Posts tagged ‘cultivation’

April 26, 2015

More on the Art of Sending Appeals

In my last blog post, “Is It Better or Worse to Send More Appeals?,” I acknowledged that sending multiple appeals to donors can raise more money for your organization, if you do it right. However, I also recognized that determining the correct number of appeals, raises more questions than answers.

Some organizations are not appealing enough while others are sending too many solicitations. As you might imagine, the post inspired a lively conversation in the comments section and in a number of discussion groups on LinkedIn.

One of the last comments I received came from Erica Waasdorp, President of A Direct Solution and author of Monthly Giving: The Sleeping Giant. Her insights and recommendations were on target and excellent. Because I did not want readers to miss what Erica had to say, I decided to share her message with you as a guest blog post. In turn, she was kind enough to add some additional material from her own blog:

 

 

I love this discussion. Super!

Whenever I present a webinar, I ask the question: how many times do you appeal to your donors. The answer typically is once, twice, maybe four times a year, if you’re lucky. Very rarely is it more than that. Now, these are usually the smaller organizations.

When I ask those same nonprofits what their retention rates are, they’re usually around the median, 43 percent.

When I ask those same nonprofits what they do with donors who just gave, the answer typically is, we’ll take those out of the next mailing of course.

WRONG!

When I ask them how deep they mail into their lapsed donors, they typically cut that off at three years. In other words, if someone has not responded in three years, they’ll never receive mail again.

WRONG!

I have extensively tested the following over the years:

1.  Always include those donors who just gave to you in the next appeal. Many of them will give again, especially if you have a great appeal that hits on all cylinders, namely, you thank them, you show them the impact of their donation, you have a great story and a good call to action.

I’ve seen, time and time again, that this is the best responsive group. Recency, Frequency Monetary Value has not become the standard in segmentation for nothing.

2.  Always include your lapsed donors in your appeal at least once a year, preferably in the fall/holiday appeal time frame. With the National Change of Address required by the post office, you’ll know you’re mailing to mailable addresses.

I’ve seen time and time again that this group responds at higher levels than a prospecting/acquisition campaign.

Michael’s numbers are correct: for acquisition of new donors, in fact, in some cases they might even be a bit worse, like perhaps $2.00 to $3.00 to raise $1.00.

No Junk Mail by Rupert Ganzer via FlickrBUT, when you bring these new donors in and you mail them as donors, you’re typically looking at $0.20 to raise a dollar. That means, you’re investing $1,000 to get $5,000 back. Where do you find that in the stock market?

Not to mention the opportunity to convert these donors to give monthly and upgrade them (and certainly increase their retention rates further that way, leading up to the ultimate gift down the road since monthly donors are seven times more likely to leave you in their will).

What I typically see with small organization: if your appeals don’t work, you may not mail enough, or not mail to the right donors, or you may have spent too much money on your direct mail and it’s not looking like a letter any longer.

Direct mail letters still work, but it’s all about which donors you target.

And if you have the right stories and the right mix of gratefulness and love for your donor, you can send them as many appeals as you’d like and they’ll respond every time.

Speaking of monthly donors, a question fundraisers often ask me, is:

Can I send appeals to my monthly donors?”

April 3, 2015

Whoopi Goldberg: “A Little Freakdom is Not Bad”

During her recent appearance at the 2015 AFP International Fundraising Conference, Whoopi Goldberg shared her thoughts about fundraising and how to inspire people to donate. At one point, the comedienne summed up her thinking on the subject with the simple line:

A little freakdom is not bad.”

In other words, dare to be different. Don’t be afraid to be creative.

As an example, Goldberg talked about fundraising galas designed to attract wealthy supporters. She pointed out that to get support, you have to be willing to give. She went on to say that while chicken might be an inexpensive dinner choice, gala goers are tired of chicken. She advised:

Less chicken! … Give them something they’re not expecting.”

When cultivating the support of donors, it’s important to differentiate your charity from others, particularly those with a similar mission. Doing something simple, and still inexpensive, such as serving Chinese food at a gala, can show people that your charity is different. It will also help people remember the event and the charity. For frequent gala goers, an unexpected, fresh menu will be a welcome change, according to Goldberg.

Whoopi Goldberg by Archman8 via FlickrYou can apply the same idea to all aspects of your interaction with donors.

Tom Hopkins, the sales guru, says, “Be different, but believable.”

Michael Kaiser, the arts consultant and former head of Kennedy Center, says, “Make giving fun.”

What all three of these folks are saying is that it’s important to be creative when working with people in order to stand out, to engage, and to make sure that the engagement is enjoyable. Doing so will attract and retain more support.

Think of the ways you can surprise your prospects and donors in a positive way. It doesn’t have to be Chinese food at a gala, as Goldberg suggested. But, think of what you can do. For example, you can surprise donors with a thank-you phone call after receiving their donations. You can invite new donors above a certain level to join you for a special behind-the-scenes tour. What can you do for your donors to bring a smile to their faces? It doesn’t have to be expensive to leave a positive impression.

Reflecting further on gala events, Goldberg says:

March 13, 2015

3 Mistakes You Make When You Meet Prospects

If you’re like most fundraising professionals, you make three costly mistakes whenever you meet with prospects and donors.

That insight comes from Robert Fogal, PhD, ACFRE, CAP, Founder and Principal of Fogal Associates and creator of StyleWise™. Below, Fogal identifies those three common mistakes and shares his ideas for how you can avoid making them.

Communication by Len Matthews via FlickrIn addition, Fogal will share further advice in his seminar “Achieving Effective Interpersonal Relations: How to Lead Others by Managing Ourselves” at the AFP International Fundraising Conference (Baltimore, March 29-31, 2015). If you can’t make it to the AFP Conference, you can purchase a recording of the session following the Conference.

Fogal will also lead a Spring 2015 Program involving two six-hour workshops and five one-hour individual coaching sessions to help fundraising professionals benefit from the StyleWise™ system. The StyleWise™ Program balances conceptual learning with practical application so you can be “wise” about knowing and using your “style” of personality. Fogal designed the Program to help you more effectively motivate donors. You can learn more about The StyleWise™ Program by clicking here.

So, what’s the thinking behind this and what are the three mistakes you’re probably making now? Here’s what Fogal tells us:

 

The comment on the evaluation form for the AFP chapter presentation on person-centered communication went like this:

Maybe I’ve been in the industry longer than most (30 years), but I feel that a good development officer has already found this out by hard knocks or is very intuitive on their [sic] own.”

There’s a lot of truth in that statement. And that’s how our field operated for most of the 20th century. (One wag suggested that the reason why we ask for “X” years of experience in job postings is that we want candidates to have made most of their mistakes on someone else’s payroll.)

Most organizations, however, no longer allow employees to learn primarily through hard knocks. It takes too much time, and is too costly. Yet, we all know (supposedly) that effective relationships, which take time, lead to the gifts most meaningful to both the donor and the organization.

So, caught in a difficult situation, we too often commit cardinal errors in relationship building.

1. We don’t listen very carefully to prospects because we talk too much.

We’ve known for decades how easy it is to overwhelm someone in a conversation — especially when we’re nervous or stressed, or super enthusiastic. The old saw is true — the person who talks the least is the one who manages the conversation. But, more important than controlling the conversation is the reality that when we talk too much, we communicate that what the other person has to say isn’t important.

I am acquainted with some fundraisers who rightfully advocate how the case for support is central to successful fundraising. Their problem, however, is that they overwhelm prospects by reciting the case — the whole thing, sometimes — in their eagerness to interpret their causes.

This leads me to the second mistake.

March 6, 2015

Stephen Pidgeon: What’s Holding Back Your Legacy Fundraising?

What is one of the major things holding back your legacy fundraising efforts?

It’s your own naivety.

You might not like that answer, but it’s the conclusion reached by veteran fundraising expert Stephen Pidgeon, the author of How to Love Your Donors (to Death). Pidgeon will be sharing his insights at the AFP International Fundraising Conference (Baltimore, March 29-31, 2015) in his session, “Bequest Asks: Getting it Right.”

So, why does Pidgeon think many fundraising professionals are naïve?

Because THEY don’t like to thinHow  to Love Your Donors (to Death)k about death, [fundraising professionals] assume everyone else is the same. Well, older people (those in their late 50’s and older) do think about death, and they do it perfectly maturely and with no fuss. And the older they get the more unexceptional it becomes. Indeed, supporters are often hugely grateful for the opportunity to make such a major contribution, albeit after they have died. It is a matter of immense pride to them that they have made the decision and sorted their affairs.

“I’d ask what right has some well paid, youthful charity executive (meaning in their mid-50s or younger!) to deny their best supporters the opportunity of such deep satisfaction. That’s patronising age-ism and when you get into your 60’s or older, nothing is more irritating. Casually mentioning the possibility of a bequest in a newsletter that is read by less than 20 percent of its circulation is NOT ‘…giving your best supporters the opportunity…’!”

The key when speaking with people about bequest giving is to do so in the right way. After all, you’re not helping them plan their funeral; you’re helping them build their legacy. (Be sure to read my post “One Word is Costing Your Fundraising Effort a Fortune” about the latest research findings reported by Dr. Russell James.)

Pidgeon also identifies another problem with bequest marketing:

February 27, 2015

Tom Ahern: 3 Questions Your Case for Support Must Answer

Nonprofit organizations spend hundreds of hours and thousands of dollars to produce their Case for Support, the document that outlines the organization’s activities and explains the need for philanthropic support.

ConnectionBut, are those hours and dollars well spent? If your organization is typical, the answer is: probably not.

That’s why communications expert and author Tom Ahern, of Ahern Communications, will be sharing his wisdom at the upcoming Association of Fundraising Professionals International Fundraising Conference (Baltimore, March 29-31, 2015). His session, “Fabulous Case! Building One,” will reveal the secrets for creating a powerful document that can actually help you raise more money.

Ahern recently shared with me some of the tips he’ll be presenting in greater detail at the Conference.

Did you know that every Case for Support should answer three fundamental questions? Ahern identifies those questions:

1. Why us? You need to answer this question by explaining what your organization does that is so uniquely wonderful that the world should want more of it and support its new plans.

If you need help answering the question, just imagine that your organization, project, program, idea, mission or vision has gone away. What difference would that make?

2. Why now? You need to explain why your campaign needs to happen immediately, perhaps showing people what has changed or the reason for sudden urgency.

In other words, your answer to this question must demonstrate why your project(s) is relevant to the person whose support you seek.

3. Why should the prospective donor care? Donors have many options for directing their philanthropic support. Often, there are even many organizations focused on similar missions. You need to help prospective donors understand why they should care about your organization and your project(s).

The key to answering this question is thinking about the impact your organization will have once it’s project(s) is fully funded. Remember, your campaign is not just about funding your organization; it’s about what your organization will accomplish.

When working to develop a fabulous Case for Support, Ahern says we must remember:

February 20, 2015

Building Donor Loyalty: What’s New?

Among first-time donors to nonprofit organizations, the median rate of attrition is 77 percent! In other words, more than three-quarters of all new donors to a charity walk in the front door and promptly exit out the back door. That’s the appalling finding of the Association of Fundraising Professionals Fundraising Effectiveness Project.

First Time Donor RetentionOver the past few months, the issue of high nonprofit Donor Attrition rates has received increasing attention. I’ve even put a spotlight on the issue with the following posts:

As I worked on those articles, I couldn’t help but wonder: What’s new and effective that can help us build donor loyalty? Well, we’ll soon find out.

Adrian Sargeant, PhD, Director of the Centre for Sustainable Philanthropy at Plymouth University, will be presenting “Building Donor Loyalty: What’s New?” at the AFP International Fundraising Conference (Baltimore, March 29-31, 2015).

Sargeant has been passionately conducting donor loyalty research for two decades. Sargeant and his colleague Elaine Jay wrote Building Donor Loyalty: The Fundraiser’s Guide to Increasing Lifetime Value.  Tom Ahern, the internationally recognized communications expert at the helm of Ahern Donor Communications, has described the text as: “Transformational.” I cited this informative book in my post: “Avoid Making Faulty Assumptions about Donor Loyalty.”

In his upcoming session at the AFP International Conference, Sargeant will demonstrate how even small improvements in loyalty, in the here and now, translate to whopping improvements in the lifetime value of a fundraising database.

Cover- Building Donor Loyalty -- click to see book at AmazonFor example, he has found that a 10-percentage point improvement in retention can lead to a 200 percent improvement in the lifetime value of the fundraising database!

Sargeant will also look at what drives loyalty, drawing on lessons from both the commercial and the voluntary sectors, including work on the big three drivers of loyalty: satisfaction, commitment and trust. He will also explore new work on loyalty that looks at the role of donor identity and the extent to which donors identify themselves in part through their support of a nonprofit.

Sargeant will show how the concept of identity interacts with the other three big drivers of loyalty and which of all these factors offers the greatest potential to the sector to bolster giving and grow long-term support.

Sargeant told me recently:

February 17, 2015

The Greatest Idea for Retaining and Upgrading Donors

Every charity wants more money from donors. If only existing donors would write larger checks, become monthly supporters, make a major gift, and/or commit to a planned gift, there would be less pressure on the fundraising staff and the organization would be able to do more to fulfill its mission.

But, how can you raise more from your donors if they do not stick around?

Nationally, the median nonprofit organization finds that its donor retention rate is just 43 percent! Among first-time donors, the retention rate is an obscenely low 23 percent! (The stats come from the AFP Fundraising Effectiveness Project.)

Donor Retention 20013-14The good news is that if you can increase your nonprofit organization’s donor retention rate by just ten percentage points, you could see an increase of up to 200 percent in donor lifetime value, according to researcher Dr. Adrian Sargeant. In other words, if you retain more donors, they will increase their giving and some will even encourage others to support your organization as well.

Unfortunately, increasing your donor retention rate won’t happen all by itself. You need to make it happen. So, what is the simplest, most effective tactic for accomplishing this?

Telephone by laerpel via FlickrDo you see that shiny box on your desk? It’s probably black with some flashing lights, and it’s plugged into the wall. It’s a telephone. Pick it up and call your donors to thank them for their support. While you’re at it, find out why they support your organization.

Yes, it really is that simple. CALL YOUR DONORS!

Multiple research studies have proven that thank-you calls are a powerful donor retention tactic. For example, Penelope Burk, in her book Donor Centered Fundraising, reports:

•  95 percent of study donors stated they would appreciate a thank-you call within a day or two of the organization receiving their donation.

•  85 percent said such a thank-you call would influence them to give again.

•  84 percent said they would definitely or probably give a larger gift.

Burk went on to report, when donors were tracked after 14 months, the group that received a thank-you call gave 42 percent more on average compared to similar donors who did not receive a thank-you call. During the renewal cycle, those who received a thank-you call were 39 percent more likely to renew their support.

Here are some tips to make your thank-you calls effective:

February 10, 2015

5 Fundraising Tips Inspired by Taylor Swift

It’s that time of year once again: It’s Grammy Awards time!

Okay, I really don’t care. However, it got me thinking about the sustained success of mega-star Taylor Swift, one of the 2015 nominees. Leading into this Grammy season, Swift has already earned 7 Grammy Awards, 12 Billboard Music Awards, 11 Country Music Association Awards, and 7 Academy of Country Music Awards, among others. She has sold over 30 million albums and 80 million digital single downloads.

Taylor Swift

Taylor Swift

Despite the fact that Swift is a hugely successful music star, I’m not really a fan. Don’t get me wrong. It’s not that I dislike her music. It’s just that I’m not her target demographic. Nevertheless, I have enormous respect for her talent, work ethic, and philanthropic spirit.

A number of things have led to Swift’s success. We can model some of these behaviors to be even more effective fundraising professionals. Here are just five tips for you that are inspired by Taylor Swift:

1. Treat everyone well. Swift has a reputation for being nice. Unlike some stars, she doesn’t have to employ a public relations firm to try to convince the public she’s a good person. She genuinely is. The 25-year-old is a generous supporter of arts education, children’s literacy, the American Red Cross, and other charitable endeavors.

Swift is also a friendly neighbor. When neighbor and actress Hayden Panettiere needed to borrow a guitar, Swift loaned her one of her special instruments.

Swift is also good to service people, and does not take them for granted as so many other celebrities do. For example, during a tour stop in Philadelphia, she treated her entourage to a late-night, traditional southern Italian dinner at Ralph’s Restaurant. Swift tipped $500 on an $800 check, posed for photos with fans, and gave the chef a pair of tickets to the following night’s show so he could attend with his autistic 11-year-old son.

I’m sure Swift has her bad days. However, she seems to consistently strive to be kind to people, whether fellow celebrities or common folk.

As a development professional, you need to build solid relationships in order to achieve fundraising success. Being nice to everyone you encounter is a good place to start.

2. Develop your skills. Swift did not arrive on the planet a fully formed musician. She may have some natural talent. However, that natural talent would have gone to waste if it were not developed. From age 11, she took vocal and acting lessons. She seized performing opportunities at fairs, coffee houses, karaoke contests, and other less-than-glamorous venues to develop her skills.

As a development professional, you need to continue your education and look for opportunities to practice your skills. You should strive to become a stronger and stronger fundraiser. You’ll be of greater value to your organization, and you’ll enjoy greater career satisfaction. The upcoming AFP International Fundraising Conference is just one great educational opportunity.

January 30, 2015

Donor Retention: Time for a Change

[Publisher’s Note: From time-to-time, I will invite an outstanding, published book author to write a guest post. If you’d like to learn about how to be a guest blogger, click on the “Authors” tab above.]

This week, I have invited international fundraising superstar Roger M. Craver, a direct-response fundraising pioneer, Editor at The Agitator, and author of Retention Fundraising: The New Art and Science of Keeping Your Donors for Life to share his wisdom with us.

However, do we really need a book about something as fundamental as donor retention? I believe we do. And so does Ken Burnett, Managing Trustee at SOFII and author of Relationship Fundraising. Here’s what Burnett says in the Foreword to Craver’s book:

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.”

While the latest Fundraising Effectiveness Project report, developed by the Association of Fundraising Professionals and the Urban Institute, shows that the nonprofit sector’s donor retention rate has improved for the first time in years, the number is still wretched. The nonprofit sector’s donor retention rate now sits at a shameful 43 percent! For every 100 new and renewed donors, 102 donors are lost through attrition.

As a sector, we must stop this donor churn. It’s expensive. It prevents organizations from building long-term relationships that lead to large current donations and significant planned gifts.

Sadly, doing business as usual is not working. It’s time to change the way we do things.

Retention Fundraising by Roger CraverFortunately, the solution to the donor retention problem faced by the sector is not overly complicated or pricey. It simply requires a commitment to change. Once you’re committed to enhancing your organization’s donor retention rate, Craver’s mercifully brief and easy to read text will show you the way. Based on science and decades of practice, Craver’s book will explore what measurements are important to track, what tactics you need to adopt, and what messaging secrets you need to learn.

Noted philanthropy researcher and author Adrian Sargeant finds that “even small improvements in the level of attrition can generate significantly larger improvements in the lifetime value of the fundraising database. A 10 percent improvement in attrition can yield up to a 200 percent increase in projected value.”

By following the advice found in Craver’s book and its companion website, you will be able to improve your organization’s donor retention rate. With increased fundraising effectiveness, your organization will be far better positioned to fulfill its mission today and well into the future.

Here’s an excerpt from Retention Fundraising that further reveals the problem faced by nonprofit sector:

January 2, 2015

Don’t Make New Year Resolutions You Can’t Keep

It happens every year at this time. People make New Year resolutions. Then, a short time later, they break those resolutions.

Breaking New Year resolutions is bad. Doing so can make you feel guilty. It can erode your self-esteem. If you told anyone about your resolutions, your failure to keep them could even be embarrassing.

Here’s a novel idea for 2015: Don’t make New Year resolutions you can’t keep.

Fireworks

Happy New Year from Philadelphia!

Instead of setting overly challenging goals, I encourage you to adopt the three following, easy-to-keep resolutions. While easy to adhere to, the following resolutions are nevertheless meaningful. You’ll notice that my three resolutions include something that will benefit you, something that will benefit others, and something that will benefit your organization:

 

  1. Indulge yourself. Yes, you need to take care of yourself by eating right, exercising, and getting an annual medical physical. However, you also need to let yourself be bad occasionally. You need to take care of your psyche. If that means having a slice of chocolate cake, then go for it! If it means watching old television episodes of Gilligan’s Island, so be it. If it means having your spouse watch the kids so you can enjoy a leisurely bubble bath, make it happen. By being good to yourself, you’ll be better able to be good to other people.

 

  1. Make sure those you love know you love and appreciate them. Don’t assume that those you love know it or know the extent to which you care about them. Tell them. Show them. Don’t just run for the door in the morning to rush off to work; instead, take the time to kiss your spouse good-bye. Don’t just nod when your child comes home with a good test score; instead, take the time to tell him how impressed you are. Make your partner a steaming cup of tea before she asks for it or goes to make it herself. In other words, make the most of the little moments.

 

  1. Grow professionally. One of the hallmarks of being a professional is ongoing education and sharing knowledge. So, commit to attending seminars and conferences. If time or money are obstacles, participate in a webinar; there are some excellent free webinar programs available throughout the year. Or, read a nonprofit management or fundraising book. There are some terrific books at The Nonprofit Bookstore (powered by Amazon) that will inspire and help you achieve greater results. You’ll find Reader Recommended titles, the complete AFP-Wiley Development Series, and other worthwhile items. If you have found a particular book helpful, consider sharing a copy with a friend, colleague, or your favorite charity. By the way, a portion of the sale of books through The Nonprofit Bookstore will be donated to charity.

 

(If there’s a nonprofit management or fundraising book that you read recently that you found particularly helpful, please let me know below so I can include the title in the Readers Recommended section.)

For additional reading, you might also consider looking at some of my posts that you might have missed. Here is a list of my top ten most read posts during the past year:

  1. Can a Nonprofit Return a Donor’s Gift?
  2. Delivering (My Own) Bad News
  3. 5 Things Never to Do in Your Phone Fundraising Calls
  4. One Word is Costing Your Fundraising Effort a Fortune
  5. Special Report: Top 40 Most Effective Fundraising Consultants Identified
  6. How NOT to Run a Capital Campaign
  7. Cheating Death
  8. #GivingTuesday Has NOT Made a “Huge Difference”
  9. 5 Lessons Moses Can Teach Us about Fundraising
  10. 20 Factoids about Planned Giving. Some May Surprise You.

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.

I’m honored to know that I have readers from around the world. (I love the Internet!) While I appreciate all of my readers, I thought it would be interesting to look, beyond the United States, to see my top ten countries for readership:

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