The Power of Philanthropy

The economy's tightening. Signs are everywhere.

After topping $4 a gallon earlier this summer, gas prices continue to hover around $3.50. Homes are selling slowly. Loans are hard to come by. And last week, the sale of Merrill Lynch and the federal government's bailout of insurance giant AIG sank the Dow Jones Industrial Average 25 percent.

There's plenty to get you down. But there's also reason to hope.

Philanthropy climbed from $295 billion in 2006 to $307 billion in 2007, an increase of more than four percent. What's even more significant is that the jump, which occurred in a year when many began feeling the press of a tightening economy, happened despite Warren Buffet's $31 million gift the previous year to the Bill and Melinda Gates Foundation.

If philanthropy is available and growing, how do nonprofit organizations get their fare share? By sticking to the basics.

First, remember your organization's mission. Emphasize benefits over features by inviting donors and prospects to give to the differences they make in people's lives, not the organization's budgetary needs or financial shortfalls.
Second, ask your best donors to give more. Annually, nonprofits should personally and thoughtfully invite the top 10 percent of their supporters to give more than they did the previous year. And remember - emphasize benefits over features.
Third, ask supporters to introduce your organization to new prospects. The surest path to new donors is paved by those who already give.
Fourth, live by the numbers. Research tells us that individuals give 85 percent of all charitable gifts - not corporations or foundations - and that 15 percent of all donors are responsible for 85 percent of all philanthropy. Let these metrics guide your fundraising.
Finally, build champions. Nonprofits need people who place their livelihoods above nearly everything else, save themselves and their families. Such advocates help nonprofit organizations exceed their goals and lead them to others who care about their missions.

Many will point in the coming weeks to a darkening economy as cause for skepticism and doubt. And while it's true the economy is tightening, our commitment to improving the lives of those around us has always proven stronger and more resilient than any challenge we've faced.

Believe what you will, but know I'm betting on a bright future. You're welcome to join me.

- Matthew J. Beem, MPA, CFRE (Kansas City) matt@hartsookcompanies.com

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

"Use the 'Five-I' process to cultivate donors: Identify the prospect. Gather Information. Determine Interest. Encourage Involvement. Secure Investment. Do these in order; don't make the mistake of jumping from the first 'I' to the last." - Duane L. Dyer, ThM, Hartsook Companies, Inc. (San Francisco, Calif.)

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

Bob Hartsook's first book, "Closing That Gift!" is now in its fourth printing. Reviewers have said "impressive...an important hands-on guide...serious fundraisers won't just read this book, they'll use it every day." Available for $15 (plus $3 S&H) through ASR Philanthropic Publishing by calling toll-free 1-866-630-8500.
"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" or the "Hartsook Best Practices Collection", please email Gretchen DiGiovanni, gretchen@hartsookcompanies.com, or visit our web site at http://www.hartsookcompanies.com. We also invite you to contribute your own best practice by emailing Tami Druzba, tami@hartsookcompanies.com.

Career Booster!

Looking for ways to invest in your organization's future? Join us for a seminar packed with valuable fundraising strategies! Whether you're on the West coast, East coast or somewhere in between, plan to participate in the Hartsook Companies, Inc. Fall Seminar Series:

November 15 - Detroit, Mich.
December 5 - Santa Barbara, Calif.
December 12 - Raleigh, N.C.

This full-day seminar provides an opportunity for you to learn from some of our top consultants; network with fellow fundraisers, nonprofit professionals and volunteers; and gather valuable ideas you can implement immediately. Visit the Hartsook Companies website at www.hartsookcompanies.com for more information.

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. 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.