Tag: resource development

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 4, 2011 DonorDreams Fundraising

Colbert SuperPac: Not a fundraiser’s alterative universe

On June 30th, the Federal Election Commission (FEC) voted to approve Stephen Colbert’s (a comedian and host of the Comedy Central Colbert Report) application to form what is called a “SuperPac”. According to NPR and other various report, Colbert left the hearing room, went outside to a throng of supporters, and started accepting people’s credit cards. He used a credit card swipe machine attached to an iPad to process contributions from enthusiastic supporters.

In the wake of the ruling, Colbert launched his Colbert SuperPac website, started taking online contributions, and now scrolls the names of his donors along the bottom of the television screen during his shows.

Over the last month, I’ve watched this fundraising drama unfold and found myself wondering: “Is this some kind of bizarro, alternative fundraising universe?”

What I thought I was seeing was average people pulling out their wallets and throwing money at an organization that didn’t have a mission, vision, or case for support. Go to the Colbert SuperPac website, click around and try to find any of that information. It doesn’t really exist. What does this organization stand for? What will this organization support? How will it support those things it believes in?

You will find no answers. As a matter of fact, Colbert interviewed political analyst Matthew Dowd on his show about this very subject, and in the end he concluded that he would ask his donors what his SuperPac should symbolize and support. As a non-profit fundraising professional, it took me a long time to wrap my mind around the idea of going to a donor, asking for a contribution, and then asking the donor what they think your mission, vision, case for support, and programming should be.

My Dad has said I am not the sharpest knife in the drawer; however, after many walks and conversations with my dog, I have come to the conclusion that this is NOT a bizarro, alternative universe for fundraising professions.

There is a very witty and satirical case for support that Colbert’s super-smart audience understands. It isn’t written in a case for support document or a glossy solicitation brochure. The SuperPac’s case for support is embodied in a series of “comedy bits” that Colbert has been airing ever since the Supreme Court’s controversial “Citizens United” decision in 2010.

In a nutshell, the Colbert SuperPac’s case goes something like this: “Making a contribution to this undefined political action committee will allow us to demonstrate to the FEC, policymakers, and the Supreme Court that there are dangers and unforeseen consequences of such a decision. Your contribution also helps test a hypothesis that unlimited ‘free speech’ can have adverse consequences on democratic institutions. In the end, your contribution might even save our American democracy.”

Now THAT is an amazing case for support, which must be why so many people are lining up to give Colbert SuperPac their money.

OK … now that I’ve convinced myself that the fundraising universe hasn’t been turned upside down, I see all sorts of fundraising lessons for non-profit organizations and fundraising professions such as:

Your organization’s case for support needs to be POWERFUL if you want to be serious about raising money.
Your fundraising efforts will benefit greatly if you find the right voice to talk about your case for support.
People will contribute only if you ask them. So, stop beating around the bush and dropping hints.
Allowing donors to swipe their credit card will help inspire spontaneous giving.
Taking contributions online via your website needs to be supported by multi-channel cultivation, solicitation and stewardship activities.

Well, you’ve been watching the same things I’ve been watching . . . what are your observations? What fundraising best practices are you seeing? Is there a moral to the story for fundraising professionals? Please use the comment box to share your thoughts because we can all learn from each other!

Here is to your health!

Erik Anderson

Owner, The Healthy Non-Profit LLC

August 2, 2011 DonorDreams Uncategorized

ePhilanthropy: Mission Possible

Last week, I dedicated the entire week’s worth of blog posts to exploring ePhilanthropy related topics. However, I still have a few thoughts that slopped over into this week. Today, I wrap-up this ePhilanthropy series by looking at how non-profits (especially under-resourced organizations) might begin preparing for the future.

Executive directors and resource development professionals don’t need to walk down this road alone. There are people who serve on your board of directors who work in the for-profit sector and are light years ahead of us when it comes to e-commerce. Additionally, there are so many people who are tech enthusiasts in your community who would love to volunteer for you just so they can play some more with technology.

The first step for any organization is to recruit people and build a team to help you. I don’t think you should make this a committee of only tech-minded people. Try to recruit volunteers who have the following skill sets: 1) technology acumen or curiosity, 2) an understanding of and love for your mission, 3) a personal track record of donating to other charities online, and 4) some basic understanding of how resource development works (or a willingness to learn).

It is always a best practice for a committee or work group to collaborating on creating a written “annual work plan” before rolling up their sleeves and getting to work. For this particular group, I suggest the work plan for Year One of this project involve the following discussion items:

Review and recommend to the board of directors that they adopt Network for Good’s ePhilanthropy Code of Ethics.
Evaluate your website and make sure your evaluation process includes asking donors to weigh-in on content and functionality.
Make a plan for redesigning your website and incorporate action items that transition your site from Web 1.0 to Web 2.0 (include installing and using data analytics ). If you have the capacity to start implementing your plan in Year One, then charge down that road gleefully. Try to include a blog (one that you use weekly) and video to tell your organization’s story to online donors.
Look at your email house file and how your organization encourages supporters to provide their contact info. Make a plan with measurable goals for increasing the number of emails in your database and put it into action. (See yesterday’s blog about email)
Create a simple e-newsletter that drives readers back to your website by encouraging them to “click-through” using html hyperlinks. Make sure you’ve purchased an email service provider and use it to distribute your e-newsletter. Also make sure that you are using the built-in data analytics that come with these services. Experiment with different things and see what results in better traffic. (Remember: this means that your website content needs to be updated regularly)
Make a plan for social media that includes Facebook, Twitter, and LinkedIn. It should answer the simple question of how you plan on using each platform and which target audience you hope to speak to. The plan also needs to address how you plan on building an “online following” as well as what content is shared (how often and by whom). Above all, it needs to look at the idea of creating an “online conversation” with target audiences. This isn’t just about shouting marketing and fundraising messages into cyberspace.

Phew … that probably seems like a lot of stuff to accomplish in Year One for some organizations. If so, no problem … break some of these initial work plan items into multiple years. Walt Disney summed it up best when he said, “The way to get started is to quit talking and begin doing.” It doesn’t matter how slow or fast you move. The important thing is that you start moving!

Keep in mind that engaging your donors (via surveys, interviews, focus groups, recruitment to the committee, etc) is a great way to be “donor-centered” and ensure that your ePhilanthropy plans will meet their needs.

So, what is your organization doing to position itself for ePhilanthropy? Have you learned any lessons? If so, please share using the comment box below. We can all learn from each other.

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 29, 2011 DonorDreams Uncategorized

Hooking fish but not landing them

I am dedicating this week’s blog posts to exploring ePhilanthropy related topics. Since this field of resource development is still cutting edge (or should I say bleeding edge), I encourage everyone who is dabbling, experimenting and playing with tools in this field to please weigh-in using the comment section of this blog. Today, I turn my attention to websites.

Well, here we are … back at square one — “The Beginning”. I can imagine that this entire ePhilanthropy thing started a long time ago at the start of the digital revolution when one resource development professional asked themselves: “Hmmm … my donors online are all hanging out online. I wonder how I can using my agency’s website to raise money?”

So, talking about websites seems like a very anti-climatic way to end the week. Right?

If you responded in the affirmative, then I beg to differ because the issue with ePhilanthropy is how quickly technology changes. In my opinion, there is a real danger is in forgetting about one of the most basic building blocks (e.g. website) and getting distracted by the new shiny objects (social media, online videos, etc).

Still skeptical? Think of it this way … your organization’s website is like “home base” for your entire ePhilanthropy program. Your social media, online video and email strategies are like a “fishing pole, line and hook” is to a fisherman.

Let’s take an example from my blog post yesterday about online videos. I posted a YouTube link to an online video solicitation from Chris Salvatore on behalf of the Gay American Heroes Foundation. I talked about the effectiveness of the video and admitted that immediately after viewing it, I had wanted to make a donation, but I never did. The reason I didn’t donate was because of the foundation’s website. Click here to check it out.

Do you see what I mean? Their website is a mess. It is full of emotion, but it was hard for me to quickly determine what they plan to do with my donation and what the “return on investment” would be.

Your organization’s website is your face on the information super-highway. You can hook all the fish you want using tools like Facebook, Twitter, online videos, and email; however, you will never land those fish if you cannot instill confidence and clearly communicate your case. Online donors turn to your website to find this info. If it looks like you just vomited a website into cyberspace, trust me when I tell you: “it kills the mood as well as the will to donate”.

Creating your organization’s website is complicated because it involves skill sets in the following areas: technology, marketing & communication, and internet practices (e.g. search engine optimization, etc). However, if you want to be “donor-centered” in an online environment, then you need to be really good at ALL of these things (or outsource some or all of it to professionals who can help you).

With that being said, I strongly believe in life-long learning. You might not able able to be an expert in all things pertaining to websites, but it is possible to become knowledgeable enough. This is important because only you can make the strategic decisions that are important to your resource development and ePhilanthropy programs. For this reason, I was so excited to find all sorts of free online resources (e.g. articles, trainings, etc) from Network for Good on their online learning center website. Click here to see all sorts of resources pertaining to websites.

I bit off more than I can chew with this topic, so I will carry it over into part of next week. Do you have any best practices to share with regards to your website? How do you fit your website into a comprehensive ePhilanthropy strategy? How does your ePhilanthropy strategy fit into your comprehensive resource development plan? In what ways have you exported the ideas of “Donor-Centered Fundraising ^TM”? We can learn from each other!

Here is to your health!

Erik Anderson

Owner, The Healthy Non-Profit LLC

July 28, 2011 DonorDreams Uncategorized

Places everyone! Online videos and fundraising

Some research indicates that people retain 5-percent of information communicated verbally compared to 20-percent when it is communicated both verbally and visually. I suspect this comes as no surprise to many of us. I know I’ve always told friends that I am more of a “visual person”. Moreover, this seems to be totally supported by the popularity of television and movie theater entertainment.

What was surprising to me was how biased and opposed I originally was when a colleague presented the idea of using an online video strategy to solicit donors for contributions. I was convinced that the only place online video should be in a comprehensive resource development plan is in prospect identification and possibly in cultivation and stewardship activities.

As with many of my hard held opinions on fundraising, they usually get challenged and I end up softening and reconsidering. In this case, I started changing my mind when a friend forwarded me this fundraising video for a foundation that fights bullying for LGBTQ youth. Check it out … click here.

OK … are there any dry eyes out there?

While I was moved, I still didn’t make a donation to that foundation because I wanted more information about programming and impact. However, I was persuaded to soften my position about the role online video might be able to play in the solicitation process.

Shortly after this experiece, my friends at Boys & Girl Clubs of Indianapolis partnered with Cantaloupe.TV and produced a series of online videos aimed at introduction, cultivation, solicitation and stewardship. Here is one of the videos they produced … click here. You can check out their other online videos, which are posted on their webpage.

Perhaps most persuasive for me was an amazing online training I found online titled “Lights, Camera, Action!” by Elliott Greenberger and Davin Hutchins of See 3 Communications. I found the training on Network for Good’s fundraising123.org training website. Click here for the session description and access to additional audio and video links at the bottom of that screen.

So, I am still not totally convinced that online video is a super effective solicitation tool because I cannot find any good data that shows me how much money anyone has ever raised using this strategy. However, I can say that I am all ears and very open-minded to learning more. Please use the comment box below to share your experiences. Results? Strategies that worked or didn’t? What you plan on doing differently in the future? If you have a good example of an online video used for solicitation, please paste the link into the comment section so we can all see it.

Here is to your health!

Erik Anderson

Owner, The Healthy Non-Profit LLC

July 27, 2011 DonorDreams Uncategorized

Facebook and fundraising

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

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

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

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

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

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

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

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

Here is to your health!

Erik Anderson

Owner, The Healthy Non-Profit LLC