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November 7, 2013 by royjones Leave a Comment

Are You Ready for the Golden Week? 8 Steps To Safeguard Your Year-end Fundraising

By any metric or system of measurement in fund development the last week of the year is by far the most profitable week for any charitable organization. I often refer to this week as “golden week”.

Roy C. Jones, CFRE
Roy C. Jones, CFRE

Marketing “pros” know that once the Christmas appeal is in the mail that it is NOT the time to “take a break” and relax until January.

The best development leaders bear down during the months of November and December to insure that the last week of the year is the most profitable 7-days of the calendar year.

I know some development directors who “swear by” the last week of the year. They contend that reaching their annual goals often comes down to the last few days of the year. Most contend it is often the difference between ending the year in the black or sinking deeper into the red.

The best executives strategically plan for a “yearend balance-the-books” appeal and reach out to their best donors for one last year-end gift. Be cynical if you want, but if your year was like most not-for-profit organizations you are behind in achieving your financial goals. You’ll soon have had to make some tough decisions about next year and the fact is that unless a few of your best donors step up to make just one last yearend gift you may be forced to cut vital services and programs.

Now is the time to be direct with our best donors. Sometimes the truth works!  Tell them that fundraising has been slow and you need their help so that you do not have to cut vital programs next year.

To repeat a phrase that I used to tell political candidates… “a crisis is a terrible thing to waste.”

Take immediate steps to insure that your ministry or charity can have an extra “payday” this year. Do not delay. Look at every revenue stream you have and see if you can make one last appeal to remind donors and supporters that it is not too late to have an impact. The gift they make could be the difference between your organization continuing vital services or being force to turn those in dire need away.

Here are just a few suggestions for maximizing your cash flow during the “Golden Week” – last week of the calendar year:

  1. Major Donor Letter. Send a hand addressed, multi-stamped, first class letter to your major donors telling them of the “year end crisis” you are faced with. Include a reply envelop with live stamped first class postage. This tells the donor that this is not some “fund raising ploy”. The challenges you face are real or you would not have gone to the expense of writing them and sending it first class with a First Class return envelope. I have seen many organizations do a 10 to 20 percent response rate during the last 10 days of the year.
  2. E-mail Blast. Send a “year end, balance the books” appeal to every email address you have. I suggest sending at least 3 different appeals in your email campaign during the last 10 days of the year. Sure, you will get a few complaints, but to most of your supporters they understand the importance of ending the year in the black, not red. Most who take the time to see your emails, and as importantly, notice that you have emailed multiple times the last week of the year, know that the challenges you face at year end are real.
  3. Direct Mail Letter to Regular Donors. Now is the time to send that “Urgent Gram” to your regular (those that give under $1,000) direct mail donors. If you ever had a “real reason” to send that year-end crisis appeal this is the year to do it. Trust me, it is worth squeezing in one last pay day. Push your January appeal out a week or so later and create a hole in your mail schedule so that the Monday after Christmas your “year-end” appeal is in home.
  4. Do not forget your monthly donors. Your sustainer file should be mailed the year end appeal too. If you have your sustainers coded for a “limited mail or no mail” do not forget to create a flag so they are forced into your select for the mailing. In addition, your monthly donors who have an HPC (highest previous contribution) of $1,000+ should get a phone call thanking them for their support and asking them to make a “sacrificial year end gift”.
  5. Search Engine Marketing. The last week of the year sees a HUGE spike in major donors cruising the internet looking for a local charity to make that last gift to for the year-end income tax deduction. Beg, borrow or barter for your organization… sink another $500 to $1,000 into SEM. Search Engine Marketing will pay for itself. There is no doubt that during the last week of the year you will reap large rewards and a huge number of new donors at the major gift level.
  6. Earned Media. Sure you are exhausted… you have had that special Thanksgiving push and you had a very big Christmas push, but trust me… do just a little bit more. Hold a press conference with a local celebrity or politician reminding your community that YOUR CHARITY is the group to consider making a year-end gift to. Think of creative ways to get the media on site at your ministry or charity during this week. Remember, the last week of the year is the “slowest news” of the year. The media is frantic to find content and stories to write, film and broadcast about.
  7. Matching Gift Reminders.  Part of maximizing the year end  is reminding your donors to use their employer’s matching donation. I like the idea of planting the thought as the holidays approach. You should always include a link to the matching gifts directory in all our year-end emails.  Invest the time to gather the employer matching gift forms for many of their major donors– like some universities have–the best strategy is to attach the form to the donors’ (personalized) email.
  8. Web Site Campaign. Create a splash banner on your web site telling donors it’s not too late.  Double check and QC all of your giving pages to make sure there are no broken links or dead ends.  ALSO, IF YOU USE PAYPAL BE VERY CAREFUL.  Make sure you check the option to accept American Express and then make test donation to make sure it is working.  If you don’t select the option, your gifts may not be processed.  Remember, major donors like those points. It is not unusual to see 5-figure and even 6-figure donations placed on an American Express card. 

Do not quit! Finish strong! The last week of the year is not the time to “take off” or relax. Your year could literally be turned around by a single major gift. Keep telling yourself that “it just takes one gift” to literally change your world. Work hard. Finish strong and take advantage of the “GOLDEN WEEK” in fundraising.

Filed Under: development director, director of development, Fund development, fundraising, internet giving, year end crisis, yearend fundraising appeal Tagged With: development, direct mail, direct response, fundraising, major donor plan, major donors, major gifts, monthly giving, non-profit, Roy C Jones, Roy Jones, Roy Jones Reports, year end fundraising, year end giving

October 27, 2013 by royjones 2 Comments

How 100 Cups of Coffee Could Save Your Charity

Roy C. Jones, CFRE RoyJonesReports.com
Roy C. Jones, CFRE
RoyJonesReports.com

I have had a unique career.  I have worked as a vice president of philanthropy, a director of development, and a major gift officer.  Today, I advise non-profits and provide training and support for growing their organizations.  I love sharing what I’ve learned first hand from the experiences I’ve had with thousands of finanicial partners (a.k.a. donors) and with the marketing programs used identify and communicate with them.

Over the last few weeks I have met with several wonderful charities… all facing tremendous financial challenges.  After discussions about their websites, giving pages, number of direct response appeals, ask handles, gift arrays, fundraising banquets and mail formats I ask a question that often brings long, self reflective, periods of silence:

“How many indidvidual, face-to-face, meetings did you do last year?”

After sometime passes, I expain that over the last year I worked with a charity where we made a remarkable difference in income by meeting with financial partners… I have personally met with 117 families over the last 12 months.  Of course, I always thank them for their support.  Then I listend to why they give and tailor an “ask” based upon their desires, not mine.

Make no mistake about it, it does begin with acquisition.  Acquiring donors with both capacity and donative intent only happens by design.  Then getting donors to renew their giving and increase their giving requires a plan for moving each and every donor up the “giving pyramid”.  I like to call it “climbing the ladder.”

Are your donors climbing the ladder?

As you identify donors who give or have  4-figure and 5-figure capacity your organization must put a plan in place to meet them personally.  You must thank them and, as importantly, ask them personally.

So often the thought of carving out time to meet with donors seems like an impossible task for development directors and executive directors.  My recommendation is to simply begin where you are… decide how many meetings you can do a week or a month and then DO IT!

I like to give people an easy way to visualize the task… “100 cups of coffee.”  The fact is if your charity will meet each year with your top 100 supporters you will increase giving dramatically.  Could you do just 2 coffee meetings a week? That’s all it takes…

100 cups a coffee a year will transform your charity.  I challenge you to try it!

Filed Under: development, Fund development, fundraising, major donor, major donor; fundraising;, major donors, major gifts, Uncategorized Tagged With: development, direct mail, direct response, major donor plan, major donors, major gifts, non-profit, Roy C Jones, Roy Jones, Roy Jones Reports

September 3, 2013 by royjones Leave a Comment

Are You Listening To Your Supporters?

Roy C. Jones, CFRE RoyJonesReports.com
Roy C. Jones, CFRE
RoyJonesReports.com

Every Friday I do an analysis of my teams activity to ensure they are reaching their goals for communicating with major donors.  Each member of the team details in a one page report the number of conversations they’ve had; the number of actual meetings and the number of proposals they’ve discussed with supporters.  I even go to the extreme of counting how many emails were sent and how many times the phone was dialed.

Metrics like this are important if each member of the development team is going to meet their goal of visiting face to face 100 to 150 supporters each calendar year.  However, development professionals have to take precautions to ensure that their activitity is not just about the numbers.  The real question is whether or not they are listening to the needs of their supporters.

Everyweek, after each visit with the friends of our ministry, I take the time to ask myself a few critical questions:

1. What unique thing did I learn about this friend of our organization?

2. What unique fact or message did this supporter try to tell me during our meeting?

3. What needs does this partner have on a personal level for their family, business or future?

4. What unique thing does this sponsor want to do to help our organization?

If you leave every meeting with the answers to these

Roy C. Jones, CFRE
Roy C. Jones, CFRE

four questions rest assured that you are going to see revenue increase for your nonprofit.  It will happen because you made the visit about meeting the needs of the donor, instead of just meeting the needs of your organization.

Filed Under: major donor; fundraising;, major donors, major gifts, Uncategorized Tagged With: development, fundraising, major donors, major gifts, non-profit, Roy C Jones, Roy Jones, Roy Jones Reports

August 26, 2013 by royjones Leave a Comment

Are you preparing your Christmas “check list” in August?

I am surprised at the number of blank stares I get these days from not-for-profit leaders when I use the term “LYBUNT”. If there is one thing a fundraising and development professional should be doing as 4th quarter approaches it should be making a list LYBUNTs “and checking it twice, you have to find out who has been naughty or nice.”

LYBUNT is an acronym that stands for “last year, but unfortunately not this year.” This is a term used frequently in the fundraising world to represent donors who gave your organization money last year but, who have not given you money yet this year. Fundraisers typically target this group of last year’s donors differently than people who haven’t made a gift at all.

A donor in this group is also sometimes referred to as a “low hanging fruit” or a “warm” donor since that individual could be expected to give a gift again. If you are an Executive Director, President, Board member or Director of Development there is not a better use of your time at this time of year than calling and meeting with your top donors from last year, but who have not yet given this year.

Focus on the top 15 – 30 donors who haven’t made a gift yet this year. Integration is the key to getting your calls returned: use in combination emails, voice mails, hand written notes and drop by visits to remind your LYBUNTs not to forget your charity this year. Don’t just make the purpose for the call or visit all about getting the money, use it instead, to build a real friendship with each person. Begin every call, contact or meeting with the words: “We’ve missed you this year.” Find out what’s going on in their lives, and what’s still important to them about the work you’re doing. Then ask them to make a year-end commitment to ensure that important work can continue.

Remember, in most cases the LYBUNT donor thinks that they have made a gift, most certainly within the last year. It is truly an oversight on their part so have a spirit of forgiveness and be as welcoming as possible. For those LYBUNT donors who did not forget to send you a gift, you should never presume that they lapsed because of something your organization did or didn’t do. Many donors stop giving for many reasons we might never know, like big purchases, lifestyle and work changes, and new priorities in their giving plans.

Roy C. Jones, CFRE

As 4th quarter approaches, one thing is for sure… if your donor knows that “you a making a list and checking it twice and that you’ll find out soon who’s naughty or nice” they are going to make sure that there is a gift under the tree at your charitable organization. Merry Christmas!

Filed Under: major donor, major donor; fundraising;, major donors, major gifts, Uncategorized, year end crisis, yearend fundraising appeal Tagged With: fundraising, major donor plan, major donors, major gifts, non-profit, Roy C Jones, Roy Jones, Roy Jones Reports, year end fundraising, year end giving

August 5, 2013 by royjones Leave a Comment

Your Fundraising Program Should Begin AT THE END

Roy C. Jones, CFRE
Roy C. Jones, CFRE

Every fundraising program should begin with where it ends… that’s right, where does the relationship end with your donors and supporters.

The first question every development professional must ask is how many donors who gave last year have not given this year?   In other words, how many supporters have lapsed?

If you want to grow as a charity you have to know how many new donors you have to acquire in order to replace those that have lapsed.  Remember, replacing the “lapsed” is only staying the same size as you were last year.  Once you have replaced the lapsed by either renewing the lapsed donors or acquiring enough new donors to replace the one’s you’ve lost, now you can begin to think about how to grow as an organization.

I am always surprised by the number of charities who say they want to grow, but they cannot answer the following questions:

1) how many lapsed donors do you have this year;

2) how many lapsed donors have you reacquired this year;

3) how many new donors have your acquired this year.

Then and only then can you look at the real metrics of growth which begins with your CTAD (Net Cost to Acquire a Donor). As the name implies CATD is the net cost you paid (lost) to acquire a new donor. In order to get to this number you first have to subtract your total acquisition cost from your total acquisition gross income. This is your net income. Next you must divide your net income by the number of new donors you have acquired. This is your CTAD.

The CTAD is used by good fund development managers to make budget projections, determine organization growth rates and, most importantly, project future income for their charitable cause.

Why don’t we look at an example to make sure we can calculate CTAD:

Let’s say our total gross income for our acquisition direct mail appeal is $91,000 and that our total acquisition costs are $141,500 including postage, list rental, creative, production and mailing. So now we subtract our gross income from our total costs to get the net cost to acquire all of your new donors, ($50,500).

Now, let’s take the gross number of acquisition respondents, in our example we acquired 7,250 new donors, and divide it by the net cost to acquire new donors ($50,500).

($50,000) divided by 7,250 = $6.80 CTAD

By the way, an $6.80 CTAD would be an excellent cost per donor! Many organizations will spend up to $30 or $40 to acquire a new donor.  Depending on an organizations average gift size and long term donor value (giving over 5 years) I have seen some charities spend more than $100 to acquire a new donor.

The real question for determining how much a not-for-profit should be spending to acquire a new donor really depends on what the average long term donor value is for each donor. This LTDV will always vary from one organization to the next.

However, let’s say our average donor makes 2.75 gifts a year and the average gift is $20. Each donor therefore gives $55 a year. Every new donor you acquire for ($6.80) is going to give you somewhere in the neighborhood of $270 over the next five years.

Is this a good investment? You bet. All organizations will have their own level or aversion to risk. Some will just draw a line in the sand and say we MUST break even in the acquisition effort. In other words our cost to acquire a donor must be “zero”. Organizations with this high aversion to risk grow at very slow rates and always struggle to acquire enough donors to offset their attrition rate. (Attrition is usually defined as the number of donors who have lapsed to 24 months… That’s right, you have a certain number of donors who decide, for whatever reason, and they cannot give to you any more)

There are other organizations that are willing to spend up to their average gift to acquire a new donor to the organization. So this means after a donor has made their second gift, the organization begins netting money. Still others will arbitrarily pick a dollar amount they are willing to spend. It is usually a fraction or percent of the organizations Long Term Donor Value.

LTDV is determined by subtracting your total income per donor for a five year period from your total cultivation and Acquisition costs per donor for the same period.

Well, now that I have totally confused you discussing Long Term Donor Value…. Just remember this: CTAD = the net cost to acquire a new donor.

Filed Under: Cost To Acquire Donor, CTAD, direct mail fundraising, major donor, major donor; fundraising;, major donors, major gifts, Uncategorized Tagged With: development, direct mail, fundraising, major donors, major gifts

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