Archive for ‘Fundraising’

March 18, 2019

Free Webinar: 5 Easy, Powerful Tips to Boost Planned Giving Results

Is the current environment good or bad for planned giving? Should you invest more money in planned giving or current giving? What are five easy things you can do now to boost your planned giving results? In an upcoming, free webinar, I’ll answer these questions as well as inquiries from participants.

I’m honored that SEI Investments Management Corporation is hosting me for the free, 30-minute webinar: “Investing in Your Future: Practical Strategies for Growing Your Planned Giving Program.”

Planned giving is a vital source of contributions for the nonprofit sector. Organizations that don’t have a gift-planning program envy those that do — and those that do want even better results. While it can certainly present challenges, there are simple things you can do to create or enhance your organization’s gift-planning efforts. In just a 30 minutes, you’ll learn:

  • 8 reasons you should be a planned giving “opportunist”
  • Why you should invest more in planned giving instead of current giving
  • 5 Tips to boost your planned giving results immediately

In addition, all participants will receive a complimentary selection of planned giving tools to help with strategy building.

Register today for this free webinar because the valuable information provided will help you meet your goals. After you register, think about the questions that you’d like to have me address during the live Q&A portion of the presentation.

Here are the details you need to know:

read more »

March 15, 2019

5 Tips You Need to Know to Survive Funding Volatility

It’s no secret that nonprofit organizations face funding challenges. One of the biggest challenges is volatility. Donors give and often do not renew support. Sometimes, that’s the fault of the charity. Other times, it has nothing to do with what a charity does or does not do. For example, funding from government sources, whether contracts or grants, can go up or down depending on political whims and changing priorities.

Recently, I was doing research for an article I was developing for the January issue of Advancing Philanthropy, the magazine published by the Association of Fundraising Professionals. While doing that, I identified five tips that can help all nonprofits better cope with funding volatility despite the fact that the article focuses on poverty-fighting charities.

Let me explain. As I wrote in my article:

Globally, poverty has been on a sharp, steady decline. ‘In 1990, 37 percent of humanity lived in what the World Bank defines as extreme poverty; today that number is 10 percent,’ writes Gregg Easterbrook, author of It’s Better Than It Looks: Reasons for Optimism in an Age of Fear. Yet, even given that good news, nearly one billion people continue to suffer in extreme poverty around the world.

In the United States, poverty has also been on the decline while individual purchasing power has been on the rise. For example, ‘On the first day of the twentieth century, the typical American household spent 59 percent of funds on food and clothing. By the first day of the twenty-first century, that share had shrunk to 21 percent,’ Easterbrook reports. ‘US poverty has declined 40 percent in the past half-century.’ Still, despite the enormous economic progress, poverty continues to darken the lives of millions of our fellow citizens.”

While charities continue their efforts to combat poverty and its effects, government funding is becoming increasingly unreliable. With the national debt over $22 trillion and climbing, the federal government is contemplating cutbacks. Already, some state governments have been cutting back funding to charities.

Here are five tips that poverty-fighting charities are embracing that all charities would be wise to also adopt:

read more »

February 26, 2019

Inspired by Lady Gaga: 10 Ways to be a Fundraising Genius

You might never have heard of Stefani Germanotta. Yet, she is known internationally as a top recording artist, nine-time Grammy Award winner, social activist, and philanthropist. Following the 91st Academy Awards, we now also know her as an Oscar winner.

You, as her millions of fans around the world, likely know her better as Lady Gaga.

Jesse Desjardins, when he was Social Media Manager for Tourism Australia, recognized that Lady Gaga is more than a singer. He recognized that she is even more than an entertainment genius. He understood that marketing and public relations professionals could learn from her, so he put together an interesting PowerPoint presentation, “10 Ways to be a Marketing Genius Like Lady Gaga.” When I saw the slides, I believed that fundraising professionals could also learn a great deal from her. Thanks to permission from Desjardins, I’m able to share 10 useful insights with you.

1. Have an Opinion

“Gaga regularly speaks out on issues she feels strongly about. In doing so, she keeps herself in the public eye.”

By speaking out, Gaga makes certain no one forgets her. She remains relevant. She advances the issues that she finds important. She engages her fans.

Your organization has an important mission. Let supporters and potential supporters hear about it beyond those times that you ask for money. Stay in front of them. Remain relevant. Engage people year-round while advancing your organization’s mission. Communicate about issues relevant to your organization’s mission. Ask supporters to help in ways that don’t involve giving money (e.g., volunteer, call elected officials, etc.). Share information people will want and appreciate.

2. Leverage Social Media

“Gaga has worked tirelessly on accumulating over [78] million Twitter followers and [55] million Facebook fans.”

To put that into perspective, there are only five people on the planet who have more Twitter followers. In other words, tens of millions of people want to hear what Gaga has to say, and she says things people want to hear. She speaks to people where they are.

Today, people consume information in more ways than ever before, and how they do it varies by age group. You need to be where they are if you want your message heard. Understand the demographics of your supporters and potential supporters and learn what media they consume. Then, be there with relevant, meaningful information.

3. Be Different

“Differentiate wisely. There are too many normal people doing normal things. Show, don’t tell. You are extraordinary so show it.”

You’re not alone. Unless you work for an exceedingly rare charity, others have the same or similar mission as your organization. What makes your organization special? Why should people care about your organization instead of the others that do similar things? You need to address those questions if you want to capture hearts.

4. Don’t be Afraid to Make Lots of Money

“Being starving is not fun. If making a ridiculous amount of cash is what you want to do, go for it.”

If your organization relies on donations to fulfill its mission, don’t be shy about doing what it will take to get the funds your organization needs. Don’t be afraid to ask people for money. When people ask you what you do for a living, answer them with pride.

5. Give Your Fans Something to Connect With

“Gaga calls her fans Little Monsters and gives them a shared symbol. The official Little Monster greeting is the outstretched ‘monster claw’ hand. This allows fans to identify each other and connect.”

No, you don’t need to create a secret handshake for your supporters. However, you should create a sense of belonging. People would rather join a cause, a movement for change, than simply give money to a dusty institution. Provide people with easy ways to connect with you. Give them opportunities for meaningful engagement as a way to build connection.

read more »

February 20, 2019

Are You Ignoring an Essential Step in the Fundraising Process?

These are challenging times for fundraising professionals. Fewer people are giving to charities. Donor retention rates continue to fall. Volunteerism is down which negatively affects current and planned giving.

Despite those challenges, and more, many nonprofit organizations continue to ignore the one simple thing that would help them retain more supporters and raise more money. It’s an essential, though often ignored, step in the fundraising process.

At the heart of February rests a special time for many: Valentine’s Day. It’s a celebration of love. Unfortunately, when it comes to how nonprofit organizations show love to donors, at this or any other time of year, many do a poor job. That’s the opinion of veteran fundraiser Mark Chilutti, CFRE, Assistant Vice President of Development at Magee Rehabilitation Hospital – Jefferson Health.

Mark wants to help his fellow fundraisers do a more effective job when it comes to Donor Stewardship. So, he will be presenting “New Trends in Donor Stewardship: Saying Thank You All Year Long” at the Association of Fundraising Professionals International Conference, April 2, 2019, 10:15-11:30 AM. Mark notes:

We all know that relationship building is the key to our success as fundraisers and this session will provide participants with unique and creative ways to stay in touch with donors on a year-round basis. Real life examples will include successful Board thank you call scripts, creative pictures and notes about donors’ gifts in action, how to create a Stewardship/Impact Report, and more.”

Now, Mark generously provides us with a preview of his upcoming presentation along with three powerful tips that you can immediately put to use to strengthen your development program. I thank Mark for sharing his helpful insights here:

 

I’m passionate about donor stewardship. I think the reason this topic is so important to me is because I have seen more bad examples of donor stewardship than good ones. I also believe that stewardship is a lost art. We often hear that the next time the donor hears from a fundraiser is when the fundraiser is asking them to give again.

Because I work at a small place, our major donor pool isn’t very large. I have always believed that after working hard to secure a gift, I have to then channel that same energy into letting my donors know just how much I appreciate them and the impact that their gift has made for our patients, programs, and services. I do this in a variety of ways, and they all are easy and inexpensive!

We always strive to get the “official” thank you out within 72 hours, but that’s just the beginning. Depending on the size of the gift, the donor might also receive an email, a card, a call, or sometimes; all three. My CEO prefers to send handwritten cards, while my Board Chairman is happy to pick up the phone. They both are effective and appreciated, which is why I struggle to understand why more organizations don’t do this.

My work doesn’t end there, though, and I use simple creative ways to stay in touch all year. While strolling through the hospital, I’ll often snap a quick picture of a patient using a piece of equipment or a donor-funded program happening, and I can then send that in an email saying, “Saw the equipment you funded being used by a patient today and just wanted to say thanks again!” This type of email usually gets a quick response telling me I made their day or how good they feel to know their gift made an impact.

I also make sure that staff outside of the Development Department is involved in the thank you process, too, by having them write cards or take pictures that I can send to donors. We also engage patients and family members in this process, and whatever they write is so much more meaningful, as it comes from the heart.

These are just a few of the tips I will present in my session at AFP ICON as I share things that an organization of any size can do easily to make their donors feel appreciated. My hope is that participants in the session will be taking notes and taking lots of ideas back home to put into place right away.

If you won’t be at AFP ICON, I’ll leave you with these three easy tips to help you raise your game in Donor Stewardship:

read more »

February 14, 2019

Valentine’s Day Holds the Secret to Fundraising Success

As I write this post, Valentine’s Day has arrived once again. Originally a religious feast day, it has evolved into also being a cultural and commercial celebration of love.

So, what does that have to do with fundraising? Everything!

Think about it. The very word philanthropy means love of humankind. Passion, caring, and relationships are essential to romantic love. They are also vitally important to the fundraising process.

If you treat your donors like an ATM (cash machine), they likely won’t be your donors for long. By contrast, if you understand and tap into their philanthropic passions, show them you care about their needs, and develop a relationship with them, they’ll be more likely to renew their support and even upgrade their giving over time.

When volunteers, and even fundraising professionals, are fearful of asking for contribution, it’s probably because the organization is placing too much of an emphasis on asking and focuses too little on relationship building.

Let me be clear. Fundraisers who fail to develop relationships are simply beggars while those who build relationships, as well as ask for gifts, are development professionals.

When it comes to major-gift and planned-gift fundraising, relationship building is particularly important. Gail Perry, President of Fired-Up Fundraising, recently addressed this issue artfully in a terrific #Gailism that she has allowed me to share with you:

Developing relationships with major and planned-gift donors and major and planned-gift prospects allows us to:

read more »

February 5, 2019

An Inspiring Philanthropy Tale for Black History Month

February is Black History Month. Frankly, I don’t like the occasion.

Let me explain.

We should not need a special month to recognize and celebrate Black History. We should learn Black History every month. For that matter, we as Americans should spend more time learning history in general. We would benefit by learning more of our history, with its complexity and diversity. The insights, perspectives, and inspiration of studying history are invaluable and provide much needed context for current events.

Now, since it is Black History Month, I want to share the true story of an amazing philanthropist who died 20 years ago. Her tale demonstrates the power of philanthropy, the value of solid donor stewardship, and the important partnerships that financial advisors and development professionals can form to serve donors better. I first presented this story in my award-winning book, Donor-Centered Planned Gift Marketing:

Oseola McCarty was a quiet, 87-year-old African-American woman living in Haittesburg, Mississippi. Even as a young child, she worked and she saved.

Oseola McCarty

“I would go to school and come home and iron. I’d put money away and save it. When I got enough, I went to First Mississippi National Bank and put it in. The teller told me it would be best to put it in a savings account. I didn’t know. I just kept on saving,” McCarty said.

Unfortunately, when McCarty was in the sixth grade, her childless aunt became ill. McCarty left school to care for her and never returned to school. Instead, she spent a lifetime earning a living by washing and ironing other people’s clothes. And, she continued to save what she could by putting money into several local banks. She worked hard, lived frugally, and saved.

Nancy Odom and Ellen Vinzant of Trustmark Bank worked with McCarty for several years, not only helping her manage her money but helping look after her personally. They eventually referred her to Paul Laughlin, Trustmark’s assistant vice president and trust officer. “In one of our earliest meetings, I talked about what we could do for her,” Laughlin said. “We talked about providing for her if she’s not able. Then, we turned naturally to what happens to her estate after she dies.”

read more »

January 29, 2019

Are Donors Abandoning You, Or Are You Abandoning Them?

Donor retention rates for both new and renewing donors remain pathetically low and, actually, continue to decline. There are a number of reasons for this, many of which I’ve addressed in previous posts. However, just recently, I learned of a situation I had not considered previously. So, I want to make sure you’re aware of the problem and understand how to easily fix it.

I heard about the problem from The Whiny Donor, a thoughtful donor who uses Twitter to generously provide fundraising professionals with feedback and insights from a nonprofit-contributor’s perspective.

https://platform.twitter.com/widgets.js

The Whiny Donor wrote, “In December, we gave through our DAF to several nonprofits that we had supported for many years with direct donations. I suspect several of them won’t have the capacity to make the connection, and will now consider us lapsed donors…. Which means they will change the way our relationship moves forward. They will think we didn’t support them; we will think we have. It’s a stewardship conundrum.”

As a philanthropic tool, Donor Advised Funds offer people a number of financial advantages compared to giving directly to nonprofits or not giving at all. At the end of 2018, we saw significant growth in the number and size of DAFs, in part, as a result of the new tax code.

While donors can benefit in a variety of ways from using a DAF to realize their philanthropic aspirations, the use of DAFs can create a stewardship challenge for charities:

  • Should the charity thank the DAF or the individual supporter?
  • Who should the charity continue to steward, DAF or individual?
  • How should the charity track and report the donation?
  • Does the charity’s software help or hurt these efforts?

The Whiny Donor worries that charities will recognize the DAF and ignore the role she and her husband played in securing the gift. She fears some organizations will assume she has abandoned them when, in fact, she has not.

This is a very real concern. As DAF giving becomes more common, I’ve heard many examples of how nonprofit organizations have stumbled. Some thank the individual, but not the DAF. Some thank the DAF, but not the individual. Some thank both the individual and the DAF. Some don’t thank either or thank in the wrong way.

Here’s what you need to know: The DAF is the donor. The individual is not the donor when the gift comes from a DAF. Because of the way DAFs are structured and the laws regulating them, individuals can only make a contribution recommendation to the DAF administrator (e.g., Fidelity Charitable, National Philanthropic Trust, Schwab Charitable, etc.).

Because the DAF is the donor, you should thank and send receipts to the DAF. However, as The Whiny Donor suggests, that’s not good enough. You should also thank the individual who recommended the DAF gift.

read more »

January 24, 2019

Here are Some Things You Need to Know

Now that the 2018 year-end fundraising season has closed and you’ve had a moment to catch your breath, I want to share some things with you that you might have missed.

To begin, here is a list of my top ten most read posts published last year:

  1. How Bad is the New Tax Code for Your Charity?
  2. It’s Time to Stop Whining about Donor-Advised Funds!
  3. 9 Hard Truths Every Fundraiser Needs to Face in the 21st Century
  4. New Charitable Gift Annuity Rates Announced
  5. Jerold Panas (1928-2018), He Will Be Missed
  6. Setting the Record Straight about Jimmy LaRose
  7. Will One Charity’s Surprising Year-End Email Make You Look Bad?
  8. The Dark Side of the Fundraising Profession
  9. How to Get Last Year’s Donors to Give More this Year
  10. Avoid the 7 Deadly Sins When Working with Volunteers

Here’s a list of just five of my older posts that remained popular in 2018:

  1. Can a Nonprofit Return a Donor’s Gift?
  2. Can You Spot a Child Molester? Discover the Warning Signs
  3. Here is One Word You Should Stop Using
  4. 5 Things Never to Do in Your Phone Fundraising Calls
  5. Special Report: Top 40 Most Effective Fundraising Consultants Identified

I invite you to read any posts that might interest you by clicking on the title above. If you’ve read them all, thank you for being a committed reader.

Over the years, I’ve been honored to have my blog recognized by respected peers. I’m pleased that, among the thousands of nonprofit and fundraising sites, my blog continues to be ranked as a “Top 75 Fundraising Blog” and as a “Top Fundraising Blog – 2019.”

To make sure you don’t miss any of my future posts, please take a moment to subscribe to this site for free in the designated spot in the column to the right. You can subscribe with peace of mind knowing that I will respect your privacy. As a special bonus for you as a new subscriber, I’ll send you a link to a free e-book from philanthropy researcher Russell James, JD, PhD, CFP®.

In 2018, I was pleased to have two of my articles published in Advancing Philanthropy, the official magazine of the Association of Fundraising Professionals:

read more »

January 15, 2019

Have You Done Something Stupid to Alienate Donors?

As 2018 drew to a close, my wife and I received a few good emails from nonprofit organizations. I even highlighted one of those in a recent blog post. Unfortunately, we received far more fundraising appeals that I can only describe as stupid.

The garbage email appeals simply mentioned that December 31 was fast approaching and, therefore, I should donate to that particular charity while there was still a chance to do so in 2018. Doing multiple count-down to year-end emails simply magnified the annoyance.

So, what’s the problem with that? Let me make it simple and clear:

The calendar is not a case for support!

Jack Silverstein, Vice President of Financial Development at the National Capital Region YMCA-YWCA (Ottawa, Canada), shares my frustration over this. He recently posted his views in “People Know When the End of the Year Is!!!” I encourage you to read it though it does contain a word some may find offensive.

Because I agree with Silverstein, I want to provide some highlights for you.

Your prospects and donors know when the year ends. They don’t need you to remind them. They’re not idiots.

With most charities engaged in year-end fundraising, people want to know why they should give to your nonprofit organization and why they should do so at the end of the year. The mere fact that it is year-end is not a reason. People can donate to any charity at year-end or, for that matter, at any time of year. You need to inspire them to give to your organization. In other words, you need to make a case for support.

A related mistake that charities frequently made was to highlight the tax-deductibility of donations. In the USA, some have estimated that as few as 10 percent of taxpayers will itemize. It’s only that small population that might be able to take advantage of the tax-deductibility of a contribution. However, even among that population, tax benefit is a low ranking reason why people donate. Furthermore, it’s no reason whatsoever why they should donate to your organization; after all, people can get the same tax benefit by donating to any qualified charity.

When charities send such terrible appeals, they are not being donor centered. Instead, Silverstein asserts:

read more »

December 13, 2018

Will One Charity’s Surprising Year-End Email Make You Look Bad?

This week, I received a surprising email from a national charitable organization. The email was so unusual that I need to tell you about it.

Like you, I’m deluged by emails from charities that arrive from the days leading up to #GivingTuesday through December. Most of the messages are from nonprofit organizations that forgot about me all year except now that they want my money. Most care nothing about me. None offers to help me or be of service to me. Most of the emails are just terrible.

One awful email came with the subject line, “Welcome to [I’m deleting the name of the organization].” Sounds nice enough, right? There’s just one tiny problem. I’ve been a donor for decades and even did a tour of duty as a trustee of the large organization. Ugh!

Given the garbage in my email Inbox, I was a bit relieved when I received a remarkable email from the Charities Aid Foundation of America.

WARNING: The email is so wonderful that it just might make you and your organization look bad.

Look for yourself, then I’ll explain why this is a near-perfect email and why you should immediately do something similar before it’s too late:

[Note, the actual email formatting was a bit better than the image I was able to capture for you. Ah, technology!]

Let me explain why this email works so well.

read more »

%d bloggers like this: