Commentary with Kirk
We're told that less is sometimes more and when it comes to a third fundraising event (or 4th or 5th), we need to think critically about its benefits and possible consequences to our long-term funding success.
So why not have a discussion? Let's look at questions and answers, and see if we can find some ground to stand on when we are questioned about whether a third event is always needed or necessary:
If we are going to build our budget, our third event is necessary. Look what we would lose if we eliminated this fundraiser!Generally this third event means we have either two events in the spring (January through May) or two in the fall (September through mid-November). Because events rarely occur in the summer or in the Christmas season, having two events in either spring or fall means that we are going to have a season where we are constantly in "event" mode.
This is not to say that we always eliminate a third event. We do however, need to look at this event in light of whether it is actually advancing our overall fundraising plan. Keep in mind: Every minute spent on a third event is time not spent on other revenue enhancing projects.
We already have a third event. If we are going to drop one of our events, how do we choose which one goes?To answer this question, let's throw out a principle. Unless an event is raising a significant percentage of your overall revenue, we must improve it or remove it. The word "significant" will have different meanings for different organizations. Here is a rough idea:
If we are not reaching these rough benchmarks, we either need to fix these events, or get rid of them as they are eating up one of our most vital resources: Time.
My guess is that if we look at each of our three events, we will find one that falls close to these numbers and needs a good look.
One caveat: If your banquet is falling below our suggested numbers, choose this one to fix. A fundraising dinner should be your strongest overall event; if it is not, there is great room to grow.
How do we replace the lost revenue?Most of our ministries miss opportunities in two areas: Monthly Support and Major Gifts. By shifting our focus toward building these two revenue streams, we might find a long-term, foundational increase in funding.
For instance, adding 25 monthly supporters over the course of a year (at about $40 per monthly gift) adds $1000 per month or $12,000 each year . . . And this will only increase in years to come as we add more supporters.
Consider major gifts, too. If we create a strong strategic plan (For the coming 3-5 years) and show a major supporter specific ways a major gift will be utilized, we will see these friends of the ministry respond.
What if we took the time we spend on that third event and met with one major supporter each month and asked for a gift of say, $5,000, what might happen? We are told that when we get to know someone who can make a major gift and truly build a relationship, when we make a reasonable, well-thought-out ask, the odds of a gift are more than 80%. At an average major gift of $5,000 then, twelve meetings would, in one year, likely mean some $50,000 in funding.
Different centers will see varying results, certainly. But perhaps we need to shift our thinking from "event" to "let's simply lay out a major vision and ask."
Should we always seek to eliminate a third event?No, we're not giving a hard and fast rule here. We do however, want to help us consider whether a third event is necessary to move toward a higher income figure.
On the other side of this, many centers have a third event that is totally unrelated to other events and in fact, reaches a different group of people. A golf event is a good example here. Some ministries are raising $50,000, $75,000 and more through golf events—completely separately from banquets, walks, baby bottle campaigns and other events.
The point? A third event is not automatically "bad," but we do need to make sure it is a significant fundraising avenue. And as we look at three events, let's make sure we do not lose focus on our other revenue streams.
by Kirk Walden, Advancement Specialist
Click here for more of this month's Advancement Trends in the Life Community.
A successful, effective advancement plan is not an overwhelming task; nor is it one that requires extraordinary fundraising skill.
Frankly, a winning plan for raising funds and advancing the ministry to a new tier is all about consistency and . . . Smart planning that is based on incremental improvement.
Here is what I mean:
Often we look at our finances and declare, "We need another event" or, "We must make major improvements in this area or that one in order to raise these funds!" On the idea of another event, in this issue we will blow that myth out of the water. If your ministry has two events, you have plenty. A third can actually be a detriment to a winning plan.
And when it comes to "major" gains in fundraising, most of the time we will find that it is step-by-step, small improvements that make the biggest difference to our overall success. This month, let's take a look at seemingly slight changes that can bring us powerful results, over time.
If we look long-term, we will find three avenues for success:
EvaluateTime spent evaluating our current fundraising plan is always time well spent. Give our events a second, and third, look. Let's make sure each event is a wise use of our time.
PlanSpace events, appeal letters and in-person asks so that we are not constantly in an overwhelmed rush. Back-to-back events burn out all of us. And running an event (such as a baby bottle campaign) nearly year-round never gives us a chance to breathe.
Focus on the long termImplement long term funding streams such as building monthly support and regularly meeting with those who can give major gifts, setting up your ministry for success long into the future.
For instance, did you know that adding just two $40/month donors each month will result in more than $55,000 in yearly funding over five years? That's success. Check out other articles in this month's issue that show us the way to a winning development plan, in good time.
Click here for more of this month's Advancement Trends in the Life Community.
By Kirk Walden, Advancement Specialist
The Year End Appeal can be one of our most successful development initiatives of the year. This is our opportunity to tell our story, unveil new plans, and invite those who are in a giving frame of mind to join us in launching a successful 2015.
Ministries and organizations that forgo this opportunity miss out not only on gifts that can make a major difference in the bottom line, but also lose a great chance to begin building relationships with those who receive our other mailings.
There are reasons some ministries decide not to send a Year-End Appeal, but any objections to this endeavor are easily answered.
With mailing expenses, the Year-End Appeal costs too muchLet’s say we send 1000 letters, a $490 investment in postage. With envelopes, paper and ink, let’s say we spend as much as 50 cents per package on color printing. That’s about $1.00 per mailing. That’s $1,000. If ten out of 1,000 recipients send us $100, we’ve already broken even. A well-written year-end appeal will not lose money.
No one reads appeal lettersWe can’t expect 50% response rates, because it is true that many people throw away appeal letters. Yet, every major non-profit sends appeal letters; they do so because they know this is a great way to reach new, and existing financial partners. In addition, many—especially the home-bound—only give to appeal letters.
We do appeal letters at other times of year. We do not want to overwhelm our donors with junk mail.Take it from someone who signs up for newsletters from pregnancy help organizations all over: While you keep close track of your appeals, your recipients do not.
Occasionally someone will send a ministry a note saying, “You send too much mail,” but we absolutely cannot base our mailings on one or two complaints. People are busy—they don’t have time to worry about our number of mailings.
Most ministries do not send enough appeal letters. The Year End Appeal is at the top of the list. This month, let’s make it happen.
Click here for more of this month's Advancement TLC.
Our Year-End Appeal is not simply a fundraising letter; it is our opportunity to impart our vision to the hundreds of people (thousands?) on our mailing list. This is why it is so important that we paint a large vision in this letter.
So consider, what do you want to accomplish in 2015? What is the big picture for your organization? What initiatives are new? Which initiatives are due for a major upgrade?
If there is nothing new or there are no major changes, consider emphasizing several key areas that are most effective in changing and saving lives.
When we ask, let’s think big
The simple truth is that our response rate on our Year-End Appeal is not going to be 20% or something like that. We all know many of our letters go in the trash. That’s certainly okay, and not a reason to fail to send out a letter.
What this means however, is that we need to think big.
This is not our “diapers and wipes” letter. In fact, let’s stop for a moment here and make it clear: We never need to use our newsletter, e-blast or any other communication to ask for layette items. When we do this, we are proclaiming to the world that we are a small organization, doing small things. Major donors see these asks and quickly decide, “They have no need for the gifts I am considering.”
Therefore, our asks need to be significant, with one exception. Sometimes when we are asking for a first or second gift in a specialized appeal letter, we might ask for a small amount ($15-$30) to gauge interest in our work.
In this letter it is certainly fine to let people know we would be thankful for any gift, but overall let’s be looking to help fund initiatives that require larger gifts.
Click here for more of this month's Advancement TLC.
Sometimes it is the small touches that make a big difference with our Year End Appeal. As we prepare to connect with our constituents at this crucial time, let’s consider these ideas:
1. Get rid of “Friends”We never want to start a letter with “Dear Pro-Life Friend” or simply, “Dear Friend.” Mail merge is simple; we need to make sure our recipients see a salutation addressed to them.
2. Consider a teaser on the outside of the envelope“200 more lives saved in 2015?” might catch the eye of a reader, and inside we can promote any of a number of initiatives: marketing, a fatherhood initiative, ultrasound. Give readers a reason to look inside, starting on the outside.
3. Stratify, stratify, stratifyWe can’t say it enough; we must be sending different letters to different people. While the main content of the letter will likely be the same, our ask should be different based on the person reading.
For instance, those who have never given might see a phrase such as, If you haven’t yet had an opportunity to give to First Choice, now would be a perfect time. The monthly supporter might read, Thank you for your continued support of First Choice. If you are considering a special gift to First Choice, now would be a perfect time. The difference is small, but someone giving each month wants to know you know that fact when they read your letter.
Stratifying our list, breaking down our mailing list based on support given, is vital in a letter like this. It can make the difference between an average return on our Appeal Letter, and a great return.
4. Something extra with your signatureIn appeal letters, the “P.S.” has gone the way of the Dodo. However, this doesn’t mean we can’t write a quick note at the bottom of our letter, just below our signature. Without writing the actual “PS,” we can jot down a short phrase such as “Thank you for reading” or, “I look forward to hearing from you.”
The better you know a recipient, the more personal the note can be. Anything at the bottom of the letter—in ink—tells the reader that you took a little extra time for them.
When they see your note, they may take a little extra time for you, too; the time to write a check.
For many ministries, Year End also means the end of the budget year. If we are trying to catch up on the budget at this time, we need to be careful in our appeal.
Our friends do not want to hear—every year—that we are behind. If we stay on this road year after year, our readers are going to question our stewardship.
Instead, let’s look at some items—which are likely in our budget—that might make for good Year-End Appeals.
Catching up on the budget
Didn’t we just say to be careful about this? We did, so here is how to be careful. Take the ministry that needs $15,000 in new funds in order to finish the year in the black.
Instead of talking about how behind we are in the budget, why not say something like this: “$25,000 for First Choice at Year End will not only finish our 2014 on a strong note, these funds will also launch us into a successful 2015, when we plan to . . .”
See the difference? The budget shortfall may be $15,000, but our letter is looking beyond ‘14 and into ‘15, with a positive outlook
Thinking of hiring a person to run your Fatherhood initiative? Factor in not only salary, but all materials, the cost of heating and cooling office space, etc. Roll it into one number and ask—not for simply a new person, but for a fully staffed Fatherhood Initiative.
Advertising and marketing is expensive; and some of our constituents don’t understand our need to advertise, making this ask more difficult. Phrasing matters. How about, “In order to best connect with those who need us, we must have a powerful online presence, and we need to be wherever they go. To make this connection through television, radio, the web and social media, we plan to invest $22,500 in 2015. The result, we believe, will be as many as 175 saved lives.”
Brick and mortar
No doubt, renovations and any building projects are effective asks. If we connect our renovations to reaching clients more effectively and saving more lives (and changing lives!), our odds of success grow.
If we are considering a conversion in the next year, there is every reason to be asking now. There is no reason to wait—year end is a great time to start the process.
We all know Black Friday, the day after Thanksgiving. And yes, how can we forget Cyber Monday, when all of the online retailers rally for our attention?
The newest of them all is Giving Tuesday (represented online as #GivingTuesday), begun in 2012 and now catching on across America and in many nations around the world.
Launched by groups from Google to the United Nations, #GivingTuesday is a day to remember charitable giving—and we don’t need to miss out. Here are several ideas to place your ministry at the forefront:
Make sure your online site is ready
Update your giving site to remind readers of #GivingTuesday. The actual date is December 2; this should be prominent as this day approaches.
Set a Goal
If your center has not emphasized #Giving Tuesday in its first two years, a modest goal would be sufficient. In the goal, show exactly where funds would be directed and connect the goal to client outcomes. This is not the time to ask for a computer or materials: “On Giving Tuesday, help us raise $2500. Every dollar given online on Giving Tuesday goes directly toward our Operation Ultrasound Initiative, paying for 25 ultrasounds that will bond women and men with their children, saving lives and changing the lives of moms and dads.”
Remind, remind, remind
In the weeks leading up to #GivingTuesday, remind your constituency through E-Blasts, Twitter, Facebook and other social media. Make sure it is announced wherever you can.
One Takeaway . . .
#GivingTuesday does not replace your Year End Appeal. There is room for both in your development plan.
The following is a commentary for the CEO or Director of Advancement to include in an E-Blast, Newsletter or other communication. Use as you wish—no credit is due to LifeTrends or Heartbeat International. This is for you to spark ideas, or use “as is.”
It is the time of year when charities and ministries all over send us letters, asking us for year-end gifts. And why not? This is the giving season and it only makes sense that non-profit organizations would see this as the perfect time for much-needed gifts.
And, no surprise; you will receive a letter from us as well.
But why? Are we simply wanting to be a part of the giving season? Is this just a time to pad our giving as we move toward 2015? Is this letter just another portion of a fundraising plan? No. Not at all.
While Year-End is a time when we normally ask friends to consider a gift, this is not a normal time in the life of this ministry.
In truth, this is a watershed moment for this ministry, which includes all of us: Prayer Partners, Volunteer Staff, Board Members, Compensated Staff, Financial Partners . . . All of us. This ministry has always been about all of us, working together to create a massive cultural shift in our area—toward life.
Let me share something with you: We are closer now than we have ever been to this cultural shift.
This year’s “Year End Letter” then, is not just another letter for any of us who consider ourselves a part of the First Choice Family. Not at all.
In this letter we will outline where we are going, show us just how close we are to making an incredible new impact on our community, and what it will take in order for this change to take place.
So when you open your mail a few days after Thanksgiving, amidst many other letters you will find one from me.
I trust you will open it. We have a lot to share, and a lot of dreams ready to come true. Give this letter a first look, and a second.
Big things are about to take place—and we are going to be a part of all of them . . . Together.
By Kirk Walden, Advancement Specialist
Click here to download this CEO Commentary as a word document.
Thank you letters keep you connected to your partners
Each month, Advancement TLC brings you a sample “Thank you note” to send to your supporters. November’s letter is below:
Dear Barney & Thelma Lou,
When I think about where this ministry has been and where we are going, I can’t help but be excited.
I’ve shared our vision in newsletters, letters like this one and in churches and around the area. And as you probably know, I’m nothing but optimistic about the future.
But there is something else I’m excited about: The fact that this ministry never was, and never will be, about one person’s ideas or even the thoughts of some select group.
While our board of directors is entrusted with major decisions, the simple truth is that this ministry is about all of us. It is a shared ideal that we can impact our culture toward life and we can do so right here in (name of city or area).
And best of all, we all have the honor of playing a role. Your support—through this and so many other gifts—creates a powerful partnership that says “We are in this together.”
So, thank you—again. Together, we are changing our world here, one life at a time. Sincerely, CEO
Click here to download this thank you letter as a word document.
The Year-End Appeal Letter can be one of the most effective fundraising initiatives we have in our development plan.
A successful Year-End Appeal can bring us through a difficult year, launch the coming year on a positive note and perhaps most important, draw new supporters into the ministry.
And the Board of Directors can have a tremendous influence on the success of this endeavor. Here are some ways the board can assist:
Signatures matterEach board member should have a copy of the ministry’s mailing list. From there a board member can highlight names of those with whom he or she has a personal relationship. The board member’s name can be added to the CEO as a signatory on the letter, making the letter more personal. The more personal the letter, the higher the probability of a positive response.
Bring new names to the tableEach board member can bring a list of 10, 20 or more names of friends who need to be added to the mailing list. As in the suggestion above, the board member should be a signatory on letters to these friends. In addition, the letter can include a brief statement from the board member such as, “As a board member, I wanted friends like you to receive this special correspondence. Your gift would mean so much to those who come in our door, and to me personally. Thank you for reading!”
Let’s remember to . . . RespondBoard members are leaders and as such, special appeals—like that of the Year-End Letter—call for action by those who lead. By sending in a generous gift we provide encouragement to staff, and we have the joy of knowing that we are fully involved in our ministry just as we are asking others at this special time of year.
Takeaway Thought:In a ministry’s development plan, often it is the “little” items that get overlooked; yet those seemingly small things can make quite a difference over the long term. Board member participation in the Year-End Appeal is oft overlooked; participate in the three items above and your ministry will be well ahead of the curve.
Click here for more of this month's Advancement TLC!
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