Posts tagged ‘cultivation’

November 30, 2016

Want More Donors and More Money?

Would you like to find more donors?

Would you like to have more donors renew and upgrade their support?

Would you like to raise more money for your nonprofit organization?

If so, avoid de-motivating people by making them think their support is insignificant, unnecessary, and unwanted.

Donors want to feel their contributions are making a difference. If they do not feel that is the case, they’ll take their support elsewhere. Consider the following representative comment voiced in a focus group hosted by researchers Dr. Adrian Sargeant and Dr. Jen Shang:

[W]e feel this strong sense of wanting to make a difference.”

Yet, despite this simple truth, many charities regularly alienate prospects and donors. Although the alienation is almost always unintentional, it remains a very real problem. Reflect on the following representative comment heard in a focus group study conducted by The George Washington University:

When you see bequests given to universities they are substantial. You really feel embarrassed that you don’t have that money.”

So, what are nonprofit organizations doing that is embarrassing and alienating donors? Well, many things. For now, I’ll focus on just one action that underscores the point raised by the GW alumnus.

money-in-hands-by-401k-2012-via-flickrMany organizations celebrate the support of mega-philanthropists. They profile these individuals in institutional publications; they recognize them on donor walls; they thank them at public events. While all of this is perfectly appropriate, a problem arises when an organization recognizes mega-donors to the exclusion of all other supporters.

When people see that only mega-donors are celebrated, they can begin to think that their support is unnecessary and not genuinely appreciated. This is true for annual giving, planned giving, capital campaign giving, and other types of campaigns.

If you want a diverse group of supporters, be sure to celebrate a diverse group of supporters. When people see people like themselves supporting your organization, research shows they’ll be more likely to support as well. When I speak of cultivating a diverse group of supporters, I mean in every sense of the term: gender, race, religion, age, philanthropic means, etc.

That’s an idea that the folks at the Arizona State University School of Nursing and Health Innovation understand. As I shared in my book, Donor-Centered Planned Gift Marketing:

November 18, 2016

How to Avoid a Disastrous Political Debate with Donors

[Publisher’s Note: This is not a political or partisan post. Instead, this post will explore how you can successfully navigate potentially controversial, post-election political debates with your donors. As always, civil and on-topic comments are encouraged, whether or not you agree with the points covered in the post. However, overtly political or partisan comments will not be published nor will the rants of internet trolls.]

 

We have just gone through a long, controversial, historic, passionate election cycle in the USA. People continue to take to the streets to protest. The election continues to be a topic of robust conversation that should make Thanksgiving dinners around the country a bit more interesting this year.

Matt Hugg, of Hugg Dot Net LLC, wrote on LinkedIn:

Okay, I’ll admit it… I’ve now voted in 10 US presidential election cycles. In all of those, I don’t ever remember such post-election discussions (and other means of expression) from both sides, as I do this one.”

megaphones-image-via-shutterstockHugg went on to ask how we should handle conversations with prospects and donors when they bring up the election, especially if they voted for the person you did not support.

Hugg raises an important issue. While I rattled off a quick comment, I’ve since given the issue more thought. Because of the significance of the issue, I’ve put together a list five of points for you to keep in mind when speaking with prospects and donors if you want to avoid problems and raise more money:

●  Remember, no one ever won a debate with a prospect or donor. Even if you technically win the argument, there’s an excellent chance you’ll lose the donation. So, it’s generally a good idea to avoid engaging in controversial conversations.

●  When speaking with donors, it’s important to remember that you do not represent a political cause (unless you actually do). When possible and appropriate you should steer a neutral course that puts the emphasis on organizational mission. There are any number of ways you can avoid engaging in a political conversation started by a donor. For example, you can side-step the discussion by using one of the following phrases or others:

“That’s an interesting point.”

“I’ve heard from a number of other people who have raised the same issue.”

“I suspect I’ll talk with a number of other people who share your view.”

“That’s an important issue. What do you think?”

“That’s an interesting concern. One of the things we’re concerned about is how the new policy agenda will impact those we’re trying to serve.”

The key is to provide a neutral response, and bring the conversation back to the organization’s mission and case for support.

October 28, 2016

Get a Free Halloween Treat for Fundraisers

If you’re like most fundraising professionals, you’re not optimally asking donors to include your nonprofit organization in their will.

You’re probably not driving as much traffic to your planned giving webpage as you could.

You’re also probably less successful at closing Charitable Gift Annuities than you could be.

lone-ranger-and-silver-via-melocuentas-flickr

The Lone Ranger and Silver.

I know. You decided to read this post to discover how you can get a free Halloween treat. Instead, you’re probably starting to feel tricked. But, fear not! Russell James, JD, PhD, CFP, the Texas Tech University professor and philanthropy researcher, along with the good folks at MarketSmart, are riding in to save the day.

Last summer, James conducted a webinar hosted by MarketSmart. During his presentation, James unveiled his latest, powerful research findings along with research insights from others. You can learn more about the webinar and get some great tips by clicking here.

Now, for your treat, MarketSmart has distilled James’ webinar into a free, 22-page e-book that will help you raise millions of dollars more. For example, here’s just one simple, yet valuable tip:

When you want to engage people in a conversation about Charitable Gift Annuities, what is the best way to describe this giving vehicle to make folks want to learn more?

James tested five phrases. Among the 2,550 respondents, he discovered the percentage interested in learning more:

October 26, 2016

Want to Inspire More Donor Loyalty? Do What Marriott Does.

Marriott gets it. The nonprofit sector, not so much.

I’m talking about fostering loyalty.

Marriott has built the world’s largest hotel company, in part, by knowing how to cultivate a loyal customer base. By contrast, nonprofit organizations continue to hemorrhage donors, according to the 2016 Fundraising Effectiveness Survey Report from the Association of Fundraising Professionals and the Urban Institute.

To help you more effectively cultivate donor loyalty, I’m going to give you one excellent, easy to implement idea inspired by a recent email I received from Marriott:

Show your donors gratitude.

I know. I know. You already send your donors a thank-you letter when they make a gift. As a donor, I expect that, just like I’ve come to expect a thank-you email from Marriott following each of my stays.

gratitude-cartoonBeyond that, I’m talking about surprising people with an unexpected message of gratitude.

A few days ago, I received an unanticipated email from Marriott. The subject line read: “Happy 24th Anniversary!”

I had no idea what the email was about, so I had to open it. When I did, I read:

Congratulations! Celebrate 24 Years with Marriott Rewards

Michael, we appreciate your loyalty and thank you for your membership!”

Yes, I know I’m a Marriott Rewards member. However, I did not realize that I’ve been a Marriott Rewards member for nearly a quarter-century. I enjoyed learning that. In addition, I appreciated being thanked for my overall loyalty, not simply for a recent stay.

Throughout the year, often in surprising ways, Marriott shows they appreciate my business. The fact that Marriott shows its appreciation is not the only reason the company is my preferred hotel company. There are many other factors. But, the fact that Marriott makes me feel valued is one important reason I value Marriott.

This Thanksgiving, send your donors an email, card, or letter expressing your appreciation. However, don’t simply thank them for their past support; thank them for caring about whatever your organization’s mission is. Also, thank them for their loyalty.

October 10, 2016

Stop Pretending that You Work for Stanford!

It’s big news.

Stanford University has shut down its annual fund telephone fundraising program. You can visit the university’s official web page announcing the decision by clicking here.

It’s all over the blog-a-sphere. It’s made headlines in publications for the nonprofit sector. For example, here’s a headline from The Chronicle of Philanthropy:

Stanford Hangs Up on Telemarketing — Will Others Follow?

I’ll leave it to others to speculate about whether other charities will follow Stanford’s lead. I’ll also leave it to others to consider whether or not Stanford made a wise or foolish move. Instead, I’ll focus on whether or not you should also discontinue your organization’s telephone fundraising effort.

Simply put, you should probably keep your own telephone fundraising program. Here are just five of my random thoughts that lead me to that conclusion:

1.  You do NOT work for Stanford, so don’t act like you do!

Unless I’m mistaken, you don’t work for Stanford, or Harvard, or Yale, or Cornell, etc. Such prestigious universities have built-in, loyal constituencies and, therefore, have a massive advantage over your charity. Not only could Stanford eliminate its phone program, it could fire nearly its entire development staff and still raise much more money than the average American nonprofit organization.

Your challenges are vastly different than those faced by Stanford. So, your challenges require different solutions. If you don’t work at Stanford, don’t make the mistake of acting as if you do.

2.  Telephone fundraising is less effective than it was, but it still works.

Since the early 1980s, I’ve heard so-called experts predicting the extinction of telephone fundraising. Interestingly, many of those same folks also predicted the demise of direct mail.

phone-and-moneyThey were wrong then, and they are wrong now. Neither mail nor phone are as effective as they once were. However, smart organizations have evolved their use of both. The outcome is that these organizations are still able to produce worthwhile results by both mail and phone. It’s not about extinction; it’s about innovation and evolution.

Colin Bickley, writing for NonProfitPRO, provides superb analysis of some of the telephone fundraising challenges faced by the nonprofit sector. However, Bickley concludes:

The telefundraising business is never going away, but it is changing. And right now, it’s clear that its changing more than ever.”

3.  Don’t judge all telephone fundraising by looking just at bad programs.

I’m amazed at how many TERRIBLE telephone fundraising calls I receive. I suspect that the charities responsible are either disappointed with their program results, don’t know enough to be disappointed, or think they’re doing the best they can.

Let’s face it. If your calls are bad, your results will be bad. Remember the old adage, “Garbage in, garbage out.” Not all calling programs are of equal quality. If you’re not getting the results you want, look for opportunities to improve before abandoning the entire medium. You wouldn’t stop your direct mail efforts because one mailing didn’t do well, would you?

September 22, 2016

Don’t Miss Out on the 8 Benefits of Engaging Donors

The following is an excerpt from my guest post that I’m honored to have published on the Bloomerang blog:

I think happiness is a combination of pleasure, engagement and meaningfulness.” — Dr. Ian K. Smith, celebrity physician

You will be a successful fundraising professional if you make giving fun and enjoyable for donors and engage them in ways they will find meaningful.

bullhorn-cartoon-header-bloomerangGallup, the international polling company, conducted a survey of over 17,000 American donors to better understand giving behaviors. One of Gallup’s key findings was that effective engagement leads to greater donor loyalty. Gallup’s Daniela Yu and Amy Adkins report:

“… [donors] keep going back to the causes that emotionally engage them.”

Sound engagement practices will lead to strong donor retention and increased levels of giving. For example, the simple act of engaging a donor by calling to thank her for her gift can have a profound impact. Penelope Burk in her book Donor Centered Fundraising reports that:

September 13, 2016

Is Social Media Hurting Your #Nonprofit Organization?

We’ve all heard the stories of social media success. President Barack Obama was perhaps the first US presidential candidate to raise a significant amount of money via social media. The Ice-Bucket Challenge generated awareness and raised over $100 million for the ALS Association in addition to millions more for other ALS charities. Countless charities have raised vast amounts of money through crowd funding campaigns and other social media campaigns.

Despite the success stories, there is a dark side to social media that can actually hurt your nonprofit organization.

Let me share a cautionary story involving Ursinus College. It reveals how, when used improperly, social media can embarrass your charity, cause supporters to abandon the organization, and reduce contributions.

Here’s what went horribly wrong:

Got to love a janitor with a ‘Ban Fracking Now’ sticker on his bucket. Barack is clearly reaching his target demographic.”

“Yoga pants? Per my DTW visual survey, only 10 percent of users should be wearing them. The rest need to be in sweats – or actually get dressed.”

“Just saw an Aborigenese in ‘full gear’ talking on an iPhone. What’s next Ben Franklin driving a Tesla?”

“Bruce Jenner [Caitlyn Jenner] got 25 K for speaking engagements. Caitlyn gets $100K. What wage gap?”

Those are just four of the, ahem, colorful tweets posted on Twitter by Michael C. Marcon, an insurance executive and 1986 Ursinus graduate. These tweets, and others from Marcon, might have gone unnoticed except for one thing: When they were posted, Marcon was a member of the Ursinus College board of trustees and, as of July 1, he served as Chairman of that board.

some-failed-tweets-by-irish-typepad-via-flickrRecently, several of Marcon’s tweets were publicized on Facebook by Jordan Ostrum, an Ursinus senior, and later on Odyssey by Haley Brush, an Ursinus English major. She told Philly.com, “The tweets that were sexist made me really uncomfortable…. Comments like that are really inappropriate for someone in his position.”

David Bloom, another member of the Ursinus board, made an even stronger statement about Marcon’s tweets when he resigned in protest. He said, “I read strong evidence of an elitist, racist, sexist, body-shaming, anti-LGBTQ, exclusive-minded and generally intolerant individual.” He also called for Marcon to resign.

Ostrum was the first to publicly raise the issue of contributions when he said, “I pledge to not donate money to the Ursinus College Annual Fund while Michael Marcon remains on the Board of Trustees… If he remains on the board, they are saying yes [to] his behavior. I will say no — with my money.”

Days after the news story broke and Marcon met with administrators, faculty members, and students, he resigned from the board. In a written statement, Marcon said:

August 26, 2016

Do You Know How to Take Criticism?

I received an extraordinary message recently.

With the permission of the author, I’m going to share her message with you. It’s a superb example of how to respond to criticism and turn it into an opportunity for positive engagement. It also raises an interesting issue that I want you to share your thoughts about.

Books by Aimee Rivers via FlickrEarlier this summer, my wife received an email appeal from Philadelphia’s Rosenbach Museum and Library. That email inspired me to write a blog post about fundraising by email (“Stop Making Stupid Email and Direct Mail Mistakes”). The post was admittedly harsh though constructive with eight useful tips for the Rosenbach and you.

While I alerted the Rosenbach to the post, I never heard back from staff, not that I had requested or expected a reply. That is until a few weeks ago when I received the following message from Sara Davis, the new Marketing Manager at the Rosenbach:

Dear Mr. Rosen:

I recently joined the Rosenbach staff as the manager of marketing, and I stumbled across this post while getting caught up on social media mentions from the summer. Criticism can be hard to hear, and I admit that I would prefer to have found it in my inbox rather than see the organization named in a public post, but your advice is constructive and I agree with many of your points. I will certainly pass these suggestions along to my colleagues; our future campaigns will no doubt benefit from your expertise. My thanks.”

Wow! I was impressed with Davis’ message. I thank her for allowing me to share it with you. Davis struck the right tone and managed to pack a lot into a brief communication. Here are some of the reasons her message works:

Respectful. Davis referred to me as Mr. Rosen, knowing and respecting my feelings on the subject of salutations, which I had addressed in my post. Davis and I did not know each other, so an informal form of address would have been presumptuous.

Introduction. Davis introduced herself to me, told me her title, and mentioned that she is new to the Rosenbach, hence the delay in contacting me. This established a personal connection while putting her message into context.

Honesty. Davis shared her honest feelings about seeing my post. But, she did so in a professional way, without whining, complaining, or being defensive. She did not take my criticism personally. She did not take offense or, at least, she did not show that she was offended.

Value. Davis acknowledged that my post offered constructive criticism. She went on to show that she valued the tips I provided in my post. She also mentioned that she would share my advice with her colleagues. By valuing my advice, she showed she values me.

Thank you. Davis then concluded her message by thanking me! How often do you thank people for having criticized you or your organization? I know that I don’t do it very often. However, by thanking me, Davis reveals an understanding that constructive feedback is an opportunity for us to improve. She also understands that when someone takes the time to passionately and constructively offer criticism, it’s probably because they care.

Engagement. By writing to me, Davis engaged me and opened the door for me to contact her directly. And that’s exactly what I did.

Because of my interaction with Davis, the positive feelings I once had for the Rosenbach were rekindled.

When choosing whether to respond to criticism and, if responding, how to respond, we would be well served by following Davis’ excellent example. Every interaction is an opportunity for cultivation.

Now, here is where you come in.

August 23, 2016

Special Report: What You Don’t Know about Donor Retention will Hurt You

[Publisher’s Note: “Special Reports” are posted from time-to-time as a benefit for subscribers and frequent visitors to this blog. “Special Reports” are not widely promoted. To be notified of all new posts, including “Special Reports,” please take a moment to subscribe in the right-hand column. New subscribers will also receive a free e-book from researcher Dr. Russell James.]

The following is an excerpt from my guest post that I’m honored to have published on the Bloomerang blog:

The nonprofit sector is experiencing a serious problem, and it’s time we did something about it.

Fundraising experts and philanthropy researchers have been warning us that nonprofit organizations are losing donors at an alarming rate. Ken Burnett, Managing Trustee at SOFII and author of Relationship Fundraising sums it up best:

Our nonprofit sector is bleeding to death. We’re hemorrhaging donors, losing support as fast as we find it, seemingly condemned forever to pay a fortune just to stand still. It’s time we stemmed the flow.”

Donor retention is definitely a serious issue. Over the past ten years, the average overall donor retention rate has been just 44.5 percent, according to the 2016 Fundraising Effectiveness Survey Report from the Association of Fundraising Professionals and The Urban Institute. The new-donor retention rate for last year was far worse, a pitiful 26.6 percent!

August 5, 2016

The #Fundraising Secret for Success You Need to Know

What’s the secret to fundraising success?

Ice cream!

That’s right. Ice cream can help you achieve greater fundraising results. Really. I’m not just saying that because it’s August, and we’re setting new records for summer heat in Philadelphia. I know ice cream can help you because I saw first-hand what it has achieved for Smith College.

Let me explain.

This past Spring, my wife and I attended her class reunion at Smith. I enjoyed being with Lisa, and exploring the beautiful campus and the fun town of Northampton, Massachusetts. One of the highlights for me was seeing the College’s Gift Planning staff in action. Yes, I’m a bon-a-fide fundraising nerd, but you probably knew that already.

Sam Samuels, Christine Carr Hill, and Jeanette Wintjen staff the Smith College ice-cream stand during Reunion Weekend.

Sam Samuels, Christine Carr Hill, and Jeanette Wintjen staff the Smith College ice-cream stand during Reunion Weekend.

I’m not talking about seeing the staff in action at the mildly stuffy, but well presented, Grécourt Society reception for legacy donors. Instead, I’m referring to the ice-cream stand that the Gift Planning staff operated in the Smith College Campus Center one warm mid-day. As the staff served up the free tasty treats, they had a chance to interact with alumnae. When appropriate, the staff, wearing aprons and serving up the ice cream themselves, was able to casually explain what The Grécourt Society is, why legacy giving is important to Smith, and how alumnae can support the College with a planned gift. At the ice-cream stand, there was also a table of gift planning promotional material.

This was a great way to showcase gift planning in a friendly, pressure-free, guilt-free, fun environment. Sam Samuels, Director of Gift Planning, told me that the ice-cream stand not only allowed the staff to educate, cultivate, and thank people, it actually led to a number of planned-gift commitments during the reunion weekend.

Now, I’m not suggesting you go out and set up an ice-cream stand. However, if we examine why the ice-cream stand worked, there are some things you can learn that will help you reach your fundraising goals.

Here are five things you need to know:

1. KISS. In 1960, the US Navy noted the design principle “Keep it simple, Stupid!” That’s what we see with the ice-cream stand. The Smith staff did not over think it; however, they certainly did the planning necessary to make it work. But, the concept itself was simple. It wasn’t a fancy dinner or a posh reception to educate and cultivate prospects, though such events have their place. And Smith did some of those as well. However, this simple activity allowed the staff to reach a broader audience in a low-key fashion.

2. Lifestyle Enabling. The Smith staff put themselves in the shoes of their prospects and donors. In other words, they were donor centered when thinking about how to attract the attention of potential planned gift donors. Instead of trying to get donors to attend an estate-planning seminar (yawn), the staff thought about how to meet the needs and desires of the alumnae. Most folks like ice cream. So, the staff chose to do something that would meet alumnae where they were (in or near the Campus Center), and give them something they would likely want (a cool lunchtime treat on a warm day). The ice cream stand also harkened back to the days when, as students, they would meet up with friends for ice cream at the student center. In short, Smith helped the alumnae live the life they want. That’s what drew in the alumnae.

%d bloggers like this: