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Recession-proof Fundraising
by Marc Pitman*
Weak economies can be very helpful for nonprofits. During such times, organizations are forced to be leaner and more efficient. When the economy rebounds, they're in a much better position to take advantage of it.
But economic downturns can also be perilous times for nonprofits. When faced with a recession, many nonprofits make bad choices that limit their growth. Some of these mistakes can prove fatal.
How will this economic climate affect your favorite nonprofit? Will you fulfill your mission or will you fold? That depends on whether you make these deadly mistakes:
Mistake #1: Spending less on fundraising
Whether we like it or not, asking for money costs money. When you're looking for budgets to trim, costly mailings and fundraising activities will seem like obvious opportunities. But exercise extreme caution.
Most fundraising efforts can be tweaked to improve their effectiveness. These tweaks can either reduce cost or increase money raised. But I've never seen a fundraising effort raise more money by being eliminated.
In a recent study I did, I discovered our organization's direct mail program raised more money during the years we sent out more letters. This was counter-intuitive to me. I'd worked for a couple years to eliminate mailings and focus exclusively on the people deemed most likely to make a gift. But in that time, our annual fund dropped by around 30%! This year we've increased our mailings and have already raised as much in six months as we did the entire previous year.
Spending less on fundraising can become a self-fulfilling prophecy. Less investment can result in less being raised which leads to further cuts and even less raised. Tighten budgets where necessary but be very careful when making cuts to fundraising programs.
Mistake #2: Becoming pessimistic
The top fundraising professionals are some of the most optimistic people alive. The minute they start being gloomy, people begin holding on to their wallets. Ever wonder why the stock market drops when pundits prophesy uncertainty? No one wants to invest in a questionable deal. It's the same with fundraising.
As development professionals, we're inviting people to invest in our mission. Our cause makes the world a better place regardless of the economy! That's not going to change. We need to continue to shed light on the good things happening around us. We don't need to be Pollyanna, but we do need to continue to see the silver lining.
Mistake #3: Apologizing when you're asking
When we keep hearing how bad things are, it's easy to get awkward about asking for donations. Timidity is a sure-fire way to not raise money. We need to continue getting out from behind our desks and inviting donors to give. I'm certainly not advocating being brash or arrogant. We do need to understand that many of our donors may not be able to give at the same level. This is where we can be compassionate and understanding. And our relaxed understanding of people's financial realities can make them even stronger proponents of our organizations in the future.
But there's nothing compassionate about not asking.
Whether the economy is soft or strong, one sure way to raise less money is to stop asking for it! The best way to recession-proof your fundraising is to keep doing the things that raises money and to do it in a way that strengthens relationships with donors, helping them become evangelists for your cause:
Combine these ingredients and you have an excellent recipe for strengthening your nonprofit independent of the economy!
*Marc A. Pitman is the author of Ask Without Fear and founder of FundraisingCoach.com, a website dedicated to practical ideas for fundraising more effectively.
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It Benefits You |
Save the Date |
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New Vitality: Growing Volunteer Service in Challenging Times
Thursday, November 12, 8:30am-3:30pm,
Hospice of Michigan, 400 Mack Ave., Detroit
$50
Whether you involve people in community service, civic engagement, social service or volunteer programs, this full-day workshop offers help with recruitment, job design, management and retention strategies. Learn successful techniques to deal with the needs of both volunteers and organizations in today's economy.
Presenter Nancy Macduff is an internationally recognized trainer and author. She will present concepts and guide interactive exercises to develop useful and creative strategies to effectively engage today's volunteers. The workshop provides the opportunity to assess the effectiveness of your volunteer program and make plans to enhance and improve it.
Hosted by ARISE Detroit!, DESC, MDVAN and NEW. Description and link to registration.
Happy International Volunteer Managers Day
November 5
To show appreciation for dedicated work in managing volunteer programs, Energize, Inc. is offering a 25% discount on any purchase in their Online Bookstore through Saturday, November 7.
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National Philanthropy Day Dinner
Thursday, November 12, Dearborn Hyatt, 5:30-9pm
Join the AFP Greater Detroit Chapter to honor many deserving volunteers. More information.
Martin Luther King Day of Caring
Monday, January 18, 2010
United Way for Southeast Michigan is planning their 2010 MLK Day of Caring, in partnership with Henry Ford Community College, Lawrence Technological University, Oakland Community College, Oakland University, University of Michigan Dearborn and Wayne State University. On Monday January 18 over 500 students will participate in a day of community service in honor of this holiday.
If your agency is located in Wayne County, Detroit or in a city that borders Detroit and Oakland County and you have a project suitable for at least 15 college student volunteers for that Monday from 9am-noon, please contact Kira Putt [Kira at LiveUnitedsem.org] (313-515-4611) by Friday, November 13.
Michigan Nonprofit Association SuperConference
May 18 & 19, 2010 at the Lansing Center in Lansing, MI.
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The Bulletin Board |
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Hewlett Packard DeskJet 1220C Color printer available free to a nonprofit organization. Delivery possible within 10 mile radius of Ann Arbor. Contact [Fred.Reinhart at wayne.edu] (734-454-9653).
Reminder: Ann Arbor Thrift Shop Proposals are due November 16.
Download an application from the Thrift Shop website, pick one up at the store (3530 Washtenaw Avenue, Ann Arbor), or email hayesgrants at annarborthriftshop.org
Affordable work station space available to 501(c)(3) nonprofits at the NEW Center in Ann Arbor. One rents for $150/month and the other for $175/month. Free broadband, access to color copier, fax, postage machine; featuring full kitchen, conference rooms, free parking, and more! For details contact Lia Stevens: 734-998-0160 ext. 209 lstevens at new.org
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npServ™ News |
Resource of the Month |
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We continue to add trainings; this one may be of interest to you
 Social Media for Youth-Serving Organizations
Friday, November 13, 10am-noon
Affirmations, 290 W 9 Mile Rd, Ferndale, MI
$40 ($5 off with online registration)
Presented by Linh Song, Director, npServ
This class will cover various aspects of social media for organizations that serve young people, including utilizing youth volunteers to achieve social media goals, how to monitor their online activities (we will set up your social media accounts to notify you via text message and e-mail), training young people to use social media wisely, and how to use social media to connect with the young people you serve. Please bring a laptop with a wireless card in order to access our wireless network.
More information and registration.
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Foundation Directory Online is the nation's leading online funding research tool. Updated continually, Foundation Directory Online includes details on more than 98,000 foundations and corporate giving programs and over 1.8 million recent grants. Five subscription plans are available starting at just $19.95 per month.
Use it for free with a coach by your side at NEW's offices in Ann Arbor or Detroit, or contact one of the Foundation Center's Cooperating Collection libraries. Call NEW for an appointment 734-998-0160 or 313-887-7788.
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Selected Upcoming Trainings in Southeast Michigan |
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See also Webinars (below).
Basics of Social Media and Online Fundraising
Friday, November 6, 10am - Noon, NEW Center, Ann Arbor or
Friday, December 4, 2-4pm, Affirmations, 290 W 9 Mile Rd., Ferndale
How are nonprofits able to fundraise online and raise thousands of dollars within days? Learn how organizations use social networking and social media to promote their work and reach supporters globally.
BoardConnect Candidate Training: Serving on a Nonprofit Board
Wednesday, November 11, 3-6pm, Hannan House, Detroit
$55 (save $5 with online registration).
Discounts available for members of Detroit Regional Chamber, Michigan Nonprofit Association, and Leadership Oakland
For community members interested in serving on a nonprofit board. You will learn about the five main responsibilities of board membership and how to find a board match with a nonprofit that could really use your expertise. Develop your leadership skills and offer a valued community service through BoardConnect. More information, pricing and registration.
New Vitality: Growing Volunteer Service in Challenging Times
Thursday, November 12, 8:30am-3:30pm, Hospice of Michigan, 400 Mack Ave., Detroit,
$50
Internationally-recognized presenter Nancy McDuff will impart new perspectives and strategies to help us engage volunteers more effectively. Hosted by ARISE Detroit!, DESC, MDVAN and NEW. Description and link to registration.
Social Media for Youth-Serving Organizations
Friday, November 13, 10am-noon
Affirmations, 290 W 9 Mile Rd, Ferndale, MI
$40 ($5 off with online registration)
See description above.
Building Your Board
Thursday, November 19, 9am-noon, NEW Center, Ann Arbor
$55 (save $5 with online registration)
Covers important aspects of recruiting new members for a nonprofit's board of directors including recruitment planning, identifying and cultivating candidates, and electing new members.
Basic Grant Writing
Wednesday to Friday, November 18-20
Battle Creek, MI
$500 per person
This intensive, customized 2.5 day workshop will teach you how to plan, organize and write effective grant proposals. You will leave the course with a well-organized manual that will guide you through the grant writing process for years to come. Presented by Thomas A. Jones. To register: 269-565-2190 or email [info at nonprofitalliance.org].
The Next Level: Using Social Media Creatively
Friday, November 20, 10am-noon
Affirmations, 290 W 9 Mile Rd, Ferndale, MI
$40 ($5 off with online registration)
Presenter: Linh Song, Director, npServ
So you already have a Facebook page and a Twitter account. You know how to use them. But do you know how to use them well? Please bring a laptop with a wireless card in order to access our wireless network. More information and registration.
The Art and Science of Grant Writing, a Workshop
Tuesday, December 1, 9am-3pm
BT Training Center, 26100 Annapolis, Inkster
Presented by US Government Grants
Details on what's covered, including "Why 50% of grant proposals fail" can be found at this link. Click on "workshop schedule" at the bottom to find this Detroit offering and a link to online registration. Questions? Call 866-843-3493.
Financial Policies and Procedures Manual Workshop
Wednesday, December 9, 9-11am
Detroit Executive Service Corps office - 16250 Northland Drive, Suite 390, Southfield, MI.
Class fee is based on your organization's annual budget.
Write your financial policies and procedures with the help of an expert. The workshop includes an electronic financial policy and procedure manual that is easily adapted to fit an agency's needs. Agencies in the Detroit metro area may have a follow-up visit by a consultant to ensure effective implementation. Phone and email consultation is available for those located outside the Detroit area.
More information and registration.
BoardConnect Candidate Training: Serving on a Nonprofit Board
Thursday, December 10, 9 am-noon
NEW Center, Ann Arbor
For community members interested in serving on a nonprofit board. You will learn about the five main responsibilities of board membership and how to find a board match with a nonprofit that could really use your expertise. Develop your leadership skills and offer a valued community service through BoardConnect. More information, pricing and registration.
Building Your Board (Oakland)
Tuesday, December 15, 3-6pm
The Corners, 2075 Walnut Lake Rd
West Bloomfield, MI
$55 (save $5 with online registration)
Covers important aspects of recruiting new members for a nonprofit's board of directors including recruitment planning, identifying and cultivating candidates, and electing new members.
WEBINARS - LEARN AT YOUR DESK
Twitter Quickstart: Webinar
Thursday, November 12, 2-3pm EST
Cost: $40 ($5 off with online registration)
Presenter: Dana Cadman
Learn how to use the most popular - and free! - social media tools to enhance your efforts and spread your message to and beyond your constituency.
More information and registration.
Wakeup Webinar: Nominating Chair 101
Wednesday, November 18, 7:30-8:30am EST
Cost: $39 (save $5 with online registration)
Diana Kern of BoardConnect will give tips on how to lead the nominating committee.
YouTube/Flickr Quickstar: Webinar
Thursday, November 19, 2-3pm EST
Cost: $40 ($5 off with online registration)
Presenter: Dana Cadman
More information and registration.
Aspiring CEO Webinar Series
$50 per organization. More information and registration
These monthly webinars for nonprofit leaders can be taken individually. Previous sessions are archived.
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Wednesday, Dec. 2, 1pm EST: My Boss is the Board!
Free, Live Web Chats on Managing through Tough Times
Join the Chronicle of Philanthropy and the Nonprofit Finance Fund. Submit questions ahead of time and set a reminder for yourself. See transcripts of previous chats.
Employment Law Webinar Series
Presented by the Michigan Chamber of Commerce
10-11am EST, $95 each
Keep abreast of new or changing issues critical to Michigan employers. Taught by Stephen Fishman of Bodman, LLP. More information
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Tuesday, November 10 Drafting the Ultimate Workplace Handbook
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Wednesday, December 9 Managing Workplace Costs through Unpaid Furloughs
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Thank you to Supporters of NEW
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Special thanks to NEW's founding partner
the McKinley Foundation
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NEWSNOTES is proud to celebrate its seventh year of publication.
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