July 22, 2008
Charity Fund Raisers Should Focus on the Basics
Charities spend considerable time pursuing foundation grants and searching for non-traditional gifts through planned and corporate giving.
But Sean Stannard-Stockton, who works for an investment management company in Burlingame, Calif., says charities often ignore the low-hanging fruit — donations from individuals.
If charities can be more effective in reaching out to individuals, he argues they would probably be able to raise substantially more money with very little extra effort.
To illustrate the point, Mr. Stannard-Stockton points to a recent blog post by the marketing expert Seth Godin.
“As marketers, we’re tempted to tweak the already tweaked, to turn the 100 to 101, to optimize for the peak performances,” Mr. Godin writes. “That long tail is very long, though, and if there’s a way you can raise the floor (instead of just focusing on the ceiling) you may be surprised to discover that it can have a huge impact.”
Nonprofit groups should follow the same advice, Mr. Stannard-Stockton writes on his blog, Tactical Philanthropy.
“Frankly I think that philanthropy is such a deeply inefficient market that we can make great headway as a field by simply working on the basics,” Mr. Stannard-Stockton writes.
How can charities accomplish this goal? Are there ways to become more effective in reaching people who have money to give? Click on the comments link below this post to share your thoughts.
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Thanks for the mention Peter. Just to be clear, I was trying to say that I think that the field of philanthropy should focus on the basics, not just fundraisers. My advice was meant for donors as much as for fundraisers. Focusing on the basics is probably a good way to raise money, but it is definitely a good way for donors to do more good in the world.
Sorry I wasn’t clear in my post.
— Sean Stannard-Stockton Jul 22, 06:16 PM #
$250 Million Dollars Worth of Low Hanging Fruit –
Available at the Combined Federal Campaign (CFC) Non-profit Market every fall.
On Seth Godin’s blog, he talks about the magic of “low-hanging fruit,” namely don’t miss out on the “easy pickings” while developing your latest, complicated multi-pronged, strategy. In the non-profit sector there is a tremendous opportunity to benefit from the “low-hanging” fruit of the Combined Federal Campaign (CFC).
The CFC is the Federal government’s workplace giving program, and it is the largest and most successful workplace giving program in the world. Through the CFC, Federal public servants give more than $250 million every year to thousands of local, national and international non-profits.
CFC Benefits
The CFC is first and foremost a vehicle for non-profit fundraising, and there are many other benefits to including it as one of the tools in your non-profit’s “Toolbox.”
These benefits include:
● Generates a reliable, twelve month income stream of unrestricted revenue.
● More leverage and less risk than any other means of fund-raising.
● Leadership Development – organizing, planning, managing, etc.
● Public Speaking opportunities
● Market Research about your non-profit
● Development of multiple year income streams
● Increase of public awareness of your non-profit
Where the “low-hanging” fruit comparison comes in is that all of these benefits are generated by approximately 32% of the Federal workforce. With some attention to “basics,” and a little effort it is possible to increase this participation rate to at least 50%, if not 60%. This could double the amount raised to $500 million annually.
What basics? How about saying thank you?
The non-profit sector does a lousy job of saying “Thank you” to all the people who make the CFC successful, (and in terms of actual giving, if the CFC were a foundation, it would be the 10th largest in the USA).
There are three categories of people who deserve a “thank you” and in general, the CFC non-profits only thank one category – the identified donor.
The two other categories that deserve a thank you are the “anonymous donors” – this is a very popular feature for CFC donors, and the fundraising volunteers who plan, organize, manage and conduct the CFC campaigns each year.
And yes, in the latter two categories the non-profit will not have the list of individual names, but it still possible to thank people in the following ways:
● On your website
● In your printed material (annual reports, special event programs, newsletters (electronic or print).
● In person at special events – “Thank Yous” from the Chair of the Event.
There are many other examples of low-hanging fruit in the CFC, including the three “magic” words that triple the size of the CFC gift — if you know what they are.
Regards,
Bill Huddleston, CFC Expert
www.cfcfundraising.com
— Bill Huddleston Jul 22, 07:58 PM #
Sean:
It seems that lesson can be applied to all parts of the nonprofit world — and beyond.
— Peter Panepento Jul 23, 08:32 AM #
My experience echoes these thoughts. Some charities need to learn about the rich potential in individual giving. However, many already know but struggle to make the transition from behind-the-desk proposal writing to personal interaction and solicitation. It is a major leap in terms of comfort zone for staff and Board alike.
— Donna McGinnis at Washington University Jul 23, 06:42 PM #
Successful fundraising of major gifts from individuals requires a combination of capacity to make the gift AND the propensity for your cause. The comfort zone of staff and Board can be raised by in-depth prospect research on individuals to determine their asset base, what charities they are currently involved in both financially and voluntarily, the success of their business interests, etc. Those who attend my workshops and webinars are often amazed by the amount of public information available to fundraisers who are prospecting for major gifts from individuals. A little homework goes a long way.
— Maria Semple Jul 24, 05:23 AM #