Archive for ‘Current Events’

December 27, 2013

Top Ten Posts of 2013, and Other Reflections

As 2013 draws to a close, I thought it would be interesting to look back briefly before we march into the New Year.

Happy New Year!

Happy New Year!

For starters, let’s look at which of my posts have been the top ten most read in the past year:

1. Can a Nonprofit Return a Donor’s Gift?

2. 6 Ways to Raise More Money without New Donors!

3. 5 Words or Phrases that Can Cause Donors to Cringe

4. 5 Things Never to Do in Your Phone Fundraising Calls

5. 5 Tips for Giving Donors What They Really Want

6. How NOT to Run a Capital Campaign

7. Prospect Research v. Invasion of Privacy

8. 7 Magical Words to Earn Respect, Trust, and Appreciation

9. Do You Make Any of These Mistakes When Speaking with Donors?

10. Do Not Let This Happen to Your Organization

I invite you to read any posts you might have missed by clicking on the title above. If you’ve read them all, thank you for being a committed reader.

I’m honored to know that I have readers from around the world. (I love the Internet!) While I appreciate all of my readers, I thought it would be interesting to look, beyond the United States, to see my top ten countries for readership:

1. Canada

2. United Kingdom

3. Australia

4. India

5. Netherlands

6. Philippines

7. France

8. Germany

9. New Zealand

10. Italy

Overall, Michael Rosen Says…, has seen a 20 percent increase in readership in 2013 compared with 2012. I thank everyone who made that possible by dropping by to read my posts. I especially want to thank those who have subscribed.

When you subscribe for free in the column at the right, you’ll receive email notices of new posts, including “Special Reports” which are not otherwise widely publicized. Beginning in 2014, subscribers will also receive exclusive bonus content and a limited number of subscriber-only special offers directly from me. So, if you’re not already a subscriber, sign-up now.

Just as I value all of my readers, I also greatly appreciate those who take the time to “Like” my posts, share my posts, Tweet my posts, re-blog my posts, and comment on my posts. In particular, I want to recognize the following people who have commented most often in 2013:

December 13, 2013

No Evidence of #GivingTuesday Success

I admit it. The news headlines about the second annual #GivingTuesday have been exuberant:

“Giving Tuesday Shows Robust Results”The Chronicle of Philanthropy 

“Growth in Online Giving Tuesday Numbers ‘Inspiring’”USA Today 

“Giving Tuesday Smashes Records, Spurs 90% Donation Spike”The Huffington Post 

#GivingTuesday 2013 Infographic by #GivingTuesdayThe good folks at #GivingTuesday even put together an infographic illustrating the day’s success. I’m sharing it in this post. 

There’s only one problem with all of the enthusiasm: There is not a single shred of hard evidence that #GivingTuesday is good for the entire nonprofit sector.

Fortunately, Forbes contributor Tom Watson is one member of the media not afraid to ask the big question: “Inside The #GivingTuesday Numbers: Will American Philanthropy Grow?” 

I share Watson’s healthy skepticism. Like him, I am not yet convinced that #GivingTuesday is a positive force for philanthropy although I certainly hope it is. While #GivingTuesday might have been effective for some individual charities, I wonder if it has been good for the entire nonprofit sector.

The fact that many more charities got involved with #GivingTuesday, compared with last year, does not necessarily mean anything. The fact that millions of people used social media to talk about #GivingTuesday does not necessarily mean anything. The fact that millions of dollars were raised on #GivingTuesday is equally meaningless, by itself.

Here are some questions about #GivingTuesday that the nonprofit sector should answer before rushing to congratulate itself:

December 5, 2013

Special Report: No Tax Reform Bill in 2013

[Publisher's Note: "Special Reports" are posted from time-to-time as a benefit for subscribers and frequent visitors to this blog. "Special Reports" are not widely promoted. To be notified of all new posts, including "Special Reports," please take a moment to subscribe in the right-hand column.]

 

A tax reform bill will not be introduced in the US Congress before the close of 2013, House Ways and Means Chairman Dave Camp (R-MI) indicated to The Hill.

US Capitol by Kevin Burkett via FlickrGiven that this is the first week of December and that House Republicans plan to leave Washington at the end of next week for the holiday break, the news is not surprising, even while important.

As soon as one month from now, the House could resume wrangling over a possible tax reform bill, according to Jason Lee, General Counsel for the Association of Fundraising Professionals. However, while the issue will be on the table in 2014, it will be a major challenge for Congress to move something as significant as a tax reform bill with the mid-term elections looming in November.

December 1, 2013

Two Surprising Philanthropists Inspire

In the USA, we recently celebrated the national holiday of Thanksgiving. In the spirit of the occasion, I want to express my gratitude to some of those who inspire me.

To begin, I thank you for visiting my blog site and reading my posts. If not for you, and thousands just like you around the world, I would be just a crazy guy talking to himself. Thank you for inspiring me to write, and for honoring me by reading my articles. If you’ve ever commented on a post, I also thank you for that; if you haven’t, I encourage you to feel free to do so in the future.

I also want to thank you for everything you do to help make the world a better place. Working in, with or for the nonprofit sector is noble work. You should take pride in that.

I also want to share my appreciation for the diverse philanthropic community around the globe that supplies the passion, ideas, volunteer resources, and funding that make the work of the nonprofit sector possible. Philanthropists come in all shapes and sizes. Their interests and abilities vary. The one thing they mostly have in common is heart.

Consider these two very different examples of recent philanthropy:

Shoichi Kondoh presents donation for Typhoon Yolanda relief at the Philippine Embassy in Tokyo.

Shoichi Kondoh presents donation for Typhoon Yolanda relief at the Philippine Embassy in Tokyo.

Typhoon Yolanda recently struck Asia. The storm ravaged the Philippines first and hardest. The death toll is still unclear, and hundreds of thousands have been made homeless. In Japan, six-year-old Shoichi Kondoh saw the news coverage of Typhoon Yolanda on television. The images moved him. So, this little philanthropist emptied his piggybank of his childhood savings, and asked his mother to take him to the Embassy of the Philippines. In an Embassy conference room, with his proud mother by his side, Kondoh formally handed Consul Bryan Dexter Lao an envelope containing JPY 5,000 (approximately $50 USD).

On the other side of the Pacific Ocean, people who knew Jack MacDonald knew him as a frugal man. He had holes in his clothes, took buses instead of taxis, and lived modestly.

November 15, 2013

Prospect Research v. Invasion of Privacy

Edward Snowden became a worldwide “celebrity” when he leaked classified information about the US National Security Agency’s spying programs.

In the process, Snowden’s revelations have fueled discussions around the globe about privacy and access to information.

The Economist recently published a chart by the Boston Consulting Group that looks at how people around the world feel about the privacy of different types of information:

Privacy - The Economist 1113  

As you can see from the above chart, people around the world, particularly in the West, value their privacy. For example, the vast majority of Americans consider financial data and information about children to be “moderately or very private.”

That might explain why alumni from New York’s prestigious Dalton School were upset when volunteer solicitors were given information about the children of fundraising prospects. Specifically, solicitors were told about the children of prospects who had applied for admission to the School but who were rejected.

An alumna who had previously donated to the School described the situation to The New York Times as “horrible.” That’s the last thing you want someone to feel about your development program. It’s the last thing you want someone to say about your organization to a reporter.

The head of Dalton issued a public apology and a promise to do better.

It’s easy to understand the tension that exists between nonprofit organizations and their donor prospects. Organizations want to gather as much useful information as possible, and they want their professional and volunteer solicitors to know a great deal about the people they will approach in order to maximize success. However, this posture is often at odds with prospects who want and expect what they consider their personal information to remain private.

Charities face two issues when it comes to prospect research and privacy:

October 11, 2013

The Power of Eye Contact: A Myth?

[Publisher's Note: Michael J. Rosen, CFRE will be interviewed by CausePlanet in a free webinar about his award-winning book, Donor-Centered Planned Gift Marketing. Learn more and register for the October 17 program by clicking HERE. If you need a speaker or trainer, contact Rosen today.]

.

We all have heard that it’s not just what you say, but how you say it that matters. Now, new research sheds some surprising light on the subject. 

In the past, researchers have proven that body language is important. We’ve been told to stand-up straight. Don’t slouch while sitting. Don’t point. Shake hands firmly. Look people straight in the eyes, assuming it’s culturally appropriate given the context.

However, a new article by Susan Adams, in Forbes, comes with a surprising headline: “The Power of Eye Contact — It’s a Myth.” The article begins:

Most of us think that when we want to make a point, we should look the other person in the eye. Spouses, bosses, car salesmen, politicians, all use a direct gaze when they’re trying to convince an audience of many or one that their position is the most valid. Now it turns out that they should probably cast their glance in a different direction.”

Adams continues:

In a new paper just published in the journal Psychological Science, Minson and Chen tested the proposition that eye contact can win over people who disagree with the speaker. In two different studies (conducted at the University of Freiburg where Chen was doing her post-doctoral work), their data show that people respond more favorably to opposing arguments when the speaker looks at an angle to the recipient or focuses his eyes on his counterpart’s mouth instead of his eyes.”

Based on the Forbes article and even the study abstract itself, one might believe that development professionals should minimize eye contact with prospective donors when meeting face-to-face, at least during the ask. After all, the researchers state:

These findings suggest that efforts at increasing eye contact may be counterproductive across a variety of persuasion contexts.”

In other words, if you’re trying to persuade someone to make a donation, increasing eye contact can actually hurt your effort, the research suggests.

Eye on Money by peasap via FlickrThe study is certainly provocative given that it runs counter to conventional wisdom and other studies on the subject of eye contact. However, should we take the study seriously? When in situations where we are trying to persuade someone, should we do as Adams suggests and just let our “eyes wander”?

Well, before you automatically accept the research findings, consider these issues:

● The research samples were small involving just 20 students in the first study and 42 in the second.

● The research sample was culturally biased as it only involved college students.

● The research sample was age biased as it only involved college-age students.

● The research only involved the actions of the message recipients, not the messenger. In other words, the researchers considered where the message recipients were looking and not where the messenger was looking.

● The researchers instructed the study participants on where they could look, thereby possibly introducing bias.

● The research involved test subjects “interacting” with videotaped presenters rather than live speakers.

For me to break from conventional wisdom normally requires compelling evidence. While the Minson and Chen research is interesting and provocative, I find it sufficiently problematic to warrant further research.

On the other hand, I won’t completely discount the research findings.

October 8, 2013

Survey Respondents Overwhelmingly Express Concern over Government Shutdown

The vast majority of nonprofit professionals (63 percent) responding to an unscientific Michael Rosen Says… survey say that they expect the US government partial shutdown will negatively affect their nonprofit organization or they are concerned it might.

Worry by spoo0ky via FlickrThe shutdown affects nonprofits in a variety of ways. Organizations that rely on government grants have seen those grant payments delayed or withheld. Organizations that do government contract work are seeing payments delayed. Organizations that assist individuals in need are seeing an increased demand for their services.

In addition to those negative effects, 28 percent of survey respondents expect the government’s partial shutdown will result in less philanthropic support this year.

Interestingly, 67 percent of survey respondents expect that the shutdown will hurt the nation’s economy. Because overall philanthropy closely correlates to the country’s Gross Domestic Product, at a rate of approximately two percent, we can expect overall philanthropy to be negatively affected if the shutdown slows the already weak economy.

October 4, 2013

New Pew Report Sheds Light on Tax Deductions and Philanthropy

[Publisher's Note: Michael J. Rosen, CFRE will be interviewed by CausePlanet in a free webinar about his award-winning book, Donor-Centered Planned Gift Marketing. Learn more and register for the October 17 program by clicking HERE. If you need a speaker or trainer, contact Rosen today.]

-

A new report issued by the Pew Charitable Trusts provides valuable insights into the effect that tax deductions and credits have on charitable giving. The report comes at a critical time as federal and state governments continue to look for additional sources of revenue including cuts to charitable-giving tax deductions.

The Pew report, written by Elaine S. Povich, looks at the impact of tinkering with tax write-offs for charitable giving in a number of states including Kansas, Michigan, Missouri, New York, North Carolina, and Vermont. The report nicely summarizes the impact of tax policy on philanthropy:

Tax incentives for charitable giving directly affect donations, particularly from high-income donors, according to Jon Bakija, an economics professor at Williams College. ‘Tax incentives for charitable donations in the US succeed in causing donations to increase, probably by about as much or more than they cost in terms of reduced tax revenue,’ he wrote in a paper published recently by the journal Social Research.”

Bakija went on to write:

This strengthens the case for the tax subsidies for donations.”

In an illuminating case study, the Pew report looks at what happened in Hawaii when the state government imposed a cap on the charitable giving tax deduction. According to Mallory Fujitani,Money Grab by Steve Wampler Photography via Flickr of the Hawaii Department of Taxation, the state expected the move to generate about $12 million to the state treasury. Unfortunately, the move cost charities $50 million to $60 million in lost donations, according to Tim Delaney, President and CEO of the National Council of Nonprofits.

In other words, Hawaii found that for every new dollar of tax revenue it generated from the cap on the charitable giving deduction, charities lost five dollars!

David L. Thompson, Vice President of Public Policy at the National Council of Nonprofits, summarized the experience of the various states that have tinkered with the charitable giving deduction:

What we learned in the states is that the charitable deduction is not just a nice thing for taxpayers, it’s vital to the communities. All politicians from across the political spectrum have come to the same conclusion that we are hurting our communities by discouraging giving to charities.”

Given the crystal clear Pew report, the experiences of various states, and the findings of academic research studies, a number of important questions come to mind:

October 2, 2013

Special Report: Live Interview with Author of Donor-Centered Planned Gift Marketing

On Thursday, Oct. 17, 2013, at noon (EDT), Denise McMahan will interview me about my award-winning book, Donor-Centered Planned Gift Marketing. This is a free webinar presented by CausePlanet. To learn more and to register, click here.

McMahan, the Founder and Publisher of CausePlanet, will focus the interview on some of the book’s highlights, including:Book Cover: "Donor-Centered Planned Gift Marketing"

  • Identify who makes planned gifts and assess your organization’s potential for planned giving.
  • Understand planned gift donors’ motivations and how these fuel the author’s recommended approaches.
  • Explore how to educate and cultivate planned gift prospects and professional advisors.
  • Engage in effective asks and stewardship practices.

During the lively discussion, I will also share new insights based on the latest research.

Do you want to start a planned giving program? Do you want to reinvigorate an existing planned giving program? Do you want to maximize your planned giving results? If you answered “Yes” to any of those questions, then register today for this free webinar about the book that earned the prestigious AFP/Skystone Partners Prize for Research in Fundraising and Philanthropy.

Here are some reviews of Donor-Centered Planned Gift Marketing:

October 1, 2013

Special Report: Doomsday?

On Oct. 1, 2013, the US federal government shutdown all non-essential operations. This is the first government shutdown in 17 years. It’s uncertain how long this shutdown will last. The failure by Democrats and Republicans in Washington to agree on a budget bill triggered the current shutdown.

At this point, we cannot really know how the impasse in Washington will affect the nonprofit sector, the nation, or the world. However, one thing is certain: The longer the shutdown continues, the greater the risks.

So that we all can get a better understanding of the situation, please take a moment to answer the following five poll questions:

read more »

Follow

Get every new post delivered to your Inbox.

Join 720 other followers

%d bloggers like this: