Fundraising – Page 34 – The Healthy Non-Profit

Want to change your non-profit organization? Then change your people!

May 4, 2012 DonorDreams Board development, Fundraising, organizational development, Planning, volunteers

Welcome to O.D. Fridays at DonorDreams blog. Every Friday for the foreseeable future we will be looking more closely at a recent post from John Greco’s blog called “johnponders ~ about life at work, mostly” and applying his organizational development messages to the non-profit community.

Today, we’re focusing on a post that John titled “Burn the Boats“. In that post, he talks about two different theories of change. One school of thought advocates that changing behaviors drives organizational change. The other school of thought speaks to the idea of changing the environment / structures to affect organizational change. I just love the story John shared in the beginning of his blog post by Napoleon Hill. If you have a little time today, I strongly encourage you to click-through and read Burn the Boats.

I see non-profit organizations struggle with this ALL THE TIME. One classic example that I’ve witnessed (and have seen over and over again) is how many agencies develop a resource development plan and then go about trying to implement it.

One example that bubbles to the top of my mind is an agency that was heavily dependent on a special events strategy to raise money. They were running a special event fundraiser every other month. After completing a resource development planning process, they came to see how damaging those activities were. They decided to cut the number of events in half and pivot strongly to an individual giving strategy focused heavily on person-to-person solicitation tactics.

One big challenge was that the agency’s staff were all event minded people. They were hired because of their skill sets and experiences in planning, implementing and evaluating fundraising events. Another big hurdle was that their board of directors and fundraising volunteers were all events people, too.

To John’s point in his post “Burn the Boats,” the organization tried to persevere with its people. It asked for technical assistance from its national office. Of course, they invested in training opportunities.

In the end . . . Do I really need to finish this sentence???

I’m with John . . . BURN THE BOATS!!!!

Jim Collins in his book “From Good To Great” talks about getting the right people on the bus and then finding the right seat for them. In situations like the one I just described, I think there are ways to have polite conversations with volunteers about finding a new seat for them on the bus when the environment on the bus starts changing.

As for staff, there are two options if you’re going to “Burn the Boats”. You either gracefully terminate staff (providing severance packages, etc) or you hire more staff with the skill sets you need to implement the new plan (and find new things for the old staff to do).

I suppose there are other less harsh ways to still “burn the boats”. For example, you can ask your biggest annual campaign donor to change their annual support from an outright contribution to a challenge gift. However, this still doesn’t change the fact that there are people being asked to do something they don’t have experience or well-developed skills to do.

I respect that this is a tough post with which to start your weekend. Sorry! Do you think John and I are being too harsh? Are there better ways to go about affecting change? Do you have any examples of change at your organization that you’d like to share? Please take a moment to weigh-in using 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
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http://www.linkedin.com/in/erikanderson847

Know when to stop chasing the great white whale

May 3, 2012 DonorDreams Fundraising

I’ve done it. We’ve all done it. I’m, of course, referring to the act of chasing that big philanthropist in your community.

Every community has a small circle of very generous philanthropists. They have the financial capacity to give, and they support their favorite charities in ways that the average donor (like you and me) can only dream of doing some day.

From the outside looking in, fundraising and non-profit professionals start fixating on strategies to engage those individuals in our mission and our organization. It looks something like this:

looking at who (if anyone) in our agency’s circle of friends has access to that donor’s network;
engaging other people from that philanthropist’s social network in activities associated with our non-profit organization; and
inviting that philanthropist to get involved (e.g. attend an event, take a survey, participate in a focus group, or even volunteer some time).

All of this is called “CULTIVATION” and it is indeed a fundraising best practice; however, sometimes after all of this work the prospect doesn’t turn into a donor. There is no “magic moment”. There is no pledge card or check.

One of the most important skills for fundraising professionals to possess is to know when to stop cultivating and move onto greener, more promising pastures. If you’re unable to do this, then you end up spending lots of time (which is a limited resource) on something that will have no return on investment for your organization.

So, how do you know when to stop? Well, I think we can learn a lot about this by looking at it through a “relationship” lens.

View a Vlog post titled “They’re Just Not That Into You” by someone using the handle “DeniseActutallyVlogs” on YouTube. Sure, she is talking about dating rituals, but how different is that really from fundraising and resource development.

Caution: Denise is a little “salty” at times during her Vlog post, but it is mostly PG-rated stuff. I encourage you to listen to what she has to say and translate it into the language of fundraising. I think there are more than just a few nuggets of wisdom.

How have you guarded against chasing the great white whale? When do you know it is time to stop cultivating an individual and move along? Please scroll down and use the comment box to share a tip or two with your fellow non-profit friends.

Here’s to your health!

Expounding upon the idea of “Quality Donor Touchpoints”

May 2, 2012 DonorDreams Fundraising

Yesterday’s post titled “Non-profit donors: “Should I stay or should I go?” built upon a recent post over at “The Agitator” blog about donor retention. One of the things they said was that retaining donors goes way beyond doing a good job of talking about your mission and your organization. They argued that every touchpoint needs to be quality and inspire a sense of satisfaction for donors.

To put this in context, let’s use a for-profit analogy.

When a consumer goes to Walmart to buy towels, their experience is affected by so much more than just the satisfaction of finding the towels they desire at the price they want to pay. While these are indeed two factors, the following things also influenced that experience and play into whether or not they come back to Walmart next week:

Was the store orderly and easy to navigate?
Was the store well-lit?
Was the physical environment too warm, too cold, or just right?
When they couldn’t find the towels that they were looking for, did the employee who helped them do so in a friendly and efficient manner?
Did the store smell nice?
Did the other customers behave and conform to the social norms of shopping?
Did the shopping cart wheels stick and make it difficult to use?
How much time did customer spend in the check-out line?
Was the cashier friendly and helpful?

There are countless other little details that when added together can result in a great experience which results in repeat business and customer loyalty. Or they can also add up to an unsatisfied customer who won’t return, but will likely bad mouth you to their friends and post horrible things about you on Facebook and Twitter.

The same holds true for your donors!

Non-profit donors need to hear more than just good news about your mission and programs. They also need to hear more than how efficient your organization operates.

Your non-profit organization’s goal needs to be “putting a smile on the donor’s face” every time you cultivate them . . . every time you solicit them . . . and every time you steward them.

Now that is a TALL ORDER when you start thinking about it because there are so many factors (just like in the Walmart example I used). Some factors are easy to influence, and others can be very difficult to impact.

The following are just a few ideas to keep in mind as you contemplate how to ratchet up your donor services:

Communicate with donors as often as they tell you they want to be communicated with.
Communicate only those things the donor has said they want to hear from you.
Only send fundraising volunteers and employees with whom the donor has a GREAT relationship (and this goes for cultivation, solicitation or stewardship activities).
Send donors( who give frequently and recently) a birthday card.
Celebrate anniversaries for “weddings” and “becoming a donor to your agency” (focus these activities on major gifts prospects and donors).
Include the donor’s spouse whenever possible and make the cultivation, solicitation or stewardship experience feel like “family experience” (as long as it feels appropriate).
Let the donor tell you where they are most comfortable being solicited and then solicit them there.
Train volunteer solicitors about the finer points of soliciting a charitable contribution by going beyond the 12-step process of “closing the gift”.

This approach is not intuitive for many non-profit organizations. So, my final suggestion to those of you are very serious about improving donor services is to invite a small group of customer service professionals to participate in a focus group. During the hour that you have them together, educate them about how you communicate and interact with your donors. Ask them how they would go about improving the experience. You might just be surprised at what you learn.

Let’s add to my list of suggestions. Please scroll down and use the comment box to share JUST ONE IDEA on how to improve donor services and increase the quality of donor touchpoints. We can all learn from each other.

By the way, thank you to all of you for helping DonorDreams blog exceed 10,000 page views in less than one year. This milestone is a testament to you and your thirst for engagement. The next big goal is to reach 300 subscribers by December 31st. In celebrating today’s accomplishment and looking forward to the next one, would you please reach out today to one friend, non-profit professional, volunteer or board member and tell them about DonorDreams and encourage them to subscribe? Thanks again for tuning in, and I hope you continue enjoying this online community that we’re building together. 🙂

Here’s to your health!

Non-profit donors: “Should I stay or should I go?”

May 1, 2012 DonorDreams Fundraising

A few years ago I discovered two fundraising bloggers from “across the pond” who collaborate on a daily blog called “The Agitator“. I fell in love and told all of my friends to subscribe if they knew what was good for them. A few weeks ago, The Agitator published a post titled “Flat Earth Fundraising: Ignoring The Leaky Bucket” that was so outstanding that I fell in love all over again.

While Roger hits a lot of hot buttons for me in this post about donor retention, one point struck me particularly hard when he said:

“This means half of your retention battle has nothing to do with your mission features and organizational benefits. A large part of the reason a donor will stay or go is not mission or message or premium offer, it is how she/he is treated when encountering donor services. The opportunity here is not avoiding bad experiences (that is obvious), the real opportunity is recognizing that service can actually improve the relationship and is a critical touchpoint, one that can help to further monetize the relationship with cross-sell and upsell.”

There are big non-profit organizations out there that are well-oiled machines. These types of organizations have fundraising departments and use complicated direct response strategies that would make many for-profit organizations proud. They employ fundraising professionals responsible for managing a caseload of donors and use Moves Management strategies. I suspect “donor services” look very different at a large non-profit agency than it does at a small organization. I’m not saying that it should (maybe it should and maybe it shouldn’t) . . . I’m just saying that it does.

After reading Roger’s thoughts about “donor services” and the role it plays in donor retention, I started thinking about what this means for small non-profit organizations that focus more on in-person, face-to-face fundraising and less on targeted and direct mail.

What does it mean?

It means that the volunteer solicitors your agency recruits to work pledge cards becomes one very important touchpoint for the donor.

Duh . . . right?

As I think back upon my days on the frontline of a small non-profit agency working with volunteer solicitors on annual campaign implementation, I am embarrassed to admit that the thought farthest from my mind was “how enjoyable and fulfilling will that solicitation meeting be” for the donor. In fact, I was more focused on tactical issues such as:

do I have enough volunteers?
where can I host a good kickoff meeting?
how can I inject accountability and urgency into the campaign so that we can finish “on time” and run along to the next fundraising event?

Sure, I provided volunteer solicitors with “training” at the kickoff meeting, but it sometimes felt like an after-thought. As I look back over some of the campaigns I’ve run in the last decade and think about some of the volunteers I recruited, I now wonder how well some of those solicitation meetings went.

Ugh! I would describe some of my favorite volunteers as “major closers”. They are task oriented and would “hunt down” their assigned donors like a dog hunts down their favorite bone. While that approach might have been good for me, I am now worry about how the bone . . .errrr . . . donor felt.

I would also describe some of my other fundraising volunteers as “highly reluctant” and only agreed to participate because I was charming and persuaded them to do so. In spite of all the training, I can imagine that their solicitation calls felt uncomfortable for everyone involved.

I suspect that prospects/donors have the classic song “Should I Stay or Should I Go?” by The Clash running through their heads every time they are sitting down with a volunteer solicitor. This encounter needs to be good. In fact, it needs to be great!

The following are just a few thoughts running through my head this morning on how to get a little closer to achieving this objective:

put lots of time and thought into recruiting “the right” volunteer solicitors who are comfortable and excited about asking other people to consider making a pledge to your annual campaign;
be thoughtful and engage your volunteers during the prospect assignment phase of your campaign and focus on matching people based on good solid relationships;
go beyond the typical training focused on how to make the ask and use the case statement by including tips on how to improve the quality of the meeting itself; and
ask the volunteer solicitor to engage their prospects/donors in a conversation around what their preferences are for post-solicitation communication by the agency.

What is your agency doing to improve the quality of interaction between solicitor-donor and agency-donor? How are you evaluating and assessing the effectiveness of those encounters? Please use the comment box below to share your thoughts. We can all learn from each other.

Here’s to your health! (If you want to be “agitated,” go check-out Tom & Roger’s blog posts over at The Agitator. You won’t be disappointed!)

Non-Profits Can Mobilize Slacktivists Using Social Media

April 30, 2012 DonorDreams Fundraising, Mondays with Marissa, technology

Hi, my name is Marissa and I am a slacktivist. I admit to thinking I am politically active by sharing my thoughts on issues with my friends through social media without really taking any other political action. It is easier for me to “like”, “retweet”, “+1”, or “share” something than it is for me to write a letter to my Congressperson.

But is slacktivisim a bad thing? And how can you use this passive involvement of others to actually make something happen for your non-profit organization and mission?

This past week, I caught an episode of my favorite news source, The Daily Show with Jon Stewart. His guest was Ben Rattray, founder of a website called change.org. As the interview went on, it became clear to me that Rattray had found a way to take the simple act of a person’s “like” or “retweet” and turn it into powerful political action.

The basics behind change.org are this: a user can create a petition about any issue and change.org will help the user reach out through social media to get people to sign the petition for free. Petitions are simply signed with the click of a button.

If the user decides to pay change.org for their services, they can export the list of people who have signed their petition. Change.org also offers organizations access to sponsored campaigns.

“Sponsored campaigns” are promoted to change.org users who would most likely support your cause. The community on change.org is growing everyday, and I can only imagine it growing even more after this week’s exposure on The Daily Show. Tapping into the already growing community of users could help your non-profit organization gain more exposure. It could also be a great way of generating a list of prospective donors who are interested in supporting your mission and issues.

Change.org also connects users with local and national media outlets. Remember when Bank of America was going to charge $5/month for using a debit card? It was a change.org user who created a petition that 300,000 people signed, which gained national media attention. This, of course, resulted in Bank of America deciding to drop the proposed fee hike.

So, what could change.org do for your organization? You could create a petition connected to your mission and use change.org to engage individuals who sign your petition. A recent article on Mashable states:

“slacktivists are 2x as likely to volunteer, 2x+ as likely to ask for donations, and 4x as likely to ask others to get involved.”

If you’ve seen KONY 2012 or Bully, you know how quickly a message can spread through the internet. Projects like these have inspired many people to get involved.

Even if you choose to not use a platform such as change.org for your agency, there are still lessons to take away from the foundation they set-up.

Make it easy for people to get involved. If you have a blog on your site, make sure you have social media buttons at the bottom of each post to allow users to share your message with their friends.

Create a community. Peer pressure is a powerful thing. Use it for good. If you create a community on a social media site (e.g. Facebook, Twitter or even on your own blog), then make sure you take the time to reply back to those who leave comments as well as recognize those who are sharing your content with their social network.

Support a cause that supports yours. If there is a petition out there that helps your mission, then get involved and sign it. If people see that you care about an issue they also care about, they might take the time to visit your website to learn more.

It was exciting for me to see how change.org makes a difference in our communities with a tool as simple as a petition. And I guess that’s the big takeaway from it all; the easier you make for people to get involved, the more people will be.

Is change.org a network that your organization could benefit from? I’d love to hear why or why not in the comments below! Or are you using other providers or platforms to accomplish the same objectives? Please share.

Non-profits under fire: Measure this! Measure that!

April 27, 2012 DonorDreams Fundraising, leadership, organizational development

Today, we’re focusing on a post that John titled “How Much Do I Love Thee?“. In that post, he talks about the recent obsession in the workplace to measure EVERYTHING (e.g. SMART goals, Management by Objectives, etc) and pushes back on the idea that everything must be quantifiable. He starts his post with the following quotation from Albert Einstein:

“Not everything that can be counted counts, and not everything that counts can be counted.”

Every non-profit professional in the world knows that our sector is under extreme pressure to conform to the trends that John references in his blog post. Here are just a few examples:

measuring community impact,
program outcomes measurement,
employee performance (e.g. management by objective), and
measuring donor loyalty.

Neither John nor I (or Einstein) are saying that we must fight this trend; however, there are things that are not measurable that must be considered and brought in the equation.

More concerning to me is the impact that this trend seemingly has on fundraising practices. Specifically, I’ve heard more and more fundraising professionals talking about program outcomes and how it can be used to demonstrate “return on investment”.

Speaking as a donor, I love hearing that my local Boys & Girls Club’s homework assistance program resulted in 75% of kids either maintaining or improving their grades. However, I really want to hear the personal stories about little Jack and Jane; Jose and Irma; or LaShaunda and Xavier. There is something inspirational in those stories. More importantly, it helps me understand the impact of that program.

I think the Center of NonProfit Excellence stated it best in their marketing for a 2010 training titled “Narrative Philanthropy: Stories that Result in Gifts”:

“But the pendulum may have swung as far as it can in the direction of statistics and outcomes. Accountability is crucial, but cannot account for the fact of why people give. What explains the emotional impulse to give? Stories. One good story is worth at least 10,000 measurable outcomes.”

If you get a chance, I encourage you to click here and read more about Jim Grote and his ideas around Narrative Philanthropy.

I also like what Norma Cameron said a few weeks ago in her blog post titled “The Power of Legacy Stories: A Daughter’s Love“. You should check out an awesome template that Norma created to gather legacy stories from your donors. A link to this tool is embedded in her blog post.

Circling back to John’s blog post — “How Much Do I Love Thee?” — he drives home his point by posing a simple question: “How much do you love your spouse?” Of course, there is no way to answer this question in a quantifiable manner.

The same holds true for the non-profit version of this same question:

How much do your donors love your organization?

While you may be able to look at your donor database LYBUNT reports and review the results from a recent donor survey, I suspect none of this data will ever truly answer the critical question that I just posed. Nevertheless, this doesn’t mean that you stop trying to answer the question.

So, what should donor-centered fundraising professionals do???

I suggest picking up your phone, calling that donor, and inviting them out for a cup of coffee or lunch. When you are sitting across the table from them, do what Jim Grote suggests . . . tell them stories (and pepper in a little outcomes and impact data). Make them smile. Make them feel good about their last donation. Once you get to this point, you may want to take Norma Cameron’s suggestion and ask the donor about collaborating on the creation of their “legacy story”.

Yes, I know how busy many of you are. I am not suggesting this approach with all of your donors or the folks who buy raffle tickets to support your mission. Surely, you know who your most important donors are. Right? For small organizations, this might be a great project for your Top 5, 10, or 25 donors. For large organizations, the sky is the limit. This might even be a great cultivation/stewardship project in which fundraising volunteers can be trained and included.

I suspect this is can be woven into all organization’s Major Gifts and Planned Giving programs.

Where is your organization at with all this “measurement” stuff? What are you doing to adjust to the trend and ensure that you’re not over compensating? Are you having success aligning with United Way’s “Community Impact” model? Do you employ any of Jim Grote’s or Norma Cameron’s Narrative Philanthropy suggestions in your resource development program? Please scroll down and use the comment box to share a little bit of your experiences. We can all learn from each other.

Here’s to your health!

Want access to donor data? Then your non-profit needs a strategy!

April 26, 2012 DonorDreams Fundraising, technology

This week we’ve been talking about technology and donor data at DonorDreams blog. Tuesday’s post, which was titled “What can’t your donor database do?,” looked at all sorts of interesting functions and features associated with database software packages. Wednesday’s post, which was titled “Wow . . . Non-Profit Donors are Naked!,” examined various free online tools that can help you capture invaluable data for inclusion in your donor database. If you missed either of those posts, I encourage you fo circle back and check them out!

Yesterday’s post got me thinking about social networks (e.g. LinkedIn, Facebook, Twitter, Pinterest, etc). We all agree that these sites possess an unbelievable amount of free personal information about our donors. Yet, I see so many non-profit organizations struggling with social media.

I suspect that non-profit organizations are too thinly stretched and don’t dedicate enough time and resources to developing an effective social media strategy. I believe a little bit of time and lots of thoughtful strategy can go a long way towards getting donors engaged, which gets you closer to that FREE and invaluable donor data.

The following are just a few ideas that even cash strapped non-profit organizations can implement:

Get “friendly” online. You can’t just set-up your Facebook page, Twitter account or LinkedIn presence and expect people to find you and connect. Look over your donor list, identify your top few hundred donors, and actively ask them to connect.

Content is important. I’ve seen too many Facebook pages with little to no content, which begs the questions “Why did I like this page in the first place?” Perhaps, it might be worth your time to sit down over a cup of coffee and talk to 10 of your more active donors. Ask them what kind of information they’d like to see your non-profit post on LinkedIn, Twitter or Facebook. I could rattle off all kinds of ideas today (e.g. pictures of your mission being brought to life, transparent sharing of program outcomes, etc), but none of what I say matters. What matters most is what the people who you want to join your social network want to see.

Engagement is king. Your agency needs to understand the difference between Web 1.0 and Web 2.0. Social media is not about shouting at the top of your virtual lungs various things about your agency on your social network pages. That was so Web 1.0. If you want your social media strategy to work, then you need to engage your donors in “conversations”. People don’t just cruise over to your Facebook page or Twitter feed to check out what you’re saying and posting. They get there because you’ve drawn them over with a shiny object. I’ve seen some non-profits do the following to build a following and engage donors:

Run a contest online. During a certain period of time, anyone who likes your page or follows you gets entered into a raffle and a chance to win something (e.g. iPod, iPhone, iPad, gift card, etc). It doesn’t have to be expensive, but it does need to be fun and something people value. It could also focus on submission of something for judging (e.g. picture, essay, etc).
Ask for opinions. I’ve seen organizations poll their social media followers on a variety of issues. Those issues could even be operational in nature. For example, ask donors and supporters to help you name something. Or ask their opinions on adding a new program or expanding to a new site. This can be particularly effective because people love to be asked their opinion.
Become an advocate. How many online petitions being circulated by non-profit organizations have you signed in the last 6 months? I know I have signed at least four. This can be particularly effective because people love to be asked to get involved in ways that supplement their financial support. It is an easy way to help a donor feel involved. Besides, you’ll probably end up asking them to consider making an online contribution at the end of the petition process.

The bottom line for me is twofold:

Donors are giving away valuable personal information about themselves online for FREE. It is worth investing a little time to engage them because you’re already trying to do it in other ways as part of your resource development program.
Nothing associated with your social media presence will happen by accident. You need to put together a strategy and execute your plan (regardless of how simple it may be).

If you are looking for more in-depth ideas on Facebook best practices, I suggest you read what the good folks at DIOSA Communications are suggesting.

What does your agency do to engage donors on Facebook, Twitter, LinkedIn, or Pinterest? What metrics do you use to track your effectiveness in inspiring and engaging participation on your social network platforms? Please use the comment box below to share your thoughts. We can all learn from each other.

Here’s to your health!

Wow . . . Non-Profit Donors are Naked!

April 25, 2012 DonorDreams Fundraising, technology

Yesterday, I wrote about the power of donor database software in a post titled “What can’t your donor database do?” In that post, I marveled at the availability of powerful tools such as WealthEngine and Blackbaud’s Target Analytics that have the capability of interfacing with your donor database systems. Of course, these service cost money and for a number of non-profit organizations with scarce resources, sophisticated prospect research can feel out-of-reach.

The reality is that it doesn’t have to be that way. Much of the information that data mining companies provide comes from public sources of data. All your organization has to do is dedicate a little staff time to this project, and you’ll be able to develop fairly complete prospect/donor profiles.

To test this hypothesis, I selected one donor from a local non-profit organization who I don’t know very well and used online resources to find out as much as I could on him. In order to protect the innocent, I will refer to this donor as “John Doe” throughout today’s blog post. In completing my prospecting work, I used a number of free resources that are available to everyone with an internet connection.

Google. It is amazing what you can find out about a person using Google. I typed in my prospect’s name using quotation marks and plus signs. It looked exactly like this:

“John Doe” + Elgin + Illinois

Using the quotation marks and plus signs helps narrow the Google search and improves the search results. With just that simple search, I found the following information on this prospect:

Place of employment
Address of workplace
Phone number of workplace
Work email address
Job title
Number of employees in workplace
Company sales volume
Last five employers
Other non-profit boards upon which they serve

Anywho.com or 411.com or Beenverified.com or Intellius.com. These types of sites can help you secure information like home address, phone number, estimated age, and names of relatives. You can also find information on previous home addresses, which gives you more to search on Google.

Zillow.com. Once I found this prospect’s home address, I went to zillow.com and found out what those people believe his house value. (If you are feeling brave, you can check on your house’s value. I am feeling a little ill after doing exactly that. Apparently, out house has dropped $92,000 in value since we purchased it six years ago. Ugh!)

Sec.gov/edgar.shtml. Publicly traded companies are required by the federal government to disclose a lot of information. I went to this site to learn more about the company for which my prospect works. I also clicked around to see if he is a significant investor or owns large chunks of any publicly traded companies. Unfortunately, he did not.

Guidestar.org. Non-profit charities are also required by the federal government to disclose a lot of information. So, I looked up the 990 forms of the non-profit organizations for which my prospect sits on their boards. I also did a search on my prospect’s name to see if there are any foundations that have been set-up in his name or his family’s name.

Facebook. Even though this prospect and I are not “Facebook friends,” many people don’t understand this social network’s privacy policies. As a result, a number of you have more personal information hanging out there than you care to know about. In this instance, I found out where my prospect graduated from high school. So, now I know where he grew up. I also found out where they went to college and what they studied.

LinkedIn. It is amazing to me what people post on their LinkedIn profiles. Unfortunately, I couldn’t find my prospect on this social network. However, if I had, then I probably would’ve had access to information such as: employer, past employers, job functions/responsibilities, interests/groups, and possibly even his birthday. If I was “linked” with the prospect, I would’ve likely been able to view their network of friends and business associates.

So, the point I am driving at is that you don’t need lots of money to afford the services of data mining companies because there is already a lot of information out there on your prospects and donors. All you need to do is find time to gather the information and enter it into your donor database.

Ohhhhhh . . . I can already hear many of you saying that your organization is too thinly stretched and don’t have time. OK, I get it. I’ve been there and done that. However, how many prospects and donors do you really need this level of detailed data on? For small and mid-size non-profit organizations, it might only be your Top 10, 25, 50 or 100 donors. If you set aside a few hours each week, you will have detailed donor profiles for your most important donors in a very short period of time.

Ohhhhhh . . . I can also hear many of you saying that this feels like an invasion of privacy. Or maybe stalking? I also know some of you doubt the need for this level of detail.

Let me simply end by saying, fundraising is all about relationships. The more you know about your prospects/donors, the more likely you are to deepen those relationships, connect with them, and raise money for your mission. While this might not be necessary for “transactional fundraising” programs that rely on special events and annual campaigns, it is an absolute necessity once you start moving toward donor-centered fundraising and development of a major gifts program.

Still not convinced? Birthday and age information impacts planned giving strategies. Home value is one data point that can contribute to assessing wealth and philanthropic capacity. Understanding a prospect/donor’s social network, friends, and professional relationships will help you with volunteer solicitor assignment strategies.

Online prospecting work will never replace good old fashion relationship building. It is amazing what people can and will share over a cup of coffee, but doing your homework by using free online tools or paying data mining companies certainly helps and it makes your resource development efforts a little easier.

Does your organization use fee-based data mining companies like WealthEngine to do donor screening or compilation of donor profiles? If so, what has been your experience? Have you used some of the aforementioned free online tools? If so, please share your experiences and thoughts by using the comment box below.

Here’s to your health!

What can’t your donor database do?

April 24, 2012 DonorDreams Fundraising, technology

I left the non-profit frontline back in 2006 for an internal consulting position with Boys & Girls Clubs of America. So, it has been a long time since a donor database has “run my life”. A few weeks ago, I participated in a webinar focused on the Results Plus database product produced by Metafile in Rochester, Minnesota. It was during that webinar that I was reminded about how powerful donor database software packages have become.

For the “average non-profit” out there, a donor database is the software package they capture the following data:

Donor name
Donor address
Donor phone number
Contributions (amount and to what campaign)

It is less common for non-profit organizations to capture other information such as: solicitor names, spousal information, occupation & employer, social networks, wealth indicators, interests, etc (and this list can go on and on and on because there are more than a hundred data fields in most database packages that can be filled with information).

What I’ve found to be common for many non-profit organizations is they purchase a donor database system, invest in training, and lose institutional knowledge as employee turnover naturally occurs. As new fundraising professionals are hired, the desire to throw the old database out the window is magnified because they weren’t involved in database set-up and the systems built around the database weren’t designed by them. Most commonly, new fundraising professionals come to the table with biases toward database systems with which they might be more familiar.

Naturally, the drums start to beat and the mantra becomes “Buy a New System” rather than: 1) invest in training, 2) clean and deepen the data, and 3) fix the systems built around the database.

While I participated in that “refresher webinar” hosted by Mark Gerber at Results Plus, I was awestruck with what some donor database can do nowadays.

Credit Cards processing. Many donor databases have built functionality into their products where you can swipe and store a donor’s encrypted credit card information. This can make events (esp. auctions) really easy. It also makes recurring contributions (e.g. monthly giving program) to your annual campaign really easy. I’ve seen some database companies (e.g. events.org) build credit card processing right into the services they provide their clients. Other databases like Results Plus allow you to hook-up to external merchant account companies like Moneris and credit card processing happens with just one keystroke.

Event Management.For a long time now, fundraising professionals have been able to do a lot associated with event planning from inside their donor database, but the functionality and features continue to multiply. The following is just a short list of what is possible: seating assignments, auction management, creating/sending invitations via snail-mail or email, budgeting, creating/managing project management task lists, tracking entrée selection, managing gift acknowledgement letters with appropriate IRS disclaimer information for the value of services received (e.g. quid pro quo gifts), and the list goes on and on and on and on.

Volunteer management. A recent study released by Fidelity Charitable Gift Fund and VolunteerMatch reports two big things: 1) 67% of survey respondents said they “generally make their financial donations to the same organizations where they volunteer” and 2) Volunteers tend to donate an average of 10-times more money to charity then people who don’t volunteer. This is why it is so very important for your non-profit organization to use your donor database to track and manage your volunteers. You can track and do all sorts of things such as: Who? What? Where? When? Why? How? Interests? Time volunteered . . . value of that time . . . background check information . . . generate cultivation/stewardship letters . . . and the list goes on and on and on!

Prospect research. Third-party data mining companies have done a remarkable job integrating their services in such a way that you can run their applications from inside your donor database and even pull that data directly into your system. These services are costly, but it is amazing what you can find out about a prospect or donor from public records. Wow! And it can all easily be done from inside your donor database. If you have some cash to spend, talk to your database provider about whether or not information from WealthEngine or Blackbaud’s Target Analytics can be easily brought into your database system.

These were just a few functions and features that had me on the edge of my seat throughout that webinar. My best advice to all non-profit organizations with donor database systems is to:

Call your database provider and ask a sales professional to provide you with their “nickel tour”. Even though you already own the system, you will likely learn a lot about what you already own. The sales pro will play along because they might just sell an upgrade or add-on module.
Invest and continue re-investing in training. The donor database world is constantly evolving and you really need to stay on top of what your system can do.
Pay attention to the systems you build around your database (e.g. staffing, contact reports, event registration forms, pledge cards, etc). These system have a lot more to do with the data you’re capturing than the software you’re using.

I wonder when the donor database companies will build enough functionality into their systems so all I need to do is press a button on my computer and the database will brush my teeth for me? 😉

Please scroll down and use the comment box below to share one of your favorite features or functions associated with your donor database.

Here’s to your health!

Stop hating on the donor because its not their fault that you’re broke

April 20, 2012 DonorDreams Fundraising, organizational development

Today, we’re focusing on a post that John titled “My Other Two Dogs“. In this post, he shares an old Native American story about two dogs as it is told by Harold Kushner in his book Living a Life That Matters. It is a great story about how every day most of us struggle to maintain a balance between good and bad.

While John’s post is complex and can easily take you in many different directions, I immediately started thinking about donors. You know . . . those generous people who write checks to your non-profit organization because they believe you’re going to change the world.

I have seen this tendency to blame the donor for our woes. It doesn’t happen all of the time. It typically happens during our darkest hour when a fundraising campaign is falling short of its goal or our agency’s annual budget is projected to slip into deficit.

I’ve seen it often enough to know that this behavior is not atypical. If you’re still trying to get your arms around what I’m talking about, here are a few examples:

“If all of our donors just sacrificed a little harder and donated what it likely spend on Starbucks coffee every week, then our agency would have more than enough funding to do everything that needs to be done!”
“If every person who lives in our community would just give us $5 per year, then . . .”
“Oh yeah, sure . . . who does that guy think he is blaming the economy and the housing market for his inability to donate $50 to the annual campaign. It isn’t an inability, it is an unwillingness. Geez, it’s just fifty bucks!”

I can go on and on with examples of where we blame the donor for our woes, but I think you get the idea.

I need to also confess that one of those examples came right out of my mouth yesterday. Yes, I am a bit embarrassed because I like to think that I am a bigger person than that and a more savvy fundraising professional. However, this realization simply confirms for me that John is right on target in his post “My Other Two Dogs“.

ALL OF US (or at least most of us) are faced with this struggle for balance every single day of our lives. It manifests itself in our personal relationships, and it is likely present throughout the work day. We must work at maintaining balance because it will not naturally occur. If you’re not vigilant, then you run the risk of slipping. In the case of fundraising, you run the risk of saying something in front of a donor, board member or volunteer that could have lasting repercussions.

If your non-profit organization is struggling with fundraising, you need to look internally. The following are a few questions I suggest you ask yourself:

What does your written case for support look and sound like? Does it convincingly “make the case” for donors to write a check or can it use some tweaking?
How do your fundraising volunteers use your agency’s written case statement? Are they using it? Or does there need to be more training provided?
Do you and your fundraising volunteers look and sound like they’re having FUN while soliciting for a special event or pledge drive? Or is the energy level down and do people sound like they can’t wait for it to be done and over?
Structurally speaking . . . what tactics are you using to inject a sense of “mission-focus” into your fundraising efforts?

As John suggests in his blog post, we need to keep “feeding” the good dog so that the “bad dog” doesn’t win. I hope some of these suggestions provide you with some “food”.

Have you ever found yourself channeling that bad dog? How do you guard against it? What do you feed that good dog to remain focused on all of the right things associated with your resource development program? Please scroll down and share a few of your tips and tricks in the comment box below. We can all learn from each other.

Here’s to your health!