Posts tagged ‘cultivation’

May 17, 2019

You Need to Do What Monty Python’s Eric Idle has Just Done

Eric Idle, a member of the legendary British comedy troupe Monty Python, knows something about social media that you might not. He has recently done something that you should be doing. If you follow his example, you’ll engage more supporters. This will result in increased loyalty and enhanced lifetime giving.

I understand that you might have doubts about whether a comedy genius can really teach you something that will benefit your nonprofit work. Well, let me explain.

I’ve been a Monty Python fan for decades after first seeing them on television. Later, I thoroughly enjoyed their films including Monty Python and the Holy Grail and The Life of Brian. I’ve lost count of how many times I’ve watched them. I’ve also seen Idle’s Spamalot on Broadway.

While I am a fan of each Python member, comedy legend Idle holds a special place in my heart. Five years ago, when I was facing a 14-hour life-saving cancer surgery, his irreverent but strangely uplifting song from The Life of Brian buoyed my spirits. The first verse of “Always Look on the Bright Side of Life” goes like this:

Some things in life are bad,

They can really make you mad,

Other things just make you swear and curse,

When you’re chewing life’s gristle,

Don’t grumble,

Give a whistle

And this’ll help things turn out for the best.

And…

Always look on the bright side of life.”

You can listen to the full song by watching this clip from the film:

Because the song means so much to me, my eye was caught by a tweet from one of my Twitter-buddies, Ephraim Gopin. (By the way, Ephraim is a funny and sharp fundraising professional, a rare combination. Follow him.) His tweet included a GIF from the clip I shared above. He was thanking Idle for retweeting one of his previous messages.

I replied to both mentioning how the song helped me. That’s when I received a touching surprise.

Eric Idle, the Eric Idle, the comedy legend, the man who has made me laugh for decades, replied to me with a simple, uplifting message:

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April 12, 2019

Know When to Stop Asking for Money

When it comes to sound fundraising practice, it is essential to know who to ask for donations, what to ask for, when to ask, where to ask, how to ask, and why you are asking. That should all be obvious.

However, it is also important for you to know when to stop asking for money.

There are many reasons that a fundraising professional should not ask for a charitable donation. Let me give you just one quick example. I want to share a story mega-philanthropist Peter Benoliel told me.

Benoliel said that development professionals should avoid silly mistakes like sending multiple copies of the same appeal, sending a form appeal to a donor who has just made a gift, or ignoring a donor who is in the middle of a multiyear gift commitment.

I asked him for an example. He shared that he was annoyed with one particular charity that sent him a letter asking him to include the organization in his Will. He explained that he had received this letter well after informing the charity that he had already included it in his estate plan.

Benoliel, a sophisticated donor and winner of the Planned Giving Council of Greater Philadelphia Legacy Award for Planned Giving Philanthropist, felt that the unnecessary re-solicitation revealed a lack of appreciation for his support. At the very least, it indicated that the charity failed to properly handle vital details.

Even if he was willing to forgive the mistake, he worried that other legacy donors might not be as forgiving and, therefore, the error could prove costly for the charity. More importantly, if that happened, it would be harmful to those the charity serves.

When fundraising, it is essential to handle the details well. That certainly involves effectively asking for donations. However, fundraising involves so much more. As Benoliel’s story demonstrates, it also involves proper record keeping, successful purging of mailing lists, and appropriate displays of appreciation.

Regarding that last point, I encourage you to take to heart the words of philosopher and poet Henri Frederic Amiel:

Thankfulness is the beginning of gratitude. Gratitude is the completion of thankfulness. Thankfulness may consist merely of words. Gratitude is shown in acts.”

Showing proper thankfulness and gratitude will help maintain the donor’s commitment and could also lead to additional support.

When the relationship is handled properly, it is certainly acceptable to ask a planned gift donor for another current or planned gift. Consider what H. Gerry Lenfest, another mega-philanthropist, has said on the subject:

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March 27, 2019

Who are Your Best Planned Giving Prospects?

Almost everyone has the capacity to make a planned gift. Consider just these four facts:

  • Among those ages 65 and older, 78 percent own their home (US Census)
  • Most Americans own stock in one form or another (Gallup)
  • Inflation-adjusted median household net worth grew 16 percent from 2013-16 (US Federal Reserve)
  • 69 percent of Americans expect to leave an inheritance (Stelter)

The fact that most Americans have the ability to make a planned gift presents both a great opportunity and a profound challenge for fundraising professionals. With limited staff and budget resources, it is essential to focus legacy giving marketing where it will do the most good. So, who are the best planned giving prospects?

You can visualize the answer to that question as an equation:

Ability + Propensity + Social Capital = GIFT

Your best planned giving prospects will have the means with which to make a planned gift, ideally a sizeable one. However, just because they have the ability does not mean they will take the action you desire. A number of factors influence a prospect’s propensity for giving. Some of those factors might be related to the organization seeking a gift while other factors might have nothing to do with the organization. Finally, we need to consider a prospect’s level of social capital, their degree of engagement with the community and the organization. Someone who scores high in each category is more likely to make a planned gift than someone who scores low.

A simpler way to identify strong planned giving prospects is to recognize that “the most dominant factor in predicting charitable estate planning was not wealth, income, education, or even current giving or volunteering. By far, the dominant predictor of charitable estate planning was the absence of children,” according to philanthropy researcher Russell James, JD, PhD, CFP®. In other words, people who do not have children are far more likely to make a charitable planned gift than those who have children.

However, while the absence of children tells us who is generally more likely to make a planned gift, it does not tell us whether your organization will be the recipient of such a gift. The leading factor that will determine whether someone will make a planned gift to your organization is their level of loyalty, according to legacy researcher Claire Routely, PhD.

As you attempt to determine a prospect’s level of loyalty to your organization, you’ll want to consider a number of factors including:

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February 26, 2019

Inspired by Lady Gaga: 10 Ways to be a Fundraising Genius

You might never have heard of Stefani Germanotta. Yet, she is known internationally as a top recording artist, nine-time Grammy Award winner, social activist, and philanthropist. Following the 91st Academy Awards, we now also know her as an Oscar winner.

You, as her millions of fans around the world, likely know her better as Lady Gaga.

Jesse Desjardins, when he was Social Media Manager for Tourism Australia, recognized that Lady Gaga is more than a singer. He recognized that she is even more than an entertainment genius. He understood that marketing and public relations professionals could learn from her, so he put together an interesting PowerPoint presentation, “10 Ways to be a Marketing Genius Like Lady Gaga.” When I saw the slides, I believed that fundraising professionals could also learn a great deal from her. Thanks to permission from Desjardins, I’m able to share 10 useful insights with you.

1. Have an Opinion

“Gaga regularly speaks out on issues she feels strongly about. In doing so, she keeps herself in the public eye.”

By speaking out, Gaga makes certain no one forgets her. She remains relevant. She advances the issues that she finds important. She engages her fans.

Your organization has an important mission. Let supporters and potential supporters hear about it beyond those times that you ask for money. Stay in front of them. Remain relevant. Engage people year-round while advancing your organization’s mission. Communicate about issues relevant to your organization’s mission. Ask supporters to help in ways that don’t involve giving money (e.g., volunteer, call elected officials, etc.). Share information people will want and appreciate.

2. Leverage Social Media

“Gaga has worked tirelessly on accumulating over [78] million Twitter followers and [55] million Facebook fans.”

To put that into perspective, there are only five people on the planet who have more Twitter followers. In other words, tens of millions of people want to hear what Gaga has to say, and she says things people want to hear. She speaks to people where they are.

Today, people consume information in more ways than ever before, and how they do it varies by age group. You need to be where they are if you want your message heard. Understand the demographics of your supporters and potential supporters and learn what media they consume. Then, be there with relevant, meaningful information.

3. Be Different

“Differentiate wisely. There are too many normal people doing normal things. Show, don’t tell. You are extraordinary so show it.”

You’re not alone. Unless you work for an exceedingly rare charity, others have the same or similar mission as your organization. What makes your organization special? Why should people care about your organization instead of the others that do similar things? You need to address those questions if you want to capture hearts.

4. Don’t be Afraid to Make Lots of Money

“Being starving is not fun. If making a ridiculous amount of cash is what you want to do, go for it.”

If your organization relies on donations to fulfill its mission, don’t be shy about doing what it will take to get the funds your organization needs. Don’t be afraid to ask people for money. When people ask you what you do for a living, answer them with pride.

5. Give Your Fans Something to Connect With

“Gaga calls her fans Little Monsters and gives them a shared symbol. The official Little Monster greeting is the outstretched ‘monster claw’ hand. This allows fans to identify each other and connect.”

No, you don’t need to create a secret handshake for your supporters. However, you should create a sense of belonging. People would rather join a cause, a movement for change, than simply give money to a dusty institution. Provide people with easy ways to connect with you. Give them opportunities for meaningful engagement as a way to build connection.

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February 20, 2019

Are You Ignoring an Essential Step in the Fundraising Process?

These are challenging times for fundraising professionals. Fewer people are giving to charities. Donor retention rates continue to fall. Volunteerism is down which negatively affects current and planned giving.

Despite those challenges, and more, many nonprofit organizations continue to ignore the one simple thing that would help them retain more supporters and raise more money. It’s an essential, though often ignored, step in the fundraising process.

At the heart of February rests a special time for many: Valentine’s Day. It’s a celebration of love. Unfortunately, when it comes to how nonprofit organizations show love to donors, at this or any other time of year, many do a poor job. That’s the opinion of veteran fundraiser Mark Chilutti, CFRE, Assistant Vice President of Development at Magee Rehabilitation Hospital – Jefferson Health.

Mark wants to help his fellow fundraisers do a more effective job when it comes to Donor Stewardship. So, he will be presenting “New Trends in Donor Stewardship: Saying Thank You All Year Long” at the Association of Fundraising Professionals International Conference, April 2, 2019, 10:15-11:30 AM. Mark notes:

We all know that relationship building is the key to our success as fundraisers and this session will provide participants with unique and creative ways to stay in touch with donors on a year-round basis. Real life examples will include successful Board thank you call scripts, creative pictures and notes about donors’ gifts in action, how to create a Stewardship/Impact Report, and more.”

Now, Mark generously provides us with a preview of his upcoming presentation along with three powerful tips that you can immediately put to use to strengthen your development program. I thank Mark for sharing his helpful insights here:

 

I’m passionate about donor stewardship. I think the reason this topic is so important to me is because I have seen more bad examples of donor stewardship than good ones. I also believe that stewardship is a lost art. We often hear that the next time the donor hears from a fundraiser is when the fundraiser is asking them to give again.

Because I work at a small place, our major donor pool isn’t very large. I have always believed that after working hard to secure a gift, I have to then channel that same energy into letting my donors know just how much I appreciate them and the impact that their gift has made for our patients, programs, and services. I do this in a variety of ways, and they all are easy and inexpensive!

We always strive to get the “official” thank you out within 72 hours, but that’s just the beginning. Depending on the size of the gift, the donor might also receive an email, a card, a call, or sometimes; all three. My CEO prefers to send handwritten cards, while my Board Chairman is happy to pick up the phone. They both are effective and appreciated, which is why I struggle to understand why more organizations don’t do this.

My work doesn’t end there, though, and I use simple creative ways to stay in touch all year. While strolling through the hospital, I’ll often snap a quick picture of a patient using a piece of equipment or a donor-funded program happening, and I can then send that in an email saying, “Saw the equipment you funded being used by a patient today and just wanted to say thanks again!” This type of email usually gets a quick response telling me I made their day or how good they feel to know their gift made an impact.

I also make sure that staff outside of the Development Department is involved in the thank you process, too, by having them write cards or take pictures that I can send to donors. We also engage patients and family members in this process, and whatever they write is so much more meaningful, as it comes from the heart.

These are just a few of the tips I will present in my session at AFP ICON as I share things that an organization of any size can do easily to make their donors feel appreciated. My hope is that participants in the session will be taking notes and taking lots of ideas back home to put into place right away.

If you won’t be at AFP ICON, I’ll leave you with these three easy tips to help you raise your game in Donor Stewardship:

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February 14, 2019

Valentine’s Day Holds the Secret to Fundraising Success

As I write this post, Valentine’s Day has arrived once again. Originally a religious feast day, it has evolved into also being a cultural and commercial celebration of love.

So, what does that have to do with fundraising? Everything!

Think about it. The very word philanthropy means love of humankind. Passion, caring, and relationships are essential to romantic love. They are also vitally important to the fundraising process.

If you treat your donors like an ATM (cash machine), they likely won’t be your donors for long. By contrast, if you understand and tap into their philanthropic passions, show them you care about their needs, and develop a relationship with them, they’ll be more likely to renew their support and even upgrade their giving over time.

When volunteers, and even fundraising professionals, are fearful of asking for contribution, it’s probably because the organization is placing too much of an emphasis on asking and focuses too little on relationship building.

Let me be clear. Fundraisers who fail to develop relationships are simply beggars while those who build relationships, as well as ask for gifts, are development professionals.

When it comes to major-gift and planned-gift fundraising, relationship building is particularly important. Gail Perry, President of Fired-Up Fundraising, recently addressed this issue artfully in a terrific #Gailism that she has allowed me to share with you:

Developing relationships with major and planned-gift donors and major and planned-gift prospects allows us to:

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January 29, 2019

Are Donors Abandoning You, Or Are You Abandoning Them?

Donor retention rates for both new and renewing donors remain pathetically low and, actually, continue to decline. There are a number of reasons for this, many of which I’ve addressed in previous posts. However, just recently, I learned of a situation I had not considered previously. So, I want to make sure you’re aware of the problem and understand how to easily fix it.

I heard about the problem from The Whiny Donor, a thoughtful donor who uses Twitter to generously provide fundraising professionals with feedback and insights from a nonprofit-contributor’s perspective.

https://platform.twitter.com/widgets.js

The Whiny Donor wrote, “In December, we gave through our DAF to several nonprofits that we had supported for many years with direct donations. I suspect several of them won’t have the capacity to make the connection, and will now consider us lapsed donors…. Which means they will change the way our relationship moves forward. They will think we didn’t support them; we will think we have. It’s a stewardship conundrum.”

As a philanthropic tool, Donor Advised Funds offer people a number of financial advantages compared to giving directly to nonprofits or not giving at all. At the end of 2018, we saw significant growth in the number and size of DAFs, in part, as a result of the new tax code.

While donors can benefit in a variety of ways from using a DAF to realize their philanthropic aspirations, the use of DAFs can create a stewardship challenge for charities:

  • Should the charity thank the DAF or the individual supporter?
  • Who should the charity continue to steward, DAF or individual?
  • How should the charity track and report the donation?
  • Does the charity’s software help or hurt these efforts?

The Whiny Donor worries that charities will recognize the DAF and ignore the role she and her husband played in securing the gift. She fears some organizations will assume she has abandoned them when, in fact, she has not.

This is a very real concern. As DAF giving becomes more common, I’ve heard many examples of how nonprofit organizations have stumbled. Some thank the individual, but not the DAF. Some thank the DAF, but not the individual. Some thank both the individual and the DAF. Some don’t thank either or thank in the wrong way.

Here’s what you need to know: The DAF is the donor. The individual is not the donor when the gift comes from a DAF. Because of the way DAFs are structured and the laws regulating them, individuals can only make a contribution recommendation to the DAF administrator (e.g., Fidelity Charitable, National Philanthropic Trust, Schwab Charitable, etc.).

Because the DAF is the donor, you should thank and send receipts to the DAF. However, as The Whiny Donor suggests, that’s not good enough. You should also thank the individual who recommended the DAF gift.

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January 24, 2019

Here are Some Things You Need to Know

Now that the 2018 year-end fundraising season has closed and you’ve had a moment to catch your breath, I want to share some things with you that you might have missed.

To begin, here is a list of my top ten most read posts published last year:

  1. How Bad is the New Tax Code for Your Charity?
  2. It’s Time to Stop Whining about Donor-Advised Funds!
  3. 9 Hard Truths Every Fundraiser Needs to Face in the 21st Century
  4. New Charitable Gift Annuity Rates Announced
  5. Jerold Panas (1928-2018), He Will Be Missed
  6. Setting the Record Straight about Jimmy LaRose
  7. Will One Charity’s Surprising Year-End Email Make You Look Bad?
  8. The Dark Side of the Fundraising Profession
  9. How to Get Last Year’s Donors to Give More this Year
  10. Avoid the 7 Deadly Sins When Working with Volunteers

Here’s a list of just five of my older posts that remained popular in 2018:

  1. Can a Nonprofit Return a Donor’s Gift?
  2. Can You Spot a Child Molester? Discover the Warning Signs
  3. Here is One Word You Should Stop Using
  4. 5 Things Never to Do in Your Phone Fundraising Calls
  5. Special Report: Top 40 Most Effective Fundraising Consultants Identified

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.

Over the years, I’ve been honored to have my blog recognized by respected peers. I’m pleased that, among the thousands of nonprofit and fundraising sites, my blog continues to be ranked as a “Top 75 Fundraising Blog” and as a “Top Fundraising Blog – 2019.”

To make sure you don’t miss any of my future posts, please take a moment to subscribe to this site for free in the designated spot in the column to the right. You can subscribe with peace of mind knowing that I will respect your privacy. As a special bonus for you as a new subscriber, I’ll send you a link to a free e-book from philanthropy researcher Russell James, JD, PhD, CFP®.

In 2018, I was pleased to have two of my articles published in Advancing Philanthropy, the official magazine of the Association of Fundraising Professionals:

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December 13, 2018

Will One Charity’s Surprising Year-End Email Make You Look Bad?

This week, I received a surprising email from a national charitable organization. The email was so unusual that I need to tell you about it.

Like you, I’m deluged by emails from charities that arrive from the days leading up to #GivingTuesday through December. Most of the messages are from nonprofit organizations that forgot about me all year except now that they want my money. Most care nothing about me. None offers to help me or be of service to me. Most of the emails are just terrible.

One awful email came with the subject line, “Welcome to [I’m deleting the name of the organization].” Sounds nice enough, right? There’s just one tiny problem. I’ve been a donor for decades and even did a tour of duty as a trustee of the large organization. Ugh!

Given the garbage in my email Inbox, I was a bit relieved when I received a remarkable email from the Charities Aid Foundation of America.

WARNING: The email is so wonderful that it just might make you and your organization look bad.

Look for yourself, then I’ll explain why this is a near-perfect email and why you should immediately do something similar before it’s too late:

[Note, the actual email formatting was a bit better than the image I was able to capture for you. Ah, technology!]

Let me explain why this email works so well.

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December 6, 2018

Can the Dalai Lama Help You Raise More Money?

Last week, I saw a tweet from the Dalai Lama that is relevant for fundraising professionals.

Your first reaction to this post might be, “Gee, I didn’t know the Dalai Lama has a Twitter account.”

Well, he does, and he has 18.8 million Followers. For some context, I’ll point out that the Twitter account of Pope Francis has 17.8 million Followers. In a comparison that may explain some of what is going on in the world, let me just mention that Kim Kardashian has 59 million Twitter Followers. Oh well.

So, the tweet from the Dalai Lama that resonated with me as a fundraising professional is this:

“Even more important than the warmth and affection we receive, is the warmth and affection we give. It is by giving warmth and affection, by having a genuine sense of concern for others, in other words through compassion, that we gain the conditions for genuine happiness,” tweeted the Dalai Lama.

The 14th Dalai Lama of Tibet.

This is the essence of donor-centered fundraising. Yes, I know you like it when people donate to your organization. But, if you want that support to be something more than a one-time and/or limited transaction, you need to show donors you care about them, their needs and philanthropic aspirations. When practicing donor-centered fundraising, you will be able to develop the conditions for genuine happiness. I’m talking about the happiness of your donors, your happiness, your boss’s happiness, and the happiness of those who benefit from the services of your organization.

By treating people the way they want to be treated, you’ll acquire more donors, renew more donors, upgrade more, and receive more major and planned gifts from donors. In short, you’ll increase the lifetime value of your organization’s supporters.

Penelope Burk, in her book Donor-Centered Fundraising, describes what she means by the term:

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