5 Keys to Pulling out of the Economic Nosedive
- Mon, February 02 2009
- Filed under: Fundraising essentials
This is my latest Fundraising Success column - timely stuff, I think, so I’m sharing it here.
It’s ugly out there, and if you’re the pilot of your fundraising endeavors, you’re getting pretty sick of the turbulence. Many of us are rendered nauseous by the sight of the goals on our development dashboards. Some nonprofits are in a fiscal nosedive. And as any financial pundit worth his market metaphors will tell you, falling is no fun, especially without a golden parachute.
In situations like this, some people panic. Others get inventive. Let’s all pledge here and now to stay in the latter category. As a wise man once said, worrying is not thinking and complaining is not action.
Here are five keys to pulling yourself and your message together to survive 2009. They are all variations on an important theme: give donors what they want during tough times.
1. Give donors what they want: to feel good.
That’s right. Donors want to feel good, especially right now. They want a helper’s high. They want to have an impact, make a difference and attain an emotional ROI. You don’t give that to them with a desperate, doom and gloom message about your dire need. Even if you’re feeling negative, there is no need to share that emotion unless there is a happy windup to your appeal. Who can the donor save? What can they make possible? How can they be a superhuman life-changer for a small sum? Tell them that. It’s good stuff. It’s motivating stuff. It works. DO NOT LOSE SIGHT OF THIS. Times are tough and if you can make people feel good about themselves and what they’ve done, that’s worth a lot to them.
2. Give donors what they want: to hear from people they know.
Now’s a good time to change up the messenger. People are going to be in a kind of mental fetal position this year, clinging to their nearest and dearest in this scary world. So if you put your cause in the mouths of their friends and family, you’re going to get much further than you would messaging alone. Ask your supporters to spread the word about you. The messenger will be key this year, and it’s best if it’s not you.
3. Give donors what they want: tangibility.
People are pinching pennies and seeking value this year, whether in the aisles of Wal-Mart or when giving money. You need to show you’re going to be a very trustworthy, efficient and effective steward of their money, and there’s no better way to do that than to be very concrete. Where will the money go? What dollars buy what change? What good is going to result from a gift? Answer these questions many times: when a donor gives, after they give, and next time you contact them for help.
4. Give donors what they want: flexibility.
Not everyone can give as they have in more prosperous times. So recognize that fact and give them flexibility in how they support you. How can they volunteer their times or talents? How can they assist you in spreading the word? How about monthly giving – modest amounts deducted from their credit cards? Make it easy for people to help, no matter how hard the times.
5. Give donors what they want: personalization.
Last, don’t forget to do everything you can to personalize your messages. Donors are going to be hit up for money left and right by desperate parties this year. If you show you see them as a person and not a walking wallet, you stand a better chance of standing out. Ask them about their interests so you can cater to them.
I’ll also add a bonus sixth point, which is that if these things aren’t working at all, that tells you something. One explanation is hard times, but that’s not the whole story. If you can’t prove your relevance to donors or supporters, you have more than the recession to blame. You need to call up a few folks and find out why you’re failing to connect. Or ask yourself if you are targeting the wrong audience. Or question if you need to join forces with an organization better positioned for outreach. Keep looking till you know why you’re failing – and then have the courage to fix the underlying problem. The more you think instead of panic, the greater your chances of pulling out of your nosedive and taking flight.
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Comments
Extremely timely and wonderful post. This is what nonprofits need to hear and the direction they need to take.
There are so many inexpensive but effective ways to get the word out but it takes a little more work (but less money) on the part of a nonprofit to still accomplish their goal.
One example is to utilize your board and staff to have coffee occasionally with your donors to find out what is on their minds and to reinforce the mission of the organization. Nothing like going directily to the source to get accurate and timely information that can be used to reach targeted audiences or to see were you are failing so you can improve your results.
Don’t think that there aren’t donors questioning why they donate at this time and it’s better if we remind them about our particular mission as opposed to someone down the street doing it.
Great job on this post Katya!
Good post. I personally like #5 since that is my business. All prospects, donors in particular, want to feel special. Blasting out letters to “Dear Valued Supporter” just doesn’t cut it. And research shows that personalization super-charges response rates up to 5x. But most nonprofits try to find a cheap way to communicate and raise funds. Getting personal takes more time and money. But if the cause is worth it, don’t the donors deserve it?
Good advice. We tried many of these tactics for our new Valentine’s Day promotion at Children’s National Medical Center. It’s personalized—donors were thanked for their past support. It’s tangible—kids will get real cards in person. And how can a donor not feel good knowing their small contribution will make a child smile?
https://secure2.convio.net/chfdc/site/Donation2?1901.donation=form1&idb=38400064&df_id=1901
Great article!
We are trying just what you are talking about.
Last year we started a non profit organisation and we really want to give the internetvisitor a feel good experience!
We do this my uploading new video’s, bi montlhy.
So people that donate can actually see what’s happening with their donations. Communication is key!
Feel free to check it out:
http://www.jimmythemantours.com
Thank you.
Jaap van ‘t Kruis
The Solotrekkers Foundation
Amsterdam
I particularly like your point #4 because it will do a lot to build the relationship with donors.
This is the time to focus on getting to know your donors. They represent a scarce resource. So get to know them and mix with them at every opportunity.
Thank you for your significant post. All nonprofits should take to heart!
Terrific suggestions everyone, and eloquent points. Scott - great suggestion on board members. David - great point about personalization. Mark - great campaign (definitely worth blogging - let us all know how it goes!) and Ted - you are right, the theme song for fundraisers this year should be “getting to know you!”
Good post. # 3 is dead on. Donors expect a return on their investments in the form of helping people, and want to see concrete evidence of that help.
Fantastic post and comments! Thanks for sharing this information!
Here are five keys to pulling yourself and your message together to survive 2009. They are all variations on an important theme: give donors what they want during tough times.
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I really like your wiseman’s saying: “Worrying is not thinking and complaining is not action.” It’s so true! And your marketing tactics make a lot of sense. With this economic situation, people are looking for non-monetary reasons to let give their monetary contribution. And at the same time, you don’t want them to leave with donor’s regret.
——-
OliviaB.
San Diego DUI lawyer
Give donors a chance to win something, and support not only one nonprofit, but many.
Excellent post. Extremely timely and wonderful post. This is what nonprofits need to hear and the direction they need to take.
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I like video but not everyone clicks on video or chooses to view it. So I would not have a video as the only visual on my home page. I think it’s a great addition but not replacement for photos on a website.
Regards,
One problem some non-profits face is due to strict HIPAA regulations, we aren’t allowed to use photos of the kids that we serve and are left with stock photos. It’s a big challenge when you’re providing mental-health services.
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Here are five keys to pulling yourself and your message together to survive 2009. They are all variations on an important theme: give donors what they want during tough times.
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While I agree the economy has presented challenges for nonprofit organizations, I think it has become a convenient “excuse” for some nonprofit organizations as well as donors. The donors are easy so I’ll start with them.
For many people, their income is the same as it was one year ago, even if their savings/investments have declined, which for many people is money they’ll recover between now and the time they intend to use the money. For most donors, contribution decisions are based on current income, at least for annual campaigns which are typically the lifeline for an organization’s operating budget. Let’s also keep in mind there are people whose financial lives have improved because of our down economy. Certain businesses by virtue of the services they provide or the products they sell are poised to make more money when others are hurting. We also know there are some donors who are most likely to step up and stretch their giving when the chips are down ... becoming a “hero” in a down economy can be quite compelling for certain donors.
For some nonprofit organizations, I think too many of their challenges are being attributed to the tough economy. Perhaps our tough economy should be considered a “wake up call” for many nonprofit organizations about their operations which donors may be scrutinizing now more than ever.
I was disturbed to read an article recently in The Jewish Daily Forward an article titled “The Perfect Storm’ for Day Schools” (http://www.forward.com/articles/112003/) in which I frankly feel the economy was used as a scapegoat to avoid perhaps some of the more difficult realities.
While I’m not arguing the economy is not a factor. I can’t help but wonder if the school has done any kind of self-evaluation of their program to determine the perception of it among potential families shopping around. Perhaps their facility isn’t well maintained, perhaps their leaders aren’t equipped to be effective good will ambassadors, perhaps their marketing efforts are misdirected, etc. If donations are down, it could also be a reflection of weak relationships maintained by the school with their donors who are directing their support to the organizations that have done a better job of stewarding the relationship and ensuring ongoing support.
My personal feeling is that one reason why the economy is “so bad” is because the perception of the economy is “so bad.” I believe leaders in nonprofit organizations have an opportunity – and responsibility – to ensure vital services continue and one thing we can all do to help is to stop talking doom and gloom and commit ourselves to “going the distance.” This may include challenging ourselves to take an honest assessment of our organizations and do what we know we’re supposed to do or what we say we do. Perhaps now, better than ever.
I welcome your opinion.
Seth Bloom, President
Bloom Metz Consulting
Specialists in nonprofit fundraising, strategic planning, marketing and leadership development
http://www.BloomMetz.com