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?”

5 Tips for Giving Donors What They Really Want

Do you know what your donors want?

Do they want a clever t-shirt? A fancy certificate? A lovely lapel pin? A practical coffee mug? A recognition lunch?

Maybe. However, while some donors will appreciate receiving trinkets or invitations to recognition events, others really don’t care and still others will view such items as a waste of money.

So, what do your donors really want?

Virtually all donors want to know that their donations will have a positive impact. In other words, donors of all sizes want to know that their contributions make a difference. The younger the donor, the more true this is. In addition, they want to feel like they are partners with the organizations they support.

Renata J. Rafferty, in her book Don’t Just Give It Away, advises philanthropists, “You truly want the charity to view you as a partner in its work, and partnerships are successful only when all parties can be candid with one another.”

The way to partner with donors and let them know they are having the desired impact is through solid stewardship. You need to be transparent. You need to candidly give them the information they want.

Stewardship is defined by the AFP Fundraising Dictionary as:

a process whereby an organization seeks to be worthy of continued philanthropic support, including the acknowledgment of gifts, donor recognition, the honoring of donor intent, prudent investment of gifts, and the effective and efficient use of funds to further the mission of the organization.”

As I mention in my book, Donor-Centered Planned Gift Marketing:

Stewardship will help the donor feel good about her commitment. It will ensure that revocable gifts (i.e., bequests) remain in force and, perhaps, increase in value over time. Good stewardship can also lead to another planned gift from the donor. For example, a donor who makes a bequest commitment may be impressed by the organization and a sufficient level of trust might have been developed through the process to allow the donor to feel comfortable making a donation to establish a charitable gift annuity (CGA). A donor who establishes a CGA may feel so comfortable having done so, he may decide to establish a second. Or, a CGA donor may make a bequest commitment.”

Great stewardship can help strengthen your organization’s relationships with donors. The additional benefit is that solid stewardship of existing donors can also build relationships with prospective donors as well.

Jewish Federation of Greater Philadelphia has figured this out.

Rather than generating a bland, corporate annual report that examines the fiscal condition of the organization, Federation has produced a Community Impact Report that looks at the difference the organization is having on people’s lives.

There are a number of things worth noting about the Community Impact Report:

1. It exists. Perhaps the most noteworthy thing about the report is simply that it exists. Most nonprofit organizations thank donors for their support. However, far fewer charities report on how gifts are put to use.

Federation prepares a Community Impact Report each year. Actually, it usually prepares two reports, mid-year and end-of-year documents. Now on its fifth report, Federation uses the information to keep the community updated about its work toward mission fulfillment.

2. It focuses on outcomes. Unlike a typical annual report, the Community Impact Report is not a state-of-the-organization analysis. Instead, the report examines the impact the organization is having on its service area. It’s a report about mission fulfillment.

“Our donors really appreciate seeing the level of accountability we have achieved,” says Alex Stroker, Federation’s Chief Operating Officer. “They also like to know that we are focused on program outcomes.”

16 Tips for Crafting a Powerful Postcard Campaign

As you might imagine, I regularly receive direct mail appeals from many charities. Most of them are truly “junk mail.” After a quick glance, I quickly deposit the junk appeals into the recycling bin where they will do much more good than their intended purpose.

JFGP Postcard (click for larger image)

Occasionally, I’ll receive a mailing that captures my attention, for the right reasons. Even more rarely, I’ll find something in my mailbox that is worthy of sharing with you. Earlier this month, I found just such a piece.

The postcard mailing from the Jewish Federation of Greater Philadelphia arrived shortly before the Passover and tied into the holiday. This post contains an image of the front and back of the postcard so you can see it for yourself. Federation did a great job with the piece. So, let me take a few moments to share some tips we all can learn from it:

1. Get rid of the envelope. One of the greatest challenges with direct mail is getting people to open the envelope. They won’t get your message unless they do. If you can get your message across in a way that does not require a full mailing package, you can overcome this challenge by simply doing away with the envelope altogether. Federation’s postcard mailing has done exactly that.

2. Employ a pattern interrupt. Another challenge with direct mail involves figuring out ways to engage the recipient so they spend more than two seconds with the piece before tossing it into the trash. When most folks go through their mail, they quickly look for the fun stuff and bills. People quickly weed-out what appears to be junk.

So, how did Federation disrupt the typical mail-sorting pattern? They did it with two very different photos on the front of an odd-sized postcard. While speedily going through my mail, I noticed an old-fashioned, sepia-tone photo of an older couple on the postcard. Beside it, there was a contemporary color picture of a cute, young child eating matzo. The postcard got me to ask, “Huh, what’s this about?”

In other words, Federation caught my attention by being unusual and by presenting contrasting photographs. They knocked me out of my normal mail-sorting pattern.

3. Make it easy to read. By printing black type on a white background, Federation provides strong contrast that makes reading easier. While reverse type was used – something I normally do not approve of — it was used sparingly and with a larger serif font ensuring easy readability.

4. Keep the message brief but impactful. In about 50 words, I learned that Mr. and Mrs. Schweig had passed away long ago. However, I also learned they had contributed to Federation. Most compellingly, I discovered that their generous support would feed 1,500 community members in need during Passover.

The generosity of the Schweigs impressed me. The depth of the community need surprised me. The organization really had my attention.

5. Engage the reader. I was already engaged with the postcard when the photos caught my attention and I read the pithy message on the front of the card. However, the card engaged me further with a simple question: “What will your legacy be?” By asking the reader a question, you can get them to stop and think.

6. Provide more details. On the address-side of the postcard, the reader is told that Mr. and Mrs. Schweig made their gift through a bequest. Providing additional details and telling people where they can get even more information will satisfy all readers and their individual levels of curiosity.

7. Demonstrate impact. Donors want to make a difference. Whether they give to the annual fund or make a planned gift commitment, people want to know that their support will have a positive impact. They want to know that their donations will be used efficiently to help the organization fulfill its mission.

This postcard shows how the support of past donors is being put to good use. The implied messages are: We wisely use the support from past donors to help the community. We can help you to have a positive, high-impact as well.

9 Speaking Tips for Your Next Recognition Event & 2 Things Never to Do

When addressing a group of supporters who have gathered at a donor-recognition event, it is important to effectively manage both the message and how you deliver that message.

A colleague contacted me recently for some advice about his upcoming appreciation event:

I will be emceeing and addressing the members of our legacy society. The President and the Chair of our current capital campaign are both speaking as well, but it falls to me to open the gathering and set the tone, then close the gathering and send them on their way. Given an opportunity like this, what would you make sure you said? Do you have any words of wisdom?”

The answers to the above questions will vary somewhat based on the unique culture of the group. Determining the correct message and how to appropriately deliver it will require sensitivity to the organization’s traditions, regional culture, and national mores. With that in mind, here are nine ideas what he might consider doing followed by two things he should definitely never do:

1. Be lively. I have found that many legacy society events can be dull, even funereal. If that’s what your folks are expecting and want, then give it to them. However, if the situation allows, I encourage you to try to be a bit light and jovial. Sometimes, we can take ourselves a bit too seriously, particularly when it comes to planned giving. Giving should be a joyful, positive, uplifting experience, even for a very serious cause. Keep that in mind when addressing your supporters.

2. Show appreciation. Just because it’s a donor-recognition event, do not assume that your supporters will feel appreciated simply by being there. Make sure you tell donors that you appreciate not just their gifts but also their involvement and caring.

3. Tell stories. People also like a good story, especially if it’s amusing, has a twist, or is heart-warming. Think of what you want to say. Then, think if there’s a story you can tell that will make the same point. Stories engage people by allowing them to put themselves into the situation. Hearing a good story activates many of the same parts of the brain that would be activated if the listener were actually living the situation. For maximum impact, make sure to use real stories.

4. Tell donors how gifts have been used. It is important for donors to understand that the organization wisely uses donations to achieve its mission efficiently. Very often, we focus on how gifts will be used. That’s certainly important. In fact, that’s my next point. However, we must also show folks the impact of past support. That gives us an opportunity to provide evidence of our organization’s effectiveness.

So, if a realized bequest contribution allows a social service agency to provide 50 meals to the homeless each week, then share that story. Remember that bequest commitments are revocable. And, if treated well, your planned gift donors will be among your best prospects for another gift. Therefore, you’ll want to keep reassuring the people that made those commitments that they made the correct decision.

Sharing a story about a previous donor whose gift has been realized will do a number of important things:

• Tells people that donors continue to be remembered and appreciated even long after they’re gone.
• Reminds folks that others have made a planned gift. People like to know that they’re part of group.
• Underscores that planned gifts have a real impact.
• Implies that all donors will likely be similarly appreciated and have their gifts wisely used to achieve the organization’s mission.

5. Tell donors how gifts will be used. For planned gift commitments that might not be realized for years to come, it can be difficult to demonstrate how the realized donation will be used. However, while difficult, it is still something you have to do. It is important for you to let donors know that their gifts will work to wisely benefit those the organization serves. And, if appropriate, tell them how the broader community or society will benefit as well.

If You Don’t Care About Them, Why Will They Care About You?

A reader of Michael Rosen Says… recently contacted me with her/his own unfortunate experience with a nonprofit organization. S/he provided me with a copy of an email exchange s/he had with a theater company. I’m going to share this person’s story with you because it contains a worthwhile lesson about the importance of reciprocity.

Before I get to the story, however, I want you to know that I am editing the emails for brevity and any identifying information. I’m protecting the name of the theater company, the name of the Managing Director of the theater company, and the reader who contacted me because neither party knew, at the time, their one-on-one communications would find their way into the press.

From time to time, I write about the blunders that some nonprofit organizations make. I’ve done this, not to shame them, but so others can learn from someone else’s mistakes. It is much less painful if we learn from someone else’s missteps rather than our own.

The story begins when my reader — let’s call her/him “Sam” — received an email from a theater company. Sam, who had purchased two season subscriptions, immediately opened the email. The message promoted an interesting lecture by a well-regarded nonprofit leader in the community. The lecture dealt with leadership and tied-in with the company’s current play.

The event appealed to Sam. Just before clicking through to the organization’s website to accept the invitation and purchase tickets, Sam noticed the date of the lecture: Monday, March 25. Unfortunately, this meant that Sam would not be able to attend because that date was the first night of Passover, an important Jewish holiday.

Annoyed that the theater company would schedule a special one-time program on Passover, Sam wrote to the theater company:

Disappointing scheduling of an otherwise appealing, academic lecture.

So, add this to your discussion: Does a good (nonprofit) leader ‘dis’ a large portion of the region’s top arts patrons through thoughtless event scheduling?

We’ll be celebrating first Seder.

We really would have enjoyed hearing the address on this topic. The speaker is a dynamo.

Sam”

The theater’s Managing Director responded the next business day. This was very good. The Managing Director did the smart thing by responding soon after receiving the complaint:

Dear Sam,

Thanks very much for writing. I’m very sorry for the scheduling inconvenience. We truly do our best, but we present special events all season long and it is not possible to avoid all holidays on the calendar. For example, this event takes place on the first night of Passover, we have a performance of XXXXXXX on Easter, etc.

If you’re interested in history, I hope you’ll consider joining us for the talk on Monday, April 1 with ZZZZZZZZ. He’s truly fantastic.

All best,

Fran”

The response was good in three ways:

1. A high-level person sent an immediate, personal response.

2. The message contained an apology.

3. The author suggested another program that the individual might enjoy.

Unfortunately, the goodwill these positive points might have earned was largely negated by the defensive and dismissive tone of the email. Sam responded:

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 Not Let Them Eat Cake!

April 15 is an important date on the calendar. In the United States, it’s the deadline for people to file their federal tax return. It’s also when one charity will hold its eighth annual “Let Them Eat Cake” fundraising event.

The charity promotes the event as “Philadelphia’s Wedding Cake Design competition for professionals, students and those who love to bake to create.” Originally conceived by the charity to attract brides-to-be, the occasion now attracts over 1,000 foodies who pay a minimum of $40 each to taste the creations.

This sounds like a great idea for a fundraising event, right?

Wrong!

In this case, the idea of “Let Them Eat Cake” has a major problem: In runs counter to the host organization’s own mission!

The event benefits City of Hope, a National Cancer Institute-designated Comprehensive Cancer Center that conducts independent biomedical research, treatment and education in the fight to conquer cancer, diabetes, HIV/AIDS and other life-threatening diseases.

As is well-known, consuming sugar can be a life-threatening issue for those suffering from diabetes. Over consumption of sugar can help lead to Type II-Diabetes. Compelling research demonstrates that over consumption of sugar contributes to the growth of cancer. This is why organizations like the Center for Advancement in Cancer Education advocate a low-sugar, low-fat diet.

My wife is an Ovarian Cancer survivor. So, it stunned me when I saw an anti-cancer charity promoting the eating of processed sugar and fat. Indeed, City of Hope has placed the consumption of fat and sugar at the very heart of its upcoming fundraising event without any disclaimers or caveats.

I had to understand the thought process behind the event. I had to know if I was missing something. Therefore, I called and spoke with Christopher Fanelli, Event Coordinator at the Philadelphia Development Office of City of Hope and the event’s organizer.

I asked Fanelli to explain how his anti-cancer, anti-diabetes charity reconciled its event theme with its organizational mission. He indicated that there was no issue to reconcile. He stated, “Everything in moderation.” He said that the event successfully raises money and builds awareness for City of Hope “in a fun way.”

When pressed on the idea that the event stands in opposition to the organization’s mission, Fanelli said, “I don’t believe it does it at all. It points people to what our mission is.”

Ok, the event “points people” to the organization’s mission. I probed that point.

“Will the event feature any healthier dessert choices?,” I asked.

“No,” responded Fanelli.

“Will any healthy-eating leaflets or information be available at the event?”

 “No.”

“Will any information be available at the event that explains the dangers associated with eating too much sugar or fat?”

“No.”

Fanelli then went on to explain once again how this fun event raises money and awareness for City of Hope.

I then asked, “So, are you really suggesting that the ends justify the means?”

What to Do When You Mess Up?

[Publisher’s Note: Before getting to this week’s post, I want to mention that Michael J. Rosen, CFRE, was a guest on The Nonprofit Coach Radio Show hosted by Ted Hart, ACFRE on Tuesday, February 26, 2013. Michael discussed his book, Donor-Centered Planned Gift Marketing. You can download a free podcast of the show by clicking here.]

Have you ever messed up at work? Stumbled? Blundered? Bungled? Botched? Made an oversight, gaffe, or mistake, big or small?

If you say you haven’t, I know that one of the following is true about you:

1. You’re not telling the truth, to others or, perhaps, just to yourself.
2. You have a selective memory.
3. You haven’t been paying attention.
4. You have virtually no work experience.
5. You need to be more creative and experimental.

Because I believe we have all made and will make mistakes during our careers, I’m going to share five tips with you that will ease the sting when such incidents occur:

Own it. When you make an error, resist the temptation to pass the blame. Instead, take responsibility. When we own our mistakes, we’re more likely to earn and retain the respect of those around us. Moreover, it puts us in the best possible position to do something positive in response to the problem.

Do not hide it. In politics, there’s a saying: “It’s not the crime, it’s the cover up.” The idea is that the cover up is usually more damaging than the trigger offense. It’s harder to fix a problem if you cover it up or simply pretend that there is not a problem at all. Furthermore, if people suspect you’re hiding something, they’ll apply that suspicion beyond the one instance. Honesty really is the best policy.

Apologize. If your misstep damages or offends another person, apologize immediately. Ok, I know that lawyers often frown at the idea of an apology. They fear it is an admission of guilt that can expose you and your organization to liability. I say, if it’s appropriate, suck it up and apologize anyway. At the very least, express your regret, which might lower the risk of legal liability since it is not an admission of guilt. (By the way, since I’m not a lawyer, I’m not giving you legal advice.)

Learn from it. When we learn from our mistakes, we’re far less likely to repeat the stumble. In some cases, learning from our missteps will allow us to improve our skills or our processes. In other words, if we look at mistakes as an opportunity to grow, our organizations and we can actually be better off than before the incident.

Turn a negative into a positive. I like the expression, “When life gives you lemons, make lemonade.” We can often turn blunders around into something good. In 1928, Alexander Fleming slipped up. He mistakenly failed to cover a Petri dish containing a Staphylococcus culture. However, it’s a good thing he messed up. When he examined the exposed Petri dish, he observed that mold growth had impeded the spread of the bacteria. Fleming’s mistake, and subsequent observation, led to the use of penicillin as a life-saving antibiotic.

In recent weeks, the news media have shared a couple of stories that nicely illustrate the points I’ve just made.

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.

Do Not Let This Happen to Your Organization

It happened recently to a prestigious private school.

New York’s Dalton School inappropriately released private alumni information to its volunteer fundraisers. The New York Times reported the blunder that sent a shockwave through the School’s community and may have a chilling effect on fundraising.

Do not let this happen to your organization.

While volunteer and professional fundraisers must have useful information to effectively perform, organizations must protect sensitive items and keep them confidential. I’m going to provide you with eight tips that will help you keep your organization safe and your prospects and donors happy.

But first, let me tell you what went wrong at Dalton. Here’s what The New York Times reported this month:

But recently, one of the top Manhattan private schools, the Dalton School, might have been a little too open with the data it had about some graduates. The school said [February 7] that it had given out to some alumni who had volunteered to raise money for Dalton information about several other alumni whose own children had applied to the school. The information included whether those children had been admitted, information that most parents prefer not to be shared, especially in cases where the answer is no.”

It is common and acceptable practice for nonprofit organizations to share prospect and donor information with both volunteer and professional fundraisers. Such information often includes contact information, spouse or partner data, affiliation, giving history, volunteer involvement, event participation, and interests.

Dalton ran into trouble when it disseminated information about whether the children of prospects applied for admission and were rejected by the School.

The Times article quoted an upset alumna:

’It’s horrible,’ said one alumna who has been financially supportive of the school, and like nearly everyone interviewed about what happened, declined to be identified for fear of upsetting school leaders. ‘Why should anyone know how much I have given and whether my kid got in or didn’t get in or even applied?’” 

Prospects and donors care about their privacy. They do not want to feel that they are being spied on. They do not want private information about themselves or, especially, their children disseminated to friends and acquaintances. Dalton overstepped by releasing admissions information about alumni children, something acknowledged by the School:

’We apologize for and deeply regret the release of this information,’ said the letter, written by Ellen Stein, the head of school. ‘We are reviewing our protocols to ensure that information about the admissions status of all Dalton families and applicants is protected and remains confidential. We have reached out to apologize personally to those 11 alumni whose names were listed.’” 

While I applaud Dalton for reviewing its data protocols after the inappropriate release of private information, it would have been far better if it had had this review before a problem occurred. You now have that opportunity.

Before a crisis happens at your organization, take the time to review your organization’s own prospect research and information sharing protocols.

Here are some tips to guide you during your review: