Recession strategy: Look for ways to save money on fund raising

The San Diego Zoo is cutting costs on direct mail and special events by renegotiating contracts with its vendors and turning its live auction of donated items into an online auction.

The zoo is also making efforts to reach out nationally in its solicitations, thereby lowering the costs of raising each dollar. For example, by adding an online component to its “Cans for Critters” campaign, in which children in and around San Diego raise money by collecting and recycling cans, the zoo plans to reach out to schoolchildren nationwide. They will now be able to use the zoo’s Web site to register and log their progress in a contest to see who can collect the most cans.

KERA, a Dallas public-broadcasting station, is starting a “green membership program,” giving donors the option to receive all communications online rather than through direct mail. The station touts the new program as an environmentally friendly way to keep costs down, while also ensuring that a greater portion of members’ donations go to programs.

The station began another online effort six months ago by creating a multimedia section on its Web site called Art&Seek. The new section, which highlights cultural affairs, has already produced a pledge of $25,000 from one supporter who wants to aid the station’s arts coverage. The section features news reports, a blog, and a calendar of arts events in North Texas; it received 72,000 page views in December and has raised another $5,000 in online donations.

Meanwhile, some charities are looking at ways to eliminate events and other activities that are not making much money, given the time and effort they consume. “Now is a great time to get rid of sacred cows that are not cost effective and should have been killed a long time ago,” says Bruce Flessner, a Minneapolis fund-raising consultant. “If you have a special event or a special giving club that people make a big fuss over, take advantage of a tough budget to say, ‘We can’t afford to do this anymore.’”

But getting rid of fund-raising efforts can be tricky, consultants say. Charities must be careful not to cut efforts that might show little payoff now but will matter a lot in the long run. For example, some charities want to hold off on seeking bequests, since such gifts can take many years to materialize. But bequests are among the largest single gifts that many charities receive, note fund-raising consultants.

— Holly Hall and Paula Wasley