Fundraising Talks
News and updates from the USM Office of
Advancement Research
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Looking for funding opportunities? We've identified a few funds that might be useful to you. Visit the links below to learn more about the requirements and deadlines for these opportunities. 

(Deadline: February 17, 2022)

(Deadline: March 1, 2022)
 
Economic Mobility focused on needs of individuals and families
(Deadline: February 18, 2022)

Economic Mobility focused on needs of community, (affordable housing, small business, neighborhood revitalization)
(Deadline: June 24, 2022)
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Director of Advancement Research
301.445.2709

Prospect Researcher

Office Clerk
301.445.1950
Letter from the Director
Welcome to the February issue of Fundraising Talks. This month, we continue to focus on recent trends that are sure to influence and shape the future of philanthropy. Higher education faces challenges such as decreasing student enrollment and declining numbers of individual donors. In addition, the Chronicle of Philanthropy reports that several key economic indicators from January 2022 convey some warning signs for nonprofits. This may sound discouraging, but by taking a look at emerging tools and trends in the philanthropic sector, we can strive to create fundraising strategies that bring an increased level of alumni engagement and philanthropic support in the future.  

The Dorothy A. Johnson Center for Philanthropy recently published 11 Trends in Philanthropy for 2022, which can aid nonprofits that are looking to create short and long-term fundraising strategies. The trends identified in the report address some current socio-economic factors that influence the philanthropic sector, such as the rise of cryptocurrencies, growing culture wars, new engagement with indigenous communities, increasing attention to the decline in household giving to nonprofits, and the use of data by nonprofits. Another trend is that nonprofits are finding new ways to acquire the data they need. Traditionally, organizations have relied on “existing programmatic data or publicly available datasets for information about the communities they serve.” Today, with the use of “new technology and new partnerships, nonprofits are taking advantage of the rise of data philanthropy, predictive analytics, and machine learning to demonstrate impact.” A full list of all eleven trends can be found by clicking here.

It’s not surprising to see that nonprofits are finding new ways to acquire data and are understanding the importance of using data. However, data is useful only when it is of good quality and it can be used to derive meaningful insights – good quality data is essential in order to engage with donors and prospects. Prospect researchers collect and analyze data for fundraising purposes and they are continuously working to improve the quality of the data available to fundraisers. Forbes’ article “13 Ways Data Is Changing How Nonprofit Leaders Conduct Business” states that data can be used to:
  • Determine where to focus time and resources
  • Offer clarity in decision making, drive business planning
  • Visualize operational drawbacks and accomplishments
  • Assess achievements
  • Understand constituents
  • Create effective communication methods
  • Measure stakeholder behaviors
  • Identify trends
  • Initiate changes to models
  • Inform and transform mindsets
  • Increase philanthropic support
  • Provide actionable insight

Within prospect research, data can provide “insights on interests, areas of affinity, financial capacity, psychographics and past charitable behavior to drive focus and to support engaging optimal potential partners.” Additionally, as mentioned in the article, data governance, integrity, and insights have never been more important to the nonprofit sector. 

New philanthropic trends can be used as a guide by organizations to find ways to utilize the growing market of cryptocurrencies and reverse the trends of declining charitable giving by individuals. Also, establishing policies and measures to maintain data integrity in databases is essential to cultivate good quality data for actionable insights. Before we wrap up this letter, I’d like to remind everyone that February is Black History Month. This would would be an optimal time to celebrate the support and impact of Black donors at your institutions. As always, please feel free to reach out us with questions, comments or any assistance with prospect research!

Best Regards,
Sapna and USM Advancement Research Team
Did you know?

The University System of Maryland Foundation has access to a library of recorded webinars from the Annual Giving Network (AGN) that you may watch at any time from your computer. While we cannot currently gather in person for professional development events, this work from home period provides a great opportunity for you to learn on your own time! Please click here to see what webinars are available from AGN.
 
If you are interested, please email Linda Bowman (lbowman@usmd.edu) and she will help you access these webinars for free. Please do not try to access these webinars on your own, as you will be charged a fee.

Please also note that the Foundation only has access to free AGN webinars, not workshops. Workshops are available at a marginally discounted rate.
This article from Nonprofit Tech for Good is a how-to guide on implementing a fundraising strategy for each season of 2022. This winter, implement a multichannel fundraising strategy with plenty of opportunities to give. Multichannel donors contribute four times as often as online-only or offline-only donors. In the spring and summer of 2022, embrace virtual events and digital fundraising for a more flexible strategy. In the fall of 2022, rally multichannel supporters through monthly giving, crowdfunding, and Giving Tuesday initiatives. Finally, in winter 2022 and 2023, use insights to get ahead of your year-end goals and maximize donor potential. Read more here.
The process of asking for a grant from a foundation can be mysterious, but it doesn't have to be. Philanthropy Daily has written out a five-step process for crafting a letter of inquiry. 

1. Introduce yourself, your organization's mission, and your connection with the foundation.
2. State the problem your organization is addressing.
3. Describe your solution and how you would use the funds you're requesting.
4. Explain a funding plan and if appropriate, other project partners.
5. Follow up by phone or email.
As we discussed in the Letter from the Director, donor data is essential and allows us to segment by demographics, donor type, prospect type, screening scores and ratings, and models and deciles. This article from PlannedGiving.com suggests ways to start segmenting your data in order to find the best planned giving prospects. In addition, they suggest using RFM (recency, frequency, money) to find potential planned givers. The ranking for each of these categories is 100, so the closer a person is to a 300 score, the higher likelihood that they will make a planned gift if given the opportunity. PlannedGiving.com suggests focusing on those with a total RFM of more than 225 for best results. Read more here. 
This article is a follow-up to the previous article "Finding Your Best Planned Giving Prospects." As mentioned before, using RFM is a good way to rank and identify potential planned givers. If your data screening vendor doesn't provide a total RFM figure, PlannedGiving.com has tips on how to do it yourself, using Microsoft Excel. Click here to read the full set of instructions. 
According to Pursuant, the cost of everything in the US grew by seven percent in 2021, which translates to around $3,500 in products and services per household. How will Americans shift spending and prioritize giving as inflation climbs? In 2021, inflation climbed 5.5 percent which is the biggest jump since February 1991. Economists believe that this is largely due to the pandemic and that this uncertainty will continue in 2022. Fundraisers should be concerned, as inflation disproportionately affects low- and middle-income households, which are the primary source of new and mid-level donors for nonprofits. Blackbaud donorCentrics has reported mixed giving trends for the most recent reporting quarter. Donor growth has flattened but not declined. New donors grew at 2.3 percent and revenue was up 9 percent over 2020, thanks to higher average gifts. Fundraisers who understand their donor base, build connections with donors, communicate to their boards, and prepare to pivot will fare best as we move forward. Read more here. 
Throughout this newsletter, we've discussed the importance of reliable data. What is reliable data? Is the data you're using enough to make informed decisions? This article from Experian discusses four characteristics of reliable data and speaks to how our organizations can ensure data reliability. Reliable data is accurate, complete, useful, and timely. Accuracy should be prioritized as your organization formulates data management plans. Complete data is important in order to be able to reach your donors through all possible channels. Data should be useful in that it provides an array of information that is helpful in strategizing your next outreach plans. Finally, reliable data will allow you to appeal to your donors quickly and ahead of other organizations you may be competing with. Read more here. Read more here.