The Annual Fund - Lifeblood for a Successful Non-Profit

During unsteady economic times, remaining fund-raising focused is a critical priority for non-profits.  Because it is basic in so many ways, sustaining a dynamic Annual Fund program as the centerpiece of a financially sound fundraising plan is pertinent to both the short-term and long-term success of a non-profit.  Its immediate impact of infusing money into the organization helps fund the non-profits mission, while its collateral effects keep the good works of the non-profit well-regarded and comfortably in the forefront of its constituent's thoughts. 

Concentrating on a successful Annual Fund program fosters several fundamental institutional objectives, including the acquisition and retention of donors, the identification and cultivation of new potential donors, keeping the case for support fresh and upfront with your constituents, involving your volunteers, and perhaps most important - thanking your donors. 

In a troubled economy, concerns that seem to constantly sit just below the surface move to the forefront.  Uncertainty fuels reluctance of donors to give.  Board members become even more hesitant to ask for gifts.  Vendor/corporate sponsorships at events go down.  The net result is that, without a concerted effort, giving will decrease while the needs of the organization increase.   

As the chief fundraiser for your organization, you are challenged to stimulate financial and emotional interest from your constituents during critical annual fund campaigns in a down economy.  The case should focus donors on their opportunity to make life-changing differences while building quality within your organization.

To default to the economy, to just sit back and wait for economic conditions to improve, allows your donors to become familiar with other non-profits and the good works they are performing in your community.  Stay in front of your constituency. 

WHAT TO DO?

First and foremost - DON'T QUIT!  Move forward with your Annual Fund Campaign.  If not, when the economy rebounds, your organization will lose 6 to 12 months getting up and running, and you will lose current donors to other non-profits which used the time to educate and cultivate your donors to their mission. 

A comprehensive annual fund program includes a principal direct mail appeal with a strong mission oriented message and includes an easy and direct method of response.  This main mailing should be supplemented by a succession of other mailings and global email reminders, a series of phon-a thons, a minimum of one special event, and an easily accessible website providing a mechanism for on-line giving. 

In establishing a goal, be realistic by meshing past results and your existing resources with an eye toward the current economy.  In good times, annual fund campaigns of established non-profits increase upwards of 10% each year.  At SBA, it has been our experience that annual fund programs in a recessionary economy continue to exceed prior year totals, with traditional donors invested in the organizational mission continuing to provide the $100, $250 and $500 gifts and, for major donors, gifts of $1,000.

Present a case for support with consistent themes detailing what gifts can accomplish.  Concentration should focus on those with a history of giving, beginning with donors who supported the organization in the previous annual fund campaign followed by donors who gave in prior years.  Look for donors in industries that are thriving despite recession. Finally, securing gifts from new donors, possibly with the help of a challenge gift, is important.   

Use the tools at your disposal, including direct mail, publications, your website, public events, email blasts, and your volunteers.  Phon-A-Thons are a great way to engage volunteers, while key staffers and board members should concentrate on face-to-face visits with top donors to secure major gifts. 

Make it easy on your donors to donate.  Provide postage-paid envelopes, make it easy to use credit cards on the website, and offer those wishing to pledge the opportunity to fulfill their obligation in installments.

STEWARDSHIP IS KEY!!!

Stewardship defines a good development program in tough times - and in good times.

Stewardship means many things, but it is important to inform your donors of the impact of their gifts - what is or will be different because of their financial support.  When that change actually occurs, inform them again.  If your organization does not have a formal stewardship plan, use this time to develop a realistic plan, and stick to it when economy improves.

Remember - it is easier to keep former donors than to get new donors.  Develop a specific mailer to inform donors of how their gifts changed the organization and its clientele.  You should strive to retain a minimum of 70% of donors annually.

Be accountable - Schedule meetings with all donors to let them know what has happened in the past with their gifts - and include a discussion about your mission and vision.