Category: Uncategorized

July 27, 2011 DonorDreams Uncategorized

Facebook and fundraising

My partner and I just rented “The Social Network” from Blockbuster two weekends ago. (Yes, I know I’m a little behind on my rentals). After watching the movie, I am left with the following questions:

How can Facebook be valued at $50 billion (source: Kerry Dolan of Forbes)?
How can Facebook have 750 million active members (source: Facebook statistics)?
Are there any fundraising success stories where a non-profit raised significant contributions using Facebook as a solicitation platform?

Of course, my curiosity got the best of me and I ended up spending hours and hours on Google surfing and clicking. I was a bit surprised when I didn’t find much of anything. As a matter of fact, The Chronicle of Philanthropy’s Peter Panepento blogged about it last year and concluded that Facebook isn’t a solicitation medium; it is a relationship building platform that might best be used for prospect introduction and awareness building as well as cultivation and stewardship activities.

It is important to remember that The Chronicle based its conclusions on “survey research,” which I believe always needs to be looked at a little skeptically. While there are truths in what was reported, I also found this interesting blog post by Sarah Kessler where she points to five successful Facebook fundraising stories (however I didn’t find much fundraising data backing up her conclusions).

While non-profits still seem to be figuring out how Facebook can fit into a well-rounded resource development plan, one trend that seems to be emerging is for-profit organizations partnering with non-profit organizations in the Facebook environment on cause-related marketing projects. For a good example of what I mean, check-out this example of what Arby’s is doing on Facebook to help end childhood hunger.

If you want to jump in and play on the cutting edge of philanthropy using Facebook, here are a few suggestions you may want to consider:

Do your homework first and make the decision upfront on whether you want to use “group fundraising strategies” or “traditional fundraising strategies” to develop, organize and implement your efforts. Peter Deitz has an awesome PowerPoint uploaded to SlideShare with lots of educational and benchmarking value.
Figure out the biggest question facing Facebook fundraisers … how can you encourage your efforts to take off and go viral? Ken Goldstein of The Nonprofit Consultant Blog demonstrates this idea nicely with his story about a woman and the Second Harvest Food Bank of Santa Clara and San Mateo counties.
Determine which of the four fundraising applications you will use in your Facebook environment (or will you more than one)? Peter Deitz of Social Actions did a nice job laying out all of your options in this NTEN blog.

I guess, I still hang onto the opinion that Facebook is probably still a better venue to create awareness, introduce prospects to your mission, cultivate prospects and steward donors. However, I am open-minded. What does your organization do on Facebook? Have you ever had resource development success on Facebook? If so, please share specifics. We can learn from each other.

Here is to your health!

Erik Anderson

Owner, The Healthy Non-Profit LLC

July 26, 2011 DonorDreams Uncategorized

Tweet me the money

As I mentioned on Monday, I plan on using the rest of my blog posts this week to look at different aspects of ePhilanthropy. Hopefully, I will be able to cover a lot of different subjects including Twitter, Facebook, email, websites, PURLs, online video, blogs, and more. Today, let’s touch on Twitter.

As I drove my good friend Teri to Midway airport on Monday, we started talking about social media and the role we see it playing in resource development. We both agreed that what we see being most successful is non-profit organizations using social media to acquire new prospects, spreading the word about their mission, focusing on their case for support, and stewarding donors by communicating ROI messages. Neither of us were able to really come up with very good examples of how social media has been used as a solicitation tool and raised substantial money.

This ate at me as I made the trip home from Midway airport. So, once I got home, I started searching for an example of a non-profit organization that used social media to solicit donors and could be held up as a success story. It didn’t take me long and I am a little embarrassed that I quickly found an example in my very own backyard of Elgin, Illinois.

In 2009, the Community Crisis Center has struggling because the State of Illinois is broke and significantly behind on paying reimbursements to non-profits holding state contracts. It was in this moment of need that The Center turned to public relations guru and social media expert Sarah Evans and asked her to work her online magic.

Sarah organized an online fundraising event that she called “Crisis Overnight“. On June 18th, she took her laptop to The Center and spent the night. All night, she blogged and Tweeted about her experience, what she saw, and the stories that unfolded in front of her. In a nutshell, Sarah brought the mission and case for support alive online. With every Tweet and blog post, she pointed her friends and supporters to an online donation page.

Needless to say, people were moved and Sarah was very successful. Her fundraising goal was $150,000 and she raised $121,397 according to the Community Crisis Center’s 2009 annual report. Not only did 700 donors make contributions online, but people got in their cars and drove donations to The Center ($800 arrived by foot between 6:00 and 9:00 pm alone).

This was not magic … here are just a few observations:

The technology didn’t raise the money. It was Sarah’s masterful way of bringing the mission to life, making the case for donors to get involved, telling stories about clients and services, and creating a sense of urgency.
It wasn’t just Twitter or blog or website or email … it was multi-channel and integrated. She used many tools and funneled everyone to an online donation page.
She didn’t just yell at the top of her lungs into the Twitosphere. She used the hashtag to focus and nurture a mission-focused conversation that walked people down the path of action.

So, here is one very cool example that flies in the face of what I initially believed about social media only being good for non-solicitation activities.

Has your organization ever attempted to use social media to solicit individuals? How did you do it? Was it successful or not? Why or why not? If not your organization, have you seen others try it? What was the result? We can learn from each other. Please use the comment box to share with everyone!

Here is to your health!

Erik Anderson

Owner, The Healthy Non-Profit LLC

July 19, 2011 DonorDreams Uncategorized

Romper Room time for fundraisers

“Romper bomper stomper boo! Tell me, tell me, tell me do. Magic mirror tell me today …”

Ah, now that brings back childhood memories of watching “Romper Room“. Sadly, I was always afraid of that last bit to end the show where the host recites those magic words and allegedly turn our TV set into a two-way window where she could see things that in reality really weren’t there. It was kind of like a magic crystal ball.

After reading an article on PNNOnline this morning about the future of the charitable tax deduction as part of the debt ceiling and budget debates, I’ve come to the conclusion that it is “Romper Room” time for the philanthropy community. Why? Quite simply, I believe everyone is pulling out their magic mirrors, trying to predict what “might happen” and how that “might impact” charitable giving, and weighing in with an opinion wrapped in rhetoric. Here is just one example from the PNNOnline article:

“The White House and Congress must understand that limiting the value of itemized deductions for charitable contributions will dramatically affect the charitable sector and those it serves,” said Andrew Watt, FInstF, president and CEO of AFP.

OMG … it is Godzilla! Run!

Additionally, AFP asked its members what they thought using a “web poll,” and more than half said they thought a reduction in the charitable deduction would result in a 10-percent drop in charitable contributions to their charities.

Seriously?!? There is no way that anyone including the President & CEO of the Association of Fundraising Professionals (AFP) can make statements with that much certainty. I need everyone to take a deep breath and consider the following:

It is a web poll … how scientific can that be?
Do we need to talk about the shortcomings of survey data? If so, there are two great reading assignments for you — assignment #1 and assignment #2. A piece of advice … this is bedtime reading. Zzzzzzzzz! Please trust me when I say the results are garbage.
Very few people make charitable contributions because of the tax code. They give because it makes them happy, they want to change the world around them, the right person just so happened to ask them, and the list goes on and on. Sandra Sims at Step By Step Fundraising did a nice job make this point in her blog on what motivates people to give.
While it is impossible to say with certainty, a large number of Americans don’t itemize their taxes and receive no tax benefit for making their charitable contributions.
There have been many “scientific studies” done on the effects of tax policy on philanthropic giving. Needless to say, their conclusions are all wishy-washy because there are too many factors to consider including: the state of the economy, income, perceived personal wealth, state of mind (e.g. consumer confidence), quality and degree of training of the non-profit volunteer solicitor, etc etc etc. Click here to read an academic paper by Lise Vesterlund based on the scientific method and psychology. Go ahead and try to read all 70-pages objectively. If you were being honest and fair, you’d agree that the conclusions should best be summed up by saying “I dunno!”

The fact of the matter is that the tax rates bounced all over the place in the 1980s and there didn’t seem to be much of a noticeable change in charitable giving.

So, if you are one of my fellow resource development colleagues running around like Chicken Little, I beg you to please sit down, take a pill and put down your Romper Room magic mirrors. There is no need for hysteria, and let’s stop trying to use science to bolster opinions because the reality is that human behavior is too difficult to explain by using “web polls” and rhetoric.

Tomorrow, I will continue this discussion and even try to play devil’s advocate. In the meantime, please use the comment box and weigh-in with you thoughts on this subject. Am I being too dismissive? Have you seen more convincing evidence? Do you have a strong opinion on how your non-profit might be affected? If so, what do you base it on?

Here is to your health!

Erik Anderson

Owner, The Healthy Non-Profit LLC

July 7, 2011 DonorDreams Uncategorized

Millennial generation puzzle

I recently received an email from a special event manager in Milwaukee, Wisconisn who recently read conflicting advice about the Millennial generation and whether or not it is worth resource development professionals spending the time and money to engage them. Here is how those two camps break-out:

School-of-thought #1: The Millennial generation is big (almost as big as the Baby Boomers) and they are streaming into the workplace and philanthropic marketplace at a very fast pace. These newcomers to the economy have the capacity to make charitable contributions and will one day replace their Baby Boomer parents as a driving force in philanthropy. A proactive thinking non-profit organization should invest the time and money to acquire these donors at a young age (regardless of how small their charitable giving actual is at this stage in their lives), steward them and earn their trust, and retain them well into their prime giving years.
School-of-thought #2: The Millennial generation might be big, but they don’t possess the same long-term giving potential as the Baby Boom generation. This generation will have a lower standard of living and wage scale than previous generations. They will be saddled with paying off government debts racked up by Baby Boomers. They also won’t have entitlement programs like Social Security and Medicare to count on in their retirement years; therefore, they will have to personally save more and donate less. Long-term retention of donors can be an expensive proposition, and it might be cheaper to wait until this generation reaches the height of its economic potential (in 10 or 20 years?!?!). Non-profits have limited resources and should prioritize time and money towards acquisition and retention of Baby Boomers until there is little to no return on investment left in doing so.

For me, I like to straddle the fence between these two points of view. I believe that non-profit organizations need to concern themselves with acquiring and retaining as many Baby Boomer donors as possible. Additionally, resource development professionals need to work with Baby Boomers on funding the needs of today as well as engaging in planned giving/estate planning discussions to fund the needs of tomorrow and leave a legacy.

I also believe the Baby Boomer’s time in the philanthropic spotlight is waning and might only significantly last another 10 years. So, acquiring and retaining new, younger donors is important for the sustainability of any non-profit organization. Good non-profits will figure out how to balance these two competing camps.

Of course, there are far too many non-profit organizations that are not capable of doing both things because they are resource strapped and stretched too thin for comfort. These resource-challenged non-profits will most likely fall squarely into the second school of thought. However, I hope that as those staff and volunteers journey down this path, they fully understanding they’re “kicking the can down the road” and will have to “pay the piper” someday. They are possibly running the risk that Millennial generation donors (who might not have the resources their parents had at their disposal) are in love with other non-profit organization who courted and wooed them 10 years earlier.

If your organization has just a little time and/or money to invest in acquiring Millennials, I urge you to do so. It doesn’t have to be a huge investment. Here are just a few examples:

Invest the time and money in maintaining a website that is transparent and shows the whole world how charitable contributions make a difference in your organization, with your clients, and in our community. Go so far as to routinely upload audits, annual reports, monthly financials, programmatic outcomes data, strategic planning scorecards, etc.
Work on creating your organization’s space on the social media frontier. Engage Millennials to help you evolve it and maintain it.
Create and maintain a volunteer management program focused on engaging Millennials. If you have the resources, get very serious and create a staff position to recruit, management, and steward these volunteers. Remember, Millennials are volunteer-oriented and the fundraising axiom that “money follows involvement” applies to all generations.
Create a young professionals group like a “guild society” to help young professionals network while getting more acquainted with your organization’s mission. This also could be a training ground for Millennials to experience philanthropy and learn more about the art of fundraising.

All of these ideas will cost you a fair amount of time (and even some money), but none of them are prohibitive in-and-of-themselves even for the smallest non-profit organization. However, this balancing act will NOT be easy for many reasons including limited resources and what appears to be increasing tensions between America’s generations. If you don’t buy into the fact that there are increasing tensions, check out some of these YouTube video clips as proof (including a dissection of a 60 Minutes segment on Millennials):

Resource development professionals best get started soon because the road ahead promises to be bumpy. How is your organization trying to acquire Millennial donors? Is there a difference in strategies and tactics between attracting, soliciting, and stewarding Boomers versus Millennials? Which school-of-thought does your non-profit fall into and why? Please use the comment box of this blog to weigh-in with your thoughts and best-practices. We can learn from each other!

Here is to your health!

Erik Anderson

Owner, The Healthy Non-Profit LLC

http://www.facebook.com/home.php#!/profile.php?id=1021153653

July 4, 2011 DonorDreams Uncategorized

Philanthropy and the Fourth of July

Happy Fourth of July everyone!

As with most Americans today, I find myself reflecting back on our country’s history. While doing so, I became curious about how the history of philanthropy is woven into America’s story. After a little bit of googling and thinking, it is very obvious that one of very cornerstones on which we’ve built our country is philanthropy and charity. Consider the following facts:

In 1628, the Massachusetts Bay Company established the first ever American “board” to manage colonial business.
In 1630, John Winthrop preaches to Puritans bound for America that it is the obligation of the rich to care for the poor.
In 1638, John Harvard’s planned gift establishes a major American educational institution.
Throughout the 1700s, Benjamin Franklin is involved in numerous philanthropic projects including creation of the first circulation library in Philadelphia. He arguably plants the seeds of philanthropy throughout the founding of our country.

The list goes on an on. Click here to see a very interesting chronology of philanthropy in America.

There is also a great white paper published on the website learningtogive.org that argues that the Declaration of Independence and U.S. Constitution are underpinned by philanthropic principles. First, consider that “philanthropy includes voluntary and active efforts to promote human welfare and well-being.” Look no further than the Constitution’s preamble that charges our new country with many things including providing for the “general welfare”. Click the aforementioned link to read so much more about how philanthropy is woven throughout the American tapestry.

I encourage you to take a moment this Fourth of July to reflect upon philanthropy’s roots in our American democracy and pay tribute to how it has made us the country we are today. Happy Fourth of July, everyone!

Here is to your health!

Erik Anderson

Owner, The Healthy Non-Profit LLC

http://www.facebook.com/home.php#!/profile.php?id=1021153653

June 30, 2011 DonorDreams Uncategorized

Hiring a fundraiser from the for-profit sector

A few weeks ago, I posted a piece about “Hiring a fundraising professional“. It has been one of the more well-read posts year-to-date. Since that post, I’ve had two close friends speak with me about changing their direction in life and pursuing a career path in non-profit work. In addition to providing them with my point-of-view, I found a FREE online resource by idealist.org titled “Idealist Guide to Nonprofit Careers for Sector Switchers“. It is actually a great resource that I suggest you pass along to any of your for-profit friends who might be considering a change.

So, what does this have to do with you hiring a fundraising professional (perhaps even your first fundraising pro)?

I have seen many non-profit organizations go through a search process for a resource development professional and end up with a bushel basket full of for-profit people claiming to possess “transferable skills” (e.g. marketing people, sales professionals, etc). I have also seen a number of these for-profit professionals fail miserably once they cross the great divide into non-profit work.

After reading “Idealist Guide to Nonprofit Careers for Sector Switchers,” I am convinced that those of you looking to hire fundraising professionals can use this guide to fine tune your search process, sharpen your interview questions, and sell your organization and its culture.

Chapter 5 of this guide tells job seekers how to make themselves more appealing to you. Reading this chapter might help you develop a better resume screening process (e.g. looking for for-profit candidates with volunteer, board, and/or internship opportunities).
Chapter 7 instructs candidates how to get a sense of organizational culture and assess if there might be a fit. You can turn this around and use the same tactics with the candidate to determine how well they might fit.
Chapter 12 addresses the challenges of “switching sectors”. You could use this information during the interview process to determine which candidates have thought this through and how they plan on dealing with the transition.

I could go on and on, but I will let you explore this wonderful resource for yourself. Happy reading!

Have you ever hired or worked with someone who “switched sectors”? How did it work out for them? What do you attribute their success or failure to? Please share your thoughts in the comment section and remember that it might be polite to “change the names to protect the innocent”. LOL

Here is to your health!

Erik Anderson

Owner, The Healthy Non-Profit LLC

http://www.facebook.com/home.php#!/profile.php?id=1021153653

June 29, 2011 DonorDreams Uncategorized

The 7 Ps and case statements

Yesterday, I wrote about the importance of crafting your organization’s case for support document, and I want to continue down this path a little further today. Back when I worked with the Boy Scouts of America, it wasn’t uncommon for me to hear a co-worker or volunteer lament “The Seven P’s” — “Prior Proper Preparation Prevents Piss Poor Performance”. If this revelation surprises you, then remember that “BE PREPARED” is the motto of the Boy Scouts .

After yesterday’s blog post, I realized that I might have made the case for revisiting and revising your case statement documents. However, I didn’t talk about how you can best prepare your volunteers to bring that case for support to life.

Here is an example of what some of our volunteers look like when they try to vocalize our case for support when sitting down with a prospect or donor … click here to see a less than perfect example of someone trying to make the case for their charity. Unfortunately, many of these volunteers commit the following mistakes:

They come across nervous or unsure of themselves
They don’t inspire confidence and passion
Their body language sends the wrong message
Some might even perceive that they don’t know what they’re talking about

This is not how we want our fundraising volunteers to come across; however, the reality is that we set them up for failure by not training and preparing them properly. Yes, many of us provide our volunteers with a copy of the case statement. Some of us might even go so far as to tell them what it is and why it is important. However, very few of us model the case statement’s appropriate usage or work with volunteers on practicing how to put it into their own words. Here are a few preparation tips you may want to consider:

Host a campaign kickoff meeting and use some time to review the organization’s case for support.
Ask volunteers to take a few minutes to read the case statement; then go around the room and ask everyone to share one impactful piece of messaging they took from the document.
Pair volunteers up with each other and ask them to take turns using the information in the case statement to “make the case for financial support” to their partner. Ask the person who is listening to also provide constructive feedback at the end of the exercise.
Use video technology to record each volunteer and meet with them separately with positive and constructive feedback.
Make sure that volunteers are personally solicited for their contribution prior to going out on their first solicitation, and make sure the person soliciting them is perfectly modeling usage of the case statement.
Make time to go on solicitation visits with volunteers. Take time after the visit to de-brief and discuss how the case for support might have been made more impactfully.

Volunteers will resist these efforts all in the name of “time”. However, you need to ask yourself if you can afford to send them out to talk to your prospects and donors less than at their best. If you invest a little time in “prior proper preparation,” they will become world-class fundraising volunteers who walk away from your campaign feeling good about the entire experience … click here to see a better example of someone trying to make the case for their charity.

How does your organization prepare fundraising volunteers to make the case for financial support from donors? Please share your best practices in the comment box below.

Here is to your health!

Erik Anderson

Owner, The Healthy Non-Profit LLC

http://www.facebook.com/home.php#!/profile.php?id=1021153653

June 27, 2011 DonorDreams Uncategorized

Viruses, hackers, spyware and donors oh my

Last Thursday, I turned my computer on and started preparing to write my daily blog, when suddenly my virus software sprang into action. A pop-up window told me that my computer was infected with a trojan virus and asked if I wanted it removed. Of course, I said ‘YES’. In a blink of an eye, I was staring at the dreaded “blue screen of death,”and I was obviously out of commission. It was for this reason you did not see any blog posts from me on Thursday or Friday.

During my unplanned time down, I started thinking about how non-profit organizations probably deal with this on a daily basis and how in some instances it could even impact donors who routinely feed us their personal information (e.g. name, address, phone, email, credit card and banking info, etc).

Upon further investigation, did you know that the Obama team, who has collected tons of donor information at donate.barackobama.com, had to dealt with hackers as recently as a year ago? And “Twitter hacking” has been in the news recently for reasons I refuse to go into.

Non-profit organizations are constantly collecting information on their donors and storing it in their donor database. In fact, with the social media revolution in full swing, non-profits are pushing further by “friending” donors on Facebook, following donors on Twitter, and linking with donors on LinkedIn. All of these activities are intended to help deepen our relationships with donors and get to know them even better.

It is a brave new world and non-profit organizations need to make sure they are ready to deal with these issue. If you don’t think spyware, computer viruses, phishing and hackers are an issue, then go talk to our resource development friends at the University of Notre Dame or Maine Public Broadcasting.

Put yourself in a donor’s shoes after being informed that your systems were compromised? Where is your confidence level? What is running through your mind the next time you’re asked to make a contribution?

Of course, the answer is not to unplug your donor database or shutdown the organization’s Facebook or Twitter accounts. However, you might consider the following:

Develop a privacy policy for donors like the one Hope House has posted on their website.
Use the Association of Fundraising Professional’s (AFP) Code of Ethical Principles & Standards and The Donor Bill of Rights as a foundation to develop your resource development policies.
Develop a crisis management plan like the one United Way of Marion County in Florida has posted to the internet and consider involving donors in the policy development process so you can capture their point of view on how they’d like to be informed on certain matters.
Develop a documentation retention policies so you know what you need to keep and how to securely keep it. Blue Avocado has done a nice job getting you started down this road, but you definitely need to involve your board volunteers, Finance Committee, auditors, and possibly even your donors in developing your own policies.
Use virus software and spyware software routinely. Check out Tech Soup’s “virus protection toolkit”.
Don’t ever email donor data or information.

If you really want to scare yourself, spend a few moments with this PowerPoint presentation from our friends at NTEN. Scared yet?

So, how do you protect your donor data? If your systems got hacked or compromised, how would you go about informing your donors and dealing with the crisis? Please weigh-in and share so we can all learn together!

Here is to your health!

Erik Anderson

Owner, The Healthy Non-Profit LLC

http://www.facebook.com/home.php#!/profile.php?id=1021153653

June 21, 2011 DonorDreams Uncategorized

Tin cup philanthropy

So, I was coming out of my local grocery store on Saturday and standing outside of the exit was a volunteer. She was holding a small plastic bank in the shape of a dog. Once I was in ear shot distance, she asked if I could spare some change for the local “low kill” animal shelter.

First, let me say that I know this charity. Second, let me say that I respect the work that this charity does. However, I did not part with my pocket change and found myself wondering instead:

How many hours was that volunteer standing there?
How much money could she possibly have collected during that time?
How much more money could she have raised in the same amount of time if she just asked a few of her friends who cared as much as she does about this cause to make a direct contribution?

Now there are some people who believe ALL charitable activities that ask people to make a contribution for nothing in return is “tin cup philanthropy”. If you don’t believe me, just read this Financial Times article for yourself. If you get really interested, you can cross check it with our friends at the Wharton School of the University of Pennsylvania who appear to have fallen in love with what they call “Experimental Entrepreneurship“.

As a donor and a resource development professional, I understand why so many people see traditional philanthropy as begging with a tin cup, and it goes beyond just the volunteer standing outside of my local grocery store begging for her charity of choice. It extends to many non-profit organizations who recruit volunteers who are “reluctant solicitors” in the first place and then provide little to no training to those volunteers. The end result is typically well-intentioned people going to their friends and neighbors begging them to make a pledge, purchase a raffle ticket or attend an event.

When this happens, very little time is spent talking about the community needs that the charity might be addressing with its programming. To be frank, it typically sounds like begging and sometimes degenerates into quid pro quo or favor granting.

While I am intrigued with “experimental entrepreneurship” and see nothing wrong with charities exploring it as revenue stream, I don’t think it is “the answer” to tin cup philanthropy.

Non-profit leaders need to recruit the right volunteers for their fundraising activities, and they need to do a better job of training and supporting those volunteers. Let’s stop begging and start talking about our mission; community needs & gaps; our programs, services & solutions; and most importantly the “return on investment” for the community that comes with making a charitable contribution.

Only once we start doing this will we be able to retire the old tin cup.

What has been your experience as a donor? A volunteer solicitor? If you are a non-profit staff person, am I off-base with my conclusions? And is anyone excited about experimental entrepreneurship and why?

Here is to your health!

Erik Anderson

Owner, The Healthy Non-Profit LLC

http://www.facebook.com/home.php#!/profile.php?id=1021153653