Posts tagged ‘donor-centered’

February 10, 2017

What is the Most Important Thing a Donor Can Give You? … It’s Not What You Think It is.

What is the most important thing a donor can give you?

If I were to ask that question at an Association of Fundraising Professionals conference, I suspect most members of the audience would respond by saying, “A big check!” If I were to pose the same question at a National Association of Charitable Gift Planners convention, participants might shout out, “A Charitable Remainder Trust!”

In other words, we tend to think that the most important or valuable thing a prospect or donor can give a charitable organization is money, and preferably lots of it.

However, do we have the wrong goal in mind?

Maybe.

Amy Cuddy, a psychology professor and researcher at the Harvard Business School, says that successful professionals must first earn an individual’s trust and respect. “Psychologists refer to these dimensions as warmth and competence, respectively, and ideally you want to be perceived as having both,” according to a report in the Business Insider. The article continues:

Interestingly, Cuddy says that most people, especially in a professional context, believe that competence is the more important factor. After all, they want to prove that they are smart and talented enough to handle your business.”

However, Cuddy’s research demonstrates that earning trust is more important than proving competence. She shares her findings in her book, trust-by-dobi-via-flickrPresence: Bringing Your Boldest Self to Your Biggest Challenges. She also provides plenty of proven tips for engendering trust.

So, we see that the most important, valuable thing a prospect or donor can give you is their trust. Still not a believer? Keep reading. Cuddy’s research findings are in alignment with the studies completed by professors Adrian Sargeant and Jen Shang, of Plymouth University, who have stated:

There would appear to be a relationship between trust and a propensity to donate…. There is [also] some indication here that a relationship does exist between trust and amount donated, comparatively little increases in the former having a marked impact on the latter.”

In other words, the research demonstrates that the level of trust one has in a charity and its representatives, affects both willingness to give and the amount of giving.

Cuddy says:

If someone you’re trying to influence doesn’t trust you, you’re not going to get very far; in fact, you might even elicit suspicion because you come across as manipulative. A warm, trustworthy person who is also strong elicits admiration, but only after you’ve established trust does your strength become a gift rather than a threat.”

If you’re like most fundraising professionals, you instinctively understand the importance of establishing a trusting relationship. However, what are you doing to build and maintain them?

Here are just five helpful tips for earning and building trust with prospects and donors:

January 27, 2017

Your #Charity is Losing Big Money If It Ignores This Giving Option

If you’re like most fundraising professionals, you’re ignoring one high-potential giving option. Sadly, it could be costing your nonprofit organization a fortune.

I’m talking about gifts of appreciated securities (e.g., stocks).

The Wall Street Bull.

The Wall Street Bull.

Just days ago, the Dow broke through the 20,000 level to set a new record close. The NASDAQ and the S&P 500 are also in record territory. As stock values have continued their post-election rally, many more Americans now hold appreciated stocks.

In 2016, 52 percent of Americans said they owned stocks in some form, according to Gallup. While that’s down from the 65 percent who owned stocks prior to the Great Recession, a majority of Americans still hold stock, directly, in mutual funds, and in retirement accounts.

Given that most Americans own stock and many of those stocks have appreciated in value, the nonprofit sector has a tremendous opportunity.

Contributing appreciated stocks provides donors with some important benefits:

  • It gives donors access to a pool of money with which to donate that would not otherwise be available to them for other purposes without negative tax consequences.
  • Contributors who donate appreciated stocks may be able to avoid paying the capital gains tax on those securities.
  • Donors may also be able to take a charitable-gift tax deduction based on the value of the stock donated.

Given the benefits for the donor and the nonprofit organization, I’m puzzled about why more charities aren’t stepping up to promote gifts of appreciated securities.

I know. I know. You’re organization’s website probably mentions this giving option in passing. For example, my alma mater Temple University promotes gifts of appreciated stock and mutual funds on its website. Unfortunately, it takes three clicks from the Home Page to find the 82-word statement buried on the vaguely named page “More Ways to Give.” I suppose that’s a bit better than the charities that don’t mention this giving option at all.

On the other hand, the American Civil Liberties Union does a better job of promoting stock gifts on its website. Furthermore, unlike Temple University, the ACLU site provides all of the information and instructions a donor will need in order to make a gift of stock.

To help donors understand the value of donating stock, The National Philanthropic Trust, which manages Donor Advised Funds, includes a hypothetical case study on its website to illustrate the value of donating appreciated stock.

Savvy donors, perhaps more donors than in recent years, are already benefitting by donating appreciated stocks.

For example, NPT saw an increase of stock gifts last year. Eileen Heisman, NPT’s President and CEO, reports:

January 20, 2017

Now is the Time to Grow Up and Show Up!

Recently, pollster Frank Luntz, Founder of Luntz Global, said, “Grow up and show up.”

While the phrase has been used in a political context, it certainly applies to the philanthropic world as well.

Luntz was speaking about the nearly 70 (at the time) members of Congress who have decided to boycott the Presidential Inauguration of Donald Trump on January 20, 2017. He suggested that by failing to show up, these members of Congress are breaking with tradition, exacerbating an already divisive atmosphere, and failing to represent the portion of their constituencies who voted for Trump.

Luntz is not the first to use the line “Grow up and show up.” While I don’t know the origin of the phrase, I do know that liberals have used it as well. For example, a number of liberals used the phrase to encourage people to go to the polls and vote for Hillary Clinton.

I find it interesting that both sides of the political spectrum have embraced “Grow up and show up.” Ah, common ground! So, what does this mean for fundraising professionals?:

1.  Sometimes, we need to work with people (e.g., staff, board members, prospects, donors, etc.) we don’t particularly like or agree with. To me, grow up means we need to have the maturity and professionalism to separate our personal selves from our professional selves. We need to do what is best for our organizations and the entire nonprofit sector.

2.  We need to take action. To me, show up means it’s not enough to feel one way or the other; it’s not enough to pay lip-service to an issue or cause; it’s not enough to sign a petition; it’s not enough to participate in a protest. We need to back up our words with substantive action.

Let me share a personal example with you:

Years ago, the CARE Act was under consideration by Congress. The Act bundled a variety of charitable giving incentives including the IRA Charitable Rollover. At the time, I served as a Board Member, and eventually Chair of the Board, of the Association of Fundraising Professionals Political Action Committee.

Sen. Rick Santorum (R-PA) with Michael J. Rosen at CARE Act rally.

Sen. Rick Santorum (R-PA) with Michael J. Rosen at CARE Act rally.

The lead sponsor of the CARE Act was Sen. Rick Santorum (R-PA), He didn’t just lend his name to the Act or pay lip-service to it. He passionately believed in helping the nonprofit sector and, therefore, he actively worked for passage of the bill and partnered with Sen. Joe Lieberman (D-CT) as lead sponsors.

At the time, Santorum was not popular among a large group of AFP members. As a conservative, he was anti-abortion and anti-gay marriage. I was contacted by a number of angry AFP members who did not want the AFP PAC to contribute Santorum’s re-election campaign and who did not want me working with him for passage of the CARE Act.

Despite the objections of some AFP members, the AFP PAC contributed to the Santorum campaign. The AFP PAC also contributed to Lieberman’s campaign although some AFP members objected to that as well. The AFP PAC exists to promote philanthropy, period. In the Senate, Santorum was the most supportive of the nonprofit sector. The contribution was appropriate.

I also continued to work closely with Santorum on advocacy efforts to secure passage of the CARE Act. It was the right thing to do for the nonprofit sector.

December 29, 2016

You Don’t Want to Miss These Worthwhile Items from 2016

As the frenzied year-end fundraising and holiday season draws to a close, we have an opportunity to catch our breath this week. Like me, you’ve probably found that, between work and family, a 24-hour day just isn’t long enough to accomplish everything we want to do. We need a break every so often.

im-drowning-in-data-by-quinn-dombrowski-via-flickrWhen trying to stay on top of the latest fundraising and nonprofit marketing news and ideas, I know it’s time consuming just to sift through the wealth of articles, blog posts, and books that are published each year. It’s easy to drown in all the information. That means it’s also easy to overlook useful information.

With this blog post, I aim to save you some time and link you to some valuable material by listing some of my most popular posts of 2016, showing you where you can find other excellent bloggers, and by telling you where you can find books recommended by readers who are fundraising professionals and nonprofit managers.

Here is a list of my top ten most read posts published in 2016:

  1. Stop Showering All of Your Donors with Love!
  2. Stop Making Stupid Email and Direct Mail Mistakes
  3. Do You Know that “Planned Giving” is Bad for #Fundraising?
  4. Avoid a Big Mistake: Stop Asking for Bequest Gifts!
  5. Donors Say: Enough about You. Let’s Talk about Me!
  6. How Can Nana Murphy Make You a Better #Fundraising Professional?
  7. How to Avoid a Disastrous Political Debate with Donors
  8. 6 Great #Fundraising Tips from a 6-Year-Old Boy
  9. Do You Know How to Take Criticism?
  10. Stop Pretending that You Work for Stanford!

Here’s a list of five of my older posts that remained popular this year:

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.

You might also be interested in reading about my guest blog posts on the Bloomerang site:

Recently, I was interviewed twice for the MarketWatch site. You can find links to the articles as well as my elaboration on my comments here:

December 9, 2016

#GivingTuesday Hits and Misses

I’m not a fan of #GivingTuesday. Don’t get me wrong, though. I do like the idea of it. Promoting philanthropy at a time of year that has become associated with extreme consumerism is a nice concept.

While I have no quarrel with the idea of #GivingTuesday, I do have several problems with the reality of it, including:

It does not inspire much philanthropy. During #GivingTuesday 2016, early reports show that charities raised $168 million … WORLDWIDE. Last year, nonprofit organizations raised $117 million. Assuming all of that money was given in the USA, which was not the case, it would have accounted for just 0.03 percent of overall philanthropy!

We do not know whether #GivingTuesday inspires new and increased giving. While people contributed on #GivingTuesday, we simply do not know whether they would have given those gifts anyway. We also do not know if #GivingTuesday simply shifts when people give.

Well-resourced charities may be siphoning support away from smaller nonprofits. With larger marketing budgets, staff sizes, and brand awareness, it’s entirely possible that big organizations benefit from #GivingTuesday at the expense of smaller ones.

#GivingTuesday growth appears to be slowing. NonprofitPro reports that this year’s growth rate is the lowest in the five-year history of the campaign.

While I recognize that some charities have benefitted from their #GivingTuesday campaigns, I still fail to see how it is a benefit to the nonprofit sector as a whole. (You can read my more detailed critiques of #GivingTuesday by entering that term in my blog’s search box to the right.)

Furthermore, I find that many individual charities do themselves more harm than good by rushing to embrace #GivingTuesday while failing to invest time and money to enhance the fundamental fundraising skills of staff.

Consider the #GivingTuesday appeal initiated by Inis Nua Theatre Company. This small theatre company in Philadelphia produces excellent contemporary, provocative plays from Ireland, England, Scotland, and Wales.

Jessica Simkins, General Manager of Inis Nua, told me that the company normally does a year-end fundraising campaign. This year, staff chose to use #GivingTuesday to frame this year’s appeal. Rather than implementing an entirely new appeal for #GivingTuesday as many nonprofits have done, Inis Nua chose to leverage the hype around #GivingTuesday, such as it is, to see if it could boost its year-end fundraising campaign.

Despite my general feelings about #GivingTuesday, I actually like this application of the concept. I consider it a Hit. I also like that they included a challenge grant.

Unfortunately, the appeal letter itself is a big Miss. Here’s the direct mail appeal my wife received:

gt-inis-nua-mail-appeal

The major issue I have with the mailing is that it is very organizational-focused. The author uses the words I, my, our, ourselves, us, we a total of 30 times in a one-page letter. On the other hand, the writer uses the words audiences, donors, patrons, supporters, you and your only eight times.

The letter is a self-congratulatory missive from the Founder and Artistic Director. Donors are never given any credit for helping to make possible Inis Nua’s impressive accomplishments. There are other problems with the appeal, but the organization-centric approach is a giant problem. Piggy-backing on #GivingTuesday won’t offset Inis Nua’s neglect of fundraising fundamentals.

By contrast, my wife received a donor-centered email from Lantern Theater Company that also referenced #GivingTuesday. Lantern Theater is also a small nonprofit in Philadelphia that produces classic and modern plays. Unlike Inis Nua, Lantern’s mission statement actually mentions audiences, audience members, and community. You’ll see the audience/community focus represented in Lantern’s email appeal:

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.

November 4, 2016

It’s Not Just What They Say, but How They Say It

To raise more money, listen carefully to your prospects and donors. They’ll give you vital insights about their philanthropic interests and ability to give.

Furthermore, they’ll give you clues about how to most effectively present to them.

Tom Hopkins, the sales guru and author of Low Profile Selling, suggests that by adapting your presentation style according to prospect preference, you’ll be far more successful.

Let me explain.

If you’re visiting with a prospect to make the case for support of a particular initiative, he may say, “I see what you mean.” That could be a clue that the prospect prefers to relate to information visually.

fennec-fox-ears-by-caninest-via-flickrSo, you would be wise to adapt your presentation to be more visual. For example, you could share a printed copy of the case for support. Or, you could show the prospect a brief video that illustrates what you’re saying. Another way to engage such a prospect is to ask her to imagine. For example, if you work for an animal shelter, you might ask, “Can you imagine how happy you’ll make dozens of puppies and kittens with your support?”

Alternatively, your prospect might say, “I hear what you’re saying.” That could indicate that she prefers getting information by listening.

October 19, 2016

What Can You Learn from Trump’s Faltering Campaign?

This is not a political post.

Instead, it’s about you, your nonprofit organization, and those who benefit from its services.

As I write this post, Donald Trump’s bid to become President of the USA is faltering. With three weeks left in the campaign, he still could pull out a win. However, he’ll need to run a radically different campaign to do that.

As a former newspaper editor, I’m still a political news junkie. So, I’ve carefully observed the political campaign for months, okay, for years. Not long ago, I even had the opportunity to participate in a focus group facilitated by renowned pollster Frank Luntz for CBS News; it provided great insights into the thinking of undecided voters in Pennsylvania. Along the way, I’ve discovered an important lesson that can be of profound value to you.

Donald Trump holds up magazine cover featuring himself.

At a campaign stop, Donald Trump holds up magazine cover featuring himself.

It’s simple, really. Trump rose in the polls when he talked about what he would do for us, the American people. His numbers fell when his campaign became about him. For example, in recent days, Trump has had to respond to the “locker-room talk” video revealing his misogynist thoughts. He’s also been talking about how the media is against him, and how the election is rigged. Even more strangely, Trump has renewed his attacks on fellow Republicans, which has nothing whatsoever to offer the American people other than more drama.

The media analysis is overly complicated. I get it. The media have to fill column inches and hours of airtime. However, the political situation is really rather simple. Voters want to know what the candidates will do for them. At the very least, voters want to know that the candidates are thinking about them and understand them. The more a candidate focuses on the voter, the more likely he or she will be to gain traction.

October 3, 2016

A Powerful Lesson about #Philanthropy from 2 Celebrities

When I was a young boy, I learned a valuable idiom:

You can’t judge a book by its cover.”

My parents wanted me to appreciate that before you can know or judge something, you first need to take a closer look to develop a deeper understanding.

But, is the idiom correct? For fun, I thought I’d see if it is strictly true when it comes to fundraising. Okay, I’m admittedly a nerd. However, I identified a worthwhile lesson when I explored the issue during philanthropy conversations I had recently with Carl Hiaason, the award-winning journalist and novelist, and Alton Brown, the Food Network star and cookbook author.

Michael Rosen and Carl Hiaasen at the Free Library of Philadelphia.

Michael Rosen and Carl Hiaasen at the Free Library of Philadelphia.

With best-selling book titles including Strip Tease (made into movie), Hoot (also made into a film), Basket Case, Bad Monkey, Skinny Dip and, his latest, Razor Girl, it’s impossible to know what charitable causes interest Hiaason. However, when reading his novels, you’ll find more than quirky characters and over-the-top funny, satirical plots. You’ll also discover underlying messages that are pro-environment. In some of his books, protecting the environment is the plot.

I wondered if the passionate content of Hiaason’s novels could offer a clue to which charitable causes interest the author. So, I asked him. Hiaason responded:

I really don’t want to say that I endorse anybody… [However,] I’ll tell you that in the past I’ve supported, as a private citizen, the Earth Justice Legal Defense Fund [Earthjustice]. It’s phenomenal; they do great work; it’s basically a law firm that takes on big polluters in Florida and the rest of country.”

Hiaason also supports the Everglades Foundation, which raises funds for groups trying to clean up the Everglades.

After reading just a few of his books, it’s easy to see that environmental protection is important to Hiaason. So, I was not surprised to learn about his favorite charities.

Alton Brown and Michael Rosen at the Free Library of Philadelphia.

Alton Brown and Michael Rosen at the Free Library of Philadelphia.

With Brown, it is even easier to guess where his philanthropic passion lies. Brown has hosted top-rated Food Network shows including Good Eats, Iron Chef America, and Cutthroat Kitchen. He’s also written eight books including his latest: Alton Brown: EveryDayCook.

While clues to Hiaason’s philanthropic interest could be found in the pages of his books, I believed Brown’s could be found right on the covers. So, I asked him what his favorite charity is. Brown told me:

I support many charities, but I particularly like Heifer International.”

Heifer International is a charity seeking to end hunger and poverty around the world. Given Brown’s passion for food, it’s not at all surprising that he would support a cause related to food and hunger.

Here are some takeaways for you:

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