Fundraising in hard times

As bad as this economic downturn has been for us all, chairites who survive will have learned lessons that will prove invaluable later, whether times are good or times are bad. Here are some tips I have collected over the past few years.

I’d be interested in hearing your experiences.

Which ones have you tried?

Can you add to the list?

1. Don't become or sound desperate.Instead, emphasise to your donors that every year, good or bad, your needs continue. Don't talk about grand plans for expansion, but do talk about solid plans for today. Don't lose your enthusiasm and optimism about your cause. Donors will notice and pull back if they think that you, the fundraiser, have doubts.
2. Prove that you are responsible. Let your donors know that you are doing your part by being financially responsible. Cut costs where you can, make sure you have good controls in place, and that you are examining marginal programs. Keep your money safe and avoid risky investments. Don’t do an Iceland!
3. Don't give up on your corporate and cause-marketing activities. Gifts may decrease, but keep your corporate contacts strong. It is very hard to get back on the corporate charitable list if you are dropped. Avoid this by staying visible, and keep cultivating your contacts within the company. Likewise, don't give up on cause-related marketing. Companies are finding that these activities pay off for them with consumer loyalty. Remember too that just because a company's stock price has been depressed doesn't mean that it is not a strong company. Look at the balance sheet to identify companies that are in a good position, and that will likely come back strong from the economic meltdown.
4. Diversify your funding sources by identifying all types of financial support. Avoid depending on one or two major donors or trusts. Most charitable giving is made up of small donations. If you are not doing direct mail to a large base of supporters, start working toward doing so. Use the Internet to reach more people. The cost is low so that donations can be smaller. Those add up quickly. Explore payment options with low transaction costs and online donation sites.
5. Put your fundraising programs under the microscope. Determine which fundraising programs work best and are the most efficient in terms of resources. Then cut the least efficient ones and shift those resources to the ones that are doing the most good. Maybe that big special event eats up precious time and resources for very little return. Or the promotion you started last year just doesn't seem worth the time and effort. But, don't let the money and volunteer time you use in those efforts just dissipate. Put them to use by expanding the annual campaign or making more major donor calls or doing another planned giving seminar.
6. Don't pull the plug on major campaigns, but do slow down. If you were starting a capital campaign when the economic crisis hit, don't stop. But do slow down. Recognise that getting those lead gifts in the size you want will take longer and be dependent on how the economy is doing. If you ask for a multi-year gift, and the donor resists, fall back to asking for part of that gift now, and plan to go back later for the rest. Donors are understandably shy about making long-term commitments in this economic environment.
7. Keep up your marketing and PR. Building buzz about your good work will help you with your donors. The more they know and see your name about, the more likely they are to contribute to your cause. Got PR professionals on your board or committees? Seek their advice before you launch anything big. Let them organize a PR/Marketing Committee that might bring in other professionals to help. See if their firms can do pro bono work or work at a discount. This kind of help is really priceless.

Finding Your Perfect Customer

Nearly every book on marketing will remind you that you need to identify your target market and offer something that meets their needs. But what if when you do this you identify a group of people or a product or service which leaves you cold?

Working with your perfect customer and the services and products you offer should really excite you. If it doesn't, it's bound to have a knock-on effect on the perception of customer service and certainly impact your bottom line. But if it doesn't excite you why would you want to be doing it anyway?

So in an ideal world you want to be dealing with people with whom you share interests, values or enthusiasm. So how do we find the ideal customers?

Start by listing what you enjoy, what's important to you. Can these be incorporated into your business? If your business reflects your interests the likelihood is you’ll attract other people who share them. You're more likely to be able to build rapport with them, and you can be more targeted (and successful) with your marketing, both externally and on-site.

Create your values around what is important to you. If it's important to you to use sustainable resources, or care for the environment create your values around these principles.

Your core beliefs should really influence what you offer; whether you focus on just one of those beliefs or a number, it's a combination of these that add up to make business different.

One way of really capitalising on your interests and capture the interest of your customers is to become an expert in something that they and you are interested in. In addition to attracting the type of customers with whom you can build a good rapport and a better prospect of repeat business, it also gives you a great opportunity to get noticed. By writing articles, blog posts, guidebooks or maybe even organising clubs or seminars around your interests or topic, you'll be on the radar of people who share your interests, which in turn enables you to build your prospect list. It also provides a great opportunity for PR.

Any of these ways of tying in your interests into your business not only enables you to enjoy what you do and who you work with, but is a great way of being unique and really standing out from your competition. If you have a very niche interest it will translate into a very niche target market!

Jeff Bucchino, "The Wizard of Draws"