How to Evolve and Survive the Coming Fundraising Winter

WHAT’S COMING?

WHAT YOU CAN DO ABOUT IT.

Roger Craver, Editor

The Agitator

Agitator.TheDonorVoice.com

@AgitatorDV

“Oh, my sweet summer child,” Old Nan said quietly, “what do you know of fear? Fear is for the winter, my little lord, when the snows fall a hundred feet deep and the ice wind comes howling out of the north. Fear is for the long night, when the sun hides its face for years at a time, and little children are born and live and die all in darkness while the direwolvesgrow gaunt and hungry, and the white walkers move through the woods.”

– George R. R. Martin

“The future ain’t what it used to be.”

YOGI BERRA

or to put it more simply …

Winter Has Come!1,500,000

350,000

23%

DIGITAL = 7. 8% & Flattening

No Excuses. No Myths

• Not declining because of tax reform

• Not declining because of demographics

• Decrease in giving is consistent across generations

• Across every age group fewer people are giving

• Only one group has shown an increase -- $1000 + donors. But, we can’t rely on major gifts–unsustainable and dangerous because organizations will follow money not mission.

So, What Do We Do?

Accept the reality that evolution and change

are necessary. Maintaining the Status Quo is the most risky

strategy.

1Do what every

successful nonprofit must do: Know your donors' preferences,

your donors’ identities(why they give) and

address those accordingly.

3Immediately take 3 Basic Winterproofing Actions

2

Guiding Principles for the Winter Days Ahead

Less valuable donors warrant less spend and less attention. A once or twice a year appeal to this group is likely to produce more net income than mailing

them 6 or 8 times.

Make More,

Mail Less.

Far too much attention is paid to acquiring new

donors and too little on keeping and upgrading the

donors you have. Understand your retention

rates and Lifetime Value rates before you begin throwing acquisition

money around.

Be Careful About Your Acquisition

Spend.Pick up the phone…send ‘em a letter and tell them you’re counting on them. Do it by years lapsed, so

you can determine which group is worth the spend.

Bring Lost Donors Back Into The Fold.

3 Immediate Steps to Winterproof Your Organization

Keep Your Data Clean. You can’t communicate and retain your donors if your messages don’t get delivered.

Focus Time and Spend on Best of File. 80%-90% of most org’s income is given by 10-20% of the file. Focus on those donors. Communicate with them the most. Find out as much as you can about them and tailor your communications for them.

Start a Monthly Giving Program, a Mid-Level Program and an annual Auto-Renewal Program. These are simple programs that focus on the “Best of the file” principles in Step 2. They are all described in Agitator posts. Agitator.TheDonorVoice.com

Know Your Donors’ Preferences and Identities DONOR IDENTITY

Why your donors give.

DONOR PREFERENCES

• What your donors need and want from you.

WHY SO IMPORTANT

• Higher Retention

• Higher Response Rates

HOW

• How do you determine Identify and Preferences?

Donor Identity- Quick Quiz: WHY DONORS GIVE?

A. To address/impact needs in my local communityB. To address/impact needs worldwideC. To fund organizations that enrich my lifeD. To support a cause that has affected me or a loved oneE. To feel a connection to a cause or communityF. To right ”the wrongs” in societyG. feel a responsibility to give back or titheH. Other

Donor Identity- Quick Quiz: WHY DONORS GIVE?

A. To address/impact needs in my local communityB. To address/impact needs worldwideC. To fund organizations that enrich my lifeD. To support a cause that has affected me or a loved oneE. To feel a connection to a cause or communityF. To right ”the wrongs” in societyG. feel a responsibility to give back or titheH. Other

The Value of Using Identity

Identities Are Not Just for Mail. Digital Too.

Read Lots. Learn Lots.

May I suggest The Agitator. It’s free and frequent.

http://agitator.thedonorvoice.com

Stay warm!