News Items

March 20, 2009

Karen Fabean, President and COO of Dunn Associates, recently prepared an excellent article for NABPAC members providing savy advice to PAC Managers about soliciting during this economic downturn.  We have reprinted the article with the permission of the National Association of Business PACs (NABPAC).

Rabbits & Magic Acts

Prepared for NABPAC’s PACHelp Hotline by
Karen Fabean, President & COO - Dunn Associates

I’ve always wondered how a magician pulls a rabbit out of a hat. It sure makes a good analogy for how the federal government hopes to pull our nation’s economy back from the brink of the
most severe depression it has experienced in over 75 years.

Like the magician and the rabbit, the government can produce money out of thin air.Unfortunately, fundraisers—of any stripe or cause—cannot. In these hard times, raising money is difficult for any group—and perhaps especially for a political action committee.

In 2009, some PAC professionals may be looking for a magic act that will prop up receipts, minimize attrition and keep participation levels on an upward trend. Unfortunately, there is none.

There are ways to grow or maintain a healthy PAC in this economy, but, you must adhere to several key principles.

Don’t hide. In the cartoon, Dilbert’s boss has been known to hide his head in a hole until a bad situation goes away. If your PAC does this, you will lose more donors than you care to count and, when the good times return, you will have to work just that much harder to get them back.

Double the number of times your PAC thanks its donors. Some fundraisers use a rule of seven times per year. Research has shown that people don’t stop giving because the Dow Jones is down; they stop giving because they don’t like the way they are treated by the organizationsthey support! Saying “thank you” is a powerful fundraising tool, and it doesn’t have to cost a dime. Use it well.

Don’t ignore the #1 issue. When your PAC communicates with donors and potential donors, acknowledge the difficult economy and the hard choices they have to make as a result. Be relevant. Put yourself in their shoes and then make the case for their support of the PAC.

Strive to build more trusting relationships with your donors. You need your current donors more than ever. Cultivate them. This means that a PAC’s communications must be as open, transparent and timely as possible. It also demands the PAC to be authentic—don’t post a link to the FEC website for donors to figure out what the PAC is doing. Give them solid, useful facts and information.

Accept the fact that most people who have not heard about or paid attention to the PAC in the past are not likely to join the PAC this year. Your most likely donors already know about the PAC, donate to it or have considered donating to it. In a time when many are cutting back, those who don’t have a clue about the PAC are not likely to add it to their budgets. Target limited dollars in your own PAC budget to those who are most likely to respond, and find inexpensive ways to communicate with non-donors to build their awareness and understanding.

Change the messenger. Think about how to create more personal appeal and interest for your PAC. Can you change the format of your newsletter to a newsy missive from you or the PAC chair? If you always use your CEO to launch a campaign message, why not do it with several testimonials from long time supporters instead? The fact that they are remaining in the PAC this year may have a greater impact on recipients.

Change the medium. If your membership campaigns are carried out via print or electronic communications, try adding a video message or an educational, live webcast. If you can’t do a broad-based, peer-to-peer campaign, target a limited effort to your most likely and largest donors.

Remember—“It’s the economy, stupid.” The most difficult and most important thing you cando is develop and communicate a message to donors and potential donors that will “stick.” Who delivers it and how it is delivered are secondary. You must build a case for the PAC that cuts through people’s doubts about government and the economy and demonstrates real value to their personal well-being. The message used by some other organization is unlikely to be the messagethat resonates with those in your organization either.

Innovate. It’s said that more entrepreneurs emerge in troubled economic times than in any other period. Maybe, to paraphrase the Greek philosopher Plato, “necessity is the mother of invention” and PAC professionals can take a cue here. Here are some innovations (recycled and otherwise) to think about: lower the suggested range of giving on the enrollment card; offer a recession giving rate for 2009 (some are trying $20.09 per month); offer a trial, 3-month membership via payroll deduction; or set up a one-time PAC-match program just for this year. Finally, contact those who drop their membership and give them an opportunity to stay at a bargain donation rate (e.g. $1.00/week) during 2009, because the number of people involved is as important as the amount they give.

None of these principles involve magic but, if you incorporate them into your PAC’s communications and fundraising efforts this year, you may achieve some magical results.