On the Line...with Jason Fisher

Why Having a $5 and $10 Ask Strategy Will Set Your Program Back

Annual fundraisers are creative animals.  Give them a number and the good ones will come up with a plan to get there, even if they occasionally color outside the lines.  In the last dozen or so years, the buzzwords “alumni participation” have been heard throughout hotel halls at conferences, boardrooms at trustee meetings, and chancellor and president’s offices far and wide.  Nearly every director of annual giving at some point within that timeframe has been charged with increasing participation to meet some artificial standard within their institution, probably in response to US News and World Report or other external measurements.  Perhaps the pressure applied at the upper levels of the development offices becomes so great that the short-term objectives of keeping the boss happy or staying employed outweigh the long-term, common sense fundraising strategies.  So naturally, like water through porous ground, some have taken the path of least resistance.  In response to the increased pressure and expectations of bringing alumni participation up, they sacrifice best practices and sell their soul to the fundraising devil…one $5 or $10 gift at a time.

Written into the scripts and training materials of many phone programs is the phrase, “We’re just trying to increase alumni participation- anything you can help with is appreciated- even $5”.  I’ve even seen programs that push for $1 pledges.  Not many checks end up being written for $1….most write in a slightly larger amount…often the $5 or $10 level out of guilt.  But the result is essentially the same.  By starting with such a small amount, we’ve downgraded our chances for getting a bigger gift, lost potential revenue by skipping levels, and more importantly demeaned the philanthropic process at your institution.  Asking for these extremely small gifts, especially for your first ask, is a fundraising gimmick- not a true effort to raise money and build donor loyalty.  Just as quick as you gained that person’s support, you’ll lose it the following year because you acquired their gift by taking a shortcut- not building a strong foundation of philanthropy and donor education.

The Managerial Burnout Factor

At one time or another, everyone has experienced the burnout factor in some capacity.  Whether it was that final semester of college, the last few weeks of the athletic season, or the 121st episode of a favorite show on television, most of us grow tired of the monotony and routine of daily tasks in life.  We want new challenges to keep our skills sharp and minds sharper.  Many of us have experienced that in our career as well…me included.  We're in an age of new learning opportunities, mobile lifestyles, and short attention spans- not exactly the combination for long-lasting careers.  Such is life in the 21st century.

Phonathon managers are certainly no exception to this rule.  In fact, they are the epitome of restlessness in the fundraising profession.  The average phonathon manager stays in their position around 2 years before moving on.  That number may be a little higher lately with the poor economy, but for the most part it’s pretty accurate.  And it’s neither right nor wrong; it simply is a product of many factors- entry level position, typically young professionals, second-shift hours, and a significant number of opportunities in the same field at other locations.  Add to that the higher-pressure, goal-oriented environment of nonprofit fundraising and you get shorter tenure levels for the phonathon and annual giving industry than most other full-time professions.

Five Questions Every Phonathon Manager Should Ask Themselves Before This Fall

We’re gearing up for another exciting year of phonathon!  With just weeks to go until the majority of programs kick off their campaigns, I thought I would share my thoughts on how managers should be using the remaining time before calling begins.  While there are a multitude of things to focus on, here are five questions you absolutely need to ask yourself to ensure your phone program is pointed in the right direction.

 

5.      Have I created an atmosphere where callers will not use the economy as an excuse?

 

The hottest topic in higher education development last year should not be a built-in excuse for callers this year.  Yes, we know the economy is still rough in many parts of the world.  The recession has not completely disappeared- and in some cases it has gotten worse because unemployment continues to rise in some locations.  But let’s not be all gloom and doom here.  When Bear Stearns and Lehman Bros. collapsed last year, the panic alone caused a ripple effect that halted regular patterns of giving in many of our prospect pools.  That initial fear is gone…and while hesitation skill exists in some capacity, optimism is returning in many parts of the world.  The stock market is above 9,000.  The financial sector still sports some wounds, but many banks are now showing profits again.  Unemployment in July even fell in the United States on the whole.  There are serious shoots of green sprouting up all over the place.  Fear is being replaced by cautious optimism this year, and many alumni will again consider giving.  It’s your job to now convince the callers to believe it.

Why Attempt Limits Only Limit the Amount of Money Phonathons Can Raise

Over the past few years I have seen many trends develop in phonathon.  Most revolve around the increasingly difficult task of actually getting the prospect on the phone.  Contact rates have continued to creep downward as programs search for answers in overcoming caller ID, cell phones, do not call lists, telemarketing regulations, and the general awareness of our telephone outreach programs.  This has cost some programs, both manual and automated, a great deal of money.

 

One of the most common mistakes I see in the industry today is the concept of attempt limits.  These artificial barriers may prevent some of the more egregious problems we face in phonathon, but they essentially tie the hands of management so tight that we miss opportunities to fully exploit the productivity potential of our databases.  During my many consultations on campuses all over the world, I’m fairly straight-forward in my advice to stop using them.  While the idea of attempt limits makes some sense on an abstract level, the reality is that they limit the amount of money a phonathon can raise.

 

As I see it, there are two common reasons why managers and directors believe attempt limits should be used.

In Phonathon, You Can't Live on Past Glory

This fall will mark my 20^th year in phonathon and annual giving fundraising- two years as a caller, two years as a student supervisor, four years as a phonathon manager, seven years in executive management at RuffaloCODY, and the last six years in a consulting capacity (with a little time in major gifts sprinkled in for good measure).  It’s been quite a ride, that’s for sure.  And as I reflect back on my career and look ahead, I recall something that I used to tell my callers nearly every week while managing at the University of Georgia- you can’t live on past glory.

Like any job, phonathon becomes monotonous after awhile.  It’s easy to slip into the mindset that the program will run itself- that you can essentially put it on autopilot.  Nothing could be further from the truth.  While I’ve personally never done that, I have had moments where I was searching for the next challenge…having accomplished the goals set forth and therefore been left without a short-term objective.  It’s understandable that managers go through this.  Those that put in the long hours and dedication to their craft can become mentally drained.  It’s human nature to let off the accelerator when the race appears in hand.  Raising unparalleled amounts of money and breaking records is no easy task.  It takes a constant daily focus to maintain “the edge”.

Creative vs. Analytical: Which Quality is Best For a Phonathon Manager?

As a longtime phonathon consultant, I have had the privilege of seeing well over 100 phonathon programs in person and meeting hundreds more phonathon managers.  One of the most common questions I get asked on campus or at conferences is which quality is best in a phonathon manager- being creative or being analytical?  I have listened to the arguments on both sides, and both have valid points.  But based on my experience, the answer is quite simply- both. 

Why Record Counts Matter So Much in Phonathon Planning

As we wrap up another year of phonathon and begin thinking about next year, I thought I’d take a minute to talk about one of least appreciated factors in creating a realistic and solid phonathon plan- record counts.  Before a manager even begins to think about the calling calendar or scheduled hours for the calling shift, they should first have an understanding of how many prospects they will have to call that fiscal year.  This is Step 1 in the planning process for the new fiscal year- establish a segmentation strategy and find out how many people you will be calling.  Here are a couple of additional thoughts on why I believe this to be so important.

Next Year Begins Now- Fully Debrief This Year's Results

The best phonathon programs comprehensively report on all major components related to the phone program- documenting the procedures used, changes made, and overall results following the final calls of the year.  It is important to record detailed notes for reference purposes, especially if there is a managerial change expected for the next phonathon.  In any case, having explanations as to strategies that worked and those that did not is extremely helpful in painting a picture of the chronological progress of the program and the efforts by management to move the numbers in a positive direction.  Without this level of detail, there is no effective paper trail (or electronic trail as it may be today) to refer back to. 

 

Simply counting last year’s donors and dollars only tells you a fraction of what you need to know to run a good phonathon program.  Don’t fall into the trap of thinking that the program is not that difficult to run, or that nothing much will need to change.  That’s the precise recipe for stagnant results.  Instead, phonathon managers need to challenge themselves to become immersed in the details of the program; taking all the phonathon components apart and putting them back together again to make sure it’s working correctly and at maximum effectiveness.  Yes, there is another report to write.  And yes, it will take time.  But the amount of information and level of detail you can gather as a result is invaluable…and really needs to be made a priority for your program.  Specifically, the following areas should be covered in great detail.