Raising Money In Tough Times

by Laura Huth, President & CEO, do good Consulting

There’s no doubt – the economy is in a rut. Many are struggling with health care woes, lay-offs, and making ends meet.

When it comes to keeping your nonprofit running in lean times, each day’s headlines can leave you scratching your head and worrying about your organization’s bottom line.

Despite a recession upon us, fundraising is still a necessity, as the need for services that nonprofits offer has never been greater.

But with people cutting back, what’s the right strategy? Here are some tips to help your organization through these tough times, and some glimmers of hope to keep you focused and thinking long-term.

My first piece of advice is to stay positive. While the going may be tough, the tough must still get going. Now is NOT the time suspend asking for money. You probably have more people than ever to serve, and while some of your donors may not be able to help you this year, many still can, even if it means smaller gifts. It’s better to get part way to your fundraising goal, than to fail to ask and to raise nothing at all, right?

While you are focusing on meeting your short-term fundraising goals, don’t forget to keep the long-view in mind. We will snap out of this economic slump, and when we do, you will need to be prepared. So be sure you balance your time and resources to both meeting immediate needs, but also those needs that will come up when things normalize economy-wise. Otherwise, you’ll be dealing with another set of problems down the road.

Here are some recent news items to give you some glimmers of hope:

• Three recent studies show that while most types of contributions slow in tough economic times, giving through charitable bequests usually grows during a recession. One study found that people who didn’t have children or grandchildren were the most likely to make charitable bequests. But without putting in the work to generate planned gifts, 90% of donor mortality will simply result in lost current giving. More information on these studies can be found here.
• Another recent study shows that higher-income women are the main drivers of philanthropy in their households. Says Sarah Libbey, president of the Fidelity Charitable Gift Fund which ran the study, “The overarching theme is that women are more and more in the driver’s seat of [charitable] decisions” and furthermore, are “more likely to explore more sophisticated giving strategies.” More information on this study can be found here.
• The 2009 eNonprofit Benchmarks Study found that some online fundraising grew by 26% in 2008 over 2007. The study also showed, however, that the average online gift size decreased 21% to $71, down $15 from the previous year. The study also showed that email lists continue to grow, though more slowly each year. More information on this study is at www.e-benchmarksstudy.com.

While these studies may not offer a panacea of solutions to your fundraising needs right now, they do show that not all hope is lost.

Finally, some closing thoughts. As online giving, Facebook, and other social networking heats up, now is the time to be sure your website is in tip-top shape. In this era, you simply cannot afford to have a less-than-dazzling website. Your site should be completely updated, engaging, easy-to-use, and ready to take online gifts. And if you do not yet have an e-newsletter, now is the time to make a small investment in this important communication tool.

Finally, communicating with supporters during tough times – without asking for money – is critically important to ensuring they’ll be back when the recession is over. You should still be asking your donors for support, but that’s not all you should be doing. Pick up the phone or shoot them one-on-one emails and just talk to them (and thank them for their last gift). They’ll be glad to hear from you.

It's important to remember during tough times the reason your nonprofit exists. Sometimes it’s easy to lose focus when things get bad, but when they do, our work is more important than ever. Whether you work on housing issues, feeding the hungry, providing health care to those in need, offer educational or support services to children or adults, or supply our community with great arts programming, your work is needed more than ever. Stay the course, be strong, and remain positive. You will it make it through this!

Did you know that do good’s consultant’s are experts at helping nonprofit organizations raise money? Recession or not, we can help you. Contact do good Consulting at dogood@dogoodconsulting.org or 217-778-1687.

Nonprofits A Part of Business Community

On April 19, 2009, the Champaign-based News-Gazette wrote an editorial entitled, "Hard-hearted 'no' a tough sell for council" urging the Champaign City Council not to reinstitute the social service grants they formally distributed to local social services agencies. do good Consulting's President & CEO, Laura Huth, took issue with the editorial and submitted a guest commentary outlining the many ways that nonprofit organizations contribute to local and state economies. Read the News-Gazette editorial here and Laura's guest commentary here.

Q&A: Is Facebook a Fundraising Panacea?

Dear do good:
We have a new Development Director who insists that Facebook is the new wave of fundraising. She wants us to scale our direct mail and print newsletters way back and focus nearly all our energies on what she calls “the Causes revolution”—using Facebook’s “Causes” application to solicit and process all of our online giving. I am unsure that this is a good strategy—I know a lot of groups are using social media, but I feel it might not reach all our constituents. Is “Causes” truly the next wave of fundraising?
- Causes Trouble in Champaign

Dear Trouble:
Facebook has created a huge buzz in the last few years for its potential to help charities fundraise for virtually no investment. Set up a free account, sign up for the “Causes” application, spend an hour writing your initial content, and then maybe 10 minutes a week, and voila! you’ve got a nearly zero-cost way to bring in dollars. How can you lose?

Well, you can’t. But you also can’t expect online donations to start rolling in, either. In recent months, the “Causes” application’s worth has become an unlikely source of contention. A recent study published by the Washington Post found that of 179,000 groups with active Facebook “Causes” accounts, fewer than 50 raised even $10,000.

But wait! Before you deactivate your social media accounts, take a minute to shift your thinking. We’ve learned how to “friendraise” through traditional methods—events, stewardship, volunteerism, etc. Think of Facebook, then, as the new, bigger, faster, and cheaper way to friendraise. Think about it: there’s a reason our social connections on Facebook are called “friends.” Millions of people have built personalized, virtual networks of folks they are interested in keeping up with—whether or not they’re really buddies in the traditional sense. And when one of them singles out your cause, hundreds of their friends see that. Properly used, this is an incredibly powerful messaging tool that is simultaneously manageable, controllable, and engaging.

More than ever, people are demanding that organizations have a Facebook account, or use social media of some form, even if they never give that way. So listen to your donors: nearly half of them want to track your activity through social media, and most of those are under 25. They might not be giving a lot today, but if you build a comfortable relationship with them now they’ll remember you in 10 years.

The tools we use for fundraising may be rapidly changing, and it is definitely important to stay on top of new trends in philanthropy. But the one law that will remain constant is this: people give to people, and people are motivated by people. Use your social media to swell the ranks of your organization’s friends, disseminate information, and solidify your brand. Even if your “causes” application never brings in a single online gift, you’ll be supported in countless other ways.

by Cheryl Middaugh, Organizational Development Specialist, do good Consulting

If you have a question for do good, or need more fundraising tips and advice, contact our experts at 217-778-1687 or dogood@dogoodconsulting.org.

SAVE THE DATE: Wednesday, July 15

This July, do good Consulting turns three! In that time, we have helped dozens of organizations across Illinois and throughout Champaign-Urbana raise money to support their missions, develop strategic plans to guide their work, and a whole lot more.

To celebrate, we are treating you -- the public, our clients, volunteers, kids -- everyone! On Wednesday, July 15 from 11AM to 2PM, we will be giving away FREE ICE CREAM from the regionally famous Sidney Dairy Bar (for those who have not seen the Moo-Mobile, this is not to be missed). We will also have a massage therapist to giving FREE BACK RUBS. The festivities will take place at the do good Consulting office in downtown Urbana (201 West Green, on the southwest corner of Race and Green).

So mark your calendars now for July 15: rain or shine, we're giving away FREE ICE CREAM until we run out! See you there!

Group Profile: Barrel of Monkeys

by Jessica Paulsen, do good Consulting

Some actors completely immerse themselves in a role. Barrel of Monkeys teaching artists are no exception. The educational theatre company visits schools across Chicago, becoming part of the community to encourage their students and bring joy and energy into the classroom. Student authors learn about creative writing and develop stories later brought to life by adult actors in the company. But the group’s mission goes deeper than creating and showcasing the work of students.

“The more that you can share the creativity of Chicago’s children, the more you bridge the gap between the communities our students are in and the communities our audience is in,” says Barrel of Monkeys Executive Director Heidi Thompson Saunders.

Barrel of Monkeys works primarily with schools on the West and South sides of Chicago, where more students are low-income and have limited, if any, access to arts programming in school. Each school year, nearly 900 students participate in one of the two school-based programs run by the company’s teaching artists. At the end of the nine-week programs, most students would like Barrel of Monkeys to return to their classroom and about 80% say they like writing more.

Among the dozens of student-generated stories developed throughout the year in these programs, a handful are chosen from each school and performed for teachers, students, families, and the public at the annual Celebration of Authors. The audience’s favorites make their way into That’s Weird, Grandma, the company’s weekly show.

That’s Weird, Grandma has been in open run at the Neo-Futurarium (5153 N. Ashland) in Chicago’s Andersonville neighborhood since 2001. The family-friendly show, which runs each Sunday at 2PM, changes each week as the audience votes on their favorite pieces. Most stories rotate in and out, but some audience favorites stick around. The Dog Was Dead has run in the show for three years and even been adapted into a podcast. Check out dozens of student stories created through Barrel of Monkey’s education programs, including The Dog Was Dead, at www.barrelofmonkeys.org/stories.

Want more Barrel of Monkeys? Check them out here: Celebration of Authors, June 9 at 7PM, Athenaeum Theatre, 2936 N. Southport, Chicago or That’s Weird, Grandma, every Sunday at 2 PM, Neo-Futurarium, 5153 N. Ashland, Chicago. More information and tickets at www.barrelofmonkeys.org.