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

Nancy RacetteChief Operating Officer

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• Current Giving Environment• Giving USA• AFP survey

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

• How do we achieve success?

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Overview

In 2009: Total estimated charitable giving dropped 3.6%

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Current Giving Environment

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Number of 501(c)3s 2000-2009

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Total Giving 1969-2009

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Current Giving Environment

Total Giving for 2009 was $303.75 billion

By Source of Contribution

By Type of Recipient Organization

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Current Giving Environment

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Giving to International Affairs

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Giving to Human Services

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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

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Current Giving Environment

2007 survey: 65%

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Current Giving Environment

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

2008 survey: 46%

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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

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What are Donors Looking For?

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World Giving Index

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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

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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

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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

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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

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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

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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

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Trends: US Government Awards

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

1. Yes, we can!

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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

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Conclusion

The End!