Five Elements of Year-End Giving

Philanthropy and economic conditions go hand-in-hand. If the economy is suffering, philanthropy suffers, too. According to the Giving USA Annual Report on Philanthropy for the Year 2010, estimated charitable giving in the United States rose 3.8% - which reflects the modest economic recovery achieved in 2010. Based on the annual report, charitable giving was $290.89 billion for 2010. The increase in giving is good news to nonprofits that continue to be assertive with their messaging and fundraising goals, and proves that an organization that focuses on giving can and will thrive. Year-end giving is a key element in achieving fundraising goals.

This article outlines the five elements of year-end giving and how tomoncler mokacine down jacket be successful when the economy is still recovering.

1. Case for Giving

There is always a case or reason for donors to give. Regardless of the economy, a case for giving should continue to be presented in the marketplace. Since donors tend to give more in the last three mmoncler nantes hooded down coat onths of the year, tapping into year-end giving is critical.

Nonprofits should take the following into consideration when presenting its case for giving:
Do not ignore the economy. Donors will understand that there are financial challenges, but the organization also must illustrate measures taken to ensure donors' money is being spent wisely.
Be worthy - not needy. If a nonprofit is "tightening its belt" in preparation for a year that may be more austere than planned, donors should know. This will show that the organization is being prudent but staying the course due to the importance of its mission.
Do not panic. Crisis fundraising does not work well amoncler pop star coat nd will not lead to fundraising success. Many other nonprofits are facing similar challenges.
Appeal to emotion. Gifts are "generated from the heart and justified by the head." There is a societal need for what nonprofits do, and the results of fundraising benefit the entire community. Nonprofit organizations are worthy and have value - they should not be shy in asking for support.

2. Annual Fund

The annual fund is not about big plans for expansion or acquisition - it's about today. It tends to represent a substantial percentage of a nonprofit's operating income. A nonprofit should keep focused on its basic mission and how donors can help.

When asking for donations to the annual fund, remember to:
Stay within the philanthropic culture. Solicitors should be themselves - not too fancy or too austere. They should focus on the basics of solicitation and stay personal and respectful.
Make the needs known from the start. Adhering to organizational integrity, staff and volunteers should put forward the needs of the organization in order to reach fundraising goals and initiatives.
Do not eliminate end-of-the-year mailings. Donors are accustomed to end-of-year mailings and will expect them. However, the organization should plan for slower returns and possibly smaller gifts, but they should stay the course with direct-mail appeals.
Develop and conduct "the perfect ask." It is better for a nonprofit to be active in the philanthropic marketplace, than to sit on the sideline. Solicitors should be prepared with a strategy for conducting "the ask."
Create an end-of-the-year challenge. Nonprofits should consider leveraging loyal, major donors to create an end-of the-year challenge that inspires others to give. For instance, the organization can ask a major donor to match any new or upgraded gifts.
Promote participation. Even if an organization is confident about meeting its annual fund goals, continuing to acquire new donors at any level and promoting participation is beneficial.

3. Capital Campaign Planning

While the economy is affecting the psychological state of donors, organizations still have needs, plans and goals; therefore, planning for and implementation of campaigns should continue. Stagnation is damaging and very hard to overcome. Still, nonprofits should be prudent and cautious, while continuing to move forward. Take year-end giving into consideration when planning your capital campaign.

To plan a successful capital campaign, a nonprofit organization must:
Build an urgent and compelling case for giving. Solicitation teams should be trained and prepared to handle major-gift asks. If an organization spends time building volunteers' confidence, they can spread the nonprofit's message in a positive, proactive manner. The more personal the message is, the more effective it will be.
Spend time reviewing the prospect pool. Members of the organization must identify potential prospects, conduct prospect research and determine which have influential relationships that can "win the campaign on paper."
Cultivate current and prospective donors. The nonprofit must involve their prospective and current donors and let them know how important they are. These individuals will be your most likely prospects to support the organization during the campaign.

4. Capital Campaign Solicitations

Solicitation is never an easy task. To make soliciting donors more successful and less stressful, those asking should acknowledge that the campaign may take longer than expected, that gifts may be smaller than hoped for and that, in general, the fundraising will be harder.

To be successful with capital campaign solicitations:
Prepare for a longer campaign timeline. Campaign leadership should make adjustments to the plan and timeline. This will account for solicitations that take longer and for donors who will be conservative and cautious about their philanthropy.
Increase the prospect pool. The organization must continue to build relationships with potential donors in an effort to increase the prospect pool. Acquiring new donors is the basis of all fundraising activity. Ask your current donors and volunteers to suggest others who could be asked.
Continue to ask. If the organization is not making progress with the current "ask," campaign leadership and solicitors should reevaluate the ask amounts, examine the solicitation training and ensure that the right solicitation teams are in place. In current economic environment, nonprofits must be active in the marketplace.
Utilize letters of intent. If prospects are uneasy about making a multi-year pledge, the solicitor should offer a letter of intent as an alternative and consider other creative options for pledges. One solution, for example, might be to suggest the donor give 20 percent of the proposed ask amount now (this fiscal year) with the understanding that the solicitor will return the next year to discuss a four-year pledge.
Ensure the team stays committed and motivated. While the original plan may change, the solicitation team needs to be assured that there is a reasonable strategy being implemented. Knowing that there is a path to success - regardless of the economy -- will keep your team motivated and committed to the initiative.

5. Stewardship

Stewardship is the vital connection between the nonprofit and its constituents. It allows the organization to develop relationships with donors by thanking them in a manner that will cultivate future giving to the organization.

To create a successful and on-going stewardship program:
Maintain strong relationships. Donors with whom an organization has a strong, confident relationship will continue to support the organization.
Show results. Donors will continue to invest when they can see that their dollars are making a difference. They will know and understand their value to the nonprofit.
Add value. Donors who have experienced the organization's productivity and understand the "value added" to the community will not only continue to donate but will also help attract other supporters.

While philanthropy and the economy have a symbiotic relationship, it is important for nonprofits to stay focused on their fundraising goals and remain active in the marketplace. Organizations should continue to maintain strong relationships with current donors, while always working to identify new potential donors.

Year-end giving is critical to the overall success of your fundraising goals, annual fund, stewardship and campaign. By following these five elements of year-end giving and remaining calm during dips in the economy, an organization will find fundraising success.