Tag: fundraising

Wealth screening versus Yoda and The Force

Fundraising, technology

yodaI came across a cool infographic from DonorSearch thanks to Bloomerang’s Monthly Nonprofit Wrap-up digest of blogs and fundraising resources. After digesting the data in the infographic, I couldn’t help but conjure up an image of Yoda talking to a fundraising professional and saying “Use your donor database you shall.” Hahaha! OK, maybe this thought was a result of Force Friday and all the marketing hype around the soon-to-be-released newest Star Wars movie. Regardless, please keep reading . . .
While there was lots of data embedded in the infographic (and you want to click-through to see that graphic), here are two no-brainers:

  • The donors most likely to donate in the future are those who have previously donated
  • Philanthropic giving to other nonprofit organizations is the second most predictive sign of future giving

Looking at these two predictive data points, Yoda would probably say:

  • “To find donor prospects for your year-end giving appeal and 2016 annual campaign use your donor database.  Herh herh herh.”
  • “For new prospects, look around at other organization’s annual reports, newsletters,  websites and donor honor rolls. “

Having worked with non-profit organizations who use wealth screening tools, I share the following observations:

  • these tools are powerful
  • they are expensive
  • they are great for major gift planning, endowment prospecting and capital campaign evaluation and qualification work
  • it is like using a bazooka to kill a fly if you’re using it for annual campaign purposes
  • too often fundraising professionals view wealth screening as a perfect science whereas it should be seen as complimenting the human intelligence gather exercises associated with prospect identification – evaluation – qualification work

What has been your organization’s experience with donor databases, wealth screening, prospect identification/evaluation (e.g. setting targeted ask amounts) exercises? Please share your thoughts and experiences in the comment box and try to do so in Yoda-speak. Let’s have some fun today.
To your health, here is!
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

How does your organization use ePhilanthropy strategies to secure matching gifts?

Fundraising

Good morning, DonorDreams readers! As I’ve shared in recent posts, my work schedule has become chaotic in recent months thanks to a few fun and challenging contracts that I signed. Since there is only so much time in a day, I sometimes inadvertently end up dropping the ball with writing a blog post. I promised you that I will do my best to keep this blog platform a priority and try to engage guest bloggers to fill some of the gaps created by my schedule. This morning I’m grateful to Adam Weinger, who is the president of Double the Donation, for agreeing to be one of those guest bloggers. I hope you enjoy this morning’s post about online matching gift strategies.  Here’s to your health!  ~Erik

6 Tips to Increase Your Online Matching Gift Strategy

Letting your donors know about matching gift programs doesn’t have to be a headache. Having a great team and crafting an effective online presence will help you get the word out about matching gifts and will result in more donations for your nonprofit.

Here are 6 tips that will enable you to give your online gift matching strategies a boost.

1. Appoint a Matching Gift Coordinator

Before beefing up your online matching gift strategy, it’s a good idea to designate one person or a small team of people who will be able to effectively market matching gifts online. While the entire staff should be aware of matching gift programs, making one person the established go-to source for matching gifts can help streamline the online donation and matching gift process.

2. Raise Awareness on Your Website

When people visit your nonprofit’s website, they’re usually looking for information about your organization and ways to donate to your cause.
Why not use that opportunity to let them know about corporate giving programs such as matching gift programs?
For example, you can spread the word about matching gifts on your website in a variety of ways:

  • Include matching gifts on your “ways to give” page. When potential or existing donors find their way to an online donation page, have a prominent link that points them in the direction of matching gift information.
  • Consider implementing an entire page dedicated to matching gift programs. Creating a comprehensive page that lets donors know more about matching gift programs is a great way to give them the most information in one central location.

3. Update Your Website

Nothing can irritate a donor more than going to a nonprofit’s website and getting nothing but broken links and unhelpful pages. The most recent Millennial Impact Report found that over 30% of millennial employees who make donations do so online. Contributions made online are becoming increasingly popular due to the ease and accessibility of donation pages. Don’t miss out on getting these donations plus the matching gifts that go along with them by having a subpar website.

4. Inform Donors about Matching Gifts Throughout the Donation Process

Keeping individuals in the know about matching gifts at every stage of the donation process will help maximize the number of donors that look into doubling their donation.

Provide an option when they donate

If your donors are using your website to donate, use the opportunity to let them know about matching gifts while they’re giving. Offering donors an option to learn more about matching gifts while their contribution is being made will increase the chances that they’ll look into matching gifts.
For tips on making online donations easier, check out this article.

Use your confirmation page

Donors want to make sure their online donation went through without a hitch. Since they’ll be directed to the confirmation page anyway, it’s worthwhile to let donors know about matching gift programs, just in case they missed it on the actual donation page.

Thank You Email

You should always say thank you after receiving a donation, but you can also use your thank you email to let donors about matching gifts. Not only will they feel appreciated for giving to your organization, but they’ll also know more about doubling their contribution.
One idea: Send a short creative video in an email to let donors know you appreciate their gift and show them what your donation is going toward.
Check out these great tips on sending out thank you notes.

5. Pair up Wealth Screenings and Matching Gifts

Using wealth screenings and prospect research to get the most out of your existing donations can be the perfect way to make them go farther.
It’s essential to know who your donors are, who has greatest capacity to give, and who they’re connected to. And spending time learning about your donors or prospective donors will help you maximize the number of donations you receive, and better enable your organization to get the word out about matching gifts.
Learn more about wealth screenings and look into how they pair well with matching gifts.

6. Use Social Media

matching-donations-cmta-facebookWith so many people posting updates, Tweeting the latest news, and hashtagging photos of their lunch, it’s a good idea to jump on the social media bandwagon and utilize different sites to promote matching gifts programs. Keeping the message short and sweet is the key, here. No one wants to read a novel when scrolling through their Facebook newsfeed.
The Charcot-Marie-Tooth Association has a perfect example of how to capture followers’ attention and let them know about matching gifts without overwhelming them with information. The picture highlights doubling donations by showing two scoops of ice cream and as well as using the “double scoop” pun to draw followers’ attention to matching gift information. The post also provides donors with a helpful link to find out whether or not their employer uses a gift matching program.
Learn more about using social media to promote matching gifts.
Using a combination of these different tools will help your nonprofit succeed in letting your donors know about matching gift programs, resulting in more donations for your organization.

Donors are not minions and cannot be owned or posessed

Fundraising, philanthropy

slavery amendmentSlavery ended on December 6, 1865 when the 13th Amendment to the Constitution of the United States was ratified. In a nutshell, this means that people cannot own people anymore. I have a hard time juxtaposing this fact with what I hear some non-profit professionals sometimes say, which is: “. . . that is my donor“.
I suspect many of you reading today’s post probably just had a strong reaction to what I said. You’re probably nodding your head and thinking “THOSE” people should know better. However, I suspect many more of us are guilty of trying to control our donors. The following are just a few examples of what I’ve recently seen and inspire this today’s blog post.
Collaborative fundraising
Collaborative fundraising is when two parties get together to raise money for a singular purpose. It could be jointly approaching one large donor (e.g. large multi-national corporation) as a statewide collaborative and asking them to support one program that everyone in the alliance runs. It could also be two separate entities approaching their separate donor lists to support a joint effort.
In my experience, this type of fundraising has become more common in recent years.
You may not be practicing donor-centered fundraising if you find yourself in one of these ventures and you catch yourself saying things like:

  • “My list“
  • “My donors“
  • “My money vs. your money“

Controlling opportunities
controlLet’s face it . . . non-profit organizations typically have many competing priorities and projects usually going on simultaneously (e.g. supporting the annual fund, building a new building, renovating an existing space, endowing a program, etc).
You may not be practicing donor-centered fundraising if you find yourself doing something like:

  • deciding for the donor which project you will won’t present to them as an opportunity because you need their money elsewhere
  • steering the donor away from certain projects
  • trying to change a donor’s mind when they come to you with an idea

I’m not suggesting that fundraising professionals shouldn’t use their best judgement. You know your donors, and you should know what they are passionate about. So, bringing opportunities that align with their interests and passions is very much donor centered. However, if you find yourself using “organizational needs” as a criteria to decide which funding opportunities are shared with a donor, then you might find yourself in the category of trying to “control donors“.
Donors as Minions movie characters
minionsI recently saw the Minions in the movie theater. It was in the middle of this relaxing diversion from my crazy work schedule that I came to believe some (perhaps many) non-profit organizations view their donors as these cute, little yellow characters.

  • Individually small
  • Collectively powerful and useful
  • Looking to serve and belong

Of course, if you follow the movie plot line, you quickly realize that Minions are not a mindless drone collective. They have ideas of their own and oftentimes find themselves sideways with the mission. Another common theme throughout this film and the Despicable Me movies is that the villain for whom the Minions work typically ends up failing at controlling this group of adorable yellow characters.
The bottom line for me is that donors are not minions. If you choose to treat them as such, you will likely end up with a big yellow mess on your hands.
What to do about this?
This post obviously leads one to ask the obvious question, which is “what should be done to avoid this behavior?”
I suggest you consider the following simple suggestions:

  1. Mind your language and try to stop using words like “mine” and “yours“
  2. Sit down with donors (especially major gift prospects) regularly and engage them in discussions about their philanthropic passions, wishes and dreams
  3. Develop a “menu of opportunities” for your major gifts initiative

Have you seen or experienced similar situations where donors were being controlled or manipulated? If so, what was the end result? How does your organization share funding opportunities with donors (e.g. menu of major gift opportunties)?
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

“Hangin’ with Henry and talking about how to secure donor meetings

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. We affectionately call this monthly series “Hangin’ With Henry”  because of the conversational format around which he has framed his online videos. This month we’re talking about Opening the Door for a Future Visit.
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.
https://www.youtube.com/watch?v=3bEmVPLaeuY
Personally, I can recall countless times where I’ve had difficulties securing an initial meeting with a prospect/donor. In hindsight, my struggles have always stemmed from:

  • not having much (or any) relationship with the person
  • not understanding the person’s philanthropic vision (and reason they support us)
  • simple fear of the unknown

My first strategy has always been reaching out to someone who knows us both and asking that person to set up the meeting. Of course, this isn’t always an option.
Our friends at 501 Videos recently published a similar video to Henry’s as part of their FREE Movie Mondays service.  The video was titled “Getting the Donor Meeting” and the interviewee provides additional helpful tips. It is definitely worth the click!
The tip that I received almost 10-years ago (it was from a video produced by Bob Osborne of the Osborne Group) that has been the most successful for me was:

“Have three reasons for needing to sit down with a prospect/donor.”

It is important to make these reasons “real and genuine” or you will come across as plastic and insincere. However, you likely have lots of reasons to sit down with someone is you just thought about it for a few minutes. Here are just a few suggestions:

  • You are looking for advice
  • You need help with a project
  • You need help opening a door
  • You want to share something (e.g. annual report, success story, etc)
  • You need feedback on a special event (e.g. critique, evaluation, etc)
  • You want to talk about their charitable giving and future support of the organization

You always want to include the last reason in the laundry list of bullet points in order to avoid turning the meeting into an ambush.
How have you gotten over the hurdle of securing difficult meetings with prospects/donors? Please share your tips and best practices in the comment box below.
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

So, your non-profit cannot make its payroll obligation?

Uncategorized

Let me start with an apology to DonorDreams readers for my recent absence. My workload has increased exponentially lately, and the last few mornings when I’ve sat down to write the floodgates opened unexpectedly. I will try harder, but if things don’t get better, then I will have to seek out more guest bloggers and re-publish popular posts from the past. Please accept my apologies and my promise to work this problem.  ~Erik

This morning’s post is top of mind because I’ve recently had the privilege of working with a non-profit organization that is encountering a cash flow situation. First, let me say that this is something many non-profit leaders have had to deal with. Second, I’ve recently come to realize that many people freeze when confronted with these situations and very little is written about how to survive such a crisis. So, I’m going to provide a few tips from my experiences of working with clients facing a cash flow and payroll crisis.
Ask board members to contribute
boarddev1The people closest to your mission are board and staff members. So, when the organization is short on cash and cannot meet its payroll obligations, it is only natural to ask board members to dig a little deeper.
While this will bring in some money and help bridge the gap (at least partially), the bigger reason you need to start with the board is that no other donor will jump into the gap if they don’t see the board doing their fair share. Additionally, you won’t likely be able to get board members to jump in and help you engage other donors if it doesn’t feel like they have skin in the game.
Ask key donors to contribute
donor solicitorDon’t pass the basket and ask smaller, low capacity donors. Identify your larger, more capable donors and schedule an in-person meeting to explain what has occurred and ask for their support.
Be careful!
Don’t make your “case for support” sound like your organization is the S.S. Titantic. You might get a contribution from someone by telling them you’ll go out of business without their support, but making the ask that way makes getting future gifts significantly more difficult.
Why?
Because no one likes to through good money after bad money. Remember . . . only the captain goes down with the ship.
So, when talking to those key donors, make sure to explain what happened and why you’re in this situation. Clearly explain to them what the plan is for getting out of the hole. Make sure to keep your message mission-focused because donors are emotionally attached to your clients and programs. They are not inspired by your overhead and business challenges.
Contact your accounts receivable list
acct receivableAccounts receivable can be any number of the following individuals/entities:

  • individual donors with pledges that are due at a later date
  • foundations or government agencies who have given you a grant and your reimbursement paperwork is still pending
  • individuals or companies you invoiced for a service you provided and are still waiting for payment

Call these people and explain your situation. Ask them if they could work with you on paying their pledge early, speeding up the reimbursement paperwork, or paying their outstanding invoice sooner-rather-than-later.
Always keep in mind that you catch more flies with honey than you do vinegar. Being polite is a necessity because your crisis isn’t their problem. More importantly, you are in the relationship building business, and your words today can impact your relationships tomorrow.
Pay your bills carefully
phone billIf your organization finds itself in this mess, then the bank is probably not extending you additional credit. While managing your cash flow on the backs of your vendors is a bad thing to do, sometimes life presents you with a bunch of bad options.
Make sure to prioritize what little cash you have in the bank towards making payroll. The phone company can wait a few weeks. However, be transparent and ethical about this strategy. Pick-up the phone and call the vendors who will be impacted by this decision. Explain your situation and ask them for patience and assistance. You might be surprised at their response.
Don’t rest once the crisis passes
assessmentThis crisis came to your door for a reason, and you owe it to your clients, donors, volunteers and community to make sure it doesn’t happen again. The following is an incomplete checklist of things you should consider:

  • Revisit the budget and make necessary changes
  • Create a cash flow project tool and keep it updated
  • Invest in evaluating board composition, structure and governance practices and fill those gaps ASAP
  • Evaluate executive leadership and make changes if necessary
  • Conduct a resource development audit and use it as a springboard to create a written resource development plan

Has your organization ever experienced a cash flow crisis that resulted in a payroll panic? I know this can feel embarrassing, but please share your thoughts and experiences in the comment box below. We can all learn from each other, and our clients and communities can benefit from that collective wisdom.
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
 

"Hangin' with Henry and talking about Keeping the Ask Simple

Fundraising, Hangin' with Henry

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. We affectionately call this monthly series “Hangin’ With Henry”  because of the conversational format around which he has framed his online videos. This month we’re talking about Keeping the Ask Simple (aka applying the K.I.S.S. principle to asking donors for a contribution).
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.
https://www.youtube.com/watch?v=qGPENKwRwjE
After listening to Henry for almost seven minutes this morning (and I wasn’t even done with my first cup of coffee), I was left thinking the following:

  • Face-to-face solicitation is the most effective form of solicitation (even though Henry was talking mostly about mail and email solicitations)
  • There is a serious risk of burying the donor in lots of collateral material and talking the donor’s ear off, especially if the person doing the asking is apprehensive about doing so
  • Fundraising professionals should probably only give volunteer solicitors nothing more than an internal case for support document (aka their talking points), an external case for support document (aka the campaign brochure) and the pledge form

This video also reminded me of an awesome training my former employer developed that turned every solicitation into a series steps. As I reflect upon those steps in the warm glow of this morning’s video, I now appreciate how they were trying to make in-person solicitation a simple exercise for volunteers.
checklistFor those who are curious, here are those 12 steps to a simple and effective face-to-face solicitation:

  1. Don’t call your prospect until you’ve inked your pledge form
  2. Don’t think about the money . . . think about the client who will benefit from this potential contribution (and keep doing so throughout the entire process)
  3. Make sure you have a connection or relationship with the prospects you’ve chosen to solicit because cold calls are scary and not very effective
  4. Pick-up the phone and ask your prospect for time in their calendar (guard against accidentally asking for the contribution while you’re on the phone)
  5. Prepare for the meeting (e.g. review the case for support doc, FAQs, etc)
  6. When sitting down with the prospective donor, talk about what is in the case for support document (e.g. org mission, community need/s that the org is trying to address, what the org is doing to address those needs and the effectiveness of those programs, etc)
  7. Share your personal commitment to the campaign and the organization (e.g. your gifts of time, talent and treasure and why you are doing so)
  8. Ask the prospect to join you by considering a contribution of a specific dollar amount (e.g. “we’re hoping you will give some thoughtful consideration to making a contribution of $XXX to support the programs we just talked about as well as everything else this organization does for its clients)
  9. Be quiet and let the donor give your request some consideration (and the first person to speak should be the donor)
  10. Answer the donors questions
  11. Set-up a time to follow-up with the donor if they aren’t ready to immediately ink the pledge form (e.g. never leave the pledge form behind and always walk out of the meeting with a definite date and time to touch base again)
  12. Express your thanks and gratitude for their time (because their time was a gift unto itself)

I love this list because as Henry expressed in his morning’s video, volunteers need tools to help them keep the solicitation meeting simple and following this 12 step process could very easily help keep the in-person meeting focused and short.
matt damonThis morning’s video also reminded me of another YouTube video a friend sent me a few days ago. It is a montage of video clips featuring actor Matt Damon in the HBO television series “Entourage“. The YouTube video illustrates the emotions, fears, and mistakes associated with asking your friends and colleagues for a charitable contribution.
The person who posted the Entourage video clips blocked my ability to embed the video into my blog. So, you need to click here to watch that video directly on YouTube. But don’t forget to circle back to this post and finish up our discussion.  😉
So, what are you thinking this morning after watching two great YouTube videos and reading this post? How do you help your fundraising volunteers “keep it simple“? How do you keep it simple when soliciting donors? How many mistakes were you able to spot in the Matt Damon video clip? Please scroll down and share your thoughts and experiences 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

How does your non-profit leverage donations to secure more funding?

Fundraising

Sorry for not posting anything on Tuesday morning. The internet connection from my hotel room was non-existent, which is why you’re receiving this late breaking edition. Enjoy!  ~Erik
IMG_20150802_102350339_HDR[1]A few days ago, I was in an airport trying to catch a connecting flight when I saw a poster advertisement for an international non-governmental organization (NGO) that provides medical services to children and families in third world countries. I took a picture of the portion of the advertisement that immediately caught my attention.
“Every $1 you give will send $105 worth of lifesaving medicine and supplies.”
One of the eight best practices I teach clients as it relates to fundraising is that challenge gifts are very effective and will help you reach your goal. The following are just a few reasons challenge gifts are effective:

  • it reassures donors that there are other big donors behind the campaign and lends credibility to what you’re trying to accomplish
  • it is inspirational and creates a bandwagon effect for donors
  • it gives donors the feeling their gift is bigger and more impactful
  • most importantly . . . it creates a “sense of urgency” for your fundraising staff and volunteers

There are many different ways to leverage one gift (or a pool of gifts) and secure other contributions. The following are just a few effective examples I’ve seen throughout the years:

  • Traditional challenge gifts to annual or capital campaigns where a donors says “I’ll match every dollar up to a certain level of contributions” 
  • Using a grant to leverage private sector philanthropy by telling donors that your organization secured a grant for a certain amount, but the program/project costs more which is why additional donors are needed before the grant can be ethically accessed
  • Securing in-kind contributions of supplies/materials and asking donors to underwrite the staffing and overhead costs needed to use the in-kind donation (as shown in the picture above)
  • Asking leadership giving donors to join a donor recognition society whereby their pool of donations will be used as matching dollars for other donors (e.g. national public radio does this very well)
  • Using one donor’s contribution (of any size) and asking another donor to match it (e.g. the Obama campaign did this very well with their online fundraising strategy)

In my experience, non-profit organizations reserve this strategy for BIG projects (e.g. capital campaigns, endowment campaigns, etc); however, there is no good reason why you couldn’t use this strategy to leverage additional dollars for your annual campaign, major gifts initiative (as long as it is project focused), special event, etc.
Please use the space below to share an experience where you successfully used a challenge gift or leverage strategy to raise more money for your organization. How did you identify the opportunity? How did you present it as an opportunity to the donor? What was the result?
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

Ode to Rachael Jones: Here's to not putting donors in boxes!

Fundraising

rachael jonesOne of the clients I’ve been working with for a while is located in Bloomington, Indiana, which is where I met Rachael Jones. Rachael is a transgender woman who used to own “Rachael’s Cafe”. Unfortunately, after eight years of serving coffee, food and a side of acceptance, Rachael closed her doors last month. During my last visit, the executive director handed me a copy of the June 29th edition of The Herald-Times newspaper with a front page story headline that read “Downtown gathering place closes after 8 years of fostering acceptance“. He shared the newspaper story with me because he knew I had wanted to be there for Rachael’s last day, but I just couldn’t make it work with my travel schedule.
So, what does any of this have to do with non-profits or fundraising? Well, tucked away inside of Kurt Christian’s front page article, there was an amazing story Rachael told that I think is applicable to every fundraising professional’s life. And I want to share it for two reasons:

  1. To pay tribute to an amazing human — Rachael Jones (someone I greatly admire and wish I had half her courage)
  2. To help new fundraising professionals understand something very important about their donors

In the article, Rachael tells the newspaper reporter about a life lesson she learned from one of the construction workers who had been working on the renovation of the cafe prior to it opening in 2007. After coming out to the crew as being a transgender woman, one of the guys asked Rachael if she would consider judging a chili cook-off event in a small rural town south of Bloomington, Indiana.
Rachael was hesitant to accept the invitation because:

  • small town America isn’t ready for a transgender woman
  • people would judge her
  • it might not be safe

Or so she thought.
Thanks to the insistence of the construction worker who had invited her, Rachael showed up and judged the chili cook-off. In hindsight, here is what she said about this life changing event:

“I went, and I was so sure I was going to be judged. But these people were wonderful. It was a beautiful experience, and I had a lot of fun, and I learned a great lesson. I had put them in a box that didn’t exist; they didn’t belong in that box.”

I just love how Rachael framed her experience. I’ve been thinking about these words for weeks during countless hours of windshield time driving from client to client. The more I think about these words, the more I wondered “how many people have I put in boxes during my life?”
It was during one of these contemplative moments that another more interesting question bubbled to the forefront:

“How many donors have I put in a box that didn’t exist and they didn’t belong in?”

I fear that I’ve done it a lot, and I’ve justified it all in the name of “segmenting donors lists“.
Segmenting donors is a common practice in most fundraising shops, and it is a best practice. Not only does it keep you from asking people to attend events who hate going to those type of fundraisers, but it also keeps you from sending mail to people who prefer email communications. When done right, you are categorizing donors based on their feedback and their wishes.
HOWEVER . . . is it possible to take the practice of donor segmentation too far? Could we be creating boxes that shouldn’t exist? I’m inclined to think so. Here are a few confessions I’ll make when it comes to constructing boxes for donors that I probably shouldn’t have:

  • I’ve looked at a list of donors and said something like: “They wouldn’t be interested in supporting THAT program“
  • Prior to a stewardship visit, I’ve decided what to share with the donor based on what I thought they were interested in hearing
  • I’ve excluded donors from receiving certain solicitations because I was fearful they might make a contribution, which could undercut another solicitation for a different project

In this era of so-called “Donor-Centered Fundraising,” shouldn’t we take a page out of Rachael Jones’ book by engaging our donors in more exploratory conversations and do a little less segmenting and box building?
I’m interested in what you have to say about this question. Please share your thoughts and experiences in the comment box below.
Here’s to your health! (And congrats to Rachael on eight great years and for being an inspiration to us all)
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

Tips to Improve Your Direct Mail Strategy

Fundraising

I’ve recently signed a contract that has me working with organizations in upstate New York, Vermont and New Hampshire for the next few months. With this new super new exciting challenge, I plan on increasing my use of guest blog posts as a way to make my life work. Hopefully, this will also bring new and exciting points of view to the DonorDreams blog community. I want to thank Gretchen Barry and our friends at NonProfitEasy for today’s contribution. I’ve included Gretchen’s bio at the end of today’s post. Enjoy!  ~Erik

4 Ways to Improve Your Direct Mail Strategy

By Gretchen Barry
NonProfitEasy
mailboxesThe ease of technology now reaches almost all aspects of life, even fundraising.  With the help of social media and email and texting, nonprofits are now able to raise money with the click of a button.  This shift has been hugely beneficial.
Easy access equals quick donations.
HOWEVER, the growth in online fundraising techniques does not mean that older methods should fall by the wayside.  In particular, direct mail should remain a fundraising method of choice.
There’s a common misconception that direct mail is only for reaching nonprofits’ ages 65+ demographic.  There is some validity in this statement.  Yes, a powerful contingent of donors prefers direct mail because those in that age range use the online functionalities nonprofits provide with less frequency.
Remember though, younger donors appreciate direct mail just as much.
For young donors, like millennials, snail mail is actually a novelty.  The internet has made everything so easy that it takes very little effort to email a friend or send an e-card.
A hand-written note or a personalized, mailed package takes effort and, as a result, shows dedication and care.  A direct mail campaign will surprise and connect with the elusive and generous millennial population.
Showing care in your communications is a great way to improve your fundraising effectiveness.  Direct mail can make a huge difference in your donor acquisition efforts.  People want to feel appreciated for the time and money they’ve invested in your cause.
The four tips below will help ensure your team is implementing the best direct mail strategy around.
1) DECIDE IF THE FUNDRAISER IS RIGHT FOR DIRECT MAIL
This point might seem obvious, but let me explain.  Each nonprofit is centered on a mission to serve a needed and worthwhile cause.
It should be easy to convince people that your cause is worth caring about.  What’s harder, and what should come into play when deciding whether to use direct mail or not, is knowing if any given fundraising campaign will be one people will feel compelled to donate towards.
Campaigns run the gamut.  Some are for new equipment.  Others are for events.  The scope is broad, but usually you’re asking for funds for a set venture rather than a generic fund.
So you can feel confident about your decision to put the extra effort and money into direct mail fundraisings, ask:

Once you’ve thought through those questions, you’ll be better equipped to decide if direct mail is the right fit.
Direct mail is not limited to fundraising.  Its uses range from sending out educational content to requesting RSVPs for an event. Don’t forget that when weighing if direct mail is the right fit.
Just really think through what you’re asking for.  A donor wants to help the cause.  She might be more inclined to donate an auction item to your annual gala’s live auction than a check for new office chairs.  Both asks are valid, but you have to determine what is important to your constituents.
2) KEEP AN EXCELLENT MAILING LIST
An ineffective mailing list will result in an ineffective campaign.
There are three biggies when it comes to organizing a mailing list:

  1. Reliable Donors
  2. Updated Information
  3. High-Quality Prospects

You want to spend your time and money contacting those who read and respond to direct mail.  It’s a good idea to have a donor segment of your prospects and donors who prefer direct mail.
If a donor has a history of never contributing as a result of a hand-mailed campaign, why would you spend the postage on shipping materials to him?
Also think about the time wasted mailing an item to a donor’s former address, or, worse, referring to an outdated detail.
Let’s say Mrs. Smith, formerly Ms. Jones, has moved in with her new husband.  If your list doesn’t have this information, your campaign likely won’t reach her.  If you do end up getting the correct address, what happens when she’s addressed by her maiden name?
Side-step this problem by making sure your donor database information is current and accurate.
The mishap might not upset her, but using her new, married name would certainly impress her.  It would demonstrate care — one of the biggest benefits of direct mail.
3) ATTACH A SELF-ADDRESSED STAMPED ENVELOPE (SASE)
If direct mail’s benefit is a demonstration of effort and email’s benefit is ease, how do you bridge that gap?  Just because donors enjoy the care you put into sending a package, it doesn’t mean that they won’t miss the simplicity of donating online.
How do we solve this problem?  Send your mailings with an SASE.  If your donor has decided to send funds don’t lose them on a technicality.  Take the guess work out of replying.
With a SASE a donor simply applies postage and sticks the envelope in the mail.  You could even talk to your post office about getting a permit to make the postage on your SASEs pre-paid.
4) TRACK YOUR RESULTS
Your direct mail methods should become more effective over time if you actively work on improvement.  What’s the best way to improve your approach?  You look at what you’re doing, determine areas of weakness, and focus on lessening those weaknesses.
Take advantage of your experiences by tracking campaign results.  That data will provide invaluable insight into potential direct mail mistakes.
Here’s what you should be analyzing:

  • Number of responses
  • Response type — How many RSVPs? How many no thank yous?
  • Donation amounts (if applicable)
  • Number of returns to sender
  • Comparison of funds raised versus costs to send

After a campaign, you will have the raw data.  That raw information will be the foundation of the metrics listed above.  Let that data make a difference.
With the way recent technology has revolutionized the nonprofit marketplace, it is difficult to resist the urge to go completely digital.  Don’t forget about direct mail though.  If you do, you’ll be missing out on an incredibly valuable opportunity.

GretchenGretchen Barry, Director of Marketing — Gretchen has been a leader in corporate communications and marketing for 20+ years. Gretchen has published numerous articles related to charitable giving and is a passionate advocate for public schools.  Gretchen has donated her time to numerous causes including Relay for Life, Girls on the Run, Rebuilding Together, and just recently became involved with the local land trust.  Gretchen graduated from the University of Nevada with a degree in English literature.

Build relationships with donors before asking them to sponsor your event

Fundraising

sponsorshipsMy neighbor owns and operates a home business, and last week he received a letter from a local non-profit organization asking him to sponsor a “no-show” event. Upon digesting the solicitation, he promptly scanned the letter and emailed it to me with a few choice words. To say he was upset would be an understatement. So, I thought this might have the elements of a good blog post about how to avoid donor reactions like the one my neighbor experienced.
I’ve decided not to share the letter because I’m not a fan of public shaming, but after reading the letter I am comfortable sharing the type of information they sent him. Included in the letter was:

  • date of the no-show event
  • brief explanation of how it works (e.g. send in your contribution and bid online for auction items)
  • list of sponsor benefits
  • sponsor menu (enclosed with letter)

In order to avoid making assumptions about the source of my neighbor’s emotions, I emailed him and asked him to articulate exactly what made the hair on the back of his neck stand on end. This is what he said:

“If you want a donation, ask. I feel that this is a deception. I just don’t get this warm and fuzzy feeling from the letter.”

My first reaction was . . . “Wow, that was a strong reaction!” However, after thinking about it for a few minutes, it dawned on me that:

  • my neighbor didn’t have a relationship with this organization
  • he didn’t have an emotional connection to their mission
  • he didn’t have much (if any) information about their programs
  • the case for support was implied
  • the idea behind a no-show event felt like a slick fundraising trick

I totally get it, and if time machines were a reality, I’d advise this organization to use it and change their approach in the following ways:

  • invest a little time in cultivating the people they plan on asking to sponsor the no-show event (e.g. sit down with prospects, provide info in advance about mission/programming, or at a minimum send a pre-solicitaiton mailing explaining the need and prepping them for the impending request)
  • get to know your prospect’s marketing needs and develop a proposal that speaks to those needs
  • commit to measuring the impact of the exposure that you’re committing to the sponsor (e.g. number of Facebook impressions, etc)

While I don’t know for sure, I’m guessing this organization sent their sponsor letters to a cold mailing list they purchased from a mail house or a chamber of commerce. Cold calls are a brutal way to raise money because fundraising is all about relationships, which is why I’d only solicit people with whom you have a pre-existing donor relationship.
If you are new to the game of writing sponsorship proposals, I really like how practicalsponsorshipideas.com outlined what a good proposal looks like in their blog post “10 Essential Steps to Create a Winning Sponsorship Proposal“.

  1. Sponsorship opportunity
  2. Marketing objectives
  3. Measures of success
  4. Value to the sponsor
  5. Unique marketing initiatives
  6. Terms & conditions
  7. Call to action

To learn more about each of these ideas, I encourage you to click-through and read their blog post. It is definitely worth the click and your time!
The bottom line? Engage your prospects/donors and build strong relationships and everything else will fall in place.
How does your organization approach special event sponsorships? Please use the comment box below to share your thoughts and opinions. We can all learn from each other.
Here’s to your health!
Erik Anderson
Founder & President, The Healthy Non-Profit LLC
www.thehealthynonprofit.com 
erik@thehealthynonprofit.com
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