By Alan Tang with Liane Hu

On Thursday, June 5th, The Association of Fundraising Professionals (AFP) and Pacific Business News (PBN) gathered nonprofit organization executives and fundraising professionals for a discussion with four panelists on the economic situation and its affect on fundraising in Hawaii. Unlike the period following the tragic September 11 event in 2001, the current economic impact was not sudden. In fact, the signs were on the horizon from a year ago.

Many agree the fundamentals affecting this economic situation are also quite different from those of September 11. The confluence of increasing energy costs, the demise of airline capacity to Hawaii and the credit market crisis are contributing to what some are calling the 'perfect storm.' Many of the changes we are seeing now are not temporary - they are here to stay.

Click here for the 21 Tips on Surviving an Economic Storm.

L to R: Alan Tang, Laura Robertson, Larry Fuller, Beth Giesting, Kelvin Taketa

Charlie Jones, Jr., the Hawaii partner of global consulting firm Booz Allen Hamilton, recently stated that there are three actions leaders must take when faced with the need for dramatic change or when they intuitively know that radical changes need to be made. They need to:
- Actively seek advice and counsel from inside and outside the organization and use it;
- Develop consensus for change within the leadership team or board for the support and buy-in from key players to increase the likelihood of success;
- Develop a vision and execution strategy and iterate these with their leadership team to ensure confidence in the plan.

In preparing for this panel discussion, we created a check-list of twenty-one tips to consider as you develop your strategy to face this 'perfect storm.' The first section relates to fundraising and the second section is about operations.

Woo Your Donors
1. Who is who?
Know who your donors are. Do you know your donors' profiles, preferences, likes and dislikes? Find the alignment between your organization's service and donors benefits. Think beyond short-term gains and take the time to nurture relationships - donors may not be able or willing to give this year, but if you take the time to build a relationship, they will remember your organization when they are in a position to give. The key is to ask the right person at the right time with the right message.

2. Understand how you're perceived.
What does your organization stand for? What is your promise to the community? It's not just what you do - how you present and package what you do is just as important. Move potential donors from awareness to engagement to advocacy. Make your mission something that will resonate with them personally.

3. Differentiate.
What is your brand? Be well known for one thing. There are close to 6,000 nonprofit organizations in Hawaii. Why should donors support your organization? Stand out from the crowd. Focus on differentiating yourself from your peers, those who have a similar cause.

4. Emphasize and/or increase donor benefits.
Understand why your donors give and what they want from your organization. Refine your case statement to make it more powerful. Remind donors what their donations have done. Combine personal testimonials with statistical success. Tell them that they made a difference, and they'll be likely to contribute again to continue making that difference.

5. Increase engagement.
45% of qualified inquiries will lead to some kind of action at some time. Make sure the inquirer will take action with your organization. If someone has even a slight interest in your organization, pursue that opportunity. In a slowing economy, competition is increasingly fierce. Prospects will be drawn to an organization that is responsive. Establish credibility by engaging prospects and helping them get to know your organization.

6. Start dating your donors again.
Don't treat your donors as a number. Get to know them. Invite them to events. Have them get to know your organization. It's all part of the engagement process.

7. Thank your tried and true donors.
Thank current and past donors for their support and don't be afraid to ask them to donate again. Package your message to say, "We need you now more than ever." Express your organization's need in all your correspondence.

8. Raise your ask with established donors.
Express confidence, not desperation, when asking your loyal donors for support. A strong case statement gives you the ability to differentiate your organization and therefore the ability to ask for more when times are tough.

9. Lower your ask to increase market share of new donors.
Although there is pressure to raise more from each donor, consider lowering your point of entry for new donors. For those who are still committed to giving, providing them with a more affordable contribution level may make you the charitable organization of choice.

10. Target emerging donors.
Beyond the conventional donor pattern of those who "learn, earn and give later," there is a vast, untapped audience out there - the young professionals. This population is looking for ways to be engaged with their community NOW.

In addition to the traditional large businesses, there is a relatively untapped middle market - those who run smaller, family-owned small businesses. These entrepreneurs take decisive action and are not hindered by the red tape and bureaucracy of larger corporations. They may or may not have sophisticated philanthropic policies, but they do have the ability and personal desire to contribute.

11. More is more. Do more fundraising when others may be cutting back.
Prospecting typically drops by 38% in a rough economy. Many organizations reduce fundraising activities to cut expenses. However, if you have a good fundraising strategy, this may be the right time to stand out in the marketplace.

12. Focus on attrition and retention.
Look at your data and analyze your attrition and retention statistics. Find out why donors stop giving to your organization, and fix the problem so you can better retain donors in the future.

Adjust Your Operations
13. The Fundamentals: Plan, Strategy & Resources.
In any situation, the business fundamentals must be strong. Have a solid business plan with a strategy based on a sound understanding of the current market and your constituents. When forming your strategy, consider what resources you have available and what you need in the manner of talent, finances and time.

14. Make bite-size changes. Don't rock the boat.
A slowing economy means there is less of a financial buffer for your organization. Unmeasured risks are riskier than ever. This may not be the time to develop an entirely new business model. Consider making smaller changes and evaluate if there are the same benefits before beginning larger initiatives.

15. Make drastic changes. The boat is already rocking!
However, if your business model is not working, now is the time to make drastic changes. Do a risk-gain assessment and look at your external environment. Remember: keeping the status quo might be riskier than making broad changes if your operations are not working effectively.

16. Measure. Analyze. Decide.
Decisions should be based on measurements. Use metrics and analytics to determine what works vs. what doesn't work. Differentiate between what is possible and what is probable. Don't waste resources on pure possibilities or speculation.

17. Don't just cut spending. Spend differently.
Don't just make a cursory budget cut. Don't compromise efficiency or productivity. Instead, look at ways to reduce expenses and make operations more effective. For example, evaluate or negotiate quotes from more vendors. Keep your donor-appreciation celebrations, but reduce the cost of refreshments.

18. Less is more.
Pare down from too many activities and limit to what you do well. Reduce the number of activities your organization does - eliminate those that are a distraction from your main focus or a drain on your resources. You may find you can accomplish more because you are doing less. This prioritization may also help differentiate your organization from the rest.

19. Collaborate. Don't be in a foxhole by yourself.
This may be a time to consider a partnership or even a merger. Some nonprofits have already started partnering to save on overhead costs. Some are sharing space and administrative/support staff. Mergers might also be something to consider if you and another organization have common strengths, similar goals and ways that you complement each other. A merger is like a marriage - the two parties must be compatible. For any collaboration to work, the sum of the two parties should be stronger than each party can be individually.

20. Manage your best talent.
Staff transitions can be costly. Make sure your current staff members (and key volunteers) are still getting personal satisfaction and gratification from their work. Show your appreciation often. Stick with your staff and they'll stick with you to weather this period.

21. Optimize your board.
Your board is probably the only volunteer group that you can approach to deliver the "Four Ts." As executives required to exercise their fiduciary responsibilities for your organization, they are the best candidates to offer their Time, Treasure, Talent and Tribe (Network).

Use these tips in good health. Every organization is unique and these suggestions are not meant to be implemented without a thorough study of the business strategy.

More Resources
The Aloha Chapter of the Association of Fundraising Professionals
If you need further resources on fundraising in the islands, please contact the AFP or visit AFPhawaii.org.