S & P 500 - A Good Indicator
Years ago in some session at some conference … the speaker shared a piece of information that I have never forgotten (even if I have forgotten other details).
” A key indicator as to how well you will do with your fundraising efforts is the S & P 500.”
And, if you are keeping an eye on the markets, reading the papers, or simply watching your retirement savings and 401k’s dwindle … you will also note that the S & P 500 has seen a drop from 1468 in December 2007 to 1280 in June 2008 … down 12.8 percent in the first six months of this year.
Optimistic statements by some pundits of a rally in the first quarter … implying that consumers would soon be opening their pocketbooks … saw that simply wasn’t the case when the June ending figures were reported.
The good news … the S & P did rally in May back up to around 1425 before dropping back in June (that could explain why a colleague saw a lift in acquisition response rates for her clients who mailed in May).
Here’s to keeping our fingers crossed that we may see a rise again … as the end of the third and beginning of the fourth quarters starts … traditionally our highest yielding months in fundraising.
What can be done? Here are just a couple of suggestions.
1- Put a concerted effort and plan together to cultivate and steward those donors you already have - no matter what level of giving.
2- Review your direct response plans both on and off line and focus on your performing segments.
3- Use some good old fashion analysis and determine which messages, vehicles and times of year your donors respond and focus on making those asks successful.
4- Check with your vendors and service providers and see if there are ways to cut costs, from paper to postage.
Finally, as I recommend to all my clients … “Tell more Personal Stories.“ Share with donors and prospects how their donations will make a difference … through the voice of one who has benefited. Find some champions for your cause … they are your best advertisement!
Sounds simply right?
With costs for basic day to day goods rising … a focus on the 2008 presidential campaign … and yes the drop in the S & P 500 … you have your work cut out between now and year end. The choices you make now will determine how successful you will be December 31st.
Regards,
Sue
