1. C ULTIVATING AND S USTAINING Y OUR A NNUAL F UND Presented by: Jerry F. Smith, CFRE President and CEO J. F. Smith Group Northeast Annual Giving Conference March 21, 2012

2. “Annual giving is the custom of making a gift-a-year to an institution in which one has faith…” -Benjamin Franklin

3. Purpose of an Annual Fund Build a habit of giving Identify new prospective donors Decrease “nickel and dime” fund-raising Produce restricted and unrestricted gifts for new or ongoing projects Increase volunteer base

4. Purpose of an Annual Fund Extend base of regular, continuous support from both new and established donors Promotes giving over a donor’s lifetime, not just a one-time gift

5. Purpose of an Annual Fund Can become the main source of unrestricted support for an organization

6. Planning for an Annual Fund Draft a philosophy statement Determine projects to be funded Set goals Give the annual fund a name and its own “brand” Seek administrative and board approval for all of the above items Develop a timeline and budget

7. Set goals for the Annual Fund Base a goal on what you can raise, not the dollar amount of the projects Set goals for: –Number of donors –Number of first-time donors –Number of parent donors –Number of grandparent donors –Number of alumni donors

8. Components of an Annual Fund Personal solicitations = 25% of goal Special events = 50% of goal Phone/direct mail/email/online giving = 25% of goal

9. Online Giving Statistics 63% of Americans have given or plan to give online this year More than 50% said that they would NOT have taken further action if they had not first visited the charity’s web site 2001= $550 Million 2009= $15.48 Billion –Fastest growing form in the world

10. Online Giving Research Online givers were better LIFETIME givers Age does not matter A higher percentage of donors 45 to 54 and 55 to 64 give online than offline 25% of donors aged 65 and older give both online and offline

11. Online Giving Research 77% of nonprofits had at least one online gift of $1,000 or more last year The median online gift above $1,000 was $3,500 in 2009 Also, a higher percentage of donors with annual incomes greater than $50,000 and beyond $100,000 give online than offline 33% of online donors will switch channels to become offline donors while only 3% of offline donors switch to online giving

12. Median Lifetime Giving Dollars Regular GiversOnline Givers School A$ 485$ 1,105 School B$ 115$ 654 School C$ 213$ 325 School D$241$390 School E$405$ 925 From Research by Peter Wylie

13. Online Giving Across Age Decades On average across the 5 schools, regular givers in their 50s gave $445; online givers in their 50s gave $1,451.60

14. Direct Mail Increase the number of mailings Record response levels from each mailing Increase segmentation Avoid “Dear Parent” salutation Hand sign the letters Use first class stamp Make envelope say “open me!” Thank donors immediately

15. Phonathon Follow first direct mailing with phonathon Consider using students Train callers; provide a script Fill out pledge card while on the phone Send thank you notes immediately Follow up with a letter specifying amount of pledge

16. Annual Fund Findings How is your Annual Fund currently doing this year? Source: Third Annual Annual Fund Survey by The Woolbright Group; http://www.woolbrightgroup.com/newsletter/2011/April/survey.html http://www.woolbrightgroup.com/newsletter/2011/April/survey.html (Based on responses from 43 Advancement Professionals)

17. Annual Fund Findings How is your Annual Fund currently doing this year? Trend Lines We’re staying steady this year in our dollars: 12% (2011), 16% (2010), 7% (2009) Our dollars are up: 84% (2011), 65% (2010), 22% (2009) Our dollars are down: 5% (2011), 19% (2010), 70% (2009)

18. Annual Fund Findings Leadership Gifts - We Are Witnessing:

19. Annual Fund Findings Trend Lines Increase in total leadership gifts: 70% (2011), 72% (2010), 19% (2009) Decrease in total leadership gifts: 5% (2011), 11% (2010), 52% (2009) On par with last year in total leadership gifts: 26% (2011), 17% (2010), 30% (2009) Leadership Gifts - We Are Witnessing:

20. Annual Fund Findings Compared to last fiscal year, I anticipate our Annual Fund dollars to be in the following range by the end of this current fiscal year :

21. Annual Fund Findings Compared to last fiscal year, I anticipate our Annual Fund dollars to be in the following range by the end of this current fiscal year : Trend Lines Level (no growth): 7% (2011), 5% (2010), 11% (2009) Decrease by 1-5%: 2% (2011), 5% (2010), 26% (2009) Decrease by 6-10%: 0% (2011), 5% (2010), 22% (2009) Decrease by more than 10%: 0% (2011), 0% (2010), 22% (2009) Increase by 1-5%: 51% (2011), 57% (2010), 7% (2009) Increase by 6-10%: 30% (2011), 24% (2010), 11% (2009) Increase by more than 10%: 9% (2011), 3% (2010), 0% (2009)

22. Annual Fund Findings In terms of our online gifts, we are witnessing:

23. Annual Fund Findings In terms of our online gifts, we are witnessing: Trend Lines An increase in the number of online gifts: 76% (2011), 78% (2010), 52% (2009) A decrease in the number of online gifts: 5% (2011), 8% (2010), 8% (2009) No change in the number of online gifts: 18% (2011), 14% (2010), 40% (2009)

24. Thank You! FUND-RAISING Rules of the Road to Success By: Jerry Smith, CFRE If you would like a Free copy of my book Please send your name and mailing address To: jerrysmith@jfsg.com or donnaharper@jfsg.com