Tag: donor centered

August 9, 2011 DonorDreams Fundraising

From the mouths of donors: Part 2

Again … the survey was anonymous because I wanted the truth, the whole truth and nothing up the truth. Here is what the today’s highlighted survey respondent said:

Question: Using the comment box below, please write a paragraph or two answering some of the following questions. Of the charities to whom you currently donate money, which one is your favorite? How did you first learn about this charity? Why did you make that first contribution? Why are you still contributing? How do you know that your contribution is making a difference? What does the charity do to demonstrate it is having an impact?

Answer: My favorite Charity is Boys & Girls Club of Elgin. I am still contributing to BGCE because they keep the kids off of my lawn.

Question: Understanding that these are tough economic times and no donor’s contribution ever should be taken for granted, what does your favorite charity need to do (or show you) in order to renew your support and/or increase the size of your contribution?

Answer: I know it is a buzz word, but “sustainability” [is something I want to see in order for my gift to be renewed]. I mean that in a holistic sense. Can they find the next great CEO, can they keep up the good fundraising work, and can they take their fundraising to the next level?

Hmmm … how interesting that this donor is looking at their charitable contribution as an investment? Here is what struck me about these responses:

I am reminded that every donor has a unique reason for giving, and it doesn’t always match-up with your marketing and stewardship messages. Here is where listening to your donors might allow you to become a more donor-centered organization. I bet this donor would love to see some outcomes data on how after-school programming reduces juvenile delinquency and improves school behavior and performance.
In this donor’s second response, I am reminded that one reason organizations that are seen as being “poorly run” (and I am looking at both board and staff) don’t do as well with fundraising because donors don’t like to throw their money away.

How does your organization demonstrate sustainability to donors? What tools do you use to measure and then report your organization’s health? Do you track how successful these tools are? If so, how did you do that? Please use the comment box below to share because we can learn from each other.

Here is to your health!

Erik Anderson

Owner, The Healthy Non-Profit LLC

August 8, 2011 DonorDreams Fundraising

From the mouths of donors: Part 1

Again … the survey was anonymous because I wanted the truth, the whole truth and nothing up the truth. Here is what the today’s highlighted survey respondent said:

Question: Using the comment box below, please write a paragraph or two answering some of the following questions. Of the charities to whom you currently donate money, which one is your favorite? How did you first learn about this charity? Why did you make that first contribution? Why are you still contributing? How do you know that your contribution is making a difference? What does the charity do to demonstrate it is having an impact?

Answer: I really don’t have a favorite. I learned about most of mine by working at them either by a job or volunteering at them. I made my first contribution by being asked. Yes, I still contribute to most of the places I’ve worked at or volunteered.

Question: Understanding that these are tough economic times and no donor’s contribution ever should be taken for granted, what does your favorite charity need to do (or show you) in order to renew your support and/or increase the size of your contribution?

Answer: I think most of the charities I give to do a good job thanking me for my donation. The size really wouldn’t change too much since I’m not too rich.

Hmmm … what a humble donor, but aren’t most of them? Here is what struck me about this person’s responses:

They reaffirm something that I once learned from a co-worker, which is that volunteers make great donor prospects. If you want to grow your annual campaign or special event, look no further than the volunteers working throughout your organization. If they think highly enough of you to volunteer their time, then they most likely think highly enough of you to make a contribution. What is the harm in asking? In the end, it is their decision. Click here to read what “The Chronicle of Philanthropy” has to say about “Turning Your Volunteers into Donors”.
In this donor’s second response, they seem to be satisfied when their charities of choice do a good job of thanking them for their contribution. Now, you’re probably thinking this practice is common place, but Penelope Burk found in her donor research that only 39% of respondents ALWAYS receive a thank you letter. This means that 61% only received a recognition letter MOST OF THE TIME or SOMETIMES (Source: Donor Centered Fundraising, pg 38)

If you don’t have an organized, well-run volunteer management program, it sounds like you might be missing out on something.

How does your organization reach out to volunteers? What lessons and best practices can you share? Have some of your volunteers become donors? What has been your experiences? Please use the comment box below to share because we can learn from each other.

Here is to your health!

Erik Anderson

Owner, The Healthy Non-Profit LLC

August 5, 2011 DonorDreams Donor-centered fundraising, Fundraising

Friends With Benefits?

Have you ever read a blog post that bothered you so much that you saved it in your email inbox? It happens periodically for me, and this phenomenon occurred two weeks ago with a blog post from Jeff Brooks who writes Fundraising Future Now.

So, there I was drinking my morning coffee and clicking through emails on July 27th, when I came across Jeff’s blog titled “Not all donors are seeking a deeper connection“. Since I consider myself a “disciple” of Penelope Burk (thought leader behind donor-centered fundraising ^TMand author of Donor Centered Fundraising), my first response to the blog’s headline was “WTF?” Then I clicked open the email and read this:

“We should be prepared to admit that not all donors are as absorbed in our causes as we are. Some of them — maybe most of them — just want to give and be done with it.”

Looking back on the moment, I have to laugh at myself because I was genuinely disturbed and almost had the same reaction as the person in this YouTube video. However, I composed myself and hit the button titled “Mark as Unread” and stewed about it for this long.

I’ve come to this conclusion: Sometimes the human experience allows us to get swept up into an idea so much that it becomes a truism to us (much like Penelope Burk’s idea of donor-centered fundraising ^TMhas become for many fundraising professions).

Even though I’ve come to this conclusion, I still love Penelope Burk and all of the donor research she conducts and shares. I think I’ll even remain in her camp for a little while longer. However, I think I’m going to rent the DVD of Justin Timberlake’s movie “Friends with Benefits” and do some research over the course of the next year. I am open-minded to Jeff Brooks’ hypothesis about some (possibly many) donors only loving your non-profit mission enough to toss you a contribution from time-to-time.

Until I sort through this philosophical fundraising mess, I guess I am going back to the only truism that hasn’t steered me wrong, which is:

“KNOW THY DONOR”

Are you a Penelope Burk disciple? What is your reaction to Jeff Brooks’ blog post? If you run a non-profit organization or interact with donors on a daily basis, what are your thoughts? How do you walk the fine line between donors who want to get married and those who only want to be friends with benefits?

Here is to your health!

Erik Anderson

Owner, The Healthy Non-Profit LLC

August 1, 2011 DonorDreams Uncategorized

Email is tricky. Period!

Sorry about the earlier accidental blog post. What can I say about my fat fingers and mis-clicks? LOL

Last week, I dedicated the entire week’s worth of blog posts to exploring ePhilanthropy related topics. Needless to say, I still have a few thoughts I couldn’t squeeze into last week. Today, I turn my attention to email and tomorrow I will try to wrap everything up into a nice package before moving onto new topics.

So, how do you use email and what are some challenges you’re experiencing?

For those of you who know me, you know that I tend to misuse email and sometimes send something that looks more like a novel or manafesto. The reality is that many organizations make the same mistake with their e-newsletters. I’ve seen too many e-newsletters that simply look like an electronic version of their snail-mail cousin.

What I recently learned as part of an ePhilanthropy pilot project was that your e-newsletter will be most effective if the following occurs:

Use more white space and pictures than you do words.
Design your e-newsletter so that the reader doesn’t need to use the scroll bars (at least not much).
Keep the e-newletter to two or three major stories. Make sure your donor-focused e-newsletters has stories that demonstrate your program effectiveness and community impact. Try to have a story that serves as a “call-to-action” for volunteers and donors.
Keep each story to two or three short sentences with hyperlinks that jumps them to a page on your website to read about the details.
Use an email service provider to avoid getting blacklisted by your donors’ Internet Service Providers (ISP) as a spammer. Check-out Emma or Constant Contact.

Non-profits are using email for EVERYTHING such as: prospect cultivation, donor solicitation, donor stewardship, board communications, marketing, and much more. The challenge is that the email channel’s effectiveness is degrading quicker than the snail-mail channel did. Don’t believe me? Think about the last time you opened your email inbox … was there a lot of “click, click, click … delete, delete, delete” going on? Or did you have problems downloading an html email? And what about the newest trend where we’re all reading our email on our smart phones? UGH!

And another problem non-profit organizations seem to wrestle with is the process of collecting email addresses. Penelope Burk reported in her book “Donor-Centered Fundraising” that “47-percent of non-profit do not communicate with their donors via email.” She shared that the biggest reason was not having donors’ email addresses. Click here for some great suggestions on getting better at collecting email addresses.

We all need to get better at using best practices if our organizations are going to succeed in this new ePhilanthropy environment. The trick is staying up-to-date on the ever changing best practices environment . As I said on Friday, I suggest frequently visiting Network for Good’s online learning center website. Click here to see all sorts of resources pertaining to email.

OMG … I can write an entire week about email, but I will stop here. Please jump into the discussion and share some of the best practices you find most valuable. How do you know when your organization is over-using email and what have you done about it? Are you integrating email into your marketing and fundraising efforts? If so, how? Are you using email analytics to track your open-rate and click-through rates? What are you finding? We can learn from each other!

Here is to your health!

Erik Anderson

Owner, The Healthy Non-Profit LLC

July 25, 2011 DonorDreams Donor-centered fundraising

Deja vu and ePhilanthropy

An old friend of mine, Autumn Porter, sent me a Facebook message last week asking for help reconciling two very different ideas — face-to-face solicitations versus online videos & electronic pledge forms. As I stewed on how to respond to her, it dawned on me that resource development professionals, who have come before me, must have had a similar “moment”. I suspect that this deja vu moment probably occurred at the advent of the direct mail era.

First let me frame Autumn’s dilemma. On one hand, she was told that she needs to get out there, roll up her sleeves, infiltrate professional networks, schedule in-person workplace solicitation meetings, and ask … ask … ask. On the other hand, she has been told by a local employer that they are an “electronic workplace” and really think it would be better to ask their employees to view an online video over the company’s internal network and be given the opportunity to complete an electronic pledge form. Here is Autumn’s question:

“How do I begin to merge these two tangents into some sort of donor-centric approach? Are there examples of using social media to tie us directly to their heartstrings? Can we create a lasting connection of the human experience without being in the same square-footage? If people give to people, how do we continue to reach the people with the capacity to give?”

As I said earlier, “deja vu” all over again! With that being said, I suspect that those fundraising professionals who addressed similar questions during the rise of direct mail would probably stand here today with the same advice … “Know Thy Donor” and solicit them in the manner that they would like to be solicited. I also firmly believe that resource development professionals know that face-to-face solicitation is the most effective, efficient and respectful way to solicit. As such, good RD professionals know that there is a threshold when direct mail, email, social media and telephone calls are not respectful and in those circumstances they reach into their solicitation toolkit and use the most appropriate tool.

So, my best advice to Autumn can be summed up by this YouTube video highlighting a psychic, cosmic conversation between Luke Skywalker and Obi Wan Kenobi.

All kidding aside, I plan on using the remainder of this week’s blog posts to talk about ePhilanthropy and social media. In the meantime, I am interested in how you would answer Autumn’s questions. Please use the comment box below to weigh-in with your best world-class advice.

Here is to your health!

Erik Anderson

Owner, The Healthy Non-Profit LLC

July 13, 2011 DonorDreams Donor-centered fundraising

The big stewardship mistake

Oftentimes, I’ve been told by non-profit organizations that they have limited resources and cannot implement a donor-centered communication program to steward their donors. After trying hard not to roll my eyes, I find myself forcing a smile and encouraging them to segment their range of gifts (ROG) chart and get as personal as possible (e.g. handwritten notes, periodic phone calls, and a face-to-face visit or two) with their largest donors. This seems to work and it moves them in the right direction, however …

It was not the BEST advice I could have given them!

Penelope Burk says it best on page 111 of her book “Donor Centered Fundraising“:

“Which donors need the most diligent investment from you? The answer is the ones whose loyalty is not yet secure, the ones whose current affiliation with your not-for-profit may still be tenuous. And who are they? They are your first time donors, those new contributors who demonstrate the highest rate of attrition between the first gift and the next ask.”

So, if I could go back in time or hit the “do over” button, I would tell those non-profit and resource development professionals to get really personal with the top 10% or so of their ROG chart. The after taking a cleansing breath, I would double down and tell them to put together a special stewardship program for first time donors. And by special, I mean more than just the typical gift acknowledgement letter and flurry of newsletters. Here are just a few crazy ideas I’ve had:

Create a special Donor Recognition Society for first time donors with a bunch of special “courtesies”.
Host a special town hall meeting (b/c I just hate “open houses”) for first time donors to hear first hand, witness and participate in mission-oriented messages and activities. This should help them see exactly what they have invested in.
Develop a donor communications series aimed only at first time donors with testimonials from larger, very influential donors talking about their excitement about various ROI success stories and their sense of fulfillment as a donor.
Institute a policy that all first time donors get a phone call from a board volunteer somewhere between three and six months after a donor’s first contribution. This phone call should include ROI-based information as well as the offer to answer any questions the donor may have. It would also be a nice touch to ask the donor if there is any feedback they might have for the non-profit and if there is anything they might want to get involved in.
Host a quarterly focus group session with first time donors and report the results and findings back to all first time donors.

And the ideas can go on and on … what do you do to help retain first time donors? How successful have you been at retaining first time donors? Please feel free to add onto the list of ideas that I just started by using the comment section of this blog. We can all 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 12, 2011 DonorDreams Donor-centered fundraising

Beyond newsletters

My last two blog posts have been about transitioning your boring, ineffective newsletter into something more “donor-friendly” and effective. Today, I will attempt to put a cherry on top of this “donor-centered” sundae, but talking about those things that non-profit organizations need to do IN ADDITION TO just mailing a newsletter. Again … I want to give credit where credit is due. Penelope Burk is the author of “Donor-Centered Fundraising” and she does a much more eloquent job of discussing all of this in her book.

So, after Penelope goes in-depth on her ideas on how to transform your newsletter into a donor-centered communication tool, she gently reminds us that our work is just now beginning. Briefly, here are some of her other thoughts (pages 104-108):

Use email to communicate with those donors who give you permission to do so. Talk about the IMPACT a donor’s contribution is making.
Use your website to post important information for your donors and demonstrate to the world how to be transparent and accountable. (See page 106-07 for Penelope’s website content ideas)
Visit your donors in-person and invite them to visit you and the programming in which they are investing.

I cannot tell you how many times I’ve been told by resource development and non-profit professionals that they are hesitant to bother their donors because they are too busy. The next time you hear this from anyone, I encourage you to share this data quote from page 107 of Penelope’s book:

“72% of study donors have been invited on-site to one or more not-for-profits they support to see their work first hand. 77% of this group said that this is appealing and that the invitation is appreciated even when they are unable to go.”

It is true that we need to be respectful of our donors’ time, but we need to balance that with being respectful of their investment.

I will end today’s blog with a “tease” … tomorrow we will talk about which donors we should focus more of our energy on? In the meantime, please use the comment box below and weigh-in with your thoughts on the following questions:

What does your non-profit organization do in addition to a newsletter to inspire donor loyalty?
What did your last donor stewardship visit look like? Were there any surprising revelations or actions that came out of the visit?
When a donor has told you that they’re too busy to meet with you or visit your program, how have you handled it and made lemonade out of lemons?

We can learn from each other … please jump into the conversation.

Here is to your health!

Erik Anderson

Owner, The Healthy Non-Profit LLC

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

July 11, 2011 DonorDreams Donor-centered fundraising

Donor centered newsletters Part two

On Friday, I used my blog post to start addressing a question posed by Susan Rudd from the Boys & Girls Club of Bloomington in Indiana about donor-centered newsletters. Both Friday and today’s posts are based completely on the work of Penelope Burk’s book “Donor Centered Fundraising“. While I spent Friday sharing Penelope’s survey data in an effort to “make the case for change”, today I will share some thoughts (specifically from Penelope’s work) on what donor-centered newsletters look like.

On pages 99 through 103, Penelope Burk does a tremendous job of laying out her vision:

Turn the multi-page length newsletters into one-page bulletins complemented by a lengthier year-end annual report.
Sharply focus content on programmatic impact while taking great care not to turn it into a parade of yawn-inspired statistics (e.g. use success stories, client and/or donor testimonials, sporadic stats, etc. that has a “features news story feel to it”). Avoid fundraising news because donors see through it as blatant advertising. They want to know how their last contribution is making a difference not how they can make another contribution. The key here is always focus content on your organization’s “IMPACT AGENDA”.
The format of a one-page bulletin will mean there is very limited space after the masthead, a photo with cutline, list of board members, and contact info is included. So, content needs to be professional, crisp, compact and impactful.
The publication frequency can be driven by a well laid out schedule, but Penelope encourages us to be more organic and publish a one-page bulletin every time something newsworthy occurs. So, a bulletin could go out a number of months in a row and then go silent until something else of significance happens.

OK … so this might sound a little radical to some of you. It also might sound intimidating because this approach requires time, tender loving care, and professional writing skills (which many non-profits don’t have a lot of). It is for this reason, Penelope encourages those wishing to move in this direction to do the following (page 102):

“Newsletters, like all communication pieces produced by not-for-profit organizations, need to look sharp and professional but not expensive. In-house publishing software makes this entirely achievable today. The savings you can accrue through shorter production time, lower printing costs, cheaper postage, etc. can be turned back into programs and services or devoted to other communication enhancements. My choice would be to put that savings into contract writers.”

As a former writer and editor for a weekly newspaper and currently a non-profit / fundraising consultant and coach, I find it hard to argue with Penelope probably because it is in my best interest to agree with her. LOL.

With that disclosure, let me say this … I am happy to provide a free consultation to anyone investigating how to shift from boring ineffective newsletters to something more donor-centered. Who knows … you might even be able to engage my services, produce and mail your new donor-centered news bulletins for what is currently in your budget. Please contact me if you wish to talk.

So, what do you think? Does this new approach sound too radical? What are your barriers to change? Please use the comment box below and share your thoughts.

Here is to your health!

Erik Anderson

Owner, The Healthy Non-Profit LLC

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

July 8, 2011 DonorDreams Donor-centered fundraising

Donor centered newsletters Part One

A few days ago, Susan Rudd from the Boys & Girls Club of Bloomington in Indiana emailed me and asked: “Do you have any suggestions on how to make our newsletter more donor-centered?” I promised her that I’d think about it and blog about it this week. So, I immediately cracked open my copy of Penelope Burk’s book “Donor Centered Fundraising” and started researching. As you can imagine, there are lots and lots of data points (based on Penelope’s survey data), and I’ve decided to break my response into two separate blog posts.

Today’s blog post focuses on the case for changing your non-profit’s newsletter. Monday’s post will look at specific ideas on how to change this critically important donor communication tool. I again want to thank Penelope Burk for her groundbreaking research and reiterate that none of what I am about to share with you are my original thoughts or work. Please go out and purchase a copy of “Donor Centered Fundraising” … it will change your life!

The following is a quick summary of survey data on the current state of affairs regarding non-profit newsletters (please note that these results are based upon “survey respondents” and hopefully I don’t need to go into any detail with you about the limitations of survey research):

66% of donors reported that “they don’t have time to read newsletters thoroughly”.
58% of donors said they believe non-profit newsletters are “too long”.
The average newsletter dedicates 52% of space to programs/services and 24% of space to fundraising.
99% of non-profits participating in the study produced printed newsletters and 22% also produced an e-newsletter.
Only 19% of donors reported that they were “satisfied” with the current length of the newsletters they receive.
Only one-third of donors said newsletter content is “exciting and compelling” with approximately the same number of respondents reporting that there is “too much fundraising content”.
54% of donors feel that newsletters can be improved if “more targeted information on how donations are being used” was included.
53% of donors said they are “concerned about the cost of newsletters”.

There can be no doubt after reviewing this research that there is but one conclusion — something must change if non-profits want to make the transition to a new donor-centered paradigm of resource development.

So, this is where I will leave the “cliff hanger” and ask that you take time this weekend to ponder the case for change. While digesting the facts, please ask yourself the following questions … How do my donors feel about our newsletter? Have I asked donors how they’d improve it? What have I heard? If I haven’t asked, what is stopping me from doing so? How much of our content is focused on programmatic ROI versus fundraising? How “stale” is the newsletter content by the time donors receive it in their mailbox? If you get a chance, please share some of your observations in the comment box of this blog.

Stay tuned for part two of this series when I share some possible solutions with you on Monday.

Here is to your health!

Erik Anderson

Owner, The Healthy Non-Profit LLC

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