The NonProfit Times - January 15, 2008 - (Page 10)

FUNDRAISING TOM GAFFNY OLD WAY Organizational Philosophy/structure Fragmented; competitive Multiple Channels/businesses ultimately overseen by the individual department head Short-term: reaching this year’s goal ‘Channel owners’ judged by the results from their channel Short-term focus: revenue/ net revenue generated by the channel “Owned” by the channel which acquired record WIIFM (What’s In It For Me): developed and launched by individual businesses One Big Family That’s what tomorrow will look like NEW WAY Holistic; collaborative T here are three questions that haunt fundraisers. First, where is our charity going to get younger donors? Second, if email is so inexpensive, why can’t we just send that and nothing else? And third, what is your vision for fundraising in the next five years? Do these sound familiar? While the first two questions are the most prevalent, the third question really represents the Holy Grail of marketing opportunity in the decade ahead. To wit, are there ways to now structure a marketing group to dramatically expand your constituent base (including younger supporters), dramatically expand my revenue producing channels (including email), and integrate it all in ways that dramatically drives revenue growth? In other words, how can you structure yourself to realize optimium success? There are methods.But it’s going to require dramatic changes in how nonprofits view their constituents, and align themselves to optimize success. There is a philosophical shift happening in fundraising, one that will force marketing departments to change their structure, reporting alignments, and measurements of success. This shift is along multiple dimensions (See Chart A). As the chart shows, fundraising organizations will evolve from their current model (highly fragmented and competitive,“success” based on the results generated by each individual business owner, a left hand/right hand constituent-relationship strategy which is confusing to the customer) to a more integrated and holistic approach. In the new approach, the cause-related marketing owner is ultimately responsible for overseeing all parts, strategically integrating all resources, and creating a constituentcentric communications approach which maximizes the interests and value of every person on the database. While this might sound simplistic, it’s easier said than done. Over the years, many nonprofits have, with all good intentions, created fundraising departments which resemble a mix of separate businesses – oftentimes competitive businesses. The departments Organizational Philosophy/structure Focus Integrated Channels/businesses overseen by one CRM head Long-term: building for the long-term Channel owners judged by the results generated by the entire enterprise Long-term view: overall value (revenue + ‘non financial value’) generated by the constituent Owned by all channels WIIFU (What’s In It For Us): developed by CRM head, after weighing enterprise options; launched by individual businesses Interdependent: one common Communications Plan shared by all channels/businesses. Touches driven by what makes the most sense for the constituent Constituent-centric: about the constituent’s interests, and what appeals to donors Measurement of Success Measurement Metric Data records Strategic Initiatives Touchpoint Philosophy Independent: communications launched when it makes most sense for the Individual channel/business Organization-centric: about our needs and what interests us Communications Philosophy Chart A fight tooth and nail for the same constituent -- the planned-giving business, the direct mail business, the special event business, the online business, and so on.And because each of these “separate businesses” is measured by how much revenue they generate on their own, it stands to reason that these businesses are generally unwilling to share their best names, their best ideas, their best creative learnings, with their “competition” down REGISTER AT THE EARLY-BIRD RATE AND SAVE! STAND & DELIVER: Fundraising in a Changing World 2008 Annual Washington Nonproﬁt Conference January 24 – 25, 2008 | JW Marriott | Washington, DC Special Pre-Conference Workshops on January 23 Revitalize your direct marketing and fundraising campaigns at this year’s conference. You’ll hear insightful, leading-edge sessions, such as: • Win or Lose: Beating the Unbeatable Acquisition Control • How to Break Through the “Noise” and Engage Your Donor • Mid-Level Donors: How to Get’ em, Grow ’em, and Keep ’em • Beyond RFM Segmentation • Beyond the Sizzle: Practical Uses of Emerging Technologies • Data Smackdown: DM vs. the Net To register or for more information, visit www.nonproﬁtfederation.org Please mention XNPNOV when registering. 10 JANUARY 15, 2008 THE NONPROFIT TIMES www.nptimes.com http://www.nonprofitfederation.org http://www.nonprofitfederation.org http://www.nptimes.com

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The NonProfit Times - January 15, 2008 The World's Best Fundraisers On the Road Contents Lists: Election Cycles Donors: High Gift Versus Recent Gift Burnt Offerings: Thank You, Please Fundraising: One Big Family Travel Guide NPT Jobs Resource Directory

The NonProfit Times - January 15, 2008

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