“Culture” is ubiquitous, although that does not mean it is easy to define. Instead, “culture” presents a challenge when we try to change it without buy-in from essential stakeholders. Understanding that every organisation has a particular culture, whether or not stakeholders acknowledge it, is crucial in formulating a fundraising strategy. Before building or changing a “culture of philanthropy,” it may be helpful to refer to a few underlying assumptions about culture:
All organisations have it
It is a powerful source of communication inside and outside of the organisation
It can be detrimental if not aligned with the well-being of the institution
It can – and should – be measured.
Cultural Moves Management
Most of your organisation’s supporters are considered cultural “adopters” and tend to be the largest sub-group of supporters. They are passionate, reliable, and motivated by external and internal factors. A smaller group of your supporters are cultural “leaders,” who serve as visionaries and should be enlisted as cultural ambassadors. To continue their work in advocating the culture, cultural leaders in the organisation should receive ongoing stewardship for their support. Adopters, alternatively, can be transitioned into cultural leaders through ongoing investment and incentives.
Detractors of your organisation’s culture are most often “fence-sitters” – they tend to be passive, undecided, and sceptical. Fence-sitters are waiting to see what’s going to happen, so you want to avoid rewarding this behaviour. Instead, show them the benefits of joining and adopting the culture.
A smaller group are “naysayers,” who are oppositional, misinformed, or combative. Because they may have legitimate complaints, naysayers should have an opportunity to share grievances. Sometimes naysayers can even become cultural proponents, but other times, leaders may confront staunch opposition to change. In this instance, they should redirect the naysayers’ energy and avoid letting them set the agenda.
Regardless of where your stakeholders fall in cultural moves management, it’s critical to give them each the time and support needed to legitimise their experience and foster a sense of buy-in for your organisation’s success.
Key Takeaways
The objective of cultural moves management is to encourage detractors to become supporters. Key lessons from CCS’s practical experience of cultural moves management include:
Philanthropy must be rooted in the organisational culture to resonate with donors.
Leadership sets the foundation for positive overall and philanthropic culture.
Values must be communicated, early and often, to all stakeholders.
Measuring desired outcomes, like participation or elevated giving, will strengthen perceptions of culture.
So, how strong is your culture?
One simple test is to ask your essential stakeholders what your mission statement is. If they cannot recall, then it might be time to revisit how your organisation communicates its strategic vision. When your stakeholders can recite your mission without hesitation, that is good indication that your organisation is well on its way towards developing a culture of philanthropy.
GivingTuesday is a global day of generosity that takes place every year on the Tuesday after Thanksgiving. In 2019, GivingTuesday raised over $511 million in the U.S. This year, GivingTuesday launched GivingTuesdayNow on May 5 in response to emergency needs facing nonprofits due to COVID-19. GivingTuesdayNow created a sense of global unity in the face of the pandemic and raised over $503 million only six months after GivingTuesday 2019.
The annual giving day has gained significant attention due to its success and the power it has in mobilizing support from large segments of society. However, with the recent GivingTuesdayNow event and during a year of such irregular giving, many development professionals are wondering if they should participate in this year’s GivingTuesday. The guidance below can help your nonprofit make a thoughtful decision about whether or not to participate.
What have you done historically? If your organization has always participated in GivingTuesday, it might make sense to keep the tradition if your donors are expecting this touchpoint. If you plan on participating in future years, it is especially important to maintain continuity. However, you can get creative with this touchpoint. Rather than sending out a giving appeal, you may use it as an opportunity to thank your donors for their support, especially if you ran a GivingTuesdayNow campaign or if another fundraising event is upcoming.
Does a GivingTuesday campaign align with your strategy? Evaluate your strategic plan and whether an appeal makes sense at this time. If it feels arbitrary to you to run a GivingTuesday campaign, it likely feels that way to your donors. Consider other special dates that your organization can rally around that feel more meaningful. For example, holidays such as Veteran’s Day or Native American Heritage Day may align better with your mission and feel more authentic to your donors.
How does GivingTuesday fit into your events and communications calendar? With year-end appeals, quarterly renewals, annual benefits, and the holidays quickly approaching, your calendar is likely already packed with events and outreach. If GivingTuesday falls at an inopportune time on your organization’s calendar, there could be opportunities for synergy between the giving day and your other activities. For example, if GivingTuesday occurs during the same week as your virtual gala, you can leverage the giving day as a marketing tool for the annual gala, rather than squeezing in an additional appeal.
How large is your organization? GivingTuesday is particularly well-suited for organizations with limited brand recognition. By harnessing GivingTuesday’s global social media presence, smaller nonprofits can quickly engage larger audiences and create a sense of collaboration and community around their mission. Donors and supporters will be encouraged to share posts and “tag” nonprofits they support, expanding an organization’s reach.
Do you have an important story to share? GivingTuesday is an opportunity for organizations to tell a story in new and engaging ways through creative posts and videos. The more creative and engaging the post, the more likely it is to be re-shared, thus increasing awareness around a nonprofit’s mission.
Are you looking to elevate your culture of philanthropy? GivingTuesday is good for more than just raising dollars. Staff members, board members, and volunteers will have an opportunity to advocate for your organization by sharing posts and inviting others to give. If you recognize an improvement opportunity in your organization’s culture of philanthropy, consider participating in GivingTuesday.
Does your organization have the capacity and resources to effectively run an additional campaign? Your organization should evaluate its staff capacity and resources before taking on an additional campaign during a busy time of year. Though a GivingTuesday campaign often leverages organic content and the movement of a hashtag, it will still require thorough planning, execution, and follow-through to be successful. If your resources are stretched due to other obligations, your GivingTuesday campaign may present as not thoughtful or incomplete.
This month we spoke with Trisha Tanner, Vice President for Development at CEU, about fundraising through crises and the University’s plans for ramping up activity this autumn. CEU – a private American university in Budapest and Vienna – is experienced in persevering through difficult times. In 2017, CEU was targeted for expulsion from Hungary through legislative changes commonly known as “lex CEU.” As a result, the University was forced to transition its teaching operation to Vienna. CEU’s fundraising ramp-up is part of the preparatory phase of a five-year campaign in support of the University’s work in Austria, Hungary, and around the world.
Q: What has CEU’s experience with lex CEU, and more recently with COVID-19, taught you about fundraising in challenging times?
A: In a crisis, you learn a lot about what your organisation means to others. After the lex CEU decision, we were awed by the outpouring of support. Thousands took to the streets, wrote letters, and signed petitions. Many also shared personal stories about why CEU matters. This strengthened our resolve. The silver lining of the threat to our academic freedom was that CEU’s global recognition soared. We were able to strengthen ties with our alumni and dramatically expand our sphere of influence. When COVID-19 hit, these ties became even more important. Supporters, many of whom had never made a gift, provided emergency assistance, including funding for technology, housing, and basic necessities for our students.
My mother always said, “you don’t know until you ask.” When fundraising through a crisis, it is critical that fundraisers not assume what a donor may be thinking. Instead, have open conversations with supporters about your organisational needs, and don’t be afraid to invite the help you need. In this pandemic, people are feeling powerless and uncertain. Philanthropy gives them a chance to make a real difference, so your ‘ask’ may come as a welcome opportunity. I also try to remember that people are often more generous when presented with an acute need.
Q: What new strategies or approaches is CEU taking to ramp up fundraising activity this autumn?
A: This autumn, our focus is on frequent and open communication, including personal outreach, virtual engagement, and regular stakeholder updates from the University. Our advancement team is finding ways to involve donors and potential supporters in ways that are meaningful to them – whether serving on an Advisory Board or participating in a focus group. We are also ramping up research and outreach to engage new prospective donors. We believe that the prospecting we do today will be critical as we build a new permanent campus in Vienna, starting in 2023. For CEU, this includes taking a fresh look at alumni who have progressed in their careers and may be ready for deeper engagement.
We also plan to offer more online events and group briefings, following up on feedback from a set of virtual town halls held over summer. For example, we’re expanding our annual Philanthropy Week into a year-long series focused on building the culture of philanthropy within our institution and across the Central European region.
Finally, we are refining our campaign case for support. We want to be bolder, more focused on impact, and more direct. In an environment where every worthy cause has serious needs, we want our message – of education empowering democracy and freedom – to resonate more strongly than ever before.
There might be other emerging needs in the community that are now a priority for your organization. How can you adapt your response fund to address new funding areas and fit into your long-term development strategy?
The Mini Fundraising Campaign: Case, Leadership, Prospects, and Plan
Based on our experience helping numerous organizations navigate this situation, CCS offers a framework for organizational and fundraising leaders to think through refocusing fundraising efforts, while still communicating a clear and compelling story of your organization’s immediate needs. Thinking of your efforts like a mini fundraising campaign can be a useful technique for pivoting your response fund effectively.
Keep in mind that every fundraising initiative, from emergency/immediate response funds to capital or comprehensive campaigns, offers different funding opportunities that may appeal to different groups of supporters. The messaging for each funding area and audience warrants a customized and thoughtful approach.
1) Case for Support
Your case for support should clearly outline the need and discuss the priorities that a donor’s gift will support. It is important to understand why your organization is choosing to embark on this initiative now in order to share the sense of urgency with donors. If you are considering pivoting to a new funding focus area, allow the lessons you learned from the past six months to inform your messaging strategy.
Before (re)drafting your case for support, consider the following:
How has the need for an emergency response fund or special appeal changed or evolved since the onset of the pandemic?
Why now and why this initiative?
What is the impact of one’s gift?
What feedback did you receive from key supporters or volunteers on your initial case messaging? What resonated?
Are there testimonials you can use to help tell your story?
2) Leadership
Engage board members, volunteers, and key community members to help tell your story. These advocates can share the immediate needs of your organization with those in their network and communicate the impact this effort can have on your organization and the greater community. Your board members can serve as key thought partners and lead any near-term efforts.
Consider leveraging your organization’s leadership network, both internal and external, to raise donor sights, accelerate the pace of giving, and inspire others to join. The idea that “generosity is contagious” has proven true even in these challenging times.
Who can be an advocate and champion for the case you are developing?
Is there a matching gift challenge that you can establish for key volunteers and community leaders to engage in?
What existing volunteers or community leaders can help be the voice for your campaign?
3) Prospects
Previous donors to your organization are always your best prospects. However, your current priorities or emerging needs might not appeal to your entire donor base. Think strategically on how the current case for support relates to different prospects. How might the needs of the organization mesh with a donor’s philanthropic interests?
It is important to ensure you are transparent with your donors and continuously steward the relationship to avoid donor fatigue. Continue to explore interests of your prospects through personal conversations. Use these exploratory conversations as an opportunity to test the case for support messaging.
Are you communicating with donors outside of an ask?
Are the prospective donors for this mini fundraising campaign the same or different from your initial immediate response fund prospects?
Is there an opportunity to further segment your current donors to better fit this initiative?
Are there links between this initiative and the last that may pique the interest of those same donors?
Are there lapsed donors that have supported similar initiatives/focus areas that you could consider?
4) Plan
Now that your message is solidified, when and how should your organization shift its messaging and fundraising focus? It is important to build out a distinct project plan to achieve the fundraising goal you have set forth. Your plan should help prioritize aspects of your fundraising campaign, maintain momentum, and ensure your team is set up for success.
When developing your fundraising plan, consider the following:
How long will this mini campaign last?
Is there a specific goal to be set? Either participation or dollar based?
What is your comprehensive communications plan?
Is there a specific individual or group of people that can manage this effort?
Have you received board or leadership buy-in before launching into this initiative?
What creative ways can you increase awareness and engage the broader community?
Video messages from leadership
Matching gift challenges
Testimonials
Social media campaign
Case Study: Cuyahoga Community College (Tri-C)
Image Courtesy of Cuyahoga Community College (Tri-C)
CCS client partner Cuyahoga Community College (Tri-C) used the framework above to successfully guide and reposition their immediate assistance fund.
Tri-C is Ohio’s first community college and remains Ohio’s oldest and largest public community college. For more than 50 years, Tri-C has provided high quality, affordable education and training programs to more than 900,000 members of the community. Tri-C empowers students to complete their education in a timely manner and prepares students to prosper in the new global economy.
In March 2020, Tri-C recognized the deep impact the COVID-19 crisis was having on students’ personal lives. Accordingly, the college quickly focused their fundraising efforts on their Student Emergency Fund, which helped meet the immediate needs of students by providing resources and technology for successful remote learning. The Student Emergency Fund was established in 2017, but it received limited attention up until COVID-19 when donors began to understand how this fund was different from student scholarships.
The Fund received an overwhelmingly positive response from donors and community members. Tri-C engaged key volunteers and community members through Giving Tuesday Now and various matching gift challenges. As a result of tactics like these, the college was able to award more than $255,000 in student emergency funds. Moreover, through partnerships with community organizations like PCs for People, Tri-C distributed over 600 computers for at-home learning.
While providing virtual learning assistance for students remained an important charge as spring turned to summer, it became clear to Tri-C that amid the ongoing pandemic and social unrest in the country, their institution had the power to drive change and empower the community in a larger way.
Tri-C has since developed a new funding focus of enhancing and expanding the training that Tri-C offers to first responders to help them best serve the residents they’ve sworn to protect and care for. Student Emergency Fund and technology resources are still top of mind, but the key messaging has shifted. Tri-C’s current strategy is to reach out to key volunteers, community members, and donors to make a gift to support “Tri-C Responds” and the emerging immediate needs of Northeast Ohio. This new funding push resonates with the role Tri-C plays in being the “community’s college,” while meeting the immediate needs of the community, setting an example for what an equitable and inclusive community should look like, and ensuring that our future is better for all.
Conclusion
Tri-C is just one example of how organizations across the country that successfully implemented COVID-19 immediate response funds are now adapting their efforts to an evolving reality. When nonprofits consider how to pivot their fundraising efforts, it is important to ensure that the revised message speaks to the new and unique challenges that the community is facing in and outside of the pandemic.
In our 70-plus years of advising nonprofit institutions, CCS has observed that donors are eager to give when an organization makes an immediate commitment to the community that will have a long-term impact. Regardless of the unique situation you are facing, embrace the opportunity to shift your message or consider a new special appeal where appropriate. In an ever-changing world, your organizational priorities will likely continue to evolve. Evaluating your case, leadership, prospects, and plan will help keep your donors engaged through these shifts and beyond.
To access our full suite of perspectives, publications, and reports, visit our insights page and Strategies During COVID-19 resources page. To learn more about CCS Fundraising’s suite of services, click here.
The first two installments of CCS Fundraising’s Philanthropic Climate Survey series in May and June 2020 documented the immediate effects of a crisis in nonprofit fundraising. Our third-edition survey conducted from September 9 to September 16, 2020 provides a window into a nonprofit sector that—at this point, half a year into the global pandemic—has moved past the initial onset of crisis and into adapting to a “new normal.”
The Pandemic’s Changing Impact on Nonprofit Fundraising
Our September survey results, comprised of responses from nearly 1,400 individuals representing nonprofits of all major subsectors, show that although the pandemic has brought widespread fundraising challenges, its negative impact on fundraising has lessened over time.
In our most recent survey, 53% of respondents reported that the pandemic has led to a decline in fundraising at their organization. As illustrated in the graph below, the proportion of respondents saying that they experienced a decline has decreased markedly from a height of 63% in May. Moreover, the proportion of respondents reporting a fundraising increase amid the pandemic has doubled since May, rising from 14% to 28%.
Though fundraising outcomes are growing more positive in the aggregate, improvements are felt unevenly across subsectors. Nonprofits hard hit by lockdowns and social distancing measures, like performing arts organizations and cultural institutions, are unsurprisingly more likely to report negative effects, with 73% and 67% of respondents respectively reporting a decline so far. On the other end of the spectrum, 45% of respondents from human and social service organizations reported a fundraising increase amid the pandemic—the highest rate of all major subsectors represented in our survey.
Our survey results show that the vast majority (74%) of respondents have not laid off fundraising staff as of September. There was a slight uptick in hiring since June, with 7% of respondents saying that they added fundraising staff. Overall reports of layoffs and furloughs increased in September, though the size of individual layoff and furlough events may be growing smaller on average: a greater proportion of these staff reductions were deemed “modest” rather than “significant” in comparison to May and June numbers. Moreover, our data suggest that nonprofits may be less likely to conduct future layoffs and furloughs now than in previous months, with only 3% of respondents reporting that staff reductions are “under consideration” in September compared to 8% in June and 10% in May.
The Evolving Response of Nonprofit Professionals
As the pandemic continues, our data suggest that virtual donor engagement methods are becoming more and more prominent in nonprofit fundraising operations. In September, a combined 44% of respondents reported that they held some sort of online fundraising event to date, up from 31% in June. As demonstrated in the chart below, this 13-percentage-point increase was almost exclusively driven by survey respondents converting previously planned galas, dinners, and other fundraisers to a new virtual format, as opposed to creating new virtual events.
As a positive indicator for the future of fundraising in an increasingly virtual world, our latest survey results suggested relatively widespread comfort with virtual solicitations at the major gift level. So far, 43% of survey respondents have conducted a virtual major gift solicitation. Phone and video methods are about equally popular for conducting these requests, as shown in the chart below. Moreover, another 29% of respondents are considering a virtual major gift ask, contributing to a combined total of more than 70% of respondents who have either already solicited a major gift virtually or are considering doing so.
To access our full suite of perspectives, publications, and reports, visit our insights page. To learn more about CCS Fundraising’s suite of services, click here.
Your fundraising campaign’s success is not only about funds raised, but also about the ongoing accomplishments that keep your team feeling positive and motivated. Celebrating small wins in fundraising is important for building momentum, instilling confidence, and establishing a successful path forward to reaching your big goals.
Achieving this kind of incremental success cannot be overlooked. Especially now, when so many organisations are facing adversity, there are things you can do right away to ensure your campaign keeps moving forward.
Three Ways to Achieve Small Wins
Rallying your internal support
Building a sense of ownership, trust, and empowerment among organisational leaders is an important accomplishment to celebrate at the outset of and throughout a campaign. Knowing that your people support fundraising efforts inspires greater confidence among campaign leaders and volunteers who are driving activity forward.
Instilling confidence amongst your key insiders can be accomplished in the following ways.
Be transparent and communicate often. Host monthly update meetings with staff, send newsletters or other forms of consistent communication about campaign progress and success, and create opportunities to discuss challenges and frustrations so lines of communication are always open. This will establish trust and confidence and open the door to internal advocates for your campaign that will build greater momentum for the campaign.
Look inward and create structure on your team. Creating and clearly communicating roles for each person will create a sense of collective ownership, which becomes a much larger win for the organisation as whole.
Highlight accomplishments at the next staff meeting. Publicly acknowledging the good work of staff, volunteers and leaders to advance fundraising efforts. Celebrating small successes is key to creating a winning culture and can help create an energised and excited team even during the hardest times.
Updating your prospect pipeline
Campaigns are also about building and maintaining relationships with donors. While organisations often focus on a specific targeted list of prospects, a campaign is also an opportunity to identify new individuals who share a commitment to an organisation’s mission.
By reviewing and updating your prospect pipeline, you give your team confidence in knowing that they are spending time on the right donors. During challenging times, any update to the pipeline is a great way to get the ball rolling again and each new prospect is a new opportunity to increase donations, set both staff and donor sights higher, and engage a broader community that may include future leaders.
Once a prospect is in the pipeline, celebrate every move throughout the donor engagement process as a small win toward greater success.
Setting yourself up for a big win
Organisations often celebrate a completed request visit because it means they are one step closer to a gift. While this is an exciting moment, the hard work that goes into the preparation for these visits often goes unacknowledged.
As you plan for a transformational request, acknowledge each task as a small win and share your progress with your team. Over time, you will notice your leaders become more prepared for and confident when conducting requests, which often yields higher returns on requests. This is an example of how incremental success can lead to overall success.
Getting Started Today
Ask yourself: What do I have to look forward to tomorrow? What will we accomplish next week? How can we build on next week’s win?
When answering these questions, keep in mind that small wins illuminate progress and demonstrates success. This helps to motivate everyone involved and sets your people up to produce results.
This report details the results of CCS’s third Philanthropic Climate Survey installment, which collected data from nearly 1,400 individuals representing nonprofits of all sectors.
New data from a large-scale CCS Fundraising survey of nonprofit organizations suggests that the philanthropic landscape has improved markedly thanks in part to innovative approaches to fundraising.
New results from CCS’s Philanthropic Climate Survey show that the pandemic’s negative effects on fundraising are growing less severe over time as nonprofits embrace virtual methods of donor cultivation and solicitation.
Most nonprofits have moved forward with major fundraising efforts—with appropriate modifications—despite the impact of the current global health pandemic, according to a new CCS Fundraising study.
The racial equity movement has occasioned meaningful and unparalleled reflection, discourse, and action within the nonprofit and philanthropic sector.
According to CCS Fundraising’s internal analysis of domestic trends, over $3.67 billion was publicly donated to racial equity and related causes in the weeks following the killing of George Floyd. This sum rivals the $3.7 billion in publicly reported U.S. donations to COVID-19. Philanthropy of this scale will create enduring changes in communities from coast to coast.
To understand more about the local perspective and mark the release of Giving USA 2020: The Annual Report on Philanthropy, CCS Fundraising hosted conversations across the nation with regional leaders and experts in the field. Throughout our panel discussions in the Northeast, we heard three emerging trends:
Donors and nonprofit professionals have a renewed commitment to the systems-change impact model
Corporations are supporting local communities in unprecedented ways
Individuals continue to be a large source of support for critical funding needs
Philanthropy is Focusing on Systems Change
Philanthropists have always had to decide whether their funding should support short-term activity-based projects or long-term systems-change projects. Historically, funding has predominantly supported the former; in a report released by McKinsey earlier this year, more than 70% of funders were found to actively discourage systems-change approaches through methods like restrictive funding and program requirements.
However, recent events have shed a light on the systemic and long-term implications of the COVID-19 pandemic on marginalized communities. Dr. Myechia Minter-Jordan, Board Member of the Boston Foundation and President and CEO of DentaQuest Partnership for Oral Health Advancement and Catalyst Institute, encouraged panel attendees to embrace this shift towards a systems-change mindset. “It focuses less on serving the immediate issue at hand, but rather why the issue might exist in the first place and what systems created them,” Dr. Minter-Jordan said. “We need to understand the processes that inform the systems through educating ourselves. In terms of the bigger picture, we can further our understanding by looking at the local level and paying attention to grassroots organizations. It is important we engage people along the way, too, with realistic expectations. If we can make change at the core, we will see the most progress.”
Corporations are Stepping Up
Some of America’s largest corporations are stepping up to help overcome the economic and healthcare disadvantages faced by marginalized communities.
2019 was a record year for corporate philanthropy, which experienced a 13% growth rate. More recently, corporations have made unprecedented gifts toward the racial justice movement. Bank of America is among the most notable corporate donors, pledging $1 billion over four years to support economic and racial inequities accelerated by the COVID-19 pandemic.
Bill Hatfield, Rhode Island Market President of Bank of America, spoke about the future of corporate giving during our panel. “There remains a very significant opportunity for businesses to collaborate at the local level and ensure that they are aligned to key community needs,” said Hatfield. “Business has to play a bigger role. It has to be more influential and needs to be at the table with greater level of contribution to support the change that is needed.”
Individuals Continue to Drive Giving
During times of crisis, major corporate and foundation gifts are prominently announced and featured. That generosity is to be celebrated, but the data shows us that, historically, individual giving drives philanthropy and is an important way that many people express their values. A recent survey from Gallup noted that 73% of Americans reported giving to charity last year, which is more engagement than in almost any other civic activity – including voting.
This moment is no different, as we see individuals educating themselves and donating to causes related to race and marginalization, including economic opportunity, housing, healthcare (including mental health programs), food security, education, and many others.
There has been over $157 million in crowd-sourced grassroots funding from tens of millions of individuals via the internet, as well as single, large-sum contributions such as the $120 million gift made by Reed Hastings, Netflix CEO, to support the United Negro College Fund, Spelman College, and Morehouse College.
Dan Crewe, philanthropist and President of The Bob Crewe Foundation, has led the way for philanthropists in Maine looking to learn and lead. “I’m fortunate to sit on the boards of Maine College of Art, USM Foundation, Portland Symphony Orchestra, and the ACLU of Maine. A few years ago, some of my acquaintances and I entered into discussions that opened my eyes to my own life of privilege. When I read Ibram X. Kendi’s book, How to be an Anti-Racist, I realized how much I had never known,” said Crewe. “White society is in an awakening. How does this affect what we’re doing? We have supported communities of color in an indirect way through the arts, but now we are taking a closer look at how to be open to new ways to participate in this societal change.”
Looking Ahead
For those of us who work in the non-profit sector, the events of recent months have highlighted that our missions are more important and more urgent than ever. In past moments of crisis, uncertainty, and societal change, we’ve seen that philanthropy is both resilient and responsive.
CCS interviews thousands of donors around the world each year on behalf of our clients. The number one reason – consistently – that people say they give is to make an impact. This reason consistently ranks above tax benefits, moral/religious obligation, or a sense of duty to their community. During this time of physical distancing, now is the moment to stay connected with your donors, welcome them into the challenging conversations, and invite them to make an impact through and with your organization.
To access our full suite of perspectives, publications, and reports, visit our insights page. To learn more about CCS Fundraising’s suite of services, click here.
Join fellow thought leaders and colleagues as we navigate the principles of fundraising, collaborate on how to pivot your annual fund for FY2021, investigate how data analytics could help uncover potential within your pipeline, and share examples of creative ways to engage your alumni. In the time of navigating this new normal, creativity and innovation are going to lead us to survive and thrive.
SESSION 1
Principles of Fundraising at Independent Schools: Navigating the Challenges Presented by COVID-19
Wednesday, July 22 , 2020
The impact of the COVID-19 pandemic will be far-reaching and independent schools will look dramatically different in its aftermath. What can we anticipate in terms of the short-term and long-term impact on philanthropy? How will this affect your fundraising results through 2020 and beyond? What steps can and should you take now to come out of this crisis well-positioned to take advantage of the opportunities a post-COVID-19 world will provide? How can we create a narrative for donor engagement today that strikes the right tone of optimism and immediate need? These are just a few of the questions that were explored in this session designed to arm you with helpful tools to navigate these uncharted and choppy seas. Presented by CCS Vice President Julie Siebel and Executive Director Catherine Sun, in partnership with Sam Cieplicki from Phoenix Country Day School.
How well connected are you with your community? Parent and alumni loyalty to the school is strong while they are attending. If identified and managed correctly, this loyalty offers opportunities to connect after graduation. Despite the impact of the COVID-19 pandemic, independent schools still need to cultivate and steward their donors for organizational sustainability and even growth. Yet with so many other tasks, how do you prioritize this crucial work? Using knowledge about your community to identify engagement patterns can help uncover the hidden gems within your prospect pool. Prospect management has evolved into a highly strategic and critical element for any organization looking to fully understand the scope of wealth, interests, and relationships within their own communities. This session explores how to analyze and differentiate critical data points within your community and use these to launch a robust prospect engagement plan. We share proven solutions and a prospect matrix tool to uncover hidden prospects, prioritize your best possible donors, and build systems and plans that will only serve to advance your philanthropic efforts during this current crisis and when we emerge from it. Presented by CCS Vice President Julie Siebel and Executive Director Catherine Sun.
As you have completed the 2019-2020 school year, how are you positioning your fundraising strategy to meet your annual fund goals? How have you pivoted to keep fundraising momentum for your annual fund? Explore these questions and more in this guided discussion. Presented by CCS Senior Vice President Aashika Patel and Vice President Blake Reiser.
In the best of times, alumni engagement for independent schools is a tough mountain to climb. We are all challenged to create a robust engagement program that provides a growing philanthropic income stream with limited resources and for alumni who may not prioritize our schools in their charitable giving. How can we preserve the alumni gains we have made and continue to develop meaningful relationships (steward/cultivate) with alumni during a time when the bulk of our engagement tactics must change? These questions and more will be answered in this engaging session presented by CCS Senior Vice President Aashika Patel and Vice President Julie Siebel, in partnership with Jennifer Johnson from Chandler School.
Endowments have long been an important tool for arts and culture organizations to promote financial stability and growth in their community. As nonprofits continue to shift programming and strategy in light of COVID-19, CCS finds that 36% of cultural organizations and 56% of performing arts organizations are anticipating a significant decline in their fundraising in the short and medium term. Endowments are not the only component that promotes organizational stability during or following a crisis; however, they provide an important income stream when other earned revenues may have ceased. To illustrate how important endowments are, the Chicago Tribune spoke with leadership of local arts organizations to learn what the pandemic means for their endowments.
Endowment Growth
As organizations navigate the “Great Reset,” arts and culture leaders should consider implementing a five to ten-year endowment growth strategy, aiming for endowment totals that are eight to ten times their annual expenses. This type of transformational support will allow arts and culture organizations to move forward from a survival-mode mindset into the world of measurable sustainability. Because of this, leaders can and should initiate the process today.
You may be thinking – how could we possibly focus on building our endowment when we are trying to keep our donors contributing to the annual fund? The necessity to engage with your donors to secure immediate support should be the priority of the organization as you navigate moments of crisis. However, the elements of these conversations with your donors will be important first steps for future conversations as organizations embrace the new normal. In this post, we offer thoughts on how to engage and educate your board, lead donors, and artistic personnel on the importance of endowments as you explore this strategy.
Begin Conversations with Board Leadership First
For arts and culture organizations that have smaller endowments, having the “endowment talk” with board members may prove difficult. Some individuals believe endowment strategy shuts out funds that could be used immediately to solve budget short-falls or enhance upcoming programs. These early objections from board members provide an opportunity to educate them on the long-term benefits of endowment growth, such as:
A well invested endowment will allow an organization to draw about five percent annually from the fund to offset operational expenses in perpetuity, barring any specified fund restrictions. For example, an organization with an endowment of $5,000,000 may be able to draw $250,000 a year to support its annual programs.
Endowments provide the flexibility for organizations to explore expanded programming and artistic risks. With the presence of a well-funded endowment, arts organizations can be more thoughtful about ticketing strategies, artistic commissions, acquisitions, community partnerships, and the like.
While allowing for artistic flexibility during stable periods, endowments also allow for stability during uncertain times. This uncertainty can be seen internally during times of leadership change, or externally during crises such as COVID-19.
In addition to educating your board about the importance of endowment growth for the future of the organization, building support with your lead donors is equally important. Consider a virtual lunch-and-learn on the topic of endowments as an effective first step in engaging your donors in these early conversations. The conversation can be framed in this spirit:
“We are cognizant of and are working diligently to address the current issues we are facing. Ever more important, we want to be forward looking in how we emerge and grow in this new normal. As such, we are thinking deeply about the role our endowment plays in our organization today, and how the endowment can support this growth 5-10 years in the future. “
We recommend outlining the same concepts above with your administrative staff as well as your artistic personnel – creating a unified vision across your nonprofit. Musicians and artists want to hear more about what the organization is doing in both the short- and long-term to stabilize, strengthen, and support its work. Beginning these conversations now will build their knowledge and support surrounding the endowment. Many vocal advocates will be crucial if your organization considers a formal endowment campaign in the future. Musicians, artists, and performers are the face of your organization. When they can say, “We believe in the future of our symphony and we know that our leadership is thinking long-term,” the community will follow.
Prepare to Build Your Endowment with Four Key Action Steps
It is worth noting again, we believe that immediate engagement with your donors is imperative to the short-term challenges due to COVID-19. CCS Fundraising has many client partners today who are taking a multifaceted approach in addressing current challenges while positioning for a sustainable future. While the above recommendations will be ongoing efforts, here are four steps you can take today:
Peer Benchmarking – Explore the endowment landscape that exists in your own community and in your specific sector nationally. Are you a symphony orchestra in a mid-size city with an arts museum up the street? How does the size of its fund compare to the size of your orchestra’s? Similarly, if you are a mid-size orchestra, what trends and similarities can be seen at similarly sized organizations? This landscaping information is going to provide you with valuable insight to support your conversations with board members, staff, and artistic leadership.
Review Gift Acceptance Policies – CCS recommends that organizations revisit gift acceptance policies to better understand how they are supporting growth in the endowment. Specifically, we have found that arts and culture organizations who designate all bequests to the Endowment Fund see a quicker rise in fund totals. Additionally, this encourages organizations to reduce reliance on bequests to cover annual budget short falls.
Consider Special Endowment Requests – In addition to your normal annual gift or campaign gift request, you may consider adding 10% above the annual request amount towards the endowment. This can be used as a guidepost and will begin shaping the giving environment in preparation of an endowment campaign. For example, if you have an annual request of an individual at the $10,000 level, invite them to consider an additional gift of $1,000 – $1,500 to the endowment.
Explore Named Gifts – A practice that has been embraced by higher education institutions and larger arts organizations is the employment of “endowed chairs.” Specifically in the arts and culture sector, this is a unique “naming opportunity” for the highest visible artistic positions in the organization. Consider endowing the Music Director Role, or your chief curator’s position. An important note: it has long been accepted to name these positions in perpetuity. This practice limits the organization’s ability to expand donor naming abilities in the future. CCS recommends considering naming agreements of 20-30 years.
CCS Fundraising is a strategic fundraising consulting firm that partners with nonprofits for transformational change. Members of the CCS team are highly experienced and knowledgeable across sectors, disciplines, and regions. With offices throughout the United States and the world, our unique, customized approach provides each client with an embedded team member for the duration of the engagement. To access our full suite of perspectives, publications, and reports, visit our insights page. To learn more about CCS Fundraising’s suite of services, click here.
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This month we spoke with Trisha Tanner, Vice President for Development at CEU, about fundraising through crises and the University’s plans for ramping up activity this autumn. CEU – a private American university in Budapest and Vienna – is experienced in persevering through difficult times. In 2017, CEU was targeted for expulsion from Hungary through legislative changes commonly known as “lex CEU.” As a result, the University was forced to transition its teaching operation to Vienna. CEU’s fundraising ramp-up is part of the preparatory phase of a five-year campaign in support of the University’s work in Austria, Hungary, and around the world.
