New Fiscal Year Approaching – Are You Ready for the ride?

New Fiscal Year Approaching – Are You Ready for the Ride?

Jessica here! Today, I’m thrilled to welcome a guest post from my friend and colleague, Melissa Derrick Adair, who brings a wealth of experience and insight. I like to introduce Melissa as the most competent person I’ve ever met, especially since she changed my life by teaching me about the “filter by color” function in MS Excel. 😊 Her post below is packed with practical wisdom and actionable tips – I know you’re going to love it.

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Have you ever thought that annual giving is just a classic roller coaster? You might think I’m referring to thrill you get from the ride – but I’m thinking deeper about the science behind the ride.
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Roller coasters use a combination of gravity, inertia and momentum to propel riders through the track. If you look closely, the biggest hill is first. This is called the lift hill. The lift hill uses a chain or other mechanism to pull the cars to the top. Take yourself back to your last roller coaster ride. Do you remember the excitement and anticipation you felt slowly creeping towards the top? When you reach the top of the lift hill, the train is filled with potential energy – in fact the height of that hill has a direct impact on the rest of the ride. As the train tips over the top of the lift hill, gravity, momentum and inertia take over.

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IS YOUR LIFT HILL TALL ENOUGH?

For a rollercoaster, the kinetic energy gained from the initial descent dictates how the rest of the ride will go. If the lift hill is too short, there will not be enough energy built up for the cars to make it through the entire ride.

In annual giving, the three months before the fiscal year start is our lift hill. This is the time where you should be looking ahead towards the next fiscal year and setting your plan. Setting the plan now allows time to ensure that your strategy can make an impact starting on day 1. Ask yourself:

• What key initiatives do I want to anchor my fundraising calendar? A good strategy typically includes a key initiative for each quarter (i.e. initial donor renewal, calendar year end, giving day, fiscal year end, etc…)
• Do I have the tools necessary to implement my strategy? The pre-fiscal year period is a great time to ensure that you will have the platforms and vendors needed to implement your vision.
• Do I have the staff needed to execute my vision? If you are adding new initiatives or expanding initiatives, you may need additional personnel or expertise to successfully implement.

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DO YOU HAVE A GOOD DESIGN?

Have you ever noticed how a roller coaster doesn’t just have a series of loops? It has turns, slopes and other elements to ensure that as the train moves through the track it can build up more energy. In annual giving, your plan should be like the rollercoaster and include more than just solicitation.

• Be Prompt with Stewardship. Thank your donors quickly to reassure the donor that their gift was received and appreciated. Always include a quick thank you (like an immediate email). You may also want to have larger “thank a donor” campaign included as part of a key initiative.
• Always be Cultivating. In annual giving, it is all about cultivation. Our goal is to influence donor behavior, encouraging them to climb the donor pyramid with increasing and repeating support. A key component of this is cultivation. Your donors should receive outreach intended to engage and keep them connected with your mission. You should ensure your magazine, website and social media also include strategically timed gifts-at-work examples.
• Space It Out. To avoid donor fatigue, be mindful of the donor view and ensure your plan includes adequate spacing between solicitation appeals to the same audience. When planning your 1st quarter initiatives, think about the timing and how closely that may match up with any fiscal year end audiences.

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ARE YOUR PROSPECTS READY TO RIDE?

Another key part of any roller coaster ride is ensuring that all the passengers are ready for the ride. Amusement park attendants do final checks to ensure passengers are secure. As you look ahead to the next fiscal year, be sure that your prospects are ready for your outreach. Studies continue to show that fundraising campaigns utilizing multiple channels of outreach create more opportunities for potential donors to connect with your organization and have higher rates of conversion. Now is a great time to ensure that your prospects will be able to receive your omnichannel outreach.

• Enrich The Data. Send key prospects to data enrichment services to capture and verify demographic information like address, email and cell phone.
• Collect Donor Preferences. Ensure online donor forms and event registration forms include areas to provide preferred contact information as well as opt-in by communication channel.
• Update your CRM. Ensure demographic updates received through returned mail, email correspondence or phone outreach are updated in your CRM. Ensure your outreach CRM is compliance ready with spaces to store opt-in preferences by channel.

When I started out in annual giving, the running joke was that once the fiscal year flips, you wipe the slate clean and start all over again. But after two decades of leading annual giving fundraising strategy, I’ve learned that it is far from the truth. What you do in the final quarter of your fiscal year has a direct impact on the next year’s results. So, as you are looking ahead to next year, remember the importance of a good design. Have a strong initial climb with a mixture of loops, turns and slopes throughout the path.  And always ensure your passengers are ready for the ride!

​Melissa Derrick Adair

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Melissa is an innovative fundraising leader with 25 years of proven success driving fundraising strategy through omnichannel direct marketing approaches. She has collaborated with hundreds of non-profits, primarily in Higher Education, Greek Life and healthcare. Her specialty is developing comprehensive, data-driven strategies for prospect identification, cultivation, solicitation and stewardship. Melissa served as the chief fundraising strategist for Ruffalo Noel Levitz for more than a decade. She is known across the industry for her expertise, particularly in data-driven strategy, using language to optimize fundraising results and texting compliance. Melissa earned a B.A. from the University of Georgia and an M.B.A from Mississippi State University.

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