member meeting may 20 2011 nancy racette whats happening and whats working in todays fundraising...

What’s Happening and What’s Working in Today’s Fundraising Environment

Nancy RacetteChief Operating Officer

1

• Current Giving Environment• Giving USA• AFP survey

• Trends• What are donors looking for?• Success is possible

• How do we achieve success?

2

Overview

In 2009: Total estimated charitable giving dropped 3.6%

3

Current Giving Environment

4

Number of 501(c)3s 2000-2009

5

Total Giving 1969-2009

6

Current Giving Environment

Total Giving for 2009 was $303.75 billion

By Source of Contribution

By Type of Recipient Organization

7

Current Giving Environment

8

Giving to International Affairs

9

Giving to Human Services

10

Big Picture

Crisis, what crisis?- Possibly the worst period

for fundraising in the past 40 years

- AFP’s recent surveys indicate poor fundraising performance in nearly every type of organization

11

Current Giving Environment

2007 survey: 65%

12

Current Giving Environment

2009 survey: 43 % of organizations raised more funds in 2009 compared to 2008

2008 survey: 46%

13

What strategies are working?

1. Secure organizational commitment

3. Develop a multi-tiered strategy2. Secure volunteer leadership

4. Develop an investment plan with a clear ROI5. Develop a vision that inspires6. Develop a feeder system7. Develop an engagement strategy8. Prove impact9. Steward dollars

10. Stick with it

14

What are Donors Looking For?

15

World Giving Index

16

Trends: Individual Major Gifts

• Mega Gifts• Small gifts to many orgs becoming one gift to one org• International markets• Board driven fundraising

Opportunities• Multi-year commitments for health innovation programs/restricted giving• Global Philanthropists

17

Trends: Direct Marketing

• Direct response is increasingly expensive• Organizations with a monthly giving program have

higher renewal rates and longer term donors

Opportunities• Develop monthly giving programs and other structural

programs that renew automatically• Promote bequests as legacy

18

Trends: Internet

• International relief and development orgs are becoming increasingly proficient with the use of the Internet

• Successful campaigns rely on urgency• Inexpensive access to mass markets

OpportunitiesBuild a proactive program that targets the right audience

19

Trends: Corporations

• Branded corporate philanthropy programs are common

• Seen as business investments• Increase in public/private

initiatives• Board driven fundraising

Opportunities• Multi-year global partnerships• Use emerging markets as entry• Leverage Board relationships

20

Trends: Foundations

• Seek new and innovative programming with • Demonstrable impact• Integration of activity between NGOs• Largest Foundation Gifts often the result of

relationships at the board level

Opportunities• Seek multi-year grants through programming that

impacts sustainability• Develop ability to measure impact

21

Trends: Endowment

• Many organizations are building moderately-sized endowments

• Augmenting the annual giving program

Opportunity• Manage finances in such a way as to build

endowment

22

Trends: US Government Awards

• Collaborate across departmental lines• Holistic• Democracy • Capacity building• Increasing grant budget

1. Yes, we can!

23

How Do We Achieve Success?

2. Be candid 3. Remember your mission4. Act!5. Don’t stop asking6. Remember and report your data7. Understand the challenge8. Focus on the long term

24

Conclusion

The End!