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New Challenges for the Development Director and Fundraising Staff in a Changing Economy

New Challenges for the Development Director and Fundraising Staff in a Changing Economy. Robbe Healey, MBA, NHA, ACFRE AFP Chair. Trends in Fundraising. Nonprofit Leaders Containing Costs, Retaining Staff Redeploying staff & volunteers Consolidating operations

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New Challenges for the Development Director and Fundraising Staff in a Changing Economy

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  1. New Challenges for the Development Directorand Fundraising Staff in a Changing Economy Robbe Healey, MBA, NHA, ACFRE AFP Chair

  2. Trends in Fundraising Nonprofit Leaders Containing Costs, Retaining Staff Redeploying staff & volunteers Consolidating operations Increasing communications & transparency Tap expertise of board members Attract & retain great people

  3. Trends in Fundraising Foundations Reducing Grants 2/3 of Foundation expect to reduce number and size of grants in 2009 Foundations are engaging in more non grant-making activities If stock market does not rebound, giving will be drastically reduced for 2010

  4. Trends in Fundraising Direct-Mail Donors Still Dwindling Direct mail revenue up Number of donors responding down Response lowers as age goes down

  5. Trends in Fundraising Giving USA Reports Drop in Giving in 2008 2% drop compared to 2007 5.7% drop when adjusted for inflation Second worst year since Giving USA report started Corporate giving showed biggest drop of 8%

  6. Trends in Fundraising Center on Philanthropy Reports PGI PSI = 58 30% decrease from a year ago Average PSI = 82 86% report negative impact EI = 73 13% decrease from year ago 10% increase in last 6 months 60% expect economy to negatively impact fundraising for 6 more months

  7. Trends in Fundraising Volunteerism Changes 72% have cut back on volunteering 66% believe others are focusing inward and not helping out 50% have given $ or food to others in need 43% of young people are volunteering People who are religious are more inclined to volunteer in this economy

  8. What is it like out there?2009 State of Fundraising Report

  9. 2008 Survey • Respondents asked to compare 2008 results to 2007 results • Survey sent to random sample of 3,000 members • 10% response rate

  10. Overall Results • Prior year’s result for comparison • 65% raised more money in 2007 than 2006 • 11% raised the same amount • 24% raised less • 73% reached their fundraising goal

  11. Overall Results • Current year’s result • 46% raised more money in 2008 than 2007 • 14% raised the same amount • 40% raised less • 60% reached their fundraising goal

  12. AFP Holiday Giving Survey 53% of charities raised less during 2008 holiday giving season 23% were raising more – compared to 48% a year ago 48% receive 31% - 60% of their annual contributions in December 18% receive more than 60%

  13. Perspectives • Previous worst-performing year • 2002 • 49% raised more money • Highest-performing year • 2006 • 69% raised more money • Typical year: • 60% raise more money

  14. Perspectives • No clear trends seen across respondent organizations based on • Sector • Size • Geography • Smaller organizations fared about the same as larger organizations

  15. Fundraising Methods Type of Raised More Raised More Fundraising 2007 2008 Major Gifts - 82% 63.1% 43% Online - 64% 61.4% 53% Corp/Found 60.4% 41% Special Events - 78% 56.8% 43% Planned Giving - 60% 53.5% 33% Direct Mail - 85% 51.1% 28% Telefundraising - 31% 46.0% 31%

  16. 2009 Focus Areas Type of % of Respondents Fundraising Increasing Efforts in 2009 Major Gifts 76% Online 73% Planned Giving 71% Corp./Found. 63% Direct Mail 29% Telefundraising 28% Special Events 24%

  17. Optimism for 2009

  18. Biggest Challenges in 2009 • 79% ranked economy as one of the top 4 challenges • 57% ranked it as #1 • Other challenges • Attracting new donors – 48% • Reductions in corporate support & sponsorship – 30% • Staffing issues in the development office – 28%

  19. Impact of the Economy • Weaker economy = Low confidence • Volatile market = Giving decisions postponed • Everyone is cutting spending • Gifts are taking much longer to close

  20. What AFP is doing to help • Survival Kit for Fundraising in a Bad Economy

  21. Ideas for Surviving Tough Economic Times • Attitude is everything! • Work from a believe in abundance; don’t surrender to scarcity • Stand out: Make your case • Increase the time you spend with donors • Keep telling your story

  22. Ideas for Surviving Tough Economic Times • Research your prospects • Spend time friend-raising • Ask! • Adjust gift amounts • Explore alternative forms of giving

  23. Ideas for Surviving Tough Economic Times • Stewardship is key! • Make no assumptions • Re-examine current fundraising strategies • Keep working harder & harder • AFP Survival Kit

  24. What else AFP is doing to help • www.afpnet.org • eWire & eWire Skill Builder • Advancing Philanthropy • Resource Center • Ready Reference Series • Kaleidoscope • Public advocacy

  25. Changing Attitudes About Philanthropy • Living a philanthropic life • Making a difference • Time to consider their giving • Connecting to organizations in new ways

  26. The Power of Community • Community is important • AFP is YOUR community • Your chapter • Your world-wide colleagues • Your association

  27. What YOU can do! • Work to make your chapter • The place for professional development & networking for fundraisers • The place for information about ethical fundraising & philanthropy • The place for professional and personal support • Sharing your challenges • Support if jobs are lost • Connections to new jobs

  28. What YOU can do! • Use your AFP resources • AFP Code of Ethics & Donor Bill of Rights • Advancing Philanthropy & eWire • National Philanthropy Day® • Website: www.afpnet.org • Discussion groups • Resource Center • Ethics committee • Job postings

  29. What YOU can do! • Send the message • AFP is the ethical standard bearer for the charitable sector • Philanthropy and fundraising must be preserved for civic betterment • What your organizations do for your communities & what would be lost if they don’t survive • AFP members know how to weather this economic climate

  30. Seven Strategies You Can Use Today • Donor retention and stewardship • Focus on board & volunteer development • Segment, personalize & mind the details • Consider risk-taking • Collaborate with other organizations • Thank your donors • Stay positive

  31. Seven Reasons to be Optimistic in 2009 • Opportunities exist even in dark times • New national leadership • Nonprofits are news • Generosity is in/flaunting wealth is out • People thinking more of helping others • World of new fundraising tools • Fundraising is a growth profession

  32. Thank you! • For being a part of AFP • For your commitment to ethical fundraising • For being a member of the fundraising profession

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