One of our client organizations recently discovered that more than 80% of their first time donors did not renew their support. We showed them that research has shown that it costs as much as 4.5 times more to acquire a first time donor as to renew an existing donor. Through an interactive examination of best practices in gift acknowledgement, recognition and donor cultivation, we will explore the value of stewardship as a revenue enhancer.

1. The Artful Solicitor –
Stewardship as Revenue Enhancer
David A. Mersky
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3. Today’s Speaker
David A. Mersky
Founder and Managing Director,
Mersky, Jaffe & Associates
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4. The Artful Solicitor
Stewardship as Revenue Enhancer
August 31, 2011

5. The Case of…
…the Disillusioned
and Confused
Prospects
©2011 Mersky, Jaffe & Associates

6. The Case of…
…the Disillusioned and Confused Prospects
• You are the new CEO of NCSC
• Dinner with $1,000 AF “under-givers”
• Predecessor lavished time on these “alumni”
• Proposal for $250,000 named fund in
sustainable energy went nowhere
• Pleasant evening
• Predecessor misread interest and status
©2011 Mersky, Jaffe & Associates

7. The Case of…
…the Disillusioned and Confused Prospects
To your horror you learn, the donors
– Have no interest in sustainable energy program
– Chagrined and dismayed by proposal
– Interest in NCSC, but business requires all cash
and prevents major gift now, and BTW,
– “What happened to $25,000 we gave last year for
which we received no acknowledgement, plan for
use nor recognition?”
©2011 Mersky, Jaffe & Associates

8. The Case of…
…the Disillusioned and Confused Prospects
The donors
– are a married couple, ages 60 and 62;
– had never made a major gift (i.e., above $1,000)
before the $25,000; and
– have no children.
©2011 Mersky, Jaffe & Associates

9. The Case of…
…the Disillusioned and Confused Prospects
What do you do
after the dinner?
©2011 Mersky, Jaffe & Associates

10. The State of Philanthropy in
America Today:
A View from the Field
©2011 Mersky, Jaffe & Associates

11. The number of 501(c)(3)
organizations 2001–2010

12. Total giving as a percentage of Gross
Domestic Product, 1970–2010
Data are rounded.

13. 2010 charitable giving
Total = $290.89 billion

14. Total giving, 1970–2010

15. Types of recipients of contributions, 2010
Total = $290.89 billion

16. Q:
How do you get your
piece of the pie?
©2011 Mersky, Jaffe & Associates

17. A:
A Strong Team…
because leadership
trumps all
©2011 Mersky, Jaffe & Associates

18. Financial Resource Development:
An Exceptional Leader’s Tasks
and Responsibilities
©2011 Mersky, Jaffe & Associates

19. Leaders make their own philanthropic
investment
• It makes a difference
• It empowers them to serve
as an advocate and
ambassador
• It enhances their credibility
to ask others to invest
©2011 Mersky, Jaffe & Associates

20. Leaders thank donors
• Acknowledge contributions
in personally written letters
and calls
• Tell donors the value of
their investment
• Recognize donors at events
personally
©2011 Mersky, Jaffe & Associates

21. Leaders help make connections
• Review existing prospects
and donors
• Identify others from
communal, professional or
personal contacts
©2011 Mersky, Jaffe & Associates

22. Leaders mentor potential donors
• Educate and encourage
prospects to support the
congregation
• Host a meeting at home for
potential major donors
• Conduct one-on-one
encounters to engage potential
donors
©2011 Mersky, Jaffe & Associates

23. Leaders solicit their peers
• People give to people
• Approach people with
whom they are comfortable
• By asking others to give,
leaders fulfill their
responsibility to provide
financial resources
• Build a community of
donors and funders
©2011 Mersky, Jaffe & Associates

24. A:
• A Strong Board
• The Development Cycle: The
Context for Stewardship
©2011 Mersky, Jaffe & Associates

25. PROPER
PLANNING
PREVENTS
POSSIBLE
POOR
PERFORMANCE
©2011 Mersky, Jaffe & Associates

26. PROPER
PLANNING
PROMOTES
POSSIBLE
POSITIVE
PERFORMANCE
©2011 Mersky, Jaffe & Associates

27. The Development Cycle
Identification
Renewal Research
Stewardship Planning
Solicitation Cultivation
©2011 Mersky, Jaffe & Associates

28. Create Lifelong Donors
• It takes 4.5 times the effort and dollars to
acquire a new donor as it does to keep one.
• Retain donors with effective development
and stewardship, systematic procedures,
failsafe annual fund program.
©2011 Mersky, Jaffe & Associates

29. Create Lifelong Donors
• Securing donors is obviously the first step.
• But, then
– acknowledge promptly and effectively
– show appreciation regularly and sincerely
– give priority to winning the donor’s heart and
mind to the cause.
• Create a culture of giving at your organization
©2011 Mersky, Jaffe & Associates

30. Stewardship=Success
1. A systematic plan
– for acknowledgment and stewardship
– in the form of a manual
– reviewed annually
2. Seven ways or more to acknowledge and
recognize your donors
©2011 Mersky, Jaffe & Associates

31. Stewardship=Success
3. Acknowledgment letters
– reviewed and changed at least once a year
– first acknowledgment letter sent out in 48 hours
4. Accountable to donors
– By reporting outcomes of gift to
• clients
• program
• organization
©2011 Mersky, Jaffe & Associates

32. Stewardship=Success
4. (cont.) Accountable to donors
– send emails from organization’s beneficiaries
– staff members or volunteers systematically call
and thank donors
– publish an Annual Report with Honor Roll of
donors
– number of years of continuous giving
©2011 Mersky, Jaffe & Associates

33. Stewardship=Success
5. Development staff and/or volunteer
leadership
– plan for regular stewardship calls or “moves”
– send a letter or newsletter to a small, select list
of major gift donors, prospects, and influentials
– send all donors a newsletter with stories about
donors that gives recognition for their gifts
©2011 Mersky, Jaffe & Associates

34. Stewardship=Success
5. (cont.) Development staff and/or volunteer
leadership
– actively discuss stewardship activities and
annually review plans and activities
– budget for stewardship activities
– gathered information from donors in the past 24
months (e.g., conducted a donor survey or donor
focus groups)
©2011 Mersky, Jaffe & Associates

35. Stewardship=Success
5. (cont.) Development staff and/or volunteer
leadership
– survey lapsed donors to determine why they
might have dropped out
– proactively communicate with donors about
issues that may be unpleasant or sensitive
©2011 Mersky, Jaffe & Associates

36. Stewardship=Success
6. Do you
– recognize donors for their cumulative giving
– provide public donor recognition through such
things as gift clubs, wall of honor, signage,
dinners, events, etc.
– recognize those who have made a planned or
testamentary gift
©2011 Mersky, Jaffe & Associates

37. Stewardship=Success
6. (cont.) Do you
– monitor what comparable organizations do in the
area of stewardship
– provide briefings to staff
©2011 Mersky, Jaffe & Associates

38. Working in the Third Sector, enables us to
engage with others
• to build community
• to meet a bold challenge
• to make a difference in the world
• to save and change lives

39. Mersky, Jaffe
& Associates
Financial and Human Resource
Development Solutions for Nonprofits
800.361.8689 413.556.1074 fax
www.merskyjaffe.com
OFFICES IN BOSTON AND NEW YORK
©2011 Mersky, Jaffe & Associates

40. Find listings for our current season
of webinars and register at:
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