Myth-busting: Campaigns Hurt Annual Fundraising Nan McConnell, CFRE, President The McConnell Consulting Group Suzanne Bissell, CFRE, Principal Bissell Philanthropy Services #AtTheBridge
Oxford Dictionary myth /miTH/ Noun: 1 A traditional story, especially one concerning the early history of a people or explaining some natural or social phenomenon, and typically involving supernatural beings or events. traditional stories or legends collectively 2 A widely held but false belief or idea. a misrepresentation of the truth a fictitious or imaginary person or thing an exaggerated or idealized conception of a person or thing Synonyms : legend, fable, delusion, hallucination
I’m here to save the day and the annual fund
What is Annual Fundraising ? Raising dollars: • critical for support of your organization’s mission every day, every year. • builds the foundation for a strong, comprehensive development culture.
Capacity Building Donors NEW RENEW INCREASE MAJOR GIFT LAPSED Volunteers NEW BOARD COMMITTEE CHAIR OF DIRECTORS LAPSED
The Culture of Philanthropy Board of Directors Executive Development Director Donor Centric Program Finance Staff Communication Frontline and Marketing Staff
The House of Development $$$$$$$ Transformational Gift Transformational Gift Campaign Planned Gift Gift Gift Annual Fund / Membership Volunteers Visitors
What is a Campaign ? Raising dollars: • With a focus on raising a large dollar goal, • Within a defined period of time, • For an extraordinary opportunity that exceeds capacity of annual fundraising.
Myth 1: Campaigns Compete with Annual for Donors and Dollars Myth-busting : • No competition - the case is different • The case for Annual Giving is mission based. • The case for a Campaign is the prospectus for an investor in a major fundraising effort.
Myth 2: Campaigns Detract from Annual Fundraising Myth-busting: • Annual fund helps achieve campaign goals. • Campaigns bring an organization-wide focus to fundraising.
Myth 3: Every Organization is Ready for a Campaign Myth-busting: • Campaigns require preparation and planning Consider: organizational readiness
PRE-CAMPAIGN ANNUAL FUND ANALYSIS 1200 12000 Tracking with Dow-Jones 1000 10000 Annual Fund Contributions ($000) Dow-Jones Industrial (Jan 1) 800 8000 600 6000 400 4000 200 2000 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Years (1979-2003) Annual Fund/Parents Dow Jones Ind
Scoring 25-30 points = Your organization is ready to conduct a planning study or to launch a campaign. 20-24 points = Your organization can consider a campaign, providing you address campaign readiness weaknesses. Fewer than 20 points = Your organization has work to do before considering a campaign.
Myth 4: Campaigns Divert Development Resources Myth-busting: • Campaigns identify new donors. • Campaigns identify new volunteers. • Campaigns strengthen development systems and infrastructure.
Myth-busting Case Study Homeless Services Organization Major Donors 2010 (year before Campaign) $132,000 2011 (Campaign starts) $150,000 2012 $166,000 2013 (Campaign Ends) $173,000 2014 $225,000 * 60% increase
Myth-busting Homeless Services Organization • New foundations (5) • Lapsed foundations/renewed (2) • New corporate supporters (4) • Major donor prospects – rated and never solicited (12) • New board members (1) • Trained solicitors on Development Committee (2) • Planned giving visits: confirmed (1); gift to campaign (1); gift to annual (1).
Myth 5: Campaigns Steal Donors from Annual Fund Myth-busting: • Annual is first priority for giving during a campaign. • Campaigns create opportunities to strengthen relationship to donors and build donor base.
Myth 6: Donors Are Tapped Out After Campaigns Myth-busting: • Donors are energized – seeing the impact and possibilities created by the campaign’s success. • Many donors never solicited for campaign. • Campaign donors transition into higher levels of annual giving.
Myth-busting • Annual fundraising is the foundation of a successful campaign. • Campaigns will succeed by building upon the annual fund and protecting it unconditionally.
Annual fund saved. Campaign successful.
References Myth-Busting Presentation References and Recommended Reading Artful Journey, Cultivating and Soliciting the Major Gift, 2 nd Edition, by William Sturtevant (available • through Institute for Giving) • Underdeveloped, A National Study of Challenges Facing Non-Profit Fundraising, Compasspoint and Evelyn and Walter Haas, Jr. Fund (available at www.compasspoint.org) • Strategic Fund Development, Building Profitable Relationships That Last Simone P. Joyaux (Aspen’s Fundraising Series for the 21 st Century) • Giving USA 2013
Thank you! Nan McConnell, nancyfmcconnell@aol.com 202-223-0207 Suzanne Bissell, suzannehbissell@gmail.com 571-217-8986 Don’t forget to visit the Solutions Showcase! Many of the ideas discussed today are on display at the Solutions Showcase! #AtTheBridge
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