Fundraising Practices are Changing, Principles Remain the Same

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How Advancement Leaders Answer Basic Questions under New Circumstances

Social distancing and the economic downturn resulting from the pandemic are forcing Development Presidents and their advancement teams to shift tactics without lowering goals. Charitable giving may be the only revenue stream not under severe threat as of today. There are downward pressures, and a negative turn for the stock market could change the outlook entirely. But relative to other traditional revenue streams, fundraising is still looking good.

Even though the potential is there for successful strategies, the tactics are shifting to meet the constraints of the moment. Advancement Vice Presidents and Foundation CEOs ask and answer some basic questions.

What does gift solicitation look like now?

Although it varies from state to state, the laws and the social norms around meeting in person have moved over the last few months. The tried and true face-to-face visit just isn’t possible for many college and university leaders and donors. The best advancement offices have been proactive about checking in by phone with their donors, especially those who live alone and fall into high-risk categories.

Of course, videoconferencing is providing a platform that can mimic in-person visits. Development officers have been surprised by how tech savvy many of their donors can be. One advantage of the decrease in business travel is the increased availability of donors who are ususally jet-setter executives. Major gifts officers also find they can make multiple virtual calls in the time it might have taken to drive to and from just one traditional office visit or lunch.

Cautiously, some universities are starting to make in-person visits with donors again. Advice from those who are doing so include broaching this idea only with long-time donors, respecting the donor’s and the solicitor’s health-safety sensibilities and following public health guidelines and state laws related to masking and social distancing. 

How do I budget and staff for next year?

Under pressure to cut budgets, colleges and universities should think strategically, according to advancement leaders. While everyone wants to do their part to absorb the impact of tough times, cutting revenue-generating units should be way down on the list.

Development leaders need to be more persuasive than ever about return on investment (ROI), tying line items and staff positions to revenue streams equivalent to multiples of the expenditures. Likewise, there is an added responsibility for evaluating expenditures, staff positions and staff performance in terms of ROI. Rather than measuring activity (or inputs), it is even more important now to measure outcomes such as moving donor relationships through cultivation stages and the dollar value and goal-alignment of gifts secured.   

Should we go public with the campaign?

Institutions have been in an almost self-perpetuating cycle of campaigns for a few decades now. The pandemic interrupted each of these campaigns at different stages. Campaigns close to finishing struggle with announcing good news that might get lost or seem tone deaf in a climate of challenging national and global circumstances. Many advancement leaders advise that the world could use a little good news right now and that universities can use all the momentum a successful campaign announcement can muster.

But the most acute question seems to be whether or not to go public with a campaign whose silent phase is complete. Since public phases often broaden appeals to donors, whose incomes may temporarily prevent them from giving, wait and see may be the best course of action for the next few months. If nothing changes, by all means keep moving ahead. Just be sure you have a plan to exceed your goal and provide the momentum boost mentioned above.

Since events play such a large role in campaign launches and celebrations, presidents and vice presidents feel like they are missing a crucial excitement generator that can’t be replicated in a virtual setting. At least one university has figured out how to mix it up a bit by combining an online celebration with in-person house parties. The house parties consist of smaller groups of people as required by state law and advised by CDC guidelines. Advancement teams send “party packs” to the host so that the festivities have a common look and feel as they are linked together for a celebratory online program.

Efficiency, productivity and creativity seem to be winning the day. These principles are joined by one other fundamental value. Promoting generosity is personal. That will never change. Most fundraisers can’t wait to get back to in-person face-to-face visits but recognize the need to put the health and safety of donors and staff first. Keeping personalization front and center, no matter the limitations of the current circumstances, will allow development presidents everywhere to adapt to the moment and succeed.  

When you are ready to clarify your principles and change your practices, call me.

In the meantime, Download: 3 Things Every College President Should Know About Fundraising.

…and please share this post with another current or aspiring Development President!

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With over 25 years of education leadership experience, B. David Rowe served as the president of Centenary College of Louisiana and of Lake Highland Preparatory School after holding senior level positions in university advancement and strategic planning. He currently advises college leaders and trustees as a senior consultant with the Association of Governing Boards and as principal at The Development President.