Posts tagged ‘Association of Fundraising Professionals’

October 4, 2019

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.

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August 19, 2019

High Fundraiser Turnover Rate Remains a Problem

Here we go again. There is yet another report about the high turnover rate among fundraising professionals.

According to a Harris Poll study conducted for The Chronicle of Philanthropy and the Association of Fundraising Professionals, 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. Among respondents, 30 percent say they plan to leave the fundraising profession altogether by 2021.

The ongoing high turnover rate among fundraising professionals is costly to nonprofit organizations. There is the cost of hiring and training new staff. There is also the enormous cost associated with the loss of continuity and the abandonment of relationships with prospects and donors.

Social media and the blogosphere have been reacting to the new report. For example, Roger Craver, at The Agitator, offers a well-done summary of the data and shares some additional resources exploring the problem. Unfortunately, much of the discussion I’ve seen overlooks what I view to be the real problem that allows high fundraising staff turnover to continue. Let me explain.

Soon after becoming a fundraiser, I began hearing talk about the problem of high staff turnover. That was back in 1980. Many causes were identified. Many solutions were offered. Sadly, nothing substantive has changed over the intervening four decades. Nothing! NOTHING! N-O-T-H-I-N-G!

I’m fine with surveys that continue to point to the turnover issue. I’m fine with many proposed solutions to the situation. However, do not expect me to believe anything will actually change.

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June 11, 2019

4 Major Problems with Nonprofit Compensation

Salaries are a big problem for nonprofit organizations. However, the problem, or rather problems, might not be what you think they are.

Let’s look at just four major issues:

1. Nonprofit staff earns too much money. The mainstream media regularly trumpet the high salaries that some nonprofit executives receive. Through their selective reporting, many in the media advance a narrative that suggests nonprofit professionals earn too much money. As a result, donors focus frequently on charity overhead, including salaries, rather than program and service outcomes when evaluating charitable organizations.

2. Nonprofit staff earns too little money. Simply put, many people working for nonprofit organizations are grotesquely underpaid. For example, I recently came across an advertisement for a nonprofit Administrative Manager and Marketing Associate in Washington, DC. The charity requires candidates to have a college degree and an automobile. The organization offers an annual salary of just $35,000. Take a moment and think about that. The job pays $35,000 a year in Washington, DC! In case you don’t know, Washington, DC is the fifth most expensive city in the US, according to Kiplinger.

Yes, some charity executives are overpaid. However, many high-paid nonprofit employees are worth every dollar because of their skills and proven results. Geographical cost of living is another reason some nonprofit professionals earn higher salaries. On the other hand, the story that the media seldom cover is that of underpaid nonprofit staff. The failure to provide a competitive salary, or even a salary someone can live on reasonably, makes it difficult for charities to attract and retain talented staff.

Maclean’s examined nearly 600 charities in Canada with gross revenue of over $2 million (Canadian $). The publication found charities that significantly overpaid or underpaid chief executives, relative to peer organizations, were less likely to be transparent or efficient. “Analysis of charity data suggests extremely high compensation is linked to poor results for charities. But intriguingly, so is extremely low compensation,” according to the report. “High salaries receive the most attention, but Maclean’s found a stronger correlation with poor performance at charities that underpay their staff or have no staff at all.”

Ideally, nonprofit organization would provide employees with competitive compensation packages taking into account the type and size of organization, the job position, and geographic area. Compensation does not have to be precisely average; it can be high or low though it should be within the average range. Compensation that is excessively high or low can be directly problematic and could be a symptom of other problems at the organization.

This brings me to a third compensation problem:

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April 29, 2019

Update: Get a Free Webinar, Magazine Article, Poll Results

I want to update you about three posts I recently published. In addition, for National Child Abuse Prevention Month, I wish to draw your attention to one of my older posts that will help you keep the children you love safe.

Free Webinar:

Did you miss it? Recently, I presented a webinar for SEI Investments Management Corporation: “Investing in Your Future: Practical Strategies for Growing Your Planned Giving Program.” If you missed the program or wish you could share it with colleagues, I have some good news for you. The webinar is now available for free download by clicking here.

In just 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 to the webinar itself, you’ll also be able to download additional resource materials including a list of 20 factoids about planned giving, a planned giving potential calculator, an executive summary of recent research findings from Dr. Russell James’ report “Cash is Not King in Fundraising,” and a digital copy of Dr. James’ book Visual Planned Giving: An Introduction to the Law & Taxation of Charitable Gift Planning.

Advancing Philanthropy Article:

Have you read my recent article published in Advancing Philanthropy, the Association of Fundraising Professionals magazine? “To Sir/Madam, With Love” shares stories from a number of fundraisers about their favorite teachers. Great teachers:

  • help us develop broad skills such as critical thinking,
  • help us develop specific skills such as how to write an effective appeal letter,
  • inspire us,
  • encourage us,
  • move us to think beyond ourselves and better understand others,
  • open our minds to lifelong learning,
  • motivate us to giveback by sharing our own knowledge.

After downloading the free article by clicking here, check-out my recent post that will give you tips that will help you find excellent teachers who can help you enhance your skills and inspire you: “Are You Really Just a Fundraising Amateur?”

Poll Results — Presidential Candidate Philanthropy:

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April 23, 2019

Are You Really Just a Fundraising Amateur?

We are all amateurs.

In my April 2019 article for Advancing Philanthropy, the Association of Fundraising Professionals magazine, I explain it this way:

In the film ‘Limelight’ (1952), Charlie Chaplin’s character says, ‘That’s all any of us are: amateurs. We don’t live long enough to be anything else.’ In other words, we will never know everything we need to know. All we can do is continue to learn and, perhaps, share what we know with others, inspiring them as we have been inspired.”

Let’s review the way good teachers shape our lives, and consider some tips for how to find true experts to learn from rather than mere wannabes.

Teachers shape our lives and help make us into the people we are. Take a moment and think about the affect your parents have had on you. Consider the lessons you’ve learned from religious leaders, schoolteachers, job supervisors, and others. Some people have taught us valuable skills, some have inspired us, some have taught us right from wrong.

In my Advancing Philanthropy article and the sidebar, you’ll read about how teachers have affected the lives of seven fundraising professionals, some you’ll likely know:

  • Teachers help us develop broad skills such as critical thinking.
  • Teachers help us develop specific skills such as how to write an effective appeal letter.
  • Teachers inspire us.
  • Teachers encourage us.
  • Teachers move us to think beyond ourselves and better understand others.
  • Teachers open our minds to lifelong learning.
  • Teachers motivate us to give-back by sharing our own knowledge.

Just as good teachers have helped us become the people we are today, teachers will help us continue to grow and become the people we want to be tomorrow. However, for that to occur, two things must happen: 1) we need to remain open-minded and intellectually hungry; and 2) we need to seek out good teachers who have something legitimate to offer.

Today, with the proliferation of available books and educational presentations dealing with nonprofit management and fundraising, it can be a challenge to distinguish between the true experts and the pretenders. Here are some tips to help guide you:

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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:

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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:

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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:

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January 11, 2019

Was the Trump Foundation the Only Funder on Santa’s Naughty List?

As you struggled to raise more money at the close of 2018 while carving out holiday time with loved ones, you might have missed an important news story.

On Dec. 18, news reports announced that the New York Attorney General’s Office and the Trump Foundation had reached an agreement to dissolve the Foundation. Under the terms of the deal, the NY Attorney General will distribute the Foundation’s remaining assets to charities.

Donald Trump

However, the closing of the Trump Foundation does not end the matter. Barbara Underwood, the NY Attorney General, says the state still seeks $2.8 million in restitution, plus additional penalties.

Furthermore, the Attorney General is asking the court to bar Donald Trump from serving with nonprofit organizations in New York for 10 years. The state’s lawsuit also calls for a one-year ban for three of Trump’s children — Don Jr., Ivanka, and Eric — all of whom were Trump Foundation board members.

The State of New York “lawsuit says that Trump’s charitable organization, which he founded in 1987, engaged in ‘persistently illegal conduct’ and that Trump basically used the Foundation as a slush fund to promote his business and political campaign,” according to a report in Vox.

This news item is inherently important. It involves a charitable foundation with significant assets that appears to have acted far less than charitably. It also involves the President of the United States. However, the significance of this story does not end there.

If the NY Attorney General is correct about the alleged misdeeds of the Trump Foundation, dissolution of the Foundation and a temporary prohibition of Trump family members from serving with NY charities for a limited time seem like an insignificant punishment. Unless serious penalties are levied against Donald Trump and his family members who were involved, the Trumps alleged criminal behavior will go unpunished. Furthermore, they will remain free to create and/or serve with nonprofit organizations outside of the State of New York. Other than a bit of bad press, the Trumps will pay little for their behavior.

The problem does not end there. Failure to hold the Trumps personally liable not only fails to punish the Trump family, it sends a signal to anyone interested in using a charitable foundation for personal benefit. That signal is that there is little downside for misbehavior. In other words, there will be little to no deterrent effect unless severe penalties are imposed by the court, assuming the allegations are proven true.

The other thing we need to understand about the Trump Foundation story is that it is not an isolated situation. A decade into my fundraising career, the nonprofit sector was rocked by the scandal surrounding the Foundation for New Era Philanthropy. Operating from 1989 to 1995, the Foundation raised over $500 million in an elaborate Ponzi Scheme that defrauded well known charities and experienced philanthropists out of millions.

That wasn’t the first funder scandal, and it certainly wasn’t the last. Let’s face it. The Trump Foundation is not the only funder on Santa’s naughty list.

As another report in Vox observed, “There are some 86,000 foundations in the United States, with total assets of around $890 billion. And the vast majority of them never face this kind of scrutiny.”

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October 19, 2018

How about a Bit of Fun for Fundraising Professionals?

It’s time to dig out your old swag from the National Society of Fundraising Executives and/or Association of Fundraising Professionals. Let me explain.

These are stressful times. In the broader society, we’re witnessing a volatile stock market, international intrigue, upcoming mid-term elections, the aftermath of hearings for Brett Kavanaugh’s appointment to the US Supreme Court, and so much more.

In the fundraising world, we read articles about how the new tax code could lead to a decline in charitable giving. We also read about scandals involving nonprofit organizations and religious institutions. Furthermore, we know that donor-retention rates remain abysmal despite all the talk about how to resolve the problem.

Against this anxiety-inducing backdrop, fundraising professionals have the added pressure of trying to meet fundraising goals as the end of the calendar year approaches.

If you’re not feeling a bit of stress and/or anxiety, you haven’t been paying attention, or you’re really good at meditation, or you’re drinking too much, or you’re eating too much chocolate.

So, with that in mind and given that Halloween, a fun holiday, is just weeks away, I thought I’d give you a brief break from fundraising talk. With this post, I want to do something a bit different and, I hope, have a bit of fun together.

The ever-stylish Michael Nilsen models his classic AFP shirt.

A few weeks ago, Taryn Gold, Vice President of Chapter Engagement at the Association of Fundraising Professionals, shared a photo on Twitter that I found amusing. The current picture shows Michael Nilsen, AFP’s Vice President of Communications and Public Policy, wearing an official AFP polo shirt from 2001.

One of the reasons the photo caught my eye is that I also still own the same shirt. No, I’m not ashamed to admit that. In fact, I also still have a bunch of older AFP swag, some of it from NSFRE, the name of the organization prior to 2001.

Gold’s tweet inspired me to dig around for my own ancient NSFRE and AFP swag. I was a bit surprised by what I found (see the photo below). Resting on my AFP shirt, you’ll find an NSFRE handbook from 2000, two AFP logo pins from 2001, an early CFRE button from 1994 (NSFRE created the CFRE credential), my first NSFRE Foundation donor pin from 1992, An NSFRE Founder’s Club donor pin from 1998, an NSFRE President’s Club donor pin from 2000, an AFP Political Action Committee donor pin from 2002, an AFP conference badge, my name badge from when I represented AFP before the US Federal Trade Commission, and an NSFRE conference badge.

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