At Ketchum, we receive a lot of questions from nonprofit organizations about fundraising, the economy, giving recovery after the recession and even more. We’ve put together a list of the top most frequently asked questions for 2009, and here are Ketchum’s answers.
When will things get back to “normal”?
Frankly, they will not. The economic events of the last 18 months have changed people and organizations. These changes cannot be reversed. However, the Giving USA Foundation does provide some excellent analysis showing how long it typically takes for giving to start growing once a recession ends. That analysis can be found here.
And before we start pining for the good ole days of 2007, consider this: the Fundraising Effectiveness Survey shows that most organizations were losing 5 donors for every 6 donor they were acquiring in 2007. It showed 6 for 6 in 2008. So even in 2007, most fundraising programs had significant donor retention and stewardship issues. Click here to see the survey report.
At Ketchum, we know that it is time for better than normal methods for acquiring donors and keeping them engaged. As part of the Pursuant group, we are helping organizations re-think their entire donor spectrum in order to maximize the lifetime value of every donor.
Have we reached the bottom yet?
We don’t know. If we did, we would be the most successful stock traders ever. And in spite of our flip answer to this question, we do hope you will keep reading. The answers get better, we promise.
Should we be launching a campaign right now?
If you consider your project to be “optional” or “not really important”, then we highly recommend that you delay your campaign plans. As a result, you will leave more philanthropic dollars available for higher priority, more important projects.
Of course, if you have a compelling case for support that shows donors how they can make an impact in other people’s lives, their communities, the world, etc. then you need to move forward. Ketchum is helping many organizations discover the best path for securing important philanthropic support now, both within and outside the structure of a campaign.
What are the trends?
The most compelling trend we see is that there is no one trend that is universal. Huh? Well, when an organization has even more limited resources than usual, it cannot afford just to jump on the latest fundraising trend’s band wagon. An organization needs to understand its unique constituency, what the constituency’s interests are, how those interests connect with the organization’s mission. Only then can an organization execute strategy that involves, engages, and recognizes donors in ways that are meaningful to the donors.
Ketchum is helping organizations understand their strengths and weaknesses and recognize that what is working for others may not work for you. Yours is a unique constituency that has its own reasons for supporting your organization, Ketchum can help you embrace and build upon that.
What do we really need to know about social media?
See answer above and for more thoughts, go
here.
What will be the impact of proposed tax law changes on charitable giving?
Charitable giving has been just 2% of the Gross Domestic Product for the last 40 years. During those 40 years, there have been many tax law changes, significant advances in the professionalization of fundraising practices, a couple of recessions, natural disasters, terrorist attacks on our own soil, the creation of the Internet, and many other changes.
Perhaps this history suggests that a better question to ask is “is there anything we can do to fundamentally change the level of generosity in this country?” At Ketchum, we believe there is and we welcome the opportunity to work with organizations that are passionate about their causes and truly wish to engage a larger constituency in important missions.
How do I keep my job?
Start by making sure you understand and can articulate the value you bring to your organization. What impact are you making? How should your impact be measured?
The issue of metrics in development is an important topic these days. Ketchum has participated in numerous discussions with nonprofit leaders about how to create better tools for measuring the real impact of investments in development personnel and resources. Year-to-year comparisons do not fully capture the ROI especially when you consider that most transformational gifts institutions receive are the results of years of cultivation, not months. (For an example, read about the genesis of a $150 million gift that was 10 years in the making)
Should college football disband the BCS and enact a playoff system?
Some of us love the BCS for the passion it brings to every game played every week of the college football season. We also appreciate the ongoing controversy that its very existence fuels. If everyone was happy with the system for selecting the number 1 college football team in the country, it wouldn’t be nearly as exciting. Of course, if we had that issue settled, maybe we could start more passionate conversations about things such as improving graduation rates, Title IX, and keeping higher education affordable for more students.
