Fundraising – Page 41 – The Healthy Non-Profit

What can fundraising professionals learn from the Iowa Caucus?

January 4, 2012 DonorDreams Fundraising

Welcome to the 2012 Presidential campaign season! I watched hours of news coverage of the Iowa Caucus and my eyes are about to melt out of my head. However, I walked away from the coverage with what I think is a very clear lesson to be learned for fundraising professionals.

The Obama campaign has been chugging along and exceeding its fundraising for about a year now. They have done this in the middle of a soft economy, which has seemingly posed problems for many non-profit organizations. Many political observers believe that Obama will raise a record-setting $1 billion for his re-election bid.

While Team Obama has continued to raise money, the same can’t be said for the Republican field. If you add up all of the fundraising efforts from all of the current Republican candidates, it still doesn’t come close to Obama’s totals. Is this because Obama is that much better at fundraising? Or is it because Obama is the clear choice of the political donor base?

The current political thinking is that once Republicans settle on their general election candidate, donors will line-up and both candidates’ war chests will equalize. It might be possible that both the Democratic and Republican candidates will have in the neighborhood of $1 billion EACH to run their campaigns.

So, you’re probably asking yourself: “Where is the lesson for non-profit fundraising professionals?”

I think there is a valuable lesson to be learned about your non-profit organization’s case for support.

I believe many Republican donors are sitting on the sidelines because the case for support isn’t focused. There are too many different reasons to donate to too many candidates.

Mitt Romney’s case for support involves “electability” and business experience.
Ron Paul’s case for support focuses on libertarian principles and shrinking the size of government.
Rick Santorum’s case for support centers around traditional values and national security.

Eeeeeeek! If I were a Republican donor, I’d probably take a wait-and-see approach, too.

In these tough economic times, non-profit organizations would do themselves a favor if they spent the first few weeks of January 2012 re-focusing their case for support documents.

Donors like clarity. Donors like winners.

When is the last time your organization revisited its case for support documents? How do you ensure your case is aligned with your donor base? What have you found to be the most difficult part of developing your case? Have you ever considered that your written case for support might actually be costing you money? Please use the comment box below to weigh-in with your thoughts and opinions. 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

Oooops! I forgot my annual campaign plan

January 3, 2012 DonorDreams Fundraising

The holidays are behind us and a new year is here. While this is obviously a time of renewal and fresh starts for some people, it is most likely annual campaign season for many non-profit organizations. I see Boys & Girls Clubs gearing up for their “It Just Takes One” campaign. The Boy Scouts are powering up their “Friends of Scouting” campaign. I also see many YMCAs hitting the streets with pledge cards in hand.

So, why would so many well established charities hit the streets with pledge cards in hand this close to the holiday season?

This seems to be a time (January through April) of the year when donors have a little more time to sit down and talk. Don’t believe me? Think about what your summer look like (e.g. vacations, etc). Now think about your fall (e.g. back to school, United Way blackout period, third quarter sales projects accompanied by planning for fourth quarter initiatives, etc) Now think about the holiday season that we just exited (e.g. shopping, holiday parties, etc).
Pledge drives are wonderful in the sense that non-profits aren’t asking for cash . . . they only want you to sign an IOU. This means that every month you wait to ask a donor to sign their pledge card there is that much less time for the donor to stretch out their pledge payments. Let’s do the math on a $500 pledge. Asking in January means the donor can make up to 12 payments of $41.66. Making the same ask mid-year translates into approximately six payments of $70 – $80. Waiting until September only gives the donor a few months to pay their pledge and results in payments in the neighborhood of $125.

The first bullet point is the bigger reason for planning a January through May campaign unless your annual campaign is direct mail driven. The second bullet point is more relevant to non-profits whose fiscal year ends on December 31st. While it is true that pledges can be dragged over into a new calendar (and fiscal) year, many non-profits like to keep their books clean as they prepare for their year-end audit.

I can’t tell you how many times I’ve seen non-profit friends get into early January with first and second quarter revenue budgeted for an annual campaign, but no written plan in place on how to move forward. If you find yourself in this situation, you’re in good company. However, you may want to reach for your “To Do List” and add the following things to it for this week :

Develop your Range of Gifts chart. (Click here to read a really good article on this from Joanne Fritz at about.com)
Engage a few volunteers and start brainstorming names of prospective donors who fit into various gift ranges.
Build a prospect list of potential volunteer solicitors who you think possess the skill sets and experiences to do a nice job with a personal solicitation model (e.g. face-to-face asks)
Start recruiting from your volunteer solicitor prospect list.

If the end of 2011 was a blur and you find yourself at the beginning of 2012 without a written annual campaign plan, these simple four bullet points are a great place to start. However, you can’t afford to dilly dally. These four things are your tasks for this week. There is still a mountain to climb. If you want to get a preview of your impending journey, you might want to read this very thorough article by Henry Rosso and Robert Schwartzberg that I found online at The Center on Philanthropy at Indiana University.

Are you one of those non-profits who find themselves without a plan? If so, what do you find on your “To Do List” this week and next week? If you are one of those well-planned agencies, what advice or suggestions do you have for those who aren’t as fortunate? Please use the comment box below to weigh-in with your thoughts because we can all learn from each other.

Here’s to your health!

The Final 2012 Non-Profit Prediction

December 30, 2011 DonorDreams Fundraising

This entire week we’ve been looking back upon 2011 for major trends, and then looking forward to 2012 with an eye towards making a few predictions. Today’s post speaks to a fundraising prediction that has been true every year since the birth of our country more than 235 years ago:

If you ask people to donate, then you will raise lots of money.

A few days after Christmas, a friend sent me an email with the following Benjamin Franklin quote from Benjamin Franklin: The Autobiography and Other Writings:

“It was about this time that another projector, the Rev Gilbert Tennent, came to me with a request that I would assist him in procuring a subscription for erecting a new meeting-house. It was to be for the use of a congregation he had gathered among the Presbyterians, who were originally disciples of Mr. Whitehead. Unwilling to make myself disagreeable to my fellow-citizens by too frequently soliciting their contributions, I absolutely refus’d. He then desired I would furnish him with a list of the names of persons I knew by experience to be generous and public-spirited. I thought it would be unbecoming in me, after their kind compliance to me solicitations, to mark them out to be worried by other beggars, and therefore refus’d also to give such a list. He then desir’d I would at least give him my advice. “That I would readily do,” said I; “and in the first place, I advise you to apply to all those whom you know will give something; next, to those whom you are uncertain whether they will give anything or not, and show them the list of those who have given; and, lastly, do not neglect those who you are sure will give nothing, for in some of them you may be mistaken.” He laugh’d and thanked me, and said he would take my advice. He did so, for he ask’d of everybody, and he obtained a much larger sum than he expected, with which he erected the capacious and very elegant meeting-house that stands on Arch-street.”

Ben Franklin is considered by most people to be the “Father of American Philanthropy”. His advice is timeless and perfect for those non-profit executive directors and fundraising professionals who are stewing over what their 2012 new years resolution should be:

Don’t say “NO” for anyone.

Ask everyone if they want to support your mission
and invest in the outcomes and impact your agency produces.

Ask! Ask! Ask!

If you do this, then my 2012 prediction for you is that regardless of the economy and any other external influences your non-profit organization will thrive and you’ll exceed all of your fundraising goals.

Speaking of non-profit new years resolutions, do you have any? If so, please use the comment box below and share your thoughts because we can inspire each other.

Here’s to your health!

2012 Non-Profit Trends and Predictions: Rise of the Machines

December 27, 2011 DonorDreams Fundraising

This week I’m looking back upon 2011 for major trends, and then looking forward to 2012 with an eye towards making a few predictions. Today, we are looking at non-profit online giving and ePhilanthropy.

Back in late July and early August, I focused my blog posts on the various faces of ePhilanthropy including: Twitter, Facebook, online videos, website, and email. Ever since writing those post, I’ve kept my eyes open for evidence of this trend, and I must admit that I see indicators everywhere pointing to:

2012 will continue the long-term transition towards online giving.

Every year at this time, I read blogs predicting that the upcoming year will be “The Year of ePhilanthropy,” and every year I look back and fail to see the big transformation. Well, I am being a big ‘ol dummy because the transformation isn’t going to be dramatic and sudden. The change (as is the case with most trends) will take place over time, and in fact it has been taking place for years.

The proof can be found in the data and analytics provided by Blackbaud who publishes a monthly index of online giving that compares year-over-year online giving statistics. Take a look at the last 12-months and let me know if you see can see the proof in the pudding:

While the overall gross revenue from online giving is still relatively small (between $5 and $10 billion), the trend arrow is pointing up-up-up and has been for many years. Additionally, this trend is not just being fueled by large, multinational health and disaster relief organizations. I was surprised when I saw how much year-over-year growth in online giving came from small non-profit agencies and organizations in the non-profit human services sector. If you have some time, I encourage you to click here and dive into Blackbaud’s treasure trove of data.

Of course, what gives me the most confidence in predicting this trend is what I see going on with our “for-profit cousins” and e-commerce. Click here to check out some very cool e-commerce infographic at “Next Widgets” blog. If my eyes aren’t deceiving me, I see parallels between e-commerce and ePhilanthropy.

More and more people are spending time and money online, and this reality can mean only one thing for non-profit organizations. As a matter of fact, this trend isn’t just confined to non-profit and for-profit businesses. Just last night Rock Center with Brian Williams featured a news segment on individuals who are using crowdfunding sources like Kickstarter to secure financial resources for things ranging from start-up projects to catastrophic healthcare expenses. Click here to read and see more.

Unfortunately, this trend is not as simple as it seems. The online world is constantly changing . . . what seemed as easy as building a website with a “donate now” button is now more complicated with Facebook, Twitter, LinkedIn, Google+, YouTube, WordPress, and email marketing (e.g. Constant Contact). All of these things work together like little cogs in a complicated machine.

More distressing is how quickly the landscape changes. I can still remember when AOL was the future of all cyber-things (and it wasn’t just me who thought this to be true . . . go talk to our friends over at Time Warner . . . LOL), and today it is all about Google and Facebook. Well, just wait because in no time we might just find ourselves saying the same thing about these new digital overlords as we ohhhh and ahhhh over the next greatest thing.

It sounds like 2012 will be the year that Facebook finally takes itself public with an IPO designed to raise $10+ billion dollars. I suspect that 2012 will be the “Year of Facebook,” and non-profit organizations who haven’t figured out how to use Facebook to talk AND listen to their supporters, donors, and volunteers will be starting on that project very soon. Click here to read a few interesting statistics about online giving via social media vehicles.

You might want to re-think your online giving plan if your strategy is “wait-and-see”. If you want to “get the lay of the than land,” I suggest circling back and reading my posts from July 25 – August 2 about ePhilanthropy (see links at top of this post). I ended that blog series with a post titled “ePhilanthropy: Mission Possible” that provided a few small steps for getting started.

Let me end with these cautionary words: online giving and the internet will NOT overtake traditional fundraising strategies and tactics such as face-to-face solicitation, direct mail, special events, grantwriting, etc. ePhilanthropy and all of its tactics are just more tools that you need to add to your resource development toolbox if you want your non-profit agency to thrive in the 21st Century.

So, please don’t run out there and invest tons of money and hours in ePhilanthropy in 2012 and expect that you’ve solved all of your revenue issues. However, please stop procrastinating and get to work on engaging your existing and future donors online.

This trend is starting to look like an out-of-control freight train, and you want to make sure you are on board and not standing in its way.

Does your agency have a written ePhilanthropy plan? If so, what does it look like? If not, what are your plans for tackling this emerging trend?

Here’s to your health!

The Twelve Days of Resource Development: Days 10, 11 and 12

December 22, 2011 DonorDreams Fundraising

We are literally just a few days away from the stockings being hung by the chimney with care in hopes that a big fat man breaks into your home in search of cookies and milk. In an effort to align this blog with the spirit of the season, I thought it might be fun to focus on the following holiday inspired question: “What would be the twelve days of resource development if such a song was written?”

On Monday, we kicked things off with Days 1, 2 and 3. On Tuesday, we looked at Days 4, 5, and 6 with two great reader suggestions from Barb Allen and Susan Rudd. Yesterday, we talked about Days 7, 8, and 9 and were blessed with a suggestion via Twitter from Ann Rosenfield, CFRE. So, I guess today is the grand finale.

I want to thank Dani Robbins (principal at Non Profit Evolution) and Barb Reynolds (Regional Chief Development Officers for the North Texas Region of the American Red Cross) for weighing in with their suggestions on what the tenth and twelfth days of resource development should be. However, before unveiling their suggestions, let’s recap the last few days:

On the first day of resource development, my favorite donor gave to me . . . a signed pledge with a large increase over last year’s gift level.
On the second day of resource development, my favorite group of fundraising volunteers gave to me . . . a commitment to work pledge cards and help put together our special events.
On the third day of resource development, my favorite resource development committee gave to me . . . three key written plans spelling out success in 2012 (e.g. resource development plan, prospect cultivation plan, and a donor stewardship plan.
On the fourth day of resource development, my most engaged and best donors gave to me . . . four fun cultivation parties that helped open the door to a warm group of new (and generous) prospects. (Barb Allen’s suggestion)
On the fifth day of resource development, the kids at the Boys & Girls Club gave to me . . . five truck-loads of holiday goodies and hand-decorated ornaments that will be given to some of the Club’s best donors. (Susan Rudd’s suggestion)
On the sixth day of resource development, my major gifts program gave to me . . . six program staff employees who helped the resource development staff and major gifts volunteers put together a “menu of opportunities” (thus signifying elimination of organizational silos and a healthy partnership between the resource development and program departments)
On the seventh day of resource development, my prospect researcher gave to me . . . 7 new donor prospects with 7 figure gift capacity. (Ann Rosenfield’s suggestion)
On the eighth day of resource development, the board development gave to me . . . eight new board volunteers who have an amazing understanding of resource development, lots of experience with fundraising, and ideas they are dying to share that will re-shape the organization’s RD Plan to reflect “The New Norm” of our economy.
On the ninth day of resource development, resource development thought leaders gave to me inspiration to practice . . . the 9-keys to inspiring and managing your board towards fundraising success (which are 1. Planning, 2. Setting Expectations, 3. Training, 4. Organization, 5. Well run and important meetings, 6. Accountability, 7. Urgency, 8. Celebration & Recognition, and 9. Mission-focus)

Here is what Dani suggested the tenth day of resource development should be:

On the tenth day of resource development my Board of Directors gave to me . . . 10-hours they’ve set aside for training, prospecting and planning.

Since no one weighed in with a suggestion for the eleventh day, here is my thought:

On the eleventh day of resource development my donor database gave to me . . . 11 donors who were willing to participate in a focus group on how my agency can improve its resource development efforts.

And finally, here is what Barb suggested the twelfth day of resource development should be:

On the twelfth day of resource development my annual campaign volunteers (also possible that it was the website’s “donate now button”) gave to me . . . twelve donors who opted for a monthly EFT gift for each of the 12 months of the year.

Great job everyone! I was reminded the other day in an e-newsletter from Marc Pitman — aka The Fundraising Coach — that “30% of all donations come in December.” With this thought in mind, my holiday wish for you is that your December is very active and profitable. Keep pushing all the way to December 31st at 11:59 pm.

Here’s to your health!

The Twelve Days of Resource Development: Days 7, 8 and 9

December 21, 2011 DonorDreams Fundraising

The countdown is on and people are on the look-out for an older gentleman fitting the description of “a jolly older individual dressed all in fur, from his head to his foot . . . his clothes all tarnished with ashes and soot“. In an effort to align this blog with the spirit of the season, I thought it might be fun to focus on the following holiday inspired question: “What would be the twelve days of resource development if such a song was written?”

On Monday, we kicked things off with Days 1, 2 and 3. On Tuesday, we looked at Days 4, 5, and 6 with two great reader suggestions from Barb Allen and Susan Rudd . . . and as I did on Monday I asked readers to weigh-in with what they thought Days 7, 8 and 9 should be.

I want to thank Ann Rosenfield, CFRE, who is a Twitter follower who goes by @GratiaCaritas for weighing in with her suggestion on what the seventh day of resource development should be. However, before unveiling Ann’s suggestion, let’s recap the last few days:

On the first day of resource development, my favorite donor gave to me . . . a signed pledge with a large increase over last year’s gift level.
On the second day of resource development, my favorite group of fundraising volunteers gave to me . . . a commitment to work pledge cards and help put together our special events.
On the third day of resource development, my favorite resource development committee gave to me . . . three key written plans spelling out success in 2012 (e.g. resource development plan, prospect cultivation plan, and a donor stewardship plan.
On the fourth day of resource development, my most engaged and best donors gave to me . . . four fun cultivation parties that helped open the door to a warm group of new (and generous) prospects. (Barb Allen’s suggestion)
On the fifth day of resource development, the kids at the Boys & Girls Club gave to me . . . five truck-loads of holiday goodies and hand-decorated ornaments that will be given to some of the Club’s best donors. (Susan Rudd’s suggestion)
On the sixth day of resource development, my major gifts program gave to me . . . six program staff employees who helped the resource development staff and major gifts volunteers put together a “menu of opportunities” (thus signifying elimination of organizational silos and a healthy partnership between the resource development and program departments)

Here is what Ann (aka @GratiaCaritas) tweeted about the seventh day of resource development:

@eanderson847 On the 7th day of resource development, my prospect researcher gave to me – 7 new donor prospects with 7 figure gift capacity.

Again . . . thanks Ann! I love that suggestion.

Since no one else jumped in with their thoughts, I am once again left to be creative with days 8 and 9 . . . so here goes nothing:

On the eighth day of resource development, the board development gave to me . . . eight new board volunteers who have an amazing understanding of resource development, lots of experience with fundraising, and ideas they are dying to share that will re-shape the organization’s RD Plan to reflect “The New Norm” of our economy.
On the ninth day of resource development, resource development thought leaders gave to me inspiration to practice . . . the 9-keys to inspiring and managing your board towards fundraising success (which are 1. Planning, 2. Setting Expectations, 3. Training, 4. Organization, 5. Well run and important meetings, 6. Accountability, 7. Urgency, 8. Celebration & Recognition, and 9. Mission-focus)

OK . . . there are only three days left in this exercise. Let’s try to “finish strong” . . . I would like to see at least three more people weigh-in with ideas on what the tenth, eleventh, and twelve days of resource development should be. Please use the comment box below to share your suggestion. You can also drop me a note on Twitter, LinkedIn or Facebook.

Here’s to your health!

The Twelve Days of Resource Development: Days 4, 5 and 6

December 20, 2011 DonorDreams Fundraising

The holiday spirit is in the air and Santa is loading his sleigh. Holiday music is on everywhere you go, and people are drunk on egg nog and fighting back sugar induced commas brought on by eating too many cookies. For all of these reasons, I thought it might be fun to focus on the following holiday inspired question: “What would be the twelve days of resource development if such a song was written?”

On Monday, we kicked things off with Days 1, 2 and 3 . . . and I asked readers to weigh-in with what they thought Days 4, 5 and 6 ahould be.

I want to thank Barb Allen from the Boys & Girls Clubs of Metro Atlanta and Susan Rudd from Boys & Girls Club of Bloomington (Bloomington, Indiana, of course which is the driving influence behind The Center on Philanthropy) for jumping in with two great suggestions.

So, let’s take a moment to recap:

On the first day of resource development, my favorite donor gave to me . . . a signed pledge with a large increase over last year’s gift level.
On the second day of resource development, my favorite group of fundraising volunteers gave to me . . . a commitment to work pledge cards and help putting together our special events.
On the third day of resource development, my favorite resource development committee gave to me . . . three key written plans spelling out success in 2012 (e.g. resource development plan, prospect cultivation plan, and a donor stewardship plan.

Here is what Barb and Susan suggested yesterday:

On the fourth day of resource development, my most engaged and best donors gave to me . . . four fun cultivation parties that helped open the door to a warm group of new (and generous) prospects.
On the fifth day of resource development, the kids at the Boys & Girls Club gave to me . . . five truck-loads of holiday goodies and hand-decorated ornaments that will be given to some of the Club’s best donors. (personally, I love this idea soooo much more than “five golden rings” LOL)

Since only two subscribers weighed in with suggestions yesterday, “the sixth day” was left up to me to determine.

On the sixth day of resource development, my major gifts program gave to me . . . six program staff employees who helped the resource development staff and major gifts volunteers put together a “menu of opportunities” (thus signifying elimination of organizational silos and a healthy partnership between the resource development and program departments)

Phew . . . it is getting more and more difficult to come up with ideas, which is why I sincerely appreciate both Barb and Susan for jumping in with great ideas yesterday.

There are more than 125 of you out there who subscribe to the DonorDreams blog and we need your help to finish this project. We have six more days of resource development to go and the hill is getting steeper. Please use the comment box below and weigh-in with an idea.

Remember, there is no such thing as a stupid idea. Additionally, please don’t forget that we can all learn from each other. I bet there is someone out there today who will read the comments from Barb or Susan and have a “EUREKA . . . AHA MOMENT”. This has happened to all of us at some point in time. So, why not give a gift to the resource development community and “pay it forward” this holiday season with the small gift of inspiration for a fellow fundraising professional?

Here’s to your health!

The Twelve Days of Resource Development

December 19, 2011 DonorDreams Fundraising

The holidays are upon us, and like many people out there I’ve been stuffing my face with cookies, egg nog and a number of other bad-for-you-sorts of things. I’ve also been indulging in things like visiting old friends and listening to holiday music. While singing along to “The Twelve Days of Christmas” in my car, I started wondering:

“What would be the twelve days of resource development if such a song was written?”

OK . . . I fully admit that I’m a dork and obviously have too much time on my hands. However, I haven’t been able to get this proposition out of my head and it is starting to fester. So, like I tend to always do, I’m going to write about it and ask you to please join in by using the comment section of this blog. I’ll tackle three days of resource development per day starting today and running through Thursday.

Come on . . . join in. This can be fun!

On the first day of resource development, my favorite donor gave to me . . . a signed pledge with a large increase over last year’s gift level.
On the second day of resource development, my favorite group of fundraising volunteers gave to me . . . a commitment to work pledge cards and help put together our special events.
On the third day of resource development, my favorite resource development committee gave to me . . . three key written plans spelling out success in 2012 (e.g. resource development plan, prospect cultivation plan, and a donor stewardship plan.

Well, the ball is now rolling. What do you think the fourth, fifth and sixth days of resource development are all about? Honestly, I don’t know and I’m hope for some good ideas from a great group of blog subscribers. I bet you don’t need to look too far from your desk and year-end efforts to come up with some great ideas.

Please weigh-in because we can all learn from each other. It is the perfect holiday gift to your fellow resource development profession.

Here’s to your health!

Final tips on building your agency’s individual giving fish tank

December 16, 2011 DonorDreams Fundraising, nonprofit, resource development

Welcome to Friday of individual giving week where we take a step back and try to put everything in perspective. We’re using characters from the movie “Finding Nemo” to look at various individual giving strategies.

“Crush the Turtle” helped us look at special event fundraising on Monday. Tuesday’s post focused on “Marlin” and direct mail. Dory helped us on Wednesday peek at some of the considerations around ePhilanthropy. Yesterday we looked at annual campaigns that have a personal solicitation approach at their core.

So, let’s turn to the dentist character from “Finding Nemo” because I think he wraps-up individual giving week nicely with this movie quote:

“I can’t understand it! Here this thing says it’s got a lifetime guarantee and it breaks! I had to take all the fish out, put ’em in bags, and . . . where’d the fish go?”

We need to always keep in mind the following immutable facts about individual giving strategies:

It isn’t about finding one individual giving tool and using it over and over again. We need to fill our resource development toolbox with a number of different individual giving strategies and use them together.
Once we build a comprehensive strategy that works with our unique set of donors, we need to understand that unlike the dentist’s fish tank there is no lifetime warranty. We need to be vigilant and continue evaluating and tweaking our approach. (e.g. mail lists need to be culled, online strategies are constantly evolving, etc.)
If we don’t couple our individual giving solicitation strategies very closely with a serious stewardship strategy focused on acknowledgement, appreciation, and demonstrating program outcomes/community impact/return on investment, then we’ll find ourselves in the same situation as the dentist with no more fish in the fish tank.
Human being are naturally inclined to want to belong to something and the best individual giving programs focus on that instinct in the following ways:

* evolving their solicitation strategies into a “membership campaign”
*tightly weaving their solicitation strategies together with stewardship activities resulting in “donor recognition societies”.
* developing a case for support that focuses on joining a “winning non-profit team” rather than using dire messages about impending financial crisis and tough economic times.

Being committed to constant evaluation involves developing relationships with our donors, asking for their feedback, and taking the time to engage smart volunteers to help pour over data and figure out what it is telling us. Here are some metrics we need to keep an eye on:

response rates
turnover/loyalty rates
click-through rates from email or social media message to webpage
number of gifts that increased vs. decreased vs. stayed the same
tracking crossover participation between fundraising vehicles
tracking donors and whether or not they are moving up the giving pyramid

The bottom line is this . . . it isn’t good enough to just build a world-class individual giving program that employs multiple strategies and tactics. While these efforts will net fundraising success, you will find your newly built fish tank that is full of pretty donors suddenly empty just a few years later. Remember, individual giving is all about individuals who filter their decisions through an emotional filter and they are always evolving. We need to evolve with those donors and meet them where they are at by committing to a donor-centered approach to resource development.

Finding time to 1) evaluate the data in a collaborative way with volunteers and donors, 2) figure out what it is telling us, and 3) make appropriate adjustments will help guarantee that our fish tank is never empty.

What does your individual giving program look like? How do you monitor your “donor fish tank” to make sure it is clean and not too dirty? What data and metrics do you look at? What tools do you use to gather data (e.g. donor database, donor surveys, focus groups, interviews, etc)? How do you involve fundraising volunteers?

Please take a minute this morning to weigh-in using the comment box below because we can all learn from each other. We have all become the professionals we are today because others took the time to invest in our development and help us grow. Please “pay it forward” with a comment today.

Here’s to your health!

Donors are friends and NOT food!

December 15, 2011 DonorDreams Fundraising

Welcome to Thursday of individual giving week where we’re looking at different individual giving strategies as a way to replace dwindling pools of government funding. We’re using characters from the movie “Finding Nemo” to look at various individual giving strategies.

“Crush the Turtle” helped us look at special event fundraising on Monday. Tuesday’s post focused on “Marlin” and direct mail. Yesterday, Dory helped us peek at some of the considerations around ePhilanthropy. Today, we’re looking at the granddaddy of all individual giving strategies — an annual campaign driven by personal solicitation approaches.

Let’s turn to the shark characters from “Finding Nemo” to look at this classic individual giving strategy. Why the sharks? Here is the “Fish Friendly Shark Pledge” that Bruce the Shark took when we first met him on the silver screen:

“I am a nice shark. Not a mindless eatin’ machine. If I am to change this image, I must first change myself. Fish are friends. Not food.”

When I read this movie quote, I was transported back in time to a Boys & Girls Clubs of America leadership training in which I participated with my friends Paula, Teri and Tom. The “Fish Friendly Shark Pledge” reminded me of our team’s motto: “Donors are not ATMs.”

Let’s back up and start at the beginning. I’ll circle back to the sharks in just a moment.

Annual campaigns that are powered by personal, face-to-face solicitations are one of the most classic individual giving strategies employed by many of our most successful non-profit organizations:

United Way’s annual campaign utilizes face-to-face group solicitations in the workplace.
Boy Scouts’ “Friends of Scouting” (FOS) campaign utilizes face-to-face solicitations. Some of these approaches are in group settings (e.g. Pack meetings) and others are one-on-one with local business leaders and scouting alumni.
Boys & Girls Clubs’ “It Just Takes One” (IJTO) campaign utilizes one-on-one, face-to-face solicitations with existing donors and qualified prospects from the community-at-large.

These kinds of campaigns are “classic” and ultra succesful because face-to-face solicitations are proven to be the most successful way to raise funds. National statistics demonstrate that 75-percent of prospects/donors who are asked in-person end up making a contribution of at least 50-percent of what the volunteer solicitor asked them to contribute.

Whoa! Compare this 75-percent success rate with direct mail’s response rate of 0.5-percent to 3-percent. Then consider that the response rate for an email campaign can vary wildly — lower than 0.5-percent or upwards of 10-percent from what I’ve seen — depending on how warm the list is.

Of course, nothing comes close to touching 75-percent!

However, there is always a “catch,” and in the case of annual campaigning and personal solicitation strategies “the catch” is that most fundraising volunteers are scared to death of it. Nevertheless, utilization of best practices can lower fear levels to something manageable. Here are just a few things your agency will want to use if it decided to use this classic individual giving strategy:

Develop a great case statement
Provide volunteers with good solicitation materials
Make sure volunteer solicitors have personally made a contribution before asking them to solicit their friends
Don’t overload volunteer solicitors with many more than 5 prospects
Be diligent with your prospect assignment process and only ask volunteer solicitors to visit prospect they know. NO COLD CALL!
Bring in an experienced training professional to teach volunteer solicitors about the 12-step process on how to make an effective face-to-face solicitation.
Develop and use “accountability tools” to help volunteer solicitors stay focused.
Find ways to inject a “sense of positive urgency” into the campaign. (I don’t mean using crisis messages. I am referring to deadlines, challenge gifts, campaign goals, etc)

Thoughtful use of the annual campaign and personal solicitation technique as a tool in your individual giving toolkit can net your agency amazing results in a very short period of time compared to the years-and-years it might take to develop a successful direct mail or ePhilanthropy program.

So, here is where “Bruce the Shark” from Finding Nemo comes into play . . .

Soliciting someone using an annual campaign personal solicitation technique is . . . well . . . very personal. It is relationship-based, which means the relationship needs to be fed in a very different way than you might interact with mail donors or online donors. Donors with whom you visit and ask for a contribution in-person expect updates on how their contribution is being used. They usually want to hear from you . . . newsletters, phone calls, personal follow-up visits, invitations to receptions, etc.

“Know Thy Donor” . . . and figure out how they like to be kept informed
because you’ll pay the price if you use a “cookie cutter approach” for this group of donors!

When an agency doesn’t follow-up and build upon the relationship, that donor feels used. They feel like an ATM, and you look like a shark who is just out there preying upon people’s good nature.

So, my final words today are this . . . 1) add an annual campaign with face-to-face solicitation at the heart of your approach to your agency’s individual giving toolbox and 2) develop a really good stewardship plan that grows the relationship between your agency and the donor. You may want to even develop your own version of the “Fish Friendly Shark Pledge“.

Does your agency run an annual campaign and visit with donors in-person? How is that working for you? What is your success rate? What does your stewardship plan look like? How do you communicate ROI, program outcomes, and community impact information to your donors? If you developed your own version of a “Donor Friendly Pledge,” what would it sound like?

Please use the comment box below to share your thoughts because we can all learn from each other.

Here’s to your health!