Presented by Jenni McLeod Downes Murray International

1. Fundraising in a RecessionAfrica by Radio Continental ConferenceWillow Park Conference CentreBredell, Johannesburg17-19 September 2009 Presented by Jenni McLeod Downes Murray International

2. Agenda • Global perspectives in recessionary times • Where does the money come from? • Where does the money go to? • What not to do • Analyse your activities: • where can you cut costs? • Segmentation and working smart • Building and maintaining relationships

3. Global Perspectives in Recessionary Times • 1967 – 2007 in Recession Years…. • After adjusting for inflation….. • Giving fell by one percent • When a Recession lasted 8 months or longer……. • Giving fell by 2.7 percent

4. Today’s Recession…. • Has already lasted 18 months • Is Global • No end in sight So what’s the answer? How will we deal with this? Will donors continue to give?

5. Where does the money come from? • It is tempting for organisations to rely on the ‘big givers’ • Trusts • Foundations • Corporate Sector

6. Trusts and Foundations • Most of these bodies work from invested capital • Grants that have already been promised prior to the recession are almost always honoured • Looking ahead 2-3 years down the line, the effect of recession on invested capital may create a shortfall • It can be more difficult to win grants in this situation

7. The Corporate Sector • Companies exist to make a profit for their shareholders • Whilst many companies take their commitment to NPO’s seriously, when times are tough: • The bottom line is all important • Fat is cut in order to enhance the bottom line • The first thing to fall away will be donations and sponsorship that do not add to the bottom line The Corporate Sector is fickle

8. Individuals • Organisations tend to focus less on the “little givers” • Individual donors • Individual donors can be the lifeblood of an organisation • They feel the pain of recession • They understand that if times are tough for them, they will be even more tough for those in need • They are more likely to continue their support, even if it is at a slightly lower level Your committed individual donors believe in you – they are not as fickle as the Corporate Sector – IF YOU LOOK AFTER THEM!

9. Giving USA statistics 2008 Contributions: $307.65 Billion

10. Where does the money go to? What are the most ‘attractive’ or well funded causes?

11. Giving USA statistics 2008 Contributions: $307.65 Billion

12. Giving USA statistics2008 Contributions: $307.65 Billion

13. What NOT to do…. • Don’t panic • Don’t stop asking for money • Don’t stop acquiring new donors • Don’t slash donor nurturing activities • Don’t slash fundraising costs

14. Impact on Income of a One Year Lapse in Donor Acquisition

15. Think strategically • If your donor base shrinks, you will raise less money • If you slow down your fundraising, you will raise less money • The effects are cumulative • The lifeblood of the organisation drains away • Then where are you?

16. Cutting costs Creatively and Strategically • Re-evaluate where you draw the line between major donors and smaller donors • Consider out-sourcing some of your back-office operations • Perform donor acquisition with more thought • Reactivate lapsed donors • Clean your database

17. Segmentation as a Strategy • Recency • Frequency/History • Monetary Level • Source

18. A simple Segmentation Plan

19. Work SMART! • Eliminate the ‘deadwood’ from your list • This will cut your mailing quantities in the right places • Focus on the top donors • Vary the frequency and character of your contact • Don’t be afraid to pick up the phone • Tailor make appeals to different interests

20. Look after your donors properly… • Consider: • What have you done for your donors lately? • Do you actually know your donors? • How much time do your key staff or Board Members spend with your donors? • Enhance your acknowledgement procedures • Make your donors your best friends

21. Low Cost Relationship Building • Ask your Board Members to call some of your donors monthly • Get CEO or Board Members to personally sign the “thank you” letter • Phone your lapsed donors – especially the ones that gave frequently, or gave large amounts in the past • Send Birthday Cards to your donors

22. Keeping your Donors happy… • The 3 biggest drivers of donor loyalty are: • Satisfaction with the quality of service provided to them • Trust in the organisation to deliver on its promises • A genuine commitment to the cause by the individual

23. What makes a Donor stop giving? • Top 2 reasons: • A perception or knowledge of mismanaged funds • Feeling uninformed and/or unappreciated

24. In Summary • Recession has an impact on the Corporate sector very quickly • It is delayed, but real in the Trusts and Foundations Sector • Your Individual Donors will continue to support you – if you treat them in the right way • Don’t stop your donor acquisition activities – the short term ‘gain’ in cost savings is a long term disaster in revenue

25. Thank you Jenni McLeod Client Services Director Downes Murray International www.dmi.co.za