solicitation – Page 7 – The Healthy Non-Profit

Non-profits can learn a lot from the Chicago Cubs

January 17, 2012 DonorDreams Fundraising

I attended the Chicago Cubs Convention this last weekend with my partner, father, brother and nephew. This is the 27th annual convention, and I think this is the fourth or fifth time I’ve attended with my family. As many of you know, I look for signs of philanthropy everywhere I go in life. It is one of my quirky charms. 🙂

It would’ve been easy to write about the $4 million that the Chicago Cubs have raised for charities with the proceeds from this convention, but I decided to look a little deeper this year. Not surprisingly, I found three things that the Cubs organization does at its annual convention that non-profit and fundraising professionals can take away from the experience.

A Sense of Accountability
Everyone in America knows the Chicago Cubs haven’t won a World Series in more than 100 years. This is the equivalent of a non-profit organization being unable to demonstrate community impact or program outcomes to its donors. To some people, it is surprising that the Cubs have any fans remaining with such an amazing inability to produce any return on investment (ROI).

However, the convention does something interesting for the Cubs organization. It gives fans the sensation they can hold the team “accountable”. There are sessions with ownership , management, coaches, and players. During those sessions, fans are permitted to ask questions and make comments from the floor.

While it is important for non-profit agencies to demonstrate ROI and impact, it looks like letting donors “hold you accountable” can go a long way when your ability to generate outcomes might still be a few years off.

It is all about the upgrade
It shouldn’t surprise you that the cost for last weekend was high (e.g. convention passes, hotel, and food). Tack onto this pricetag the cost of attending a few Cubs games throughout the summer, and it becomes apparent that being a Cubs fan isn’t cheap. However, this didn’t stop the Cubs from gently trying to up-sell me at every turn.

Have I considered attending spring training with the team in Arizona? What about signing up for a tour of Wrigley Field? Will I give some thoughtful consideration to upgrading from a fan who just attends a few games every year to a 9-Game Pack ticket holder?

I’ve met too many non-profit organizations who are afraid of asking their donors for more. The excuse usually given is that they’re afraid of “offending” those donors. Well, I can honestly say that I was never once offended by the Chicago Cubs and their vendors. I highly doubt most donors would either. However, I suspect that the key to not offending anyone is in how you go about doing it. In each of the previous up-sell examples, the Cubs had a very well-defined “case for support” (aka sales pitch).

If non-profit organizations invested more time in crafting solid case statements focused on why special event donors should also become annual campaign donors, I suspect a lot more money would be raised.

Becoming part of the family
At one point during the weekend, I had to giggle to myself because I paid the Cubs a lot of money for the right to be their captive all weekend and permitted them to market to me. While this realization should make me feel stupid (because they should be paying me for that privilege and not vice versa), I really don’t feel that way. As a matter of fact, I feel lucky and a little privileged to have been part of the experience.

The Cubs made every one of their guests feel special and a part of their family. Everyone likes to “belong” to something (e.g. church, alumni associations, service organizations, etc), and the Cubs have created an experience that nurtures this feeling, which in the end helps them make a lot of money.

Non-profit organizations who put their minds to it can turn their marketing materials and donor recognition societies into a similar kind of experience for their donors. I suspect that those who do so will see their donor loyalty rates skyrocket.

In closing
As a lifelong Cubs fan, all I have to say is that I believe a World Series title is waiting for us right around the corner in spite of the fact that the Cubs have embarked on a major “team re-building project” this year. I guess hope does spring eternal, which is a good thing for some non-profit organizations.

Please use the comment box below to weigh-in with your thoughts. What opportunities do your donors have to hold your agency accountable? What are you doing to instill a sense of family among your donors? What are you doing to upgrade donors gifts and giving opportunities?

Here’s to your health!

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

The Secrets to Their Success?

January 5, 2012 DonorDreams Fundraising, nonprofit

Yesterday was a fun day for me because I managed to get out of my home office and spend some time in the field trying to sell work. So, I hopped in my car and visited one resource development director and two executive directors. During the long drive home, I reflected on each of those three visits and came to the same conclusion:

In spite of sluggish economic growth,
there are some non-profit organizations
that are doing very well!

Here is a quick run down of what I saw in the field:

A fundraising professional with approximately 6-months under her belt at a new agency, planned and executed a $500,000 direct mail campaign in the fourth quarter of 2011.
An executive director who essentially closed a significant budget deficit in a matter of just a few months.
An executive director who quarterbacked a fairly reluctant board through the planning and implementation of a new annual campaign (developing a new revenue stream for their agency that is approaching 10-percent of their overall revenue budget).
A CEO whose non-profit organization has experienced a: 38-percent increase in individual giving, 80-percent increase in foundation contributions, and 222-percent increase in corporate sponsorships . . . all over the last two years. In fact, just last year this agency signed up 250 NEW donors.

I thought this economy was supposed to be big, bad and ugly for non-profit organizations? So, being the curious person that I am, I asked lots of questions and here are some of the things I discovered that I believe are “The Secrets to Their Success”:

Investments in marketing — aggressive pursuit of public service announcements using print, radio and television helped two of these agencies generate amazing awareness and mission-focus throughout the communities they serve.
Investments in fundraising staff — all three of these organizations had either hired more fundraising professionals or were talking about doing so. It reminded me of something my for-profit friends are constantly saying: “It takes money to make money.”
Engaging prospects and donors — all three of these organizations haven’t been shy about calling lots and lots of people (both existing donors and lots of new folks who have never given them a penny). The strategy was simple . . . be aggressive . . . get as many people on-site to see what their agency does . . . don’t ask for money right away, but ask them shortly thereafter (a few weeks to a few months later).
Re-developing the board — two of the three organizations have been diligently working on identifying, cultivating and recruiting new board volunteers who are capable of writing nice checks, are willing to introduce their friends to the agency’s mission, and aren’t afraid to ask others to make a contribution.

While the last 4-years have been brutal for many non-profit organizations and some recent survey research shows that many more are on the brink of insolvency in 2012, I believe that good executive leadership with a bullish and aggressive approach to resource development and non-profit management is “the cure for all that ails you”.

Here are a few bloggers who I like pertaining to marketing, hiring fundraising staff, cultivation & stewardship, and board development:

Katya’s Non-Profit Marking Blog is a genius and I’ve followed her work for years
Mission Connected blog hits the nail on the head when it comes to hiring fundraising professionals
The Fundraising Authority blog outlines a very nice systemic approach to supersizing your cultivation efforts
Larry Checco at about.com provides some great board development tips you might like

As you look around your community, has your non-profit organization performed better than the others over the last few years of recession and sluggish recovery? If so, please use the comment box below and share one or two of your secrets. Remember . . . we can all learn from each other.

Here’s to your health!

What can fundraising professionals learn from the Iowa Caucus?

January 4, 2012 DonorDreams Fundraising

Welcome to the 2012 Presidential campaign season! I watched hours of news coverage of the Iowa Caucus and my eyes are about to melt out of my head. However, I walked away from the coverage with what I think is a very clear lesson to be learned for fundraising professionals.

The Obama campaign has been chugging along and exceeding its fundraising for about a year now. They have done this in the middle of a soft economy, which has seemingly posed problems for many non-profit organizations. Many political observers believe that Obama will raise a record-setting $1 billion for his re-election bid.

While Team Obama has continued to raise money, the same can’t be said for the Republican field. If you add up all of the fundraising efforts from all of the current Republican candidates, it still doesn’t come close to Obama’s totals. Is this because Obama is that much better at fundraising? Or is it because Obama is the clear choice of the political donor base?

The current political thinking is that once Republicans settle on their general election candidate, donors will line-up and both candidates’ war chests will equalize. It might be possible that both the Democratic and Republican candidates will have in the neighborhood of $1 billion EACH to run their campaigns.

So, you’re probably asking yourself: “Where is the lesson for non-profit fundraising professionals?”

I think there is a valuable lesson to be learned about your non-profit organization’s case for support.

I believe many Republican donors are sitting on the sidelines because the case for support isn’t focused. There are too many different reasons to donate to too many candidates.

Mitt Romney’s case for support involves “electability” and business experience.
Ron Paul’s case for support focuses on libertarian principles and shrinking the size of government.
Rick Santorum’s case for support centers around traditional values and national security.

Eeeeeeek! If I were a Republican donor, I’d probably take a wait-and-see approach, too.

In these tough economic times, non-profit organizations would do themselves a favor if they spent the first few weeks of January 2012 re-focusing their case for support documents.

Donors like clarity. Donors like winners.

When is the last time your organization revisited its case for support documents? How do you ensure your case is aligned with your donor base? What have you found to be the most difficult part of developing your case? Have you ever considered that your written case for support might actually be costing you money? Please use the comment box below to weigh-in with your thoughts and opinions. We can all learn from each other.

Here’s to your health!

Introducing Mondays with Marissa

January 2, 2012 DonorDreams Mondays with Marissa, technology

Happy New Year! I hope that your year-end celebrations were fun, and you are ready to tackle resolutions in the new year. Speaking of resolutions, I made a number of them, and a few of them had to do with the DonorDreams blog.

Specifically, it is easy to see how technology is dramatically changing the world around us, which is why I reached out to my friend and fellow blogger — Marissa Garza — and asked her to address technology issues every Monday. (A picture of Marissa is posted to the right on your screen . . . Hi Marissa! 🙂 )

Marissa graduated from the University of Illinois with a BA in Education. She has taught in the classroom, worked for Kaplan, and is one of the most curious self-taught students I’ve ever met when it comes to technology. In fact, every time we get together she is telling me about a some new technological piece of magic.

When I needed help customizing this blog, I turned to Marissa. When I needed feedback on the The Healthy Non-Profit’s website, I turned to Marissa. When I needed to test my webcam with regards to Skype, GoToMeeting, GoToWebinar, and Google+, I turned to Marissa. When a former co-worker asked me for tips on how to get her blog up and running, I sent her to Marissa.

If you haven’t figured out that Marissa is my “go to gal” when it comes to technology, then let me just say for the record . . . she is super smart and someone I think of very highly. I am thrilled to death that she has agreed to become part of the DonorDreams family, and I predict you will fall in love with her.

The inspiration behind “Mondays with Marissa” came from the following two places:

One of National Public Radio’s (NPR) popular shows is Talk of the Nation with Neal Conan, and on Fridays Neal turns his show over to Ira Flatow who hosts a show branded “Talk of the Nation: Science Friday“. This approach to specialized content inspired me to add a new voice to DonorDreams one day a week.
Perhaps, more central to my decision to ask Marissa to join the team is how often non-profit friends ask me about technology related issues and those questions have been very broad including: websites, social media, email marketing, blogs, ePhilanthropy, e-commerce, donor databases, CRM, etc.

I’ve asked Marissa to write about all of these topics and more. As she does, I will use the comment section of this blog to weigh-in with my thoughts on how these technology topics apply to non-profit management, marketing, board development, programming/operations, and resource development (including prospect cultivation, donor solicitation, donor stewardship, etc).

I don’t know about you, but I am very excited about 2012! I am very optimistic and excited to get started.

Please use the comment box below and weigh-in with a few technology topics that you’d like Marissa to write about over the next few Mondays. Your suggestions are very much appreciated. Please also help me welcome Marissa to our family.

Happy New Year and here’s to your health!

The Final 2012 Non-Profit Prediction

December 30, 2011 DonorDreams Fundraising

This entire week we’ve been looking back upon 2011 for major trends, and then looking forward to 2012 with an eye towards making a few predictions. Today’s post speaks to a fundraising prediction that has been true every year since the birth of our country more than 235 years ago:

If you ask people to donate, then you will raise lots of money.

A few days after Christmas, a friend sent me an email with the following Benjamin Franklin quote from Benjamin Franklin: The Autobiography and Other Writings:

“It was about this time that another projector, the Rev Gilbert Tennent, came to me with a request that I would assist him in procuring a subscription for erecting a new meeting-house. It was to be for the use of a congregation he had gathered among the Presbyterians, who were originally disciples of Mr. Whitehead. Unwilling to make myself disagreeable to my fellow-citizens by too frequently soliciting their contributions, I absolutely refus’d. He then desired I would furnish him with a list of the names of persons I knew by experience to be generous and public-spirited. I thought it would be unbecoming in me, after their kind compliance to me solicitations, to mark them out to be worried by other beggars, and therefore refus’d also to give such a list. He then desir’d I would at least give him my advice. “That I would readily do,” said I; “and in the first place, I advise you to apply to all those whom you know will give something; next, to those whom you are uncertain whether they will give anything or not, and show them the list of those who have given; and, lastly, do not neglect those who you are sure will give nothing, for in some of them you may be mistaken.” He laugh’d and thanked me, and said he would take my advice. He did so, for he ask’d of everybody, and he obtained a much larger sum than he expected, with which he erected the capacious and very elegant meeting-house that stands on Arch-street.”

Ben Franklin is considered by most people to be the “Father of American Philanthropy”. His advice is timeless and perfect for those non-profit executive directors and fundraising professionals who are stewing over what their 2012 new years resolution should be:

Don’t say “NO” for anyone.

Ask everyone if they want to support your mission
and invest in the outcomes and impact your agency produces.

Ask! Ask! Ask!

If you do this, then my 2012 prediction for you is that regardless of the economy and any other external influences your non-profit organization will thrive and you’ll exceed all of your fundraising goals.

Speaking of non-profit new years resolutions, do you have any? If so, please use the comment box below and share your thoughts because we can inspire each other.

Here’s to your health!

Donors are friends and NOT food!

December 15, 2011 DonorDreams Fundraising

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Here’s to your health!

Online giving: Evolve or else?!?

December 14, 2011 DonorDreams Fundraising

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

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

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

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

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

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

I personally find middle ground between these two camps:

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

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

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

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

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

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

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

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

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

Here’s to your health!

Whoa! Special events and individual giving

December 12, 2011 DonorDreams Fundraising, Planning

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

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

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

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

Marlin: “What are you talking about?”

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

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

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

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

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

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

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

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

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

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

Here’s to your health!

Sir Isaac Newton was right about nonprofit organizations

December 9, 2011 DonorDreams Fundraising

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Please use the comment box below to weigh-in.

Here’s to your health!

Lessons from an e-video that will make you cry

December 8, 2011 DonorDreams Fundraising

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

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

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

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

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

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

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

Here’s to your health!