Posts tagged ‘stewardship’

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 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?

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.

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:

November 1, 2013

6 Ways to Raise More Money without New Donors!

If you achieve your fundraising goal this year, your reward will likely be an increased goal next year. At most nonprofit organizations, the struggle to raise ever-increasing amounts of money never ends. This drives many nonprofits into a continuous donor-acquisition mode.

However, you don’t need a single new donor to raise more money.

Given that the cost to acquire a new donor is often $1, or more, for every $1 raised, finding a new donor does not even help most organizations with short-term mission fulfillment.

So, how can you raise significantly more money for mission fulfillment without acquiring new donors? Here are just six ideas:

1. Ask for More. I still receive direct mail appeals that say, “Whatever you can give will be appreciated.” Ugh! That’s not an ask. If you want people to give, and give more, you need to state your case for support. Then, you need to ask for that support in the correct way.

Many charities simply seek renewal gifts. If I gave $50, the charity will simply ask me to renew my $50 support. Sometimes, a charity will randomly ask me for an amount series (i.e.: $100, $250, or more) that has nothing to do with my previous level of support.

However, there is a better way. Try saying this:

I thank you for your gift of $50 last year that helped us achieve __________. This year, as we strive to __________, may I count on you to increase your support to $75 or $100?”

Thank the donor. Mention how the organization used her previous gift. Establish the current case for support. Ask for a modest increase linked to the amount of the previous gift. A hospital in New York state tested this approach against its traditional approach and saw a 68% increase in giving.

2. Second Gift Appeal. Just because someone has given your organization money does not mean you have to wait a year to ask for more. If you first properly thank the donor and report on how his gift has been put to use, you can then approach him for a second gift. However, you need to have a good case for going back to the well.

Growing Money by Images_of_Money via FlickrMost grassroots donors don’t think, “What’s my annual philanthropic sense of responsibility to this charity? Fine. That’s how much I’ll give.” Instead, most grassroots donors look at the charity they wish to support and then consider how much money they have left over after they pay the monthly bills. Then, they give from that reservoir of disposable income. Guess what? Next month, and every month thereafter, that reservoir usually gets replenished. So, going back to the donor for an additional gift can work, again, if you have a strong case for support. By the way, the replenishing disposable income reservoir is one reason why monthly donor programs can be effective (see below).

3. Recruit Monthly Donors. Way back in 1989, I wrote an article for Donor Developer in which I predicted that every nonprofit in America would have a monthly donor program within five years. Sadly, I was very mistaken. Even in 2013, too few charities host a monthly donor program.

September 20, 2013

I’m Sorry

Eventually, we will all do something for which we need to apologize. So, it’s essential that we all know the right way to do it.

Unfortunately, one of my readers reminded me recently that many people find it extremely difficult to say simply, “I’m sorry.” She told me about a secular charity that had scheduled an event to be held during Yom Kippur, the holiest holiday for the Jewish people.

Sorry by butupa via FlickrIf the nonprofit organization with the bad scheduling sense was based in North Dakota, there might not have been much of a problem. However, the charity is based in Philadelphia, home to a large and philanthropic Jewish community.

Ironically, the organization’s mission honors an individual who pioneered religious and ethnic tolerance in America.

My reader emailed the charity to alert it to the conflict, to let it know she would not be attending this year despite having attended in the past, and to express her displeasure with the organization’s scheduling decision.

Here is the response my reader received via email:

The choice of this date was not meant to offend anyone or exclude anybody. This event has been held on this weekend since its inception. . . .

[We] apologize for any offense you may take from us scheduling these events on Friday and Saturday.”

Let’s closely examine the message.

Regardless of whether or not the organization intended to cause offense, it did. The scheduling mistake was either a result of outright intent or oblivious carelessness. By excluding an important part of its donor base for this once-a-year event, the charity caused offense.

The nonprofit organization further offended my reader by lying to her in the email response. The charity claims the event has been “held on this weekend since its inception.” However, as someone who has attended the event in the past, my reader knows otherwise. She documented for me that, in recent years, the organization has hosted the event on a variety of different weekends. Even if the organization’s statement were true, it’s still no excuse for failing to consider a different date.

The person who responded to my reader then concluded by apologizing “for any offense you may take.” That’s not an apology! It’s a deflection. With this statement, the organization has not taken responsibility for its actions. Instead, of taking responsibility for causing offense, the charity put the blame on the donor who took offense.

August 30, 2013

Can You Thank People Too Much?

A few years ago, I served on the board of a large nonprofit organization. During one of the Development Committee meetings I attended, we reviewed the organization’s stewardship policies.

That’s when one of my board colleagues asked, “Does anyone else think we thank people too much?”

Thank You by woodleywonderworks via Flickr and Wordle.netAs the discussion moved forward, I mentioned that, from a practical perspective, I did not think it possible to overly thank folks. I added that, if it was possible to overly thank people, this particular organization was so far away from being in danger of doing so that there was really no point in further discussing the matter. Others agreed with me, and the conversation eventually moved on to other related matters.

Well, it’s finally happened. I found an organization that overly thanks people: The Democratic Congressional Campaign Committee.

Don’t worry. This is not a political post. I won’t be commenting about the political content of a thank-you email I received recently from Kelly Ward, Executive Director of the DCCC. Instead, I’ll stay focused on the thank you nature of the communication.

By the way, during the last Presidential election, I signed up to receive emails from a number of political organizations and candidates as a way of learning a bit about how these groups use social media. So, please don’t make any assumptions one way or the other about my political orientation.

When I received Ms Ward’s email, it immediately caught my eye. The subject line read:

Michael, thanks!”

 I like that the DCCC used my name in the subject line. And I liked that I was being thanked, though I couldn’t imagine why. While I could see the email was from Kelly Ward, I didn’t know her or who she represented. The combination of the personalized subject line that expressed thanks along with not knowing the sender made me open the email. Above all, I wanted to know what I was being thanked for.

Here’s what the email stated:

Michael –

We asked you to step up and, boy, did you ever!

House Republicans are home this month for August Recess, and activists like you have been holding their Republican Members of Congress accountable in some pretty amazing ways.

We put together a video of some of our favorite displays of activism — you should take a look at what YOU’VE helped accomplish this August:

[link provided to video]

We hope you’re inspired by the video to continue to hold Republicans accountable. Keep up the great work out there!

Thanks,

Kelly Ward

DCCC Executive Director

P.S. Here’s a sneak peek of one of our favorite highlights from the video: In Illinois, Rodney Davis was confronted by a group of concerned voters about ‘ducking’ questions on his ethics investigation. One activist even brought a LIVE duck!” [link provided to the video]”

Ok, here’s where it really gets interesting. While the DCCC wrote to thank me for my activism, specifically my actions to hold Republican members of Congress accountable, I never did what they were thanking me for. I never even donated money to the DCCC to help pay for the activism of others

As a result of the bizarre email from the DCCC, I’ve reached the conclusion that you can indeed over thank someone.

If you thank people for something they really did not do, you’re wrongly thanking them. Instead of showing appreciation, you’re being manipulative, gratuitous, lazy, or all of the above. Reserve your thank-you messages for expressions of real gratitude:

  • Thank people for giving their time.
  • Thank people for donating.
  • Thank people for demonstrating that they care.
  • Thank people for an inquiry.
  • Thank people for attending an event or program.
  • Thank people for referring others to the organization.

You get the idea. Just be sure you don’t behave like the DCCC. Don’t thank folks for what they have not done. If you do, you’ll only end up diluting the value of real expressions of appreciation.

For your donors, your organization should have a donor recognition policy that outlines how supporters at various levels will be thanked and recognized for their support. Just remember that some donors might not want the recognition you’re offering. For example, some donors may wish to give anonymously. In that case, thanking these people by name in your annual report would be inappropriate. Always remember to be donor centered.

To avoid the uncommon risk of over thanking people:

  • Do not thank folks for what they have not done.
  • Do not thank folks publicly if they want to remain anonymous.
  • Do not thank folks in ways they have told you they won’t appreciate.

When you do thank people, be personal, warm, and sincere.

For more information about showing gratitude effectively, see my previous posts on the subject:

What Can Your Nonprofit Learn from a Fortune Cookie?

Stewardship: More than a Thank-You?

Can a Thank-You Letter Contain an Ask?

That’s what Michael Rosen says… What do you say?

August 23, 2013

5 Words or Phrases that Can Cause Donors to Cringe

Words have the power to inspire. They also have the power to alienate. Words can touch us or they can fall flat.

In my previous post, I shared seven words that, when used together, can earn you the respect, trust, and appreciation of prospects and donors.

Word by Whatknot via FlickrMary Cahalane, of the Hands-on Fundraising blog, looked at words from a different perspective in her excellent post “7 Words and Phrases that Should Die.” 

Inspired by Mary, I now want to share my list of planned-giving and major-giving related words and phrases that, at times, make me cringe:

Planned Giving. I know, I just used the term “planned giving,” and now I’m telling you it makes me cringe. Let me explain. The term is jargon. As such, I think it’s fine to use with other nonprofit professionals in the office. It nicely encompasses all of the various ways of planning a gift. Unfortunately, most donors have either no idea what the term means or only a vague, partial notion.

When speaking with a prospect, avoid talking about “planned giving.” Instead, talk with your prospects about their “legacy” and the specific gift structure(s) you want to suggest. For example, talk about a gift in a will or a Charitable Gift Annuity rather than using the confusing and, for the context, overly broad term “planned giving.” If you need a generic term to use with prospects, I prefer “legacy giving,” while I acknowledge that that phrase is not completely without its own problems.

Bequest. When you read the previous paragraph, you might have noticed I avoided this word. You might have guessed that I don’t particularly like the word “bequest.” If you did, you’re right.

First, many people don’t really understand what a “bequest” is. Second, many of those who do understand the word think it is something only rich folks do. Third, the word sounds funereal to some.

Instead of using the word “bequest,” talk with prospects in simple, easy to understand terms. Don’t ask them to make a charitable bequest commitment. Ask your prospects to include your organization in their will.

Philanthropy. This is a great word. It comes from a Greek word literally meaning “love of humankind.” Unfortunately, some prospects, and even some donors, find the word alienating.

I remember speaking with a woman while we were waiting in the wings at a National Philanthropy Day luncheon. I was about to present her with the Partnership for Philanthropic Planning of Greater Philadelphia Legacy Award for Planned Giving Philanthropist of the Year. She told me she was honored to be present, but she wanted me to know, “I’m not really a philanthropist.”

I explained to the award recipient what the word “philanthropy” means. And I explained that it is not a term that is exclusive to the wealthy. I made sure she understood that she is indeed a philanthropist. I’m glad I had the chance to explain “philanthropy” to this caring donor. Sadly, we don’t always have such an opportunity.

If you’re thinking about using the word “philanthropy,” know your audience and know whether the term will resonate. Just keep in mind that 70 percent of people with investible assets of $1 million or more do not consider themselves wealthy, according to The UBS Investor Watch. If your prospects think “philanthropy” is only for the wealthy, and they’re not wealthy, you’re going to have some problems if you toss around the word. Words such as “legacy” or “support” might do nicely instead.

August 16, 2013

7 Magical Words to Earn Respect, Trust, and Appreciation

I want to give you seven wonderful words that can help you earn the respect, trust, and appreciation of your prospects and donors.

Before I give you the magical phrase, I want you to know that I recognize that this post is about something that is common sense. However, given a couple of my wife’s recent encounters, I can tell you that just because the miraculous phrase is common sense does not mean it’s usage is common practice.

That’s why I’m going to share it with you here:

I don’t know, but I’ll find out.”

Many nonprofit professionals think they need to know the answer to every question a prospect or donor asks. They think if they do not readily know the answer, they’ll appear stupid, ignorant, incompetent, or all of these or worse. So, they make any number of mistakes when they’re stumped, including:

1. They side step the inquiry. In a classic deflection move, some development professionals will simply acknowledge the question and then change the subject. Inside, they think, “Whew! I dodged that one.” Unfortunately, the reality is that the person who made the inquiry will almost definitely notice the dodge and be annoyed by it.

Albert Einstein by Philippe Halsman-19472. They start sputtering. In this case, the development professional starts struggling to answer the question but only ends up half answering a bunch of questions that were never asked. While the person who asked the question might find this somewhat amusing, he’ll still notice the original question has gone unanswered.

3. They will make up an answer. Some development professionals will, on occasion, make up an answer. They’ll do this because they think the answer is probably right and that there will be no harm if they’re mistaken. Sometimes, a development professional will outright lie in order to avoid being seen as lacking in information. Unfortunately, in this electronic age, there’s a good chance that the person who gets cute with the facts will end up being caught.

Instead of letting yourself be caught in your own uncomfortable trap, just use the amazingly simple, powerful phrase:

I don’t know, but I’ll find out.”

When you use that phrase, you’ll be telling your prospect or donor:

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