Posts tagged ‘building relationships’

March 3, 2017

5 Tips for Raising More Money in a Difficult News Environment

Nonprofit organizations already face many challenges when it comes to raising money. So, it’s unfortunate that numerous charities must now deal with a fresh, difficult situation.

In a recent article in The Chronicle of Philanthropy, reporter Rebecca Koenig explains:

Charities always find it difficult to capture attention, but some nonprofits fear that their donors are distracted by President Trump’s policies. ‘Backlash philanthropy,’ the trend of donating money to express frustration with the new administration, has benefited select organizations like Planned Parenthood and the American Civil Liberties Union but not necessarily nonprofits as a whole.”

If Trump Administration policies directly affect your organization’s mission, fundraising can be relatively easy. Indeed, some charities have benefitted microphone-by-yat-fai-ooi-via-flickerfrom record philanthropy since Election Day. However, what can you do if your organization’s mission has little or nothing to do with the debates capturing media attention?

Koenig’s report provides great tips, insights from nonprofit professionals, and helpful detail. If you’re a Chronicle subscriber, you can find the article by clicking here. I thank Koenig for interviewing me for her article. If you’re not a subscriber, fear not. I’m about to share some highlights with you.

As I told the Chronicle:

The most important advice I could give an organization not directly impacted by the current political environment is to embrace fundamental practice and keep moving forward.”

So, in that spirit, here are five tips to help guide you along with my comments, in quotations, from the article:

Tip 1: Avoid obvious attempts to connect your organization to causes that don’t relate to your mission.

“If it’s a stretch, then the recipient of the appeal is going to see through it and see it as a gimmick, It’s not going to be particularly effective.” Instead, think of what has been motivating your donors all along, and continue to tap into those feelings.

Tip 2: Maintain good relationships with current donors.

Steadily declining donor-retention rates over the past several years suggest that the nonprofit sector has been doing a terrible job of building relationships with donors. Now, perhaps more than ever, it’s essential for charities to do a better job in this area. This is particularly true for organizations over-shadowed by news events. You can search this site for donor relations to find posts with helpful advice. However, here’s one useful idea: Report to donors how their contributions have been and will be used.

“The more specific an organization can be with a donor, the more that donor will feel like they’re making a difference, If a donor feels he or she is bringing about change, this will help drive further philanthropy to that organization.”

You also want to ensure that your prospects and donors understand that the challenges you’re working on are not going away even if the media spotlight may not be on your cause.

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February 24, 2017

What is the Special Ingredient that Leads to #Fundraising Success?

Do you know the special ingredient for creating fundraising success?

You’ll notice I didn’t say “secret ingredient.” That’s because it’s not a secret. It’s actually common sense. The reason I’m writing about it is that it is not yet common practice to the degree it should be.

The special ingredient is: building relationships.

Gerry Lenfest, 21st century philanthropist and Giving Pledge member, explained the importance of developing relationships when writing the Foreword to my book, Donor-Centered Planned Gift Marketing:

Knowing your prospects and understanding what motivates them are two critical steps in the [philanthropic] process. Quite simply, you cannot skip cultivation and relationship building and expect a successful outcome…. Do not make the mistake of forgetting about us once you receive our gift commitment. We may truly appreciate how efficiently and effectively you handle contributed funds so much that we entrust you with another planned gift. We are also in a position to influence others to do the same…”

While Lenfest’s comments were about planned giving, they certainly apply to any type of fundraising. Strong relationships are the key ingredient to a successful philanthropic process. By building meaningful relationships, you will:

  • Acquire more donors
  • Retain more donors
  • Upgrade more donors
  • Acquire more planned gifts
  • Generate more major gifts
  • Inspire donors to become ambassadors for your organization

Unfortunately, the nonprofit sector in general is terrible at building relationships. This is one major reason that donor-retention rates have been steadily falling for years, according to the Fundraising Effectiveness Project. While there is no shortage of great how-to material out there, charities are still failing to grasp the importance of embracing a robust stewardship program as part of the philanthropic process. You can search this site for donor retention to get some great tips.

For now, however, I want to share a heartwarming story of what can happen when you establish strong relationships with donors and inspire them to be ambassadors.

John’s Roast Pork is a destination sandwich stand in Philadelphia. John Bucci’s family-owned establishment has been around since 1930 serving the best roast pork sandwiches in the city. (Hey, Philly is about more than john-bucci-of-johns-roast-porkcheese steak sandwiches, though they serve those, too.) The James Beard Foundation designated the establishment as an “American Classic” for roast pork.

Unfortunately, earlier this month, John’s was burglarized. The perpetrator(s) got away with a few thousand dollars. The burglary also shut down the business until repairs could be made. The stolen sum included $1,500 that had been collected to benefit Be the Match, operated by the National Marrow Donor Program. The charity maintains the world’s largest and most diverse bone marrow donor registry.

Be the Match is important to Bucci. Several years ago, he fought a fierce battle with leukemia and was ultimately successfully treated with a bone marrow transplant. Since then, Bucci has been a supporter. At one point when he contacted the organization, he requested to meet his marrow donor so he could thank the person. However, he was told that the organization’s guidelines did not permit this. Here’s what Bucci told Philly.com he did instead:

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