Raise More Money When You Avoid the 7 Deadly Sins of Fundraising

Fundraising success depends on having a good cause. It also requires that fundraisers do things the right way. But, none of that is enough. To successfully raise money, fundraisers must also avoid making costly mistakes, either unknowingly or (and you would never do this, right?) knowingly.

Making mistakes can cause your organization to lose donors and have a difficult time finding new ones. In some cases, one charity’s mistakes can harm the reputation of the entire nonprofit sector causing even innocent organizations to lose support.

Philanthropy researchers have shown us that the more someone trusts a nonprofit organization, the more likely they are to give. Furthermore, the more they trust a charity, the more money they are likely to donate. A report issued by Independent Sector stated:

The public is demanding a greater demonstration of ethical behavior by all of our institutions and leaders ….To the extent the public has doubts about us, we shall be less able to fulfill our public service.”

In short, trust affects both propensity for giving and the amount given. Those who have a high confidence in charities as well as believe in their honesty and ethics give an average annual contribution of about 50 percent more than the amount given by those sharing neither opinion.

You can read more about the research into trust and philanthropy in an article I wrote a number of years ago for the International Journal of Nonprofit and Voluntary Sector Marketing.

For the Association of Fundraising Professionals Ethics Awareness Month,  I wrote a feature article for the October issue of Advancing Philanthropy magazine: “Ethics, Fundraising, and Leadership: Avoid the Seven Deadly Sins of Fundraising.” As I pointed out:

You’re a good person. At the very least, you try to be a good person.

However, that’s not good enough. Effective fundraising demands more of us. Every action we take, no matter how small or large, has the potential to build or erode public trust, which could have a corresponding impact on philanthropic support.

Among other things, being a fundraising professional means you must always strive for excellence while avoiding missteps that could have costly consequences for you and/or your organization. Fortunately, you do not have to endure risky mistakes to learn from them. Instead, thanks to media headlines, you can learn from the mistakes of others.”

In the AFP article, I discuss seven missteps made by real charities. While there are certainly more than seven deadly fundraising sins, my article highlights common issues of concern. For example, conflicts of interest was rated among the top ethical concerns of fundraisers, according to a recent AFP survey. In my article, I explore this issue citing a real-world example:

Do You Want to Know the Latest, Greatest Fundraising Idea?

When I’m invited to speak at professional gatherings, I’m asked frequently to talk about the latest, greatest ideas that will help nonprofit organizations raise more money. I’m never surprised. For many years, I’ve talked with fundraising professionals who attend conferences, participate in webinars, and read publications in a grand quest for the new shiny idea that will result in massive fundraising growth.

Recently, I read some tweets from three fundraising experts related to the search for fundraising’s Holy Grail. While these colleagues and I all embrace innovation, we also share a common belief about what will allow fundraising professionals to be more successful immediately. Here it is:

Master the fundraising fundamentals.

Here’s what T. Clay Buck, CFRE; Andrew Olsen, CFRE; and Tom Ahern all tweeted this month:

Let me demonstrate what I mean by “master the fundamentals.” In a planned-gift marketing seminar I presented 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, some of them 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 responded.

“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 in that vein. The point is that this fellow knew what he should or could be doing, but he was not doing it! He had not fully embraced the fundamentals of planned-gift marketing yet he was searching for new ideas, a planned giving Holy Grail. If he would simply implement one of the ideas I had talked about, his planned giving results would have been much stronger.

The fundamentals matter. To be successful, fundraising professionals need to learn the basics and embrace them. Doing so could add up to billions of dollars 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 do targeted upgrade appeals? Do you effectively steward gifts to ensure a high donor-retention rate? Do you use database analytics to help you better target asks, even in your direct mail appeals?

Do you want more planned gifts? Then tell me, do you have a sophisticated website that allows you to track individual engagement and then rate prospects based on that? Do you use direct mail to generate bequest commitments and leads? Do you use the telephone to generate planned gifts and leads? Do you use surveys to learn more about prospects while engaging them?

Do you want more corporate support? Then tell me, do you offer something of value to your corporate donors or do you simply expect them to “give back”? Do you only go after the usual suspects or do you also approach the profitable, rapidly growing small and mid-size businesses in your community? Do you just ask or do you cultivate and engage as well?

Don’t get me wrong. Once again, I’m a big fan of fresh ideas and cutting-edge research. Again, so are Buck, Olsen, and Ahern. However, learning without doing accomplishes nothing.

Everyone seeking to work as a fundraising professional should learn the fundamentals so they can effectively identify prospects, educate and cultivate them, ask for gifts, and properly steward supporters.

Implementing relatively simple, small changes can yield big results for your nonprofit organization. Virtually every charity has low-hanging fruit. But, you actually have to go and grab it!

Here are five simple steps, that I outlined several years ago, that you can take now:

11 Things You Need to Know When Looking for a New Job

The high-rate of nonprofit staff turnover has been a topic of discussion for decades. Most recently, a Harris Poll study conducted for The Chronicle of Philanthropy and the Association of Fundraising Professionals has fueled the conversation. Harris found that more than half of the fundraising professionals in Canada and the USA that were surveyed say they plan to leave their job within the next two years.

Over the years, much has been written about what it will take to reduce the turnover rate. I even wrote about this in August. Now, I want to look at the issue another way. While it’s important to retain talented staff, we need to acknowledge that staff turnover is a fact of life. Even if the sector manages to do a more effective job retaining employees, the reality is that, eventually, staff will leave their position. You will leave your position.

That got me thinking about what you need to know when the time comes to hunt for a new job. I also thought about what professional recruiters need to know, from a candidate’s perspective, when representing a nonprofit client.

Because I’ve been self-employed since 1982, I didn’t feel quite qualified to write on the subject from a job candidate’s perspective. So, I invited Dan Hanley to share several tips based on his own job searches over the years as well as his encounters with executive recruiters. Dan is CEO and Lead Consultant with Altrui Consulting.

I thank Dan for kindly sharing six tips to keep in mind when looking for a new position as well as five things you should definitely avoid doing. In addition, he shares five suggestions for nonprofits who work with a professional recruiter.

Checkout Dan’s tips and, then, please share your own:

 

If the statistics I read are correct, more than half of nonprofit fundraisers are either looking for a new job or will be soon. Although I am troubled by this, as you might be, I am writing this post based on my experiences with looking for a job and the dozens of peers who are currently looking for their next nonprofit fundraising position.

Back in 2013, I was laid off. I had seen it coming and had a week to prepare before I was called into my boss’s office. My hunch was correct, and one morning I was told even though I was such an awesome guy, I was being laid off. I was handed a check and given the day to pack up and go.

I was grateful that I had already begun to prepare for this. I walked back to my office, called my husband, pulled up the state unemployment website and applied for unemployment. I then logged onto Facebook and told all of my friends and family that I had been laid off and had time for breakfast, lunch, or coffee with them, and that since I was no longer employed they would need to pay.

By the end of the day, I had 68 invitations to breakfast, lunch, or coffee.

Regardless of the reason you are searching for a job, the first thing to know is that you have a lot of support. Most likely, more than you know in the moment. You have your family, friends, former colleagues, peers who you know from work or through social media, etc. Remember this. You are not alone.

I have heard from people smarter than me that the best time to look for a job is when one has a job. Depending on your personal situation, this may or may not be true. The following six suggestions are for anyone looking for their next opportunity, no matter their personal situation:

• Revisit your resume. Then ask a peer to do the same for you.
• Sign up for any job email blasts from local nonprofits, national job search sites, and anyone else who sends out such lists.
• Let everyone know you are looking for a job. Let them know what you envision as your next adventure. For social media platforms, like LinkedIn, you can even make it so recruiters know you are looking and are open to being approached by them.
• If unemployed, get dressed for work every day and dive into your search. I found it invigorating to be in a dress shirt and slacks at 6:30 am while looking for any new job postings.
• Share with others, even if it’s just one other, how you are honestly doing and feeling.
• Be just as active on social media as you were while employed. If you were not active before, become active.

To go with the list of items I suggest you do when in a job search, here are five things I suggest you not do:

It’s All Up to You Now

It’s that time of year once again. It’s the season when most charities raise the most amount of money, perhaps because that’s when most fundraising activity happens. However, how tough will it be to raise money as the end of 2019 approaches?

You might be concerned about a recession on the horizon. You should be. We’re experiencing a record for sustained economic growth that quite simply can’t go on forever. A recession is bound to hit eventually even without factoring in trade wars, political turmoil, disruptions to the global oil supply, and the threat of foreign wars.

Among ultra-wealthy Americans, those with an average worth of $1.2 billion, 55 percent believe the US will enter a recession within the next year, according to the UBS Global Family Office Report. About 45 percent of respondents are sufficiently concerned that they are boosting their cash reserves, and 45 percent are realigning their investment strategies to mitigate risk.

While recession fears loom, a major economic downturn has yet to take shape. In other words, the economic climate is currently good from a fundraiser’s perspective. Could it be better? Sure. Always. But, it’s plenty good enough for you to anticipate a successful year-end fundraising effort. Consider some of the following six economic factors (as of Oct 4, 2019):

Gross Domestic Product. GDP is growing at a rate of 2.0 percent. Overall philanthropy historically correlates closely with GDP. So, if GDP goes up, we can anticipate that philanthropic giving will also increase.

Unemployment. The national unemployment rate is 3.5 percent, the lowest since 1969. If more people are working, more people will likely have funds with which they can donate.

Wages. Wages have increased 2.9 percent over 2018. Individual giving closely correlates to personal income. So, if personal income is rising, we can anticipate a rise in individual philanthropy.

Stock Market. The stock market, while volatile, has been performing well. This year, the Dow is up 13.92 percent, the NASDAQ is up 20.30 percent, and the S&P is up 17.76 percent. This is good for fundraising for two important reasons worth mentioning here. First, stock growth means that foundations and donor-advised funds will have more money with which to donate. Second, many individuals own stocks that have appreciated in value. When donating appreciated stocks, individual donors can avoid capital gains tax. In other words, even if someone can’t claim a charitable gift deduction under the current tax code, they can still derive a tax benefit by contributing appreciated securities.

The 4 Pillars of the Donor Experience

Your nonprofit organization has a serious problem. While you are expending enormous energy to attract, retain, and upgrade donors, things aren’t working out as well as they could. As a sector, charities are doing a horrible job of hanging on to supporters.

Let’s be clear. The low retention rate among donors is not their fault. Instead, the fault rests with charities that do not ensure a donor experience that inspires long-term commitment.

Fortunately, there’s something you can do about this. You can enhance the experience of your donors and thereby increase your chance of retaining them and upgrading their support. A new book by Lynne Wester, The 4 Pillars of the Donor Experience, will show you the way.  Lynne is the principal and founder of Donor Relations Guru  and the DRG Group. In addition to her books and workshops, she created the Donor Relations Guru website to be used as a unique industry tool filled with resources, samples and thought leadership on donor relations and fundraising.

I first encountered Lynne several years ago at an Association of Fundraising Professionals International Conference. She was leading a mini-seminar in the exhibit hall hosted by AFP. As I was walking past, her talk stopped me in my tracks. She was entertaining while talking about a subject that seldom is properly addressed at fundraising conferences. And her thoughts about donor relations resonated with me. I’ve been a fan ever since.

Lynne’s latest book, which is graphically beautiful and accessible, breaks down the philosophy of donor engagement while providing concrete strategies, tangible examples, and a whole slew of images and samples from organizations across the nation who are doing great work. The book is interspersed with offset pages that really drive home the theories outlined and provide specific examples that nonprofit professionals constantly crave and request. You’ll find key metrics, team activities, survey questions, and so much more. If you want to improve your organization’s donor retention rate, get Lynne’s book and improve the donor experience.

I thank Lynne for her willingness to share some book highlights with us:

 

When I sat down to write The 4 Pillars of the Donor Experience, I wanted it to be a continuation of our thought work in The 4 Pillars of Donor Relations. But honestly, I wanted it to be a book that was read beyond donor-relations circles and practitioners and instead shared across departments and read widely by the nonprofit community.

Why? Because we have a huge problem facing our sustainability in nonprofits and that is donor retention. With first-time donor retention rates hovering below 30 percent, and overall donor retention less than 50 percent, we are in danger of losing our donor bases. We see this in the fact that 95 percent of our gifts come from five percent of our donors and, in higher education, the alumni giving rate is falling each and every year. My belief is that most of these declines can be attributed to our behavior and our insistence on ignoring the donor experience.

The donor experience is everyone’s responsibility and it requires much more than a thank you letter and an endowment report. It is a mindset. The four pillars—knowledge, strategy, culture, and emotion—can be applied in a wide variety of areas.

Knowledge is essential because it lays the foundation for all of our actions with donors. Far too often, we make dangerous assumptions that affect the donor experience. Getting to know your donors is essential. Look beyond the basic points of information and dig into a donor’s behavior and also communication preferences. Gathering passive intelligence is inextricable from the practice of crafting the donor experience. Seeking active intelligence is essential. What information are you gathering through surveys, questions, and intelligence gathering? Intentional feedback can help you prove your case for additional human and financial resources, new programs or initiatives, and gives you new content and activity to test.

In addition, consider how you can use this information to enhance the donor experience for all donors, regardless of level. Curiosity and tenacity are encouraged in this space. Being intentional is a mindset, a new way of operating and data drives all that we do. It’s your responsibility to gather as much data as possible to help build the strategic case for your donors and their experience.