Posts tagged ‘Association of Fundraising Professionals’

November 24, 2015

What are Your Favorite LinkedIn Discussion Groups?

John Heywood, the 16th century English writer, once stated:

Many hands make light work.”

While Heywood might not have been the one to coin the phrase, he certainly helped preserve and popularize it. It’s a nice bit of common sense that we all need to be reminded of periodically.

For example, we can’t know everything. We can’t research an answer to every question by ourselves. We can’t read all of the professional publications to determine which items are of greatest importance or value.Spiral of Hands by lostintheredwoods via Flickr

That’s where LinkedIn Discussion Groups can help. By being part of a network of nonprofit managers and fundraising professionals, we can rely on the assistance of colleagues. In turn, we can also be of help.

Through LinkedIn, I’ve developed my professional relationships, broadened my professional network,  made new friends, accessed valuable information I never would have on my own, had some of my questions answered, and much more. I’ve engaged in provocative conversations. I’ve learned a great deal. I’ve been inspired.

While I belong to 45 professional LinkedIn Groups that are excellent, there are only some I engage with regularly. Here are just ten of my favorites:

[Note: You might need to be logged into your LinkedIn account for the above links to work. Even then, if you have any problems with the links, you can simply search on the Group names I’ve listed.]

Now, let me tell you about my absolute favorite Group.

Just days ago, I have created a new LinkedIn Discussion Group:

Blog Posts for Fundraising Pros & Nonprofit Managers

October 22, 2015

Do You Know if Your #Fundraising is Failing?

You might think it’s a blunt, maybe even a harsh, question. It is.

Do you know if your fundraising is failing?

If your nonprofit organization is typical, I have some bad news for you. You’re fundraising effort is most likely sorely underperforming. That’s according to the newly released 2015 Fundraising Effectiveness Project Report, from the Association of Fundraising Professionals and the Urban Institute.  Here are some of the key findings:

•  For every 100 donors gained in 2014, 103 were lost through attrition, a net loss in donors of three percent!

•  For every $100 gained in 2014, $95 was lost through gift attrition. In other words, organizations are running hard to remain essentially in place.

•  The median donor retention rate in 2014 was just 43 percent. There was no improvement over 2013’s rate despite all of the publicity and advice about the issue.

•  The median dollar retention rate increased slightly from 46 percent to 47 percent in 2014. However, the fact that the retention rate is not well above 50 percent is pathetic. Sadly, that’s been the case for nearly the past decade.

The Scream by Mark Tighe via FlickrRoger Craver, one of the Editors at The Agitator blog and author of Retention Fundraising: The New Art and Science of Keeping Your Donors for Life summed up the results perfectly with just one word: “depressing.”

Even if your charity is performing on par with the median nonprofit organization, make no mistake about it, it is failing. Unfortunately, many organizations do not even know whether or not they are performing well. They usually don’t look at or understand their numbers. Fortunately, the solution is simple. Here’s a story I told The Agitator:

September 1, 2015

A Charity Scandal with a Surprising Twist

Yet another charity scandal has made headlines. What makes this ongoing situation startling is that the charities involved are the victims while government is the offender.

“Nearly $10 million in charitable donations by California taxpayers sat unspent in government accounts at the end of last year, The Associated Press has found, and the Senate Governance and Finance Committee chairman said Thursday that he wants a review of state accounts and will hold a hearing to find out why the money hasn’t been spent.”

Since 2005, California has collected $35 million for 29 funds. The state’s taxpayers donated the money when filing their tax returns. The money was supposed to go to a variety of charitable organizations ranging from cancer research to wildlife protection.

“’This is just embarrassing. It’s unacceptable. People expect their money to be spent for these important purposes and these delays, you know, they’re not explainable to me,’ said Sen. Bob Hertzberg, D-Van Nuys. ‘So I just learned about it, but I’m going to jump on it,’” according to the AP report.

Sadly, California is not alone in mishandling taxpayer donations to charity. For example, “New York’s top financial officer found donations languishing in its tax checkoff funds,” according to the AP.

While well intentioned, the government’s efforts to help charities have not always been efficiently or properly managed. I’m reminded of a famous quote from a former California Governor, President Ronald Reagan:

In 1986, Reagan famously said, “The nine most terrifying words in the English language are: ‘I’m from the government, and I’m here to help.’”

While Democratic administrations in both California and New York have mishandled money meant for charities, Democrats do not have a monopoly on making life difficult for nonprofit organizations.

While it initially looked like the Republican controlled US Congress might quickly enact certain charitable giving incentives including the IRA Charitable Rollover, the body failed to act before the summer recess. With a full legislative calendar awaiting the return of lawmakers, it’s unclear if or when the matter of charitable giving incentives will be addressed. This means that even if Congress passes measures that would benefit charities, nonprofit organizations will once again have very little time to promote those opportunities to donors prior to the end of the year.

While government can and should take steps to help the nonprofit sector, charities should not wait expectantly for assistance. Furthermore, even when assistance is promised, charities should not expect such assistance to be delivered in a timely or efficient manner.

As Doug White, Director for the Master of Science in Fundraising Management program at Columbia University, told the AP, “They are not in the business of charity. The government has its own issues.”

Another way in which government hurts the nonprofit sector is through burdensome, costly regulation that does little or nothing to protect the public interest. Such regulations divert donor funds away from the fulfillment of charitable missions.

While government action and in-action has a direct cost for nonprofits, the problem could be much greater. For example, in California, donors may now distrust the government to such a degree that they will no longer bother to designate funds for charities. Time will tell.

So, what can you do?:

August 17, 2015

Urgent Alert: Immediate Action Needed to Defend Nonprofits

There is an alarming issue you need to be aware of.

While I do not use this blogsite to engage in partisan politics, that does not mean that I avoid politics and government relations altogether. I consider myself a bi-partisan, vigorous defender of the nonprofit sector.

CA State House by David Grant via Flickr

California State House

Over the years, I’ve worked with both Democrats and Republicans in my capacity as Chairman of the Association of Fundraising Professionals Political Action Committee, Chairman of the AFP Greater Philadelphia Chapter Government Relations Committee, and a member of the AFP US Government Relations Committee. I’ve even represented AFP in testimony before the Federal Trade Commission.

As a passionate defender to the nonprofit sector and a cheerleader for voluntary philanthropy, I took notice of a recent post on The Agitator blog. Fundraising legend Roger Craver sounded an alert and issued a call to action over a dangerous move by the California Attorney General.

Never before have I reprinted a blog post. However, this issue is so important that, with Roger’s permission, I am sharing his post with you now:


If you’re willing to turn over the list of your top donors to the government then you need read no further.

However, if you’re not sure, or you’re absolutely certain you’d be unwilling to give up the donor list, then take this post to your CEO and General Counsel. Immediately.

Why? Because right now the Attorney General of California is set on requiring that any nonprofit seeking a license to solicit funds in the nation’s largest state first turn over their lists of top donors that are filed with the IRS on a supposedly “confidential” schedule of your tax return.

This dangerous and unconstitutional power grab in the name of ‘fundraising regulation’ and ‘consumer protection’ must be stopped.

And it’s up to all of us—nonprofits and the companies that serve them to stand up now and take action.

Whether or not your organization or one you serve solicits funds in California the battle ahead will affect the freedom of speech and privacy rights of every nonprofit in the U.S. and their donors.

In a moment I’ll outline the steps you can take immediately to head off this threat. But first some background.

A year ago this week The Agitator warned about a sinister move by the Oklahoma Attorney General and his special interest contributors to silence the Humane Society of United States (HSUS) using that state’s fundraising regulations.

HSUS has boldly and, so far, successfully fought back.

As I pointed out last August there have been relatively few occasions in modern history where politicians have blatantly sought to use the power of their office to silence nonprofits that opposed them or whose views and ideology they disagreed with.

At the end of the day, Americans and the U.S. Supreme Court have shown little tolerance for political zealots and bullies who abuse U.S. Constitution’s guarantees of free speech and due process.

NOW …The Intimidators At It Again. And We Must Make Sure They Lose. Again.

August 14, 2015

Easy Ways to Cultivate Your Donors and Raise More Money

Steven Shattuck recently interviewed me about one of my favorite topics for Bloomerang TV: Donor Cultivation.

Many nonprofit organizations see caring cultivation and solid stewardship as luxuries rather than essential components of the fundraising process. That’s one reason for low donor retention rates, 23 percent for first-time donors and 43 percent overall.

Well, I’m here to tell you that if you simply ask for donations with little or no attention given to cultivation and stewardship, you’re nothing more than a professional beggar. Development professionals recognize that fundraising does not begin and end with an appeal. Development professionals know the importance of cultivation and stewardship.

During my interview, I share a number of easy to implement, low-cost ideas for cultivating and stewarding your prospects and donors. One of the things I talk about is the value of pleasantly surprising people; I even share a couple of examples. You can read the full interview transcript of “Sneaky Ways to Cultivate Donors” by clicking here. You can watch the full 17 minute video below:

For more tips about cultivating your planned giving prospects and donors, read my article “Effectively Cultivating Prospects at Little or No Cost” which appeared in Advancing Philanthropy, the magazine of the Association of Fundraising Professionals. For additional tips and great examples for educating, cultivating, and stewarding planned giving prospects and donors, checkout my book Donor-Centered Planned Gift Marketing.

August 10, 2015

Special Report: Hillary Clinton Wants to Limit Charitable Deduction, Could Cost Charities Billions

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Hillary Clinton, the current frontrunner for the Democratic Party nomination for President of the USA, put forward a plan that could cost the nonprofit sector billions of dollars in voluntary donations.

Hillary Clinton

Hillary Clinton

Like President Barack Obama, Clinton announced that she would seek to impose a cap on tax deductions, including the deduction for charitable giving.

On the campaign trail, Clinton proposed the “new college compact.” At a town hall meeting in New Hampshire on Monday, August 10, Clinton announced a plan to reduce the cost of four-year public schools, make two-year community colleges tuition-free, and cut student loan interest rates.

To pay for the $350 billion plan, Clinton would seek to impose the same 28 percent cap on itemized deductions that we have seen in Obama’s proposed budgets. Charitable deductions are not exempt from this plan. Currently, taxpayers may claim up to a 35 percent charitable deduction.

When Obama proposed a similar tax policy, the Charitable Giving Coalition issued the following statement:

Any caps or limits on charitable giving will have a devastating impact on charities and nonprofits. If donors have less incentive to give to charities — donations will decline, impeding the important work nonprofits do for the millions of Americans who rely on them. For example, up to $5.6 billion in charitable giving would be lost each year if the President’s proposal to cut the charitable deduction were enacted.”

Like the Obama plan, the Clinton proposal would also negatively affect charitable giving. Nevertheless, “Clinton aides believe their plan will help build enthusiasm for her candidacy with younger voters,” according to an Associated Press report.

The cynical effort of the Clinton campaign to buy the youth vote reminds me of two quotes from Alexis de Tocqueville, the 19th century philosopher and historian:

July 29, 2015

Update: Spelman College Returns Gift from Bill Cosby

Seven months ago, I first reported that Spelman College announced the suspension of an endowed professorship in humanities that was funded by Bill and Camille Cosby. At that time, I called on the College to either renegotiate the gift or return it to the Cosby family.

Post No Bills by Jon Mannion via FlickrOn July 26, 2015, the College revealed its decision to terminate The William and Camille Olivia Hanks Cosby Endowed Professorship and to return the donation to the Clara Elizabeth Jackson Carter Foundation, established by Camille Cosby.

Last December, Spelman issued this one-paragraph statement:

December 14, 2014 — The William and Camille Olivia Hanks Cosby Endowed Professorship was established to bring positive attention and accomplished visiting scholars to Spelman College in order to enhance our intellectual, cultural and creative life; however, the current context prevents us from continuing to meet these objectives fully. Consequently, we will suspend the program until such time that the original goals can again be met.”

Amid mounting accusations of sexual assault involving Bill Cosby, the College decided to terminate the endowed professorship. As of this publication date, Cosby has not been charged with any related crime.

As I stated in my December post, nonprofit organizations are ethically required to use a donor’s contribution in the way in which the donor intended. The applicable portions of the Donor Bill of Rights “declares that all donors have these rights”:

IV. To be assured their gifts will be used for the purposes for which they were given….

V. To receive appropriate acknowledgement and recognition….

VI. To be assured that information about their donations is handled with respect and with confidentiality to the extent provided by law.”

The relevant passages from the Association of Fundraising Professionals Code of Ethical Principles state:

14. Members shall take care to ensure that contributions are used in accordance with donors’ intentions….

16. Members shall obtain explicit consent by donors before altering the conditions of financial transactions.”

By returning the gift after deciding not to use it for the intended purpose, the College acted ethically. However, a number of other ethical questions remain unanswered:

July 23, 2015

IRA Rollover Poised to Make a Comeback

I have some good news.

The US Congress has begun the process to revive the Charitable IRA Rollover which expired at the end of 2014. Now, it’s time for you to take action.

On Tuesday, July 21, 2015, the Senate Finance Committee approved a number of tax extender provisions including the IRA Rollover. While the Committee considered making the IRA Rollover provision permanent, it ultimately settled on a two-year extension.

US CapitolFinance Committee Chairman Orrin Hatch (R-UT) said, “This markup [of the bill] will give the Committee a timely opportunity to act on extending a number of expired provisions in the tax code that help families, individuals and small businesses. This is the first time in 20 years where a new Congress has started with extenders legislation having already expired, and given that these provisions are meant to be incentives, we need to advance a package as soon as possible.”

Ranking Committee Member Ron Wyden (D-OR) said, “The tax code should work for, not against, Americans. We need to extend these tax provisions now in order to provide greater certainty and predictability for middle class families and businesses alike. However, as we look beyond next week, it’s critical we all recognize and take action to end this stop and go approach to tax policy through extenders.”

The House of Representatives has yet to take action though Rep. Paul Ryan (R-WI), Chairman of the Ways and Means Committee, remains interested in legislation that would make the IRA Rollover permanent. However, ultimately, the House might bring its thinking into alignment with the Senate Finance Committee. The House is expected to take up the issue as early as September.

When Democrats controlled the Congress, the IRA Rollover extensions were done a year at a time and often very late in the year. This made it challenging for both donors and nonprofit organizations to plan and to take full advantage of the provision.

With Republicans in full control of Congress, the House and Senate are considering the IRA Rollover provision earlier in the year and are considering a longer extension term. These are both good things for donors and charities.

It remains to be seen when final action will be taken and what that action will look like. It’s also unclear whether the Obama Administration will support the measure.

The Charitable Giving Coalition has long advocated for the IRA Rollover and other provisions that provide incentives for charitable giving. In addition to encouraging Congress to take action, the Coalition has sent the following letter to all Presidential candidates:

June 4, 2015

Do You Care If I Renew My CFRE? Vote Now.

I’m frustrated.

I’ve been a Certified Fundraising Executive (CFRE) since 1994. That means I’ve held the credential longer than at least 89 percent of all current CFREs! I’ve also taught the CFRE Review Course. Clearly, I’m committed to the idea of professional certification for fundraising practitioners.

Unfortunately, the CFRE designation has failed to realize its potential. In fact, the credential is becoming less, rather than more, relevant.

That’s why I’ve tentatively decided not to renew my certification this month UNLESS you tell me I should renew.

VotingI’ve come up with a creative way for you to vote. My method will allow you to not only register a vote in favor of renewal, you’ll be able to convey how passionately you feel about renewal. To vote in favor of my renewal, simply go to my GoFundMe site (VOTE: Michael’s CFRE Renewal Fund) and make a donation. I estimate that renewing my CFRE and running this mini-campaign will cost approximately $600. If you think I should renew, contribute one dollar. If you feel more strongly that I should renew, contribute more, up to the $600 goal.

If we reach the goal of $600 by June 14, 2015, I will submit my renewal application to CFRE International. If we do not reach the goal, I will evaluate the feedback I receive and make a final decision about renewal by June 14. In any case, I will donate any unused funds to either CFRE International or the Association of Fundraising Professionals Foundation. Donations to this mini-campaign are not tax-deductible.

If you believe that I should not bother renewing my CFRE designation, you do not have to do anything to register your vote. I’ll see how many people visit this blog post and be able to compare that number with the number of people who vote with their dollars. So, I’ll see how many readers are voting by not actively voting.

With this method of voting, I will be able to gauge not just how much casual support there is for CFRE, but how much passionate support there is.

For now, I’m not passionate enough about CFRE to continue to spend my own money on renewal. Let me explain my position:

Lack of Commitment. By tentatively deciding not to renew my certification, I’m in good company. Of the eight past Board Chairs of CFRE International, the organization that controls the credential, three did not hold the CFRE designation as of 2013, according to the group’s annual report. In other words, 37.5 percent of past CFRE International Board Chairs do not hold the CFRE designation!

While CFRE International claims to have a high overall retention rate among CFREs, there is really no way to evaluate this. All the numbers reported by CFRE International prior to 2013 are suspect, according to Eva Aldrich, CFRE, President/CEO of CFRE International.

Anemic Numbers. Supposedly, a new technology system now allows for accurate reporting. Nevertheless, Aldrich has refused multiple requests to provide counts of the number of CFREs by country. So, we have no way of knowing, for example, whether the number of CFREs in the USA is growing, shrinking, or remaining the same. However, since 85 to 90 percent of all CFREs reside in the USA, I’ll assume, for the sake of this post, that the American CFRE growth rate is comparable to the overall growth rate.

In January 2015, CFRE International issued a statement, complete with a photo of fireworks, boasting that its 5,451 CFREs in 2014 represented a three percent growth rate over 2013. (Incidentally, the number of CFREs reported for 2012 was 5,630, which Aldrich now conveniently claims, was an inaccurate number; she further claims that she cannot ascertain the real number nor can she even estimate the degree of variance.)

The 2013-2014 growth rate of three percent seemed modest to me, certainly not worthy of fireworks. So, I did some research. Using data reported by The Urban Institute, I discovered that the growth rate among nonprofit organizations with revenue of $500,000 or more — in other words, among those organizations most likely to have someone on staff doing at least some professional fundraising — the growth rate was 3.6 percent. What this means is that the universe of nonprofit organizations doing fundraising has grown faster than the number of CFREs.

I’ll express this another way: Despite its modest growth, CFRE is growing more slowly than the market and, therefore, is actually losing market share.

CFRE is becoming less relevant!

May 25, 2015

Discover 5 of the Latest Trends Affecting Your Fundraising

Leading up to the 2015 Association of Fundraising Professionals International Fundraising Conference, a number of my readers contacted me to request that I gather information about emerging fundraising trends. (Yes, I take requests, so feel free to make one.)

It’s not surprising that development professionals understand the need to stay on top of the evolution that takes place in the world of philanthropy. After all, as Benjamin Disraeli has said:

Change is inevitable. Change is constant.”

Recognizing that ongoing change is part of our life is one thing. Understanding what that change means and how to capitalize on it can help even good fundraisers become stars. As John F. Kennedy has stated:

Change is the law of life. And those who look only to the past or present are certain to miss the future.”

None of us wants to miss the future.

So, with that thought in mind, I attended the session “Latest Trends in Giving and What They Mean for Your Organization” with presenters Stacy Palmer, Editor of The Chronicle of Philanthropy, and Jeff Wilklow, Vice President of Campbell & Company. Here are five of the key trends they cited:


Among very wealthy, very generous philanthropists, much of their giving does not go directly to existing charitable organizations. While their philanthropy will eventually find its way to charitable purposes, it will first be funneled through special funds or foundations that the mega-donors create or contribute to.

Money by 401(K) 2012 via FlickrMany of those who earned their fortunes through entrepreneurialism will gravitate toward entrepreneurial philanthropy. This is particularly true with younger technology entrepreneurs. With a do-it-yourself attitude, these individuals may choose to create a charity or socially-responsible business rather than donate to an existing, mainstream nonprofit organization.

In any case, big donors are interested in funding big ideas. They’re interested in big solutions to big problems. To attract the support of mega-donors, your charity will need to focus on creative solutions for large challenges.

Legacy Donors:

Many charitable organizations embrace the idea that planned giving equals endowment building. For example, many charities have adopted policies that direct bequest revenue into the organization’s endowment fund unless otherwise designated by donors.

While your organization might have a bias in favor of building endowment revenue, donors have a keen interest in their own legacy. Donors want to make a lasting difference. So, they will likely be more interested in funding your programs and initiatives that help establish their legacy than they will in simply having their money deposited into your organization’s investment pool.

Just as we see that current donors have a growing interest in gift designations rather than unrestricted giving, we see a similar interest among planned giving donors who want to ensure their legacies. Some donors want to be assured of having a long-term, definable impact while other might be content with having their name, or the name of a loved one, on an endowment fund. The key is to understand what motivates the individual.

Social Donors:

Donors communicate with your organization in a variety of ways thanks to new technologies. They also communicate with each other like never before.

Donors are online. And it’s not just young donors. They view your website, they engage in crowd funding, they give online, they take surveys, etc. Here are a few simple things you need to do to make sure those experiences inspire support:


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