donor – Page 11 – The Healthy Non-Profit

Donors are friends and NOT food!

December 15, 2011 DonorDreams Fundraising

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Here’s to your health!

Erik Anderson
Founder & President, The Healthy Non-Profit LLC
www.thehealthynonprofit.com
erik@thehealthynonprofit.com
http://twitter.com/#!/eanderson847
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http://www.linkedin.com/in/erikanderson847

Online giving: Evolve or else?!?

December 14, 2011 DonorDreams Fundraising

Welcome to Wednesday of individual giving week where we’re looking at different individual giving strategies as a way to replace dwindling pools of government funding. We’re using characters from the movie “Finding Nemo” to look at various individual giving strategies. Monday’s post was all about “Crush the Turtle” and the thrill seeking mentality of special event fundraising. Yesterday’s post focused on direct mail. Today, we’re looking at ePhilanthropy through the eyes of “Dory” (the regal tang fish whose voice you recognize as Ellen DeGeneres):

“Give it up old man, you can’t fight evolution, I was built for speed!”

There is currently a debate raging in fundraising circles between traditionalists and futurists.

Futurists argue that giving trends all point to donors giving via your website, email, social media, text messaging, and e-video campaigns.

Traditionalists sound more like Jeff Brooks who said in his recent blog post titled “The case against innovation“:

“When you get bored with letters and change everything so it’s cool and innovative, you force people to spend energy and time figuring out your new conventions. That’s energy and time they don’t have, or don’t care to spend on such a stupid task. No matter how cool you’ve made it, you’ve put a wall around whatever you’re trying to communicate. You might think it’s a very low, easy-to-climb wall — but it’s still a wall, and that means fewer people are going to get your message.”

I personally find middle ground between these two camps:

Online giving increased by more than 30-percent in 2010 compared to 2009.
It is estimated that approximately 7-percent of all charitable giving was secured online in 2010.
Average size gift statistics for online giving is starting to look remarkably similar to direct mail data.
The trend arrow over the last decade is unmistakable.

(Note: A special thanks to Blackbaud and their analytics division for keeping an eye on these trends. You can find a Blackbaud widget that links to similar kinds of information at the bottom of my website.)

The reality is that it can be somewhat expensive for many non-profits to get into individual giving strategies involving technology. However, the good news is that they don’t need to live on the “bleeding edge of technology”. Agency can and should start to take small steps towards the future. For example, even small organizations can add a “donate now” button to their webpage, set-up a Facebook and Twitter account, and start experimenting with both listening to donors and nudging them toward online giving opportunities.

The truth is probably somewhere in the middle. I recently read somewhere (I honestly can’t remember where or I would cite the source), that there is likely lots and lots of “cross pollution” between different individual giving strategies. Here are a few examples to illustrate this point:

A donor gets a letter in the mail and they are inclined to make a contribution. However, they see your agency’s website address embedded in the letter and go online to make that donation out of convenience.
A donor is solicited using a face-to-face solicitation strategy. They sign the pledge card. When the pledge reminder arrives, they go online to pay their pledge because it might be more convenient.
A donor receives an email (doesn’t matter if it is for solicitation or stewardship purposes). They then receive a visit by a fundraising volunteer who asks them to make a pledge. They sign the pledge card because it is convenient rather than dig through their cluttered email inbox for that donation link.

Everything is getting more and more interconnected. For this reason, I am all for investing a little time and money in ePhilanthropy because the decision isn’t about which tool to use with individuals. The decision involves which tools to use in concert with each other.

Don’t go crazy by focusing exclusively on lots and lots of new technology. Start small. And by all means, don’t use technology to replace your existing solicitation tools (e.g. mail, pledge cards, fundraising volunteers, etc).

Remember, the more tools you have in your toolbox to connect with individuals the more likely it will be that you are able to engage what is clearly the largest slice of the charitable giving pie chart — INDIVIDUAL DONORS.

What is your organization doing right now in the arena of ePhilanthropy? Website? Email? Text? Electronic video? Social media? Do you have a written ePhilanthropy plan in place that delineates which online tools you’re using and which tools are used for cultivation vs solicitation vs stewardship? Please take one minute to share using the comment box below a nugget about where you’re at because we can all learn from each other.

Here’s to your health!

I like you so much that I don’t want to see you!

December 13, 2011 DonorDreams Fundraising

Welcome to Tuesday of individual giving week where we’re looking at different individual giving strategies as a way to replace dwindling pools of government funding. We’re using characters from the movie “Finding Nemo” to look at various individual giving strategies. Monday’s post was all about “Crush the Turtle” and the thrill seeking mentality of special event fundraising. Today, we’re looking at direct mail through the eyes of “Marlin” (the clown fish who was Nemo’s father), who said to “Dory” (the regal tang fish whose voice you recognize as Ellen DeGeneres):

“No, of course I like you. It’s because I like you, I don’t want to be with you. It’s a complicated… emotion.”

When I read this quote it made me think of those direct mail donors who love your organization’s mission so much that they can’t stand the thought of sitting down with you. I’m really not trying to be snarky here . . . there are countless numbers of people who appreciate what you do, want to make a contribution, but don’t want to sit down and chat over a pledge card. It is this reality that has made direct mail and targeted mail so successful for so very long.

Mal Warwick is one of the masters of direct mail. I encourage you to read his article where he does a great job of distilling everything down into 10 of the most important things that you need to know about a successful direct mail program:

It is a “process”
It is all about the long-term
It is about cost-effectiveness and not so much the cost
The list is super important
Making “the offer”
One of the keys is list segmenting
It is focused on an annual giving approach
Test it or you will feel your patience tested
Repeating yourself isn’t a sign of old age, it is the sign of intelligence and discipline
Record-keeping makes all the difference

Ugh! He is a genius. Click here to read more about what he is really saying.

After you’re dazzled by Mal Warwick’s intellect, you need to read what Tom Ahern has to say a week ago about anyone who likes to “dabble” in direct mail:

“Untrained staff and board cannot accurately judge professionally crafted direct mail. It’s impossible. Mailed appeals are a counter-intuitive enterprise, based on neuroscience, decades of testing, empiricism, and acquired skill sets of surprising depth and complexity.”

While Tom isn’t likely making many friends with this statement, he is right in the sense that direct mail is a science. It is sometimes a bizarro universe where up is down and down is up. I suggest you click here and read what else Tom has to say about non-experts who roll up their sleeves and try to run a direct mail program without expert help.

Look . . . here is the bottom line:

Direct mail donors account for something in the neighborhood of one-fifth of charitable contributions,
Direct mail is not cheap,
Direct mail requires expertise,
Direct mail is a great way to “acquire” new donors,
Direct mail is constantly evolving,
Direct mail requires time, and
Direct mail needs someone with an eye for details.

Not having direct mail and targeted mail in your annual fundraising plan is like a handyman going to work without a screwdriver in his toolbox.

So, what is your agency doing with the U.S. Postal Service? How often are your soliciting? How are you using mail to cultivate new prospects or steward existing donors? What metrics are you measuring to gauge success in the short-, mid-, and long-term? How do you move direct mail donors up your staircase of engagement? Many of you are using mailhouse services, but is anyone using technical writing consultants? If so, how has that worked for you?

Please use the comment box below because we can all learn from each other.

Here’s to your health!

Whoa! Special events and individual giving

December 12, 2011 DonorDreams Fundraising, Planning

We ended the last week with a close-up look at what many non-profit organizations are doing to adjust to a restriction in government funding. Click here to read the post titled “Sir Isaac Newton was right about nonprofit organizations“. I ended Friday’s post with a promise that we would look at individual giving strategies from different angles this week. Today, we will look at special events as an individual giving strategy.

I thought it might be fun to look at individual giving through the eyes of those Disney characters from the movie “Finding Nemo”. Why this movie? Because this movie was all about a father who in his search for his lost son learned how to take risks and also discovered his son is capable of taking care of himself. In some ways, I think that individual giving for non-profit agencies kind of follows the same storyline.

Let’s take that scene in the movie where Marlin (the father clown fish) is talking to Crush (the turtle) about Marlin’s experience with jellyfish:

Crush: “Oh, I saw the whole thing, dude! First, you were like, whoa! And then we were like, WHOA! And then you were like, whoa.”

Marlin: “What are you talking about?”

Crush: “You, Mini-Man! Takin’ on the jellies. You got serious thrill issues, dude.”

LOL . . . I think special events are a little bit like this scene from “Finding Nemo”. They are fun. They are not for the faint-of-heart. Too many might actually be dangerous for your organization. However, they are something you probably need to do if you want to “find” donors.

As we talked about on Friday, there are many fundraising volunteers who are fearful about asking friends to make a direct charitable contribution. However, special events feel different from asking for direct contributions because there is a trade involved — you give me $50.00 and I giving you a ticket to a dinner. Quid pro quo.

Unfortunately, there are too many non-profit organizations who just kept adding more and more events to their resource development plan every time there was a shortfall in revenue. Now, they have an unbalanced resource development program, and much like a car with unbalanced tires this can be a recipe for danger.

I won’t go into a long diatribe about how special events aren’t a very efficient way to raise money from individuals. This is a well-worn path, and you can find countless blog posts from me on the subject. However, you may want to click here to read Charity Navigator’s study on special events and how they cost (direct + indirect costs) the average non-profit agency $1.33 to raise $1.00.

All that being said, every non-profit organization needs to have one or two well-run special events built into their annual resource development plan because:

They will bring in some money for your agency (if you factor out indirect costs like staff time),
They are a soft way for new prospective donors to learn more about your agency,
They are a fun way for your agency to engage new volunteers, and
They have a cultivation and stewardship effect for many prospects and donors especially if the event has a “mission-focus”.

However, please keep in mind that too much of a fun thing is never good for anyone. I recent had an opportunity to interview more than 40 donors. I asked the donor if they prefer to make a charitable contribution using an event vehicle or a direct solicitation from a friend armed with a pledge card. In EVERY interview, the donor came back and said without hesitation that they would prefer the friend and the pledge card.

Remember . . . events have their place. Keep them to a minimum, but do those few events very well. Keep the event mission-focused with an eye to introducing new prospects to your agency and demonstrating to existing donors that their contributions are making a difference. Most importantly, keep in mind that special events are only one of many solicitation strategies you will employ in your efforts to secure more individual giving to compensate for the receding tides of government funding.

How does your agency ensure its special event program doesn’t get out of hand? Do you evaluate every event? If so, what metrics do you use?

Here’s to your health!

Sir Isaac Newton was right about nonprofit organizations

December 9, 2011 DonorDreams Fundraising

We all learned as kids in school that Sir Isaac Newton stipulated in his Third Law of Motion that for every action there is an equal and opposite reaction. Thanks to Newton, I was not surprised earlier this week by anything I read in The State of Grantseeking Fall 2011 report conducted by GrantStation and PhilanTech. This excerpt kind of sums up the entire report:

“While nonprofits remain optimistic about their ability to raise funds and deliver services,” said Dahna Goldstein, Founder of PhilanTech, “many organizations – particularly smaller organizations – are applying for more grants but receiving smaller grants.”

Surely, none of you are surprised by this. Right? Anyone who thinks about it for a moment will see the following:

Government funds have dried up in “The New Norm” (aka this new economic paradigm that we’re living in).
Government debt levels mean that the “golden days of government funding” are probably over for a long time.
The difference between writing a government grant and a foundation grant is almost non-existent.
Non-profits are shifting their attention and efforts to foundation grant opportunities.
The pool of money available from foundations doesn’t magically expand because interest increases. So, you have more proposals chasing the same pool of funding and there are only two possible outcomes (unless the pool of funding expands):

you either get more rejected proposals, or
you get more funded proposals at smaller gift levels

While some people are asking questions like “how can we write better grant proposals and become more competitive,” I think these types of questions all miss the mark. I think the better question is:

“Why the heck aren’t non-profit organizations overhauling their resource development plans to better position themselves to secure more sustainable funding from individuals (e.g. people like you and me) rather than from institutions (e.g. corporations, foundations and government)?”

After all, when you look at the charitable giving statistics for the as long as they’ve been published, you clearly see that the vast sum of all charitable giving come from individuals. When I scratch my head and ponder this question, I can only come to a few disturbing conclusions:

Asking people for money is scary, and it is hard to get board members and volunteers to move beyond this paralyzing fear.
Many non-profit professionals (e.g. CEOs and fundraising staff) aren’t practicing the 9-keys of volunteer engagement and as a result there are many disengaged volunteers and board members sitting around our board room tables. So, mobilizing our “people resources” in the name of individual giving seems like a non-starter to many non-profit professionals.
It is always easier to travel the path of least resistance. This was what Robert Frost was saying in his famous poem “The Road Not Taken”. In other words, it is far easier to shift your efforts from writing proposals for government agencies to writing proposals for foundations.

Here is my word of caution to the entire non-profit sector . . . It is important to remember that foundations don’t give away magic money, and they don’t typically spend down their fund balance. Their year-to-year contributions are based upon their “investment income,” which usually means that when the stock market goes down so does the pool of available dollars from foundations.

I would draw a comparison to Isaac Newton’s first law of motion that most people have come to know as “what goes up must come down,” but I won’t because I just know there are argumentative investment professionals reading this blog who don’t think this law applies to the stock market. However, ask yourself this question: “Is it possible that the stock market in this ‘New Norm’ might experience adjustments and contractions if the economy doesn’t start dramatically improving soon?”

My point is simple . . . Read The State of Grantseeking Fall 2011 report . . . come to grips with the realities of “The New Norm” . . . engage your volunteers using the resource development planning process . . . and start asking tough questions around “What if?” and “How do we re-align our fundraising efforts, adjust to The New Norm and start asking individual donors for their support?”

There are many different individual giving models out there. Please tune in next week and we’ll talk about a few of those models.

Has your non-profit organization experienced some of the same things that the 900 respondents reflected in the grantseeker report? If so, what is it specifically? If not, what are you experiencing and what do you think accounts for your success against this industry trend?

Please use the comment box below to weigh-in.

Here’s to your health!

Lessons from an e-video that will make you cry

December 8, 2011 DonorDreams Fundraising

So, my good friend Marissa sent me this tweet a few days ago:

@eanderson847 Check out this video showing what can be done with just $1. Microphilanthropy at it’s finest. youtu.be/9DXL9vIUbWg

Please grab a tissue and click the link. The YouTube video is about 10-minutes long, but I promise you that it is well worth your investment in time.

As I watched the e-video, lots of different thoughts raced through my head including:

This video demonstrates the intense power of stewardship.
The producers remind us that while major gift donors are incredibly important to our non-profit agencies, we need to remember that charitable contributions that aren’t so major need to be treated as transformational. Why? Because they are!
The video’s point of view is that philanthropy, regardless of how small, is powerful. Not just for the person who receives it, but also for the person who gives it.
This video reminded me that there are differences between “fundraising” and “resource development” and “philanthropy”. In my mind, “fundraising” is the act of soliciting a donor for a charitable contribution. “Resource development” speaks to the overall process — prospect identification & evaluation, introduction, cultivation, solicitation, stewardship, and the continuous feedback loop moving forward. “Philanthropy” is the love of humanity and goes beyond just giving money and includes volunteerism, mentoring, emergency response, etc.
This video points to an often overlooked trend called “microphilanthropy” that all non-profit professionals need to be aware. We need to understand this trend first and then analyze what it means. Is this growing trend something that can affect non-profit resource development and donor trends? Sure it can! . . . How? . . . I’m not sure, but it warrants our attention and time. Click here to check out an interesting blog calling itself the “1DollarClub.org” to read more.
This video also smacked me across the face and was a reminder about another emerging trend — non-profits are using the internet, social media, and e-videos to steward donors in an increasingly digital world where more and more people just don’t have time for traditional stewardship activities and tactics. ePhilanthropy is here to stay and it is evolving every day!!!

Wow! Thank you, Marissa (by the way, she is the blogger at One World One Plate and I think everyone who loves food should go check out her work).

After viewing the e-video, did you have any thoughts that struck you like a lightning bolt? Is your non-profit organization using online videos as part of its resource development plans and efforts? If so, how? Please use the comment box below and share your revelation. We can all learn from each other.

Here’s to your health!

Welcome to a new philanthropic era: The Age of Women Power!

December 2, 2011 DonorDreams Board development, Fundraising, Planning, volunteers

I used to jokingly say to various board members at my former agency that if our non-profit needed to get something done (e.g. organize a special event, put together a strategic plan, etc), then we should recruit a bunch of women to help us do it. I’d usually finish making my point by saying, if you want to talk an issue to death and get nothing done, then put a bunch of men in the room. (Note to readers: Whenever I said this it was always said “tongue in cheek” and I was kidding. Of course, I was only kidding slightly because I think there is some truth to it.)

I share this story today because my good friend, Boys & Girls Club of Oshkosh Development Coordinator Anne Lemke, sent me a fabulous email a few days ago about “What Women Want” which is whitepaper written by Katherine Swank from Target Analytics, a Blackbaud Company. After reading the paper, I just could resist sharing a few of the highlights with you today:

nearly half of the top wealth-holders in the United States are women,
women have increased their combined wealth by more than fifty percent in the last 10-years, and
women have a net worth of over $6 trillion.

Katherine does a masterful job of profiling what an affluent woman looks like. I suggest you read the whitepaper and burn that picture into your head because it is surprising. In fact, you probably know a number of women who fit the profile. Having this profile picture burned into your non-profit brain is important because as Katherine says so perfectly:

“Affluent women may also be identified by their willingness to both donate and volunteer at higher levels than their male counterparts. Women, on average, donate twice as much to charity and make three times the number of donations as men.”

So, some of you might be reading this post and thinking to yourself: “OK, I just need to start asking women for money and I’ll be fine.” If this is what you’re hearing me say, then please stop yourself! The reality is that women are different from men, and you’ll need to change your resource development strategies and tactics if you are going to appeal to this very powerful donor segment. Again, Katherine puts it best when she said:

“While I can’t claim to know what all women want in every situation, over twenty-five years in philanthropy has taught me that what women want is simple: to be asked their opinion and for their answers to be listened to and acted upon. They seek equality in the workplace, an ever-equal sharing of the ‘load’ from their male partners and counterparts, and to make the world a better place, both close to home and halfway around the world. Elementally, women want their lives to make a difference in the lives of others. To accomplish this through philanthropy makes women feel empowered.”

Translated into language men might understand better: “You need to cultivate, solicit and steward women different from.” Oh heck, who am I kidding . . . let me translate this even more clearly for my non-profit male friends out there: “Go hire and recruit some women to help you with this incredible important and transformational shift that your non-profit agency needs to make.”

I suspect this trend will change more than just your agency’s approach to resource development. It will also likely affect your board development, marketing, and volunteer recruitment & management efforts. Right?

Oh yeah . . . go download Katherine’s whitepaper and read it. Click here to get your copy. It really is a great read!

So, what are your thoughts? Are you already seeing this philanthropic trend in your community? How are you responding to it? Have you addressed it in your strategic plan or resource development plan? If so, how?

Please take a quick moment and share your thoughts using the comment box below. After all, we can all learn from each other.

Here’s to your health!

Taking a page out of GE’s playbook

November 30, 2011 DonorDreams Uncategorized

Have you ever been watching television, trying to zone out during the commercials, when all of a sudden “WHAM!” a powerful advertisement grabs your attention and almost moves you to tears? Come on! I know it has happened to most of you, and I am no exception.

I was most recently the victim of such an occurance last night. I was in my hotel bed watching television and trying to avoid doing work. Out of nowhere came this General Electric (GE) commercial . . . the ad was about cancer survivors who were given the opportunity to meet the GE employees who built the medical machinery that helped save their lives.

If you haven’t seen it, grab a tissue and click here to view the YouTube video of it.

It wasn’t more than 5-seconds after this commercial ended that I had these two thoughts:

This GE commercial is the same thing as a non-profit organization’s “case for support” for their annual campaign pledge drive. The only difference was that it was in video format instead of a written case statement.
Putting cancer survivors in the same room as GE employees was so powerful. It was almost like GE was stewarding their employees by reminding them of how powerful their gift of labor really is to everyday people who are trying to work through personal crisis.

I think the thing that got me most was when the employee at the end of the commercial says: “[It was] one of the most heartwarming events I’ve ever experienced”.

Earlier this week my Monday blog post titled “What gets measured gets done” spoke to the power of benchmarking. Tuesday’s blog post titled “Taking a page out of NPR’s playbook” highlighted National Public Radio (NPR) as a potential benchmarking opportunity for agencies looking for a successful road map to reduce dependency on government funding.

Today’s post continues on this week’s theme of benchmarking; however, the twist is that non-profits can also learn from and benchmark their for-profit cousins. For example, this GE commercial has me wondering:

Does putting employees together with the people who benefit from their efforts improve employee retention? If so, how significant is the retention? Can the same effect be produced if non-profit donors are given more regular access to the people whose lives they changed (e.g. your customers/clients)?
Does creating this commercial and storyline help GE’s sales force more effectively articulate the case to purchase this particular product? If so, how significant is the improvement in sales? Can the same effect be produced in board members and volunteer solicitors who are reluctant to solicit charitable contributions to the annual campaign?

I’ve been hearing way too often from non-profit professionals that donors don’t have time for personal stewardship visits and touches. I’ve also recently had the opportunity to spend lots of time with a number of donors, and they don’t seem to be saying the same thing. What I am hearing donors say is they are sick and tired of one solicitation after another after another. They look forward to events where they can see, hear, and touch the charity’s mission.

I am going to hold onto the visual imagery of how those cancer survivors and GE employees looked when they met for the first time. Am I wrong or was it powerful? They were moved to tears, right? Heck, I was moved to tears. My “fundraiser’s gut feeling” is telling me that there are many valuable take-aways for non-profit organizations from that commercial. I suspect successful non-profits are tapping into that same raw power and emotion when it comes to donors and those folks you serve everyday.

Yes, we can learn a lot from each other as non-profit professionals, but I suspect we are limiting ourself. If we expand our world, we can learn a lot from everywhere we look everyday. Don’t just benchmark organizations that are just like you . . . expand your horizons and look at for-profits that you can benchmark, too.

While benchmarking multinational corporations might not be realistic for many of you, I bet there are a number of small businesses in most of our backyards that will work equally well.

What did you take away from the GE commercial as it relates to your non-profit work? How do you connect your donors to mission in similarly powerful ways that don’t involve more solicitation (e.g. special events don’t count when answering this question)? How does your organization track the effectiveness of those personal and powerful stewardship touches? Have you ever done any benchmarking? Who? And what was the result of your experience?

Please use the comment box below to weigh-in with an answer to any of these questions. Remember, we can all learn from each other.

Here’s to your health!

Taking a page out of NPR’s playbook

November 29, 2011 DonorDreams Fundraising, Planning

In my hometown of Elgin, Illinois, there have been a number of sleepless nights for non-profit organizations whose revenue model is heavily dependent on government funding. The economy and housing bubble caught up with the city, and now there are projected budget deficits. As you can imagine, non-profit funding is on the proposed chopping block. All of this is compounded by the fact that we live in Illinois, which by most accounts has one of the worst state budget problems in the country. So, state funding has also been on the retreat for years.

I’ve been saying for years to all of my non-profit friends who would listen: “the government funding gravy train is coming to a halt . . . get out and get out NOW.”

Usually this dramatic plea has been met with nods of agreement, then shoulder shrugs, and finally questions around “how to”.

Yesterday’s blog post about non-profit benchmarking titled “What Gets Measured Gets Done” got me thinking and wondering: has anyone ever done this before, and if so, do they have a roadmap that others can duplicate?

It didn’t take long for me to find an answer, and it was there in front of me all along. National Public Radio (NPR) was founded in 1970. It was heavily and almost exclusively government funding supported through much of the 1970s and 1980s. Today it receives less than 10-percent of its revenue from the federal government.

From what I can tell, it didn’t happen overnight but it seems to have occurred quickly after a funding crisis in 1983.

It shouldn’t surprise anyone that NPR turned to individuals as a cornerstone to their strategy. After all, more than three-quarters of all charitable giving in America comes from individuals.

So, there you go . . . it is a roadmap! It might not be an easy road, but it has been done before, and it is possible to transform your revenue model. Here are just a few quick suggestions for those of you who are interested in taking the next few steps:

Tune into NPR and start listening. While tuning in for the programming can be fun and delightful, I especially recommend listening during the pledge drive. Bring your notepad and pencil because there are lots of notes to take. NPR does one of the best jobs I’ve seen with their pledge drive. They employ best practices effortlessly. We can all learn a lot if we just listen and watch.
Consider making a pledge. I made my first pledge to NPR in 1998 during the Clinton impeachment trial. After making that small contribution, the stewardship stuff and communications I received from them was amazing and almost felt like drinking out of a fire hose. They do a nice job with stewardship. It was the best $25 I’ve ever spent in my life, and it was cheaper than most trainings.
Go check-out their cyber presence. Review their website. Follow them on Twitter. Like them on Facebook. Subscribe to a few of their blogs. Then sit back and watch them masterfully use social media and the internet to cross promote content and communicate with their clients who are also their donors.

Obviously, NPR’s plan can’t be exactly duplicated for a number of reasons. However, it is a good place to start. Please note that the aforementioned bullet points can all be done today and only focus on listening, observing and fact gathering. This is, after all, the essence of benchmarking. There will be lots of action and work on the road ahead, but for now it is important to do your homework and engage your volunteers with both the benchmarking and planning efforts.

How does your agency plan on adjusting its revenue model? What is your strategy? Are you benchmarking yet, and if so who are you studying?

Please use the comment box below to answer these questions and share your thoughts with the rest of us. It only takes a minute and you feel good inside when you do so. Why do it . . . because we can all learn from each other!

Here’s to your health!

Make that call and express your thanks

November 25, 2011 DonorDreams Donor-centered fundraising, Fundraising

Ahhhhhh . . . Thanksgiving is over and the food comma is starting to wear off, but the spirit of this holiday looms for much longer. It might even set the table for the one of the most charitable times of the year by putting donors in the mood to give, give, give! So, if you believe this, then you should also believe that giving thanks doesn’t just end when the last piece of turkey is packed up in Tupperware and placed in the refrigerator in hopes of becoming a turkey sandwich in the not-so-distant-future.

I am suggesting that it would be a very nice donor-centered stewardship gesture if you picked up the phone on Monday and called one of the most impactful donors to your non-profit agency.

Don’t just call and say thank you.

When you finally get them on the telephone, you might consider telling them that the Thanksgiving spirit motivated you to call. Spend the rest of the call discussing the following:

What does their financial support mean to your agency?
Provide a few examples of how their contribution made a difference for your agency’s clients.
Ask them if they have any questions about anything they may have seen or heard about the organization.
Ask them what they see as the organization’s greatest strengths and weaknesses.
Explain to them how their contribution makes you personally feel. Share any emotions you may experience as a result of their support and involvement.
Tell them that you appreciate them and the agency couldn’t do what it does without support from caring people like them.
Wish them a happy holiday season and tell them you look forward to working with them again in the new year.

You’re all really busy. This doesn’t have to be an “initiative” or a “thank-a-thon” . . . even though that would be awesome. All I am suggesting is that you do this on Monday with JUST ONE very important donor.

Taking a few minutes on Monday represents your personal investment in doing good stewardship. It will renew your non-profit soul and set the stage for a great end of the year push!

Trust me . . . just do it . . . and then circle back to the comment box below and let us all know how you felt afterward. I’ll sit tight and wait to hear back from you. 😉

Here’s to your health!