Avoid the Pitfalls to Raise More Money

Yesterday, I made my first public speaking appearance since my successful battle with cancer began just over a year ago. I served as the plenary presenter at the Philanthropic Planning Group of Greater New York Planned Giving Day Conference. My topic:

Ripped from the Headlines: Learning from the Planned Giving Mistakes of Others”

It was a particularly moving day for me. You see, I was scheduled to speak at PPGGNY’s conference last year. Unfortunately, because of my health, I had to cancel. It marked the first time I ever canceled a professional appearance.

Meryl Cosentino, the Vice President of PPGGNY and Senior Director of Planned Giving at Stony Brook University, was very understanding and kind. She stayed in contact with me during my recovery and, when she learned of my return to professional life, she invited me to speak at this year’s Planned Giving Day. I thank Meryl and her colleagues for the invitation to present.

So, PPGGNY Planned Giving Day marked my first speaking cancelation and, now, my return to the speaking circuit! I’ve come full circle!

To help me celebrate the happy occasion, The Stelter Company generously sponsored 20 copies of my book, Donor-Centered Planned Gift Marketing, so we could give them away to random winners during my presentation. I thank Stelter for its thoughtful support. I also thank Stelter for contributing valuable material to my book. The company’s commitment to the nonprofit sector is remarkable, though not the least bit surprising.

Michael Rosen at PPGGNY Planned Giving Day.

During my talk, I shared several stories about well-known nonprofit organizations that have stumbled. I also shared plenty of useful tips, and a story that provided the overarching theme to my presentation. The story contains an important lesson for all nonprofit professionals:

Several months before my surgery, I visited southern Utah with a good friend. We went hiking in Escalante National Monument, a spectacular wilderness. On the more treacherous trails, I was particularly cautious. I carefully placed my feet with each step. I looked at where I was going to step next so I could pick the best spot. Because I exercised great caution, I didn’t stumble once.

Coming off one challenging trail, I found myself on a wonderfully flat, gravel path. I gave a sigh of relief. I was pleased to be able to spend more time looking at the lovely scenery rather than the trail and my feet. However, as soon as I had that thought, I stepped into a small gully, a tiny wash. And I went falling straight over. After grabbing my camera to make sure it was undamaged, I checked myself. With the exception of a skinned knee and bruised ego, I was fine.

From that experience, I learned a profound lesson.

Discover 5 of the Latest Trends Affecting Your Fundraising

Leading up to the 2015 Association of Fundraising Professionals International Fundraising Conference, a number of my readers contacted me to request that I gather information about emerging fundraising trends. (Yes, I take requests, so feel free to make one.)

It’s not surprising that development professionals understand the need to stay on top of the evolution that takes place in the world of philanthropy. After all, as Benjamin Disraeli has said:

Change is inevitable. Change is constant.”

Recognizing that ongoing change is part of our life is one thing. Understanding what that change means and how to capitalize on it can help even good fundraisers become stars. As John F. Kennedy has stated:

Change is the law of life. And those who look only to the past or present are certain to miss the future.”

None of us wants to miss the future.

So, with that thought in mind, I attended the session “Latest Trends in Giving and What They Mean for Your Organization” with presenters Stacy Palmer, Editor of The Chronicle of Philanthropy, and Jeff Wilklow, Vice President of Campbell & Company. Here are five of the key trends they cited:

Mega-Donors:

Among very wealthy, very generous philanthropists, much of their giving does not go directly to existing charitable organizations. While their philanthropy will eventually find its way to charitable purposes, it will first be funneled through special funds or foundations that the mega-donors create or contribute to.

Many of those who earned their fortunes through entrepreneurialism will gravitate toward entrepreneurial philanthropy. This is particularly true with younger technology entrepreneurs. With a do-it-yourself attitude, these individuals may choose to create a charity or socially-responsible business rather than donate to an existing, mainstream nonprofit organization.

In any case, big donors are interested in funding big ideas. They’re interested in big solutions to big problems. To attract the support of mega-donors, your charity will need to focus on creative solutions for large challenges.

Legacy Donors:

Many charitable organizations embrace the idea that planned giving equals endowment building. For example, many charities have adopted policies that direct bequest revenue into the organization’s endowment fund unless otherwise designated by donors.

While your organization might have a bias in favor of building endowment revenue, donors have a keen interest in their own legacy. Donors want to make a lasting difference. So, they will likely be more interested in funding your programs and initiatives that help establish their legacy than they will in simply having their money deposited into your organization’s investment pool.

Just as we see that current donors have a growing interest in gift designations rather than unrestricted giving, we see a similar interest among planned giving donors who want to ensure their legacies. Some donors want to be assured of having a long-term, definable impact while other might be content with having their name, or the name of a loved one, on an endowment fund. The key is to understand what motivates the individual.

Social Donors:

Donors communicate with your organization in a variety of ways thanks to new technologies. They also communicate with each other like never before.

Donors are online. And it’s not just young donors. They view your website, they engage in crowd funding, they give online, they take surveys, etc. Here are a few simple things you need to do to make sure those experiences inspire support:

Special Report: Watch This Fun Video about Monthly Giving

[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.]

 

Experts have been telling nonprofit organizations for decades to start a monthly giving program.

Have you listened? Does your nonprofit organization have a monthly giving program?

If you do run a monthly giving program, great! Please share a comment below about the effectiveness of your program or what advice you have for others.

If your organization does not have a monthly giving program, why not? Please use the comment section below to let me know.

The first time I recommended monthly giving programs was way back in 1989. In an article I wrote for The Donor Developer newsletter, I even predicted that virtually all charities would have a monthly giving program within five years. Well, I couldn’t have been more wrong. I shouldn’t have been wrong, but I was. Now, 26 years later, I’m still amazed at how many organizations have failed to adopt a monthly giving program.

As it turns out, I’m not alone in my frustration. A number of other fundraising experts share my consternation:

• Harvey McKinnon, author of Hidden Gold
• Gail Perry, author of Fired-Up Fundraising
• Erica Waasdorp, author of Monthly Giving: The Sleeping Giant

Recently, the team at Sumac, the nonprofit software company, invited the four us to share our thoughts about monthly giving in a special video. In this two-minute, light-hearted presentation, we come clean about how we feel when you ignore our advice to start a monthly giving program. We also tell you, one more time, why you must start one today. Watch it now:

I’m Sorry, but Mother Theresa was Wrong!

Have you ever heard a nonprofit professional, speaking of prospective donors, say:

They should give until it hurts.”

Recently, I once again came across this phrase. I shuddered. Nevertheless, I realized that this person was not alone in his thinking.

The Rev. Jimmy Swaggert, echoing the sentiment of many church leaders and paraphrasing the Bible, is reported to have said:

Give, even at all costs, ‘till it hurts.”

Even Mother Theresa, who has been Beatified by the Roman Catholic Church, reportedly said:

Give, but give until it hurts.”

So, with this blog post, I know I’m going out on a limb. However, I must emphatically state that, on this point, the nonprofit professional I mentioned was wrong. Rev. Swaggert was wrong. Mother Theresa was wrong.

Unless you’re dealing with a population of masochists, asking people to give until it hurts is not a sound strategy. Most people tend to run from things that cause pain and toward things that give them pleasure.

I believe we should inspire people to give until it feels good.

Fortunately, I’m not alone in this belief. Recently, Michael Kaiser spoke at Drexel University and stated:

Make giving fun!”

Michael Kaiser

Kaiser is the Chairman of the DeVos Institute of Arts Management at the University of Maryland. He is also President Emeritus of the John F. Kennedy Center for the Performing Arts. When Kaiser speaks, people listen. And rightfully so. He’s a masterful nonprofit leader and a gifted turn-around expert. Whether you work for an arts organization or not, you owe it to yourself to listen to his remarks. You can find the video by clicking here.

Here are some additional key points that Kaiser made:

[Donors] don’t join our family to be whined at.”

“They join because we’re inspiring and fun.”

“The donor doesn’t owe us allegiance. We need to earn it.”

“Donors get fatigue when we get boring.”

In other words, all nonprofit organizations, whether involving the arts or not, need to make giving a pleasure. We need to recognize that people will be more willing to donate if giving is enjoyable, and they’ll be more willing to continue their support as long as giving continues to be gratifying.

So, how can you more effectively inspire prospective donors by making giving fun?

Special Report: 21 Ways to Unlock Creative Genius (Infographic)

[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.]

 

I’m a big believer in the power of unlocking creative energy. Without change, without innovation, the nonprofit sector will continue to lack sufficient resources.

For decades, overall philanthropy has remained at about two percent of Gross Domestic Product. Doing business as usual may allow the nonprofit sector to continue at that two percent level. However, without taking creative risk, we will never see philanthropy get to three percent or four percent of GDP.

In my previous post, “If You Want $1 Million, Be Creative,” I looked at how creativity helped the City of Philadelphia win a $1 million grant from the Bloomberg Philanthropies. I hope the post inspires nonprofit professionals to seek creative solutions to fundraising challenges.

Now, I want to share an infographic that offers you “21 Ways to Unlock Creative Genius”:

If You Want $1 Million, Be Creative

A wise person once said, “It’s not just what you say, but how you say it.”

Another wise person once stated, “A picture is worth a thousand words.”

Creatively taking these two aphorisms together can lead to great fundraising success. Consider what happened when the City of Philadelphia competed for a $1 million grant in the Bloomberg Philanthropies’ Mayors Challenge:

Good Company Ventures, the Wharton School at the University of Pennsylvania, and the Philadelphia Department of Commerce collaborated on a grant application for their Philadelphia Social Enterprise Partnership.

With over 300 cities from 45 states competing, the Philadelphia collaborative knew it needed to do something to standout. The Philadelphia team prepared the required written proposal, which came in at 30 pages of dense content.

Then, they contracted with David Gloss and his team at Here’s My Chance, a Philadelphia-based creative agency that works with nonprofit organizations. HMC was tasked with helping Philadelphia’s proposal submission standout from the crowd.

Gloss went to work and produced an infographic that would accomplish two things: 1) Distinguish the Philadelphia proposal from the others. 2) Provide an easy to understand summary of the 30-page proposal.

With an energetic, clean infographic branded in Philadelphia’s colors and a detailed written proposal, the Philadelphia team earned a spot as one of the Top 20 finalists. In the next round of the competition, finalists were asked to submit a short video describing their proposed program and the impact it would have.

Once again, HMC went to work. Here is how HMC describes what happened next:

Being a Top 20 finalist is pretty sweet…but winning is even sweeter. For the next round, all finalists created videos, and we knew ours had to be the Beyoncé of all entrants: bold, professional, and flawless. To allow for more freedom and flexibility for that, we decided to produce an animated video. Then, we booked the talent. Not only did Mayor Michael Nutter provide a voice over for the video, but he appeared in it as well.”

At the end of the long competition, Bloomberg Philanthropies named Philadelphia as one of the five winners, awarding the city $1 million! By the way, Philadelphia was the only winner to have submitted an animated, rather than live-action, video.

So, what can we learn from this?

Will You Help Me Celebrate My (Re)birthday?

On May 2, I began my month-long (re)birthday celebration. One year ago, I underwent a 14-hour surgery to remove the rare cancer that had spread throughout my abdomen. The surgery was a success, and I am now in remission!

Prior to surgery, I was told my life expectancy would be about two to five years. Following surgery, my doctor told me I can expect a full life. That’s why I consider May 2 my (re)birthday.

Having gone through what I have during the past year, I’m returning to professional life with a reinvigorated commitment to help the nonprofit community be more efficient and effective so we can make the world a better place.

I’m doing a number of private and public things this month to celebrate. While I normally ensure that my blog site remains largely non-commercial, I’m making an exception with this post because I want to enlist your help as I mark this important time in my life.

There are a number of ways you can join my (re)birthday celebration:

New Clients. I’m looking for at least three new clients. If you’ve found my blog posts helpful, imagine what we can achieve by working closely together, as some readers have already discovered. If you work for a nonprofit organization, I can help you with annual fund enhancements, donor retention efforts, ethics education and policy development, phone fundraising improvements, planned gift marketing, and training for staff and/or boards. If you work for a for-profit company serving the nonprofit sector, I can help you with service/product enhancements, new service/product development, and marketing.

Please contact me if you would like to discuss how I can help you achieve your goals.

Paid Speaking Engagements. As part of my return to professional life, I’m looking forward to getting back out on the speaking circuit. I’m an experienced, well-reviewed presenter and AFP Master Trainer. I’m also an adjunct faculty member at Drexel University where I teach Advanced Fund Development to graduate students. For your organization, I can facilitate a variety of training programs for your board, staff, or volunteers. For your professional associations, I can offer a variety of seminars or keynote presentations to meet the group’s needs and particular interests.

Do Old Dogs Really Have What It Takes?

I recently heard from an old friend, Bob Crandall the Founder/Consultant at Crandall, Croft & Associates. In addition to being a terrific fundraising professional, Bob is the kind of guy who instinctively knows how to weave humor and wisdom together. The latest story he shared with me is a great example of this:

 

The Old Dog

An old German Shepherd starts chasing rabbits and before long, discovers that he’s lost. Wandering about, he notices a panther heading rapidly in his direction with the intention of having lunch.

The old German Shepherd thinks, “Oh, oh! I’m in deep s… now!”

Noticing some bones on the ground close by, he immediately settles down to chew on the bones with his back to the approaching cat. Just as the panther is about to leap, the old German Shepherd exclaims loudly, “Boy, that was one delicious panther! I wonder if there are any more around here?”

Hearing this, the young panther halts his attack in mid-strike, a look of terror comes over him and he slinks away into the trees.

“Whew!” says the panther, “That was close! That old German Shepherd nearly had me!”

Meanwhile, a squirrel who had been watching the whole scene from a nearby tree figures he can put this knowledge to good use and trade it for protection from the panther. So, off he goes.

The squirrel soon catches up with the panther, spills the beans and strikes a deal for himself with the panther.

The young panther is furious at being made a fool of and says, “Here, squirrel, hop on my back and see what’s going to happen to that conniving canine!”

Now, the old German Shepherd sees the panther coming with the squirrel on his back and thinks, “What am I going to do now?” But, instead of running, the dog sits down with his back to his attackers, pretending he hasn’t seen them yet, and just when they get close enough to hear, the old German Shepherd says…