F&P sticks its finger up in the air to test which way the fundraising wind is blowing. Interviews compiled by Rochelle Nolan.

F&P sticks its finger up in the air to test which way the fundraising wind is blowing. Interviews compiled by Rochelle Nolan.

F&P spoke with fundraisers from a diverse range of nonprofits including mega multi-nationals like Red Cross right down to tiny grass roots organisations like Menzies Inc. How has their fundraising fared? What are the things that keep them awake at night? What does the future look like? Some common themes emerged, but also a fascinating array of challenges and opportunity.

Greatest fundraising challenges facing the sector? Fundraisers should not be embarrassed or apologetic when we spend money to raise money. Nor should we be wasteful or inefficient. The nonprofit sector in Australia has a challenge to explain to donors, openly and with confidence, the true costs involved in raising funds. It is essential that nonprofits transparently and credibly demonstrate how a donor’s support is making a real difference. Greatest fundraising challenges facing your organisation?
Creating a unique point of difference from other nonprofits. Internal communications explaining that short term investment in fundraising has longer term benefits for the entire organisation. Recruitment of staff with the appropriate skills for the job. How have your fundraising results fared in the last 18 months?

2010 has been far better than 2009. During the GFC we found that donor behaviours did not substantially change. However financial institutions (banks and credit card issuers) adopted a far more stringent approach to management of consumer debit. This resulted in massive increases in credit card rejections. Over 40 nonprofits are now working together under the Fair Fees Action banner to pressure financial institutions to treat nonprofits more fairly.

How do you think your fundraising results will fare in the next 12-18 months?

We are adopting a cautiously optimistic approach with our planning for the next year; “prudent growth” is our mantra!

What fundraising opportunities are on your radar? The burden of PCI compliance is forcing us to think more creatively about how we conduct our fundraising activities. In doing so we are questioning why certain processes exist and whether they can be over-hauled so we become PCI compliant and more effective with our fundraising. Many nonprofits are still grappling with the complexities of social media and how to use the multiplicity of channels to engage supporters. This isn’t about how money can be raised from Twitter/Facebook/Foursquare etc; it’s more about how these channels can be utilised to start genuine two-way conversations with supporters. Greenpeace Australia Pacific vital signs

Number of donors: 65,000 (+ 250,000 cyber activists)
Annual fundraising revenue: $17 million

Greatest fundraising challenges facing the sector? Donor fatigue. There is such huge competition for the donation dollar that standing out from the crowd and cutting through the clutter is becoming increasingly difficult; donors are being inundated by requests for funds. It’s more crucial than ever to know your organisation’s unique point of difference and consistently carry that through to all communications. Economic uncertainty. Figuring out how best to capitalise upon new opportunities in the online fundraising space. Greatest fundraising challenges facing your organisation? An outdated database that needs to be replaced with a new, organisation-wide, web-integrated system. Taking advantage of opportunities in digital media. The development of an alumni strategy. How have your fundraising results fared in the last 18 months?

We have been very fortunate to have fared well, with actuals 16% ahead of budget in our last financial year. These results can be largely attributed to events with good attendee numbers and heavily segmented and targeted appeals.

How do you think your fundraising results will fare in the next 12-18 months?

We hope to fare even better as we work on our digital fundraising strategy, launch new programs to better capture major givers and alumni, and convert more of our volunteer camp leaders into regular givers.

What fundraising opportunities are on your radar?

We are seeking to better tap into our alumni and develop a more sophisticated major donor program. There are considerable opportunities for the sector at large to take advantage of technology to target appeals to donors in a more pinpointed fashion than ever before.

The Crusader Union of Australia vital signs

Number of donors: 1,000
Annual fundraising revenue: $800,000

Greatest fundraising challenges facing the sector? The shifting nature of the workforce. Competition and lack of strong branding to differentiate the work of each nonprofit. Technology increasingly being used to replace traditional methods of developing real, personal relationships between organisations and their donors. Greatest fundraising challenges facing your organisation?

Menzies Inc faces all those challenges, especially in the area of branding. Although our services began in 1865, we still need to educate the local community and grant-makers about our work and get them to value our services enough to support us.

Staff turnover in our sector is high, and training costs are a major concern. We use a number of methods to communicate with our donors and public, but due to the small size of our donor base and the lack of dedicated staff to grow this area, we have not used new technologies in all areas of fundraising. This has been a conscious decision. We find that telephone calls, personal letters, meetings and small events are a better way to develop strong relationships with current donors.

How have your fundraising results fared in the last 18 months?

The GFC has had no effect on our overall fundraising, however investment values suffered. We also saw some foundations deferring their regular grant making.

How do you think your fundraising results will fare in the next 12-18 months?

The year ahead will be more difficult – after elections governments have little incentive to improve funding arrangements, and competition among nonprofits remains high.

What fundraising opportunities are on your radar?

The opportunities for us lie with the launch of a capital appeal for a new facility, and we will put more effort into partnering with other organisations to increase our funding base. We will also invest more in fundraising by hiring a full-time fundraising staff member.

Menzies vital signs

Number of donors: 100 active donors
Annual fundraising revenue: $400,000

Greatest fundraising challenges facing the sector? The uncertain financial times, which is reducing discretionary spending Competition from a larger number of nonprofits that are aggressively marketing to our existing donors Donor fatigue Greatest fundraising challenges facing your organisation?

Our greatest challenge is keeping our smaller donors engaged, and keeping our larger donors from being too interfering in either policies or exhibitions.

How have your fundraising results fared in the last 18 months?

We have slightly fewer donors, but the average amount donated has increased – so we had an overall better year last year than expected.

How do you think your fundraising results will fare in the next 12-18 months?

We expect it to fare about the same as last year.

Art Gallery of NSW vital signs

Number of donors: 700
Annual fundraising revenue: $7 million (excluding sponsorship)

Greatest fundraising challenges facing the sector? The need for agreed and uniform financial reporting across the sector to address donors’ requirements for transparency and accountability. State-based fundraising legislation makes life complicated for organisations like ourselves which operate nationally. Legislation developments in the areas of privacy and consumer law affecting how, when and where we can fundraise Greatest fundraising challenges facing your organisation? Raising enough money to support our everyday work helping the most vulnerable people in Australia and the Asia Pacific. Getting the message across that while governments fund our Blood Service operations, our everyday work is dependent on support from the Australian public. Getting the message out that fundraising for disaster appeals and the provision of blood are only two of the services Red Cross provides. Finding a way to sell what we do, given the broad range of services we provide. How have your fundraising results fared in the last 18 months?

Last financial year, we had expected to see a drop in fundraising income but it didn’t eventuate. In fact, we saw the extent of the Australian public’s generosity in their overwhelming support for those affected by the Victorian bushfires. The appeal for that raised around $380 million.

How do you think your fundraising results will fare in the next 12-18 months?

We are committed to significant growth over the next five years and to further reducing the costs of fundraising.

What fundraising opportunities are on your radar? Baby Boomers reaching retirement offer a huge opportunity for all nonprofits. Growth in online and mobile streams is both an opportunity and a challenge as other sectors (for profits) are also investing in these channels to drive their growth and acquisition. Diversifying and broadening our fundraising channels. Encouraging and investing in our members and staff. Australian Red Cross vital signs

Number of donors: 45,000 regular givers; thousands on a one-off basis
Annual fundraising revenue: $40 million for everyday work; $376 million for disaster appeals

Greatest fundraising challenges facing the sector? The increasing number of nonprofits and greater competition for the philanthropic dollar. Donors are being more selective in who they give to and long-term loyalty is becoming less likely. The continued uncertainty in the economy causes prospective donors to delay their decisions. Greatest fundraising challenges facing your organisation? Battling perception. If you stopped people in the street and asked them to name three nonprofits they might donate to, a university probably wouldn’t make most people’s list. There is a general perception that universities aren’t nonprofits (and therefore aren’t deserving of philanthropic support). Raising more funds to capitalise on exciting opportunities. Recruiting and retaining good staff is a constant challenge. How have your fundraising results fared in the last 18 months?

Since 2008 we have focused on our major gifts program which has a target of $200 million over five years. We are currently sitting at about $126 million raised, which is roughly on track.

Initially the GFC didn’t seem to affect us, but the first five months of this year saw a significant and worrying slow-down in giving. However, in September we had the most fundraising success in the university’s history – $16 million came in from 11 gifts. It remains to be seen whether or not this upward trend continues.

We have invested a lot of time and effort in prospective donor cultivation and stewardship, and this has greatly assisted fundraising.

What fundraising opportunities are on your radar?

We are looking to have a higher level of engagement with alumni, and substantially increase the number of donors. In the last 18 months we have embarked on an annual giving program to alumni. This consists of both direct mail and email solicitation, and next year we will introduce a phone program.

Monash University vital signs

Number of donors: 3,000
Annual fundraising revenue: $30 million