Nonprofit Fundraising Results in Metropolitan Areas According to How America Gives

Last week I wrote about interesting findings and highlights from the Chronicle of Philanthropy’s How America Gives nonprofit fundraising report. Today, I’m highlighting the results from the report specifically from two case studies of lower performing cities which nonprofits can learn from and apply to their own fundraising efforts.

Providence Performing Arts Center

PROVIDENCE, RHODE ISLAND – Having placed 46th as a state in overall giving, Providence placed 50th out of 50 metropolitan areas that were measured. Through the report it is evident that this is due to several factors including the economic downturn and the recession as the statistics reported on are from 2008. This affected Providence’s economy as many local banks and large corporations were being acquired by much larger national conglomerates. Local governments were struggling and hiking taxes and the increased cost of living impacted lower and medium income families that would typically be more philanthropic. There were three key lessons from the report:

1. Demonstrate what the problems are and how fundraising revenue can satisfy a solution. According to Neil Steinberg, president of the Rhode Island Foundation, “educate and inspire the donor base… like you would educate and inspire about new products.” Giving your donors and supporters a clearer picture about the challenges faced will be a motivator for them to support the cause with any amount possible.
2. Reach out to the affluent when those in your regular donor demographic can no longer give what your nonprofit has become accustomed to. Those in higher income brackets may still be able to give even during difficult time to help fill in the gaps. Personal visits will help build a relationship and the need can be communicated on a more personal basis.
3. Bring people together who have the same interests and the same need. There is strength in numbers and having a community of supporters and advocates that can bring light to the cause and issues that are most important to your organization can provide stronger results and help develop a culture of philanthropy.

Spoonbridge and Cherry water sculpture in Minneapolis Sculpture Garden

MINNEAPOLIS – A full decade prior to the Chronicle’s 2008 ranking, the Twin Cities came in third in the percentage of giving from discretionary income with 8.5%, more than double from its most current standings of 4.2%. Historically, a very generous city and where the 1%  Club began encouraging members to donate 1% of their net worth or 5% of annual income before taxes. However, as much of the wealth moved out of state and the metropolis grew into suburban areas, Minneapolis giving shifted throughout the decade giving the impression of complacent donors. Several local and statewide initiatives have been put in place to try to curb the downward turn over the years. According to the report “some signs suggest that the philanthropic impulse remains strong” as evident by the local United Way’s 22% increase of donor revenue over the amount received in 1997. Lessons that nonprofits can learn from fundraising activities in Minneapolis are:

1. Implement a Matching Program where generous or loyal donors match donations from new donors. This would encourage and engage new donors as it represents doubling the value of each contribution. Existing donors will also participate as they would be expanding on their current giving levels and will feel like they are building a stronger relationship with the nonprofit and the cause they care about. An example of this is Project for Pride in Living, a local Minneapolis nonprofit.
2. Build on the Millennial Donors because they will be the next generation of supporters and advocates that will be moving the cause and organization forward. Typically between the 20-35 age group, the Millennial donor is engaged and cares about causes, however they need to be groomed and have the torch passed on to them. The One Percent Club is changing directions and becoming the Fourth Generation Fund with a new structure which will help encourage giving by local residents in the 30’s age bracket.
3. Online Fundraising programs like Give to the Max Day. Now on its fourth year, this state-wide campaign encourages citizens to give generously and has generated over $50 million strictly through their online platform. Enabling the ability to virtually donate to the donor’s charity of choice, the state has reinvigorated giving in donors that were becoming complacent. These types of appeals can be very beneficial to smaller, more local nonprofits if they combine their online efforts with other organizations in a joint campaign that can benefit all participating charities.

As I have mentioned before, the results from the How America Gives report can be applied to any nonprofit’s efforts regardless of location and the lessons learned can beneficial to future planning.

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Miratel Solutions is a Toronto call centre, eBusiness, and letter shop mail house specializing in professional fundraising services including telephone fundraising, online fundraising, lottery services, donation caging, donation processing and other donor management services. We are committed to our CSR business values in all contact centre services and mail house operations and advancing the missions of the nonprofits we proudly serve.