A Donor Offers You $5,000. Now What?

Congratulations! You’ve done everything right, so far. As a result, a prospect has offered to write a $5,000 check to your nonprofit organization. She only has one question: “Who should I make the check out to?”

So, what should you do next?:

A. Let loose with an enthusiastic, sincere, “Whoohoo!”

B. Thank the donor and tell her the proper name of the organization for the check.

C. Tell the donor the information is on your organization’s website.

D. Thank the donor, tell her the proper name of the organization for the check, and then say, “And, let me just ask, if I may, do you have any appreciated stock?”

If you’re like most development professionals, you probably answered “B.”

While that’s not exactly a wrong answer, there is a better one that will be more helpful for the donor and for your charity: “D.”

Sadly, many development professionals wrongfully assume that all donors of means know, at least, the basics of financial planning and tax avoidance. However, that’s simply not the case.

Sometime ago, I served on the board of a nonprofit organization. At one of the charity’s events that I attended, a modest donor came over to me and expressed an interest in donating $5,000. She simply needed to know the organization’s official name so she could put it on the check.

As in the above scenario, after thanking her and providing the information, I asked if she had any appreciated stock.

Puzzled by my question, she replied, “Yes, I do. Why do you ask?”

Why “Ask”?

At Michael Rosen Says…, I listen to my readers. And, I even sometimes take requests.

Recently, I received an email from Anton Wishik, a professional editor who recently transitioned to the development world. I thank him for the message. He wanted to know why I insist on using the word “ask” as a noun.

The inquiry caught my attention for a number reasons:

1. As a former newspaper editor, the proper use of language continues to matter to me.

2. According to the good folks at Merriam-Webster, the word “ask” is indeed a verb, not a noun. So, Mr. Wishik has a valid point.

3. Mr. Wishik’s inquiry gives me the chance to write about one of my favorite topics: The “ask.” (Ooops, there I go again.)

With his permission, here is the email I received from Mr. Wishik:

As a longtime editor who just recently started working in the planned giving industry, I cringe at the use of the word ‘ask’ as a noun, which I had never seen/heard before. So do many other writing professionals; here’s one comment made at Merriam-Webster’s site: Marianna Zhabokritsky · Court Reporter at Ministry of the Attorney General (Ontario), ‘So ‘ask’ is now being used as a noun? ….  Please tell me that it is still considered to be an improper use of the English language! Highly irritating!’

I’m not a stuffy editor and I realize fully that the language is constantly evolving, with new words joining the lexicon almost daily. I’m not even saying that ‘ask’ shouldn’t officially join the language as a noun, much like ‘tell’ has come into wide usage as a noun from poker. Maybe the words ‘request,’ ‘query,’ or ‘solicitation’ don’t quite describe the action taken by a [Planned Giving Officer].

I see that you use ‘ask’ as a noun, and I’m sure you have an opinion on the subject — and thought you might want to blog about it!”

Well, as I’ve said, I’m happy to take requests from time to time.

To help me explore the issue of “ask” as a noun, I’ve enlisted my good friend Laura Fredricks, author of the best-selling book The Ask and the new e-book Winning Words for Raising Money. Here is what Laura had to say:

It is so common that when anyone wants anything in life…they ‘ask.’ We have grown up to ask, politely, for what we want. We don’t ‘request’ we ‘ask.’

Taking this to our professional fundraising level, we have taken the ‘ASK’ to a sophisticated level. Asking for money takes organization, structure, focus and follow up. Comparing our ‘ask’ to a ‘request,’ ‘ask’ wins hands down because it has more impact and meaning. A ‘request’ is fleeting but an ‘ask’ has presence and attention. The person being asked knows that an important decision is about to be made.”

I agree with Laura. When a development or sales professional puts forth an “ask,” he or she has already done a great deal of work. The prospect has been identified, educated and cultivated. The professional has evaluated the prospect’s situation and has determined the most appropriate thing to ask for.

For their part, prospects usually understand that the “ask” will likely lead to some type of negotiation rather than a simple yes/no conclusion.

The noun “ask” implies more than just the sentence making the “ask.” It refers to the sentence and everything that has led up to it.

In development, we ask for donations. So, it seems silly to me to use a word that is different from the verb when we need a noun. When we talk about the act of asking for a donation, we are talking about the “ask” not the “request” or the “query.”

What Can Your Nonprofit Learn from a Fortune Cookie?

Have you ever had a Thai fortune cookie?

Until recently, I never even knew they existed. Over the years, I’ve eaten more than my share of Chinese fortune cookies. However, I had never experienced the Thai variety.

Before anyone comments below, let me just say that I’m completely aware that Chinese fortune cookies are not really Chinese. They’re Chinese-American with possible Japanese roots. As for Thai fortune cookies, I have no idea where they were invented. But, they’re certainly tasty. They’re crunchy, flaky, light as air, toasted coconut goodness in the form of a little tube wrapped around a parchment-like fortune.

Anyway, my wife brought some Thai fortune cookies home one evening. While I was enjoying one of the cookies, I read the fortune it had contained:

Feeling gratitude without expressing it, is like wrapping a gift without giving it.” 

I immediately recognized that my cookie contained a valuable lesson for all nonprofit organizations. If we want to build strong relationships and secure passionate philanthropic support for our  organizations, we must thank our supporters and show gratitude.

I know you’re grateful when someone gives your organization money. But, beyond a simple thank you letter, do you do anything to show your gratitude?

Henri Frederic Amiel, a 19th century philosopher and poet, commented on the difference between thankfulness and gratitude:

Thankfulness is the beginning of gratitude. Gratitude is the completion of thankfulness. Thankfulness may consist merely of words. Gratitude is shown in acts.”

Some nonprofit organizations do a better job than others when it comes to expressing gratitude. Unfortunately, as a sector, we have a long way to go. We can and should be doing much more.

Do You Know How to Navigate in the Gray Area?

I recently published a post about how City of Hope plans to host a special fundraising event at odds with the organization’s mission. Most readers who responded to a poll at the end of the post felt the event is inappropriate with many even finding the event unethical.

The unscientific poll reveals that 49 percent of respondents feel that the “Let Them Eat Cake” event is “Inappropriate but Not Unethical,” 27 percent say the event is “Unethical & Inappropriate,” 13 percent say the event is a “Great Idea All Around,” and 10 percent believe the event is “Appropriate, Whether on Mission or Not.”

I’m comforted to know that over three-quarters of the respondents feel the same way as I do about the City of Hope event. However, some of the comments I’ve received on this blog site, on LinkedIn, and via email concern me a bit.

Perhaps the comments are a result of how I worded the post or phrased the poll responses. Some people seem to be under the impression that one’s actions are either purely ethical or purely unethical. In certain cases, those folks would be correct. Some actions are clearly ethical or not. Stealing money from Girl Scouts selling cookies (this really happened) is clearly unethical.

However, not all situations are black and white, ethical or unethical.

While the legality or illegality of an action is certainly a guideline, such as the theft incident I just described, something can be unethical without being illegal. Some situations in which we find ourselves put us into a gray area. The most challenging ethical dilemmas often involve situations that are not black and white. If they didn’t, they really wouldn’t be dilemmas, would they?

When considering the possible, multiple responses to a situation, we will often find some alternatives are more ethical while some are less ethical. In the case of City of Hope, the organization could choose to continue to host its “Let Them Eat Cake” event without any changes although many readers found it at odds with the nonprofit’s mission and, therefore, unethical. Alternatively, the organization could choose not do any event.

However, the organization has other options. For example, City of Hope can run its cake event but offer healthy alternatives and educational material as well. Or, the organization could host a different event like the Healthy Chef Competition in Vancouver, Canada that Rory Green, a development professional and blogger, told me about.

Again, some alternative courses of action are more ethical or less ethical than others. The objective should be to always choose the best option, make the best decision.

The most challenging ethical dilemmas of all, however, do not have any good, ethical solution. They’re no-win situations. Think of the novel/movie Sophie’s Choice or the “Kobayashi Maru” test from the film Star Trek II: The Wrath of Khan. Even in these no-win situations, we must cope as best as we can to be the best we can.

As those who work in the nonprofit sector, we must understand that our greatest asset is the trust of the public. The more trust people have in charities, the more likely they are to donate. And, with greater trust comes larger contributions.

Special Report: Do You Want to Talk with an Award-Winning Author?

Have you ever read a book and wished you could talk directly with the author? Did you ever want to pick the brain of the author to get additional helpful ideas? Have you had questions about the material that you desired to explore more deeply? Were you ever curious about the author’s view of the future? Did you ever wonder what parts of the book the author felt were most important? Did you ever want to let the author know which parts of the book you particularly liked or which parts you disagreed with? Have you ever wanted to know if the author had acquired valuable, new information since writing the book?

If you answered “Yes” to any of the above questions, I have a special opportunity that will interest you.

I (Michael J. Rosen, CFRE) will be interviewed on The Nonprofit Coach Radio Show on Tuesday, February 26, 2013 at 12:00 PM (EST).

I wrote the bestselling book Donor-Centered Planned Gift Marketing, for which I won the AFP/Skystone Prize for Research in Fundraising and Philanthropy. The book is on the official CFRE International Resource Reading List. I’ll be discussing the book with host Ted Hart, ACFRE. We’ll also look at the challenges and opportunities presented by recent changes in government policy.

During the program, listeners will have the opportunity to call in to ask questions. You can learn more about the broadcast and find the call-in number by clicking here.

I invite you to listen to the show live and to participate by calling in to the program. If you’re unable to listen to the live show, you will be able to stream it after the broadcast.

Listen with Your Eyes

When visiting prospects and donors, it is essential to listen carefully. You will want to learn about their philanthropic aspirations and legacy hopes. Listening to your prospect or donor rather than simply pitching your organization is a big part of what donor-centered fundraising is about.

For thousands of years, wise people have understood the value of effective listening. For example, Epictetus, the ancient Greek philosopher, said:

We have two ears and one mouth so that we can listen twice as much as we speak.”

Last week, I wrote about the importance of getting out and visiting prospects and donors (“Want to Know the Secret to Raising More Money in 2013?“). Now, I want to suggest that while we should certainly listen with our ears during those visits, we should also “listen” with our eyes.

Let me explain.

We often see without really perceiving. It’s one reason why criminologists tell us that eyewitness reports can be highly inaccurate. By paying attention to what we are seeing, we can act appropriately on the information we gather.

When meeting with a prospect or donor, listening with our eyes will allow us to:

1. Observe the other person’s body language and respond accordingly. For example, if a prospect has his arms folded across his chest, he’s probably not comfortable with the general subject, something you’ve said, or the environment. Observing this will allow you to take corrective action rather than simply just pushing ahead.

2. Look for clues in the surroundings. You can learn a great deal about an individual by noticing the personal items in her office or home. These clues can help you better understand the person’s interests. The surroundings (i.e.: furnishings, artwork, the home itself) may help you estimate the person’s giving potential. In addition, you’ll find that some items (i.e.: photos of children) make great and, sometimes, meaningful conversation starters.

When meeting with someone, you’re not just there to talk and hear. You’re there to see. So, be sure to use your ears and your eyes.

The best place to meet with a prospect or donor will usually be that person’s home. Generally, people will feel more comfortable in their own home than they would in your office. Sometimes, a donor or prospect may wish to meet at a restaurant. But, restaurants can be noisy, and having a private conversation can be awkward in a public setting.

Meeting in the home of a prospect or donor also has the benefit of giving you the opportunity to uncover clues that will help you to understand the person much better. As I wrote in my book, Donor-Centered Planned Gift Marketing:

If visiting in someone’s home, one can look for awards, books, and other items on display that can provide clues to how the individual engages with the community and what other organizations they might support. In addition, clues will be found that will help gauge the individual’s ability [to make a gift].”

Let me be clear. I’m not suggesting that you should snoop around someone’s house once you’re invited in. I’m simply suggesting that you should take-in what you see in plain sight:

Want to Know the Secret to Raising More Money in 2013?

Everyone wants to find the latest, greatest way to raise money. Everyone wants to raise more money. Fortunately, the secret way to raising more funds in 2013 is not complicated. It’s not expensive. It’s not revolutionary. It’s not even really a secret. But, it will work:

Get out from behind your desk more often.

I know you’re thinking, “That’s just common sense.” You’re right. However, at many nonprofit organizations, it’s not common practice. Consider this true story from my book, Donor-Centered Planned Gift Marketing:

During a seminar at an Association of Fundraising Professionals chapter conference, the director of development for a regional theater company asked a question: ‘Could I have some of our repertory actors cultivate our major donors?’

“The presenter initially thought this was a terrific idea. Theater donors often like to think of themselves as true patrons of the arts. The opportunity to interact with the actual performers would be meaningful to many of the theater’s major donors. The presenter mentioned this and asked, ‘How many major donor prospects do you have?’

“The answer was 50. The presenter then suggested that the director of development schedule appointments with the major donors and plan on bringing one of the actors with her. At this suggestion, the director of development exclaimed, ‘I don’t have time for that! I was hoping that the actors could go out on their own.’

“The presenter patiently responded, ‘If you visit with only two major donors per week, you will have seen them all within six months. And, not only will they have been cultivated by having the chance to interact with one of the actors, you will have developed a relationship and, in the process, learned more about the donor’s interests and philanthropic abilities. You will be well positioned to renew and upgrade their current support while being able to begin a conversation about planned giving. What could possibly be a better use of time?’

“While the development director was not pleased with the response, the reality is that the most effective fundraising happens at a coffee table not at a desk. Being proactive and actually talking with donors and prospects, understanding their needs, cultivating them, and asking for the gift is always the most effective development strategy.”

I understand that it’s not always easy to schedule another conversation with a donor or prospect. There are meetings to attend, reports to write, vendors to meet with, staff members to supervise, budgets to review, etc.

However, if you really want to raise more money, you will find a way to meet with more donors and prospective donors.

Top Ten Posts of 2012, and Other Reflections

We’ve survived another “Doomsday”! Now, as 2012 draws to a close, I thought it would be interesting to look back briefly before we march into the new year.

 

Happy New Year!

 

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

1. Survey Sounds Alarm Bell for Nonprofit Sector

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

3. 10 Essential Tips to Protect Children from Real Monsters

4. Garth Brooks Sues Hospital for Return of $500,000 Gift

5. 8 Valuable Insights from a Major Donor

6. Overcoming the 9 Fundraising NOs (Bernard Ross)

7. Breaking News: Brain Scan Study Gives Fresh Insight into Charitable Giving Behavior

8. What NOT to Do in Your Email or Direct Mail Appeals

9. 20 Factoids about Planned Giving. Some May Surprise You.

10. Two Major Factors that Demotivate Donors

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:

Special Report: How Will the Fiscal Cliff Affect Nonprofits?

In recent weeks, there has been an increase in the amount of media coverage of the “Fiscal Cliff” negotiations in Washington, DC. I’ve even written a number of posts on the issue including: “Obama Plan Could Cost Nonprofit Sector $5.6 Billion a Year.”

Now, the blog site Nonprofit Community, hosted by publishers John Wiley & Sons and Jossey-Bass, has asked the question:

How Will the Fiscal Cliff Affect Nonprofits?

I, along with nine other Wiley and Jossey-Bass authors from different perspectives, respond. We offer insights and great advice for every nonprofit organization. By visiting Nonprofit Community, you’ll have a chance to hear from:

Special Report: PPP National Conference on Philanthropic Planning Follow-up

The 2012 Partnership for Philanthropic Planning’s National Conference on Philanthropic Planning has come and gone. I thought it was a terrific conference in New Orleans because of the efforts of staff and the volunteers.

Personally, I enjoyed co-facilitating a session, attending other sessions, meeting PPP’s new President/CEO, selling and signing copies of my book (Donor-Centered Planned Gift Marketing), seeing old buddies, and making new friends.

If you weren’t able to attend the conference, or even if you were there, I have some useful information for you:

 

1. Wiley Authors’ Central

Authors Michael J. Rosen, Margaret May Damen, Brian M. Sagrestano

During the conference, publisher John Wiley & Sons hosted a booth for the authors of four of its books. You can download the flyer describing the books here. The flyer also contains QR Codes you can use to download a free copy of the corresponding book’s Table of Contents and first chapter. Below, you’ll find the titles of the four books, which you can click to go to The Nonprofit Bookstore (Amazon) where you can learn more and purchase a discounted copy:

•  Donor-Centered Planned Gift Marketing, Michael J. Rosen
• Women, Wealth, & Giving, Margaret May Damen and Niki Nicastro McCuistion
• The Philanthropic Planning Companion, Brian M. Sagrestano and Robert E. Wahlers
• A Fundraising Guide for Nonprofit Board Members, Julia Ingraham Walker

 

2. Council Conversation

In New Orleans, leaders from PPP councils from around the country gathered for the Council Conversation. Philip Purcell, JD (Past President of the Planned Giving Group of Indiana), Barbara Yeager (Director of Operations at PPP), and I (Immediate Past President of PPP of Greater Philadelphia) facilitated the gathering. The program looked at “Tips for Teaching Adult Learners” and two innovative program ideas: World Café and Pecha Kucha.

PPP will be posting the materials from the Council Conversation on its website.

If you would like to discuss having me do a presentation for your group, please contact me.

 

3. New PPP President/CEO

During the conference, Michael Kenyon was introduced as PPP’s new President/CEO. I first wrote about Kenyon when his hiring was announced. In New Orleans, I had the opportunity to speak with him for a few moments. He’s eager to assume the helm of PPP later this month. He’s passionate about the organization and is looking forward to building on its strengths. I wish him well.

 

4. How to Order Session Recordings

If you attended the conference, you know that there were often many sessions of interest being presented at the same time. It was impossible to participate in all of them. If you weren’t in New Orleans, you sadly missed them all.

However, you don’t need to feel too disappointed.

PPP recorded virtually all of the sessions and is making them available in two formats: MP3 ($13 per session) and CD ($15 per session). A complete set of conference MP3 recordings is $199.

For a complete list of recorded sessions and to order recordings online, visit AVEN-Audio Visual Education Network.