Day: October 13, 2017

A Halloween Special - Overcoming Fundraising Fears

Halloween can be a scary time, not only for trick or treaters but also for fundraisers. By far, December is the best month for fundraising results. In fact, in a typical organization, 31% of all donations come in the month of December.

Preparing for the End-of-the-Year

However, to have a good December, non-profit organizations need to have active Septembers, Octobers and Novembers. Initially, you have to cultivate and then put a request in front of donors to receive a donation in the first place. Then it’s important to understand that it often takes time for people to make giving decisions, and the larger the decision the more time it can take.

Sure, organizations are pretty good at direct mail and special events. However, I often find that many non-profits miss out on the biggest source of potential income, and that is face-to-face solicitations of donors and friends. Simply stated, one successful major gift can exceed the proceeds from a direct mail piece or a fundraising event or both.

Face-to-Face is Still Best

For example, a study conducted by Cathlene Williams, revealed that the vast majority of nonprofit fundraising events yield $100,000 or less. After expenses, the yield is closer to $50,000 to $60,000. Yet, with a large enough database, the likelihood is high that there are several $50,000 to $100,000 donors right there and available to be cultivated and asked.

Also, according to Charity Science, the average response rate for donor renewal direct mail is about 8%, with the total giving from that source accounting for about 7.5% of the organization’s income. Likewise the ROI for fundraising events is often a lot less than anticipated.

Now I’m not suggesting that those efforts should be eliminated. They are important parts of the overall fundraising strategy, but they are not the only part. That’s where major gift, face-to-face solicitations enter the picture. While direct mail is the most expensive and least effective form of fundraising, face-to-face solicitations are the least costly and most effective form.

Why Face-to-Face?

In our research on capital campaigns we’ve found on average that face-to-face solicitations typically yield a positive response 70% of the time. Of course, well-balanced development programs include all of these methods and more. My point here is simple…when nonprofits neglect face-to-face solicitations the program is far from being balanced.

In fact, gifts are much larger in face-to-face visits than in any other form of fundraising. Well then, if 70% of the time (many of our campaigns have achieved rates in excess of 80%) a peer visits a peer in a face-to-face solicitation the answer is “yes”, why wouldn’t an organization want to do more face-to-face solicitations?

So What’s the Problem?

Well it’s time consuming and labor intensive, but mostly it’s fear. There are many fears non-profits face in asking volunteers to help them make calls. In order to get individuals comfortable in soliciting major gifts, organizations often have to work through those fears. Some of the more prominent fears include the following:

They’re afraid they’ll make mistakes and not be successful
They’re afraid the prospect will get angry
They’re afraid that the prospect will say “no”
They’re afraid they don’t have enough time
They’re afraid they will annoy friends
They’re afraid they don’t know how to fundraise or they can’t get comfortable with the idea

Actually, we’ve found all these fears among volunteers, but none of them is insurmountable. In fact, with appropriate and strategic responses and training each one of them can easily be overcome. In fact, over the next week or two we will address each and provide remedies to overcome them.

by Len Moisan

“I really support The Covenant Group’s strategic planning process because their approach encourages staff-based support with board buy-in, and I felt that was important given what we were trying to achieve. The outcome is an effective plan that builds consensus and provides a clear sense of direction.”
- Jennifer Scott, Director of Development - The Cabbage Patch Settlement House

“The Covenant Group is highly competent, very experienced and knowledgeable. They provided a broad perspective by equipping us with useful data…and best practices in the field. All in all, they are excellent.”
- Dan Jones, CEO - 21st Century Parks

“The campaign has truly been a miracle. People were committed from the beginning, but…even raising $650,000 seemed like a stretch. To nearly double that amount is incredible! When the plan they developed allows you to hit a goal like that, it builds such a sense of community. The momentum built by the campaign is spilling outside the walls of our church and benefiting others in the process.”
-Father John Hollowell - Annunciation of the Blessed Virgin Mary Catholic Church

“For those of us who don’t do this everyday, The Covenant Group instilled confidence in us. They helped us get through the fear and apprehension by providing us with a process, training and motivation. They taught us and helped us plan in a way that was for the better. We have built lasting relationships with donors and we will continue to steward these relationships long into the future.”
- Sue Finke, Director of Institutional Advancement - Covington Catholic High School

“No one anticipated we could raise this amount. Even the Archdiocese is surprised. The funds raised represent about 15 times our annual giving. But it’s not just the financial results. People stand around talking more than they did before the campaign. There is also a renewed and energized spirit among the parishioners. It’s the most exciting thing to happen in our parish in the last 100 years.”
- Gary Libs, Campaign Co-Chair - St. Mary of the Knobs Catholic Church

“The Covenant Group’s process involved a lot of people in our congregation doing small tasks … that built ownership. They took our vision and put it into a concrete plan. They helped us understand the importance of making our vision clear and laid out the steps to make the vision a reality. Their process built consensus and showed people how they could help. Their methods are based on a solid theological foundation that includes key documents, prayer support, and requisite training … all of which were invaluable.”
- Daniel Montgomery, Pastor - Sojourn Community Church

“Everything The Covenant Group did to help us…in the initial stages was helpful…the development of the case statement; our materials; the training of our Board members; strategies; all these steps laid the foundation for eventual success. They brought such a high level of professionalism, a wealth of experience and a strong track record of integrity and success… just being associated with The Covenant Group helped us.”
- Nancy Doctor, Development Director - Wellspring

“The structure The Covenant Group provided was excellent. It allowed our members to use their God-given talents to benefit the church community They helped us develop a plan and identify key leadership candidates to chair the effort, as well as engaging between 80 to 100 people to carry out the work of the campaign. It was truly a whole congregation effort and The Covenant Group helped facilitate that. They helped us reach our full potential as a congregation.”
- Ron Poisel, Pastor - Christ Lutheran Church