Sept. 17 (Bloomberg) — Marc Friedman, who runs the nonprofit Building With Books, witnessed the severity of Lehman Brothers’ situation firsthand last week at the investment bank’s Manhattan headquarters.

“It was surreal being in their offices,” said Friedman, Building With Books’ chief operating officer who used a Lehman conference room for a board meeting last Wednesday. Two Lehman executives are on the board of the Stamford, Connecticut, organization that runs after-school programs.

Lehman Brothers Holdings Inc. was scrambling at the time to shore up its capital, though the securities firm collapsed and declared bankruptcy on Monday.

Building With Books, like many nonprofits, is now looking ahead and bracing for a pullback in corporate donations following Lehman’s demise, Bank of America Corp.’s purchase of Merrill Lynch & Co. and the government takeover yesterday of American International Group Inc.

Friedman, like others, said his organization is making sure its donors are varied. Individuals cover 35 percent of its $6.4 million budget while corporations, foundations and government aid make up the rest, he said.

“What’s happening on Wall Street is challenging for us, but our revenue base is diverse,” he said.

Corporations accounted for 5.1 percent of all donations to U.S. nonprofits in 2007, according to GivingUSA Foundation, a research group in Glenview, Illinois. Individuals were the largest donor group, contributing $229 billion, or 75 percent, of total philanthropy.

More Competition

Economic troubles are expected to increase competition for funding among nonprofits that operate everything from museums to homeless shelters.

“If companies are in trouble, corporate philanthropy is one of the first things to get cut,” said Tom Pollak, program director at the National Center for Charitable Statistics at the Urban Institute in Washington.

The Greater Pittsburgh Community Food Bank, serving 11 counties in southwestern Pennsylvania, is bracing for a decline in donations.

“Some corporate donors are telling us they’ll have less to give next year,” said Joyce Rothermel, the food bank’s director, without naming contributors. “The length of this economic downturn will definitely have an impact on our future and where our energies go.”

Donors, too, have a wait-and-see attitude.

The Wells Fargo Foundation, an arm of San Francisco-based Wells Fargo & Co., is unlikely to increase its donation total next year from a current $104 million, said Tim Hanlon, the foundation’s president.

No Increase

“It’s hard to know in this economy what’s going to happen,” Hanlon said. “I don’t expect a decrease, but I’m not so sure about an increase.”

Procter & Gamble, the world’s largest consumer-products company, increased its charitable contributions 5 percent in 2007 to about $115 million, a total that won’t change this year or in 2009, said Brian Sasson, global manager of the Cincinnati- based Procter & Gamble Fund. P&G gives mainly to educational and public-affairs groups.

The General Mills Foundation, the charitable arm of Minneapolis-based General Mills Inc., also projects its giving to nonprofits next year to remain at about $21 million, Executive Director Ellen Goldberg Luger said in an interview. Its donations focus on fitness, education and the arts.

Plan B

The importance of corporate donations to nonprofit groups varies widely, said Tim Delaney, chief executive officer of the Washington-based National Council of Nonprofit Associations.

Medical institutions and private universities rely less on corporate giving than social-service nonprofits, he said.

The Pittsburgh food bank, for example, gets 9 percent of its $10.6 million budget from corporate donors including Comcast Corp. and US Airways Group Inc.

The New York Restoration Project, an environmental group founded by Bette Midler, will receive 20 percent, or $1.7 million, of its $8.3 million fiscal 2008 budget from corporate donations, Executive Director Drew Becher said.

“We’re putting together a Plan B in case some of what we have in the pipeline doesn’t come in,” Becher said. “Everyone is going through cost-cutting, and we’ll feel it in ’09.”

To contact the reporters on this story: Patrick Cole in New York at pcole3@bloomberg.net; Leon Lazaroff in New York at llazaroff@bloomberg.net.

Source: Bloomberg.com

1. Personally contribute $50 to your fund.  You should lead the way!
2. Ask two family members to each contribute $50.
3. Ask 10 friends to each contribute $20.
4. Ask five neighbors to each contribute $20.
5. Ask five co-workers to each contribute $20.
6. Ask 10 people from your faith-based organization to each contribute $10.
7. Ask your boss for a company contribution of $50 (better yet, find out if your company will match what you raise!).
8. Ask four businesses or companies that you deal with through work to contribute $50 per company.
9. Ask four businesses you frequent to personally contribute $25 (this is an easy one — ask your barber/hair stylist, dry cleaner or restaurant where you eat lunch every day).
10. You’re done!  Total Donations: $1,000!  Now remember to write personalized thank-you notes so that next time you ask for a donation, they remember the appreciation.

Asking for donations can always be daunting, but FastTrack Fundraising offers some easy and innovative ways to ask for donations.  You can check them out here: http://www.fasttrackfundraising.com/donation-fundraising.php

The purpose of these notes is to serve as a guide to anyone planning a casino party fundraiser event. There are certain points listed that might not be applicable to your event. However, we have attempted to address the typical scenarios an organizer will likely encounter.  For a more detailed guide, grab a copy of “Casino Night Fundraiser Secrets” at http://www.fasttrackfundraising.com/casino-night-fundraiser.php.

Table of Contents
1. Goal
2. Revenues
3. Expenses
4. Determining Ticket Price
5. It will be all right on the night if…

1. Goal

Generally when asked the question, “How much money would you like to raise at this event?” most hosts realize that they haven’t given it enough thought. Having a realistic goal of how much money you would like to raise is the key starting point. It should determine the price of your entrance fee and the limit of your expenses.

Decide how much money you would like to make from this event.
Draft a statement of your proposed Revenue and Expenses.

Obviously the key is to maximize your revenue and minimize your expenses. As fundamental as this concept is, most organizations disregard it when running one of these events.

2. Revenues
Revenue for a fund-raiser will typically take the form of one, some, or all of the following:
Ticket sales
Table sponsorship
Drink sales
Food
Auctions
Additional script purchases

Ticket Sales:
Delegate the task of ticket sales to more than one person. It is far easier for 20 people to each sell 10 tickets than it is for 1 person to sell 200 tickets. Hold each of these 20 people responsible for the sale of their allotment of tickets.
Bottom Line: This is usually your primary source of revenue and the financial success of your event depends on meeting your goal of tickets sold.

Table Sponsorship:
Find at least one table sponsor for each casino table being used and the sponsored amount should generally be at least $100. Encourage your sponsors to provide “gag” gifts that promote their business to be distributed at “their” table. For example – a blackjack table sponsored by a dentist could give away a free toothbrush (with the sponsor’s name imprinted) for each blackjack that is dealt. Or, the dealer could be dressed in the sponsor uniform. Make your sponsors feel as though they are getting value for their donation and not only are they more likely to attend the event, getting a similar sponsorship the next year
will be much easier.
Bottom Line: Table sponsorship should cover at least the entire rental cost of the casino equipment and staff.

Drink Sales:
This will vary depending on the “upscaleness” of your event. Ticket prices and what people are getting for their money will generally determine whether guest’s drinks are included in the ticket price or if they need to pay for them. Typically, the more expensive the entrance fees the less likely you are to charge additional for drinks. On “drink inclusive” events a limited bar (beer, wine, soda) is suggested to curb costs. On other events entrance fee usually includes two “drinks tickets” which are typically redeemed at a rate of one ticket
for a soft drink and two tickets for wine or beer. Additional drinks require the purchase of more drink tickets.
Bottom Line: Drinks can vary between being a good source of revenue to being a very large expense. Manage your bar wisely.

Food:
This follows a similar format to your drinks.
Bottom Line: Don’t leave people feeling “short changed” because of poor quality or insufficient food. However, don’t spend all your money on providing a spectacular meal because that is not the focus of this type of evening.

Silent Auction:
These are often incorporated into a casino evening and I offer the following advantage/disadvantage thoughts on the inclusion of a silent auction:
Advantages:
Opportunity to raise more money

Disadvantages:
Requires additional sponsors to donate auction items
Interrupts flow of casino evening and takes people away from tables
Much more organization and coordinating involved
Guest often feel “hit-up” two or three times in one evening
Bottom Line: Silent auctions are often the backbone of revenues generated at fundraising parties. However, they do require a lot of time and effort to coordinate successfully. Delegate at least one person whose sole responsibility is to manage the silent auction of the event.

Live Auction:
Live auctions can generate a tremendous amount of revenue for the event, if done correctly.  There are several key ingredients to a successful live auction.  Maintain a captive audience – shut down all other activity during this time  Shorter is better – your live auction should run no more than 30-40 minutes
Less is more – have only a few; generally less than 10 – high ticket items for auction. Use a dynamic auctioneer.
Bottom Line: Keep the live auction short and it can be very, very sweet.

Additional Script:
As part of their entrance fee guests are usually given an initial “stake” of script or funny money. If they lose this initial stake they should have the option of acquiring more money for a token “donation.” This is an additional source of revenue though generally not to the extent that hosts expect it to be. Primarily because guest, for the most part, gamble conservatively.  You want to give your guests a sense of having received value for their entrance ticket so be sure to include enough script money in their package. I suggest a minimum amount of $100 to $150 in script. Anything less and guest might feel a little “short changed.” Much more than this and you greatly reduce the likelihood of many people purchasing more script. Regarding the purchase of additional script: Make the additional “donation” an amount that is a round number and covered by a single bill ($5, $10, $20,$50 etc.).
Bottom Line: Keep the “donation” to an amount that encourages people to get more script rather than setting it too high and not having anyone buy in again.

3. Expenses:
Again, the fundamental rule regarding expenses is to keep them to a minimum without compromising your event.

Typical expenses incurred hosting a casino event:
Facility costs
Decorations and props
Casino equipment rental and dealers
Beverage costs
Food costs
Insurance
Security
Clean Up
All the points addressed below carry the same caveat: “without compromising your event”
Facility Costs:
Invariably, free is the key word here. Attempt to secure a facility at no cost to your event. There are generally several organizations that are open to making their facility available at little or no charge.

Decorations and Props:
Often balloons and streamers or ribbon will suffice when decorating the event facility. Always weigh up the cost of any props you are considering using. People are typically not at your event for the decorations. Solicit donations if possible however, prioritize a table sponsorship donation ahead of a prop donation almost every time.

Casino Equipment Rental:
Provide the casino operator with accurate head counts so the appropriate amount of equipment is supplied. Too much equipment on hand results in a bigger expense and having too few tables to accommodate your guests is one of the surest ways to spoil your event.

Dealers:
Arrange to staff the blackjack tables with your own volunteers. There will be a charge for training them but this cost is more than offset by the saving of not paying for these dealers.

Beverage Costs:
Arrange with your beverage supplier to be able to return all unopened bottles. This way
you only have to pay for the beverages you have sold.

Insurance:
Some facilities might require a one-night insurance coverage policy for your event,
especially if you are not being charged for the venue.

Security:
The same applies to security and parking. This will vary with different locations and
organizations. Be aware of this possible cost when selecting a location.

Clean Up:
Designate a team of volunteers to take care of the facility cleaning.

4. Determining Ticket Price
Ask the following questions:

How much money do you want to make? = NET PROFIT
How many tickets can you sell for this event? = TICKETS
What is the total of all expenses? = EXPENSES
What is the total of my net profit plus all my expenses? = GROSS

NET PROFIT + EXPENSES = GROSS
GROSS / TICKETS = TICKET PRICE

Example:
We wish to raise $3500 from our event
Our intention is to sell 200 tickets
Our total expenses are $1500
$3500 + $1500 = $5000 (Gross)
$5000 / 200 tickets = $ 25 per ticket

What then needs to be determined is if this price is appropriate for what you intend to provide your guests and will your market support the sale of your proposed quantity of tickets at this price. Remember that you might even be under charging your guests!

By selling the proposed number of tickets and following the guidelines above you will always realize at-least your intended net profit and in most cases a higher amount.  However, if you don’t sell your intended number of tickets or if your expenses are higher than budgeted; your net profit is adversely effected in both cases.

5. It will be all right on the night if…

Things to know before the event:

• Set up early at the facility
• Have change available at the “cash desk”
• Have additional script and drink tickets at cash desk
• Have a public address system on hand to announce prizes etc.
• Have sponsors signs in place on all tables
• Have bow-ties, uniforms etc. available for volunteer dealers
• Number tables
• Have dealers assigned to a specific table ahead of time
• Post signs prominently indicating chip denominations
• Post information about buying more script
• Clearly indicate location of cash desk
• Have change or drink tickets available at bar or bars
• Designate all tasks ahead of time – specifically breakdown and clean up
• Keep thorough notes for your next event – the second time is always easier

For more detailed information, grab a copy of “Casino Night Fundraising Secrets”: http://www.fasttrackfundraising.com/casino-night-fundraiser.php.

Best wishes with your fundraiser!

Sincerely,
The Entire Team at FastTrack Fundraising

We asked an expert for his top 10 tips on the nuances of email marketing for nonprofits and ways to increase conversion rates. One simple change he made lifted response 66%. Nonprofit organizations have different relationships with their members than businesses do with their customers. Those differences need to carry over into their email programs.“Part of the whole overall fundraising program is realizing that your newsletter that’s keeping people aware of your activities is really fundraising. Nobody will consider it that, but it really is the cultivation side of a fundraising program, not just asking for money once a month,” says Jeff Herrity, Internet fundraising professional.

When your list is ready for an appeal — or a donation request — Herrity follows a long list of best practices he has developed over the years for clients, including Amnesty International and the American Red Cross.

Here are his top 10 tips for putting together an email fundraising campaign:

The Email Itself

-> Tip #1. Put your request in the subject line

First off, be direct, Herrity says. Don’t shy away from asking for a donation in the subject line. Subscribers to a nonprofit’s email newsletter expect this.

Herrity tested subject lines for a client’s appeal:
- The direct subject line said “Donate to Feed a Child Today.”
- The indirect subject line said “Learn About this Organization.”

The indirect subject line had a 21% open rate, but only a 4% response rate. The direct subject line had an 18% open rate and an 18% response rate.

“If your goal of this email is to get money, put it in the subject line. You’re going to get a little bit lower [open rate], but you’re going to get more donations,” Herrity says. “Don’t try to be all clever with your wording knowing that someone is going to feel kind of bait and switched or guilty once they realize they’ve opened an email and it’s a hungry kid staring at them.”

-> Tip #2. Keep the email copy short

“Copy length always played a factor in [response]. With fundraising copy, you don’t want a 10-page email that someone has to read. That’s fine when you’re sending somebody a letter at home that they’re going to sit down and read, but on email it’s really got to be two or three paragraphs,” Herrity says.

Herrity has tested copy length and found that the longer copy got an 18% response rate while the shorter copy got a 30% response rate. “Shorter copy always won. I mean, we’re talking two paragraphs, a couple of links and a P.S.”

-> Tip #3. Keep the copy simple

With only a few paragraphs to work with, it’s important to keep the email’s copy simple.

A possible layout:
o Header – Company banner
o Paragraph 1 – State the problem your organization fights
o Link to provide a donation
o Paragraph 2 – State what your organization does to fight the problem
o Paragraph 3 – Examples of where the money will go, such as short testimonials.
o Link to provide a donation
o Closing statement and signature
o P.S. with final statement and another link to donate
o Footer with navigation links and a button to donate

Check the hotlinks below for one of Herrity’s appeal emails.

-> Tip #4. Keep links separate, simple

The first donation link in the email’s text should stand alone in its own paragraph. It should not be embedded in the copy. When done this way, Herrity says, the first link usually generates the highest number of clickthroughs and donations.

“Every time I’ve done [a] stand-alone link, it works better than a graphic or even that ‘Donate Now’ button. In this one email, what I call ‘text-link one’ had 33 donations, whereas the actual donate button only had 18.” The email had 129 total donations.

The second best performing link for Herrity was a stand-alone text link at the bottom of the email, which received 22 donations. The link’s text should be simple and direct:
o “Please make an online donation today here”
o “Please help today”

With a direct subject line, “you know that people are opening the email with the intention to give, so just ask them for it,” says Herrity.

-> Tip #5. Follow-up email with a new subject line

“You’re going to get the majority of your responses in the first couple days. I think in the case of nonprofits, you’ve got about a five-day window of where you’re going to see responses,” Herrity says.

After your initial responses have tapered off, send a follow-up email with a different subject line to those who did not open it the first time. You can also target those who opened the email but did not donate by testing layout, length, copy and other components.

The Landing Page

-> Tip #1. Don’t clutter landing page

By opening an email and clicking through, a member has expressed interest in making a donation. Don’t clutter up the landing page with copy. Further convincing is probably unnecessary at this point.

To continue the simpleness of the landing page, place the donation form directly on the page. It should maintain a look and feel that’s similar to the email.

-> Tip #2. Keep landing page copy short

You don’t need to clutter up the landing page with extra copy. “Thank you for making your donation to help Henry eat for a week,” is enough, Herrity says.

“We tested landing pages that were just longer versions of the email. And we also tested just sending [members] directly to a donation page that had a little bit of copy that just kind of summarized what the email was for. Generally, the landing page — in the case of donations and fundraising — is really just a barrier to getting a higher conversion rate.”

Thanking Your Donors

-> Tip #1. Use thank-you emails

Donors are the lifeblood of a nonprofit organization. Show them your appreciation and you’re more likely to make a one-time donor a long-term member. One way to do this is by sending a series of thank-you emails.

“Some organizations I work with, they’ll do it once a month. It’s kind of a cultivational program. Every month, we send out a ‘thank you’ to someone who had donated online and it’s [based on a specific appeal]. So, they’re more used to seeing emails that aren’t always ‘give us money.’ You’re making them a more loyal customer just by thanking [them] and letting them know what their money has done,” says Herrity.

-> Tip #2. Keep the thank-you email simple

Like your appeal, follow similar guidelines with the thank-you email and keep it simple.

“‘Dear Adam, thank you for your recent gift of $50. We just wanted to thank you and wanted to let you know that your money is going to help put food on little Henry’s table for the next three months. Thank you again for your support.’ That’s all it has to be,” Herrity says. “It’s closing the loop, as opposed to where people just think, ‘Oh, well, that autoresponder that the donation processing system kicks out is fine.’ Well, it’s not. It’s a receipt. Do you go home and study your receipts when you go shopping? No.”

Another point: say thank you in the subject line. The open rates for these were always 70%, he says.

-> Tip #3. Use standard ‘make a donation’ link in the footer

Some organizations have a standard header and footer for all emails sent to members. When the footer included a “make a donation” link, Herrity noticed that thank-you emails generated even more donations.

“It was never our intent. We’d see in that footer, which was a standard footer, we would see a second gift. Not a huge percentage, but 10%, 15% of people who received the thank you would give again,” Herrity says.
Useful links related to this article

Parts of a nonprofit email described:

http://www.marketingsherpa.com/cs/nonprofitemail/study.

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Past Sherpa article – New Data: 6 Actions to Lift Open, Clickthrough Rates:

http://www.marketingsherpa.com/article.php?ident=30169

Redboots Digital Marketing:

http://www.redbootsconsulting.com

Source: http://www.marketingsherpa.com/article.html?ident=30272