Archive for ‘General Nonprofit’

April 16, 2018

Are Donors the Hidden Enemies of Charities?

Donors are not usually the enemies of nonprofit organizations. Instead, they are the friends who provide much needed resources allowing charities to save lives and enhance the quality of those lives.

However, some donors at some times do become the enemy of the good. They behave in ways that humiliate and, at times, even endanger those with less power. That’s one of the disturbing findings of a new survey report sponsored by the Association of Fundraising Professionals and The Chronicle of Philanthropy and produced by Harris Polling.

Among nonprofit professionals surveyed, 25 percent of women and 7 percent of men say they have been sexually harassed. Of the harassment incidents cited, 65 percent of the perpetrators were donors with the balance being colleagues, work supervisors, and organization executives. Harassers are most often men (96 percent). The median number of sexual harassment occurrences personally experienced by survey respondents is three (which is why some of the statistics in the report add up the way they do).

“Harassment is always about power, so the results here might indicate that the real power in these organizations rests with the donors,” Jerry Carbo, a professor at Shippensburg University who served on a federal committee studying harassment in the workplace in 2015 and 2016, told The Chronicle. “I would normally expect to see a much higher response rate for supervisors.”

The most common types of sexual harassment experienced in the fundraising profession include: inappropriate comments of a sexual nature (80 percent), unwelcome sexual advances and requests for sexual favors (62 percent), and unwanted touching or physical contact (55 percent).

Mike Geiger, MBA, CPA, President and CEO of AFP, commented on the alarming findings:

The number of cases involving donors is eye-opening and points to a unique and very troubling situation within the profession. As we look at how to proceed with the data from the survey and begin developing anti-harassment education and training for fundraisers and others in the charitable sector, we will have a special focus on the all-important donor-fundraiser relationship. We know most donors have only the best interest of the cause at heart, but our message will be clear: no donation and no donor is worth taking away an individual’s respect and self-worth and turning a blind eye to harassment.”

Sadly, many nonprofit organizations fail to take appropriate action when they receive reports of sexual harassment, regardless of whether the perpetrators were donors or fellow staff. Consider the following:

read more »

Advertisements
April 13, 2018

Why are Fundraising Results Missing the Mark?

The nonprofit sector has an unfortunate secret. While not a well-kept secret, it is nevertheless something that receives too little attention. So, let’s take a moment to shine a spotlight on the issue.

Overall, American philanthropy has remained at approximately two percent of Gross Domestic Product for over six decades, with the percentage bouncing between 1.6 and 2.3 percent, according to Giving USA. Every year when the amount of money donated to charities goes up, the nonprofit sector pats itself on the back even though it is merely keeping pace with GDP.

Despite the massive growth in the number of nonprofit organizations, the significant increase in availability of educational materials, the production of helpful research, the professionalization of the fundraising field, and the rise of new technologies, the nonprofit sector has failed to budge philanthropy relative to GDP.

Now, as a committee convened by The Giving Institute begins to consider ways to grow philanthropy beyond the two-percent-of-GDP mark, I’ve written an article for the Association of Fundraising Professionals magazine, Advancing Philanthropy, that explores the challenge: “What Will It Take to Dramatically Increase Philanthropy?”

To answer that question, we need to understand how and why past attempts to do so have come up short, such as the insightful work of the Commission on Private Philanthropy and Public Needs in the 1970s.

We also need to understand the broad societal cultural factors that are affecting philanthropy so that we can develop strategies for inspiring cultural change and/or adapt to factors beyond our control (e.g., decline in religious affiliation, erosion of social capital, drop in volunteerism, etc.). Furthermore, we need to understand the cultural issues within the nonprofit sector that block change and, ultimately, greater success.

We also must set a realistic, consensus goal for moving the philanthropic needle. While that goal should be bold, it should also be based on something other than a dream. A credible target mark will give us all something to shoot for.

As Henry David Thoreau once wrote:

In the long-run, [people] hit only what they aim at.”

While it will likely take at least a couple of years for The Giving Institute’s commission to do its work, you and I do not need to wait. There are things we can do now to begin to move closer to a more vital philanthropic mark, something greater than two percent of GDP:

read more »

March 8, 2018

Update: Is the Nonprofit Sector Ignoring the #TimesUp Movement?

I’m surprised. You might be, too.

At the end of last month, I published the post “#TimesUp Alert: Nonprofit Organizations are Not Immune.” The post is one of my least read articles so far this year. By comparison, several old posts that I have not promoted for a long time have attracted far more readers during the past week. Given the seriousness of workplace sexual harassment and assault, I am disappointed that my post on the subject has not received more attention.

Please don’t misunderstand me. I’m not whining. I’m simply concerned that an important, timely issue facing the nonprofit sector is apparently of little interest to fundraising professionals and nonprofit managers.

Why do you think my previous #TimesUp post has attracted so few readers?

It could be that folks do not believe it’s really a significant issue for the nonprofit sector; after all, we do good so we must be good. Or, it could be that nonprofit professionals don’t believe they have the power to bring change to their organizations, so they don’t bother thinking about it. Or, it could be something else. What do you think?

Interestingly, the percentage of post readers who responded to my one-question anonymous survey was above average. While the broader universe of potential readers might not have been interested in the article, those who did read the piece were highly engaged.

The poll was admittedly unscientific. Nevertheless, I owe it to those who responded to share the results:

read more »

February 27, 2018

#TimesUp Alert: Nonprofit Organizations are Not Immune

The nonprofit and philanthropic communities are not immune. We must face a sad truth: Sexual harassment and assault do not exist exclusively in Hollywood or even just the broader for-profit sector. The problems also fester in the nonprofit and philanthropic sphere. The issue is so serious for the nonprofit sector that the Association of Fundraising Professionals has recently issued a clear statement and planned steps to address the situation.

The victims of Harvey Weinstein made the world aware, in 2017, of the Hollywood movie mogul’s alleged despicable acts of sexual harassment and assault. The revelations led to the #MeToo social media movement that put the spotlight on other alleged perpetrators in the film and other industries.

As the year ended, the #MeToo movement evolved into the #TimesUp initiative. Megan Garber, writing in The Atlantic, described the transition this way:

The simple shift in hashtag, #MeToo to #TimesUp, is telling: While the former has, thus far, largely emphasized the personal and the anecdotal, #TimesUp — objective in subject, inclusive of verb, suggestive of action — embraces the political. It attempts to expand the fight against sexual harassment, and the workplace inequality that has allowed it to flourish for so long, beyond the realm of the individual story, the individual reality.”

The #TimesUp Legal Defense Fund, part of the new movement, set an initial $15 million goal, now $22 million. As of this writing, over $21 million has been raised from nearly 20,000 donors through GoFundMe.

Within the nonprofit sector, it’s easy for us to have a false sense of comfort. Some may believe others are addressing the problem adequately. Others may believe the problem is not that widespread among nonprofits because they are inherently good because they do good.

Unfortunately, there is ample anecdotal and statistical evidence demonstrating that the nonprofit sector faces the same situation as the rest of society when it comes to sexual exploitation, harassment, and assault. Wherever some people hold power over others, the door is open to sexual harassment and assault.

Consider just a few examples:

The Presidents Club. Over the years, this organization has raised over 20 million British pounds for various children’s charities in the UK. The cornerstone fundraising activity of this UK-based charity has been an annual gala for over 300 figures from British business, finance, and politics. On January 18, the group gathered at the prestigious Dorchester Hotel in London where they were joined by 130 hostesses.

A Financial Times investigative report found:

All of the women were told to wear skimpy black outfits with matching underwear and high heels. At an after-party many hostesses — some of them students earning extra cash — were groped, sexually harassed and propositioned.”

I can’t do this story justice. Please take a few moments to read the full Financial Times article. It’s stunning. Since the report was published, The Presidents Club has ceased operations.

Oxfam. Large international charities are not immune to scandal either. Oxfam officials this month released the findings of an internal investigation that found its country director for Haiti hired “prostitutes” during a relief mission in 2011. Furthermore, in 2016 and 2017, Oxfam dealt with 87 sexual exploitation cases as well as sexual harassment or assault of staff, according to a report in Devex. While the Haiti country director has resigned and Oxfam has taken steps to avoid exploitation and harassment in the future, the negative public relations and philanthropic fallout have been significant.

Humane Society of the United States. Wayne Pacelle, Chief Executive Officer of the Humane Society, resigned following sexual harassment charges filed against him, according to The New York Times. While Pacelle maintains his innocence, he also faced allegations of sexual relationships with subordinates, donors, and volunteers going back years.

While the anecdotes are alarming, they don’t really help us understand how vast the problem is. So, let’s look at the numbers. In the USA, nearly 1200 sexual-harassment claims were filed with the Equal Employment Opportunity Commission against nonprofit organizations between 1995 and 2016, according to a report in The Chronicle of Philanthropy. While a significant number, it likely only reflects a modest percentage of actual cases, most of which go unreported or are only reported internally.

read more »

February 22, 2018

What do Abraham Lincoln and Jennifer Lawrence have in Common?

President Abraham Lincoln and actress Jennifer Lawrence each learned something that can help your fundraising efforts. Before I tell you what that is, let me share a bit of history with you.

Earlier this week, the USA celebrated Presidents Day. Congress originally established the Federal holiday to commemorate the birth of George Washington, the nation’s first President, born on Feb. 22, 1732. At some point, the holiday also began to include Lincoln, born on Feb. 12, 1809. Then, all of the US Presidents were lumped into the holiday. Well, sort of. Despite its commonly excepted name — Presidents Day — it remains officially Washington’s Birthday.

To honor a President this week, I thought I’d share some wisdom from one of them. Then, as I was preparing to write this piece, I stumbled upon an article about Lawrence, and realized she has learned the same lesson as Lincoln.

Paraphrasing 15th century poet John Lydgate, Lincoln is believed to have stated:

You can please some of the people some of the time, all of the people some of the time, some of the people all of the time, but you can never please all of the people all of the time.”

Lawrence, definitely in a different league than Lincoln, has nevertheless learned the same lesson. While she likely had this insight well before this year’s British Academy of Film and Television Awards, she had a reminder of it resulting from an interview hosted by Joanna Lumley.

Lumley introduced Lawrence by saying, “And we start with the award for Outstanding British Film and who better to kick the whole evening off than the hottest actress on the planet? Soon to be seen in ‘Red Sparrow,’ it’s the ravishing Jennifer Lawrence.” The American actress then came out and modestly said, “Hi. That was a bit much, but thank you, Joanna.”

Following the exchange, the social media battle began. Some people thought that Lawrence was being “discourteous,” “a spoiled brat,” “rude,” and more. On the other side, there were plenty of people who sided with the actress with one even questioning, “How is that rude?”

Lincoln Memorial

Yes, you can never please all of the people all of the time.

That’s an important lesson for all of us.

Your fundraising plan will not make everyone happy. Your direct mail copy will not make everyone happy. The graphic design for your annual report will not make everyone happy.

At some point in your career, likely far more than once, you’ll hear, “We can’t do that here. We’ve never done it that way.” You might even have someone in upper management comment negatively on your direct-mail appeal because it’s not how she would write a letter to a friend — “Do you really need to use bullets and boldface?”

You get the idea.

You just need to understand that you will never make everyone happy all of the time. When confronted by senseless criticism based on emotion rather than knowledge, keep these five points in mind:

read more »

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:

read more »

January 12, 2018

Hang-on to the Holiday Spirit with FREE Gifts and Resources to Raise More Money!

For most of us, whether we observe Hanukkah, Christmas, or just the New Year, the holiday season is an uplifting time full of joy. However, the same cannot always be said of the post-holiday period, according to Linda Walter, LCSW. Her article in Psychology Today cites many reasons for the post-holiday blahs, for some, even depression.

As an antidote for the after-holiday letdown, I want to share several free resources with you that just might help you keep the holiday spirit going while also helping you raise more money in 2018.

The Donor-Advised Fund Widget. For starters, let me tell you about the Donor-Advised Fund Widget created and offered free-of-charge by the generous folks at MarketSmart. This useful, free gift will help you continue to celebrate the season and raise more money for your nonprofit organization.

When it comes to fundraising, a general rule is: Make it easy for people to give your organization money. You probably already do this in a number of ways. For example, your organization probably allows donors to place gifts on their credit card, mail a check in a business reply envelope you supply, give online, or contribute when they buy products (e.g., Amazon Smile).

So, why not also make it easy for someone to recommend a donation from his or her DAF account?

Rather than viewing DAFs as enemies that divert vitally needed funds away from charities, nonprofit organizations should view DAFs as a great fundraising opportunity. Unfortunately, the problem is that nonprofits have not made it easy for people to donate from their DAF accounts…until now.

Greg Warner, Founder and CEO of MarketSmart, says:

Amazon is successful primarily because they make it easy to buy stuff. Similarly, if nonprofits just made it easy to transfer DAF money, the bottleneck would get un-clogged. But no one was stepping up. So I did!”

The DAF Widget goes on your organization’s website. Your donors with DAF accounts then can easily find their account management company from a comprehensive list of over 800 service providers. Then, they simply click to go directly to their DAF management company’s website where they can enter the relevant information to make a donation recommendation for your organization. To see the widget live, visit the Navy-Marine Corps Relief Society website by clicking here.

DAFs are an increasingly valuable source of donations for charities. Consider the following market-wide insights from The National Philanthropic Trust 2017 Donor-Advised Fund Report:

  2012 2016
Number of DAF Accounts 204,704 284,965
Total Assets in DAF Accounts $44.71 billion $85,15 billion
Grants from DAF Accounts $8.5 billion $15.75 billion
Ave. DAF Asset Size $218,413 $298,809

To put the above figures into context, non-corporate private foundations gave $45.15 billion to charities in 2016. By contrast, donations made from DAFs totaled $15.75 billion that same year, equating to roughly one-third (34.8 percent) of the estimated amount granted by non-corporate private foundations.

In other words, DAF donations represent a significant and growing source of gifts for nonprofit organizations. However, to get your share, you need to make it easy for people to recommend donations from their DAF accounts. That’s why MarketSmart created the free DAF Widget.

You can learn more about the DAF Widget and claim yours by clicking here.

There is just one catch, if you want to call it that. The DAF Widget is in its Beta Edition. So, MarketSmart is looking for feedback, either directly or through comments below. Then, Greg promises to invest more time and money to make the DAF Widget even better. So, if you use the DAF Widget, please let us know how you think it could be made easier to use and more effective.

Here are seven additional resources for you to help get 2018 off to a great start:

read more »

January 5, 2018

How Bad is the New Tax Code for Your Charity?

If you’ve been reading the mainstream press, or even some of the industry media, you might believe that the future is all doom and gloom for charitable giving thanks to the Tax Cut and Jobs Act. But, how bad will things really be for you and your nonprofit organization?

As a former newspaper editor, I know that the media lives by the axiom: If it bleeds, it leads. In other words, negativity attracts readers and viewers, which in turn attracts advertising dollars. So, it’s no surprise that the media have put the new tax code in the most negative light when it comes to charitable giving.

Fortunately, reality is something quite a bit different. Let me explain, using figures from 2016 (the most current numbers available).

Overall, charitable giving totaled $390.05 billion. US Gross Domestic Product totaled $18.6 trillion. Therefore, total philanthropy in 2016 equaled 2.1 percent of GDP.

As a result of the new tax code, charitable giving could decline by approximately $21 billion, according to Patrick Rooney, PhD, Executive Associate Dean for Academic Programs and Professor of Economics and Philanthropic Studies at Indiana University-Purdue University.

However, is that number accurate? Unfortunately, we have no way of truly knowing as Rooney himself states.

For example, the estimated philanthropic decline of $21 billion does not take into account the impact of a likely increase in Gross Domestic Product.

Because philanthropy closely correlates to GDP at the rate of approximately two percent, we can expect a rise in GDP to result in a rise in giving.

So, how much will GDP rise? Again, no one knows for certain. The estimates vary greatly from 0.08 to 0.35 percentage points. The Tax Foundation provided the latter estimate. Applying that percentage to the 2016 GDP, we would see GDP increase by $651 billion. If two percent of that increase goes to charitable giving, that would be approximately $13 billion. So, Rooney’s prediction of a $21 billion decline in philanthropy could be mitigated partially by GDP growth resulting in just an $8 billion drop in giving. However, even that number could be further offset by growth in foundation giving resulting from robust growth in the stock market.

Simply put, the new tax code could increase GDP and stock values leading to more charitable giving that could, at least partially, offset any potential decline in giving resulting from the new tax policy.

For the sake of discussion, however, let’s assume a $21 billion drop in giving, as Rooney outlined. That would take philanthropy as a percentage of GDP from 2.1 percent to 1.9 percent, using 2016 numbers. This is still within the 40+ year historical range.

The bottom line is that the new tax law could result in a decline in charitable giving. However, we don’t know for certain if that will be the case and, if it is, how much the dip will be. Even if there is a dip, giving will still remain at historically typical levels, around two percent of GDP. Furthermore, there is the possibility that the pundits are mistaken and that charitable giving will actually increase. Time will tell.

While the new tax code may change how and when people donate, history teaches us that changes in the tax code have only a short-term impact on the amount of giving though the methods and timing may vary. For example, the Reagan tax cuts resulted in greater year-end giving in 1986 before giving normalized thereafter. Furthermore, while a dip of billions of dollars is a big number, the reality is that it is not massive in the context of overall philanthropy.

Here are some of the relevant items you need to know from the 500+ page Tax Cut and Jobs Act signed into law on December 22, 2017 by President Donald Trump:

read more »

December 29, 2017

Do Your Colleagues Know Something You Don’t?

Keeping on top of all of the latest fundraising, marketing, and nonprofit management information can be a real challenge. After all, you have a full-time job. Your boss expects you to raise a lot of money, probably more than last year. It keeps you busy.

Unfortunately, having a hectic work life could mean that you’ve overlooked some useful information that actually could help you achieve your goals more easily.

So, what’s the information that your colleagues found most interesting in 2017 that you should be sure not to miss?

Here is a list of my top ten most read posts published in 2017:

  1. Here is the One Word You Should Stop Using
  2. Delivering More of My Own Bad News
  3. 5 Mistakes that Could Cost You Year-End Donations
  4. What is the Most Important Thing a Donor Can Give You? … It’s Not What You Think It is.
  5. The Best Fundraising Blogs You Should be Reading
  6. Your Charity is Losing Big Money If It Ignore This Giving Option
  7. What are the Obstacles to Improving Donor-Retention Rates?
  8. What is the Special Ingredient that Leads to Fundraising Success?
  9. Philanthropy Will Increase in 2017 and 2018
  10. Do the Numbers Tell the Full Story?

Here’s a list of five of my older posts that remained popular this year:

  1. Can You Spot a Child Molester? Discover the Warning Signs
  2. Can a Nonprofit Return a Donor’s Gift?
  3. 5 Things Never to Do in Your Phone Fundraising Calls
  4. Special Report: Top 40 Most Effective Fundraising Consultants Identified
  5. 16 Tips for Crafting a Powerful Postcard Campaign

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. This year was no exception. I’m pleased that I was once again recognized in Bloomerang’s list of “100+ Fundraising Blogs You Should Be Reading in 2017.”

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.

To make finding interesting blog posts by others a bit easier, you might want to join the LinkedIn Discussion Group I created: Blog Posts for Fundraising Pros & Nonprofit Managers.

This is a LinkedIn Group for blog authors and the fundraising professionals and nonprofit managers who read them. Bloggers can promote their latest posts and readers can easily find those that interest them most and engage in thoughtful conversation, all in one place.

The site provides a welcoming environment for blog authors where they can freely promote their posts. It is also a safe place for readers who may not want to subscribe to multiple blog sites but who want to easily scan the great information that is available across blogs.

I also want to take this opportunity to thank you and all of my readers. I appreciate that you stood by my side during what was a profoundly challenging year for me. A fierce battle with cancer forced me to take a lengthy leave-of-absence this year. Now, I’m delighted to be back. You can read about my battle in the following posts:

read more »

December 20, 2017

The Secret You Know but Do Not Know You Know

There’s a powerful fundraising secret you know. Unfortunately, you probably don’t know you know it. Yet, knowing it is essential to your fundraising and career success. 

While scanning year-end articles, blog posts, and webinar offerings about fundraising, you might be overwhelmed by the huge volume. You might also suspect that all you have to do to become a great fundraising professional is master the numbers and techniques involved in the development process.

Even my recent blog posts have focused on how-to information. However, your fundraising efforts and career are about more than numbers and skills. Don’t believe me? Let me ask you some questions. When you woke up this morning:

  • were you excited to get to the office so you could generate that report your boss asked for?
  • were you thrilled that you’d soon be listening to a webinar about donor retention?
  • were you energized by thoughts of the upcoming staff meeting?

When you accepted the job offer from your current employer, I suspect you weren’t thinking of reports, webinars, and staff meetings. Instead, you were probably thinking about the organization’s mission. You likely thought about how fun it would be to join a great team to help fulfill that mission.

That feeling might now be somewhat buried. You might not think about it much. However, at a deep level, it’s that feeling that probably gets you out of bed and to the office each morning. Passion for your organization’s mission is easy to forget when facing day-to-day demands.

In the heat of the moment, it’s easy to reduce our jobs to a set of numbers. How many donors did you acquire? Renew? Upgrade? How many major donor prospects did you visit? How many of those prospects became major donors? How long does it take to send out a thank-you letter? How much money did you raise this year? You get the idea. It’s easy to get caught up in the process and begin to lose sight of what is most important.

You will never be truly effective unless you constantly remind yourself of why you really do what you do. You won’t be able to inspire prospects to give, and you’ll likely experience premature burnout.

So, if you want to more effectively inspire people to give and if you wish to have greater career satisfaction, spend more time focusing on what the money you raise will accomplish. For example:

read more »

%d bloggers like this: