New Challenges for the Development Director and Fundraising Staff by hdh47907

VIEWS: 7 PAGES: 32

									 New Challenges for the
  Development Director
and Fundraising Staff in a
   Changing Economy

 Robbe Healey, MBA, NHA, ACFRE
           AFP Chair
  Trends in Fundraising
Nonprofit Leaders Containing Costs,
 Retaining Staff
• Redeploying staff & volunteers
• Consolidating operations
• Increasing communications &
  transparency
• Tap expertise of board members
• Attract & retain great people
  Trends in Fundraising
Foundations Reducing Grants
• 2/3 of Foundation expect to reduce
  number and size of grants in 2009
• Foundations are engaging in more non
  grant-making activities
• If stock market does not rebound,
  giving will be drastically reduced for
  2010
 Trends in Fundraising

Direct-Mail Donors Still Dwindling
• Direct mail revenue up
• Number of donors responding down
• Response lowers as age goes down
  Trends in Fundraising
Giving USA Reports Drop in Giving
 in 2008
• 2% drop compared to 2007
• 5.7% drop when adjusted for inflation
• Second worst year since Giving USA
  report started
• Corporate giving showed biggest drop
  of 8%
   Trends in Fundraising
Center on Philanthropy Reports PGI
• PSI = 58
  – 30% decrease from a year ago
  – Average PSI = 82
  – 86% report negative impact
• EI = 73
  – 13% decrease from year ago
  – 10% increase in last 6 months
  – 60% expect economy to negatively
    impact fundraising for 6 more months
  Trends in Fundraising
Volunteerism Changes
• 72% have cut back on volunteering
• 66% believe others are focusing inward
  and not helping out
• 50% have given $ or food to others in
  need
• 43% of young people are volunteering
• People who are religious are more
  inclined to volunteer in this economy
What is it like out there?

2009 State of Fundraising
         Report
       2008 Survey

• Respondents asked to compare
  2008 results to 2007 results
• Survey sent to random sample of
  3,000 members
• 10% response rate
      Overall Results

• Prior year’s result for comparison
  – 65% raised more money in 2007
    than 2006
  – 11% raised the same amount
  – 24% raised less
  – 73% reached their fundraising goal
      Overall Results

• Current year’s result
  – 46% raised more money in 2008
    than 2007
  – 14% raised the same amount
  – 40% raised less
  – 60% reached their fundraising goal
AFP Holiday Giving Survey
• 53% of charities raised less during
  2008 holiday giving season
• 23% were raising more –
  compared to 48% a year ago
• 48% receive 31% - 60% of their
  annual contributions in December
• 18% receive more than 60%
       Perspectives
• Previous worst-performing year
  – 2002
  – 49% raised more money
• Highest-performing year
  – 2006
  – 69% raised more money
• Typical year:
  – 60% raise more money
       Perspectives
• No clear trends seen across
  respondent organizations based
  on
  – Sector
  – Size
  – Geography
• Smaller organizations fared about
  the same as larger organizations
    Fundraising Methods
Type of             Raised More   Raised More
Fundraising         2007          2008

Major Gifts - 82%       63.1%        43%
Online - 64%            61.4%        53%
Corp/Found              60.4%        41%
Special Events - 78%    56.8%        43%
Planned Giving - 60%    53.5%        33%
Direct Mail - 85%       51.1%        28%
Telefundraising - 31%   46.0%        31%
      2009 Focus Areas
Type of           % of Respondents
Fundraising       Increasing Efforts in 2009

Major Gifts                 76%
Online                      73%
Planned Giving              71%
Corp./Found.                63%
Direct Mail                 29%
Telefundraising             28%
Special Events              24%
    Optimism for 2009
How will your
                       Percentage of
fundraising fare in
                       Respondents
2009?
My organization will
raise more funds in        28%
2008
About the same
                           38%

My organization will
raise less funds in        34%
2008
Biggest Challenges in 2009
• 79% ranked economy as one of
  the top 4 challenges
• 57% ranked it as #1
• Other challenges
  – Attracting new donors – 48%
  – Reductions in corporate support &
    sponsorship – 30%
  – Staffing issues in the development
    office – 28%
 Impact of the Economy
• Weaker economy = Low confidence
• Volatile market = Giving decisions
  postponed
• Everyone is cutting spending
• Gifts are taking much longer to
  close
 What AFP is doing to help


• Survival Kit for
  Fundraising in
  a Bad Economy
     Ideas for Surviving
   Tough Economic Times
• Attitude is everything!
  – Work from a believe in abundance; don’t
    surrender to scarcity
• Stand out: Make your case
• Increase the time you spend with
  donors
• Keep telling your story
      Ideas for Surviving
    Tough Economic Times
•   Research your prospects
•   Spend time friend-raising
•   Ask!
•   Adjust gift amounts
•   Explore alternative forms of giving
  Ideas for Surviving
Tough Economic Times
• Stewardship is key!
• Make no assumptions
• Re-examine current fundraising
  strategies
• Keep working harder & harder
• AFP Survival Kit
What else AFP is doing to help
    •   www.afpnet.org
    •   eWire & eWire Skill Builder
    •   Advancing Philanthropy
    •   Resource Center
    •   Ready Reference Series
    •   Kaleidoscope
    •   Public advocacy
Changing Attitudes About
     Philanthropy
 •   Living a philanthropic life
 •   Making a difference
 •   Time to consider their giving
 •   Connecting to organizations
     in new ways
The Power of Community
  • Community is important
  • AFP is YOUR community
    – Your chapter
    – Your world-wide colleagues
    – Your association
       What YOU can do!
• Work to make your chapter
  – The place for professional development &
    networking for fundraisers
  – The place for information about ethical
    fundraising & philanthropy
  – The place for professional and personal
    support
    • Sharing your challenges
    • Support if jobs are lost
    • Connections to new jobs
   What YOU can do!
• Use your AFP resources
  – AFP Code of Ethics & Donor Bill of
    Rights
  – Advancing Philanthropy & eWire
  – National Philanthropy Day®
  – Website: www.afpnet.org
  – Discussion groups
  – Resource Center
  – Ethics committee
  – Job postings
        What YOU can do!
• Send the message
  – AFP is the ethical standard bearer for the
    charitable sector
  – Philanthropy and fundraising must be
    preserved for civic betterment
  – What your organizations do for your
    communities & what would be lost if they
    don’t survive
  – AFP members know how to weather this
    economic climate
    Seven Strategies You Can
           Use Today
•   Donor retention and stewardship
•   Focus on board & volunteer development
•   Segment, personalize & mind the details
•   Consider risk-taking
•   Collaborate with other organizations
•   Thank your donors
•   Stay positive
       Seven Reasons to be
        Optimistic in 2009
•   Opportunities exist even in dark times
•   New national leadership
•   Nonprofits are news
•   Generosity is in/flaunting wealth is out
•   People thinking more of helping others
•   World of new fundraising tools
•   Fundraising is a growth profession
       Thank you!
• For being a part of AFP
• For your commitment to ethical
  fundraising
• For being a member of the
  fundraising profession

								
To top