Latest Posts

Is your holiday mail solicitation personalized?

Fundraising, technology

mail mergeI had the privilege of interviewing a young fundraising professional yesterday for an online article that I am writing. In that interview, we talked for almost an hour about direct mail and her passion for learning as much as she can about that industry’s best practices and how to apply it to her non-profit fundraising work.
We spent a good long time talking about her passion for “mail merge“.
I know, I know. To those of you who don’t do much work on the snail-mail side of the fundraising profession, this probably sounds a little funny. After all, isn’t mail merge simply a word processor function?
The reality of direct mail and targeted mail is that the more personalized you can make your mail piece the more effective it will be in raising money for your organization. In other words, a letter that begins with “To Whom It May Concern” or “Dear Friend” will raise significantly less than “Dear Erik” or “Dear Mr. Anderson“.
Of course, for many of us, mail merge begins and ends with the salutation at the top of the letter. But this was NOT the case for my energetic young interviewee yesterday. The following are just a few of the ways she was using mail merge in her fundraising letters:

  • Customized salutation (as described above)
  • Customized signatory (board member with a relationship to the donor)
  • Last year’s gift amount
  • This year’s ask amount
  • Customized gift level check boxes on the response card
  • Customized message on the outside envelope

To say this fundraising professional is in love with the mail merge as a tool would be an understatement. As would be my admiration for someone who exhibits that much passion for her work with donors and the art of philanthropy.
You might be wondering about the last two bullet points pertaining to the response card and the exterior envelope. Let me try to clarify in the space below.
With regard to the check boxes on the response card, there is some good evidence that indicates that the numbers you use psychologically factor into the donor’s decision.
For example, if a donor gave $275 last year and you’ve asked them to consider a $350 gift this year, some experts say you should not provide check box options with big gaps (e.g. $250, $500, $1000) because the donor will likely round down if last year’s gift is closer to that number instead of rounding up. To combat this psychology, using mail merge to customize the options (e.g. $275, $350, $500) can help increase the effectiveness of your upgrade strategy.
With regard to the customized message on the outside envelope, there is good evidence that people open mail from people they know. For example, an envelope that simply indicates there is something from your non-profit organization is less likely to be opened because donors can guess it is likely a solicitation and treat it like they do other direct mail. However, mail merging a message such as “A message from [insert BD vol name] is inside” will increase the odds of the donor opening the envelope because we all give consideration to our friends.
There is no doubt that direct mail and targeted mail are complicated and involve proven practices (aka the science of direct mail), which is why talking to young, enthusiastic fundraising professionals about this topic always does my soul some good.
So, my tip for today as it relates to direct mail is MAIL MERGE is your friend!
The following are a few older DonorDreams blog posts on the topic along with a few other resources:

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

Is your non-profit engaging in #CharityShaming?

Fundraising

charity shamingOK . . . I have a confession to make. When I’m on the road and run down, sometimes I flop into bed and watch an episode or two of South Park on Comedy Central. While the show’s satire is often over the top, their social commentary on all sorts of current events is razor sharp. A few nights ago I found myself caught up in this “travel habit” and engaged in watching season 19 episode five, which was all about Internet Shaming and included a subplot about Charity Shaming.
If you don’t know what charity shaming is, this short YouTube video snippet from the South Park episode captures it perfectly.
https://www.youtube.com/watch?v=aKsOwJ8AGWo
Of course, the example South Park uses focuses on a point of purchase transaction that you could assume is likely part of a larger cause related marketing effort. However, this episode kicked me in the brain, and I think there are many other examples of charity shaming that go beyond the cash register.
For example, what about the Salvation Army’s red kettle campaign. I’m greeted by a volunteer who is ringing a bell and wishing me a Merry Christmas and asking for a donation. I need to decide whether or not to publicly walk by the kettle and not support the charity.
If I am right about the Salvation Army aforementioned example, then surely Cub Scouts and Girl Scouts selling stuff outside of grocery stores gets added to the charity shaming category. And my old favorite activity (read this as sarcasm) of selling duck race adoptions to unsuspecting customers exiting the grocery story is another example. Right?
I recently attended a few different charity gala ball charity / auction events in my community. During those events’ live auctions, there was something called “fund-a-need” where attendees are asked to put their bid paddle in the air and make a contribution to support a specific project at a certain funding level. If you want to learn more about this fundraising strategy, our friends at Fundraiser Help blog do a nice job explaining it.
In previous years, I’ve enjoyed putting my bid paddle in the air to support fun projects and programs. One year I think I bid on underwriting the cost of a mattress (or maybe it was a blanket) for our local homeless shelter. Another year, it was underwriting kitchen renovations and a food program at our local Boys & Girls Club.
However, recently the fund-a-need strategy has evolved away from projects / programs and towards a more simple request of “we need your money to underwrite everything we do for our clients“.
There was something I didn’t like about the new fund-a-need strategy, but I couldn’t put my finger on it. At first, I thought maybe I just missed the emotional case for support messaging that came with a specific project or program. However, now I’m beginning to wonder if my objection is bigger than that.
Could it be that asking people to put their bid paddle up in the air in front of their peers and friends to simply give an unrestricted contribution to your organization is nothing more than “Charity Shaming“?
I’ll leave it there today and let you chew on this question. If you have thoughts or opinions, then please use the comment box below to share them. I would love to hear what you have to say because I am honestly struggling with what bothers me about fund-a-need auction strategies that lack project and program components.
You might also want to check out the following:

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

Holiday stewardship can be as easy as baking cookies

Uncategorized

cookiesA few days ago I found myself talking with an old friend who is an executive director for a youth development non-profit organization in Indiana. We were chatting about her organization’s year-end stewardship strategies, which include something called a “Cookie Drop.”
It is the holiday season and many of you are probably baking. So, I decided to share her stewardship recipe with you this morning:

  • Recruit kids
  • Bake and decorate holiday cookies on a Saturday
  • Package cookies in tins (could be simpler packaging)
  • Include a handmade holiday card (include short “impact message”)
  • Use donor database to identify Top 10 donors
  • Call donors and let them know you’re coming over
  • Put kids in van and drive to donor’s house or business
  • Sing a holiday song or two
  • Thank the donor for all of their support
  • Stick around, answer questions and leave when it feels appropriate

I asked her if she has ever measured her results, and her response was perfect. She said that everyone who has received her kids cookies over the last 10 years are still donors unless, of course, they moved away or passed away.
My mom just shared an old family recipe for holiday ball cookies with me the other day. As you can see from today’s post, this executive director shared her holiday stewardship recipe. ‘Tis the season for sharing. Do you have any year-end stewardship strategies or simple activities that you would like to share? If so, please scroll down and do so in the comment box. 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

The key to growing corporate relationships? Matching gifts!

Fundraising

Good morning, DonorDreams readers! As the Beatles sang so many decades ago, “I get by with a little help from my friends“. As you know, I’ve been relying on a number of guest bloggers to get me through a busy period. Today’s guest post is from Adam Weinger over at Double the Donation blog.Adam shares  I hope you enjoy this morning’s post.  Here’s to your health!  ~Erik

How Your Nonprofit can use Matching Gifts to Grow Corporate Relationships

By Adam Weinger
Double the Donation
matching giftMatching gifts are a great way for your nonprofit to receive twice as many donations from donors and their employers. While this benefit is obvious, did you know that matching gifts can also help your nonprofit create and cultivate relationships with corporations?
Nearly every company is looking to expand and improve its culture of corporate social responsibility. Your nonprofit can help these businesses achieve their goals while you simultaneously promote matching gifts to your donors!

Here are three ways that your nonprofit can use matching gifts to cultivate corporate relationships.

If your nonprofit has existing partnerships with corporations that provide stellar matching gift programs to their employees, thank those companies for encouraging employee giving and helping your nonprofit accomplish its mission.
Take a look at Double the Donation’s list of the top matching gift companies to see if any of your corporate partners made the cut!

1. Press releases

Sending out a press release is one of the best ways for your nonprofit to put the spotlight on your corporate partners. Not only is this a highly visible and simple way to let people know about the good that your organization’s corporate partner is doing, but it also gives you an opportunity to let others know more about your nonprofit in general.
A sample press release should include information about:

  • Past donations.
  • How long your nonprofit has been partnered with the company.
  • How many employees have taken advantage of the matching gift program.
  • The other types of corporate giving programs that the company offers.
  • Any other pertinent information.

Press releases draw attention to the philanthropy of the companies that help your nonprofit and educate the general public about your nonprofit and the work that you’re doing. Plus, the company’s employees feel good knowing that they work for a business that regularly gives back to causes that they feel deeply about. They’re a win for everyone involved!

For help on getting started forming partnerships, check out these best practices.

2. Use your nonprofit’s website to acknowledge corporate partners

Many donors are already using your organization’s website to make their donations. Why not use the opportunity to promote the generosity of the corporations that offer matching gift programs?
If you already have a dedicated matching gift page on your nonprofit’s website, add some information about companies that have outstanding matching gift programs to educate donors about doubling their donations while simultaneously thanking and acknowledging those companies.
If you don’t have a dedicated matching gift page on your website, set one up so that donors know exactly how they can maximize their donations and can research the companies that offer them.
Additionally, promoting your corporate partnerships and their matching gifts can help ensure that those partnerships thrive and continue down the line.
For ways to use ePhilanthropy to secure matching gifts, check out this article.

3. Recognize corporate partnerships and matching gift programs at events

Whether your nonprofit is hosting a gala, auction, walkathon, or other fundraising event, you can make the most of a captive audience to thank your corporate partners and laud the matching gift programs that they offer their employees.
Obviously, don’t overshadow the corporate sponsors that have made your fundraising event possible. But it’s a good idea to give a shout out to all of the companies that have helped your organization in one way or another.
When you publicly announce and promote the businesses that have assisted your nonprofit with their matching gift programs, you not only strengthen the existing nonprofit-company relationship that you have, but you also let other individuals know about matching gifts.

* * *

There are many benefits that nonprofit-corporate partnerships can produce. When those companies offer matching gift programs, your nonprofit is doubly rewarded. Recognizing your corporate partners online and in person is your nonprofit’s way of acknowledging their generosity and drawing attention to their outstanding matching gift programs.

Hangin’ with Henry and talking about use of language and your case for support

Uncategorized

As most of you know, the first Thursday of every month has been dedicated to featuring a short video from Henry Freeman, who is an accomplished non-profit and fundraising professional. As you may know, Henry recently published a new book titled Unlacing the Heart. If you haven’t had a chance to check-it-out yet, I strongly urge you to do so. (To re-visit last month’s book review, check out the post titled “A book every fundraising professional MUST read!“)
In the last few weeks, I’ve been answering a lot of questions from new fundraising professionals about the difference between an internal case for support document (also called a case statement) and an external case for support document (also commonly referred to as a campaign brochure or an appeals letter). So, when I recently viewed one of Henry’s video snippets on internal vs. external language with regards to donor communications, I thought this might be the perfect time to share it with the DonorDreams community.
For those of you who subscribe to DonorDreams blog and get notices by email, you will want to click this link to view this month’s featured YouTube video. If you got here via your web browser, then you can click on the video graphic below.

I know there is very little time in a busy fundraising professional’s life, which makes cutting corners hard. However, writing an internal case for support (aka case statement) is an important exercise before doing any of the following fundraising activities:

  • annual campaign
  • special event
  • direct or targeted mail
  • grant writing

Sitting down and pouring your thoughts out on a piece of paper will help you crystallize what and why you’re doing what you’re doing. It will help you with answering the the following questions:

  • What is the need?
  • How do we know it is a need?
  • Why the sense of urgency?
  • What is our organization doing to help address this need?
  • Who will this benefit?
  • How can donors help and get involved?

As Henry describes in his video, you will use lots of internal language in developing your internal case document, which is OK because the only people who will see it are staff and volunteers. You will then use this document to:

  • develop your external communications pieces (e.g. letters, brochures, etc )
  • develop support documentation for fundraising volunteers (e.g. FAQs, fact sheets, etc)
  • develop trainings for volunteers
  • develop talking points for volunteers

When going from internal to external, Henry hits the nail on the head when he warns us not to use jargon or language that people outside of our organization may not connect with.
When is the last time you wrote an internal case for support (aka case statement)? What was your experience? What would you do differently? Was it beneficial? Please scroll down to the comment box and share your thoughts and experiences. 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

Expand your volunteer base by engaging donors

volunteers

Good morning, DonorDreams readers! Tis the season, and as you know my aggressive travel schedule as of late necessitated me reaching out to my circle of awesome blogger friends for a little help. Today’s guest post is from Corbit Harrison and our friends at VolunteerHub. Corbit shares how you can find great volunteer prospects from among your donor base. I hope you enjoy this morning’s post.  Here’s to your health!  ~Erik

3 Tips for Asking Donors to Volunteer

volunteersIf you’re seeking to expand your volunteer base, you may not need to look very far.
In fact, you may already have some terrific candidates within your reach — right there in your donor database. These individuals obviously care about your mission, so converting donors to volunteers many times is simply about communication.
In this article, we’ll take a look at a few different strategies to engage your donors in creative ways.
Send a Survey
In general, people love to give their opinions. If you develop a survey for donors, you can get a better picture of them as a whole and also learn more about them individually. Ask them about their professions, interests, and hobbies. Based on your donors’ responses, you may be able to pinpoint very specific skills-based volunteer opportunities that would engage them.
Of course, go ahead and list some of your ongoing opportunities as well to see if those catch some interest. Be sure to ask if you may contact them about volunteering, and, if so, make sure to have them include their name and contact information.
Have Volunteers Share Their Stories
Your organization may want to hold a special recognition night for your donors. At an event such as this, it’s a time when you can communicate your mission and accomplishments. This is also the perfect time to engage donors by having a volunteer as a keynote speaker.
There is a move in the nonprofit world to “tell your story” to advance your cause – and with good reason. Statistics are important, of course, but numbers can pale in comparison to a message from the heart. Choose a volunteer who is fully committed to your cause and ask him or her to build a presentation around a couple key ideas. Among these should be how volunteering has impacted the volunteer’s life and the lives of the clients your organization serves. Make sure to coordinate with the volunteer so you can have some multimedia that compliments the message in terms of pictures and/or video.
After the volunteer’s speech, your volunteer coordinator can make a quick call-to-action pitch and outline upcoming volunteer opportunities. Make sure to communicate that donors can register for these opportunities before leaving the recognition night activities. Set up a landing page that is easily accessible via smartphone or mobile device. In doing so, you may get a handful of registrations before the night is over.
Develop Case Studies
Just as it’s important to tell volunteer success stories, also consider putting together a case study featuring the people you serve. This could be a flyer that you include with a donation letter or a mailer you could send on its own.
Once having their approval, interview them to find out (in their own words) what your organization means to them. If you can have them talk about how your volunteers have impacted their lives, even better. Make this flyer bold, colorful, and eye-catching with pictures of your clients (preferably with a volunteer). Be sure to highlight a few important quotes from your clients as pull-outs, and most importantly, don’t forget to include a call to action that directs people to your volunteer registration site. Cross promote these case studies on your organization’s website, blog, and email newsletter.
Expand Your Volunteer List with Donors
Encouraging donors to volunteer helps supporters see the good work your organization does. This is likely to further cement the relationship with your nonprofit and hopefully spur even more generous monetary donations in the future.

Corbit Harrison is the Chief Operating Officer for VolunteerHub and has been actively helping nonprofit organizations better engage constituents for over 10 years.  Connect with Corbit on Linkedin.

This Thanksgiving I am thankful for people like Bob

volunteers

IMG_20151124_165228090[1]First, let me start by wishing you and your non-profit organizations a very Happy Thanksgiving! My plane landed at a crazy, busy O’Hare airport yesterday and now I have the luxury of three straight days at home with family and friends (and let’s not forget the turkey and trimmings . . . Mmmmmm!) Since it is Thanksgiving Day, I was going to simply re-post an old blog such as:

But after giving it a little thought over my first cup of coffee this morning, I decided to share a quick story about what happened to me on Tuesday.
I was on the road visiting clients and decided my spirits might be lifted if I did a little volunteer work. So, I rolled up my sleeves and helped serve a few hundred plates of turkey, stuffing, mashed potatoes & gravy, and corn to children participating in an after-school program. It did my soul good and reminded me that I work with non-profit organizations for a reason.
My fellow food server was a board volunteer whose name was Bob. As we scooped the stuffing and potatoes and plated the turkey, Bob regaled me with countless stories about his volunteerism.  The following is a quick synopsis of a few noteworthy stories:

  • Bob has served on the board for . . . ummmm . . . let’s just say he has served for many decades
  • He has raised countless dollars for the organization (via special events, talking with elected officials, and simply soliciting friends in his circle of influence)
  • He has served the organization in many volunteer capacities both internally and externally (via national organization committees)
  • He helped get this organization’s first Thanksgiving dinner for its kids/members off the ground
  • He encouraged his son to volunteer for an organization with the same mission in a different state
  • He shared pearls of wisdom with me such as “Boards either have vision or they don’t” and “It doesn’t matter what type of fundraising campaign or event you choose to run because your success will be determined by who you have sitting around the table.”

Bob has cultivated a legacy of volunteerism that all of us should celebrate!
As I think back to my time on the front line as a middle manager and ultimately an executive director, I sometimes fell into the trap of lamenting things that volunteers didn’t do such as:

  • miss a committee or board meeting
  • drag their feet on soliciting prospects/donors and turning in their completed pledge cards
  • fail to do something they committed to doing

IMG_20151124_165234801[1]Bob’s gift to me this Thanksgiving (and he didn’t even know he was giving me this gift) is a reminder about how special and important volunteers are to all of our organizations in spite of our human imperfections.
Seriously, without board members or fundraising volunteers, where would we be? How could we afford to operate our business models?
As the Thanksgiving meal started winding down, the organization’s staff invited a few kids to step up to the microphone and share with a packed gymnasium full of people an answer to the following question: “What are you thankful for this Thanksgiving season?”
One child stepped up the microphone and said he was thankful for his “Xbox“. That response got lots of little kid giggles. A second child, who must have been 7-years-old, confidently stepped to the microphone and boldly said “I am thankful for my mom, my dad and my brother.” That response got a big ‘ol “Awwwww” from the crowd.
If the microphone would’ve been passed in my direction, I think I would’ve said, “I am thankful for people like Bob, who understand non-profits and get what volunteerism is all about.”
Happy Thanksgiving, everyone! Enjoy the food, but more importantly enjoy the fellowship. And thank you to all of the board members and volunteers for all that you do for our clients and organizations.
If this blog post has you thinking that you should invest a little more time, energy and effort in “volunteer appreciation,” then I suggest you click over to what Wild Apricot blog’s “Volunteer Appreciation Guide” and check it out. I promise that you’ll find lots of good stuff to compliment your turkey, potatoes and stuffing.   🙂
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

Words of wisdom from GE television commercial and our friends at Disney

Board governance, Fundraising, Planning

ideas_general electricAs most of you know, I’ve been traveling A LOT lately and I haven’t had the opportunity to watch a lot of television. However, it seems like every time I have the TV turned on, I’m seeing a television commercial from General Electric (GE) that talks about “ideas”.
Have you ever experienced a commercial that grabs you in such a way that you can’t get it out of your head? If so, then you know what I’ve been experiencing for the last month. There is something about this commercial that just speaks truth to me.
If you receive this blog via an email subscription, then click this link to view the “Ideas Are Scary” commercial. If you are viewing this in your browser, then you can click the video image below:
https://www.youtube.com/watch?v=sfmQvc6tB1o
I think this television commercial speaks to me because I routinely see this play out live and in-person as a non-profit consultant. The following are just a few examples:

  • Strategic planning discussions where ideas are shot down for any number of reasons ranging from lack of resources to lack of leadership
  • Annual campaign planning meetings where volunteers express resistance to sitting down with donors in-person to talk about making a pledge to the campaign (typically rooted in fear)
  • Boardroom discussions where investing in organizational capacity building efforts is met with resistance because it means getting outside of an organizational comfort zone

And if this is a common theme in my life, then I know it something with which many non-profit CEOs and fundraising professionals constantly are confronted.
So, today’s post begs the question . . .

What should non-profit leaders do differently to make ideas less scary and improve their ability to lead change?

There has been a fair amount of writing over the last five years on the DonorDreams blog platform by me and number of guest bloggers on the subject of leading change, and the following are a few of my favorites:

However, I am left with two questions:

  1. How can non-profit leaders build an organizational culture that embraces new ideas, creativity and innovation?
  2. How can non-profit leaders build shared vision among all stakeholders (e.g. staff, board, donors, etc)?

I know the answer to both of these questions includes parts and pieces of the following:

  • writing and refining a powerful “case for support” document
  • getting the right people sitting around the table
  • engaging everyone in the process, hearing their concerns and incorporating their thoughts until everyone has an ownership stake in the idea

imagineeringHowever, there is much, much more to leading change than the simple six step model that some organizational development consulting/training companies teach, and I suspect it has something to do with your organization’s culture. This is where I think all of us can learn from The Walt Disney Company, home of “Imagineering”. (Note: this term is trademarked by Disney)
I always thought Imagineering was a just an idea the folks at Disney embraced and knit into their corporate culture. However, after a little wiki research, I’ve learned this is a full-blown organizational development concept rooted in:

  • org structure
  • processes-procedures-systems
  • people
  • direction setting

If you are a frustrated non-profit leader (either paid staff or volunteer) and want to figure out how to make ideas less scary and more likely to be embraced, my suggestion is to research what works for General Electric (aka the people who “Bring Good Things to Life” and espouse “Imagination at Work”) and The Walt Disney Company (aka home of the imagineer).
You might be surprised by the number of best practices you find and how many you are able to implement at your non-profit organization.
In the meantime, please use the comment box below to share your thoughts and experiences on how you’ve tried to change organizational culture or build shared/common vision. 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

Get more from your prospect research and screening efforts: Part Two

Fundraising, technology

Good morning, DonorDreams readers! Tis the season, and like you I am slammed. I apologize for missing Tuesday’s post, but the day just slipped away from me. I’m very sorry. However, today’s post is the second part of the prospect/donor research and screening article from DonorSearch’s Sarah Tedesco. And it is VERY GOOD!!! Last week she wrote about screening and how it can help improve your special events. Today, she focuses in on how it can help you identify hidden planned giving prospects in your database. I hope you enjoy this morning’s post.  Here’s to your health!  ~Erik

5 Factors That Can Help You Identify a Planned Giving Prospect

When nonprofits talk about identifying a prospect’s giving capability, there is usually some variation on three points.
Capability can be evaluated based on a person’s philanthropic inclination, level of wealth, and connection to your organization.
That donor identification formula is used regularly for prospect research, and it works. Most often, organizations turn to this research when seeking out major giving candidates. But, there’s another type of donor that also deserves that level of investigation: planned giving donors.
If a nonprofit knows what to look for, it should have no problem locating planned giving prospects.

The following five factors are all identifying traits of planned giving donors.

These indicators are rooted in the above points (philanthropic interests, wealth, and tie to your organization), but have been tweaked to specifically help identify planned giving donors.

Factor One — Loyalty

loyaltyIn terms of traditional types of giving, past donations are strong indicators of future giving. That trend logically carries over to planned giving.
Leaving a planned gift is a way of securing a legacy, and those who donate such gifts are likely to want to have a legacy with an organization that they’ve had a strong connection to.
The correlation is clearly evidenced by the fact that during their lifetimes, 78% of planned giving donors contributed over 15 gifts to the organizations they allocated funds to in their wills.

Factor Two — Recipient of Your Nonprofit’s Service

clientsThis factor is in reference to those whom your organization positively affected. The range is fairly broad here. A planned gift might be left to a university by a dedicated alumnus. Similarly, a hospital might receive a planned gift from a grateful patient.
Cross reference your list of those who have benefited from your service and have also donated, and that can be the start to your search. Throw in some of the next few traits and you’re on your way to finding the perfect planned giving prospects for your organization.

Factor Three — Traditional Wealth Markers

wealthLet me start by stating in no uncertain terms that planned giving prospects do not have to be wealthy.
I repeat — planned giving prospects do not have to be wealthy.
We’ll get to that point in a moment for factor four, but for the time being, we should acknowledge that many planned giving donors are wealthy.
How do you check for these signs of wealth? Perform a wealth screening. You’ll be looking for real estate ownership, extensive political giving, stock ownership, and other similar indicators.

Factor Four — Has the Desire to Leave a Bigger Gift Than is Presently Possible

large giftFactor four encompasses the large gift loophole for planned giving donors. Although they are often comparable in size, unlike major gifts, planned gifts do not inherently require wealth.
Just because someone does not have the current expendable income that allows for large charitable gifts does not mean that the person is disinterested in giving those gifts.
Those who want a workaround for that obstacle can allocate a planned gift in their wills (also known as a bequest). That way, the funds go to the nonprofit when the donor no longer needs them.
If you want to build the kind of relationships that result in planned gifts in situations like these, your organization absolutely must have excellent stewardship. Nonprofits with successful planned giving programs follow top-notch donor retention practices.

Factor Five — Has Been an Ongoing Supporter of Your Organization

loyalty2You’ve probably noticed a theme among three of the traits listed above:
Candidates for planned giving are dedicated supporters.
Planned gifts are not left on a whim. The word planned is in the term! They come from people who have developed a bond to your cause, so you need to keep them in mind when considering prospects. Think beyond those who have made monetary gifts.
Look to:

Support of your nonprofit comes in many forms. Don’t forget that when you’re finding planned giving donors.
* * * *
Remember, when searching for planned giving prospects, it is not one, but all of these factors combined that will help you identify the best candidates. A planned giving prospect has more than one defining trait. They’re multi-dimensional donors, influenced to give because of a confluence of circumstances.
8% of individual giving comes from bequests. Ensure that your organization is receiving a part of that 8%. Now that you know the prospects you’re looking for, start seeking planned gifts.

sarahSarah Tedesco is the Executive Vice President of DonorSearch, a prospect research and wealth screening company that focuses on proven philanthropy. Sarah is responsible for managing the production and customer support department concerning client contract fulfillment, increasing retention rate and customer satisfaction. She collaborates with other team members on a variety of issues including sales, marketing and product development ideas.

Get more from your prospect research and screening efforts: Part One

Fundraising, technology

Good morning, DonorDreams readers! As many of you know, my work schedule has become challenging in recent months, and I’ve asked a number of “virtual online friends” to help me out with guest blog posts. Today’s post is from Sarah Tedesco, who is the Executive Vice President at DonorSearch. She talks about the role that donor and prospect screening can play in helping your special events raise more money. I hope you enjoy this morning’s post.  Here’s to your health!  ~Erik

 

3 Ways Prospect Research Can Help You Raise More Money from Events

Most nonprofits host at least one event annually. Even smaller nonprofits will typically make the push for one.
Cost per dollar raised (CPDR) is often the biggest factor in deciding on an event type. Smaller nonprofits with tighter budgets cannot afford to make the upfront investment for something like, say, a concert. Instead, they can opt for an event like a walk-a-thon. Each event has its merits. It comes down to individual circumstances.
Given the heavy emphasis on CPDR, nonprofits absolutely have to maximize fundraising in every aspect of the event. Prospect research is a valuable asset for such maximization.

See what a screening can do for your next event in the three benefits listed below.  

1. Teach You Valuable Information About Your Guest List

guest listSo you have your RSVP list. You know who is coming. What do you do with that information?
Hopefully, you use it! And by use it, I mean doing more than making sure you have everyone’s t-shirt size or dinner order. Both pieces of information are important for the flow and preparation of your event, but they’re not incredibly relevant to the task at hand — fundraising.
Twiddling your thumbs with a guest list in front of you is a missed opportunity. Research the attendees and learn about them before you see them.
Prospect screening can reveal so much about donors, like their:

  • Giving histories
  • Financial situations
  • Philanthropic interests
  • Business affiliations

Developing prospect profiles on all of your guests prior to the event will supercharge your staff’s ability to mix and mingle when the big night rolls around.
You might know some of the high-quality donors in attendance, but prospect research will help you round out the list. Once you know who is coming, create your VIP, very important prospect, list.
Your staff can study those individuals and make sure that they dedicate some time to stop by and check in with each VIP.

2. Point Out the Donors That Warrant Extra Post-Event Attention

follow upMuch like you can create a pre-event V.I.P. list, you can do the same after the event.
The post-event research can accomplish two tasks:

  1. Making up for the pre-event process if you didn’t perform an advance attendee screening.
  2. Finding the VIPs who weren’t on your initial list.

Your organization’s handling of event acknowledgments and follow-ups is crucial. You know this, so any information you can gather to improve the process should be welcomed with open arms. Well, open your arms to prospect research.
A high-attendance event, like a 5K, is going to have far too many participants for your staff to reach out to one-on-one afterwards. But, certain donors warrant that type of follow-up.
Consider an example scenario with a donor named Ron who attended your fundraising dinner and auction as a plus one. At the event, he ended up bidding on and winning one of your middle-of-the-pack auction items. You learned his name and various personal details through his auction win, and screened him after the fact.
Your post-event screening revealed that he’s a perfect candidate for planned giving. You now have a direction to go in after sending your acknowledgements.
Knowing what to send immediately after a contribution is easy…it’s a thank you. The next stages of building a communication stream require much more nuance and perspective. That’s when prospect research is so necessary.

3. Help You Adjust Your Event Strategies

strategic planning implementationAlbert Einstein defined insanity as doing the same thing over and over again and expecting different results.
Insanity is a strong word, but you have to switch things up if your fundraising events aren’t bringing in enough money. That can mean adjusting the event itself or hosting an all new event. Choosing the latter option will take some effort, but there is no shortage of fundraising event ideas out there to get your mind going.
Rather than just guessing the solution to your issue, let prospect research lead you in the right direction. Have the data inform your plans.
Screen those you invited, those who RSVP’d, and those who attended. There’s going to be some overlap among those categories, but it won’t be all overlap.
Look for trends in your fundraising performance and commonalities among the various prospects you screen. To isolate the trends, you’ll need to analyze multiple years’ worth of participation.
For instance, your research could show that despite the fact that one of your events is largely populated by millennials, they’re collectively donating less than any other age group in attendance.
That could direct you to assess how you’re collecting donations. Maybe the event needs an online giving component. Maybe you need to optimize the process for mobile donating.
In another scenario, you may notice that an event you’ve hosted for five years draws a disproportionate percentage of small and mid-level gift donors as compared to major gift donors. If that event isn’t yielding enough funds, find ways to attract those missing major gift donors.
Whatever the solution you’re searching for, it starts with the data.
Attending industry conferences can also be another great source of insight into fundraising event best practices. For more information, here is a great list put together by IMPACTism of the upcoming conferences in 2016.
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As you can see, there’s a place for prospect research in any and all phases of an event. Incorporate the screenings into your other betterment techniques and see even greater results.

sarahSarah Tedesco is the Executive Vice President of DonorSearch, a prospect research and wealth screening company that focuses on proven philanthropy. Sarah is responsible for managing the production and customer support department concerning client contract fulfillment, increasing retention rate and customer satisfaction. She collaborates with other team members on a variety of issues including sales, marketing and product development ideas.