Posts tagged ‘cultivation’

July 13, 2015

Perfect is the Enemy of Good

The 18th century French writer and philosopher Voltaire wrote, “Perfect is the enemy of good.” Whether he originated the sentiment or was referencing an earlier Italian proverb, Voltaire’s powerful observation is one that remains relevant for today’s fundraising professionals.

While it’s certainly understandable that fundraisers strive for perfection in cultivation, solicitation, and acknowledgement, the reality is that that quest is problematic for several reasons, including:

1.  Perfection is unattainable. There is good. There is excellent. However, perfect does not exist. W. Edwards Deming, the father of Total Quality Management, believed in a process of never-ending improvement. Seeking improvement is very different from seeking unattainable perfection.

2.  If you wait until you have developed the mythical perfect cultivation piece, appeal, or acknowledgement, the reality is you will never deploy your message. Sir Robert Watson-Watt, who developed early warning radar in Britain to counter the rapid growth of the German Luftwaffe during World War II, stated, “Give them the third best to go on with; the second best comes too late; the best never comes.” Releasing a good or excellent message is far better than never releasing a near-perfect communication.

3.  Seemingly near-perfect communications do not necessarily work any more effectively than less ideal messaging. Let me explain.

The way to cut grass perfectly is not exactly the best way to a nice lawn.

The way to cut grass perfectly is not exactly the best way to a nice lawn.

I have a client, an international social service agency. A few months ago, one of the organization’s fundraisers traveled to Central America to meet with an affiliate agency and see, first-hand, how services were being delivered. Immediately upon returning to headquarters, the fundraiser sent emails to her key major and planned gift donors and prospects. Attached to the emails were a few snapshots she took during her trip.

In response to the cultivation emails, the fundraiser received a number of thank-you messages from recipients. How often do your donors and prospects thank you for cultivating them?

I believe that the emails and snapshots were effective for a number reasons including:

June 12, 2015

How to Train Your Un-trainable Board to Raise More Money

I’m a fan of Andrea Kihlstedt. I continue to use her book, Capital Campaigns: Strategies That Work, when teaching graduate “Advanced Fund Development” at Drexel University. So, I was naturally quite interested when Emerson & Church Publishers released her latest book, co-authored with Andy Robinson: Train Your Board (And Everyone Else) to Raise Money.

Cover of Train Your BoardKihlstedt and Robinson have put together a book that’s different from any other fundraising book on the market. Really. As they put it, it’s “A cookbook of easy-to-use fundraising exercises” to help your board members, volunteers, and staff more fully engage in the development process.

Each of the 53 “exercises has a brief introduction, a list of ingredients, instructions for facilitating the activity, and a training tip to help improve your skills.” The authors draw the exercises from some of the best trainers in the field.

Here’s a list of just some of the “Suggested Menus”:

  • Give Confidence to the Fundraising Phobic
  • Get Everyone Involved in Fundraising
  • New Board Member Training
  • Agenda for a Full-Day Retreat
  • Train Your Program Staff about Fundraising
  • Prepare for Your Major Gifts Campaign
  • Quick and Easy: 20 Minutes or Less

Each “suggested menu” lists at least five relevant “recipes,” training exercises.

This book represents a powerful resource for any nonprofit organization. Here are just some of the benefits you’ll get from the book:

  • Without studying to be a trainer, you’ll be able to facilitate high impact, effective training sessions.
  • You’ll help your board members develop more confidence and greater fundraising skills.
  • You’ll get your board more engaged in the fundraising process.
  • You’ll gain greater insights that will help you be a more successful fundraising professional.

As Simone Joyaux, ACFRE, the internationally recognized fundraising consultant, says, “This book can help you — a lot!”

This week, I’ve invited Kihlstedt to share some of her wisdom with us. In addition, she shares a free copy of one the exercises from the book:

 

Are your board members chomping at the bit to go and ask their friends for money?

If your answer is a resounding “Yes,” then you must have found some magic potion or concocted a special courage drink. And the nonprofit world will be beating down your door for the recipe.

Most board members shrink at the very thought of asking their friends for money. My colleagues and I have asked them why they hesitate and here are some of the reasons they state:

  • I don’t know anyone with money.
  • I don’t want to “hit up” my friends.
  • It makes me feel uncomfortable.

But most often, board members say they don’t feel prepared. They don’t know what to say or how to say it or what to ask for.

Imagine for a minute what it would feel like if your board members were excited about asking their friends for money.

Imagine if they started calling you for the names of donors they’d like to contact.

What if — without your prodding — each of them contacted several donors a month, asked them for gifts, and were successful much of the time.

I’ll bet your job would be quite different. Not only would you be raising more money, but your board meetings would be buzzing with a sense of commitment and energy.

So, it’s worth doing everything you can to get your board members to be comfortable with and excited about helping to raise money.

There are a number of reasons why your board members don’t learn, but you can teach them.

It’s entirely possible to teach your board members to be great fundraisers, but here’s the catch:

Adults seldom learn by being told what to do and how to do it. And your board members are no exception.

The realities of training your board members (or any other adult) are these:

May 25, 2015

Discover 5 of the Latest Trends Affecting Your Fundraising

Leading up to the 2015 Association of Fundraising Professionals International Fundraising Conference, a number of my readers contacted me to request that I gather information about emerging fundraising trends. (Yes, I take requests, so feel free to make one.)

It’s not surprising that development professionals understand the need to stay on top of the evolution that takes place in the world of philanthropy. After all, as Benjamin Disraeli has said:

Change is inevitable. Change is constant.”

Recognizing that ongoing change is part of our life is one thing. Understanding what that change means and how to capitalize on it can help even good fundraisers become stars. As John F. Kennedy has stated:

Change is the law of life. And those who look only to the past or present are certain to miss the future.”

None of us wants to miss the future.

So, with that thought in mind, I attended the session “Latest Trends in Giving and What They Mean for Your Organization” with presenters Stacy Palmer, Editor of The Chronicle of Philanthropy, and Jeff Wilklow, Vice President of Campbell & Company. Here are five of the key trends they cited:

Mega-Donors:

Among very wealthy, very generous philanthropists, much of their giving does not go directly to existing charitable organizations. While their philanthropy will eventually find its way to charitable purposes, it will first be funneled through special funds or foundations that the mega-donors create or contribute to.

Money by 401(K) 2012 via FlickrMany of those who earned their fortunes through entrepreneurialism will gravitate toward entrepreneurial philanthropy. This is particularly true with younger technology entrepreneurs. With a do-it-yourself attitude, these individuals may choose to create a charity or socially-responsible business rather than donate to an existing, mainstream nonprofit organization.

In any case, big donors are interested in funding big ideas. They’re interested in big solutions to big problems. To attract the support of mega-donors, your charity will need to focus on creative solutions for large challenges.

Legacy Donors:

Many charitable organizations embrace the idea that planned giving equals endowment building. For example, many charities have adopted policies that direct bequest revenue into the organization’s endowment fund unless otherwise designated by donors.

While your organization might have a bias in favor of building endowment revenue, donors have a keen interest in their own legacy. Donors want to make a lasting difference. So, they will likely be more interested in funding your programs and initiatives that help establish their legacy than they will in simply having their money deposited into your organization’s investment pool.

Just as we see that current donors have a growing interest in gift designations rather than unrestricted giving, we see a similar interest among planned giving donors who want to ensure their legacies. Some donors want to be assured of having a long-term, definable impact while other might be content with having their name, or the name of a loved one, on an endowment fund. The key is to understand what motivates the individual.

Social Donors:

Donors communicate with your organization in a variety of ways thanks to new technologies. They also communicate with each other like never before.

Donors are online. And it’s not just young donors. They view your website, they engage in crowd funding, they give online, they take surveys, etc. Here are a few simple things you need to do to make sure those experiences inspire support:

May 15, 2015

I’m Sorry, but Mother Theresa was Wrong!

Have you ever heard a nonprofit professional, speaking of prospective donors, say:

They should give until it hurts.”

Recently, I once again came across this phrase. I shuddered. Nevertheless, I realized that this person was not alone in his thinking.

The Rev. Jimmy Swaggert, echoing the sentiment of many church leaders and paraphrasing the Bible, is reported to have said:

Give, even at all costs, ‘till it hurts.”

Even Mother Theresa, who has been Beatified by the Roman Catholic Church, reportedly said:

Give, but give until it hurts.”

So, with this blog post, I know I’m going out on a limb. However, I must emphatically state that, on this point, the nonprofit professional I mentioned was wrong. Rev. Swaggert was wrong. Mother Theresa was wrong.

Unless you’re dealing with a population of masochists, asking people to give until it hurts is not a sound strategy. Most people tend to run from things that cause pain and toward things that give them pleasure.

I believe we should inspire people to give until it feels good.

Fortunately, I’m not alone in this belief. Recently, Michael Kaiser spoke at Drexel University and stated:

Make giving fun!”

Michael Kaiser

Michael Kaiser

Kaiser is the Chairman of the DeVos Institute of Arts Management at the University of Maryland. He is also President Emeritus of the John F. Kennedy Center for the Performing Arts. When Kaiser speaks, people listen. And rightfully so. He’s a masterful nonprofit leader and a gifted turn-around expert. Whether you work for an arts organization or not, you owe it to yourself to listen to his remarks. You can find the video by clicking here.

Here are some additional key points that Kaiser made:

[Donors] don’t join our family to be whined at.”

“They join because we’re inspiring and fun.”

“The donor doesn’t owe us allegiance. We need to earn it.”

“Donors get fatigue when we get boring.”

In other words, all nonprofit organizations, whether involving the arts or not, need to make giving a pleasure. We need to recognize that people will be more willing to donate if giving is enjoyable, and they’ll be more willing to continue their support as long as giving continues to be gratifying.

So, how can you more effectively inspire prospective donors by making giving fun?

May 5, 2015

Will You Help Me Celebrate My (Re)birthday?

On May 2, I began my month-long (re)birthday celebration. One year ago, I underwent a 14-hour surgery to remove the rare cancer that had spread throughout my abdomen. The surgery was a success, and I am now in remission!

First Birthday Balloons by akadruid via FlickrPrior to surgery, I was told my life expectancy would be about two to five years. Following surgery, my doctor told me I can expect a full life. That’s why I consider May 2 my (re)birthday.

Having gone through what I have during the past year, I’m returning to professional life with a reinvigorated commitment to help the nonprofit community be more efficient and effective so we can make the world a better place.

I’m doing a number of private and public things this month to celebrate. While I normally ensure that my blog site remains largely non-commercial, I’m making an exception with this post because I want to enlist your help as I mark this important time in my life.

There are a number of ways you can join my (re)birthday celebration:

New Clients. I’m looking for at least three new clients. If you’ve found my blog posts helpful, imagine what we can achieve by working closely together, as some readers have already discovered. If you work for a nonprofit organization, I can help you with annual fund enhancements, donor retention efforts, ethics education and policy development, phone fundraising improvements, planned gift marketing, and training for staff and/or boards. If you work for a for-profit company serving the nonprofit sector, I can help you with service/product enhancements, new service/product development, and marketing.

Please contact me if you would like to discuss how I can help you achieve your goals.

Paid Speaking Engagements. As part of my return to professional life, I’m looking forward to getting back out on the speaking circuit. I’m an experienced, well-reviewed presenter and AFP Master Trainer. I’m also an adjunct faculty member at Drexel University where I teach Advanced Fund Development to graduate students. For your organization, I can facilitate a variety of training programs for your board, staff, or volunteers. For your professional associations, I can offer a variety of seminars or keynote presentations to meet the group’s needs and particular interests.

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:

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