WHERE THE MONEY IS WHEN THERE DOESN'T SEEM TO BE ANY MONEY

STRATEGIES FOR RAISING FUNDS IN THE CURRENT ECONOMY

WHERE THE MONEY IS WHEN THERE DOESN'T SEEM TO BE

ANY MONEY

Larry RosensweigPresident

LFR Consulting

Florida Association of Museums Annual Conference 2009

WHO GIVES A ………DOLLAR?• Giving USA 2009 reports:

• American individuals, corporations, and foundations were very generous in 2008, contributing more than $307 billion to nonprofit organizations

• For the first time since 1987 and only the second time since Giving USA began publishing annual reports in 1956, total giving decreased in current dollars

WHO GIVES A ………DOLLAR?• The impact the economy had on philanthropy

last year did not affect all nonprofit giving sectors in the same way. Arts-culture-humanities saw a significant 6.4% decrease in giving

• As in the past, more than 80 percent of these dollars were given by individuals

GIVING USA

WHO GIVES A ………DOLLAR?• Corporate giving – usually only around 4-5% of

total – declined by 4.5% in 2008

• Foundation giving increased by 3% in 2008, but…

• Assets declined substantially ~30%

• New gifts to donor-advised funds down significantly in 2009, with declines expected in giving

HOW ABOUT SOME MORE BAD NEWS!• Government Support Down

• Federal – slight increases in IMLS, NEA, NEH, etc. + stimulus $$

• State – large decreases in grants with more cuts expected

• Local – Tourism + other grants down significantly in most counties

• Direct subsidies down and trending lower

INDIVIDUAL GIVING DOWN, TOO• Still 80-90% of total but…

• Most people’s assets down

• Psychology still negative or, at best, uncertain

• Very few people giving to causes or organizations they are not already involved with

“Why do I rob banks? Because that’s where the money is.”

Attributed to Willie Sutton

SO….WHERE ARE YOU GOING TO GET THE MONEY?!?

PEOPLE WHO CARE ABOUT YOU• Trustees

• Former Trustees

• Volunteers

• Members

• Past Donors

• Corporate & Foundation Supporters

HOW TO TARGET THE RIGHT PEOPLE• Pick a $$ amount appropriate for your museum

• List people who gave that amount or more in previous 2-3 years but not this year

• Review and determine a target amount and giving opportunity for each person/organization

CREATE A SIMPLE MENU• Membership Upgrades

• Sponsor a specific program

• ‘Host Committee’

• Specific amount

• Event (usually least cost-effective)

• Unrestricted Gift

SAMPLE PAST DONOR SPREADSHEET

Primary Addressee

Last Gift Date

Last Gift Amount

Total Gifts in FY07+08

Membership Category Expires On

Target Amount Purpose Solicitor

Mr. and Mrs. Frederick R. Flintstone 2/2/2007 $6,000 $6,000

FC - Circle Supporter   $5,000 Exhib AM

Mr. and Mrs. J.W. Bigbottom 9/9/2008 $2,000 $4,000

Contributor Member   $2,000 Memb MB

Ms. Louise Lasser 9/19/2008 $1,750 $3,750

FC - Circle Member 12/11/2009 $1,750 Memb MB

Mr. and Mrs. Beauzeau D. Klown 12/28/2007 $5,000 $5,000     $5,000 Ball CC

Ms. Elaine Benes 7/10/2008 $7,500 $7,500

Contributor Member 8/5/2009 $7,500 Educ NE

• Tell stories about people whose lives you change

FOCUS ON WHO BENEFITS AND HOW

FOCUS ON WHO BENEFITS AND HOW

• Stick to your mission

• Don’t emphasize the ‘party’

ASSIGN RESPONSIBILITY• Who will do research

• Is prospect a Madoff victim?

• Did prospect lose job or business?

• Who will ‘open door’

• Trustee or other volunteer?

• Who will solicit or actually ask for gift

• Team of staff member and volunteer

Time is of the essence when saying Thank

You

Who will follow up and steward the donor?• Thank you note (s)

• Appropriate credits

• Invitations to events, activities

• Report on what has been accomplished with donor’s funds

When facing a difficult task, act as though it is

impossible to fail. If you’re going after Moby Dick, take

tartar sauce.

~ Life’s Instructions for Wisdom, Success, and Happiness ~