Posts tagged ‘philanthropy’

March 29, 2014

Top 10 Posts of All-Time from “Michael Rosen Says…”

I want to do something a bit different in this post. While I’ve ranked my posts in a given year to give you a Top-10 list, I’ve never before ranked all of my posts. So, I thought it would be interesting to do so now.

Here are links to my Top 10 Most-Read Posts of All Time:

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

2.  Survey Sounds Alarm Bell for Nonprofit Sector

3.  5 Things Never to Do in Your Phone Fundraising Calls

4.  How NOT to Run a Capital Campaign

5.  Does CFRE Have a Future?

March 18, 2014

Get More Repeat Gifts: The Rule of 7 Thank Yous

Donor retention is a worsening problem for the American nonprofit sector, according to Jon Biedermann, Vice President of DonorPerfect. In 2011, only half of first-time donors to a charity could be counted on to make a second gift. As bad as that retention rate was, it dropped to 49 percent in 2012.

Something must be done.

It’s challenging and expensive to acquire first-time donors. Charities must do a better a job of hanging on to those donors. Cost-efficient annual fund campaigns as well as major and planned giving efforts depend on loyal donors.

MG Fundraising CoverFortunately, guest blogger Amy Eisenstein, ACFRE  offers a simple idea that can help: “The Rule of Seven Thank Yous.” Her rule will help you retain first-time donors, loyal donors, small donors, and major donors — in other words, all donors.

Amy is an author, speaker, coach and fundraising consultant who’s dedicated to making nonprofit development simple for you and your board. Her books include 50 A$ks in 50 Weeks and Raising More with Less.

In her current Amazon bestseller, Major Gift Fundraising for Small Shops, Amy takes the complex subject of major gift fundraising and distills it down to its essential elements. The book provides a clear, methodical approach that any organization can follow. Great tips, real-world stories, check lists, sample forms, and more make this a book that you will keep on your desk and refer to often, that is if you want to raise more money than you might have thought possible.

I’m happy to share Amy’s advice about how to more effectively retain donors. Here’s what Amy Eisenstein says:

There are two main reasons that donors, including those who make major gifts, provide for not making a repeat contribution:

1. They didn’t feel thanked; and/or

2. They were never told how their first gift was used.

Fortunately, the answer to this dilemma is a simple one: donors give because doing so makes them feel good. This includes feeling appreciated for their gift and knowing that their check has fed more children, cleaned the environment, or in whatever way has made a measurable, positive difference to a cause they care about.

Your job, no matter how large or small your budget, is to make sure your donors are satisfied on both counts. Over the course of working with dozens of nonprofit organizations, I’ve developed a simple process to help you do just that whenever you receive a major gift.

You may have heard that you should thank a donor seven times before asking for another gift. Here is my version of “The Rule of Seven Thank Yous” works:

1. Thank the donor at the ask meeting (once they say “yes”).

2. Have a board member call to say thank you after the meeting.

3. Send a tax-receipt thank-you letter within forty-eight hours of receiving the gift.

4. Have the executive director write a thank-you card as a follow-up to the ask meeting. 

March 14, 2014

5 Lessons Moses Can Teach Us about Fundraising

Moses can teach us a number of important things about fundraising. Yes, that Moses, the prophet revered by Jews, Christians, Muslims, and other religious faiths throughout the world.

Consider just one story from the Bible that usually receives little attention.

Moses by rorris via FlickrOver 3,000 years ago, after fleeing slavery in Egypt, the Hebrews wandered in the wilderness for 40 years. During this time, God instructed Moses to have the people build a Tabernacle, a movable tent-like structure where the Hebrews could worship and experience the presence of God.

Special materials, fabrics, and precious stones and metals were needed for the project. So, Moses told the Hebrews about the project and shared with them what was needed. Then, he made a request to “everyone whose hearts so move them.” Moses asked them to “bring gifts for God” so that the Tabernacle could be built.

The Hebrews responded with great generosity by providing the needed materials and volunteer labor. Moses, overwhelmed by the volume of gifts received, actually had to instruct people to stop bringing gifts. No more were needed for the project.

Here are five things every fundraiser can learn from this story and the wisdom of Moses:

March 7, 2014

Latest, Greatest Secret to Fundraising Success Unveiled!

Most nonprofit development professionals would love to find the Holy Grail of fundraising. Discovering a new piece of research, a proven technique, a new technology that could unleash a torrent of funds would be undeniably wonderful.

But, do we need the Holy Grail?

Some folks seem to thinks so. Perhaps that’s why, when I’m invited to speak at conferences or lead workshops, my hosts frequently want me to present the “latest, greatest” ideas for fundraising success. Perhaps that’s why so many articles, blog posts, and seminar titles include buzz words such as “secrets,” “great tips,” “powerful,” “fresh,” “innovative,” “simple,” “key tools,” etc.

I’m not immune. I’m always on a quest for new, robust ideas. In addition, I title many of my articles (see above) and seminars with the buzzwords I know will attract attention.

In one planned gift marketing seminar I did a few years ago, I shared a variety of ideas for promoting planned giving. I knew I had a diverse audience, so I provided both simple and sophisticated ideas. While my suggestions were certainly not revolutionary, they did push the envelope of current practice.

Following my talk, a fellow came up to me and said, “You didn’t say anything I didn’t already know.”

Ouch! That’s not the feedback I like, even if it was just one person’s opinion. I always want everyone to come away from my seminars with at least one terrific idea.

After receiving the stinging feedback, I said to the man, “I’m sorry to hear that you didn’t get any fresh ideas. However, I’d love to hear about how you’ve used the phone to market bequests.”

He replied, “I haven’t implemented a phone program.”

“Ok, then tell me how your direct mail campaign has done,” I requested.

“I haven’t done a planned gift mailing,” he said.

“Ok, then tell me about your website and how it allows you to track and rate visitor interaction,” I requested.

“Our website isn’t that sophisticated,” he said.

The conversation continued. The point is that this fellow knew what he should or could be doing, but he was not doing it!

While finding the Holy Grail of fundraising would be spectacular, the truth is that such a singular, miraculous method or tool does not and will never exist. However, I have some good news. We do not need a Holy Grail.

Low Hanging Fruit by defndaines via FlickrMy latest, greatest idea for fundraising success is something that can benefit virtually all nonprofit organizations: Master the fundraising fundamentals and grab the low-hanging fruit.

At this point, you might be thinking, “Sheesh! There’s nothing new or great about that idea.”

Well, if that’s what you’re thinking, you should be right.

Unfortunately, I see far too many examples, far too regularly that charities simply have not mastered the fundamentals, and they have left plenty of low-hanging fruit on the tree. Just like the fellow who came up to me after my seminar, many folks may know what they should be doing but they’re not doing it.

Consider this: A new study by Dunham and Company found that charities could be losing literally billions of dollars in donations because they have failed at the online basics. For example, 84 percent of nonprofits do not make their donation pages easy to read and use with mobile devices. By the way, that statistic includes some of the nation’s largest charities.

The fundamentals matter. The evidence shows they could add up to billions for the nonprofit sector.

Do you want more money for the annual fund? Then tell me, do you have a monthly donor program? Do you do second gift appeals? Do you effectively steward gifts to ensure a high donor retention rate? Do you use database analysis to help you better target asks, even in your direct mail appeals?

February 28, 2014

Warning: US Volunteerism at a Decade Low!

The rate of volunteerism in America fell to the lowest level in a decade, according to the US Bureau of Labor Statistics report Volunteering in the United States — 2013.  This appears part of a downward trend.

Nonprofit organizations should find this trend alarming for a number of reasons, including:

Volunteers provide an essential labor pool. Approximately 62.6 million (25.4 percent) Americans volunteered at least once between September 2012 and September 2013.

The median volunteer spent 50 hours on volunteer activities during the study period. These significant volunteer hours mean that volunteers are a valuable part of the nonprofit labor force. Declining volunteerism rates mean charities will either have to limit services, discontinue certain activities, or pay for employees to perform the tasks formerly handled by volunteers.

Volunteers serve as ambassadors. Individuals who volunteer usually act as ambassadors for the organization. They obviously have a high-degree of interest in the organization, which is why they volunteer with it.

Through volunteer experiences, provided they are good ones, the volunteers will become more engaged with the organization and more passionate about its work. They will speak of the organization with family and friends. When they do, it will be in a positive, passionate tone. This word-of-mouth promotion will help your organization to attract additional volunteer and donor support.

Volunteers are more likely to donate. The more engaged an individual is with his community, the more likely he is to volunteer and contribute money to nonprofit organizations. The more points of connection there are between an individual and a particular nonprofit organization, the more likely that individual is to give, give often, and give generously to that organization, as I point out in my book, Donor-Centered Planned Gift Marketing.

Volunteerism is an important point of connection. This phenomenon is explained, in part, by the Social Capital Theory popularized by Robert Putnam, author of Bowling Alone.

Volunteers are more likely to make planned gifts. Consider what researcher Russell James, JD, PhD, CFP reports in his book, American Charitable Bequest Demographics (1992-2012):

Among those with [estate] planning documents, those who both volunteer and give ($500+) are dramatically more likely to plan a charitable estate gift than those who only volunteer or only give ($500+). Those who only volunteer, plan charitable estate gifts at approximately the same rate as those who only give.”

Graph from American Charitable Bequest Demographics (1992-2012) by Russell James.

Graph from American Charitable Bequest Demographics (1992-2012) by Russell James.

Furthermore, those who only volunteer or only donate ($500+) are more than twice as likely to make a legacy gift than those who do neither.

For a free electronic copy of James’ book, subscribe to this blog site in the right-hand column. You’ll receive an email confirmation of your subscription that will contain a link to the book.

Clearly, the steady decline in volunteerism represents a serious problem for the nonprofit sector.

So, why is volunteerism on the decline? Unfortunately, the reasons for the decline are unclear. However, the report contains some clues.

February 23, 2014

Honoring Donor Intent: When it Works, When it Doesn’t

Donor-centered fundraising is smart fundraising. Part of being donor centric involves always honoring the donor’s intent.

The Association of Fundraising Professionals’ Code of Ethical Principles states:

[Fundraising professionals] recognize their responsibility to ensure that needed resources are vigorously and ethically sought and that the intent of the donor is honestly fulfilled.”

Honoring donor intent is essential for at least two reasons:

  1. It’s the right thing to do.
  2. It’s a fundamental way to earn and deserve trust. Without trust, fundraising would be virtually impossible.

To honor donor intent, you must first ensure that the contribution is received according to the donor’s specifications. This is particularly important for planned gifts when the donor is no longer around to make sure everything goes according to plan. The charity becomes the voice of the donor.

The next part of honoring donor intent requires that the organization use the gift for the purpose specified by the donor.

Unfortunately, honoring donor intent is not always an easy thing to do. Sometimes, it works the right way while other times it morphs into something ugly.

Let’s look at two examples.

The Pennsbury Scholarship Foundation learned of the passing of an elderly woman in the community. I first shared her story in my book, Donor-Centered Planned Gift Marketing. A member of the all-volunteer organization’s board knew the woman and knew the Foundation was in her will.

The woman’s attorney produced a copy of the will which included a nearly $1 million bequest for the Foundation and nearly nothing for her two estranged children. However, the children produced another version of the will where the charitable provision was whited-out, literally.

The attorney for the children approached the Foundation to negotiate a settlement agreement. The Foundation, under the advice of legal counsel, held firm and asked that the matter proceed to court as soon as possible.

The attorney for the children initiated a series of delaying tactics hoping that the Foundation would eventually negotiate rather than have the matter drag out. Under the advice of legal counsel, the Foundation held firm.

About one year later, surprisingly quickly given the circumstances, the court upheld the clean version of the will, and the Foundation received the full bequest.

In the Foundation’s case, the donor’s interest was in alignment with the charity’s. The Foundation was right to defend the donor’s wishes. By defending the donor’s interest, the Foundation ultimately benefited. More importantly, young people in the community will benefit for years to come as the Foundation provides scholarships that would not otherwise be possible to award.

Sadly, there are times when protecting the interests of the donor cross a line. In those cases, the organization goes from being donor centric to being self-centered, even greedy. This might be the case with the University of Texas.

Warhol's Farrah Fawcett portrait on exhibit at the UT Blanton Museum.

Warhol’s Farrah Fawcett portrait on exhibit at the UT Blanton Museum.

The University received a bequest from Farrah Fawcett. The Seventies icon left “all” her artwork to the University where she had studied art prior to the successful launch of her acting career. The collection included at least one portrait of Fawcett by famed artist Andy Warhol.

However, the Fawcett story is complicated. Warhol actually did two, almost identical pieces. According to Ryan O’Neal, the actor and on-again-off-again boyfriend of Fawcett, Warhol gave one portrait to Fawcett and the other to him.

February 10, 2014

Special Report: Mark Zuckerberg & Wife Lead List of Top Philanthropists

[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.]

 

With a gift of $992.2 million of Facebook stock to the Silicon Valley Community Foundation, Mark Zuckerberg and his wife, Dr. Priscilla Chan, find themselves at the top of The Chronicle of Philanthropy’s list of largest philanthropists in 2013.

Mark Zuckerberg by Andrew Feinberg via FlickrZuckerberg, at age 29, is the youngest philanthropist ever to top The Chronicle’s annual list of largest donors.

George Mitchell, with a bequest gift of approximately $750 million to the Cynthia and George Mitchell Foundation, ranked second on the 2013 list.

In total, the top donors of 2013 contributed $7.7 billion plus $2.9 billion in pledges. The numbers and ranking are based on publicly available information.

February 7, 2014

Humor to Raise Money? Learn a Lesson from the Super Bowl

I enjoyed Super Bowl XLVIII. For starters, my Philadelphia Eagles did not lose! Ok, they weren’t in the game, but still…

The game itself was fun in its own bizarre, lopsided way as the Seattle Seahawks crushed the Denver Broncos by a score of 43 to 8. The Bruno Mars part of the Half-Time Show was entertaining, though the Red Hot Chili Peppers portion was inappropriate for a family audience.

I also enjoyed the amusing Super Bowl commercials. Debuting funny, quirky, sometimes sentimental ads during the Super Bowl has become an advertising tradition. My wife actually enjoys the commercials more than the game, a lot more.

Clearly, the advertising profession believes in the effectiveness of using humor in television commercials.

So, I took notice several days ago when John Ladd, Development and Planned Giving Coordinator at Carolina Friends School, started a discussion in the Smart Planned Giving Marketing Group on LinkedIn:

Humor in planned giving marketing? Have you seen a good example or used humor, or at least a light touch, in marketing planned giving?”

While the fundraising profession is not well known for having a raucous sense of humor, it’s not a profession that’s devoid of humor. Just as humor can help the for-profit sector sell goods and services, nonprofit organizations can leverage humor to inspire support. Indeed, some charities use humor to great effect, for general fundraising as well as planned giving.

You Can Use Your Stock to Make More Than Soup!

You Can Use Your Stock to Make More Than Soup!

In my book, Donor-Centered Planned Gift Marketing, I share a story from Rebecca Rothey, CFRE, when she was Director of Planned and Principal Gifts at Catholic Charities of Baltimore (she’s now Director of Major and Planned Giving at the Baltimore Community Foundation). Rebecca used humor quite successfully when branding her planned giving program.

Rebecca wanted to use humor to cut through the clutter and grab attention. She also wanted to ease the stress that people feel when considering their own death, stress that often keeps them from considering planned gifts. She came up with an idea she thought would work for her target market: older, traditional women.

The idea was “Rebecca’s Recipes for Planned Gifts.” In ads and postcards, Rebecca dressed as a 1950s homemaker engaged in various cooking/baking activities. The headlines included:

• You don’t have to be upper crust to have a trust.

• You don’t have to be rolling in dough to make a gift that will last forever.

• You can have your cake and eat it too—you can make a gift and receive payments for life.

• You can count your chickens before they hatch—you can make a gift and count on receiving payments for life.

• Don’t let taxes knock the stuffing out of your IRA.

• You can use your stock to make more than soup, you can use it to make a charitable gift.

• Too much on your plate to plan your estate?

While Rebecca thought she had a good idea, she first tested it before rolling out with it. Rebecca carefully tracked the statistical results as well as the feedback she received. Her methodical, appropriate use of humor worked, and she closed gifts as a result.

Rebecca’s use of humor also had an unexpected benefit. It engaged senior management. It got them joking about and more comfortable with the planned giving program. The use of humor also made Rebecca more approachable by staff.

While she certainly believes in the creative use of humor in the fundraising process, Rebecca still respects the serious side of planned giving:

January 31, 2014

Avoid Making Faulty Assumptions about Donor Loyalty

Loyal supporters are valuable assets for every nonprofit organization.

Unfortunately, there is an alarming lack of understanding about the definition of “loyal supporter.” Before we address that issue, however, let’s look briefly at why loyal donors are so important.

Because it’s more cost-efficient to retain donors than acquire new ones, loyal donors allow charity fundraising programs to operate more efficiently. The lifetime value of such donors is greater. More money, more cost-effectively raised means more funds for mission fulfillment.

Interestingly, loyal donors also exhibit greater engagement tendencies as researchers Adrian Sargeant, PhD and Elaine Jay, PhD observed in their book Building Donor Loyalty:

Donors who remain loyal are also much more likely to engage with the organization in other ways. Long-term donors are significantly more likely than single-gift donors to offer additional gifts in response to emergency appeals, to volunteer, to upgrade their gift levels, to lobby for the organization, to actively seek out other donors on the organization’s behalf, to buy from a gift catalogue, and to promote the organization to friends and acquaintances.”

Sargeant and Jay even quantify the value of this additional activity. In their experience, they have seen that such activities can increase donor lifetime value by 150 to 200 percent.

Increasingly, charities are coming to appreciate the benefits of having loyal donors. For example, progressively more development professionals understand that loyal supporters make the best planned giving prospects.

This raises the question: Who is a “loyal supporter?”

In the context of planned gift marketing, one development professional recently defined loyalty as a combination of giving frequency, giving recency, and cumulative giving amount. I agree, but only to a point.

Cover- Building Donor Loyalty -- click to see book at AmazonFirst, as Sargeant and Jay describe in their book, loyalty can be either passive or active. Passively loyal donors might give because their friends give, because they want to do something while they continue to search for the charity that is just right, or even because of inertia. By contrast, actively loyal donors care passionately about the organization and its mission. They identify with the values of the organization and regard donations to it as an essential, rather than discretionary, part of their personal budgets.

When it comes to fundraising, actively loyal donors are the only truly loyal donors. In other words, not all regular donors rise to the level of being loyal supporters.

Second, people can be loyal supporters without being donors. They even can be so intensely loyal that they make a generous legacy commitment.

January 23, 2014

Special Report: Free Webinar with Researcher Russell James

[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. Subscribers will receive a link to download a free copy of researcher Russell James' latest book.]

 

The percentage of the US population with wills and trusts has declined sharply over the past 12 years, as I first reported here. What’s a smart planned giving marketer to do?

Russell James, JD, PhD, CFP, a leading philanthropy researcher based at Texas Tech University, will offer some answers in a FREE webinar hosted by MarketSmart on Wednesday, January 29, 2014 at 2:00 PM ET (Optional Q&A 3-4 PM).

James will discuss the decline of wills and trusts along with other legacy giving issues including:

• How can you garner legacy gifts from donors who do not have wills or trusts?

• What are the top demographic predictors that someone will make or revoke a bequest commitment?

• Why are beneficiary designations becoming increasingly popular?

Space is limited, so be sure to register now.

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