Make New Friends, but Keep the Old!

During tough economic times, you may need to reach out to new friends to increase donor support. But before you do, consider these four key points.

1. Money follows loyalty. Organizations that continually demonstrate their gratitude and make donors feel they have contributed to successful outcomes can cultivate strong donor loyalty. In fact, a recent study by Bank of America, The Study of High Net-Worth Philanthropy (COP Indiana University, 2006), found that nearly 60 percent of the high net-worth individuals surveyed said they would give more to charity if they were able to determine the impact of their gifts.

2. Keeping friends is cost effective. A study sponsored by the Association for Fundraising Professionals, The Fundraising Effectiveness Project (AFP, 2007) showed that improvements in donor retention could dramatically improve nonprofits' fundraising revenue. The study found that in 2005, organizations experienced a 51 percent loss in fundraising revenue due to loss of previous donors.

3. Time and resources spent acquiring new donors can be significant. While an organization may attract donors to replace those lost, the relationships - and donor loyalty - take time to replace. As organizations already face losing donors due to challenging economic times, keeping current donors engaged becomes even more imperative.

4. History can determine the future. Most donors give to multiple causes. During an economic slowdown, given the choice of supporting an organization with which a donor has a history versus one he or she recently began supporting, most would direct their funds where they have a long-standing relationship.

In fundraising and in life, old friends are important when times are tough. Making sure your organization's time and resources are spent retaining current donors can help ensure a solid, consistent donor base, providing added stability during unstable times.

-Bridgette O'Connor, MSW, Vice President (Kansas City) BOConnor@hartsookcompanies.com

Another Smart Idea...From the Hartsook Best Practices Collection^SM

"We have students call every donor, over $5, and say 'thank you.' We tried to have the end user call the donor." - Dennis Buckley, Glens Falls Hospital Foundation (Glens Falls, NY)

If you are interested in Best Practices and smart ideas, see these additional resources from Hartsook Companies:

"Fundraising Magic - 33.5 Strategies for Turning Board Members into Money Makers" by Robert G. Swanson (2007, ASR Philanthropic Publishing). This book shares proven strategies you can implement immediately to give Board members the confidence and tools needed to cultivate donors, solicit gifts and strengthen your organization's position in the community. To order this book, follow this link http://www.ASRpublishing.com.
"Reality Fundraising: Proven, Practical Ideas for the Enlightened Fundraiser" by Bob Hartsook (2005, ASR Philanthropic Publishing). The book features great ideas, insights and lessons learned through hundreds of best practices from nonprofit professionals nationwide. To order the book, follow this link http://www.ASRpublishing.com.
"Best Practices Coast to Coast^SM," a compilation of best practices from every state in the union.
"Hartsook Best Practices Collection^SM," our original collection of 250 best practices and great ideas.

For a free copy of "Best Practices Coast to Coast^SM" or the "Hartsook Best Practices Collection^SM", please email Gretchen DiGiovanni, gretchen@hartsookcompanies.com, or visit our web site at http://www.hartsookcompanies.com/bestpractices2.shtml. We also invite you to contribute your own best practice by emailing Tami Druzba, tami@hartsookcompanies.com.

Interested in Speakers?

Hartsook consultants are available to speak to your organization on a variety of topics. To read more, visit http://www.hartsookcompanies.com/speak.shtml or email Tami Druzba at tami@hartsookcompanies.com to discuss the possibilities.

Visit the Hartsook Companies web site for:

• Educational opportunities
• Books/reference articles
• Conference/workshop speakers

Strategies for Success explores smart ideas, connecting with more than 1,500 fundraising professionals bi-weekly. We welcome your contributions or comments. If you'd like a free subscription to Strategies for Success - or its monthly companion, eHartsook on Philanthropy - contact Gretchen DiGiovanni, gretchen@hartsookcompanies.com. You also can reach her at 316.630.9992.

Our web site is located at http://www.hartsookcompanies.com.