solicitation – Page 6 – The Healthy Non-Profit

Marketing does not equal resource development, usually

April 10, 2012 DonorDreams Fundraising

A very good friend of mine from Ohio emailed me last week and said that her soap box topic for the month of March for any non-profit who would listen was: “marketing is not resource development“. Oddly enough, I too spent the month of March telling many people the exact same thing. So, this morning I decided to climb to the top of my online soap box and yell as loudly as possible that “Marketing does not equal resource development, usually“.

First, let me address the issue of why I used the word “usually”. Simply stated in two words . . . “Cause-related Marketing”.

For those of you who are still wrestling with what cause-related marketing is all about, I point you in Joanne Fritz’s direction. She has written a number blog posts on the subject including “Five Best Cause Marketing Programs For Local Nonprofits“. In this instance, cause-related marketing is a solicitation tool and can become a part of a non-profit organization’s comprehensive resource development plan.

So, what exactly is “resource development”?

Without looking up definitions in a Fundraising 101 textbook, I’ve always thought of resource development as a big machine with a number of cogs that work together. Those cogs have the following names:

Prospect identification
Prospect introduction
Prospect cultivation
Prospect solicitation
Donor stewardship

In recent months, I have come across a number of non-profit organizations (esp. board volunteers), who believe that their agency simply needs to invest in more marketing to solve their revenue problems. The implication is that there is a direct relationship between dollars coming in and the agency’s visibility.

Please don’t get me wrong. I am not “hating” on marketing people today. In fact, I love the marketing profession and spent three years working as a newspaper journalist. I love my marketing friends; however, I really want them to stop telling my non-profit friends that they have the cure for their revenue ills.

Yes . . . yes . . . yes . . . It is true that better marketing will improve an agency’s visibility in the community, which can impact resource development activities like identification, cultivation, and stewardship. It is also true that in some instances like “cause-related marketing” that marketing becomes a solicitation tool. However, in the end, the reality is still:

Marketing ≠ Resource Development

Let me share a few examples of how marketing professionals and fundraising professions look at the same resource development issues and think differently:

Example #1: How to improve your existing annual campaign?

Marketing professional — give the donor something they really value (like a really nice premium gift). This will change the ROI calculation and result in more donors and increased dollars raised.

Fundraising professional — revise the agency’s case for support, provide better training and support to volunteer solicitors, recruit more solicitors to make more asks . . . these things collectively will allow for a higher quality solicitation as well as more solicitations all of which will result in increased dollars raised.

Do you see the difference in approach?

Example #2: How to engage more prospects?

Marketing professional — purchase advertising (or secure it for free using a public service announcement strategy) in local newspapers, radio and cable television. Tell people about your agency and those who are interested will opt-in using a telephone number, email or website address provided in the ad.

Fundraising professional — engage board members, volunteers, and existing donors in helping you identify their friends who share a common passion for your organization’s mission. Once those prospects are identified, ask those same volunteers and donors to invite their friends to participate in mission-focused activities like an open house, reception, event or cup of coffee with the executive director.

Do you see the different in approaches?

In the for-profit world, those corporations sell “things” (e.g. widgets), and those products are valued by consumers. So, when someone sees a marketing pitch around something they want, then it triggers this impulse to purchase. In my humble opinion, this is not the same dynamic at play when it comes to donors who make charitable contributions to non-profit organizations.

This is not to say that an impactful marketing program isn’t important because it surely is. However, I really want board volunteers to stop pinning their hopes of increased revenue solely on marketing efforts because:

“hope” is NOT a strategy, and
there is no substitute for board members and fundraising volunteers participating in a comprehensive resource development program.

I understand that sitting down and asking people for money can be scary, but it is the only thing in the universe that has ever worked. So, let’s stop “hoping” and looking for ways around it, and let’s start building a resource development machine that is supported by an effective marketing program.

So, do you disagree with me? I know there are tons of people out there who do. If so, please scroll down and share your thoughts using the comment box. Do you agree with me? If so, please scroll down and use the comment box to provide additional examples of how marketing professionals and fundraising professionals approach similar resource development questions from different angles.

We can all learn from each other. I am open-minded and willing to consider other viewpoints.

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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It’s a party! Non-profit special event tips and tricks

February 24, 2012 DonorDreams Fundraising

Welcome to non-profit special event season. At least that is the case where I live. Over the course of this last week, we’ve examined FOUR very special and unique special events. Today, we’ll end all of this “party talk” by discussing a few tips and tricks.

However, before we start, please read this quick disclaimer:

“If your agency is small (e.g. too few staff, too few board members, too few volunteers, too few donors, etc) and you need to raise some SERIOUS money, then STOP thinking about throwing a party to raise money! Remember, CharityNavigator.com studied the return on investment (ROI) question and found that the average non-profit will spend $1.33 (direct & indirect costs) to raise $1.00 using a special event vehicle.”

So, if this disclaimer describes your non-profit agency, then I urge you to round-up a small group of volunteers (e.g. those who REALLY believe in what you’re trying to do) and organize them into a group that asks their friends-neighbors-family for direct contributions. Yes, this approach is scary for a lot of people, but it is more effective and you’ll raise more money with less effort.

With that disclaimer out-of-the-way, the following are a few special event observations, tips and tricks for those of you who aren’t quite so desperate and might already have a comprehensive resource development program in place:

If you look around the table and see more staff than volunteers during the planning phase, then please STOP and go recruit more volunteers. This isn’t hard. There are so many people out there who love to plan and participate in a party (at least more so than there are people dying to work pledge cards).
Remember, special events that make crazy sums of money typically do so because of corporate sponsorship and not because a lot of people purchased tickets. Yes, you need people to attend, but make sure to focus your energy on selling sponsorships.
Speaking of sponsorships . . . make sure there is VALUE in those sponsorship packages. Remember . . . companies give you money for different reasons than individuals. So, sit down with your corporate prospects and figure out what they value. Once you figure that out, you’ll easily be able to sell them a sponsorship or craft one around their needs (e.g. marketing impressions, employee involvement, etc). The key here is talking to them in advance AND listening to them AND giving them what they want and need.
The first three letters in fundraising are F-U-N, and special events should personify this word. If you and your volunteers aren’t having a blast planning, organizing and running a special event, then you need to STOP and figure that out! There are so many ways to inject fun into your event: theme, contests, recognition, etc. However, it doesn’t happen accidentally. Non-profit and fundraising professionals set the stage with their demeanor, attitude, approach and ideas.
Infuse mission into your fundraising event. Your special event is a great opportunity to “cultivate” new prospects and “steward” existing donors. This is your moment to shine and educate. Sure, playing 18 holes of golf is fun, but if you can’t find fun and ways to talk about your mission and get people excited about what you do, then I suggest not doing the event.

I don’t have unlimited space to share an infinite number of ideas with you. So, the following links are just a few additional fundraising professionals and organizations I suggest you check-out and read as you strive for creating bigger and better special events: Joanne Fritz, Convio & Event 360, and Andrew Olsen.

If your “fundraising strategy” is predicated on using special events to bring money into your agency, then you’re heading down the wrong fundraising road. Special events don’t make you much money when it is all said and done. I’m not saying “don’t throw a party;” however, I am saying “throw a party for the right reasons.” Sure, you’ll bring some cash into your bank account (not accounting for indirect costs, of course). However, special events are very effective when there is another step (or two or three) in your resource development program that you can transition your event donors (e.g. annual campaign, mail campaign, etc).

Here’t to your health!

It’s a party! Unique non-profit special event fundraisers: Part 2

February 22, 2012 DonorDreams Fundraising

Welcome to non-profit special event season. At least that is the case where I live. So, my partner and I have been making the rounds, and I thought I’d share some of the more unique special event ideas I’ve seen throughout the week. Today, we’re talking about The Larkin Center’s Sweetheart Auction fundraiser.

I must admit upfront that I’ve never seen a non-profit fundraiser quite like this one; however, a Google search reveals that this event is a little more common than you might think. Regardless, it is very hard for me to put it into words. For this reason, I thought it best to simply provide the language provided in the event program from that evening:

“The Sweetheart Auction includes a variety of activities, including a live auction for date packages. Each date package is represented by an eligible single. Bachelors and bachelorette are community volunteers who have agreed to appear in the event on behalf of The Larkin Center. Bidding is for the entire date package and can be bid on by any of our guests with a bidding paddle. Each package includes dining certificates and tickets to an entertainment venue. People appearing in the auction are representing the date package only and are not required to participate in the date package.”

On the ride back south, my partner and I talked about what we saw, and I thought you might want me to share (please note that this is just the facts ma’am):

We purchased our tickets online via the agency’s website and were redirected to PayPal. An email was sent after completing the transaction informing me that my credit card had been billed. I received my two tickets at the door upon check-in and was asked to provide whatever contact information I felt comfortable giving the agency at that time (e.g. address, phone, email).
As with most non-profit fundraising events, there were many different revenue streams associated with the event. There were sponsors with ads in the event book. There was a silent auction that complimented the actual “sweetheart (live) auction”. There was even a heads-or-tails raffle.
One free alcoholic drink was offered to those who showed up during the first hour that the doors were open.
I saw a number of paid staff in attendance and working the event (e.g. check-in, bouncer, accounts reconciliation, possibly even someone in the auction, etc)
There weren’t any pictures of kids or mission-focused factoids. However, the absence of kid pictures could probably be attributed to HIPPA laws. There might have also been a decision to downplay mission-moments due to the adult-nature of the evening.
There was a disc jockey (are they really still called that nowadays) and dancing after the auction.
There were 10 bachelorette who got up on stage and “encouraged” bidding on a variety of date packages. There were also six bachelors who did the same (albeit with more machismo and gyrating).

Those were just the facts, ma’am. So, I bet many of you are probably wondering if I did any bidding. Well, I cannot tell a lie. I did bid on two of the available Bachelors. I even won both of those bids. One beau is none other than the almost-famous Jason Pawlowski, who is the Promotions Coordinator for Downtown Neighborhood Association (DNA) in Elgin, Illinois.

If you can keep a secret, I have already been in contact with Jason and plan on taking him and his boss Tonya Hudson out on a lunch date in mid-March. Shhhhh! Please don’t tell my partner and the love of my life. AS you might guess, John is the jealous type.

Ok, ok, ok . . . truth be told, I did buy Jason … errrr . . . I mean to say that I purchased the AWESOME Chicago Blackhawks game package that he represented, but the mid-March lunch date is simply my attempt to slip Jason and Tonya some of my new business materials. 😉

So, this week I’m trying something different. Rather than spell out what I think the “lessons learned” and “best practices” (or not so best practices) are around special event fundraising, I thought I’d turn that opportunity over to you. What struck you as interesting? What takeaway lessons do you see? What best practices were used? Did anything about this event make you nervous? If you’re intimidated and don’t want to critique a fellow agency, please feel free to share best practices (or lessons learned) that your non-profit agency uses during the implementation of your events?

Please scroll down and use the comment box found below to answer any and all of the these questions.

Here’s to your health!

Should the new non-profit mantra be: Sell! Sell! Sell!

February 15, 2012 DonorDreams Fundraising

Yesterday, I introduced the idea of non-profit organizations looking in some non-traditional places to generate revenue such as “selling things” through unrelated business income efforts. Of course, I see non-profits also looking at “related” business income opportunities. Regardless, we’ll be talking about this topic for the remainder of this week. Today, we’re doing a deeper dive on what I think is driving this way of thinking and providing a few tips to those looking at this opportunity.

In the majority of my blog posts, I’ve talked about charitable giving and the $300 billion dollars every year that Americans contribute to charities. The reality is that the non-profit sector reports approximately $1.5 trillion in revenues and $2.5 trillion in assets (source: Philanthropy Journal). In round numbers, the Paul Clarke Nonprofit Resource Center reported a number of years ago that nonprofit revenue shakes out in the following way:

20 percent private contributions (e.g. fundraising)
45 percent fees and services (e.g. tuition and health related fees for service)
32 percent government grants and purchase of service agreements (e.g. Medicare, Medicaid, etc)

However, the 45 percent slice of the pie can be really deceiving as it was pointed out by Amy Blackwood, Kennard T. Wing and Thomas H. Pollak in their white paper titled “The Nonprofit Sector in Brief“. When looking at fees and services, they reported:

“These distributions, however, are largely driven by hospitals and higher education institutions. If we exclude these organizations, the distribution of sources of revenue changes substantially. In contrast, the remaining organizations are less dependent on fees for services and goods and more dependent on private contributions and government grants.”

So, I relayed a conversation in yesterday’s post — “What’s the next new thing in non-profit fundraising” — that I had with a very dear non-profit friend over a cup of coffee. In that discussion, she hypothesized that the next new thing might involve non-profits “selling more things”. I’ve concluded that she may indeed be right for the following reasons:

As you can see from the aforementioned source of funds data, non-profit organizations have been selling services and charging fees for years. While this as primarily been healthcare and education related charities, I suspect that during tough economic times agencies start “looking around” at their fellow non-profits for ideas to “borrow”.
My blogger friend, Joanne Fritz at about.com, also captured some of what I’m seeing in her post titled “Recession Provides Bump to Thrift Shopping and Social Responsibility“.

For those entrepreneurial minded non-profit professionals out there who are intrigued by this possible trend, I have a few suggestions:

First things first . . . sit down and figure out upon which revenue model you’re building your non-profit agency. This is one of those foundational decisions that shouldn’t be taken lightly. The Stanford Social Innovation Review did a very nice job distilling this question into 10 different revenue models. Click here to read that article.
If you want to open a store and sell stuff, then you need to start thinking and acting like a for-profit business person. Being a non-profit in a for-profit environment might not work very well. While this single thought could (and probably should become a blog post unto itself), I will share the following few tips: take a few business courses; develop a written business plan; remember that it is all about location-location-location; figure out the “pricing points” thing quickly; and be prepared to do marketing in a very different way from what you’ve done for your non-profit services.
Be extra careful with the “unrelated business income” thing. You don’t want the IRS to take away your non-profit status.
Tie your income-oriented “business venture” into your mission. If done correctly, you might be able to generate income from sales AND cultivate a new base of donors who are ALSO willing to make charitable contributions to your private sector fundraising efforts. This could be done in a variety of ways including: employing clients to operate the store, selling items made by your clients, decorating the store with mission-focused messages, etc
Involve your donors. If you look throughout your donor database, you’ll find a diversity of people from many different walks of life that possess a variety of skill sets and experiences. You’re not in this thing alone . . . you have passionate supporters who love you. If you engage those donors the right way, you might just see their involvement impact how they see your mission and their support of it.

Lots and lots and lots of questions, and the answers can get very complicated. So, before leaping, make sure you take a very hard look at whether or not this is something that fits with your organizational culture.

Does your agency operate a store or business venture? Please share your successes and challenges. Maybe its not a store, but you’re starting to eye product sale opportunities (e.g. cookies, candy bars, popcorn, etc). If so, what are the considerations racing through your mind. Please scroll down and share some of your lessons and considerations in the comment box below.

Here’s to your health!

Can your non-profit raise $1,000,000 in 24 hours using a crowd funding site?

February 13, 2012 DonorDreams Fundraising, Mondays with Marissa

What a difference a day makes. This week, video game developer, Double Fine Productions, raised over $1,000,000 within 24 hours of posting their next project on the popular crowd funding site, kickstarter. That’s a lot of money in a short amount of time, and it got me thinking — if it can happen for video games, why can’t it non-profits do the same thing? Today we’ll take a look at two kickstarter-like options for you and your agency.

Helpers Unite

When you combine the entrepreneurial spirit of kickstarter with charitable giving, you get Helpers Unite. Helpers Unite creates opportunities to help businesses fund projects while registered 501c3 organizations collect donations. According to an article from The Next Web, the process for nonprofits goes like this:

“HelpersUnite has Projects and Causes on the site. Registered 501c3′s can create a Cause profile, including their logo, and then send the link to their Cause on HelpersUnite to their donor list as part of any fundraising campaign. Causes can keep their profile on the site forever, at no cost to them. They do not have to align with a charity and donate part of their funds raised on the site to another 501c3′s. All the money raised, less admin fees to HelpersUnite and credit card processing fees from PayPal, go to the non-profit. HelpersUnite features Causes on its site and social media channels regularly to help further promote users’ work.”

Additionally, Helpers Unite will send the donor a receipt for tax deduction purposes, so you won’t have to.

FirstGiving

FirstGiving is crowd funding through your current network of supporters. Supporters can create their own pages and raise funds through their social networks. According to Crunchbase:

“FirstGiving partner’s with nonprofit organizations to allow them to plan, execute, and measure successful online fundraising campaigns. For individual fundraisers, FirstGiving aims to make the process simple, effective, and even fun.”

This approach allows supporters to tell stories and bring awareness to their cause. FirstGiving seems best suited when supporters are fundraising for a project that is connected to a nonprofit, such as running in a marathon.

A few things to keep in mind:

Just like every other social media site, it is important to cultivate the community on each site. Make sure you have someone monitoring the interactions, engaging in those virtual conversations, and updating your profile often.
Spread the news. Not only announce that you have set up a profile on a crowd funding site, but announce the successes. People like to be a part of success.
Learn from others. Take a look around and see what other organizations like yours are up to. How are they using the site? Remember, imitation is the sincerest form of flattery.
Be specific. We all know that donors like to know where their money is going. On these kickstarter-esque sites, details about how the funds will be used is more important than general fundraising.
As of the writing of this post, Double Fine Productions has raised $1,662,430 with 47,231 backers making an average donation of $35. The company only asked for a $1 minimum donation. 25,730 supporters donated between $15 to $30. You can check the current figures, here. It only goes to show that, every penny counts.

Non-profits always seem to be trying to diversify their revenue streams. Do you see crowd funding as another possible fundraising strategy for your agency? Have you used a crowd funding source before? What worked? What didn’t? Please join the conversation by using the comment section below!

Choo! Choo! All aboard the philanthropy train

February 9, 2012 DonorDreams Donor-centered fundraising, Fundraising

On Tuesday of this week, I climbed aboard a train and made my way to downtown Chicago for a meeting with a former co-worker and current marketing consultant. It was on that train trip that I was thunderstruck by a revelation . . . trains are an amazing metaphor for non-profit organizations when it comes to resource development.

It starts at the train station. If you look around at those waiting for the train, you’ll observe people from all walks of life. There is a lot of diversity standing on that train platform, which also holds true for the average non-profit agency’s pool of prospective donors. Those who are interested in supporting your agency are young and old, white-collar and blue-collar, and rich and poor.

Non-profits who are successful at resource development recognize their mission is something everyone wants to climb aboard, and those agencies are very good at offering seats to everyone on that train.

Once the train pulls up to the platform, the doors open and the conductors come down out of the train onto the platform. They greet commuters, provide valuable information, and assist those who need help getting up into the train. After everyone is seemingly aboard, they look around and make sure there are no stragglers.

Successful fundraising organizations use fundraising professionals and fundraising volunteers to identify, cultivate, educate, inform and help prospective donors.

On the train, conductors are punching pre-purchased tickets as well as selling tickets to those who need them. Everyone pays to ride and no one goes without a solicitation. This all occur while the train is chugging along to its destination. After the solicitation period is over, the conductor stops and chats with passengers. They answer questions and talk about the “expected outcome,” which of course is arriving safely at your destination. The focus isn’t on the solicitation, it is on the outcomes (e.g. talk about the journey, reminders about safety, and the final announcement at the end of the trip that the ultimate outcome has been achieved).

Non-profits who make fundraising look effortless understand that fundraising isn’t the focus. They work hard to keep their donors and supporters focused on the journey, the outcomes and the impact. The message is never “we need your money” . . . it is always “we’re making a difference because of everything you do to support us.”

As the train pulls into Union Station, the conductor makes the following announcements:

We’ve arrived on time (e.g. we delivered on our promise)
Thank you for riding Metra (e.g. appreciation and acknowledgement)
Have a great day, watch your step getting off the train, and be safe
Remember to buy your ticket at the station for your return trip because you’ll save money

Stewardship is more than just thanking donors for their money. In addition to thanks and appreciation, the effective non-profits share return on investment information with their donors and take a genuine interest in their lives.

If you’re reading today’s blog post and think I’m exaggerating to make a point, then I think you need to take a train trip. For me, the proof is in the pudding when I see how many commuters appear to personally know their conductors and look happy to see them.

Non-profit organizations who want to improve their resource development programs and make them more donor-centered should climb aboard the philanthropy train and enjoy the ride. None of us are ever too old to learn a thing or two. 😉

Who are the “conductors” for your resource development program? No everyone is cut out for that job . . . how do you identify and recruit those individuals? Are you strategic in your efforts or is it more organic? What does your agency do to keep the focus off of fundraising and on the outcomes and impact (while ensuring donors are still contributing)? Does your fundraising program feel like a fun journey or is it just a series of unconnected stops?

Please use the comment box below to weigh-in. I promise that it is a warm and nurturing place. It will not bite you. 😉

Here’s to your health!

Wise words from a frog on donor recapture initiatives

February 2, 2012 DonorDreams Fundraising

This week we’re looking for non-profit and fundraising advice from one of my favorite books — “It’s Not Easy Being Green: And Other Things to Consider” — written by Jim Henson, The Muppets, and Friends. In yesterday’s post, we examined song lyrics from Dr. Teeth and the Electric Mayhem band and the importance of training your annual campaign volunteer solicitors. Today, we look at a quote from Kermit the Frog and the concept of re-engaging lapsed donors.

The following passage is something Kermit said in one of the muppet movies. I think these words are inspirational for non-profit and fundraising professionals who are looking at a long list of lapsed donors and contemplating how to re-engage them.

“Look at all those people out there. Lots of people. But my friends . . . my friends are all gone. Well, I’m, I’m going to get ’em back. I’m gonna get ’em back! ‘Cause the show’s not dead as long as I believe in it. And I’m gonna sell that show. And we’re all gonna be on Broadway. You hear me, New York? We’re gonna be on Broadway! Because, because I’m not giving up! I’m still here and I’m stayin’! You hear that, New York? I’m stayin’ right here. The frog is stayin’.”

While every non-profit organization’s donor recapture initiative will likely look a little different due to circumstances and available resources, they are all rooted in the following foundational approaches:

Identifying which lapsed donors are the best candidates for your recapture activities,
Assessment to determine if there were systemic reasons for the donor disengaging,
Developing a case for support specifically focused on why a donor should come back, and
Creating a plan that involves varied cultivation, solicitation, stewardship and testing strategies that uniquely speak to a family member who has been away from home for a while.

Doing all of this falls into the category of “good strategy,” but what Kermit speaks to is something entirely different — good attitude.

I cannot tell you how many times I’ve opened a letter, taken a phone call or visited with a fundraising professional who wants to engage me in a conversation about renewing my lapsed financial support. For me, it is all about tone and energy. I can tell if you really care about me or if you just care about my dollars. I can tell if you believe in your heart that I’m a member of your non-profit family.

You can put together the most strategically sound donor recapture initiative and still fall short if you don’t take Kermit’s words to heart about:

Being perseverant and demonstrating sticktoitiveness,
Believing in a cause, and
Understanding the concept of salesmanship.

Jerry Juhl was a good friend of Jim Henson and a puppeteer associated with the muppets. He said, “Kermit is the eye in the middle of the hurricane. And, you know, he’s always in control. And the interesting thing about it, of course, is that he created the hurricane.”

Every fundraising professional should take these words to heart because: 1) you are at the center of your agency’s fundraising program, 2) you need to always exude a sense ofbeing calm, cool and collected, and 3) you likely created the situation that you’re currently dealing with.

Has your agency every created or invested in a donor recapture initiative? If so, please share what it looked like? If you created a special case for support, what were some of the messages and themes you hit upon? How did you infuse emotion into your efforts? Please scroll down and share your thoughts using the comment box below. We can all learn from each other.

Here’s to your health!

Fundraising advice from Dr. Teeth

February 1, 2012 DonorDreams Fundraising

This week we’re looking for non-profit and fundraising advice from one of my favorite books — “It’s Not Easy Being Green: And Other Things to Consider” — written by Jim Henson, The Muppets, and Friends. Yesterday, we looked at the idea of being “mission-focused” in a quote from Jim Henson. Today, we’re taking some fundraising advise from the keyboard player and leader of Dr. Teeth and the Electric Mayhem band.

Here are some lyrics from one of the band’s hit songs that I think contains great advice for volunteer solicitors who are out there making the ask during tough economic times:

“Whenever there’s a dream worth a-dreamin’
And you want to see that dream come true
There’ll be plenty people talkin’,
Say forget all about it
Say it isn’t worth all the trouble.
All the trouble that you’re goin’ through
Well, what can you do?

You can’t take no for an answer
You can’t take no for an answer
You can’t take no for an answer.

No, no, no!

Whatcha gonna do when the times get tough,
And the world’s treatin’ you unkind?
You’ve got to hang on to your optimistic outlook,
And keep possession of your positive state of mind.”

Where was the Emmy nomination for THAT song? Well, I’m just glad that the recent muppet movie song “Man or Muppet” got an Academy Award nomination for Best Song at this year’s Oscar celebration. Congratulations to all of my muppet friends. 🙂

So, back to fundraising . . . I believe Dr. Teeth has some very important advice for fundraising volunteers when it comes to:

Preparing yourself mentally for “The Ask” because 1-out-of-4 solicitations will end in a “NO”.
Preparing yourself to be politely test the question: “What does NO really mean?”

As for mental preparation, I am always amazed at how few non-profit organizations put together a well-run annual campaign kickoff event. Too often, I’ve attended a kickoff meeting that feel 75 percent social, 20 percent administrative (e.g. prospect assignment) and five percent training focused. My advice to fundraising professionals is to turn this approach on its head and use the kickoff meeting to engage, train and prepare volunteer solicitors for the following:

how to make a technically proficient face-to-face solicitation,
how to prepare for the solicitation meeting both mentally and physically, and
how to deal with all possibilities including YES, NO, and MAYBE.

I’ve seen nothing more damaging that ill-prepared volunteers running out the door with pledge cards in hand only to run into a buzz saw of NOs. Believe me when I tell you that the first report meeting is ugly and demoralized volunteers are hard to re-motivate. So, using the training portion of the kickoff meeting to prepare volunteers on how to handle NO and maintain a mission-focused positive mental attitude is critical.

As for Dr. Teeth’s idea of “not taking NO for an answer,” I believe this also goes back to your campaign kickoff meeting. I think it is important to train to volunteer solicitors to underestand that NO simply means “not now”. Once this is understood, let’s teach volunteers to not tuck their tails and run once a prospective donors says NO. With a little training, volunteers will be able to casually engage prospects in a conversation that will net valuable information such as:

Is this just a bad time to be asking for a contribution? Is there a better time?
Is the NO a result of something the agency did (or didn’t do)? If so, what is it and what can be done to fix the situation?
If there is a willingness to donate but simply no money to give, then is the prospect open to supporting the agency with other gifts of time or talent?

What does your annual campaign kickoff meeting look like? What types of trainings do you provide fundraising volunteers so they feel comfortable using some of Dr. Teeth’s sound advice? How do you capture this information in your donor database? Do you use contact reports? If so, what do they look like and how do you inspire your volunteers to fill them out?

Please use the comment box below and weigh-in with your experiences and ideas. We can call learn from each other. 😉

Here’s to your health!

It’s Hip to Be Square: Accepting Donations From Your Phone

January 23, 2012 DonorDreams Fundraising, Mondays with Marissa, resource development, technology

The other day, I received an email from the non-profit where my mom works about the auction items that would be available at their annual special event. Having worked behind the scenes at similar events in the past, one thing came to mind — payment processing. In my experience, the task requires a lot of attention to detail in order to make sure things run smoothly.

This reminded me about a podcast I listened to that mentioned how stores are now able to process payments right from their smart phones using a service called Square. Square provides a free card reader that can be attached to any IOS or Android device (through the headphone jack) to process payments from anywhere. Think about how this flexibility could revolutionize a special event or even the everyday business of a non-profit. Let’s take a look and if it’s the right fit for your organization.

The Pros:

Free Card Reader – I mean, free is good for anyone, even better if you work for a non-profit. Not only is the adapter free, but the app associated with it is free as well.
Familiar Format – Most people have a smart device of some sort and are used to using apps everyday. This prior knowledge can come in handy when it comes to training people to use Square. Furthermore, this familiarity can expand the pool of people who could use a Square card reader to accept donations.
Next Day Direct Deposit – It won’t take long to see those donations show up in the linked bank account. Money is only good, when it’s available, right? Most times after an event, it can take a few days of coordination to get credit card payments, checks and cash in order to take it to the bank. Using Square at least cuts out some of that process.
Secure – Square constantly monitors what is happening across it’s network to look for signs of fraud. Also, Square makes sure that all information in encrypted.
All Major Cards are Accepted – No need to limit payments only to Visa and Master Card. Amex and Discover are welcome here, too.
Data can be Exported – Accurate financial documents are important to the running of any business. Square allows you to have access to that data and you can run your own reports.
Allows for Multiple Users – Each device can be linked to one account so that there can be multiple people at an event. Also, if staff or volunteers have a Square reader and their phone with them out in the community while talking about your mission, a donation by a newly inspired donor can be taken right away without any waiting.
Receipts – can be emailed to donors or printed on site when using an iPad.
No signature needed for payments under $25 – In a day an age where people are donating (albeit in smaller amounts), this feature speeds up the donation process.

The Cons:

Not everyone has a smart device – sad, but true. Even in 2012.
2.75% Transaction Fee – if a $100 donation is collected, your organization will only receive $97.25 after Square collects it’s fee. Granted, you are still receiving most of the money. The fee is collected per transaction and is the same no matter which card is used to process the transaction.
Customer/Donor information is not saved – while this is for the privacy of the customer, most non-profits see this information as essential for their donor database records. One suggestion to overcome this is to give each person a unique number that is attached to their name and contact information. Each transaction made with Square can be edited before it is processed so that this number can be attached.
No Offline Payments – If your event is somewhere with no cell phone data coverage or wifi available, you will have move to your Plan B option because payments cannot be collected and uploaded later.
One Time Payments Only – if you had a donor that wanted to donate $10 a month, this could not be accomplished with Square.

I must admit . . . I am in favor of using Square for the collection of donations (besides, it’s hip to be square) . . . but in the interest of full disclosure, I should admit that I have never used the system myself nor do I have any affiliation with Square. Truth be told, I just wanted to share the system with you because I’ve seen other non-profits struggle with credit card processing (which is never a pretty sight especially at an event with donors rushing to checkout and get home) and I thought this might work for you.

Incorporating technology can make the donation experience easier and more streamlined for the donor. After all, if the donation process is easy and enjoyable, I suspect donors will be more likely will donate again! Right?

Is Square a solution you might be interested in? What has your organization done to streamline its onsite payment procedures? Please share your thoughts using the comment section below!

Seriously?!? Why not just mug prospective donors?

January 20, 2012 DonorDreams Donor-centered fundraising, Fundraising

I have been simmering over an email I received a few weeks ago from a dear friend. In that email, she shared with me an invitation that had been sent to her by a non-profit organization to whom she had never contributed a penny.

For all of you “relationship-based” fundraising professionals, I encourage you to take a deep breath and have a seat. (Note: I’ve changed the names to protect the innocent and avoid embarrassment). Here is the gist of what the invitation said:

Please join us for a cocktail reception
to kick-off our annual campaign
<<Date>> & <<Time>>
Hosted By Mr. & Mrs. Smith
<<home address>>
A minimum donation of $500 is requested

If you wish to learn more about the agency,
please call the Executive Director.

After reading this email invitation at least 10 times, I was speechless; however, I think this YouTube video best captures how I feel.

Seriously?!?

Here is someone who is NOT a donor. The invitation was an email blast and not personal. There was no prospect cultivation done in advance. When you take these facts together with the “minimum contribution” request, I am left speechless. AND . . . just when you think it couldn’t get any worse, the invitee is told to call the executive director if they have programmatic or mission-based questions. WOW!

I apologize for my tone this morning, but things like this offend me because prospects and donors deserve better. Philanthropy is not about the “grab-and-run” fundraising approach . . . it is about connecting with people, discovering their dreams, and helping them put their charitable giving to work in a way that will help their dreams become reality.

I am left wondering if the volunteers who emailed this invitation were “taught” to ask in this manner. I know that it sounds crazy, but don’t human being typically do what they observe? If this is the case, then the non-profit agency who initially solicited these fundraising volunteers must be guilty of not possessing a “culture of philanthropy”.

This, of course, begs the question: “How can you change an organizations culture and instill a sense of philanthropy into it?” Thankfully, the fundraising sector has an awesome organization in The Association of Fundraising Professionals. I came across this awesome 2011 article titled “Building a Culture of Philanthropy” that speaks to this issue.

So many non-profit organizations are talking about “donor-centered fundraising” nowadays, but what is your agency actually doing to put these principles in place? Please use the comment box below to comment on this organization’s fundraising approach or how you ensure your fundraising volunteers don’t do things like this. We can all learn from each other.

Seriously . . . Here’s to your health!