Shocking Fundraising Behavior from Nonprofits Captures Media Attention

Nonprofit hospitals across the country have made disturbing news headlines recently. Sadly, while medical staff continue to provide heroic patient care, many of the recent news stories deal with unethical fundraising behavior that puts all nonprofits at risk. Consider these two items:

• Hospitals across the country have given major donors special, early access to the COVID-19 vaccine.
• In a story unrelated to the coronavirus, one hospital fundraising office has offered medical staff bonuses for referring “Grateful Patient” prospects.

While those news items involve healthcare organizations, all charities should be concerned. Let me explain. When some nonprofits behave badly, it reflects on the entire nonprofit sector with the potential to erode public trust and, therefore, support. There is ample research, as well as anecdotal evidence, that reveals that the fundraising efforts of virtuous charities can be harmed by the unethical behavior of unrelated nonprofit organizations.

Let’s look more closely at what has occurred recently:

MAJOR DONORS GIVEN EARLY ACCESS TO VACCINE

Initial excitement over the release of COVID-19 vaccines has given way to frustration as only 18 percent of the US population has received the first dose with confusing sign-up procedures and long lines greeting many people.

“But one group has gotten a head start in receiving the coveted shots: people who’ve donated money to hospitals distributing the vaccine,” according to a report in MarketWatch.

Ethical_Decision_Making_Article.28164930 AFP statement major donor vaccinations Feb 2021 final AFP Statement Grateful Patient Fundraising March 2021 final

According to reports, hospitals across the nation have been giving favorable treatment to major donors including Storment Vail Health (Kansas), Overlake Medical Center (Washington), Hunterdon Medical Center (New Jersey), MaineGeneral Health (Maine), and Garnet Health (New York).

Authorities in New York have launched a probe into Garnet’s actions to determine if any laws were broken. While evaluating whether or not laws were broken, it is important for us to also consider whether the actions of Garnet and other hospitals are ethical or unethical.

“As we see numerous reports of line jumping and favoritism, any situation that could lead to distrust in the fairness of the vaccine allocation process needs to be proactively managed. Redeploying staff to help with vaccination is reasonable, but care should have been taken to avoid [MaineGeneral Health] fundraising staff connecting with prior donors on this,” Holly Fernandez Lynch, an ethics professor at the University of Pennsylvania’s Perelman School of Medicine, told the Bangor Daily News.

The Bangor Daily News added, “Medical ethicists said there were many good reasons for MaineGeneral and other hospitals to test processes before opening wider clinics, but even well-intended efforts involving philanthropy staff and donors can be seen negatively.”

Medical ethicists weren’t the only ones to weigh-in on the situation. The Association of Fundraising Professionals, the largest community of charities and fundraisers in the world, has released the following statement from President and CEO Mike Geiger, MBA, CPA:

The idea of hospital systems, or any charity, ignoring protocols, guidance or restrictions—regardless of origin—and offering certain donors and board members the opportunity to ‘skip the line’ and receive vaccinations ahead of their scheduled time is antithetical to the values of philanthropy and ethical fundraising….[emphasis added]

Offering vaccinations to major donors, and not to populations with the greatest need … destroys public trust—to say nothing of the possible impact on constituents of the charity who don’t receive the appropriate vaccinations or medical attention in time.…

AFP, and the 26,000 members in our community around the world who represent nearly every charitable cause imaginable, condemn this activity in the strongest manner possible. It is unethical and inequitable, and we call on all health systems and all providers of vaccinations to deliver this service in a manner that is fair and equitable for the people they serve and consistent with procedures developed by the Centers for Disease Control and all applicable levels of government.”

Some hospitals around the country have behaved unethically, violated the law, or both. However, even those who may have a legitimate explanation for their actions and who have done nothing wrong may still be giving the appearance of having done something unethical involving their interactions with major donors. That’s still a big problem. As the AFP Code of Ethical Standards states clearly:

How Can You “Vaccinate” Your Nonprofit for Good Financial Health?

It’s no secret that the coronavirus pandemic has caused death and economic destruction around the world. The nonprofit sector has not been immune from the ravages of COVID-19.

While some charities have held their own when it comes to fundraising, or have even managed an uptick, others have experienced a downturn. If the economy doesn’t fully recover, and quickly, all organizations may find fundraising more difficult in the months and years ahead. With a corresponding drop in earned income, the financial health of charities is in danger.

Richard Radcliffe is the Founder of Radcliffe Consulting based in the UK. He recently wrote a passionate article explaining how charities can ensure their financial health and security in the years ahead. Because he is kind and cares deeply about the wellbeing of the third sector, Richard has given me permission to share his wisdom with you:

 

Legacies are the “vaccine” for good, long-term financial health for your nonprofit organization.

Legacies are a security blanket, a treasure trove to dip into to GROW or to protect your charity in times of emergency.

Individual giving does not build reserves.

Trusts and Foundations give for projects.

Statutory funding is project or service-based.

Corporate funds are largely restricted or for dual interest.

What is there NOT to like about legacies? The answer is simple: It is wanting money NOW – rather like a baby screaming to be fed NOW.

Mahatma Gandhi said, “The future depends on what you do today.” But legacies are not gained today or tomorrow. And bad leaders only think of today whilst in their seats of power.

Investing in legacies is like dieting: “Great idea but let’s leave it for another day.” And then a pandemic hits and all hell breaks out. Furloughed staff, redundancies, reduction in services.

Good leaders are visionaries who plan to fulfill their charity’s vision and mission AFTER their own lifetime as leaders.

An Unusual Post for an Unusual Time

This is an unusual post for me. It’s not about fundraising or nonprofit management. Nevertheless, it’s appropriate for this unusual time. If you’re like me, 2020 has been a stressful year for you. Now, in the closing weeks of the year, that stress level is being ratcheted up. Professionally, we’re struggling to raise as much money as we can at year-end. Personally, we’re trying to make holiday plans while coping with ever-changing government directives concerning the pandemic.

To help you more effectively deal with the stress in your life, I want to tell you about two special webinars. Both of these programs will be taught by Michelle Stortz, C-IAYT. Michelle is not just a certified yoga therapist, she’s my instructor. So, I can tell you, from personal knowledge, that she’s experienced, compassionate, practical, and helpful.

While many of Michelle’s programs are designed for cancer patients and survivors, the following two programs are open to the general public and will benefit anyone experiencing stress:

Stress Reduction Through Yoga:

In this session, you’ll learn simple mind-body practices to reduce stress, get better sleep, and cultivate peace. Harness the power of your mind to stay calm in the midst of any storm! No prior yoga experience is necessary.

Date:  Wednesday, December 9, 2020

Time:  1:00 – 2:00 PM (EST)

Fee: This is a FREE event.

Register Now:  Click here to register now for this free Zoom event.

Winter Solstice Yoga Nidra:

The winter solstice is a special time of year. It’s the point at which the northern hemisphere is farthest from the strong influence of the sun and is more exposed to the vast universe. It’s the longest night of the year and, therefore, it’s a good time to work with your dreams … both your sleeping dreams and your deepest desires. Yoga Nidra is a guided, multi-stage relaxation/meditation practice that takes you to that sweet spot between wakefulness and sleep. Here you can hover near the subconscious, and allow your dreams to take the stage. No yoga or meditation experience is necessary. In this Winter Solstice Yoga Nidra event on Zoom, we’ll take time to:

• write about our deepest desires and dreams
• move the body and breathe a bit
• then settle into the guided Nidra practice for quiet inward visioning
• we’ll emerge and sit in simple meditation
• then we’ll take time to discuss and write thoughts and/or action steps

Sink into the deep wisdom of the body and let your dreams have more playtime.

You’ll need:

• a quiet place where you won’t be interrupted
• comfy clothing in layers to adjust for body temp fluctuations
• space to lie down, usually on the floor, but a couch, recliner, or bed will do
• supportive props like blankets and pillows
• a journal/paper and pen

Date:  Sunday, December 20, 2020

Time:  4:00 – 6:00 PM (EST)

Fee:  $20 per person plus a small processing charge

Register Now:  Click here to register now for this Zoom event.

My wife and I are planning to participate in both events. I encourage you to consider attending one or both of the programs. Self-care is vitally important. You can’t take care of others, professionally or personally, unless you first take care of yourself. Here is how I put it in an article for the Association of Fundraising Professionals:

Why am I Especially Thankful This Year?

This year has been, um, challenging for all of us. I know there’s a good chance that you have a more colorful word to describe 2020. So, given how tough the year has been, why am I especially thankful this year?

Quite simply, I’m grateful to still be alive. I’m not just talking about avoiding COVID-19. You see, it’s almost seven years since I was diagnosed with an exceedingly rare, deadly form of cancer, Appendiceal Carcinoma with Pseudomyxoma Peritonei (PMP). If it wasn’t for brilliant medical intervention, my last Thanksgiving would have been in 2014.

Because a number of people have been asking me how my health is, and because some people with PMP are seeking insights on the Internet, I thought I would take this opportunity to provide an update. In addition, I want to share some news that has implications for your fundraising efforts.

Since 2014, I’ve had two massive, 14-hour surgeries with each followed a short time later by an additional two-hour surgery. I’ve also undergone extensive chemotherapy treatments to slow the progression of the cancer. Furthermore, I’ve been receiving mistletoe extract injections to mitigate chemo side effects and, perhaps, enhance the effectiveness of the chemo. Unfortunately, there is no cure for PMP. The best I can hope for is to slow the disease and delay the need for the next huge surgery. Not only will that enhance my quality of life, it will extend my life because there is a limit to the surgical option.

Last week, I received my latest CT Scan result. That report, along with my recent blood test results, reveals that my cancer is stable! That means I’m able to take a break from chemo for two to three months, beginning just in time for Thanksgiving.

Thanks to an army of doctors and nurses, especially those at the University of Pittsburgh Medical Center and University of Pennsylvania – Penn Medicine, I’m still here. I also need to mention that Lisa, my wife, is a critical part of my care team. I couldn’t have made this journey over the past seven years without her. Every time I look at her, I’m reminded that, despite everything I’ve been through, I’m still the luckiest guy on Earth.

My adventure hasn’t been easy. At times, it’s been absolutely brutal. On a daily basis, it’s a struggle. But, with a great medical team and the support of family, friends, colleagues, and clients, I continue to move forward. There’s too much to do for me to start wallowing now.

Recently, I received some additional good news. UPMC is expecting to receive approval soon for a clinical trial of a minimally invasive treatment that would further delay the need for another big surgery. I’m a candidate for this. The treatment has already shown promise in Australia-based testing. If all goes according to plan, the treatment will enhance the quality of my life while extending it.

This brings me to your fundraising program.

Amy Coney Barrett Knows Something You Need to Know

This post has nothing to do with politics or judicial philosophy. Instead, I want to share an important story I heard during the US Senate hearings for Amy Coney Barrett. The hearings ultimately led to her confirmation as Associate Justice to the US Supreme Court with the support of a majority of Americans. That story can help you ensure the happiness of your donors, which could result in better retention and upgraded support.

Amy Coney Barrett being sworn in before the US Senate Judiciary Committee.

Laura Wolk, a former student of Barrett’s at the University of Notre Dame, testified during the final day of the Senate Judiciary Committee hearings. Wolk, who is blind, said that she uses adaptive technology and alerted the law school of her needs in advance of her attendance. Unfortunately, the University did not provide the needed accommodations, and Wolk’s own computer was failing. As she struggled to keep up, she grew increasingly frustrated. Not knowing where to turn, she approached Barrett, one of her professors, to ask for assistance navigating the University’s system.

A retinal disease in her infancy caused Wolk’s blindness. By the time she went to law school, she was certainly accustomed to having to be her own advocate. She didn’t expect much from Barrett, but any help would ease her burden. Wolk described Barrett during their meeting:

She sat silently, listening with deep attention as I explained my situation. She exuded calm and compassion, giving me the freedom to let down my guard and come apart.”

Wolk shared what happened when she finished explaining her situation:

‘Laura’, she said, ‘this is no longer your problem. It’s my problem.’” (3:00 minute mark)

Wolk said she expected to be directed to bureaucratic channels. Instead, Barrett made her feel comfortable to share all of her challenges and, then, she solved the problems. Wolk went on to graduate law school, clerked for Associate Justice Clarence Thomas, and now has a successful practice.

So, what does this story have to do with fundraising? Plenty!

If a donor comes to you with a question or problem, resist thinking of it as an interruption to your day. Instead, of passing them off to someone else or quickly brushing them aside, take the time to really listen. Don’t offer an automatic, institutional response. As an alternative, offer a warm, compassionate response. If it’s within your power, take on the donor’s issue as your own.

What might this look like?

Imagine you’re at your desk working on the final touches of your fundraising report to the board as your deadline draws near. Your phone rings. You answer, and are greeted by a donor. The donor wants to know how to make a gift of appreciated stock to your organization before the end of the year. Here are some courses of action you could take:

1. You can put the donor on hold and transfer her to your assistant.
2. You can direct the donor to your organization’s website where the instructions exist.
3. You can thank the donor, commiserate about the somewhat complex process, explain the process to the donor and, then, offer to email a summary of the instructions to the donor, perhaps with a link to the appropriate web page as well.

While Option 1 would let you get back to your board report more quickly, which option would make the donor feel most loved? I believe the best course of action is Option 3.

If your donor feels you truly care about him, he will be more likely to care about your organization. He’ll be more likely to renew and upgrade support. Yes, loving your donors takes more time and effort, but it will yield powerful results.

What should you do?

When someone approaches you with a question, challenge, or problem, follow these five steps:

So, Wake Me Up When It’s All Over

There’s a line in the well-known Avicci song that goes, “So, wake me up when it’s all over.” It nicely sums up my feelings about 2020. It’s been a stressful year for us all in so many ways. Yet, despite the strain, I keep seeing articles and webinars full of unfounded optimism, particularly as they relate to fundraising in the post-COVID-19 world. Here are just a small number of the titles I’ve come across:

• Rebooting and Managing After COVID-19
• How to Keep Your Donors Once the Crisis Ends
• Fundraising Predictions for After COVID-19
• Fundraising Post-COVID-19
• How Nonprofits Should Approach Grant Makers Post-Covid-19
• After the Pandemic Fundraising

So, when is this post-COVID-19 time supposed to arrive?

No one knows. However, we do know it’s not going to arrive anytime soon. As I write this, the USA, and much of the world, is experiencing a coronavirus pandemic resurgence following efforts to reopen economies. We still don’t have a vaccine. While there might be a viable vaccine by the end of this year, experts say broad distribution will not be possible until probably the middle of 2021, at best. In the meantime, we still do not have solid, reliable therapeutics to treat the disease.

Even once people are vaccinated and the pandemic is brought under control, economists tell us it will take months, if not years, for the economy to recover. The Federal Reserve says that the jobless rate will remain elevated through 2022. The Congressional Budget Office believes it will take two years for the economy to recover to a pre-pandemic level. Even once things do return to “normal,” we do not know what that new normal will look like. For example, “about 2 in 5 Americans in a nationwide Bankrate survey from May, for instance, said they expect to shop less at traditional in-person retailers.”

While it will take time for the overall economy to recover, it will also take time for individuals to recover from financial as well as other physical and mental health issues made worse during the pandemic. For example, the percentage of individuals experiencing depression doubled even during the early months of the pandemic, according to the US Census Bureau.

So, if the lovely post-COVID-19 world is not going to arrive anytime soon, what should you really be focusing on over the next several months or longer? Here are just a handful of ideas:

Your Charity’s Greatest Opportunity is the Rising Need of Donors to Connect

The coronavirus (COVID-19) pandemic has presented fundraising professionals with a large number of significant difficulties. One of those challenges is trying to figure out where to get solid, actionable information to help nonprofit organizations raise much-needed funds.

Now, Prof. Jen Shang, Co-Director of the Institute for Sustainable Philanthropy, comes to our rescue. On Friday, May 22, 2020, she will be presenting a special webinar: “How to Love Your Donors During COVID-19.” I recently received an email from Prof. Shang, along with three tips, that she is kindly allowing me to share with you.

Prof. Shang, the world’s only philanthropic psychologist, has found that the pandemic is causing donors to feel a lack of wellbeing. This is due in large part to a decrease in the sense of connection that people feel during the lockdown. Interestingly, this presents an opportunity for your charity.

When you help your donors feel a sense of real connection, you will help them feel a greater sense of wellbeing. When they associate that greater sense of wellbeing with your nonprofit organization, they will be more likely to renew and increase their support now and well into the future. In other words, by taking care of your donors, you will be taking care of your charity.

One of the things that will make this webinar a valuable experience for you is that it is based on scientific research rather than simply relying on war stories or opinion. In other words, the many bright ideas you’ll learn will be solid and safely actionable. As someone who has taken Prof. Shang’s Philanthropic Psychology course, I can personally assure you that you will get meaningful information that will help you enhance your fundraising efforts.

Here is Prof. Shang’s message:

 

COVID-19 has created such uncertainty in our lives that many are wondering how and when life will ever get back to normal and how we will survive it all in the meantime.

At the Institute for Sustainable Philanthropy, we have not stopped collecting data since the first country locked down at the beginning of this pandemic. And we have been collecting data on how good people feel every other week since.

This [post] will give you a first sneak peak of the findings, and three tips on what to do NOW that you’ll find at the end.

We will release the full results of these studies in a webinar that we will host twice this Friday, May 22 at 6:00 am UK time and again at 3:00 pm UK time.

We studied over 4,000 adults in the US and other countries.

We measured about 30 feelings that people experienced on a daily basis. We found that people’s feelings significantly worsened during the first six weeks of the pandemic. As the lockdown continued, people felt progressively worse.

Specifically, people felt less connected to others.

Psychologists have known for decades that feeling connected to others is one of the three most fundamental needs we have as humans. Our need to have this fulfilled cannot be changed. It is as certain as our life exists. Our sense of connectedness declines when we are isolated in lockdown, when we cannot physically see anyone or talk to anyone, and when we cannot hug anyone or kiss anyone. We have seen our connectedness score declining for over six weeks now.

There is no uncertainty in any of it. When humans are locked down, their need to connect rises. With data, we also know what they need and in what quantity.

Warning Signs You Need to Know About

While the nonprofit sector continues to raise massive amounts of money, danger lies ahead for fundraising professionals as the coronavirus health crisis leads us further into an economic calamity.

As the COVID-19 pandemic gained traction, individuals, corporations, and foundations have responded with robust giving. For example, individual giving revenue through direct mail, processed by Merkle RMG, has increased 5.8 percent year-over-year even while the volume of donations dropped by 15.5 percent, according to Merkle RMG’s Impact Report, COVID-19: How the Coronavirus Pandemic is Impacting Direct Mail Fundraising (transactions through April 19, 2020).

The initial philanthropic response to the pandemic is not surprising for those who have experienced major challenges in the past. Giving lags changes in economic conditions. For instance, during the Great Recession (2007-09), we also saw a similar philanthropic pattern with revenue initially increasing while the number of donors declined. The following graph from Target Analytics, a Blackbaud company, illustrates the point:

Now, let me just mention that no one has a crystal ball or time machine. Therefore, no one, including me, can precisely predict what will happen and when it will happen. Nevertheless, we do know that during past crises, we saw that charitable giving fell after an initial surge.

The overall economy has a profound effect on philanthropic giving. We know that overall philanthropy correlates with Gross Domestic Product at the rate of about two percent. Furthermore, historical data shows that individual giving correlates with personal income at the rate of roughly two percent. In other words, when the economy is strong, giving will be strong; when the economy falters, giving will slow.

Because the coronavirus pandemic has caused a major global economic disruption, we can anticipate that this will eventually have a negative effect on philanthropic giving. Consider these warning signs:

• The Congressional Budget Office predicts a 5.6 percent drop for 2020 GDP.
• The unemployment rate is expected to climb to 14 percent.
• Goldman Sachs foresees that the global economic impact of the pandemic will be four times worse than the Great Recession.
• The US National Debt is expected to exceed 100 percent of GDP by year-end. The debt has now surpassed $24.7 trillion, which is $74,895 per citizen (as of April 27).

As corporations see profits eroded, as foundations see investments decimated, as individuals see personal income slashed, charitable giving will likely decrease. However, there are some mitigating factors in play:

Do You Want to Take a Walk on the Wild Side?

This post is a bit unusual. Okay, it’s a lot unusual.

I recently discovered that some of my most viewed tweets are pictures of flowers. That’s right. Not puppies. Not kittens. Not a pizza-eating groundhog. Flowers!

I guess I shouldn’t be too surprised. After all, most of us are living under stay-at-home orders due to the coronavirus (COVID-19) pandemic. We don’t get outside nearly as much as we normally would during springtime. Furthermore, we’re inundated with non-stop, doom-and-gloom news coverage. Even the nonprofit and fundraising media have been reporting extensively about the impact of coronavirus. You’ve certainly read a number of such posts here.

So, after thinking about all of this, I realized that, like me, you could probably use a bit of a break. A break from the scary news. A break from a stressful life. A break from being mostly trapped indoors.

Because self-care is so important if we’re going to remain able to help others, I thought I’d give you a short escape. Experiencing nature is said to make us feel happier. It also improves our health in a number of ways, including boosting the immune system. That’s why I decided to share some simple snapshots I’ve taken with my cell phone while out on walks with my wife. I took most of the photos at our neighborhood garden at Pennsylvania Hospital, the nation’s first hospital. I’m also sharing a daffodil photo from the historic Hill-Physick House, and cherry blossom pictures from in front of my home.

I hope you enjoy this walk on the wild side:

Free Help to Protect Children During a Crisis

Almost every April, I devote one blog post to stopping child sexual abuse. It’s a significant departure from the nonprofit and fundraising topics I typically write about. So, let me tell you why I do it.

First, April is Child Abuse Prevention Month, and I want to support that initiative.

Second, many years ago, I served on a jury that heard a child sex abuse case involving a little boy and his step-grandfather. I’ll spare you the horrifying, nightmarish details. Suffice it to say, we found the step-grandfather guilty. When my jury service was completed, what I had heard continued to haunt me.

Before the trial, I assumed that child molesters and rapists were either priests or trench-coat wearing guys in vans. I also believed that incidents of such abuse were relatively rare. The news media coverage at the time would lead most people to a similar belief. However, during the trial, I learned differently:

• 1 in 10 children will be sexually abused before turning 18;
• 1 in 7 girls, and 1 in 25 boys are sexually abused before turning 18;
• 20 percent of sexually abused children are under age 8;
• 90 percent of children know their abuser (in other words, the abuser is not a stranger);
• 50 percent of sexually abused children under the age of 6 were abused by a family member (the younger the child the more likely the abuser is a member of the family).

As I continued to process my jury experience, I researched the organizations that were addressing the issue. As a result, I became closely involved with the work of the Philadelphia Children’s Alliance, a regional child advocacy center. PCA does fantastic work bringing justice and healing to sexually abused children.

I also became acquainted with Darkness to Light^®, which provides superb training programs and funds scholarly research related to the issue of child sexual abuse. Now, I want to make you aware of one particular FREE, 30-minute online training that D2L is offering: Protecting Children During a Crisis.

As the D2L website says: