It's a new year and a brand new blog!! I'm very excited about blogging and I'm looking forward to sharing my thoughts, views and opinions on the sector.
In the current economic climate, it makes sense to me to write my first blog on Fundraising in a Recession (now that is has been officially announced). Many not-for-profits may be feeling the impact of the financial crisis and others may be wondering how to cope.
It's undoubtedly a difficult time; however there are ways to navigate successfully through this period. There's been too much negative press surrounding the recession and I believe, by implementing these suggestions below, not-for-profits will remain successful during this time:
Retain your supporters
Now is the time to show your supporters you appreciate their donations. It's important to respond as quickly as possible to thank supporters when they make a donation. You want them to know that you value their support and the quicker you do this, the better. SMS is most effective way to do this as responses are almost instantaneous and go right to the supporter's mobile phone. This increases the likelihood that the message will be read and it will also help to build strong support relations. In addition, another way to help retain supporters is to understand and communicate in ways which they prefer, for example, if supporters wish only to be contacted via email, then you should respect that.
Consider that for an organisation raising £10M annually, a 3% increase in donor retention could equate to an additional £1.5M in contributions over a three year period. In 2009, organisations are likely to see greater returns by improving retention rates and average gift size vs. new donor acquisition.
Innovate
Now is the time to do more with less by doing things differently. Believe it or not, now is the time to invest in software or upgrade your current system because that will help you become more efficient and streamline your work processes. It will also provide a considerable ROI and help to save you money in the long run. Many won't even need to do that - talk to your software partner and get their fundraising experts to review your use of your system - that may just be the best investment you ever make!
Diversify
Many of the organisations we work with are suffering because of an over-reliance on legacies and corporate giving. Moving forward, charities must work to diversify their income streams and develop a healthy balance of voluntary income (committed givers and major donors), fees for services, grants, legacies, corporate giving, etc.
Emphasize CRM
With less money to go around there will be increased competition for donors. It's the charity that can effectively engage with the donor, which can be responsive and develop a real, two-way relationship that will win out in the end. We believe it's the organisations that can make the most of these opportunities that will thrive. Make all communications personal, anticipated and relevant
Make the most of the Internet
In our recent State of the Not-for-Profit Survey, 96% of all respondents reported having a website but only 26% actually had a strategy for how to use the Internet to support their organisation's mission. Given today's economic climate, charities must leverage the power of the Internet to acquire, engage and retain supporters in a more cost effective way.
Data
In a recession no prudent CEO or FD will support anecdotal justifications for spending. Now above all is the time to collect data about everything you do; normalise it (make sure you know the data about the data); integrate it from the different sources; analyse it and from that insight you will be able to move forward in certainty and gain support from your board for all sorts of investments.