Do you have any insight/ideas on a process for a well-respected agency in Newark that has no donor “lists” or database….when they have asked me to help in major gifts and individual donorship….I have come in as a consultant to this agency that has about 95% government support….and are losing $500,000 in the next two months alone….with more to come! Any ideas?
RESPONSE
I think it’s important to help them understand that there are two issues they are facing – their immediate monetary shortfall and their need for a long-term fundraising plan – and that both require separate approaches and will have their own challenges.
Diversifying Your Funding Sources
Transitioning from government contracts to other funding sources is a large issue, not a quick fix and requires an organizational willingness and support from leadership (staff and the board) as well as time and diligence.
Starting with a strategic plan would be a good first step. Asking where they see themselves in 3, 5 and 10 years and what types of funding sources would be appropriate for them (foundation grants, corporate sponsorships, individual donors, larger donors, events, earned income, etc.). The responses will help dictate the strategy. The next question is whether the organization willing to invest in the infrastructure needed to support the effort.
There is a mixed feeling about the how to diversity funding sources. I saw a recent online poll that asked nonprofits whether it was easier to raise money from individual giving or through grants, and most said grants, since cultivating donors is arduous and can be the reliability can be fickle. So I am not sure if your organization’s desire to attract individual donors was thought through or gut instinct.
Attracting Individual Donors
If they are committed to attracting individual donors, they would need to determine how to effectively tell their story in a way that appeals to donors. What problem is the organization addressing, how is it uniquely qualified to address the issue and what results is it getting (as well as its core values and philosophy).
The next step is in determining the type of people to whom that message would resonate, and perhaps creating several sample “Donor Profiles” that describe those donors’ demographics, interests, values and motivations.
The third step is in understanding how to engage those people at a level they are interested in and formulating a strategy around that. The Donor Profiles will help determine the strategy. For example, younger people might be more interested in results and taking some action on behalf of the organization, while a donor that values tradition would be more interested in the organization’s role in the community. If you need help with this, that is what I do.
Addressing Short-term Funding Needs
Fundraising Events
This all takes time and will not come quickly or easily. For a short-term solution, you may want to think about a fundraising event. While many events have taken hits in recent years, many are successful. You might want to speak with an event planner that specializes in fundraising events to help determine if this might be right for your organization and to then help plan and promote the event. And of course, this takes time as well, but can potentially have a payoff in 9 – 18 months.
Social Media Strategy
As for a low-cost strategy that you can implement right away, I would recommend a social media strategy. Having an expert help to set up a Facebook Fan Page for the organization and engage people online is the quickest way to get some results. It’s not likely you’ll be bringing in the big bucks quickly, but you can start to nurture a donor base and get some contributions. Social media is also a great way to engage people, poll them to find out what they are thinking and about ideas and initiatives they will support as a way of testing the waters.
Online Donations
Speaking of which, does you website have a Donate button to accept online donations? If not, that would something to do quickly.
Public Relations Campaign
Since you say the organization is well-respected, you may want to consider a public relations campaign that helps to spread the word about the good work your organization does in the community. Preparing story ideas and reaching out to editors to invite them to cover your organization can result in newspaper, TV or web coverage that helps to build awareness and attract donors. Over time, a collection of press clippings, can lend credibility and help tell your story to editors.
Videos
Another quick way to get your message out would be to create a video that showcases the organization’s good work, augmented with information about its impact in the community. Often these have testimonials from donors that help new donors see what others find worthwhile about the organization.
Howard Adam Levy, is Principal of Red Rooster Group, a New York based graphic design firm that creates effective brands, websites and marketing campaigns for nonprofits to increase their visibility, fundraising and communications effectiveness. Contact us at info@redroostergroup.com.
Thank you so much Howard for your descriptive response…..I have my work cut out for me on this one !!!! Hope to meet you sometime as I continue to “Meet” per se great colleagues like yourself.