We live in the midst of a “new normal.” The current, unprecedented global economic roller-coaster and political uncertainty impact personal philanthropy. This new normal has led to many donors’ anxiety about the future. As a result, people are not making new, first time gifts and are cutting their giving to some of their former charities—if not eliminating them altogether. Then, where are you to find the donors and the money to achieve your goals? Research shows that it requires 4.5 times the effort, staff, and dollars to acquire a new donor as it does to keep one. Yet some nonprofits seem to spend more time and energy pursuing a new giver than making the effort to keep the old friend happy and engaged. We know that with proper planning you can retain your donors. It has been demonstrated that with effective development and stewardship, you can be certain of an enthusiastic donor base and high retention. If you follow systematic procedures, the annual fund program is virtually failsafe. Securing donors is obviously the first step. But then you must acknowledge promptly and effectively, show appreciation regularly and sincerely, and give priority to winning the donor’s heart and mind to the cause. Following this plan will help to create a culture of giving at your organization.

1. 100 New Donors in 90 Days:
A Step-by-Step Process
David A. Mersky
October 17, 2012
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2. INTEGRATED PLANNING
Advising nonprofits in: www.synthesispartnership.com
• Strategy
• Planning (617) 969-1881
• Organizational Development info@synthesispartnership.com
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3. www.mission.do
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4. Today’s Speaker
David A. Mersky
Founder and Managing Director
Mersky, Jaffe & Associates
Assisting with chat questions: Hosting:
Jamie Maloney, Nonprofit Webinars Sam Frank, Synthesis Partnership
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5. ©2012 Mersky, Jaffe & Associates

6. The State of Philanthropy in
America Today:
A View from the Field
©2012 Mersky, Jaffe & Associates

7. What do we actually know?
The Economy
• Worst economy since Great Depression
• Low consumer confidence
• Historically, charitable giving correlates to M1
(Money Supply or disposable cash) not Dow Jones
• Charitable giving decreases less than 1% for every
100 points the Standard & Poor’s 500 index drops,
according to a study by the Center on Philanthropy
©2012 Mersky, Jaffe & Associates

8. Giving During Recessions
• Decline in first-time donors
• Loyal donors continue to give
• Religious affiliation and giving increase
• During the Great Depression bequest giving
increased to 70% of all substantial gifts, well above its
usual level of 10-20%
• Complex, tax-advantaged planned gifts decline
• Smaller gifts are less tax-advantaged, so current stock
market gains or losses are less relevant
©2012 Mersky, Jaffe & Associates

9. The number of 501(c)(3) organizations, 2002–2011

10. 2011 charitable giving
Total = $298.42 billion

11. Total giving, 1971–2011

12. Total giving as a percentage of Gross Domestic Product, 1971–
2011(adjusted for inflation)
Data are rounded.

13. Types of recipients of contributions, 2011
Total = $298.42 billion

14. Q:
How do you get your
piece of the pie?
©2012 Mersky, Jaffe & Associates

15. • A Compelling Case
A:
• A Comprehensive Plan
• A Strong Board
• A Systematic Approach
©2012 Mersky, Jaffe & Associates

16. Segment Your Donor Database
1. Sort donors by
A. Date of most recent gift
B. Amount of most recent gift
2. Current contributors
A. Have you thanked them sufficiently
B. Read http://merskyjaffe.com/10-essential-
articles/ways-to-thank-a-donor/
©2012 Mersky, Jaffe & Associates

17. How Are You Doing?
• How many donors on your database?
• How many gave in 2010?
• How many 2010 donors gave in 2011?
• What is the rate of renewal?
• How many 1st time donors in 2011?
• What is the total number who gave in 2011?
• WHERE ARE YOU IN 2012?
©2012 Mersky, Jaffe & Associates

18. Segment Your Donor Database
3. LYBUNTs—The Key to 100% Renewal
A. Analyze each donor for recency—i.e., month, year
B. Solicit them in most appropriate way—how they
gave the last time
– Direct mail
– Email
– Telephone
– Face-to-face
C. Attend to first time donors
D. Review LYBUNTS monthly
©2012 Mersky, Jaffe & Associates

19. Segment Your Donor Database
4. PYBUNTs—The Key to Resurrection
A. Further segment by highest gift, number of gifts and
cumulative giving
B. For each one who contributed $1,000 or more,
create a “Campaign of One” to re-engage
– Who can provide information
– Who should be assigned
– Design a set of tactical moves
– Review http://merskyjaffe.com/knowledge-
archive/webinars/major-gift-moves-management/
©2012 Mersky, Jaffe & Associates

20. ©2012 Mersky, Jaffe & Associates

21. A:
A Strong Board…
because leadership
trumps all
©2012 Mersky, Jaffe & Associates

22. 12 Principles of Governance
That Power Exceptional Boards
Responsible Boards
Competent stewards focusing on fiduciary oversight, compliance with
law, act with financial integrity and operate effectively and ethically.
X
The Source of Power
Thoughtful, intentional, active and engaged, knowledgeable and
communicative
=
Exceptional Boards
Active engagement and independent decision making, open and honest
with each other and the CEO, passionately challenge and support
efforts in pursuit of the mission.
©2012 Mersky, Jaffe & Associates

23. 8. Sustaining Resources
Exceptional boards link bold visions and ambitious plans to financial
support, expertise and networks of influence.
Responsible Boards
Approve balanced budget
Accept fundraising responsibilities and contribute personally
Promote organization in community
X
The Source of Power
Creative and diverse revenue sources
Enthusiasm for bold visions and ambitious plans
Active involvement in solicitations
=
Exceptional Boards
Generate increased revenue
Extend programmatic capacity or organization
Improve organization’s standing in the community
©2012 Mersky, Jaffe & Associates

24. ©2012 Mersky, Jaffe & Associates

25. A:
A Systematic Approach to Year-
Round Fundraising
©2012 Mersky, Jaffe & Associates

26. Creating a Culture of Giving
Gateways Cultivation
Leveraging Making the Ask
the Donor
©2012 Mersky, Jaffe & Associates

27. Gateway Events: First Point in a
Cycle of Life-Long Giving
• Three basic components
– System for capturing names and contact data
with permission
– Facts 101: Vision and Opportunities
– Emotional Hook
“As individuals, we are emotional donors looking for rational reasons to
justify our emotional decision to give.”
©2012 Mersky, Jaffe & Associates

28. Gateway Events: Program Format
• Greeting at the moment of arrival
• Sign-In
– Name
– Address
– Phone Number
– Email address
– Who invited them
©2012 Mersky, Jaffe & Associates

29. Gateway Events: Program Format
• Brief mix and mingle
• The Program
– Facts 101
• Brief history
• Mission
• Program overview
• The numbers
• Vision including the gap, their role and the $ to fill it
– The Emotional Hook
– Thank You and Wrap Up
©2012 Mersky, Jaffe & Associates

30. Gateway Events:
Thank You and Wrap Up
• Conclude on time
• Let people know about follow up
• Feedback
• Advice
• Handouts
• Basic brochure
• Fact sheet of FAQs
• The Complete Wish List: Real items by
program/department from small to large
©2012 Mersky, Jaffe & Associates

31. Follow Up and Involve
• Most important step to build lifelong donors
– Follow up process never ends
– Personal contact asking for feedback
• Systematic research call
– What will it take to have prospects feel they have made a real
contribution?
– To what extent do they want to become involved
• Customize a plan for each prospect
• Sooner you connect/ask for feedback, sooner you can give
them what they want and keep them coming back for more
©2012 Mersky, Jaffe & Associates

32. Script for Follow Up Call
• A research call to determine how each prospect might like
to become involved
• Key to follow up call: LISTEN FOR CUES
• The Script
1. Thank you for coming
2. What did you think?
3. Be quiet and listen
4. Is there any way you could see yourself becoming more
involved with our agency?
5. Be quiet and listen
6. Is there anyone else with whom you suggest we engage?
7. Be quiet and listen
©2012 Mersky, Jaffe & Associates

33. In this economy, what can you do?
• Focus on annual appeals that “matter”
• Steward relationships with funders and keep asking
• Be sensitive to donors’ challenges.
• Slow down cultivation cycle for major donors; be aware of
their specific economic situation
• Remind people about bequest giving as a way to support
your organization in the future
©2012 Mersky, Jaffe & Associates

34. In this economy, what can you do?
• Steward your loyal donors.
• Call or visit to thank them for their loyalty
• Hold a donor briefing—in person or by conference
call—to help them feel like insiders
• Transparency. Be honest about your financial
challenges, and share your plan to deal with them
• Tighten your case for giving, articulate the need for
your programs and demonstrate results
©2012 Mersky, Jaffe & Associates

35. Keep The Connections
• People will give to those that love
them the most.
• Why do donors stop giving? They no
longer feel connected.
• The number one reason why people
don’t give? No one asked them!

36. 100 Donors in 90 Days
An amazing series includes interviews with 12
top fundraising consultants about ways you can
find new donors. Tips cover everything from
social media to board involvement.
http://merskyjaffe.com/development/100-
donors-for-your-nonprofit-in-90-days-really/
©2012 Mersky, Jaffe & Associates

37. ©2012 Mersky, Jaffe & Associates

38. Mersky, Jaffe
& Associates
Financial and Human Resource
Development Solutions for Nonprofits
800.361.8689 413.556.1074 fax
www.merskyjaffe.com
OFFICES IN BOSTON AND NEW YORK
©2012 Mersky, Jaffe & Associates

39. Find listings for our current season
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