One of the easiest ways to raise more money is to cut your expenses.
Quite a few years ago, I was asked to lead the state golf championships of the American Cancer Society's golf program.
Winners of local fundraising tournaments had been "qualifying" to play in the state championships, which were held over a weekend, which had always been at the beach.
The state organization's overall income from golf tournaments was a couple hundred thousand and then the state organization spent more than $20,000 putting on what amounted to a big party at the beach for the local winners.
That carrot at the beach basically amounted to an additional ten-percent expense on a program that wasn't really all that successful and that also had expenses at the local level.
When I took the program over, I decided to get a committee of volunteers together from across the state to make some changes, reduce expenses in the state championships, and still try to leave people with a good feeling about the whole thing.
Here's what we did: moved the tournament to a nice course in the middle of the state, made it a one-day event, and held an optional dinner the night before the event that featured a silent auction and some other "income enhancers." We dramatically decreased expenses and added a few new income sources.
The result?
We actually netted about $5,000 on the state championships, which actually was a net gain of about $25,000 in the overall golf program, since we eliminated an overall $20,000 expense.
There's ALWAYS a way to reduce expense without sacrificing quality. Always.
What are some of the things you have done to reduce expenses?
Thursday, September 1, 2011
Friday, August 26, 2011
What do you NEED?
In this day and age, at least for me, I've had to lower my fundraising expectations.
That's a lot for me to admit.
I'm used to annual million-dollar increases, finding ways to get everyone to give more, and creating new revenue streams.
But that's just not the reality for a lot of organizations these days.
Executive directors, boards, and volunteers need and can find success in lowering their expectations and asking for what they NEED, not what they WANT.
When setting your corporate sponsorship levels - especially for newer projects that don't have a lot of buzz associated with them - ask yourself, what is the lowest amount that I NEED in order to make this project happen? What do I NEED to cover my expenses. What do I NEED for this project to be successful and for board members and volunteers to walk away from this feeling good?
Start from where you're at.
Forget that other people are getting 10k or 20k for their gold-level sponsorships. If you only need 5k, ask for 5k.
Lowering your expectations is a great way to be successful and give yourself room to grow, even in a difficult economy.
Even for a hyper-competitive guy like me.
Have you lowered your expectations? How'd that work out?
That's a lot for me to admit.
I'm used to annual million-dollar increases, finding ways to get everyone to give more, and creating new revenue streams.
But that's just not the reality for a lot of organizations these days.
Executive directors, boards, and volunteers need and can find success in lowering their expectations and asking for what they NEED, not what they WANT.
When setting your corporate sponsorship levels - especially for newer projects that don't have a lot of buzz associated with them - ask yourself, what is the lowest amount that I NEED in order to make this project happen? What do I NEED to cover my expenses. What do I NEED for this project to be successful and for board members and volunteers to walk away from this feeling good?
Start from where you're at.
Forget that other people are getting 10k or 20k for their gold-level sponsorships. If you only need 5k, ask for 5k.
Lowering your expectations is a great way to be successful and give yourself room to grow, even in a difficult economy.
Even for a hyper-competitive guy like me.
Have you lowered your expectations? How'd that work out?
Friday, August 19, 2011
Find meaningful ways to thank sponsors and donors
When I first started working for the American Cancer Society, I was told that donors need to be thanked seven times.
I Googled that recently and found out it actually is an old Chinese custom and the ACS didn't invent the concept.
But as the largest voluntary health organization in the world, it apparently is working well for the ACS, also.
I don't think I thank sponsors enough and probably nowhere near seven times.
But I do try to thank sponsors in ways that are meaningful to them.
Here's a few things I have done:
1. Held sponsor appreciation events at convenient times in convenient locations (For me, that means not using a building that requires people to park in parking garages, if possible. I think parking garage events create a mental barrier that someone won't be able to get in and out quickly if that's what they want to do).
2. Taken a plaque to the Partner of a large law firm that has supported a number of social service programs I have helped find sponsors for and thanked him with a plaque presentation in front of his staff at a staff meeting. I told the staff that without their support and hard work, the firm could not help with community events like the ones that the Partner had been supporting.
3. Presented a plaque in front of the Park and Recreation Commission recently to the General Manager of a restaurant that has catered a big golf event for several years (the GM committed to once again cater next year's event after the presentation was over with).
4. Have a procedure instituted where any sponsorships of $5,000 and up are recognized by letter from the Chairman of the Mecklenburg Board of County Commission.
5. Take people, when possible, in front of the Mecklenburg Board of County Commissioners for recognition of their sponsorships, which has an added benefit because their meetings are broadcast live on television.
Finding meaningful ways to thank donors and sponsors pays big dividends because it is one way to keep them coming back.
What are some things that have worked for you?
I Googled that recently and found out it actually is an old Chinese custom and the ACS didn't invent the concept.
But as the largest voluntary health organization in the world, it apparently is working well for the ACS, also.
I don't think I thank sponsors enough and probably nowhere near seven times.
But I do try to thank sponsors in ways that are meaningful to them.
Here's a few things I have done:
1. Held sponsor appreciation events at convenient times in convenient locations (For me, that means not using a building that requires people to park in parking garages, if possible. I think parking garage events create a mental barrier that someone won't be able to get in and out quickly if that's what they want to do).
2. Taken a plaque to the Partner of a large law firm that has supported a number of social service programs I have helped find sponsors for and thanked him with a plaque presentation in front of his staff at a staff meeting. I told the staff that without their support and hard work, the firm could not help with community events like the ones that the Partner had been supporting.
3. Presented a plaque in front of the Park and Recreation Commission recently to the General Manager of a restaurant that has catered a big golf event for several years (the GM committed to once again cater next year's event after the presentation was over with).
4. Have a procedure instituted where any sponsorships of $5,000 and up are recognized by letter from the Chairman of the Mecklenburg Board of County Commission.
5. Take people, when possible, in front of the Mecklenburg Board of County Commissioners for recognition of their sponsorships, which has an added benefit because their meetings are broadcast live on television.
Finding meaningful ways to thank donors and sponsors pays big dividends because it is one way to keep them coming back.
What are some things that have worked for you?
Friday, August 12, 2011
Donor retention just as important as finding new donors
I'm gonna tell you a short story.
Back in December of 2008, the economy was crashing, stocks were tumbling, and getting return phone calls or emails about sponsorships was depressing, to say the least.
Then I get a phone call from the title sponsor of Mecklenburg County Park and Recreation's signature event, Bark in the Park. Due to the economy and changing marketing priorities, the title sponsor was not renewing its $50,000 title sponsorship of that event.
It's hard to find a title sponsor. It's even HARDER to replace a title sponsor and replacing a title sponsor during the Great Recession was almost impossible.
After much networking and just two months before the event, I was able to find a new title sponsor, but for $20,000. I talked to the event committee - we agreed to take it. Not too many people were announcing new $20,000 sponsorships at this time, I pointed out to them.
My job then became really simple: Make sure the new sponsor was thrilled with what they recieved for sponsoring Bark in the Park.
I made sure all the ducks were in a row, made sure their logo was in all the right places, and sat down with my new best friend title sponsor a number of times to make sure he was getting everything he wanted out of the event.
At the April 2009 Bark in the Park event, I was insisting that the new sponsors' tables were being set up exactly like the sponsor wanted.
A staffer helping with the event said, "What do you care? You've already got their money!"
I replied: "I'm already working on next year!"
And I was.
The next year, the new title sponsor increased their commitment to the event by 50% from $20,000 to $30,000. They were thrilled with what they got out of their first title sponsorship of Bark in the Park.
And while that didn't bring us back up to the $50,000 we were at before, by working with the new sponsor we were able to open up some new sponsorship categories that had been closed at the insistence of the previous sponsor and that brought in another $10,000.
The point is, fight like heck to keep the sponsors and donors you've got. Sit down with them often and ask them if they are getting everything they want and expect from your event. You may not be able to replace them.
What steps are you taking to retain major donors?
Back in December of 2008, the economy was crashing, stocks were tumbling, and getting return phone calls or emails about sponsorships was depressing, to say the least.
Then I get a phone call from the title sponsor of Mecklenburg County Park and Recreation's signature event, Bark in the Park. Due to the economy and changing marketing priorities, the title sponsor was not renewing its $50,000 title sponsorship of that event.
It's hard to find a title sponsor. It's even HARDER to replace a title sponsor and replacing a title sponsor during the Great Recession was almost impossible.
After much networking and just two months before the event, I was able to find a new title sponsor, but for $20,000. I talked to the event committee - we agreed to take it. Not too many people were announcing new $20,000 sponsorships at this time, I pointed out to them.
My job then became really simple: Make sure the new sponsor was thrilled with what they recieved for sponsoring Bark in the Park.
I made sure all the ducks were in a row, made sure their logo was in all the right places, and sat down with my new best friend title sponsor a number of times to make sure he was getting everything he wanted out of the event.
At the April 2009 Bark in the Park event, I was insisting that the new sponsors' tables were being set up exactly like the sponsor wanted.
A staffer helping with the event said, "What do you care? You've already got their money!"
I replied: "I'm already working on next year!"
And I was.
The next year, the new title sponsor increased their commitment to the event by 50% from $20,000 to $30,000. They were thrilled with what they got out of their first title sponsorship of Bark in the Park.
And while that didn't bring us back up to the $50,000 we were at before, by working with the new sponsor we were able to open up some new sponsorship categories that had been closed at the insistence of the previous sponsor and that brought in another $10,000.
The point is, fight like heck to keep the sponsors and donors you've got. Sit down with them often and ask them if they are getting everything they want and expect from your event. You may not be able to replace them.
What steps are you taking to retain major donors?
Friday, August 5, 2011
No Mission, No Money
Make sure you build something about your mission into ALL of your fundraising efforts. Every single one of them!
When I worked for the American Cancer Society, during presentations I always said, "by participating in the Relay for Life, you are making a major impact in the fight against cancer" and I would tell people what, specifically, was happening in their community because of the money we raised through Relay for Life.
I always wanted to bring their participation back to why they were being asked to participate, raise money, and give money. What were they getting out of it?
This may sound obvious, but I've been to a lot of events that are really nice and well done, but you leave and you can't even remember what the cause was or how your attendance helped anyone. Then, when I get a solicitation letter in the mail, I don't even connect the letter with the event I just attended.
Find a way to remind people what your mission is at every turn.
Here's a few examples:
1. Ask a beneficiary of your programs to write a thank you letter to your volunteers or donors once a year.
2. Tell a real story of a person who receives benefits from your program on marketing materials whenever possible and include a quote from them about how your program has impacted their life. Even if it is a theater group - tell a real story of how a recent production touched someone. That moves people to give more.
3. Never, ever, ever hold a board meeting, committee meeting, or kickoff party without having at least some brief comments of gratitude from a recipient of your services or at least a reminder of what your mission is. Tie everything back to the mission.
4. Include program beneficiaries - not just the board president and the executive director - on the agenda to speak briefly at events.
5. Have program recipients pass out t-shirts and hand out water at the watering stations to thank participants at your next 5k.
When I was working in Savannah, GA, we did an event called "Making Strides Against Breast Cancer" featuring a life-size exhibit of real breast cancer survivors from Savannah called "Voices and Faces of Breast Cancer."
I was lucky enough to accidentally sit next to a woman on a plane shortly after that who was one of the voices and faces of the exhibit.
Being a part of the exhibit changed her life; it changed mine, too. It is a reminder to me of how I need to always lead off fundraising efforts with the power of the mission by telling personal stories whenever I get a chance.
When I worked for the American Cancer Society, during presentations I always said, "by participating in the Relay for Life, you are making a major impact in the fight against cancer" and I would tell people what, specifically, was happening in their community because of the money we raised through Relay for Life.
I always wanted to bring their participation back to why they were being asked to participate, raise money, and give money. What were they getting out of it?
This may sound obvious, but I've been to a lot of events that are really nice and well done, but you leave and you can't even remember what the cause was or how your attendance helped anyone. Then, when I get a solicitation letter in the mail, I don't even connect the letter with the event I just attended.
Find a way to remind people what your mission is at every turn.
Here's a few examples:
1. Ask a beneficiary of your programs to write a thank you letter to your volunteers or donors once a year.
2. Tell a real story of a person who receives benefits from your program on marketing materials whenever possible and include a quote from them about how your program has impacted their life. Even if it is a theater group - tell a real story of how a recent production touched someone. That moves people to give more.
3. Never, ever, ever hold a board meeting, committee meeting, or kickoff party without having at least some brief comments of gratitude from a recipient of your services or at least a reminder of what your mission is. Tie everything back to the mission.
4. Include program beneficiaries - not just the board president and the executive director - on the agenda to speak briefly at events.
5. Have program recipients pass out t-shirts and hand out water at the watering stations to thank participants at your next 5k.
When I was working in Savannah, GA, we did an event called "Making Strides Against Breast Cancer" featuring a life-size exhibit of real breast cancer survivors from Savannah called "Voices and Faces of Breast Cancer."
I was lucky enough to accidentally sit next to a woman on a plane shortly after that who was one of the voices and faces of the exhibit.
Being a part of the exhibit changed her life; it changed mine, too. It is a reminder to me of how I need to always lead off fundraising efforts with the power of the mission by telling personal stories whenever I get a chance.
Thursday, July 28, 2011
Create winning partnerships with radio, television
I rarely do an event that doesn't have some sort of radio or television component as part of the communication strategy.
First, it increases your organization's profile. Second, having a radio or TV station logo on event collateral material is a great way to attract attention from additional sponsors and participants because it gives the signal that your event has some serious promotions behind it.
There are a number of things you can do to get free media to promote events - besides sending out news releases and hoping that the reporters cover it.
First, ask a local television personality to be your emcee. This practically guarantees that your event will make it on the evening news - if nothing else - the day of your event. Call the station a minimum of three to six months before your event and ask to be transferred to that personality directly. Leave that person a message with the basics - who, what, when, where, and why. If the event fits into that person's schedule, they probably will be your emcee.
Second, figure out what radio station's audience most closely aligns with the audience you expect to participate in your event. Make a call to the station a minimum of three to six months before the event and ask to speak to someone in promotions. Tell them about your event and ask them if they'd like to partner with you. You'll put their logo on your collateral, let them have a DJ speak on stage at the event, and give them space for a tent or a vehicle at the event to give out prizes.
If possible, tell the radio station's promotions person they can also get some of the station's business clients involved, put their logos on your materials, and give them spaces at your event. This will heighten their interest.
In return, they just need to give you spots in their inventory to promote your event. For most events, 20 to 40 spots on a radio station will do wonders for the profile of your event, in conjunction with the other suggestions in this blog.
Don't expect a live remote - that's difficult in the new economy with shrinking audiences and shrinking ad revenues. Besides, you need the promotional spots in advance of the event more than you need a live remote.
For larger events or events that attract more impressions, seek a radio partner that can give you 100 spots or more. They also will gladly post your event on their website.
The biggest mistake I see is organizations asking radio or television partners to get involved with their events three to six weeks beforehand, when it almost always is too late for them to get involved.
By following these rules, I have generated hundreds of thousands of dollars in free radio and television spots to promote event that I have worked on. You can do it too.
First, it increases your organization's profile. Second, having a radio or TV station logo on event collateral material is a great way to attract attention from additional sponsors and participants because it gives the signal that your event has some serious promotions behind it.
There are a number of things you can do to get free media to promote events - besides sending out news releases and hoping that the reporters cover it.
First, ask a local television personality to be your emcee. This practically guarantees that your event will make it on the evening news - if nothing else - the day of your event. Call the station a minimum of three to six months before your event and ask to be transferred to that personality directly. Leave that person a message with the basics - who, what, when, where, and why. If the event fits into that person's schedule, they probably will be your emcee.
Second, figure out what radio station's audience most closely aligns with the audience you expect to participate in your event. Make a call to the station a minimum of three to six months before the event and ask to speak to someone in promotions. Tell them about your event and ask them if they'd like to partner with you. You'll put their logo on your collateral, let them have a DJ speak on stage at the event, and give them space for a tent or a vehicle at the event to give out prizes.
If possible, tell the radio station's promotions person they can also get some of the station's business clients involved, put their logos on your materials, and give them spaces at your event. This will heighten their interest.
In return, they just need to give you spots in their inventory to promote your event. For most events, 20 to 40 spots on a radio station will do wonders for the profile of your event, in conjunction with the other suggestions in this blog.
Don't expect a live remote - that's difficult in the new economy with shrinking audiences and shrinking ad revenues. Besides, you need the promotional spots in advance of the event more than you need a live remote.
For larger events or events that attract more impressions, seek a radio partner that can give you 100 spots or more. They also will gladly post your event on their website.
The biggest mistake I see is organizations asking radio or television partners to get involved with their events three to six weeks beforehand, when it almost always is too late for them to get involved.
By following these rules, I have generated hundreds of thousands of dollars in free radio and television spots to promote event that I have worked on. You can do it too.
Friday, July 22, 2011
Three magic letters - ROI
ROI.
Return on investment. That's the bottom line.
That's what businesses and marketers want when they spend money on something.
If you are asking a company for money, make sure there is some ROI for them.
For many businesses, especially small businesses, the ROI is measured in how many new customers you can send in their doors.
Many business owners and marketing directors have told me getting their logo on a banner or the back of a t-shirt in and of itself does not get them a significant return on their investment.
They want to put something in potential new customers' hands that will drive those would-be new customers into their business - like a gift certificate, coupon, or sample of a product.
It's really pretty simple. When is the last time you went into a business you had never been to and spent money because you saw their logo on the back of a t-shirt?
But I'll bet you can think of a time when you went into a business and spent money because you got a two-for-one offer, sampled a product, or got a free appetizer card.
Think about giving businesses a return on their investment rather than the standard logo placement benefits in a traditional sponsorship package and they will return to invest more money in your initiative.
Return on investment. That's the bottom line.
That's what businesses and marketers want when they spend money on something.
If you are asking a company for money, make sure there is some ROI for them.
For many businesses, especially small businesses, the ROI is measured in how many new customers you can send in their doors.
Many business owners and marketing directors have told me getting their logo on a banner or the back of a t-shirt in and of itself does not get them a significant return on their investment.
They want to put something in potential new customers' hands that will drive those would-be new customers into their business - like a gift certificate, coupon, or sample of a product.
It's really pretty simple. When is the last time you went into a business you had never been to and spent money because you saw their logo on the back of a t-shirt?
But I'll bet you can think of a time when you went into a business and spent money because you got a two-for-one offer, sampled a product, or got a free appetizer card.
Think about giving businesses a return on their investment rather than the standard logo placement benefits in a traditional sponsorship package and they will return to invest more money in your initiative.
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