Archive for February, 2017

February 24, 2017

What is the Special Ingredient that Leads to #Fundraising Success?

Do you know the special ingredient for creating fundraising success?

You’ll notice I didn’t say “secret ingredient.” That’s because it’s not a secret. It’s actually common sense. The reason I’m writing about it is that it is not yet common practice to the degree it should be.

The special ingredient is: building relationships.

Gerry Lenfest, 21st century philanthropist and Giving Pledge member, explained the importance of developing relationships when writing the Foreword to my book, Donor-Centered Planned Gift Marketing:

Knowing your prospects and understanding what motivates them are two critical steps in the [philanthropic] process. Quite simply, you cannot skip cultivation and relationship building and expect a successful outcome…. Do not make the mistake of forgetting about us once you receive our gift commitment. We may truly appreciate how efficiently and effectively you handle contributed funds so much that we entrust you with another planned gift. We are also in a position to influence others to do the same…”

While Lenfest’s comments were about planned giving, they certainly apply to any type of fundraising. Strong relationships are the key ingredient to a successful philanthropic process. By building meaningful relationships, you will:

  • Acquire more donors
  • Retain more donors
  • Upgrade more donors
  • Acquire more planned gifts
  • Generate more major gifts
  • Inspire donors to become ambassadors for your organization

Unfortunately, the nonprofit sector in general is terrible at building relationships. This is one major reason that donor-retention rates have been steadily falling for years, according to the Fundraising Effectiveness Project. While there is no shortage of great how-to material out there, charities are still failing to grasp the importance of embracing a robust stewardship program as part of the philanthropic process. You can search this site for donor retention to get some great tips.

For now, however, I want to share a heartwarming story of what can happen when you establish strong relationships with donors and inspire them to be ambassadors.

John’s Roast Pork is a destination sandwich stand in Philadelphia. John Bucci’s family-owned establishment has been around since 1930 serving the best roast pork sandwiches in the city. (Hey, Philly is about more than john-bucci-of-johns-roast-porkcheese steak sandwiches, though they serve those, too.) The James Beard Foundation designated the establishment as an “American Classic” for roast pork.

Unfortunately, earlier this month, John’s was burglarized. The perpetrator(s) got away with a few thousand dollars. The burglary also shut down the business until repairs could be made. The stolen sum included $1,500 that had been collected to benefit Be the Match, operated by the National Marrow Donor Program. The charity maintains the world’s largest and most diverse bone marrow donor registry.

Be the Match is important to Bucci. Several years ago, he fought a fierce battle with leukemia and was ultimately successfully treated with a bone marrow transplant. Since then, Bucci has been a supporter. At one point when he contacted the organization, he requested to meet his marrow donor so he could thank the person. However, he was told that the organization’s guidelines did not permit this. Here’s what Bucci told Philly.com he did instead:

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February 10, 2017

What is the Most Important Thing a Donor Can Give You? … It’s Not What You Think It is.

What is the most important thing a donor can give you?

If I were to ask that question at an Association of Fundraising Professionals conference, I suspect most members of the audience would respond by saying, “A big check!” If I were to pose the same question at a National Association of Charitable Gift Planners convention, participants might shout out, “A Charitable Remainder Trust!”

In other words, we tend to think that the most important or valuable thing a prospect or donor can give a charitable organization is money, and preferably lots of it.

However, do we have the wrong goal in mind?

Maybe.

Amy Cuddy, a psychology professor and researcher at the Harvard Business School, says that successful professionals must first earn an individual’s trust and respect. “Psychologists refer to these dimensions as warmth and competence, respectively, and ideally you want to be perceived as having both,” according to a report in the Business Insider. The article continues:

Interestingly, Cuddy says that most people, especially in a professional context, believe that competence is the more important factor. After all, they want to prove that they are smart and talented enough to handle your business.”

However, Cuddy’s research demonstrates that earning trust is more important than proving competence. She shares her findings in her book, trust-by-dobi-via-flickrPresence: Bringing Your Boldest Self to Your Biggest Challenges. She also provides plenty of proven tips for engendering trust.

So, we see that the most important, valuable thing a prospect or donor can give you is their trust. Still not a believer? Keep reading. Cuddy’s research findings are in alignment with the studies completed by professors Adrian Sargeant and Jen Shang, of Plymouth University, who have stated:

There would appear to be a relationship between trust and a propensity to donate…. There is [also] some indication here that a relationship does exist between trust and amount donated, comparatively little increases in the former having a marked impact on the latter.”

In other words, the research demonstrates that the level of trust one has in a charity and its representatives, affects both willingness to give and the amount of giving.

Cuddy says:

If someone you’re trying to influence doesn’t trust you, you’re not going to get very far; in fact, you might even elicit suspicion because you come across as manipulative. A warm, trustworthy person who is also strong elicits admiration, but only after you’ve established trust does your strength become a gift rather than a threat.”

If you’re like most fundraising professionals, you instinctively understand the importance of establishing a trusting relationship. However, what are you doing to build and maintain them?

Here are just five helpful tips for earning and building trust with prospects and donors:

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February 7, 2017

Get a FREE Book for Nonprofits by a Noted Researcher

Do you like getting something for free? I do, especially when it can help me be more successful.

Now, thanks to Russell James, JD, PhD, CFP, the Texas Tech University professor and philanthropy researcher, you can download a free, 427 page book that will become an important reference source in your fundraising library.

Whether you call it planned giving, gift planning, legacy planning, philanthropic planning, charitable estate planning, charitable gift planning, or something else, the subject is complex. However, it does not have to be overwhelmingly confusing.

visual-planned-giving-2017-coverTo help you, James has put together the book Visual Planned Giving: Introduction to the Law & Taxation of Charitable Gift Planning, newly revised and updated for 2017. Designed for fundraisers and financial advisors seeking to expand their knowledge about charitable gift planning, this introductory book addresses all of the major topics in planned giving law and taxation.

The gift planning topics you’ll learn about include elements of a gift, documentation requirements, valuation rules, income limitations, bargain sales, charitable gift annuities, charitable remainder trusts, charitable lead trusts, life insurance, retirement assets, private foundations, and donor advised funds. Over 1,000 full-color illustrations and images will guide you through complex concepts in a visual and intuitive way. James makes planned giving accessible and pain-free for the busy professional.

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February 3, 2017

Urgent: Join #Fundraising Colleagues for Advocacy Day on Capitol Hill

President Trump’s tax plan would reduce charitable giving by 4.5 to 9 percent, according to the nonpartisan Tax Policy Center. Analysis from the American Enterprise Institute estimates that Trump’s current tax proposal could eliminate more than $17 billion in annual giving.

It’s time to join the fight against any efforts to reduce charitable-giving incentives. As the US Congress drafts tax-reform legislation and negotiates with the Trump Administration, The Charitable Giving Coalition, Chaired by the Association of Fundraising Professionals, is hosting an advocacy day on Capitol Hill in Washington, DC on Feb. 16, 2017.

capitol-hill-by-elliott-p-via-flickrTo participate, you must email Ali Davidson (adavidson[at]urbanswirski.com) to register by the end of business on Wednesday, Feb. 8, 2017. When you register, provide your name, organization, state, and Congressional district. There is no charge to participate, but you will be responsible for your own travel and lodging expenses.

The “100 Years of Giving Fly-In” advocacy event is a great chance to meet with policymakers and their staff to advocate for maintaining the full value of the charitable deduction, as well as its possible expansion.

Over the years, I’ve participated in a number of advocacy events with AFP. They are fun and interesting. Moreover, it’s exciting to help make an important difference for the entire nonprofit sector. But, to make a difference, our sector needs to show up. You need to show up.

The Charitable Giving Coalition says:

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February 1, 2017

What are the Obstacles to Improving Donor-Retention Rates?

I’m disgusted and frustrated. You should be, too.

Once again, the already horrible existing-donor and new-donor retention rates in the USA have further declined, according to the 2016 Donor Retention Report issued recently as part of the Association of Fundraising Professionals and Urban Institute Fundraising Effective Project.

Among new donors, the report says:

An alarming finding in this research is that the New Donor Retention rate has been steadily declining since 2008, averaging a reduction of -3.4% year over year.”

The new-donor retention rate in 2008 was a terrible 29.35 percent. By 2015, that dropped to an even more pitiful 22.93 percent!

red-alert-by-bash-linx-via-flickr

Red Alert time for the nonprofit sector!

Among existing donors, the retention rate has dropped by an average of 1.68 percent since 2008. In 2008, the existing-donor retention rate was 67.88 percent compared to just 60.23 percent in 2015.

I’m puzzled. Since 2008, there have been books written about how to effectively retain more donors. There have also been seminars, workshops, webinars, articles, and blog posts offering superb advice on the subject. Yet, despite the wealth of available information, the numbers are steadily declining.

In the past, when I’ve been confronted by poor retention data, I’ve offered helpful tips. You can search my site for “donor retention.” However, for now, I’m too fed up to offer more tips here. I don’t even believe you need more information to retain more donors. Something else is going on, and I want to understand it. I hope you’ll help me.

It’s your turn now. Please tell me, as a comment below or via email:

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