Fundraising – Page 40 – The Healthy Non-Profit

It’s Hip to Be Square: Accepting Donations From Your Phone

January 23, 2012 DonorDreams Fundraising, Mondays with Marissa, resource development, technology

The other day, I received an email from the non-profit where my mom works about the auction items that would be available at their annual special event. Having worked behind the scenes at similar events in the past, one thing came to mind — payment processing. In my experience, the task requires a lot of attention to detail in order to make sure things run smoothly.

This reminded me about a podcast I listened to that mentioned how stores are now able to process payments right from their smart phones using a service called Square. Square provides a free card reader that can be attached to any IOS or Android device (through the headphone jack) to process payments from anywhere. Think about how this flexibility could revolutionize a special event or even the everyday business of a non-profit. Let’s take a look and if it’s the right fit for your organization.

The Pros:

Free Card Reader – I mean, free is good for anyone, even better if you work for a non-profit. Not only is the adapter free, but the app associated with it is free as well.
Familiar Format – Most people have a smart device of some sort and are used to using apps everyday. This prior knowledge can come in handy when it comes to training people to use Square. Furthermore, this familiarity can expand the pool of people who could use a Square card reader to accept donations.
Next Day Direct Deposit – It won’t take long to see those donations show up in the linked bank account. Money is only good, when it’s available, right? Most times after an event, it can take a few days of coordination to get credit card payments, checks and cash in order to take it to the bank. Using Square at least cuts out some of that process.
Secure – Square constantly monitors what is happening across it’s network to look for signs of fraud. Also, Square makes sure that all information in encrypted.
All Major Cards are Accepted – No need to limit payments only to Visa and Master Card. Amex and Discover are welcome here, too.
Data can be Exported – Accurate financial documents are important to the running of any business. Square allows you to have access to that data and you can run your own reports.
Allows for Multiple Users – Each device can be linked to one account so that there can be multiple people at an event. Also, if staff or volunteers have a Square reader and their phone with them out in the community while talking about your mission, a donation by a newly inspired donor can be taken right away without any waiting.
Receipts – can be emailed to donors or printed on site when using an iPad.
No signature needed for payments under $25 – In a day an age where people are donating (albeit in smaller amounts), this feature speeds up the donation process.

The Cons:

Not everyone has a smart device – sad, but true. Even in 2012.
2.75% Transaction Fee – if a $100 donation is collected, your organization will only receive $97.25 after Square collects it’s fee. Granted, you are still receiving most of the money. The fee is collected per transaction and is the same no matter which card is used to process the transaction.
Customer/Donor information is not saved – while this is for the privacy of the customer, most non-profits see this information as essential for their donor database records. One suggestion to overcome this is to give each person a unique number that is attached to their name and contact information. Each transaction made with Square can be edited before it is processed so that this number can be attached.
No Offline Payments – If your event is somewhere with no cell phone data coverage or wifi available, you will have move to your Plan B option because payments cannot be collected and uploaded later.
One Time Payments Only – if you had a donor that wanted to donate $10 a month, this could not be accomplished with Square.

I must admit . . . I am in favor of using Square for the collection of donations (besides, it’s hip to be square) . . . but in the interest of full disclosure, I should admit that I have never used the system myself nor do I have any affiliation with Square. Truth be told, I just wanted to share the system with you because I’ve seen other non-profits struggle with credit card processing (which is never a pretty sight especially at an event with donors rushing to checkout and get home) and I thought this might work for you.

Incorporating technology can make the donation experience easier and more streamlined for the donor. After all, if the donation process is easy and enjoyable, I suspect donors will be more likely will donate again! Right?

Is Square a solution you might be interested in? What has your organization done to streamline its onsite payment procedures? Please share your thoughts using the comment section below!

Seriously?!? Why not just mug prospective donors?

January 20, 2012 DonorDreams Donor-centered fundraising, Fundraising

I have been simmering over an email I received a few weeks ago from a dear friend. In that email, she shared with me an invitation that had been sent to her by a non-profit organization to whom she had never contributed a penny.

For all of you “relationship-based” fundraising professionals, I encourage you to take a deep breath and have a seat. (Note: I’ve changed the names to protect the innocent and avoid embarrassment). Here is the gist of what the invitation said:

Please join us for a cocktail reception
to kick-off our annual campaign
<<Date>> & <<Time>>
Hosted By Mr. & Mrs. Smith
<<home address>>
A minimum donation of $500 is requested

If you wish to learn more about the agency,
please call the Executive Director.

After reading this email invitation at least 10 times, I was speechless; however, I think this YouTube video best captures how I feel.

Seriously?!?

Here is someone who is NOT a donor. The invitation was an email blast and not personal. There was no prospect cultivation done in advance. When you take these facts together with the “minimum contribution” request, I am left speechless. AND . . . just when you think it couldn’t get any worse, the invitee is told to call the executive director if they have programmatic or mission-based questions. WOW!

I apologize for my tone this morning, but things like this offend me because prospects and donors deserve better. Philanthropy is not about the “grab-and-run” fundraising approach . . . it is about connecting with people, discovering their dreams, and helping them put their charitable giving to work in a way that will help their dreams become reality.

I am left wondering if the volunteers who emailed this invitation were “taught” to ask in this manner. I know that it sounds crazy, but don’t human being typically do what they observe? If this is the case, then the non-profit agency who initially solicited these fundraising volunteers must be guilty of not possessing a “culture of philanthropy”.

This, of course, begs the question: “How can you change an organizations culture and instill a sense of philanthropy into it?” Thankfully, the fundraising sector has an awesome organization in The Association of Fundraising Professionals. I came across this awesome 2011 article titled “Building a Culture of Philanthropy” that speaks to this issue.

So many non-profit organizations are talking about “donor-centered fundraising” nowadays, but what is your agency actually doing to put these principles in place? Please use the comment box below to comment on this organization’s fundraising approach or how you ensure your fundraising volunteers don’t do things like this. We can all learn from each other.

Seriously . . . 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

What if a fundraising professional could start from scratch?

January 19, 2012 DonorDreams Fundraising

I recently met with a fundraising professional who has been given the opportunity to build a resource development program starting from scratch. On the drive home, I was mulling over the possibilities in my mind, and I must admit that the opportunity appears to be exciting. My thoughts quickly turned to all my fundraising friends who walked into existing situations.

When you walk into a non-profit with a resource development program in place, there is typically a staffing structure already there. A donor database decision has likely already been made. A resource development plan and strategy are laid out, and board volunteers already have expectations.

So, I started off my return trip home with the belief that any fundraising professional would give their left arm for the opportunity to start from scratch. However, as the miles passed, I kept coming up with daunting issues. I decided to pose just a few of those questions to the readers of this blog and see what you think:

How do you instill a sense of “philanthropy” into an organizational culture where it might not already exist?
If your resource development plan contained nothing but blank pages, where would you start if you need to start bringing in dollars immediately? Would you focus hard on grant writing? Or do you take a longer view and focus on cultivating relationship with individuals?
Do you acquire a donor database or a CRM?
What should the development department look like?
How do you engage volunteers who weren’t recruited with resource development roles in mind? Do you take a pass on trying to engage these people and work hard at identifying and recruiting different volunteers with fundraising skills?
When you don’t have any donors and no existing database, who do you start talking to? Who do you engage in planning?

As I thought through some of these questions, my mind seized on well worn expressions like:

“The grass is always greener on the other side.”

and

“Be careful what you wish for, lest it come true.”

So, I toss the question open to you. Would you desire the opportunity to start over from scratch? Where would you begin? How would you tackle some the questions that I laid out above?

Please use the comment box found below to weigh-in with your thoughts. Who knows . . . that person I visited with might actually be a subscriber to this blog, and your feedback could be very insightful and valuable to them.

Here’s to your health!

Non-profits can learn a lot from the Chicago Cubs

January 17, 2012 DonorDreams Fundraising

I attended the Chicago Cubs Convention this last weekend with my partner, father, brother and nephew. This is the 27th annual convention, and I think this is the fourth or fifth time I’ve attended with my family. As many of you know, I look for signs of philanthropy everywhere I go in life. It is one of my quirky charms. 🙂

It would’ve been easy to write about the $4 million that the Chicago Cubs have raised for charities with the proceeds from this convention, but I decided to look a little deeper this year. Not surprisingly, I found three things that the Cubs organization does at its annual convention that non-profit and fundraising professionals can take away from the experience.

A Sense of Accountability
Everyone in America knows the Chicago Cubs haven’t won a World Series in more than 100 years. This is the equivalent of a non-profit organization being unable to demonstrate community impact or program outcomes to its donors. To some people, it is surprising that the Cubs have any fans remaining with such an amazing inability to produce any return on investment (ROI).

However, the convention does something interesting for the Cubs organization. It gives fans the sensation they can hold the team “accountable”. There are sessions with ownership , management, coaches, and players. During those sessions, fans are permitted to ask questions and make comments from the floor.

While it is important for non-profit agencies to demonstrate ROI and impact, it looks like letting donors “hold you accountable” can go a long way when your ability to generate outcomes might still be a few years off.

It is all about the upgrade
It shouldn’t surprise you that the cost for last weekend was high (e.g. convention passes, hotel, and food). Tack onto this pricetag the cost of attending a few Cubs games throughout the summer, and it becomes apparent that being a Cubs fan isn’t cheap. However, this didn’t stop the Cubs from gently trying to up-sell me at every turn.

Have I considered attending spring training with the team in Arizona? What about signing up for a tour of Wrigley Field? Will I give some thoughtful consideration to upgrading from a fan who just attends a few games every year to a 9-Game Pack ticket holder?

I’ve met too many non-profit organizations who are afraid of asking their donors for more. The excuse usually given is that they’re afraid of “offending” those donors. Well, I can honestly say that I was never once offended by the Chicago Cubs and their vendors. I highly doubt most donors would either. However, I suspect that the key to not offending anyone is in how you go about doing it. In each of the previous up-sell examples, the Cubs had a very well-defined “case for support” (aka sales pitch).

If non-profit organizations invested more time in crafting solid case statements focused on why special event donors should also become annual campaign donors, I suspect a lot more money would be raised.

Becoming part of the family
At one point during the weekend, I had to giggle to myself because I paid the Cubs a lot of money for the right to be their captive all weekend and permitted them to market to me. While this realization should make me feel stupid (because they should be paying me for that privilege and not vice versa), I really don’t feel that way. As a matter of fact, I feel lucky and a little privileged to have been part of the experience.

The Cubs made every one of their guests feel special and a part of their family. Everyone likes to “belong” to something (e.g. church, alumni associations, service organizations, etc), and the Cubs have created an experience that nurtures this feeling, which in the end helps them make a lot of money.

Non-profit organizations who put their minds to it can turn their marketing materials and donor recognition societies into a similar kind of experience for their donors. I suspect that those who do so will see their donor loyalty rates skyrocket.

In closing
As a lifelong Cubs fan, all I have to say is that I believe a World Series title is waiting for us right around the corner in spite of the fact that the Cubs have embarked on a major “team re-building project” this year. I guess hope does spring eternal, which is a good thing for some non-profit organizations.

Please use the comment box below to weigh-in with your thoughts. What opportunities do your donors have to hold your agency accountable? What are you doing to instill a sense of family among your donors? What are you doing to upgrade donors gifts and giving opportunities?

Here’s to your health!

How Can SOPA/PIPA Affect Non-Profits?

January 16, 2012 DonorDreams Fundraising, Mondays with Marissa, nonprofit, technology

The Final Frontier . . . The Information Superhighway . . . The World Wide Web . . . The Place Where Cute Cat Videos Reside.

Call it what you will, but the Internet as you know it might change drastically after Tuesday, January 24, 2012. On this date, the Protect IP Act (PIPA) goes up for vote in the Senate. If it passes, censorship will have a permanent home on the Internet. PIPA is the Senate bill of the more publicized SOPA bill that was in the House, both have to do with censoring the Internet.

What are PIPA and SOPA? What does this have to do with the non-profit world?

Well, let’s take a closer look.

The main idea behind both PIPA and SOPA is to stop online piracy and ensure that content creators get benefits (mainly monetary) for their work. While this sounds pretty fair, it’s the enforcement of the bill that upon further inspection has people concerned. A recent TechCrunch article does a nice job explaining the issue:

“The big problem with SOPA is in the way it is supposed to be enforced, namely by blocking domain-name system (DNS) servers of copyright-infringing websites. But DNS servers are a basic technical component of the Internet (they translate site names like techcrunch.com into numerical IP addresses computers can understand better). Once you start messing with DNS, all sorts of unintended problems arise.

Blocking DNS without a full adversarial hearing in a courtroom raises the potential for censoring speech and other lawful activities. It is also the same method China uses to block “offending” content from China’s Internet.”

Furthermore, Ars Technica explains that passage of PIPA encourages online companies to act independently of the court system.

“The PROTECT IP Act goes even further than forcing these intermediaries to take action after a court order; it actively encourages them to take unilateral action without any sort of court order at all.”

So what does this have to do with the non-profit world?

Since there is currently no definition of what an “intellectual property right infringement” might be, your site could get cited under SOPA or PIPA because of links you’ve included in your online newsletter or stories on your website. If your agency gets cited, donors and supporters who might be trying to find you online via Google or other search engines wouldn’t be able to see you in their search results.

Correct me if I’m wrong, but wouldn’t this have a tremendous impact on what you’re trying to accomplish with your online presence?

This post on nonprofitmarketing360.com provides more clarity on why ALL non-profits should care:

“Ostensibly, nonprofits do not present anything that would seem to threaten these conglomerates, but, under SOPA’s current terms, nonprofits will not get a day in public court if they are deemed of trafficking in any such material. Even if they did, what nonprofit has a cabal of lawyers and lobbyists to counter the plaintiff’s accusations?”

Moreover, the effect of PIPA and SOPA goes beyond just impacting search results. It can wreak havoc with your ePhilanthropy efforts. Check out this quote from an article by Computer World:

“Basically, Sec. 103 will give the owner of any intellectual property the right to pursue private action against websites that they deem are infringing their rights. Under SOPA, IP rights holders will be able to ask payment providers such as MasterCard and PayPal to shut off services to allegedly infringing sites. They would also be able to ask Internet advertising networks to stop providing ads to the websites.”

So not only would the passage of these two bills affect your visibility on the internet, but donations taken via your website could be shut down as well if you are found to be in copyright infringement. Here’s a helpful infographic for more information.

In a nutshell, both PIPA and SOPA would cut off a resource many of us use everyday to communicate, research, and learn.

Can you imagine doing research for a grant and not having access to the information you need? Or what if your Twitter account gets taken down because you linked to a YouTube video? The landscape of the Internet will never look the same if these bills pass.

In response to a signed petition, the White House has recently come out against many of the main tenants of PIPA and SOPA, but this doesn’t mean the need for you to take action has passed.

This Wednesday, January 18, 2012 there will be a hearing on SOPA in the House of Representatives. In response, many popular sites such as Google, Reddit, Twitter, Facebook, Yahoo, Amazon, AOL, LinkedIn, PayPal, and WordPress will be participating in a blackout to draw attention to the issue of Internet censorship.

If you want to get involved in the process, you can contact your Congressperson at opencongress.org.

The media has neglected to cover PIPA/SOPA effectively. I hope that this post shines some light on how the issue of censoring the Internet could impact your everyday Internet life and the life of your non-profit organization. These two bills are just the start of trying to define the relationship between the government and the Internet. Even if they do not pass, there will be others that try. I’d love to hear your thoughts on the subject in the comments below.

What can fundraising professionals learn from a 3-year-old?

January 13, 2012 DonorDreams Fundraising

Yesterday, I was meeting a friend and someone I recruited to the Boys & Girls Club of Elgin board of directors almost a decade ago for breakfast. Well, I was a dunderhead and accidentally showed up 30 minutes early. While I was sitting there twiddling my thumbs, I couldn’t help watch this mother and grandmother having breakfast with their 3-year-old boy. By the time my friend showed up for breakfast, this young boy had blessed me with a fundraising epiphany.

After finishing his breakfast like a good little boy, he politely asked his mom if he could have a scoop of ice cream. She reluctantly agreed only because he had been so good. He turned his big baby blue eyes upon the waitress, who melted faster than any dish of ice cream, and he placed his order.

There was immediate joy and celebration!

The boy stood up in the booth and started jumping around and clapping his hands. I must admit that I haven’t seen a “victory lap” quite like this one. When the scoop of chocolate ice cream arrived, his mother reminded him of how important it is to use a spoon. After a minute or two, the spoon was abandon and this young boy had his face in the ice cream sundae dish.

Here is what struck me as I watched this unfold: this boy had a passion for ice cream. He didn’t care who knew it. He also didn’t care who witnessed it.

So, what in the heck does today’s blog post have anything to do with non-profit work or fundraising professions?

You need to discover your inner fundraising child and not be afraid of showing everyone your passion for fundraising and your agency’s mission!

Donors can smell a fake a mile away! Fundraising professionals who don’t love interacting and engaging with their donors are miserable people. They are typically ineffective and do serious damage to their agency’s resource development program before moving on to different pastures.

So, take a moment today and ask yourself the following questions:

When you wake up in the morning, do you get excited thinking about sitting down with a donor later that day?
Do you take it as a personal challenge to help donors figure out what they’re passionate about and link those interests with philanthropic opportunities?
Does hitting a special event or annual campaign goal give you a thrill unsurpassed by most other things in life?
Do you enjoy being able to share news with donors when program staff achieve program outcomes and community impact?

If you answered YES to these questions, then congratulations because you are in the right place. If this isn’t you, then I encourage you to do some soul-searching. Try to look like this boy I found on YouTube who is also enjoying his ice cream experience (however, he doesn’t come close to the boy I saw yesterday at Colonial Cafe).

Where do you find your passion for non-profits and fundraising? How do you know if the non-profit mission that you’re working for is the right one for you? I would consider it an honor if you would share your story on the DonorDreams blog. Please use the comment box below. Perhaps, your story will inspire others to discover their inner fundraising child.

Here’s to your health!

Strategic special events?

January 12, 2012 DonorDreams Fundraising, Planning

Back in October, I outted myself as a fundraising professional who isn’t very fond of special events when the purpose of the event is to raise money. I don’t know how many times I’ve shared the link to Charity Navigator’s 2007 Special Events Study with subscribers to this blog. I’m sure it has been too many times, but I’ve haven’t seen anything else that more convincingly makes the case that special events cost more money than they raise.

However, my position on special events does change when the objectives associated planning and hosting an event are more inclusive than: “let’s make some money.”

So, some of you might be asking: “What other objectives could there be?” Well, try some of these on for size:

Engaging new volunteers from a different social circle in your community.
Introducing yourself to a new set of prospective donors from a different social circle in your community, and cultivating new prospective donors for your individual giving annual campaign.
Stewarding existing donors by providing them an enchanted evening awash in mission-focus.
Marketing and getting your agency’s brand into the media marketplace.

I think it is great if your agency wants to run a few (e.g. one, two or three) special events as part of its annual resource development plan. However, I encourage you to ask the following questions before doing so:

How does this event support other aspects of your fundraising plan?
Who is the target audience for each of your special events? Does this event really do a good job of engaging that segment of the donor marketplace?
Are you just sending invitations out to those who attended last year? Are you just blasting invitations out to your entire donor database? Or are you thoughtfully engaging your event committee in identifying new prospective attendees who fit within the target audience parameters you’ve set?
How are you injecting “mission-focus” into each of your events so new prospective donors are getting cultivated and current donors are getting stewarded?

There is something very powerful about throwing a party focused around your agency’s mission. If it is done haphazardly and all in the name of “raising some money,” then you most likely didn’t raise the money you thought you did (read the Charity Navigator report and look at both direct and indirect costs) and you also missed an opportunity.

However, if you are strategic in your approach to special events, then I suspect you are seeing improvements in your overall fundraising program and starting to attract new donors.

Is your non-profit organization “strategic” in its approach to special events? If so, how? Please use the comment box below to answer these questions. The one or two minutes it takes for you to comment might make a huge difference in another fundraising professional’s life.

Here’s to your health!

Choosing the Right Donor Database is like Buying a Car

January 9, 2012 DonorDreams Fundraising, Mondays with Marissa, resource development, technology

Welcome to “Mondays with Marissa” at DonorDreams. Every Monday throughout 2012, we will start your non-profit week off right with a technology related topic before returning our attention to donors, fundraising, resource development and all things non-profit. We hope you enjoy Marissa as a new addition to the DonorDreams family!

Having a donor database that fits the needs of your organization can make a world of difference. So, how do choose the right one? When I sat down to think about it, it is a lot like buying a car.

There are some people who are more impulsive with their car buying than others. They walk into a dealer knowing they want a blue one with a sun roof and satellite radio. While others take their time to research and test drive different models; finding a car that has exactly what they need at a price they can afford. Both consumers get what they want, but the consumer who went with the second approach might have gotten a little more for her money. Let’s apply that strategy to finding the perfect database solution for your organization.

First, you want to make a list of what you are currently using. This not only includes the current donor database you are using (if you are using one), but the types of computers, any paper filing systems, the technological competency of the people responsible for maintaining the database, etc. Everything you are using to keep track of donor interactions should go on this list. It would be helpful to break down each item into as many details as possible. For example, when cataloging the types of computers being used, list how old they are along with the installed operating system. Next to each item, make sure you include a small statement about how well the item is satisfying the needs of the organization. Being specific now will only help you later.

I should note that if there are plans to upgrade technology, expand staff, or change facilities soon, make sure you have all of those details as well. The database you choose will exist in that environment. So, you might as well plan for it.

Second, you want to prioritize the requirements that you want included in your new donor database. This is the fun part. Don’t think about money. I’ll say it again because I know, working at a non-profit you probably don’t hear that very often — don’t think about money. The goal is to figure out what features are needed for the software of your dreams. Think about the functional requirements such as the need for data back-up, ability to print, run reports, can it run on both Mac and PC, does it need to run on both Mac and PC, does it offer a secure log in, is the design customizable, etc.

Next, turn your thoughts to donor management. What functions do you need included to successfully manage your donors? Some items might include: scheduling, reminders, calendars, events, employee matching, the ability to export to Quick Books, and forecasting.

Make your lists detailed and long. Then sit down and prioritize the list into what is needed most. This isn’t to say that you won’t be able to attain everything on your list, but having priorities will help steer you to the right vendors.

Third, investigate your options with the available vendors. (To help you narrow the field, you can check out sites such as techsoup.org and idealware.org.) Then you’ll want to take the information you receive from the vendor and see how it closely matches your lists. This, of course, is where money comes into play. When thinking about the total cost of purchasing a new database system remember that it includes: equipment, maintenance, training, implementation, customization, downtime during conversion and tech failures. Also, don’t forget to question the vendor to make sure that they are a good fit for your organization. Do they have customer service hours when you need them? Do they have a large non-profit customer base? After considering all of these options, choose the product that will work best for you. It might turn out that the best solution is continue using what you already have or switch to using a CRM.

Oh yeah, don’t be afraid to ask for references and check them!

Finding a new donor database that works best for your organization is not so different then buying a car. By assessing what you have, listing what you need and researching what’s out there; you can walk into the dealer as an educated consumer and can walk out with the product that meets your needs, most of the time at the price you had in mind.

Here’s to your health!

Is the glass half full or half empty?

January 6, 2012 DonorDreams Fundraising, nonprofit, resource development

A few days ago, my friend Bob Liming who is the Director of Development at Boys & Girls Clubs of the East Valley in Mesa, Arizona sent me an email with a link to the Alliance of Arizona Nonprofits. Being the curious type of person that I am, I clicked it and was taken to a landing page that summarized the results of a December 2010 non-profit survey commissioned by the Alliance.

Bob asked if I knew of any national surveys that might allow him to do some comparison research or benchmarking. After a little Googling around on the internet, I’ve concluded that the closest thing to a comparison is Guidestar’s survey work. Most recently, Guidestar published “Key Findings of the Late Fall 2011 Nonprofit Fundraising Study“. However, since the Alliance’s survey went out in December 2010, a better apples-to-apples comparison might be Guidestar’s “Key Findings from the 2010 Nonprofit Fundraising Survey“.

While combing through some of this data, I just loved how Guidestar framed their data findings from their most recent Late Fall 2011 survey, when they said:

“The findings of the late fall nonprofit fundraising study, which compare fundraising results during the first nine months of 2011 to those during the same period a year ago, present a glass half empty/glass half full picture“

Another way to look at this is in the context of a “tipping point,” which is of course the point in time when a situation can go in either direction — good or bad.

Looking at the 2011 Guidestar report, I found the following data points interesting:

41- percent of survey respondents said charitable receipts increased in 2011 over 2010, compared to 36-percent in 2010.
8-percent of agencies responding reported they are in danger of closing their doors for financial reasons. However, when you break it down by budget size, the picture changes and 20-percent of smaller organizations find themselves in this position in 2012.

So, today the glass is half full because the unemployment rate fell to its lowest level in three years and charitable giving appears to be slowing improving. However, the glass is half empty because the demand for non-profit services seems to be tremendously increasing and a significant number of smaller non-profit agencies seem to be on the verge of going out of business as government funding dries up.

We’re at a tipping point, indeed! Stay tuned for what is sure to be a very interesting year ahead of us.

As your agency looks forward to 2012, what do you see that is positive for you? What concerns you? Please use the comment box below to share your thoughts as well as what you’re doing to position your agency for survival.

Here’s to your health!

The Secrets to Their Success?

January 5, 2012 DonorDreams Fundraising, nonprofit

Yesterday was a fun day for me because I managed to get out of my home office and spend some time in the field trying to sell work. So, I hopped in my car and visited one resource development director and two executive directors. During the long drive home, I reflected on each of those three visits and came to the same conclusion:

In spite of sluggish economic growth,
there are some non-profit organizations
that are doing very well!

Here is a quick run down of what I saw in the field:

A fundraising professional with approximately 6-months under her belt at a new agency, planned and executed a $500,000 direct mail campaign in the fourth quarter of 2011.
An executive director who essentially closed a significant budget deficit in a matter of just a few months.
An executive director who quarterbacked a fairly reluctant board through the planning and implementation of a new annual campaign (developing a new revenue stream for their agency that is approaching 10-percent of their overall revenue budget).
A CEO whose non-profit organization has experienced a: 38-percent increase in individual giving, 80-percent increase in foundation contributions, and 222-percent increase in corporate sponsorships . . . all over the last two years. In fact, just last year this agency signed up 250 NEW donors.

I thought this economy was supposed to be big, bad and ugly for non-profit organizations? So, being the curious person that I am, I asked lots of questions and here are some of the things I discovered that I believe are “The Secrets to Their Success”:

Investments in marketing — aggressive pursuit of public service announcements using print, radio and television helped two of these agencies generate amazing awareness and mission-focus throughout the communities they serve.
Investments in fundraising staff — all three of these organizations had either hired more fundraising professionals or were talking about doing so. It reminded me of something my for-profit friends are constantly saying: “It takes money to make money.”
Engaging prospects and donors — all three of these organizations haven’t been shy about calling lots and lots of people (both existing donors and lots of new folks who have never given them a penny). The strategy was simple . . . be aggressive . . . get as many people on-site to see what their agency does . . . don’t ask for money right away, but ask them shortly thereafter (a few weeks to a few months later).
Re-developing the board — two of the three organizations have been diligently working on identifying, cultivating and recruiting new board volunteers who are capable of writing nice checks, are willing to introduce their friends to the agency’s mission, and aren’t afraid to ask others to make a contribution.

While the last 4-years have been brutal for many non-profit organizations and some recent survey research shows that many more are on the brink of insolvency in 2012, I believe that good executive leadership with a bullish and aggressive approach to resource development and non-profit management is “the cure for all that ails you”.

Here are a few bloggers who I like pertaining to marketing, hiring fundraising staff, cultivation & stewardship, and board development:

Katya’s Non-Profit Marking Blog is a genius and I’ve followed her work for years
Mission Connected blog hits the nail on the head when it comes to hiring fundraising professionals
The Fundraising Authority blog outlines a very nice systemic approach to supersizing your cultivation efforts
Larry Checco at about.com provides some great board development tips you might like

As you look around your community, has your non-profit organization performed better than the others over the last few years of recession and sluggish recovery? If so, please use the comment box below and share one or two of your secrets. Remember . . . we can all learn from each other.

Here’s to your health!