Archive for February, 2018

February 14, 2018

How to Get Last Year’s Donors to Give More this Year

Showing donor love and asking for more money should not be mutually exclusive activities. Inspiring upgraded support requires both to work hand-in-hand.

Unfortunately, for many nonprofit organizations, stewardship is the poor stepchild of the fundraising process. It is often ignored or poorly implemented. It is usually an underfunded activity. As a result, donor-retention rates for the nonprofit sector are pathetic.

Development professionals who think about stewardship usually believe that it is something sandwiched between when a gift is received and the next appeal. In other words, stewardship and fundraising are separate functions. However, Joe Garecht, President of Garecht Fundraising Associates and Editor of The Nonprofit Fundraising Digest, believes that the next appeal is actually an integral part of a robust stewardship process. An upgrade appeal will not achieve maximum success without sound stewardship. Done well, an ask is an extension of the stewardship process.

Joe’s thinking makes sense. If we love our donors, why would we want to deny them the satisfaction of continuing to support a cause they care about? Why would we want to deny them the opportunity to make a larger commitment? Helping donors to continue feeling good about continuing to do good is part of good stewardship.

We want our donors to feel important, feel needed. One way to do that, is to ask and to ask for more than they gave last year. However, we shouldn’t make an upgrade appeal in a vacuum.

It’s not just about asking. As Joe explains in his guest post below, it’s about incorporating the ask into a sound stewardship system so that the upgrade appeal is a natural evolution of our relationship with the donor. Stewardship and asking are not separate activities; they part of a cohesive system.

I thank Joe for sharing his stewardship insights and his four-step strategy for asking for donation upgrades:

 

One of the most important fundraising systems you can build at your nonprofit is an effective donor stewardship strategy. Donor stewardship starts with thanking your donors for their gifts… but is much more than that.

There are three main goals for your donor stewardship system:

  1. Donor Retention: You want to make sure that your donors keep giving year after year.
  2. Referrals: You want your donors to introduce you to their friends and colleagues who also might want to get involved with your organization.
  3. Donor Upgrades: You want your donors to give more this year than last year, and to move to major gifts and planned giving, if they have the capacity to do so.

In this article, we’re going to take a look at that third goal. We’re going to answer the question, “How can you get your current donors to give more this year than they did last year?” To understand how to best upgrade your donors, we’re going to first explore why donors make the decision to upgrade, and then review a simple, four-step strategy for getting your donors to upgrade this year.

Understanding Why Donors Upgrade

If you want to successfully solicit your donors to give more this year than they have in the past, it is important to understand why donors decide to upgrade their gifts:

Donors upgrade because they have been stewarded effectively.

The most important reason why donors upgrade is because they have been properly stewarded. This means that your nonprofit has appropriately thanked and recognized them for their past gifts, and has continued to build a relationship with them. Your donors want to feel like they are an integral part of your team. They want to feel appreciated, valued, and heard.

If you are treating your donors well, keeping them updated on your work, seeking their advice and input, and reporting on outcomes in between asks, your donors will be far more likely to upgrade their gifts. If your donors are investing their emotional energy, knowledge, and time in your work, then upgrading their financial investment will be the next logical step.

Donors upgrade because you are casting a big vision.

One of my favorite maxims in fundraising is this: Donors don’t make big gifts to small visions. Your donors want to change the world. They want to make a difference. If you are not casting a big enough vision, your donors will make their big gifts elsewhere, investing in organizations and companies that are.

Every nonprofit can cast a big vision…even small, local organizations working in one small corner of the world. Start by asking yourself, “How are we changing the world? How are we changing lives? How are we saving lives?” Your answers to these questions will help you think through the real impact of your work. If you want your donors to give more this year than they ever have before, you need to cast a bigger vision this year than you ever have before.

Donors upgrade because they are asked to upgrade.

Donors only upgrade when you ask them to do so. Very few donors will upgrade their gifts without being asked.  Thus, if you want your donors to give more this year than they did last year, you need to go out and ask them to do so. While the majority of your stewardship system should be focused on cultivation, asking for donations from current donors (including renewals and upgrades) is an essential part of the fundraising cycle.

In order to be successful, the upgrade process should be systematic. This means that you shouldn’t ask for upgrades here and there, whenever the whim strikes you. Instead, you should have a defined plan in place to review your donors’ capacity and ask them for upgrades as often as appropriate.

How to Ask Your Donors to Upgrade

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February 6, 2018

We All We Got. We All We Need.

How would you like to be a champion fundraising professional?

It’s simple. Not easy, but simple.

The Super Bowl LII Champion Philadelphia Eagles provide us with a great example of what it takes to be the best in any profession. While Eagles safety Malcolm Jenkins — he’s also an entrepreneur and philanthropist — didn’t originate the sentiment, he articulated a statement that became a team slogan and nicely sums up the champion creed:

We all we got. We all we need.”

Let me explain.

To succeed, we need to recognize that all we truly can depend on is our team and ourselves. Furthermore, that’s often enough. More specifically, in the fundraising world, here’s what it means:

Build a strong team. Hire, or encourage your organization to hire, talented staff who believe passionately in the organization’s mission. Such people will almost always enjoy greater fundraising success than a hired mercenary who only wants a job and a paycheck. Remember, not only does your organization rely on the people it hires, so do you.

James Sinegal, Co-Founder of Costco says:

If you hire good people, give them good jobs, and pay them good wages, generally something good is going to happen.”

Enhance the team’s skills. Even talented, experienced people can enhance their skills. As professionals, we must never stop learning. We must always strive for improvement. This will make us more effective, and heighten our self-esteem. It will also keep us from getting bored.

Will Smith, an accomplished television and movie actor, continues to hone his craft and refuses to simply walk through his roles. As he says:

I’ve always considered myself to be just average talent, [but] what I have is a ridiculous insane obsessiveness for practice and preparation.”

Recognize you can only control what you can control. As an example, you could have angst about whether the new tax code will have a negative impact on philanthropy. Or, you could examine the new code to see how you can leverage it for greater fundraising success. In other words, you can choose to worry about something over which you have no control, or you can decide to take steps to adapt to the new fundraising environment.

Self-help author Brian Tracy puts it this way:

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