BEYOND SPONSORSHIPS!

By Elizabeth Grisby, CFRE

How Individual Donors Can Help Your Event During COVID-19

There is no doubt that corporate sponsorships are an integral part of the festivals and events industry. We depend upon both small and large businesses to provide the financial backing to make our events a reality. But what happens when those businesses can’t provide that support anymore?

Unfortunately, that might be a new reality because of COVID-19. Experts are estimating tens of thousands of businesses will permanently close because of the virus and it will take at least three years for the economy to recover. (1) So, what do we do in the meantime? We need to look beyond corporate sponsorships for sources of long term, sustainable funding of our events.

The Challenge of Sponsorships

I will never forget the excitement of landing my first title sponsorship. After months of work, I had finally convinced a large telecommunications company that they should be the title sponsor of my fine arts festival. The joy! The ecstasy! The thrill!

I thought if I just did a great job for them at the event, they would sign on to be the title sponsor next year and then the year after. I could see it now! They would support us forever! But, unfortunately, it didn’t happen. We did do a great job for them at the event – and they loved it – but shortly thereafter they merged with another company and that was it for my sponsorship.

And I think that is something that we all experience with corporate sponsorships. Things change and they usually change quickly, unbeknownst to us. Businesses merge, relocate, and close all the time. Then of course there is the ever-revolving door of sponsorship decisionmakers and changes in sponsorship priorities. Toss in an unexpected global pandemic and you have the perfect storm.

The Power of the Individual Donor

Many would be surprised to know that only 5% of charitable giving comes from corporations. And that usually these are the hardest dollars to secure because everyone is asking too. What an eye opener! But it makes sense if you think about it. Need someone to sponsor the t-shirts for your child’s Little League team? Go hit up the bank, or the grocery store, or the sporting goods store. It is the natural, easy go-to for money and it happens all day, every day in our communities.

But there is an alternative! A much more lucrative, not nearly as sought-after option. The individual donor. When it comes to giving money, the largest slice of charitable gifts comes from individuals, almost 70%. In 2018 that totaled $287 billion dollars. (2)

And the best thing is that if an individual donor likes you, likes your event, and is treated well, they will continue to give no matter what is going on in the economy! They may give you less during a pandemic, they may give you more, but they will give!

So How Do You Find These Individuals?

Surprisingly, you already know who they are! Your donors are your attendees, volunteers, vendors, Board of Directors (past and current) and many others. Anyone who knows and likes your event is a candidate to give you a donation. You should have their contact information on mailing lists, e-mail lists, ticket purchases, and social media. And when I am talking about a donation, I am talking about any amount of money with no expectation of anything in return. A gift to support you and your event or festival because it is important to them! All you have to do is have a compelling case and ask. Ask for their help. Ask them for their investment. Ask them to make a difference.

How to Make “THE ASK”

The tried and true method of asking an individual for a donation is via direct mail, but this will work for e-mail and social media. Your appeal doesn’t have to be anything fancy. Just a letter from your CEO, Executive Director, or Board President talking about the following:

Why your festival or event is important to the community. Is it a decades long tradition that exemplifies the very best of your city? Is it an economic engine which generates an impact of millions of dollars? Does it preserve a specific culture or provide an educational opportunity for those that attend? Really think about both the tangible and intangible benefits that your festival or event provides each year.

Be honest about the situation. There is absolutely no shame in saying that you need help, and this is the reason why. Certainly, the big reason now is COVID19, but it could be something else like a tornado, hurricane or other natural disaster. Or maybe you lost your event location or were unable to secure the amount of sponsorships that you needed to produce the event. Whatever the reason is, just say it! You will be surprised how understanding and sympathetic people can be especially when unforeseen circumstances fall upon those they care about.

Tell them what their donation will be supporting. It is perfectly alright to say that their donation will be used for operational expenses, absorbing costs that have already been incurred, or loss of income because your event didn’t take place. You can also talk about how this effects your plans whether that be downsizing the event or possibly not having it at all.

Here is an example that we sent out to those that purchased tickets asking them to become individual donors when our marquee event, the Lubbock Arts Festival was cancelled by COVID-19 in April.

John Smith April 13, 2020

123 Main Street Lubbock, TX 79401

Dear John:

Today I am reaching out to you as a friend of the Lubbock Arts Alliance and Lubbock Arts Festival. For the first time in 42 years, the Lubbock Arts Festival will not be held this month. After decades of producing a high quality, award-winning event, we are devastated to be sidelined by an unexpected COVID-19 crisis. We were only a month away from opening the doors when our government officials announced the “Public Health Emergency” and “Declaration of Disaster” prohibiting mass public gatherings across Lubbock and Texas, and we support their decisions.

Unfortunately, the Lubbock Arts Alliance has incurred $130,881 in costs toward producing the 2020 Arts Festival and our event cancellation insurance covers everything except infectious diseases. We have requested refunds for services that have not yet occurred, and some can be moved to next year; however, expenses such as printed materials, graphic design, advertising, supplies, reimbursements to participating artists and exhibitors, continuing administration, and others must be paid and cannot be regained.

We are asking our devoted friends like you to consider your Lubbock Arts Festival ticket purchase as a donation in support of minimizing the financial impact caused by the unprecedented situation. Your donation will allow the Lubbock Arts Alliance to:

• Minimize the financial impact on our non-profit organization.

• Prepare for a bold, dynamic 2021 Arts Festival that attracts even more attention to Lubbock.

• Remain a vibrant organization that sponsors the Lubbock Cultural District, continues our outreach to families regardless of age, race and ethnicity and especially to children who would not have opportunities to experience the arts.

We know that everyone has been impacted by the COVID-19 pandemic; however, we hope that many of our supporters will agree to give their ticket purchase as a gift. If you agree that your purchase can be a gift, no further action is required on your part, and we will send you a gift receipt. However, if you need a refund, we will do so. To request a refund, please call our office or send us an e-mail by May 31, 2020.

We thank you for your support of the Lubbock Arts Alliance, and we hope that you and your family will stay safe during the virus. We look forward to your involvement in the Lubbock Arts Festival scheduled for April 16-18, 2021. It will be an exciting arts extravaganza! The Arts Are for All!

With Best Regards,

Elizabeth (Regner) Grigsby

Executive Director

Do the Following to Ensure Success:

• Make sure you have a non-profit entity to receive the donations so that dollar amounts given can be acknowledged for tax purposes. If your organizations is already a 501 (c) 3 as determined by the IRS, great! You are set to go. If you work for a governmental organization, consider forming a non-profit group which exists solely for the purpose of supporting your event. It could be “Friends” group like Friends of the Public Library or Friends of the Animal Shelter.

• Personalize the letter. Don’t make it out to “Dear Friend” or “Dear Patron” make it personal and use their name and address. I would also highly encourage you to sign each letter and write a small note thanking them for their consideration.

• Response form/online mechanism which captures their name, address, telephone number, e-mail, amount of their donation and method of payment (check, credit card, via website).

• For direct mail, enclose a pre-addressed envelope. It does not have to be stamped! But make it easy on your donor just to fill out the response form, enclose payment, and drop in the mail. Same thing for online. Provide a “GIVE NOW” button which links to credit card processing service.

• Thank them for their time and ask them to respond by a certain date. You want to create a sense of urgency by having a deadline.

What to Do After the Donation is Made?

• Acknowledge the gift. Be sure to write an “official” letter so they can use it for their federal income tax. Somewhere in the letter should be the following statement:

Please let this letter serve as an official receipt for your gift in accordance with Section 170 of the Internal Revenue Code. No goods or services were given in exchange for this gift. Check # 001 - $100 Cash - Received on April 15, 2020.

• Say thank you in multiple ways, multiple times. This can be anything from a handwritten thank you card to a telephone call expressing your appreciation. Anything that shows the donor that you made a special effort to recognize their gift to your organization.

• Continue to keep your donors informed about your event. Be sure to add them to your e-mail and mailing list. Invite them to join you on your social media channels. Keep them involved in your event with ongoing communication. Do not be the charity that asks them to give a gift and they don’t hear from you again until you need more money.

IT TAKES TIME. You should expect to receive a 20% return on your first appeal letter with 90% of the money coming from 10% of your donors. Cultivate those 20% that give to you and keep looking for others who like your event and have the capacity to give a financial contribution.

ASK AGAIN. The #1 reason why people do not give is because they have not been asked. Do not make this fatal mistake. If someone has given you a donation, chances are that they will give again if you engage them in ongoing communication and make the “ask.”

Our Success Story with Individual Donations

Shortly after losing my first title sponsorship, we had the Great Recession of 2008. I knew that we needed to diversify our event’s income and could no longer solely depend upon sponsorships and ticket sales like we had in the past. We actively started pursuing individual donations as another source of reoccurring funding. Over the past 12 years we have managed to accumulate a base of donors whose total annual gifts surpass what we raise in sponsorships. And now with the COVID-19 forcing us to cancel our Arts Festival, our individual donors have stepped up once again and provided us with the funding we need to make it to 2021 in better shape than before the global pandemic.

Resources:

(1) Oliver, Laura. “It Could Take Three Years for the US Economy to Recover from COVID-19.” WorldEconomic Forum www.weforum.org/agenda/2020/03/ economic-impact-covid-19/. (2) “Giving USA 2018: Giving Reached over $400 Billion!” The Curtis Group, 13 June 2018, curtisgroupconsultants.com/givingusa-2018-giving-reached-over-400- billion/.

About the Author:

Elizabeth (Regner) Grigsby, CFRE, has been the Executive Director of the Lubbock Arts Alliance since 2004. Under her leadership, annual attendance at the Lubbock Arts Festival has reached record levels to become the largest fine art, fine craft event in West Texas. She is a Certified Fund-Raising Executive (CFRE) and currently serves in a leadership capacity in several organizations.

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