Here we go again. It was about this time in 2008 that the world watched nervously as economic indicators ticked downward and the unthinkable started to happen. Financial institutions were collapsing and credit markets were seizing up. Businesses started laying off workers and people were saving at rates they haven’t in years, fearing that a loss of their job would render them unable to pay their bills. Volatility ruled the day.
If the last month or two has reminded us fundraisers of anything, it’s that this remains a period of apprehension and uncertainty in the world economy. We watch the markets not only for an indicator as to what our retirement accounts look like, but how the up and down spikes might affect our fundraising outcomes. Whether or not this ends up being a recession or just a good scare, it can still be unsettling for many people as they make their decisions on which philanthropic institutions to support and how much their contribution will be. And this is why we need to make certain we have a sharp, sound strategy going forward with our phonathon programs.
Here are four things to think about as we gear up for another potentially challenging fiscal year.
Phonathon is an Investment, Not an Expense
The margin between a successful phonathon campaign and one that leaves you scratching your head (or worse) is razor thin in today’s development world. Competition for the charitable dollar has never been greater. Fewer dollars flowing from both the state and federal government in the future will mean that demand for funding in many of our organizations will likely be higher than it was in 2008. To separate your institution from all the other worthy charities, you’ll need to use your phonathon program as an outreach tool that combines donor education, stewardship, and fundraising into the same vehicle.
I have seen a few institutions deemphasize their phonathon program in the last few years. It’s a tempting thing to do when comparing it side-by-side with major gifts. But this isn’t a zero-sum game. Major gifts doesn’t win when phonathon loses. The two areas of higher education development are complements to each other, not substitutes. There is a long-term price to pay for defunding the phonathon. The natural cultivation and upgrading of your database is stopped or slowed, alumni fail to hear your message, and donors get out of the habit of sending in their gift- often forwarding that gift intended for your institution to another worthy charity. And the rates of return in direct mail or online giving almost always pale in comparison with the phone program. To set your entire development operation up for both present and future success, your constituents need to personally hear from your institution at least once per year. The only feasible way to do that with the entire database is through a well-made student fundraising call.
It Starts with Planning
Most phonathon programs that had a good plan going into the 2009 fiscal year weathered the economic storm. Many increased results, with generous alumni stepping forward to help their alma mater in a time of need. Others didn’t fare so well. Those were the programs that came into the fall of 2008 without a good strategy. Because of poor planning, they falsely made the assumption that the phone program would essentially run itself. They could approach the year in the way they always had done before and the results would continue to increase. Except this time, most missed their goals. They were unprepared for the challenges that would come their way and eventually ran out of time trying to catch up, falling well short of their target. They had time to make changes, but took little substantive action.
What we learned from the financial turmoil of 2008 can be applied today as well. A good plan and strong execution can carry you through a tough economic period. There may be challenges along the way, but phonathon programs in particular can no longer afford to be lax in the level of detail they review as managers draw up their plans for the year. In today’s world, phonathon should run like a business to be successful.
State Your Case Emphatically
If ever there was a year not to gloss over the script writing process, it was 2008. Generally speaking, the programs that performed the best got it right in terms of laying out their reasons for supporting the institution and writing sensible objection techniques that were fine-tuned to both acknowledge the prospect’s concern and continue the ask for a gift, all while being tactful and professional. It’s always a good idea to refresh and renew the scripts every year, but when student- callers encounter a more challenging constituency, it becomes paramount that they are armed with well-written information to give them the best chance for success.
Understanding Negotiation Fundamentals
Financial objections have historically been in the top 3 of all refusal reasons and responses that student-callers hear. In normal times, this means that students have to be ready to handle the traditional objections related to money, including student loans, retired/fixed income, just bought a house, and being unemployed amongst others. In the Age of Economic Turbulence, financial-related objections tend to be more sharp and tougher to overcome. Therefore, student-callers must be trained at a superior level in order to maximize the productivity potential of a given database. The quality of training and coaching they receive needs to be refined to match the challenge they will likely face when they make their calls. This is no time to cut back on a manager’s focus or a student supervisor’s coaching duties. All parties must be on the same page with negotiation best-practices or risk leaving money on the table. Avoid making the assumption that student-callers will learn as they go. They must be highly-trained from the very start of their tenure and there should be no compromise in the quality of their presentations. There are a finite number of prospects in higher education development. Every poor call placed is an opportunity missed.
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