Recession-Proof your Fundraising StrategiesAs the threat of a recession looms large, what can you do to ensure your programs remain fully funded? The New York Times recently reported that stockholders often make large gifts of their stock shortly before their stock prices drop. This allows donors to maximize their tax deductions and avoid capital gains taxes. As planned giving officers, you are advocates for philanthropic solutions that are tax advantageous--just like this one. Studies show that the nonprofit sector doesn’t generally get hit as hard as commercial sectors when consumer confidence falls. Those organizations that fare best prepare to make the most of a difficult time by marketing in a way that recognizes what donors are going through during tough economic times. Consider the following donor-centered strategies: Favor Donor Retention over Donor RecruitmentNaturally, it’s important to always have an eye towards building new relationships in the donor community. However, as we all know, recruiting new donors is a far more expensive (and risky) process than is taking good care of those donors we’ve worked so hard to build relationships with. Appeal to your loyal donors helping them understand that your relationship has never been more valuable. Show them that they’re vital to fulfilling your organizational mission. Moreover, now is the time to provide reassurance that your organization operates efficiently, makes a meaningful impact, and thanks promptly and appropriately. All aspects of your charity that communicate effectiveness are due for review now. Segment. Segment. Segment.Appeals are expensive. Donor visits are time consuming. If ever there was a time to do your homework on donor assets and interests, it is during a recession. When a donor is solicited for gifts that he or she cannot afford outright (with assets that suggest a planned gift could support the overall financial picture), be ready with that scenario when you make your visit. If he or she has already indicated that planned gifts aren’t appropriate for them at this time, listen to them. Concentrate your solicitation time on donors who can make these important gifts. Maximize Impact with Giving CirclesFor those donors who can’t make transformational gifts, they are still important relationships. If your mid-level donors aren’t able to make outright gifts at a level they have in the past, consider marketing a Giving Circle. Group gifts can have huge impact on programs, and allows mid-level donors to maintain their commitment, even during a time when they might not have the same liquidity they had during flush times. To create a Giving Circle, you’re developing your donors' sophistication about philanthropic support of your organization and fostering an investment mentality. As the economy transitions, fundraising becomes much more about maximizing opportunity. If you would like to discuss how to maximize your fundraising efforts, we’d like to help. Contact John Brown Limited and let us know what your challenges are.
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June 2008:Archived Newsletters |
