Annual Funds: During and Between Campaigns
By:  Elizabeth S. Zeigler

A healthy and comprehensive annual fund will increase the number of donors and the number of dollars received each year – even when the organization is conducting a campaign. Growing the annual fund at a time when an organization is seeking five-, six- and seven- figure campaign gifts may seem counterintuitive. However, the annual fund serves as the pipeline for major gifts that feed current and future campaigns. Applying sound, proven strategies can bring the same dramatic results to an annual fund during a campaign as it does to an annual fund that needs new energy between campaigns.

Annual Fund Strategies
• Segment the prospect pool. Prospective donors with like qualities should be grouped and matched with an appropriate solicitation approach. Define constituencies by giving history, such as consistency of giving, level of gifts, and/or by affiliation/relationship to the organization.

• Determine solicitation approach for each segment of the prospect pool. A tailored approach recognizing a prospect's giving history and affiliation will be significantly more successful than a broad appeal. Solicitation approaches include face-to-face, telephone, direct mail and email requests.

• Make face-to-face requests with top prospects. A face-to-face request made by a volunteer and a staff member is the most successful way to secure leadership level commitments to the annual fund (and prepare donors to be solicited for major gifts). When conducting a campaign, consider making a “dual ask” that incorporates the campaign and annual fund commitments.

• Personalize Annual Fund requests. Personalized requests stand out and are likely to receive first consideration. Personalize requests by enlisting meaningful solicitors, acknowledging giving history and relationships and sharing news about the organization, and matching the prospect's interests. Direct mail appeals should have personalized salutations, ask for specific amounts, be signed by an individual known to the prospect and be mailed first-class.

• Test methods and track results. Annual fund programs will grow through a process of testing approaches and tracking results. With a segment of the prospect pool, test new direct mail pieces, different solicitors on letters, or a fresh telephone script. Track the results of each appeal in the organization's database and fine-tune the approaches based on the results.

Remember to balance the art and the science of the annual fund. The themes, messages and designs of appeals must serve the plan and timetable, and be part of the continual analysis. Chart your course at the beginning of the year but be flexible to make necessary course corrections throughout the year to achieve success.

Thinking of ways to maximize your organization's annual fund growth? Our initial consultation is always free, and requires no obligation. Call our offices today at 800-608-7955, or simply e-mail us at contact@grahampelton.com