out the door…..” Accountability: the more information can you can provide to donors about what their gift makes happen, the more likely it is donors will continue support.

20. Cultivation: Key Step Educate: teach donors that adequate overhead costs are critical to your organization. Appropriate vs. Knee-jerk: let stakeholders know you are taking appropriate steps to survive – maybe even thrive – in difficult times. “Donors don’t make gifts to nonprofit organizations because the nonprofits have needs; they give because the nonprofit has the programs the donor wants to fund, and through these programs, there are successful outcomes.”

21. Donor Cultivation Strategies Be proactive – tell the specific strategies your agency will execute to meet community needs. Let people know how you will update them on your progress e.g. quarterly letter from Executive Director, phone call, etc. Think, work and plan for the High end and low end

22. Donor Stewardship Continue the dialogue – schedule phone calls and visits, send updates on a regular basis. Let them know they are working side by side with you. Prepare a special white paper or report that lists challenges and strategies. Monthly or quarterly, report on tactics and progress made. Send as a communiqué to major donors, post on web site for lower level donors, in newsletter and deliver in person on calls.

23. Donor Stewardship: Steward with dignity. In this economy, they may need you to be more flexible in how/when they give their gift. Offer long-term options or combinations of giving methods that fit their financial realities. In depressed times, planned and estate giving can be attractive options.

24. Create A Stewardship Calendar: JanMarMayJuneSeptOct 1-on-1ToursED letter newsletterAnnual Meeting Donor Event $2,500+xxxxxx $1,000- $2,499 xxxxx $500- $999 xxxx $250- $499 xxx $100- $249 xx $1-$99x

25. 12 Strategies to Keep Your Development Program Strong 1. View the situation as an opportunity, not an obstacle. 2. Get your board up to speed and on the same page. 3. The donors you have are your stability. 4. Get to know those who are not yet close. 5. Review your case: “Why us? Why now?”

26. 6. Raise awareness of your organization and raise your public profile. 7. Think creatively and be flexible. 8. Value the donor, not the donation. 9. Practice “donor-centricity.” 10. Relationships are built over time…keep the door open. 12 Strategies to Keep Your Development Program Strong

27. 11. Continue to ask (without hand- wringing). 12. Take a hard look in the institutional mirror. 12 Strategies to Keep Your Development Program Strong

28. Thank You! 580 South High Street Columbus, Ohio 43215 614-228-3269 www.goettler.com