Posts tagged ‘donor-centered’

March 25, 2015

I Wish I’d Thought of That!

Have you ever stumbled upon a brilliant fundraising idea that inspired you to say, “I wish I’d thought of that!”?

Light Bulb Moment by Kate Ter Haar via FlickrSome of the greatest tactics and strategies we will implement during our careers are ideas that originated with others. Fundraising and nonprofit management ideas surround us. The challenge is not that there is a shortage of ideas; the challenge is knowing which ideas are truly great.

Now, the Association of Fundraising Professionals and the Showcase of Fundraising Innovation and Inspiration have teamed up to make that task easier. At the AFP International Fundraising Conference (Baltimore, March 29-31, 2015), AFP and SOFII will host the session “I Wish I’d Thought of That!”

IWITOT is a unique seminar that will be moderated by Ken Burnett, Founder of SOFII, and involve 16 top-notch fundraising professionals who will each have up to seven-minutes to present his/her IWITOT brilliant idea. The fundraising ideas must be those the presenters admire or envy — an innovative replicable idea that we can all learn from. The proviso is that the idea cannot be their own or from their own organization, says Burnett.

The presenters include:

  • Adrian Sargeant, Plymouth University
  • Derrick Feldmann, Achieve
  • Tom Ahern, Ahern Communications
  • Amy Eisenstein, Tri-Point Fundraising
  • Simone Joyaux, Joyaux Associates
  • William Bartolini, Wexner Medical Center and Health Sciences Colleges
  • Valerie Pletcher, Brady Campaign & Center to Prevent Gun Violence
  • Daryl Upsall, Daryl Upsall Consulting International
  • Stephen Pidgeon, Stephen Pidgeon Ltd.
  • Amy Wolfe
  • Laura Fredricks, Laura Fredricks, LLC
  • Robbe Healey, Simpson Senior Services
  • Alice Ferris, GoalBusters, LLC
  • Frank Barry, Blackbaud, Inc.
  • Missy Ryan Penland, Clemson University
  • Tycely Williams, American Red Cross

“Each speaker will have a maximum of seven minutes each focused on a single big idea. This means that it’s a fast, colourful, entertaining, and inspirational session with much to learn for everyone and lots of fun, too,” says Burnett. “The speakers have been carefully chosen to give a balanced mix of seasoned professional leaders, sector gurus, and new, fresh ‘rising stars.’”

Here’s a limited preview of some of the ideas you’ll learn about during the IWITOT session:

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 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:

December 19, 2014

Is Spelman College Unethical?

Spelman College has announced that it is suspending an endowed professorship in humanities that was funded by Bill and Camille Cosby. Spelman issued this one-paragraph statement:

December 14, 2014 — The William and Camille Olivia Hanks Cosby Endowed Professorship was established to bring positive attention and accomplished visiting scholars to Spelman College in order to enhance our intellectual, cultural and creative life; however, the current context prevents us from continuing to meet these objectives fully. Consequently, we will suspend the program until such time that the original goals can again be met.”

The Cosby family donated $20 million to Spelman in 1988. In 1996, Spelman opened the Camille Olivia Hanks Cosby EdD Academic Center. At that time, “an endowed professorship named for Drs. Cosby was also established to support visiting scholars in the fine arts, humanities and social sciences as well as Spelman College’s Museum of Fine Art,” according to a November 25 written statement by Beverly Daniel Tatum, Spelman’s president.

The November statement also explained:

The academic center and endowed professorship were funded through a philanthropic commitment from the Cosby family made more than 25 years ago, and at this time there are no discussions regarding changes to the terms of the gift.”

Just 19 days later, Spelman reversed its position and suspended the professorship. When contacted, several Spelman officials refused to comment. A representative for Cosby also declined to comment.

Bill Cosby by remolacha.net via Flickr

Bill Cosby

For the past several weeks, Bill Cosby has been the target of a large number of sexual assault allegations. However, no criminal charges have been filed against Cosby. Spelman knew this in November. It’s unclear why the College abruptly suspended the endowed professorship now. While additional allegations have been made in the intervening weeks, Cosby still has not been charged with a crime.

To paraphrase Tyler Perry, if Cosby did commit the sexual assaults, it’s a terrible situation. If Cosby did not commit the sexual assaults, it’s a terrible situation. I won’t comment on the Cosby situation beyond that. However, I do want to explore the Spelman news because it has broader implications for all nonprofit institutions.

Nonprofit organizations are ethically required to use a donor’s contribution in the way in which the donor intended. The applicable portions of the Donor Bill of Rights “declares that all donors have these rights”:

IV. To be assured their gifts will be used for the purposes for which they were given….

V. To receive appropriate acknowledgement and recognition….

VI. To be assured that information about their donations is handled with respect and with confidentiality to the extent provided by law.”

The relevant passages from the Association of Fundraising Professionals Code of Ethical Principles state:

November 14, 2014

One Word is Costing Your Fundraising Effort a Fortune

If you’re like most nonprofit development professionals, you’re doing it. You’re using one particular word in your fundraising effort that is costing your nonprofit organization a fortune.

I have the research that proves it.

If you talk with prospects about and ask them for a “bequest” commitment, you’re leaving enormous sums of money on the table. That’s the conclusion of recently released data shared by Russell James, JD, PhD, CFP, a leading philanthropy researcher based at Texas Tech University.

wordsthatwork3-01James will be sharing his research-based insights during a free webinar hosted by MarketSmart, on Wednesday, November 19 at 1:00 PM (EST). Words That Work: The Phrases That Encourage Planned Giving will explore the words and phrases that inspire donors to give and give more. Conversely, James also will look at the words and phrases that development professionals traditionally use that are actually counter-productive, such as the word bequest.

Consider this: A 2014 survey of 1,418 individuals found that 23 percent of respondents were “interested now” in “making a gift to charity in my will.” By contrast, only 12 percent were “interested now” in “making a bequest gift to charity.”

In other words, talking about bequest giving cuts your chance of getting a bequest commitment nearly in half! For greater results, it’s better to use simple, approachable language. As James suggests, when communicating with donor prospects, it’s a good idea to imagine you’re talking with your grandmother.

Not only do the individual word choices we make have a massive impact on the money we raise, how we use simple phrases can likewise make a huge difference.

James recently reported that 3,000 actual testators in the UK, not simply survey takers, were randomly placed into one of three groups when speaking with an estate planner:

  1. No reference to charity.
  2. Would you like to leave any money to charity in your will?
  3. Many of our customers like to leave money to charity in their will. Are there any causes you’re passionate about?

When the estate planner did not raise the subject of charitable giving, five percent of testators initiated the inclusion of at least one charity. In the second group, which was asked about including a charity, 10.4 percent agreed to do so. Clearly, asking has a significant, positive impact. However, members of the third group, which heard that others were including charities in their will, were even more likely to make a commitment. Now, here’s one of the key findings: Among those in the third group, 15.4 percent included at least one charity in their estate plan.

The commercial sector refers to the simple phrasing used with the third group as the bandwagon effect or social-norm effect. People are more likely to take action if they know others are already doing so. As the research demonstrates, this principle holds true when encouraging people to include a charity in their estate plan.

Interestingly, the positive impact does not stop at just the percentage of folks willing to make a charitable plan.

March 18, 2014

Get More Repeat Gifts: The Rule of 7 Thank Yous

Donor retention is a worsening problem for the American nonprofit sector, according to Jon Biedermann, Vice President of DonorPerfect. In 2011, only half of first-time donors to a charity could be counted on to make a second gift. As bad as that retention rate was, it dropped to 49 percent in 2012.

Something must be done.

It’s challenging and expensive to acquire first-time donors. Charities must do a better a job of hanging on to those donors. Cost-efficient annual fund campaigns as well as major and planned giving efforts depend on loyal donors.

MG Fundraising CoverFortunately, guest blogger Amy Eisenstein, ACFRE  offers a simple idea that can help: “The Rule of Seven Thank Yous.” Her rule will help you retain first-time donors, loyal donors, small donors, and major donors — in other words, all donors.

Amy is an author, speaker, coach and fundraising consultant who’s dedicated to making nonprofit development simple for you and your board. Her books include 50 A$ks in 50 Weeks and Raising More with Less.

In her current Amazon bestseller, Major Gift Fundraising for Small Shops, Amy takes the complex subject of major gift fundraising and distills it down to its essential elements. The book provides a clear, methodical approach that any organization can follow. Great tips, real-world stories, check lists, sample forms, and more make this a book that you will keep on your desk and refer to often, that is if you want to raise more money than you might have thought possible.

I’m happy to share Amy’s advice about how to more effectively retain donors. Here’s what Amy Eisenstein says:

There are two main reasons that donors, including those who make major gifts, provide for not making a repeat contribution:

1. They didn’t feel thanked; and/or

2. They were never told how their first gift was used.

Fortunately, the answer to this dilemma is a simple one: donors give because doing so makes them feel good. This includes feeling appreciated for their gift and knowing that their check has fed more children, cleaned the environment, or in whatever way has made a measurable, positive difference to a cause they care about.

Your job, no matter how large or small your budget, is to make sure your donors are satisfied on both counts. Over the course of working with dozens of nonprofit organizations, I’ve developed a simple process to help you do just that whenever you receive a major gift.

You may have heard that you should thank a donor seven times before asking for another gift. Here is my version of “The Rule of Seven Thank Yous” works:

1. Thank the donor at the ask meeting (once they say “yes”).

2. Have a board member call to say thank you after the meeting.

3. Send a tax-receipt thank-you letter within forty-eight hours of receiving the gift.

4. Have the executive director write a thank-you card as a follow-up to the ask meeting. 

Follow

Get every new post delivered to your Inbox.

Join 948 other followers

%d bloggers like this: