One of the most important fundraising principles is that you should develop multiple sources of contributions. Many charities are now finding that without multiple sources they are faced with financial collapse. Especially in difficult times, most donors aren’t willing to take on new large philanthropic commitments.
So how do you go about finding and using these multiple sources of funding? Some basic tips:
- Avoid fundraising cuts - Edith Falk, a fundraising consultant says, “cutting your development program is a really bad idea. You are putting yourself behind by another six months to a year after the economy improves and you start restaffing your development program.” If there suddenly is a drop in communication, many donors can be lost. Remember, giving is so much centered on the relationship that it is crucial to maintain contact. Determine what are the most important areas of your fundraising and especially strengthen those.
- Keep top donors close – Once again, communication makes the difference. It is a type of stewardship in essence.
- Tell a good story – What makes your group resilient even in these tough times? What will make people care? Why do you value your work so much? The power of a story goes beyond the difficult times. A smile, a bit of hope makes a big difference.
- Don’t ignore people who have stopped giving – Look at our past blog posts on recovery letters for lapsed donors. Tony Cappelli, a co-founder of Steven’s Hope for Children, says, “We can't abandon them if they are suffering financially. We are looking for that extra touch that will let them know we still care about them. We'll give a phone call, an e-mail, just to let them know we still want them around. They'll come back when the economy rebounds if you have stuck with them through this down market."
- Look for donors in thriving industries – While overall stock market and mutual fund indexes may be down, there are companies that are still making money. Bob Hartsook, a fundraising consultant says, “You've got to look at who's doing well in your constituent group and get your head focused on [organizations] that are making money. You have to look for money where other people aren't looking, and you cannot accept universalities."
- Collaborate with other groups – Two are better than one. This statement is still true. Get imaginative. Connect with other similar ministries and see how you can combine projects and resources to have a bigger impact.
- Look for different types of funding – Getting a check isn’t the only way your organization can be helped. What about non-cash giving? People can donate timeshares, boats, cars, old jewelry, etc and you can turn it in to funding. Visit www.idonate.com for more information about this amazing new idea. It will become very important as economic times continue to change.
Information for tips 1-6 taken from Chronicle of Philanthropy.