Young Nonprofit Professionals Network Learning Circle The Essentials of Fundraising & Donor Development Week 5 - Solicitation & Stewardship Jessica Haynie

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Young Nonprofit Professionals Network Learning Circle The Essentials of Fundraising & Donor Development Week 5 - Solicitation & Stewardship Jessica Haynie October 25, 2011 Slide 2 222 Todays Agenda Exercise - elevator pitch Presentation on solicitation and stewardship Discussion on topics for next weeks class Slide 3 333 Review of donor stages Identification Qualification Cultivation Solicitation Stewardship Slide 4 4 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 Slide 5 5 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 donors viewpoint, institutions do not have needs, people do. Slide 6 6 People Give Relative to Their Means Offer gift amount categories Suggest amount to give Use gift range charts Slide 7 7 Those closest must set the pace Board Manag. Staff Major Donors Clients Members Volunteers General donors Employees Former Participants Slide 8 8 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. Slide 9 9 Fundraising programs need balance GuideStar - The Fundraising Methods That Worked Best in 2010 - and Could Work Best in 2011 Slide 10 10 Direct Mail Appeal Package Outside envelope Appeal letter Response device Return envelope Other (brochure, lift notes, news articles) Slide 11 11 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) Slide 12 12 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 Slide 13 13 Direct Mail Dos and Donts 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 Dont: Make it sporadic Make solicitations your only form of communication Neglect to test your mailing before going mass Slide 14 14 Generate a feeling of Excitement Sense of Proximity Sense of Immediacy Sense of Hope Meaning Sense of Reasonableness Slide 15 15 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) Slide 16 16 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 Slide 17 17 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 Slide 18 18 Face-to-Face Ask Rejections If people arent saying no, youre not asking enough! The best way to handle a rejection is Dont take it personally Understand why not, and can you counter offer Dont debate You can correct any incorrect information Dont get distracted Still thank them for their time Slide 19 19 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. Slide 20 20 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 Slide 21 21 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, its a good for fundraiser morale) Slide 22 22 Stewardship $1-$99$100-$249$250-$499$500-$999$1,000+ Thank you letter XXXXX Newsletter XXXXX Emails XXXXX Invitations to events XXXXX Annual Report XXXX Phone call thank you XXX Personal thank you note XX Holiday cards XX Annual visit by ED X