Category: Fundraising

Non-profit unicorns . . . have you seen one lately?

Board governance, Fundraising, organizational development

unicornAs you know, there is no such thing as a unicorn. It is a mythical creature and the inspiration for this morning’s post about various fundraising policies and procedures documents that everyone says are important but rarely exists on the front line of  many (especially smaller) social services non-profit agencies. I thought it might be a good idea to name these “unicorns” and explain what they are and why they’re important.
Before I begin, I want to give a shout out to my BFF — Michael Johnson — who is a planned giving consultant at H. Freeman Associates. He is the real motivation for this morning’s post because he posted the following comment on one of my blogs from last week titled “Your agency’s fundraising program is like an iceberg“:

“Great post, Erik! This speech underscores the importance of having good gift acceptance policies and an operating plan in place to back up our brilliant marketing. We always need to “Begin with the end in mind” and ask ourselves what we will do when our marketing campaign is successful and the prospective donor responds. Otherwise our donors may become frustrated.”

It was Mike’s reference to Gift Acceptance Policies that got my mind whirling and thinking about today’s topic. THANKS, MIKE! 🙂
Gift Acceptance Policies
Sometimes donors like to support your mission with things other than cash. In fact, I just sat through a training a few months ago where my friend Mike talked about how donors give more “stuff” than they do “cash“.
It is for this reason that gift acceptance policies are important. They spell out in advance “what you do and how you do it” with regards to gifts of stuff. In a sample policy that I recently reviewed, an agency included policies and procedures for the following types of donated “stuff“:

  • publicly traded securities
  • securities that aren’t publicly traded
  • real estate
  • tangible personal property like art, jewelry, etc
  • insurnace
  • in-kind gifts and pro bono services
  • deferred gifts (e.g. charitable gift annuities, irrevocable charitable remainder trusts, etc)
  • revocable gifts like bequests

I refer to this policy and procedures document  as a “non-profit unicorn” because I very rarely see it, and when I do it is typically larger non-profits (e.g. universities and hospitals) who have taken the time to develop them.
If you are interested in more info on gift acceptance policies, the National Council of Nonprofits has done a nice job uploading resources and samples to their site. However, please remember that policy making is a a responsibility of the board of directors. So, make sure to include them in the discussion and development of your agencies policies and procedures before asking the board to approve them.
Named Gifts Policy
Sometimes donors like to put their names on stuff, and a Named Gift Policy helps non-profit organizations with the following:

  • identifying what can be and can’t be named (e.g. buildings, rooms, endowments, scholarships, events, etc)
  • identifying the process and rules associated with naming something
  • identifying the process and rules associated with unnaming something

Our friends at the Association of Fundraising Professionals have done a very nice job making the case for why this type of policy is important and providing a number of samples and links to resources. This online article is definitely worth the click!
Again, I consider this a “non-profit unicorn” because I can count on one hand how many times I’ve seen a policy like this.
Donor database policy and procedures manual
Many non-profit organizations have donor databases, and very few of them have put into writing things such as:

  • how to input a pledge
  • how to input a gift
  • how to run solicitor reports
  • protect donor privacy (g. what can be shared and with whom)
  • how to enter donor’s names (g. Mr & Mrs, etc)
  • what information to collect and where to put it
  • how to track soft gifts
  • how to enter a new donor
  • how to track volunteers and prospects

The biggest reason this policy and procedures manual is critical is because your agency won’t always have the same person entering donor information into the database. With turnover comes inconsistency and lost institutional knowledge. Long story short . . . the lack of a policy and procedures manual for your donor database typically results in a G.I.G.O. situation (garbage in, garbage out).
Want to avoid the feeling of wanting to throw your database out the window? I suggest developing your policy and procedures manual.
I know that I sound like a broken record, but I’ve only seen a few of these in all my years of working with non-profit organizations, which is why it is a “unicorn” in my book.
Our friends at Metafile (ResultsPlus donor database) published an awesome nine page white paper that speaks to this issue. Click here to view their sample template.
Does your organization have one of these policies? If so, what was your motivation for creating it? What samples/templates did you use to get started? Are there other “unicorn documents” that you’ve heard about but never seen? Please use the comment box below to share your thoughts and experiences.
Here’s to your health!
Erik Anderson
Founder & President, The Healthy Non-Profit LLC
www.thehealthynonprofit.com 
erik@thehealthynonprofit.com
http://twitter.com/#!/eanderson847
http://www.facebook.com/eanderson847
http://www.linkedin.com/in/erikanderson847

Your agency's fundraising program is like an iceberg

Fundraising

antique documentOne of the many projects I’m currently working on involves cataloging a resource development toolbox for a client. The things I’m finding in that toolbox are amazing and include: samples,templates, whitepapers, training curricula, calculators, and even an online wizard to help with resource development planning. (Cool stuff!)
However, there is one document I consider an absolute treasure for the ages. It was a speech delivered by Mrs. Leonard (Be) Haas in 1963 to the National Council on Crime and Delinquency. The speech was titled “The 10 Basic Commandments of Successful Fundraising“.
(Note: In an effort to provide context and give credit where it is due . . . Haas was a fundraising consultant who helped launch Grizzard & Haas in Atlanta, GA which became a powerhouse fundraising firm in the Southeast United States. From what I can tell, the firm spun off into two powerful and influential firms today — Grizzard Communications and Alexander Haas, both of which are still located in Atlanta.)
After reading Mrs. Haas’ speech, I picked my jaw up off the ground and marveled at how on target she was about our profession more than 50 years ago.
While I would love to re-publish the entire speech, I’m not going to do it because:

  1. It is long
  2. While I’m fairly sure it is a public domain document (a 51 year old speech that wasn’t likely copyrighted), I want to be respectful.

However, there is one section of the speech that I can’t resist sharing. It is Haas’ fifth fundraising commandment that she titled “Consider the Iceberg”.  I encourage you to read the following passage and use the comment box below to share your thoughts.

“The actual mechanics of a fund-raising campaign all reduce themselves to very simple terms.  The job is to get the right man to make the right appeal to the right prospect for the right amount at the right time.  Guess you could call this our exclusive “Bill of Rights.” 
This objective may sound simple, but it requires as much behind the scenes planning and hard work as the part of the iceberg below the sea relates to what you see above the surface.  Getting the right people committed to work, compiling a list and evaluating the prospects so that you have the right prospects, putting those two together so that you have the right man making every important solicitation-armed with a pre evaluated request for a specific amount, this vital planning and preparation takes a lot of – time, hard work and know-how. 
John D. Rockefeller, Jr., once said, “When you have gone to all the trouble to sell a prospect on the worthiness of your project, he also has the right to expect you to answer his next question-how much should I give?”
Our experience shows that making specific, individualized requests are imperative for success.  By this we do not mean asking the prospect for X dollars.  Rather, you would say “We are seeking 19 gifts in the $5,000 to $10,000 range, and we hope you can make one of these,” or “We must have a grant of $100,000 to kick this campaign off and assure success.”
Organizing the soliciting teams, scheduling the campaign, pre-selling the prospects, backing up the solicitor with a competent office staff, these are all part of the iceberg beneath the surface of fund-raising. This thorough approach spells the difference between success and failure.”

Have some time on your hands? Click here to read the speech in its entirety.
Does your agency have a fundraising toolbox? If so, what is in it? Is there something in it that you believe everyone needs in their toolbox? What is it? Would you like to share it? Please use the comment box below to share your thoughts and experiences. Please also share your reaction to the snippet from Haas’ 1963 fundraising speech.
Here’s to your health!
Erik Anderson
Founder & President, The Healthy Non-Profit LLC
www.thehealthynonprofit.com 
erik@thehealthynonprofit.com
http://twitter.com/#!/eanderson847
http://www.facebook.com/eanderson847
http://www.linkedin.com/in/erikanderson847

Non-profits are using digital videos to say THANK YOU

Donor-centered fundraising, Fundraising, technology

It is well documented that non-profit organizations need to 1) show gratitude, 2) prove that a contribution is being used in the manner it was intended, and 3) demonstrate impact in order retain a donor. This could be one reason why some non-profit organizations are starting to produce online videos to say THANK YOU to donors.
When you think about it, video is a great medium to “show” people all sorts of things including the three elements of stewardship that I just mentioned. Additionally, the low-cost (virtual no-cost) of digital videos makes this an irresistible activity for many non-profit organizations.
The following is a video from the Boys & Girls Club of Lorain County, and it was produced by the kids for Lebron James:
Lebron
The next video is from the same organization, and the donors being thanked are a church congregation:
House of Praise
After a little clicking around online, fellow blogger and non-profit marketing guru– Kivi Leroux Miller — wrote a similar post almost a year ago titled “A Few Great Thank You Videos” with a number of fabulous links to videos.
If your organization is interested in trying its hand at directing a “thank you video,” you might want to check out the following resources:

Is your agency starting to use digital technology to steward donors? If so, what have you learned? What feedback, if any, have you received from donors? Please scroll down and use the comment box to share your thoughts and experiences.
Here’s to your health!
Erik Anderson
Founder & President, The Healthy Non-Profit LLC
www.thehealthynonprofit.com 
erik@thehealthynonprofit.com
http://twitter.com/#!/eanderson847
http://www.facebook.com/eanderson847
http://www.linkedin.com/in/erikanderson847

Putting your donors' names on stuff

Fundraising

naming1I was on the phone with an old friend a few days ago, and our conversation turned to two naming opportunities with which he was struggling. One situation dealt with naming his agency’s golf outing after an aging volunteer who is the central organizing force behind the event. The other situation pertained to a planned giving prospect who is contemplating the possibility of leaving a very large legacy gift.
For me, the big question isn’t whether or not to name something after a donor. The BIG QUESTION is whether or not you’re ready to go down that road?
Not sure what I mean by this? Consider the following . . .
Naming opportunities are endless. The following are just a few suggestions to get your creative juices flowing:

  • Annual campaign giving levels
  • Donor recognition societies
  • Memorial fund
  • Tribute fund
  • Endowment fund
  • Scholarship fund
  • Event sponsorships
  • Program sponsorships

Moreover, there are all sorts of vehicles you can use to affix people’s names to things:

  • Plaques on rooms
  • Signs on buildings
  • Engraved bricks
  • Wall art (e.g. giving trees)
  • Electronic signage
  • Website opportunities
  • Print materials (e.g. program books, campaign materials, etc)

naming2Finally, have you thought about the permanent nature of putting someone’s name on something and what happens when life throws your agency a curveball? If I’m being too cryptic at this time in the morning, I want you to think about what you would’ve done if you had accepted large donations with naming opportunities from either of these infamous gentlemen:

  • Bernie Madoff
  • Jerry Sandusky

I probably could’ve created a list of infamous names as long as my arm, but I’m only on my second cup of coffee this morning and I think you get the point.  😉
Before your non-profit organization starts talking about naming opportunities with a donor, you really need to answer the following questions:

  • what will we name and what won’t we name?
  • how will we and how won’t we affix names to stuff?
  • what are rules will we put in place around important issues such as: sunset provisions, procedures for removing names, who has the final say-so and how does that decision get made, etc

In my opinion, this becomes a great policy project for your organization’s resource development committee (e.g. Named Gift Opportunities Policy, Donor Recognition Policy, etc)
I’ve done a little research for you this morning and found a handful of documents and samples for your consideration.

Has your agency been down this road? What did you do? Did you approach it as a policy writing opportunity? If so, what type of policies did you write? Please use the space below to share your thoughts and experiences.
Here’s to your health!
Erik Anderson
Founder & President, The Healthy Non-Profit LLC
www.thehealthynonprofit.com 
erik@thehealthynonprofit.com
http://twitter.com/#!/eanderson847
http://www.facebook.com/eanderson847
http://www.linkedin.com/in/erikanderson847

Seeking your input on donor databases and QuickBooks Online

Fundraising, technology

data integration1One of my many jobs in this world is being the webmaster and community manager for a large national organization’s resource development website, which essentially acts as a fundraising toolbox for their local affiliates. One of the many functions of the website is an “Ask the Expert” service where front line staff can ask resource development questions and receive an answer in approximately 24 hours. A few weeks ago a question was asked about donor databases and QuickBooks Online. While I’m happy with our answer, I’m wondering if there isn’t more advice that could’ve been provided.
So, this morning I’m inviting all of you to become one of our “experts” and weigh-in with advice that will help round out the response that was originally provided.
The Question

“I am looking for guidance on purchasing a donor management system. We currently use QuickBooks online version and are having difficulty finding a solution that will integrate with the software. Are there any solutions out there that are recommended?“

The Answer We Provided

There is a great workbook in The Vault titled “Getting the Most from Your Decision: Four Steps to Selecting Donor Management Software.” It is located in the Donor Management Guides section where you will find many more interesting resources that can assist you in making a sound decision.
It sounds like your organization has ranked data integration with your QuickBooks Online account as a high priority. As you move from the second step of your search process (e.g. prioritizing) to the third step of the process (e.g. deciding), you will end up:

  • engaging a variety of companies
  • viewing many product demonstrations
  • using your list of preferred functions and features to screen your options

I encourage you to walk this path with other people (e.g. preferably other system users and individuals who will be impacted by this decision).
With all of this being said, it sounds like you are following this process and disappointed in how few options exist when it comes to data integration with your QuickBooks Online account.
The national organization has a policy that prohibits me from recommending specific products. So, please do not construe any of the following information as a recommendation.
After some preliminary investigating, it looks like the following two donor database products offer the feature that you’re looking for:

I also found an online service called itDUZZit which seems to work with DonorPerfect in the cloud to configure and integrate your data with QuickBooks Online. You should check into the willingness of this company to create other bridges for other products. From what I saw on their website, this might be an option.
It is important to note that I have no experience using DonorSnap and itDUZZit, and I have very little experience with Donor Perfect. Again, please don’t view any of this as a recommendation to purchase those products. I am simply suggesting these options might be worth further investigation.
However, I am recommending the following:

  • Keep looking . . . Google is a great resource and so are all of the articles located in The Vault
  • Identify other non-profit agencies in your community who use QuickBooks Online and ask them if/how they bridge their systems
  • Think outside of the box . . . many cloud-based database systems have export features that give you what you need to upload to QuickBooks Online (and being OK with a few extra clicks might expand your database search options)
  • Don’t lose sight of the fact that data integration is likely only one of many functions and features that you desire. While integration with QuickBooks Online is obviously at the top of your list, I encourage you to guard against letting it blind you from your other functions and features needs.

In researching your question, I reached out to Nancy Guthrie who is the owner of Business Matters, an accounting firm who works with many non-profit organizations like yours and has experience with QuickBooks Online. Here is what she had to say:
“Time marches on and there are solutions . . . there are many external softwares that now integrate with QuickBooks online.  I googled “Quickbooks online donor integration” and hit the choice below (DonorSnap). I am sure there may be others.  I support looking at all of the online solutions for data and accounting. It is where the attention is and gives the most flexibility and most modern choices and connections to time and communication tools.  The integration with QuickBooks Online has come a long way!”
In a second email, she added this:
“At this point, reverting to a desktop-based accounting software will NEVER get my vote — no matter the integration.  The amount of the transaction entry time for deposits saved will never make enough difference to change the accounting away from the Online version, which is so perfect for non-profit organizations.”
I hope this helps. If you have additional questions, please feel free to come back and “Ask the Experts”.

And now . . . the rest of the story?
data integration2OK . . . you’ve had a chance to read the question and answer. What additional advice would you have provided? Do you use QuickBooks Online and a donor database with a data integration bridge? If so, what can you tell us about the data bridge and the database (or CRM)?
Please scroll down and share your thoughts and experiences in the comment box below. I will happily pass your thoughts along and possibly even append the response that we uploaded to the website.
Similar to Tuesday’s post about revising a whitepaper/brief, I’m asking you to “pay it forward” today.
Here’s to your health!
Erik Anderson
Founder & President, The Healthy Non-Profit LLC
www.thehealthynonprofit.com 
erik@thehealthynonprofit.com
http://twitter.com/#!/eanderson847
http://www.facebook.com/eanderson847
http://www.linkedin.com/in/erikanderson847

Why people do and don't donate to your non-profit agency

Fundraising

why1There has been lots written throughout the years about the psychology of philanthropy. Most of the stuff I’ve read has been right on target with regards to why people open their wallets/purses and give money to a non-profit organization. I’ve been asked to revise a whitepaper titled “Why People Do and Don’t Give Money” for a national organization’s online fundraising toolbox to which their local affiliates have access. So, I thought I’d ask you and the rest of the DonorDreams blog community for a little help this morning. Would you please be so kind and give me one minute (or less) of your time at the end of this post?
The fundraising whitepaper starts off with this simple opening paragraph that frames the rest of the document:

“Knowing what motivates donors to make a philanthropic gift helps you determine where your prospect falls in this spectrum. Once you understand where they are coming from, you can plan your solicitation strategy accordingly.”

The following are just a few of the 17 bullet points listed, explaining the motivations of some donors:

  • They have a need to be philanthropic, to do good
  • They like your organization’s mission and believe in your cause
  • They like making a difference
  • They like and have respect for the solicitor
  • They are asked to give!

Then there is a list of another 11 bullet points listing reasons people don’t make donations. Here are three of the reasons provided:

  • They are pressured in any way
  • They are promised any kind of favor in return or there are strings attached to their gift
  • They do not have the money at the moment

Here is where I’m asking you to please take a minute out of your busy day and help me with this small project. Please scroll down and answer the following two questions in the comment box below:

  1. Please share one reason you suspect people donate to your agency. (e.g. something that motivates the donor to contribute)
  2. Please share one reason you suspect donors won’t give to your agency. (e.g. a strategy you don’t use because you know it doesn’t work)

I will take your responses and weave it into a beautiful resource development tool for countless other fundraising professionals to use.
Why should you do this?
Simply stated, this is your opportunity to pay something forward today. Many of us have been the recipients of awesome coaching and mentoring from other professionals along our career paths. I believe those “debts of gratitude” should be repaid joyfully every time the opportunity presents itself.  🙂
Here’s to your health!
Erik Anderson
Founder & President, The Healthy Non-Profit LLC
www.thehealthynonprofit.com 
erik@thehealthynonprofit.com
http://twitter.com/#!/eanderson847
http://www.facebook.com/eanderson847
http://www.linkedin.com/in/erikanderson847

Time to start writing your 2015 resource development plan

Fundraising, Planning

fred the bakerAfter spending a nice long Labor Day weekend in Michigan at a friend’s summer cottage on Saginaw Bay, I am now faced (as are you) with the long slide towards the end of the year. Not only can I not wear white clothing now that Labor Day has come and gone, but my fundraising friends should be starting to engage board, staff and fundraising volunteers in developing their agency’s written 2015 resource development plan.
The process of engaging all necessary stakeholders in this process can oftentimes feel like that old Dunkin’ Donuts commercial featuring “Fred the Baker” who was famous for saying “Time to make the donuts!”
Additionally, some fundraising professionals complain that the process can be complicated and confusing.
With all of these things in mind, I decided to commit this morning’s blog post to providing you with resources, samples, templates and worksheets to hopefully make this exercise a little easier this year.
However, before we start, let’s review why writing your agency’s annual written fundraising plan is so important:

  1. It mirrors the creation of your agency’s operating budget, providing board members with the necessary strategies and explanations behind the revenue numbers they see in the revenue budget.
  2. It provides fundraising professionals an opportunity to “engage” their co-workers, board members and fundraising volunteers (e.g. as Jim Collins talked about in his book,  “From Good To Great,” getting the right people on the bus and in the right seats).
  3. It provides clarity around the goals, strategies and tactics necessary for success in the upcoming year.
  4. It allows you to take a step back and see the “forest through the trees” before plunging into another series of campaigns, events and set of fundraising activities (e.g. grant writing, cultivation, stewardship, etc).

Of course, plans come in all sorts of different shapes and sizes.
strategic planning implementationHaving two degrees in planning, I tend to get overly excited about developing plans, and some of my past resource development plans have been 50 and 75 pages in length (Yeah, I have gotten carried away). Those plans included elements such as:

  • statement of fundraising purpose (e.g. big picture case for support document)
  • goals
  • strategies
  • tactics (e.g. action plans for each strategy)
  • comprehensive fundraising calendar
  • resource development policies
  • range of gift charts
  • prospect lists of volunteers broken out by campaign/event
  • prospect list of donors broken out by campaign/event
  • budgets
  • toolkit in appendices with resources such as job descriptions, GRPIs, committee charters, etc

Before you contemplate going to the roof and throwing yourself off of it, please understand that it doesn’t have to be this way.
I recent purchased a copy of Pamela Grow’s e-book “Simple Development Systems: Successful Fundraising for the One-Person Shop“. Her book is a wonderful reminder of how your annual written fundraising plan doesn’t need to be much more than a one page summary sheet that ties back to a series of simple worksheets focused on:

  • grant writing
  • growing individual donors
  • public relations and donor stewardship
  • website and social media
  • how to tell your agency’s story

Regardless of what your plan looks like, I’ve scoured the internet this morning looking for resources to help make your planning experience a little easier this year. Please take a moment to click-through and review some of these samples, templates, and worksheets. I promise you won’t be disappointed!
First, if you have the time, I found this one hour long YouTube video from Emily Davis at GiftWorks on “Creating a Resource Development Plan“. It’s a great resource to frame your journey if you have the time. You might want to also share it with your fundraising volunteers before inviting them to their first planning meeting.

The following are samples and templates you might want to check out (because Stephen Covey always says “Begin with the end in mind.)

Oftentimes, national organizations like Boys & Girls Clubs of America produce samples and worksheets to help their local affiliates with their resource development planning process. Here are two links I think you will find useful:

Is your organization starting its resource development planning process for 2015? What are some of the considerations you’re looking at? What resources do you use to help frame this important process? Please scroll down and share your thoughts and experiences in the comment box below. We can all learn from each other.
Editorial note: Since this blog post was published, it went on to become one of the most popular posts in 2015. Seeing this level of interest, we developed a five part series focused on how to develop your organization’s annual resource development plan. Here are links to those posts:

Here’s to your health!
Erik Anderson
Founder & President, The Healthy Non-Profit LLC
www.thehealthynonprofit.com 
erik@thehealthynonprofit.com
http://twitter.com/#!/eanderson847
http://www.facebook.com/eanderson847
http://www.linkedin.com/in/erikanderson847

Ice Bucket Challenge: You know you've gone viral when . . .

Fundraising

going viralJeff Foxworthy has made a career out of answering a simple question: “You know you’re a redneck when . . .”  This morning I thought I’d do something similar with: “You know you’re fundraising campaign has gone viral when . . .” by describing how last week unfolded for me as it relates to the ALS #IceBucketChallenge.
Monday, August 18th
I am getting ready for bed and the local news is on my television. Before cutting away to commercial, the news anchor teases an upcoming segment. The video footage shows someone dumping a bucket of cold water over their head.
I turn the TV off and think to myself “What kind of stupid person dumps ice water on themselves, and how in the heck is that newsworthy?”
Tuesday, August 19th
I’m in Rockford, Illinois having lunch with a non-profit executive director. Towards the end of the meal, he starts to lament about how he wishes his national office had the foresight to innovate something as creative as the “Ice Bucket Challenge.”
I must have looked stupefied because his next question to me was: “You’ve heard about this fundraising campaign, right?”
When I told him that I had no idea what he was talking about, he proceeded to fill me in on the details.
Wednesday, August 20th
lightning in a bottleFellow blogger and fundraising genius — Jeff Brooks — publishes a blog post titled “What a weasel is going to tell you about the Ice Bucket Challenge“.
I forward it along to the executive director in Rockford with whom I just had lunch along with a few other fundraising friends with an “Amen” and” Hallelujah” because Jeff does a nice job of hitting the nail on the head when he says:

“The problem is the Lightning Factor. ‘Lightning’ has to strike for a campaign to go viral. And nobody has control over the lightning.”

On a side note, I’m beginning to see my Facebook feed fill with friends who are all dumping buckets of ice over their heads, making a charitable contribution to ALS, and challenging others to do the same.
I also saw on Google+ that my friend, Marissa Garza, had written a blog post titled “Haters Gonna Hate: Ice Bucket Challenge Edition.”
This is then first time I remember thinking “Uh-Oh . . . I wonder if someone is going to challenge me since fundraising and non-profit consulting is my line of work?”
Thursday, August 21st
ALS icebucketchallenge1The day is winding down. The television is on, we’re into what will likely be the last show of the evening before going to bed, and my phone starts to blow-up. Needless to say, one of my former Boys & Girls Club of Elgin board presidents and good friend, Tim Williams, just completed the ALS #IceBucketChallenge, and I was one of three people he challenged.
My first reaction was: “I should’ve seen this coming sooner.”
My second reaction was: “Yippee! I get to do something fun for charity and gain my 15 minutes of online fame by joining my friends in doing something crazy and for a good cause.”
My third reaction was: “What if I do this thing wrong? I don’t want the world to laugh at me. I better do some research. What will I say? Who will I challenge? How much should I donate?”
I immediately go to Google+, dig up Marissa Garza’s blog post on “Haters Gonna Hate: Ice Bucket Challenge Edition,” and start my research.
Friday, August 22nd
I get it all figured out, and I take the challenge on my deck in the backyard. I dedicate my challenge to one of my very best friends — Jim Chambers — whose father lost his battle with ALS a number of years ago. I immediately come inside to my computer and donate $100  to ALS using their online donation page.
I bask for hours in the warm glow of philanthropy because the entire exercise from dumping ice water on my head to making the contribution felt really awesome and fulfilling.
Click here to check out my ALS #IceBucketChallenge video:
https://www.youtube.com/watch?v=yZZTsR23VlU&feature=em-upload_owner#action=share
Later that evening, we attended a Kane County Cougars game with a friend and his children. His 10-year-old son, Mitch, was buzzing with excitement about getting called out by a friend to do the ALS #IceBucketChallenge.
I made the mistake of assuming that Mitch was just being a 10-year-old and getting all excited about the act of dumping ice water on himself and mugging for the camera. I quickly learned how wrong I really was, when I asked Mitch if he planned on making a small donation from his piggy bank to the ALS Foundation. The following response warmed my heart:

“No, I have a bank account and I’m trying to decide whether to donate $50 or $100.”

It was at that moment I realized the complexity of ALS #IceBucketChallenge. All of the following things seem to be going on simply as a result of a bucket of ice:

  • The ALS Foundation is raising a ton of money . . . last story I saw indicated this campaign has crested $110 million
  • There is a flood of new donors surging into the ALS Foundation’s donor database systems . . . it will be interesting to see what resource development strategies they employ to steward and retain these donors.
  • Millions of people are self-educating themselves about ALS.
  • The non-profit sector has another successful online fundraising campaign to evaluate as a case study.

My takeaways
I find myself marveling at how I experienced something so viral. I literally went from knowing nothing about this online fundraising campaign early last week to participating in it at the end of the week. If I had to describe what I felt, I would simply use the words “tidal wave” to describe the experience.
To Marissa Garza’s point, I am not a hater. I am intrigued by what is happening, and I am excited to see so many people get into philanthropy (especially when it comes to teaching kids about the power of philanthropy).
However, I totally agree with Jeff Brooks when talks about how non-profits are better served in focusing on fundraising basics rather than trying to catch lightning in a bottle by trying to duplicate the ALS #IceBucketChallenge.
What is your agency doing when it comes to resource development in the wake of this online campaign? Are you trying replicate it? Are you ignoring it and focusing on other fundraising basics and best practices? Or are you trying to find the next wave to ride? Please scroll down and share your thoughts in the comment box below because we can all learn from each other.
Here’s to your health!
Erik Anderson
Founder & President, The Healthy Non-Profit LLC
www.thehealthynonprofit.com 
erik@thehealthynonprofit.com
http://twitter.com/#!/eanderson847
http://www.facebook.com/eanderson847
http://www.linkedin.com/in/erikanderson847

Donor stewardship postcards? They work!

Fundraising

UIUC student unionI have a confession to make. For years, one of the ideas I’ve shared with clients is that a postcard can be an effective stewardship strategy. The truth is that I’ve doubted the effectiveness of this strategy primarily because I had never seen it done well. Today, I’m able to say that I’ve seen the light and officially have become a believer thanks to my alma mater — University of Illinois (UIUC).
Let’s take a moment to review . . .
Back in December, I blogged about how the University of Illinois finally convinced me to make a contribution to the annual fund. I explained in that post how my first gift had been a long time in the making. Click here to read about the initial solicitation, the rejection, the expert use of donor management systems and the persistence involved in securing gift number one 20 years later. It really is a great story in fundraising persistence.
At the end of my December post, I said this:

“For the record, I am excited to now see how the university stewards its donors. Stay tuned!”

It shouldn’t be a surprise that the fundraising professionals at UIUC are good at stewardship. Here are just a few of the stewardship strategies they’ve used on me:

  • an automated gift acknowledgement letter
  • another letter from the Department Head  with a little handwritten notation on the letter
  • a letter from the President of University thanking me for my support and updating me on what’s been going on since I made my contribution
  • a number of different email communications
  • a postcard with some many different subtle (and not so subtle) messages

Have you done the math yet? I made my contribution in mid-December. It is mid-August and I’ve probably already received between five and seven stewardship pieces and countless marketing impressions with targeted messaging all designed to secure a second charitable contribution.
It was this last stewardship piece that convinced me that postcards can be an affordable and effective strategy for donor stewardship. I scanned the front and back of the postcard and inserted them below for your viewing pleasure.
UIUC postcard front
This is the front of the postcard. Here are some of the things that jump out at me:

  • The content of the picture conveys a happy graduate and implies that my support helped make her future very bright.
  • The picture also features the most iconic and powerful image that every UIUC graduate loves — Alma Mater. Every graduate I know has some story and happy memory associated with this statue. Just seeing it again on the front of the postcard brought a smile to my face and fond memories flooding back.
  • The two simple words — “Thank You” — are printed on the front of the card. In combination with the words “Illinois Annual Fund” in the lower right hand corner, I don’t even need to turn the postcard over to understand what they are trying to communicate to me.

A picture is worth a thousand words and this stewardship postcard exemplifies this in spades!
UIUC postcard back
This is the back of the postcard. There are 165 words used in the  letter. Here are some of the things that jump out at me:

  • I am updated and told what my charitable contribution is doing (In reality, my gift was made to a department scholarship fun, but that doesn’t stop them from giving me credit for lots of other great things)
  • I am thanked again in gracious tones
  • They specifically recognize that I was a first time donor (so this postcard is obviously targeted)
  • They specifically recognize that my first gift was secured as part of a solicitation to support the Department of Urban & Regional Planning
  • They tell me how I can make a second gift online (this time to the annual fund). Obviously, this stewardship tool is also a cross-channel  ePhilanthropy solicitation tool. It is also a crossover strategy to move me FROM a donor restricted gift to a departmental scholarship fund  TO the annual fund.
  • The words are few, but they are powerful and emotional. They are purposely used to repeated hit my heart. Here are just some of those emotional words and phrases: generosity, impact, invest, choosing, transformational, discovery, innovation, friends, makes a difference, shape the future, etc

We can learn a lot from this stewardship postcard. What do you see? What impressed you? What ideas are you walking away with and plan to incorporate into your next stewardship postcard? Please scroll down and share your thoughts in the comment box below. We can all learn from each other.
Here’s to your health!
Erik Anderson
Founder & President, The Healthy Non-Profit LLC
www.thehealthynonprofit.com 
erik@thehealthynonprofit.com
http://twitter.com/#!/eanderson847
http://www.facebook.com/eanderson847
http://www.linkedin.com/in/erikanderson847

Fundraising lesson learned at a lemonade stand

Fundraising

lemonade1Last week I was walking our dog, Betrys, when I came across a lemonade stand in my neighborhood. A mom was helping her two young sons set-up as I approached. It was in that moment that the 3-year-old boy learned a valuable lesson that every fundraising professional learns sooner or later in their career. So, I decided to take a minute to blog about it this morning.
As I approached, we exchanged pleasantries and I complimented the boys on how nicely their roadside stand was coming together. Without missing a beat, the 3-year-old asked me if I wanted to buy a refreshing drink.
Unfortunately, I had left my wallet at home and I explained that I didn’t have any money to make a purchase. I wished them lots of luck and continued walking the dog.
As the dog and I continued on our way, I heard the youngest boy in a distressed voice ask his mother:

“Why didn’t the man stop and buy our lemonade?”

Of course, his mom had to explain in “kid terms” what just happened:

  • It takes money to make a purchase
  • I didn’t have any money
  • Not everyone will want to buy lemonade that day for reasons including lack of funds or in some instances not having a taste for what they were selling

Wiser words have never been spoken, and that boy just learned something that every fundraising professional eventually learns if they practice their craft for long enough.
The fundraising lessons are layered:

  • Not everyone will have the financial means to support your non-profit when you ask, but no doesn’t necessarily mean “never” . . . it might just mean “not now“
  • Just because someone has the financial means to make a donation, doesn’t mean they will be inspired by your mission or case
  • Not everyone is going to donate and that is OK … it isn’t our job to beat the money out of them

lemonade2Our job as fundraisers is to understand the rules of engagement when it comes to fundraising:

  1. We need to have a good case for support
  2. We need to identify people who care about that case
  3. We need to develop many channels for people to give because not every giving opportunity will be convenient or desirable to every donor
  4. We need to tell our story well — with emotion and passion
  5. We need to not let the donor who takes a pass on buying our “lemonade” bum us out and impact the next opportunity

What other lessons do you think can be drawn from this lemonade stand experience? How does your agency translate those lessons into fundraising practices? How do you infuse these things into your organizational culture and pass them down from fundraising professional to fundraising professional?
Please scroll down and share your thoughts and experiences in the comment box below. We can all learn from each other.
Here’s to your health!
Erik Anderson
Founder & President, The Healthy Non-Profit LLC
www.thehealthynonprofit.com 
erik@thehealthynonprofit.com
http://twitter.com/#!/eanderson847
http://www.facebook.com/eanderson847
http://www.linkedin.com/in/erikanderson847