challenging times spain english version 31mar09

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How to make sure your donor continues to love you

in good times and in bad

Daryl Upsall and Diana Ruano

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Speaker Background – Daryl Upsall

• 25 years working in NGOs• Worked in fundraising, campaigning and communication in 40+

countries• Headed Greenpeace global fundraising for 8 years and responsible

for raising more than $1 billion for Greenpeace and increased global committed giving from 18% to 60% of income

• Director of 4 fundraising agencies in Spain (Telephone, Face to Face, Consulting, Corporate Fundraising) with over 300 staff

• Very focused on recruiting and retaining regular committed donors• Clients are mainly international NGOs and Spanish charities and

80% of Spanish fundraising NGOs• Based in Madrid with clients in 12 countries and most of the

international HQ of INGOs and UN agencies

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Diana Ruano, Consultora Senior Daryl Upsall Consulting International (DUCI)

• Diana trabaja en una variedad de servicios de consultoría para el tercer sector. Algunos de estos servicios incluyen: estudios de nuevos mercados para ONG internacionales, estrategias de marca integradas para nuevas organizaciones,, desarrollo e implementación de estrategias de captación de fondos, así como la revisión estratégica para organizaciones locales e internacionales. También ha supervisado el lanzamiento de nuevas herramientas de fundraising en el mercado español.

• Diana proviene de la consultoría de marca Bloom Consulting, donde trabajó como Manager de Estrategia, después de una carrera internacional tanto en el sector privado como en el tercer sector. Lideró al equipo de estrategia en todas las evaluaciones y propuestas a clientes.

• Diana obtuvo su licenciatura en Relaciones Internacionales de Stanford University y un Master Internacional en Resolución de Conflictos de la Universidad Oberta de Catalunya.

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Daryl Upsall Consulting International SL Client List - International HQs

• ActionAid International• Age Concern International• Blackbaud• CARE International• Charles Darwin Foundation• Christian Aid• Christian Blind Mission• Christian Children's Fund• Club de Madrid• Concern Worldwide• Covenant House/Casa Allianza• Deaf Child Worldwide• Drugs for Neglected Diseases Initiative (DNDi)• European Critical Care Foundation• Foundation Theodora• DARA Foundation• Global Reporting Initiative• Greenpeace International• Habitat for Humanity International• HelpAge International• International Deaf Children's Society• International Institute for Strategic Studies• Merlin

• MORI• MSF Access to Medicines Campaign• MarViva• Oak Foundation• Pew Environment Group• Red Cross (IFRC)• Save the Children International Alliance• Social Accountability International• SOS Kinderdorf International• The Antarctica Project• The Brooke• The Climate Group• The Global Fund• UN – Food and Agriculture Organisation• UNESCO• UNHCR• UNICEF• United Bible Society• World Association of Girl Guides and Girl

Scouts • WSPA• World Villages for Children• WWF International

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There is no crystal ball..only contradictory evidence

• In February UK the Charitable Giving Report, a monthly survey of 30,000 UK donors reported that nearly half did not intend to change their charitable giving over the next six months, although a third planned to give less.

• In contrast, only 15% of respondents to a survey carried out in November 2008 said they would reduce their donations.

• A direct mail test by the Prostate Cancer Charity in January indicated that donors were less likely to give if the tough economic climate was mentioned in the text of mailings .. but other organisations have reported that the opposite is the case.

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• 71% of UK charities forecast income growth in 2009 Poll by Blackbaud in October 2008

• 27% of UK donors are already giving less and 11.5% have stopped giving according to a European poll from Survey Sampling Inter-national in November 2008

• 33% of donors will give less in the coming six months, but 50% will not change Tangible Response's Charitable Giving Report in February

• 55% of fundraisers think the worst-hit cause area will be arts and culture in an international poll launched form the International Fundraising Congress in October 2008

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• 71% of UK fundraisers surveyed by IT firm Blackbaud in a European poll last October predicted continued growth, with 50 per cent expecting online donations to increase.

• Fundraising consultant Martin Kaufman told delegates at last year's Institute of Fundraising Conference Scotland to slash parts of their fundraising budgets.

• But a paper presented by another consultant, Tony Elischer, a month before advised fundraisers not to cut any part of their budgets.

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• Spain has the same contradictions. In a report carriedy out by the Observatorio del tercer sector, some experts claim the crisis situation will increase the solidarity and cooperation among the populations. But others highlight that personal difficulties will make people give less resources and less of their time


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=mc Global Fundraising Confidence Survey for IFC

This report analyses the responses to a global online survey undertaken over 5 days by the Management Centre (=mc) as part of the IFC conference in October 2008. It was analysed by =mc’s knowledge management expert David Segal.

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• Specifically the survey sought the views of 100 leading worldwide fundraising thinkers on:

• How serious the financial crisis is- and the broad strategy fundraisers should adopt in response to this global phenomenon?

• where in terms of ‘cause’- children, environment, faith etc- these international experts think the financial crisis will impact most?

• what action our experts thought fundraising directors should take to prepare for the emerging changes?

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Level of ImpactAverage Weighted Responses by Region

0 10 20 30 40 50

Arts heritage and culture

International development

Science and scientific research

Human rights

All of the above

Animal welfare and rights

Elders/older people causes

Disability and disability rights

Education

Medical research

Health

The environment

International emergency relief

Faith based causes

Children's causes

N America Africa, Asia and Latin America Europe, ANZ and M East

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Problem Perspective

0% 10% 20% 30% 40%

No matter what happens we need to fight for marketshare now- expansion is the only option

this a major problem- it will reduce donations if wedon’t take effective action

this a major problem- but it will ‘blow over’ anddonations will start to grow in 2/3 years anyway

No matter what happens we need to take action nowto reduce costs- pragmatism is the only option

this a major problem- it will massively reducedonations and we need to accept that

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Donor outlook less gloomy amongst core supporters

The propensity of hardcore non-donors to say they have given, or will give, “less” to charities during a downturn – when they don’t give anything anyway – may be painting an overly-gloomy picture of voluntary revenues in the third sector,

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Donor outlook less gloomy amongst core supporters

• Those more likely to say they either have given less, or will give less, to charity during an economic downturn are less likely to have given anything anyway!

• Charities should focus on their actual core donor pool, which remains resilient - especially amongst regular DD/SO donors - survey finds

• “Charities should identify and woo their core donors, ignoring non-donors claiming to give less than the nothing they actually give,”

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“charities should identify and woo their core donors”

• Reliable, hard financial data measuring the actual impact of the economic downturn on donations won’t be available for a while.

• This research suggests the picture may not be quite so bad as the top-line figures might suggest

• Those people more likely to claim a past or future cut in their donations to charities are also more likely to not, in truth, be donating any money anyway;

• Hardcore of actual donors are significantly less negative about giving, especially if they are regular DD/SO givers.

• Thus, charities should identify and woo their core donors - and ‘tough out’ any fair weather donors who may flake away, or any chorus of non-donors claiming to give less than the nothing they actually give!” nfp synergy

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Sounds familiar?

What is going on in Spain?

Is there reliable data available?

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Recession and Impacts on Fundraising

What do we think will happen?

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Challenges in Spain

Note: • Contrary to the UK, information about the charity

sector in Spain is scarce and inconsistent• So that everyone benefits and has a more

complete vision, each on of you should be actively open to participate and engage in studies, focus groups etc so that information about the sector becomes more reliable

• Take advantage of the AEF!!!

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Fundraising Techniques

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• A major recession will educate donors to act When money is hard to find the donor offer has to be compelling they will shop around to choose the ones “meeting my life choices/values”.

• Corporate fundraising: possibly the first area to show signs of moving to a static position and then decline. Already we have seen deals falling through that have taken many months of planning and negotiations.

Tony Elisher © THINK Consulting Solutions 2008

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• Foundations: no immediate effect in this area as grants are distributed based on the financial performance of their portfolios twelve to twenty four months ago, but the impact may be significant in the future depending on where and how the foundation’s assets are invested and managed.

• Individuals: this is going to be a slow burn as the impact of the recession hits the different aspects of people’s lives. Already visible in markets such as the USA, UK, Netherlands, Ireland is the effect on the key area of recruitment of new donors.USA will be hit hardest as has least EFT monthly giving


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• Events: in the hardest hit markets we have already seen the early signs ofhow high net worth individuals (HNWIs) are going to respond to ‘glitzy’ charity events, they are simply not willing to pay the premium price required for such occasions.

• Major Giving: this has certainly been the growth area of the last few years so there is considerable resource and expectation riding on this technique andsource. Early signs are of a considerable slow down in HNWI’s willing to make commitments, pledges or close gifts


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• Legacies: UK charities are already seeing reductions of up to 30% of the value of estates, so re-forecasting may be necessary.

• Community: the loyalty and the connection in this area should form a strong basis of support to help a charity through the next eighteen months, but again realistic expectations around financial support will be required.

Tony Elisher © THINK Consulting Solutions

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Cancellations of charity direct-debit donations soar

Cancellations of direct-debit payments to charities has rocketed, according to a report by payment processor firm Rapidata.

• September 2008, 50% more people cancelled their direct debits than in the average pre-recession September,

• December 2008, 67% more cancellations of direct debits than for the average pre-recession December

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• In Spain the number of non payers has increased compared to last year. In clarification campaigns, the churn rate has increased, specifically because of economic reasons

Fuente: Fundraising Company 29mar09


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Scott Gray, Managing Director of Rapidata:

“In these troubled times charities need to shift away from an emphasis on acquiring new donors to looking after current donors.”

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Challenges in Spain• Philanthropy in Spain is still relatively young• So there is still huge potential. According to the most

recent CONGDE study, during 2007, more than 750.000 people supported an NGO in development as a regular donor and more than 230.000 as a one off donors. Together with other factors there are about 1.000.000 people collaborating with NGOs economically. Of a population of 44M, still a great deal of room to grow

Fuente: CONGDE, Informe 2008

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Retos en España

En países más maduros y con más años de F2F que en España todavía sigue siendo la principal herramienta de crecimiento. en UK,

60 millones de habitantes Socios regulares entre todas las ONGs de 28 millones

representan 47% de la población

En España 44 millones de habitantes DUCI estima que entre todas las ONG, el total de donantes es

de unos 2,5 millones, representando 5% de la población

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Comparing F2F UK Y España

• En España en el año 2008 se hicieron alrededor de 120.000 altas.

• En UK entre 700.000 y 750.000 altas.

• En España de forma continuada y más de 5 organizaciones se lleva trabajando desde hace 5 años.

• En UK de forma masiva… más de 20 organizaciones llevan 20 años, ahora son entorno a 100!!!

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Retos en España• According to The Fundraising Company, donor

recruitment percentages are similar to last years so the crisis is still not affecting this area

• In fact according to the CONGDE number of individuals making regular donations has increased 7% in 2007

• According to The Fundraising Company, organizations offering national programs and services have a higher success rate than those working with the developing countries because people feel more identified with the current situation

• Are you seeing this?

Fuente: CONGDE, Informe 2008 y Fundraising Company

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Retos en España• Churn rate increased from 12% al 15%. Predict it might

even go up to 20%. That´s why it´s essential to keep strong recruitment of new donors

• Particularly we have to take care and do a continuous follow up with our current donors and members during times of recession

• What´s one of the most efficient tools to manage this?

Fuente: Fundraising Company

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Use of the telephone in donor relationship management

“Appreciation can make a day--even change a life, Your willingness to put it into words is all that is

necessary.”Margaret Cousins

Why use the telephone ?

• Powerful element in the overall donor communication and relationship building process

• It is interactive– dialogue rather than one way

– data gathering

• Find out why your donors are still supporting you or leaving…and use this data to make improvements and changes

Short Term Effects

• Effectively raises funds

• Gives a ‘voice’ to organisation

• Gives a ‘voice’ to supporters/donors

• Gives feedback - positive & negative

Long Term Effects

• Works with face to face, new media and telephone recruited donors especially well

• No difference between landline and mobiles

• More effective communication• More sympathetic, strategic & effective

fundraising• Closer partnership between donors and the

charity• Telephone communication becomes part of

the culture of charity

Helps develop loyal donors

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Long term effects

One important note… the key to maximize the successful effects of telephone fundraising is to back it up with an excellent data base that allows your organization at all moments to know all the interaction you´ve had with each and everyone of your donors!

www.etapestry.com/es

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Thank you – Member get Member

• Call just to thank donor and make sure they are happy with you

• Ask them to recommend the charity to friends, family, colleagues

• Normally 40% give names and telephone numbers of 3-4 people and 40% of those called convert to monthly donors!

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Dedicate a fundraising telephone line for ALL enquiries

• In Spain we are the inbound call centre for all major charity and UN agency enquiries.

• Staff trained to convert general enquiries into monthly donors

• Excellent and finding out donor motivations and de-motivations for giving

• Very cost effective/high ROI

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Recovering lapsed monthly donors…act now!

• Acknowledge the cancellation quickly, in writing, and thank the donor for their support in the past

• Offer alternatives to cancellation, such as giving at a lower level or taking a payment holiday

• Make sure donors can reactivate easily and securely through your website

• Attempt reactivation sooner rather than later… and do it by telephone.

• Find out why they cancelled…it is not always on purpose

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Recovering lapsed monthly donors…act now!

• Find out why they cancelled…it is not always on purpose• Try reactivating within six months and don’t leave it for

12 months or more • Regularly test sample reactivations: for instance, try

telephoning a sample of 100 donors who cancelled within six months to test for reactivations

• Set aside a reactivation budget for each newly-acquired donor

• Shift emphasis from acquiring new donors to looking after and stewarding your existing donors to reduce attrition.

The process of reactivating a cancelled donor starts from the very moment they cancel.

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“When we recognize that a better word for fundraising is "friend raising," we open limitless doors to creativity in

support of our causes.”Sue Vineyard

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Facing the fundraising challenges of the global

economic crisis

“In good times and bad, we know that people give because you meet needs, not because

you have needs.”

Kay Sprinkel Grace

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Recession – Watching is not an Option

• Hold strong: now is not a time to panic or be swept away by the depressing media hype. Accept that recession is a reality, understand its impact in your country and take action to protect your programmes and charity income.

• Consult: surviving recession is a team game so recognise you are part of several teams, all of which can help you: your department, your charity, your profession and the sector.

Tony Elischer © THINK Consulting Solutions

2008

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• Learn: look around you like never before and make your own assessments of what is happening. Learn from the commercial sector and from other charities

• Communicate: increase the communication with donors, its relevance, frequency, methods and effectiveness to share the charity’s thinking and to take them along with you

Tony Elischer © THINK Consulting Solutions 2008

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Recession – Watching is not an Option• Reforecast/remodel: in this climate you really can’t afford

to set an annual budget and simply get on with things, at the very least quarterly reviews will be more important than ever before with the ability to re-cut figures and plans

• Empathise: balance thinking about the needs of your organisation with thinking about the needs and life style of your donors

• Keep asking: against all these points we have to remember the central role of a fundraiser is to ask for support


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• Be realistic: even if you have invested twelve months planning a new programme do not plough on as if nothing is happening, revisit and re-cut your thinking.

• Embrace: the new climate and world because the world we knew yesterday will never return, the smart fundraiser lives and moves with today not yesterday.


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Fundraising recession watch

"Good fundraisers raise more money in a recession. Bad fundraisers use it as an excuse.“

http://www.recessionwatch.blogspot.com

http://www.recessionwatch.blogspot.com/

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What Can your Organisation Do?

1. Examine your income streams. Not all income streams will be affected in the same way.

2. Diversify your income streams. Over dependency on one type of income stream, one person or one company is far from ideal..

3. Focus on donor retention, through focusing more than ever on donor cultivation and donor stewardship.

4. Keep communicating with your donors. Focus on the importance of the cause rather than the organisation In addition, focus on long term plans and transparency in how money will be spent –

5. Do not stop efforts to try to find new donors. Given the gloomy outlook and the increased difficulty in finding new donors. Source: Fundraising in a Cold Climate -An Analysis by 2into3 Dennis O’Connor Deirdre Hatch

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What Can your Organisation Do?7. Keep in touch with people who have stopped

making donations keeping the relationship alive is likely to increase the chance that donors will resume giving when they can.

8. Research, research, research. Be aware of the environment and adjust your approach accordingly.

9. Consider your use of planned giving, including regular giving and legacies.

10. Avoid fundraising cuts if possible. This can have a negative impact and It can also cause problems with donor retention, if donor stewardship services are neglected.

Source: Fundraising in a Cold Climate -An Analysis by 2into3 Dennis O’Connor Deirdre Hatch

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Six Ways to Survive the Economic Storm

1. Don't curl into a fetal position. In other words, do not stop doing things that are important or even risky to raise money. The same old same old isn't going to cut it this year. This is not the time to be steered by fear.

2. Set realistic goals. The numbers are likely to be down. So manage to that.

3. Don't abuse your existing donors. You should spend more time thanking them and making them feel great. Then they'll tell their friends about you.

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Six Ways to Survive the Economic Storm

4. Get online today. If you're not already online, GET ONLINE and ask for lots of SMALL DONATIONS, including recurring monthly gifts

5. Don't undersell yourself. In an era when so many investments look like they're offering low returns, you are priceless. For a few dollars, they get a helper's high. They feel good because they did good

6. Admit to donors that it's hard. While explaining that you're a great investment, admit that your numbers are down.Ask now, because things are going to get worse before they get better.

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10 ways to... survive an economic downturn

1. Focus on retaining customers. 2. Provide outstanding customer service. 3. Increase your marketing. 4. Concentrate on products and services that sell. 5. Credit check new customers. 6. Mind your cashflow.7. Avoid borrowing.8. Cut your costs9. Streamline your operation10. Sell online

Source: Institute of Directors (UK) January 2009

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5 Strategies for Recession Fundraising1. Keep close ties to donors. Don’t make your only contact with

donors be solicitations. Focus on thanking and showing impact. Find ways to let donors see the impact for themselves.

2. Look for ways to save money on fundraising. Trim special event expenses or eliminate programs that aren’t serving you well. Look for ways to move your communications online.

3. Seek alternatives to soliciting private donations. Can you rent some of your space to another organization? Start a social enterprise? Develop a cause-marketing partnership with a corporation?

4. Collaborate to raise money. You can have greater impact and generate more attention by working with other NGOs

5. Avoid emergency solicitations. Asking donors to bail you out or save you from impending demise is not an appealing message

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“The only thing we have to fear is fear itself”

Franklin D. Roosevelt, Inaugural Address, March 4, 1933,

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Let’s raise some money

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¡¡Gracias!!

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Calle Caleruega 67 Piso 2Madrid 28033

Spain

Tel: +34 91 829 0772Mob: +34 647 450 194Fax: +34 91 302 0214

Email: [email protected] Web: www.darylupsall.com

contact:[email protected]

mailto:[email protected]

http://www.darylupsall.com/



challenging times spain english version 31mar09

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