Fundraising and the Recession

There’s no denying that the economic climate has made fundraising difficult – and this appears to have been due to a number of factors.  Some organisations have found their earned income has declined dramatically and are trying to fill the gap with fundraising; others have found that, as more organisations start to fundraise, competition for funds has increased; and of course, many of the donors and sponsors have either reduced or stopped providing funding. 

I’m interested to find out how the recession has impacted on organisations – so please complete our short fundraising survey.  Not only will this help us to determine what information organisations need to help their fundraising but everyone who takes part will receive a summary report on the results, helping them to adapt their fundraising ideas and needs according to the current market.  And there’s also a chance to win a free fundraising audit for your organisation – it’s a win win situation!  Please take 5 minutes to complete the survey.

Payroll Giving Hit by Recession

Following on my recessionary theme this week – for which I apologise – I noticed this article regarding the reduction in payroll giving since 2007.  While not a major source of income – around 4% of earners give to charity through direct contributions from their salary – it does demonstrate another area where belts are being tightened and charities are seeing their funding reduce from this particular income source.  Payroll giving has always been a tax effective way of giving to charity – as the contributions come off before income is taxed thereby reducing the amount of tax paid by the donor – and I would encourage donors to consider it where they want to give regular amounts to charity each month.

With regard to the recent decline, while of concern, it has to be considered positive that donors have chosen to reduce the amount they give to charity through direct salary contributions rather than completely cut their contributions altogether.  It shows that people are still keen to support charities close to their hearts and hopefully, will mean that, when times are better, their contributions increase once again.

I’m particularly interested in fundraising and the recession so if you’ve noticed any change to your income – or even if you haven’t, please complete our short survey for the chance to win a free audit of your fundraising for your organisation, which could help you get back on track; identify your strengths and weaknesses; or change your fundraising priorities for the future.

Love Thy Donor

by Flickr user Diluvi

Love is probably a bit strong but you should certainly make an effort to get to know your donors as the power of a good donor relationship can’t be underestimated.

I recently read an interesting article about Harvard University on SOFII (Showcase of Fundraising Innovation & Inspiration) which highlighted this very fact.  Having visited Boston a few years ago – and of course, taken in the famous Harvard and MIT campuses, I was interested to read how the former was such a shining (and old) example of major donor fundraising working well.  It turns out that Harvard would not be called Harvard were it not for the generous legacy left to it by John Harvard.  Why did he leave money to Harvard (which was called something else at the time, of course)?  Well, it was probably down to the fact that he’d gone to university in England with the school’s first master, had remained friends with him and understood his vision for bringing higher education to the New World.

Organisations often find that they are so busy chasing the gift, getting the gift and stewarding the gift that they forget to focus on what is really most important about the gift – the donor.  Don’t lose sight of who it is that is giving you money, how they like to be communicated with and what motivates them to give.  Of course, you can’t be expected to know all of your donors personally, particularly if you raise money from large numbers of people, but you should know what communication works best for which donors.  And don’t forget it.  This is where the power of accurate record keeping, including investing in and using databases, can’t be underestimated.  But that’s for another post…

What’s the Future for Arts Funding?

As you know, as well as fundraising for a range of different causes, I have done a great deal of work (and continue to do so) with arts organisations.  Now is a particularly worrying time with government cuts ranging from 4% here in Scotland to a staggering 30% in England. 

I recently wrote a guest post for Arts Professional and am interested to hear how others, particularly those working in the arts, think their fundraising will be affected by the cuts.  I’m also keen to know how (or if) organisations intend to adapt their fundraising efforts in the future taking into account the increased pressure to diversify income.

Please let me know what you think by commenting on the Arts Professional blog – I’m interested to see what the main concerns are and will be blogging in the future – both here and on Arts Professional – about possible ways to improve fundraising efforts and increase income.

Tweet, Blog or ‘Like’ your Fundraising?

fundraising ideas, fundraising consultancy

Image by Flickr user gaku

Do you use technology in your fundraising?  Or do you tend to stick with the tried and tested methods you’ve used for years?  I’m not suggesting that there’s a right answer to either of those questions – and there’s definitely not a ‘one size fits all’ approach. 

Some charities will find that sticking to direct mail, for example, is the best approach for them and continues to deliver the best results.  However, others may find that by using new technology to reach audiences, they are able to find new donors and enhance the work they do.

Fundraising Coach, Marc A. Pitman is based in the US and recently highlighted the use of QR codes in fundraising.  This fascinating (and relatively simple) technology can be used to direct donors to specific web pages, provide direct links to event booking sites, link potential donors to audio and video clips – and a whole range of other uses that could enhance your donor communications – Marc even demonstrates how to do this on his site.

Of course, the  audiences you are trying to reach do need to be familiar with the technology (otherwise, it’s just a squiggle in the corner of a poster!) but I’ve no doubt that, as this technology grows, it will be picked up and used more and more.  Four weeks ago, I’d never even heard of it and now I’ve read numerous articles about how it is being used in both the US and the UK.  Oxfam have recently started using QR codes to link to audio clips of the previous owners of items in their shops telling the story of their donated items.

Another new innovation enhancing the power of the web is crowdfunding – or crowdsourcing, which is effectively, using people to get things done.  Charites, arts and social enterprises could harness the power of the virtual crowd to fund their programmes, provide their set up costs or fund specific projects, as Suzy Rigg’s recent post on ACEInspire’s blog demonstrates.

But what about your organisation?  Do you blog, tweet or ask people to ‘Like’ you on Facebook?  Or are you going down the route of QR codes and crowdfunding to reach new audiences and encourage new routes to giving?    

Is Your Board On Board?

So you’ve decided to fundraise but the Board still aren’t convinced that it’s worth it?  How do you get them behind you? 

Fundraising is a long game.  There aren’t any quick wins but often it’s seen as the way to earn a fast buck.  It isn’t and you need to spell this out to your board.  Fundraising is about relationship building and that doesn’t happen overnight.  Often a board member – or other staff in your organisation – will see you working for months for very little return.  What they don’t see is that with every event, every meeting, every phone call, you’re building relationships and networks, getting your organisation’s name out there and helping to make people understand your organisation when there may have been no awareness before. 

It’s difficult to quantify this and, as a result, board members often feel that it’s not worth the effort.  But you have to speculate to accumulate for most things and fundraising is no different. 

You can’t expect it to be cost free either.  Now I’m not suggesting that you break the bank to try to raise your target but you will need to make some investment in fundraising, even if it’s only the cost of the time of the person doing the fundraising whether that’s an employee, a freelance fundraiser or a fundraising consultancy

If you are having trouble convincing your board, set out clear objectives (preferably SMART – specific, measurable, achievable, realistic and time bound) which they can see you making tangible progress against.  You should factor in: 

  • How much you need and what it will fund
  • How you will raise the money e.g from trusts, companies, individuals – and how you are going to do this e.g. direct mail,
  • The timeframe you hope to do this in,
  • How many people you expect to meet,
  • How many approaches you intend to make,
  • How many proposals you will submit and so on – and you can’t expect all of them to pay off.  You may need to make approaches to twice as many prospects as those who finally end up becoming donors – and this is a conservative estimate.  It could be many more. 

 However, once you’ve started to grow your fundraising, you will have a base of donors who will not only convince others that you are a worthy cause simply by their association, but who will introduce you to their peers, lend their weight to appeals and, ultimately, continue to support your organisation over the years, provided you continue to deliver the goods and look after your donors.

Are you having difficulty convincing others in your organisation that fundraising is a worthwhile investment?  Or have you managed to overcome their concerns?

Fundraising – where do I start?

For many organisations, fundraising is an area that they’ve either never exploited or only dabbled in but, particularly with the current squeeze on resources due to the recession, senior managers and trustees are starting to recognise the need to increase their funding from different areas.  However, a mistake that’s often made is simply to look at the shortfall in your income and assume that it can be filled by fundraising.  Sometimes it can but often, you need to think more creatively about your approach. 

Operational or core costs are difficult to raise through fundraising and sponsorship (although not impossible) so how can you incorporate them into an interesting, value adding project?  Or can you divert some project funds into core and raise funds for some of your activity instead?  You may suddenly need to find a £10,000 shortfall but you can’t assume that you can automatically change one type of funding for another. 

  • Look at all your programmes. 
  • Is there something in there that may appeal more to a donor? 
  • Is there an aspect of work that is entrepreneurial, will increase capacity for your organisation or help you to reach more people or meet a problem in a different way?

Perhaps it’s these areas that you should try to find funding for.  

What have you found to be effective when planning your fundraising?

Different sector experience can help fundraisers see the bigger picture

I often find that there is an assumption that if you’ve worked in one sector, the skills are not transferable to another – and this isn’t necessarily the case.  The principles of major gift, individual or trust fundraising are the same in an environmental charity as they are in an arts organisation.  The organisational structure may be different, the projects will vary and the donors may be different (although not necessarily) but the methods employed to encourage donations tend to be the same. 

You still need to be clear about what you want funding for, how much you need and what it will be used for.  You will need to make a robust case for support that captures the imagination of donors, demonstrates why you are the best organisation to deliver your particular project and helps your project stand out from the rest of the applications. 

Often, it helps if someone does come in from another sector, casting a fresh eye on your approach to fundraising (or marketing or governance) bringing with them new ideas that are equally applicable to your organisation and sector as they have been to another but perhaps have never been tried in your sector before. 

I worked with a marketing consultant on a fundraising and marketing strategy for an arts client.  The marketing consultant had never worked with a not-for-profit or in the arts before so the client initially started out with concerns that he would not be able to understand their marketing needs. However, the result was a marketing strategy that got them thinking differently, encouraged their creativity and saw them employing new ideas to engage with audiences. 

At the end of the day, employing a fundraiser or bringing in a consultant is the decision of the organisation but don’t narrow your field of choices simply because they haven’t gained their experience in your particular field.  Chances are if they’ve been successful in one sector, they’re likely to be successful in yours.

Fundraising as a Career

Out of all the careers you could choose, why would you choose fundraising?  The hours can be long; donors can be demanding; targets can be tough to reach; and potential donors can often say no.

On the other hand, you will have the opportunity to work with people from across your organisation to develop and deliver projects; you can use your creativity to solve problems, craft proposals and ‘make the ask’; you will gain a vast amount of skills – from event management to proposal writing, negotiating to data management – and everything in between.  No two days are ever the same and you have the chance to meet some truly fascinating people – from those who work in different areas of your particular organisation, to your volunteers and donors who come from a range of backgrounds and experiences.

I originally set out to work in arts administration (after finally admitting to myself that I was never going to be an actress!).  My first ever experience of fundraising was being asked to write an application to the Esmée Fairbairn Foundation (or Charitable Trust as it was then) to help the touring theatre company I worked for equip their new accommodation.  It was 1994 and when they sent the cheque for £12,000 it was my first taste of fundraising success! 

I then had various arts administration jobs, where I also dealt with trust applications and sponsorship alongside everything else.  It wasn’t until 1996, when I landed a job in a post-1992 university Development Office, that fundraising became the main element of my work. 

It was a very different landscape to now.  While most of the older, more established universities had been fundraising for some time, the post ‘92’s were playing catch up.  And internally, we were very much seen as a novelty by many of our academic colleagues.  One of the offices I worked in was funded by top slicing all of the departmental budgets to be able to afford to set up our department.  Needless to say, we  had to work hard to get our colleagues on board and it wouldn’t be a lie to say that was a difficult task – although we did achieve it in the end (due in no small part to raising our campaign target two years ahead of schedule). 

Fast forward 14 years and it’s a very different situation with universities young and old having Development Offices focused on proactively engaging with a range of high net worth individuals, trusts and the corporate sector. 

On a personal level, I’ve moved from fundraising being one of a number of tasks, to it being the main focus of my career, as I now work as a fundraising consultant.  But I’m glad that I made the move into fundraising and that I followed my particular career path.  Working a variety of organisations, large and small, has meant that I understand where many clients, particularly those without fundraising staff, are coming from and how best they can resource their fundraising to sustain their future income generation.

Do you think you would like to become a fundraiser?  What’s stopping you?  Or have you been a fundraiser and decided to move into a different field?  If so, how has your experience helped you to do that?

Think Big, Be Ambitious with your fundraising

The best fundraising projects are often those that are viewed as the most challenging.  Perhaps they have an ambitious target or maybe they’re complicated in terms of delivery or diversity?  Whatever the reasons, I’ve found that it is usually the most ambitious projects that are the best – and most successful – to fundraise for. 

Often, people are scared to be too ambitious when developing their projects, worrying that they won’t be able to raise the income target, so they scale it down to the point where it has a small reach, no future sustainability and is unlikely to make much impact.  Rather than making it easier to fundraise for, by reducing the scope and scale of a project you can hamstring your fundraising efforts. 

The project that started off as a request for a new museum grade bookcase to house manuscripts had limited donor appeal but, by working with the archivist, we developed the project into an exhibition.  It was five times more expensive but had a far broader reach in terms of visitors, especially as it included a spin off education pack and a dedicated website, as well as an interactive exhibition.  This more ambitious and more costly project was far easier to fundraise for as donors could clearly see the benefits of bringing the exhibition to a broader audience, as opposed to simply storing the books and manuscripts more effectively.

Similarly, there was the exhibition sponsorship deal that included: a complementary fashion exhibition, a demonstration of ancient tapestry techniques and grand opening featuring Jodie Marsh, designer Scott Henshall and a few hundred thousand pounds worth of diamonds.  All of these aspects were added by the sponsor and, while they meant extra work to deliver the sponsorship, the added value led to a higher cash contribution by the sponsor, excellent press coverage and box office breaking attendance figures. 

I’m not suggesting that you run wild with your fundraising and grow your projects so large that you are unable to manage or sustain them but try taking an entrepreneurial approach – think more creatively and look at the many different aspects of your project and what they could bring in terms of new audiences, potential funding and new partnerships.  Doing this can help increase your appeal to donors and ultimately, raise the income you need to be successful.

If you need more advice on fundraising, please get in touch for an informal discussion.  Download my Top 10 Fundraising Tips to help kick start your fundraising.