Young Nonprofit Professionals Network Learning Circle

The Essentials of Fundraising & Donor Development

Week 5 - Solicitation & Stewardship

Jessica Haynie

October 25, 2011

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Today’s Agenda

• Exercise - elevator pitch• Presentation on solicitation and stewardship• Discussion on topics for next week’s class

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Review of donor stages

• Identification• Qualification• Cultivation• Solicitation• Stewardship

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Five Principles

• People give to people to help people

• People give relative to their means

• Those closest must set the pace

• The 80/20 rule is becoming the 90/10 rule

• Fundraising programs need balance

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People Give to People to Help People

• People, not institutions, make the decisions to donate or not to donate

• Donors make their investments based on their relationship to the asker; donors give to people they trust

• From a donor’s viewpoint, institutions do not have needs, people do.

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People Give Relative to Their Means

• Offer gift amount categories• Suggest amount to give• Use gift range charts

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Those closest must set the pace

Board

Manag. Staff

Major Donors

ClientsMembers

Volunteers General donors

Employees

Former Participants

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The 80/20 rule is becoming the 90/10 rule

Major Gifts

10% donors

Upgraded Gifts

20% of donors

Base

70% of donors

90% of $

10% of $

Often 80% or more of the funds raised will come from not more than 20% of the donors.

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Fundraising programs need balance

GuideStar - The Fundraising Methods That Worked Best in 2010 - and Could Work Best in 2011

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Direct Mail Appeal Package

• Outside envelope

• Appeal letter

• Response device

• Return envelope

• Other (brochure, lift notes, news articles)

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The Letter

• Grab attention in first sentence• State the problem, tell a story• Pose a solution• Tell how the reader can help• Tell benefits to reader if help• Ask for a gift - today• Be specific about gift $ requested (suggest gift amount at

least 25% higher than previous gift)• Say thank you (2 or 3 times)• Use a postscript• Be personal (use you, we, I)

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Best Letters, in general

• Short, indented paragraphs

• Underlining or bolding for emphasis

• Short sentences, no compound sentences

• Short, direct words

• Active voice

• Simple

• Personalized, if within budget

• Signature in different color ink

• Black ink for body of letter

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Direct Mail Do’s and Don’ts

• Do:– Invest time to update donor database– Include CLEAR call to action– Use an emotional hook – Personalize your letters (Dear Jessica)– Pay attention to detail (Mr. Jessica Haynie)– Carefully follow postal regulations

• Don’t:– Make it sporadic– Make solicitations your only form of communication– Neglect to test your mailing before going mass

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Generate a feeling of…

• Excitement• Sense of Proximity• Sense of Immediacy• Sense of Hope• Meaning• Sense of Reasonableness

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Segmentation

• Current donors (second ask or special appeal)• Non-renewed donors (last year but not this year)• Lapsed donors (gave over 2 years ago)• New donors (never gave to the organization)

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Face-to-Face Ask - why?

• The most productive means of raising money. This is the basic building block upon which to create a relationship between donor and the organization

• Will consistently result in higher dollar amounts per contact

• Is the most cost efficient means of raising money

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Elements of a Successful Ask

• Select a comfortable, quiet location• Make sure the asker is also a donor• Give a reason/purpose• Be clear and convey exactly what you want• Be gracious in receiving a gift• Be willing to be turned down• Spend 20% of the time talking and 80% listening

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Face-to-Face Ask Rejections

If people aren’t saying no, you’re not asking enough!

• The best way to handle a rejection is…– Don’t take it personally– Understand why not, and can you counter offer– Don’t debate– You can correct any incorrect information– Don’t get distracted– Still thank them for their time

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Stewardship

What do donors say they want?

“Prompt, personalized acknowledgement of their gift.”

“Confirmation that their gifts have been put to work as intended.”

“Measurable results on their gifts at work prior to being asked for another contribution.”

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Stewardship

How to give donors what they want• Formal annual report• Letter/email from CEO• Memo from staff member or volunteer working in the field• Site visit• Internal or independent analysis of programs• Personal update (by phone or in person) from CEO or

board member• Organizational publications

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Stewardship

Setting stewardship priorities• Develop a system in place to get personalized thank you

letters out in less than one week• Refresh content of thank you letters, segmenting for

donors giving to different programs• Map the donor experience to look for weaknesses and

opportunities• Develop a plan to demonstrate donor gifts at work• Thank a donor every day (more than good stewardship,

it’s a good for fundraiser morale)

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Stewardship$1-$99 $100-$249 $250-$499 $500-$999 $1,000+

Thank you letter X X X X X

Newsletter X X X X X

Emails X X X X X

Invitations to events X X X X X

Annual Report X X X X

Phone call thank you X X X

Personal thank you note X X

Holiday cards X X

Annual visit by ED X