Heartfelt Donors Are Key in Tough Economic Times

Do you want the good news? Or the bad news? Well fortunately, the good news and the bad news are the same in this case. Thanks to good old American generosity, and the extra hard work of nonprofit fundraisers, 2008 can lay claim to gifts and pledges of $307.65 billion. Yes, it's a decrease of 5.7% on an inflation-adjusted basis over the $314 billion given in 2007. But this is still incredible. In fact, I think it's amazing - more than $300 billion given to charity in a time when there is a pervasive feeling of insecurity due to lost homes, businesses, jobs, wages, retirement assets, benefits and some personal dreams. Yet, according to Giving USA's 2009 report, contributions from individuals were approximately 75% of the total gifting in 2008 and bequests were about 7%. As I've often said, individuals ("heartfelt" donors as I like to call them) as opposed to institutional givers are the ones who come through with donations in good times and bad.

Therefore, I encourage charities that do not currently make a concerted effort to cultivate and solicit gifts from individuals to look at their reasons for not pursuing this avenue. To me, it seems a "lopsided" way to fundraise. There's absolutely nothing wrong with seeking grants from the government or grant-making foundations. Available funding should always be sought when the parameters fit. But I think asking for assistance from one sector should not preclude seeking help from all the others that may be available, even if one seems a little scarier than another.

Building individual donor generosity and loyalty can take more time, but people are there for the long haul and they can help to grow a solid base for ongoing outreach. Plus, I don't have to tell you the only way a planned gift will come through is if a person makes your organization a part of their estate plan.

It's still a painful time for so many nonprofits, having cut programs, salaries, benefits, staff and more in an effort to quickly balance expenses, which seem to steadily increase despite these cuts. Nevertheless, $307.65 billion is a very serious number and it tells us we must be doing something right because even though donors gave up so much in these tough times, they tried very hard not to give up on the charities they love.

BREAKTHROUGH TIPS

One thing I know for sure: zero "heartfelt" individual donors equals few, if any, planned gifts!

Usually fundraisers' feelings aren't hurt if they're turned down for a grant from an institution. But, if an individual prospect says "no," the solicitor is mortified! Calling on people for support is scary because their giving guidelines are not as clear as institutional and government grantors. Also, it's harder to feel "it's just business" when you're speaking, one-on-one, with an individual. Yet, if you use some research and your own common sense, you may find the pathway to success is clearer, more gratifying, and not nearly as scary.

• Ask your board members and ED to help you find prospects.
• Don't assume because someone has money they will give it to you. Find out what your prospect cares about and highlight your nonprofit's work in this area. If they don't care about what your organization is doing, don't ask them for money. So much for rejection counseling.
• Instead, find someone who cares about what you do and tell them why your organization is special in this area.
• Utilize prospect research resources.
• Look through the donor recognition sections of annual reports for organizations with missions similar to yours, to see if you or your board members have any relationships with these people.
• See what they have given to missions similar to yours, and when.
• See what you can learn about family matters that may be relevant to a gift.
• Try to get a person the prospect respects and likes to make an appointment on your behalf or accompany you on a presentation or solicitation. Your board member, maybe?
• Find out if there are volunteer opportunities in your organization for prospects who might like to start out with this method of helping.
• Cultivate, cultivate, cultivate! Special notes, pictures, articles, etc..

Building leadership will strengthen your fundraising now and later. Remember, since recessions seem to be a time when people are re-evaluating their priorities, don't forget you may eventually secure their planned gifts to soften the next economic downturn.