Posts tagged ‘donor-centered’

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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October 23, 2018

Do You Want to Avoid Being a Fundraising Horror Story?

With Halloween just days away, horror is in the air. You can watch any number of classic or recent horror films on your television, or other electronic device. You can also go to your local movie theater to see the latest scary movie.

However, if you want to avoid being a horror story yourself, I have some important advice for you borne out of my wife’s recent donor experience with Cedars-Sinai Medical Center. Allow me to tell you the frightening tale, and share what you can learn from it.

My wife regularly reads a blog written by a nutritionist who is focused on a particular health condition. Not long ago, the blogger published a post about the research being conducted at Cedars-Sinai for this particular health issue. The post contained a link for readers interested in donating to the research project.

My wife clicked the link and was taken to the appropriate donation page on the Cedar-Sinai website.

Here’s where things start to get a bit scary.

It’s a good thing that the blogger provided the link, because the Medical Center’s homepage does not contain a link to its donation page at the top of its homepage. To find it, you need to take the time to search for it; if you go looking, it’s at the very bottom of the page.

The other disturbing part of the organization’s website is that, when making a donation, you must select a Title from a drop-down menu. The options are Cantor, Dr., Father, Mr., Mrs., Ms., Pastor, Rabbi, and Reverend. Notice any missing options? Well, they are missing others such as Honorable, military ranks, and other religious titles. They are also missing Mx., the preferred Title of many transgender and non-binary people. Sadly, there’s no way to write-in one’s own preferred Title. Furthermore, this is a required field. In other words, a transgender person who prefers the Mx. Title is compelled to choose between the wrong Title or simply not donating online to Cedars-Sinai. That’s the very opposite of rolling out the welcome mat.

Because my wife was provided the appropriate link and prefers either the Mrs. or Ms. Title, she was able to make an online donation. When doing so, she restricted her gift to the particular research project mentioned by the blogger. She also included a note in the comment field alerting the Medical Center that this would be a one-time gift.

Now, the fundraising horror really began for my wife.

Despite having clearly indicated that the gift was a special, one-time event, Cedars-Sinai insisted on sending a number of appeals to her. Making matters worse, none of those appeals had anything to do with the health issue that my wife contributed to. The institutional magazine that was sent to her contained no information about the health issue of interest. She never received any information from Cedars-Sinai about the research project.

My wife contacted Cedars-Sinai to once again inform them that her donation was a one-time event. She requested that Cedars-Sinai remove her from its mailing list. Weeks later, she still receives mail from them. A lot of mail. All of it unwanted, none of it relevant to the initial restricted gift. With more of her donation wasted with each mailing, my wife’s level of frustration and annoyance continues to increase.

Are you writing a horror story for your donors? Don’t.

Here are three things you can learn from the Cedars-Sinai fundraising horror story:

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October 5, 2018

9 Hard Truths Every Fundraiser Needs to Face in the 21st Century

In the Oscar-nominated film A Few Good Men, Jack Nicholson’s character famously shouts, “You  can’t handle the truth!”

Well, if you want to be a successful fundraising professional, you better know the truth and be prepared to handle it.

If you want to be successful at anything, you need to face the core truths involved no matter how challenging. Ignoring reality is a certain pathway to failure.

One nonprofit development truth is that authentic, donor-centered fundraising results in more donors giving more money than would otherwise be the case. Penelope Burk wrote about this years ago in her landmark book Donor Centered Fundraising, available October 15 in a new second edition. I wrote about the subject in my own book, Donor-Centered Planned Gift Marketing.

Recently, Greg Warner, CEO of MarketSmart, released his powerful new book that reveals a straightforward, meaningful way fundraisers can embrace the concept of donor-centered fundraising.

In Engagement Fundraising, Greg passionately reveals the 21st century donor-centric strategy practiced by MarketSmart. Some people might be angered by or afraid of the core message of this book while others will find it to be simple common sense. However, one thing everyone can agree on is that Greg is a disrupter, and that’s a good thing. If it wasn’t for society’s disrupters, we’d still be riding around in horse-drawn carriages, and you’d be reading his book by candlelight. His fresh, technology-driven approach is a powerful way forward for those interested in engaging people to inspire more philanthropic support.

At the end of this post, I reveal how you can download, for free, the introduction and first chapter to Engagement Fundraising. But now, I want to share Greg’s additional insights with you as he outlines nine hard truths every fundraiser needs to face in the 21st century:

 

1.  Competition is fierce and everywhere. Nonprofits don’t only compete with other nonprofits. They also compete with private sector businesses and Uncle Sam (the tax collector) for every donor’s “share of wallet and attention.” Plus they want non-exclusive, polyamorous relationships with organizations. In other words, they will decide when they’ll cozy up to other charities. Of course, you can influence their decisions but you can never control them. You are at a disadvantage. Private sector companies and the government have deeper pockets. In order to win, you better be smart!

2.  Most of the time donors spend involving themselves with your organization happens without a fundraiser present. More than 99 percent of every donor’s time and energy spent involving themselves with your organization’s mission is done without you. You must accept this new reality and enable your supporters’ self-education and self-navigation of the decision-making process.

3.  The consideration continuum is open-ended. Donors are fickle. Their needs, passions, and interests will change. As they do, they might decide to give more, less, or stop giving altogether. They might involve themselves deeper in your cause or end their involvement (perhaps even by removing your organization from their estate plan). As a result, customer service (stewardship) is more essential now than ever.

4.  Your job is to make them feel good, not ask for money. In order to generate major gifts (including legacy gifts) and inspire high-capacity mid-level donors to give more, you must make your donors feel good by engaging them politely and persistently with offers that deliver value over time. If you do that, your donors self-solicit. They’ll step up to make a difference so they can find meaning in their lives. Then they’ll ask you, “What can I do to help?” Yes! Seriously! If you make them feel good, they will give, give more, refer friends, get more involved, become more committed, and make legacy gifts.

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August 29, 2018

Surprise! You’re Most Likely Part of the Top One Percent.

As you begin to make plans for year-end appeals, let’s spend a few moments considering the idea of entitlement. I’m talking about the idea that wealthy individuals and corporations should, perhaps must, “give back” simply because they have a lot of money.

Do you think the top one percent income earners should pay higher taxes? Do you think they should donate more money to charity?

You might feel a bit differently after I share some news with you. If you earn at least $32,400 a year (or approximately 30,250 Euros, 2 million Indian Rupees, or 223,000 Chinese Yuan), you are part of the top one percent of income earners in the world, according to a new report in Investopedia. If you’re reading this post, I’ll bet the odds are that you’re a one-percenter. Congratulations!

So, as a global one-percenter, do you feel under-taxed? Do you feel cheap and that you don’t contribute enough to charities, particularly global non-governmental organizations? Should fundraising professionals in the USA and around the world expect, perhaps even demand, that you donate more? Should they shame you for not giving enough? Are charities entitled to more of your money just because you’re a one-percenter?

You might think so. I do not.

I believe that charities must behave ethically, provide great services, develop a meaningful case for support, and inspire people, foundations, and corporations to give. Charities must partner with donors, report to them, engage them. Simply thinking that the rich, or anyone for that matter, should do more is not going to get the job done.

I want to share a bizarre story with you that would be funny if it were not true. It’s about fundraising for a wedding. It nicely illustrates my point regarding the failure of an entitlement mindset.

Susan and her fiancé were childhood sweethearts. The couple worked on her family’s farm before attending community college. Then, they went to work to “become financially stable.” The couple continued working hard and eventually saved $15,000 for a wedding. Unfortunately, that wasn’t enough money for the “extravagant blow-out wedding” Susan wanted in order to properly celebrate their “fairy-tale” relationship.

Susan figured her ideal wedding would cost $60,000. So, she decided to look for financial help. She says, “All we asked was for a little help from our friends and family to make it happen.” Specifically, the-bride-to-be sought cash gifts. “How could we have our wedding that we dreamed of without proper funding? We’d sacrificed so much and only asked each guest for around $1,500.” As Fox News reported, Susan also said she “made it clear. If you couldn’t contribute, you weren’t invited to our exclusive wedding. It’s a once and a lifetime [sic] party.”

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August 7, 2018

Mega-Philanthropist with Profound Legacy:H.F. “Gerry” Lenfest (1930 -2018)

H.F. “Gerry” Lenfest, cable-television pioneer, mega-philanthropist, and civic leader, has died at the age of 88. His extraordinary generosity and wisdom will have a lasting impact.

I had the privilege of knowing Gerry. I was especially honored that he provided the Foreword to my book, Donor-Centered Planned Gift Marketing. I want to share some of his astute words with you. However, I first want to tell you a bit about this great man and his exceptional life.

Gerry Lenfest (left) with Michael Rosen.

Gerry was not born into great wealth. He was born in Jacksonville, FL, and raised in Scarsdale, NY and later on the family farm in Hunterdon County, NJ. After his mother died when he was 13-years-old, his father sent him to the George School, a private boarding academy. A troubled student, he was invited not to return after just one year.

At his new school, young Gerry continued to be something of a juvenile delinquent, his own description. Finally, his father enrolled him at Mercersburg Academy where teenage Gerry began to excel.

Following high school, Gerry was directionless. He worked as a roughneck in North Dakota, a farm hand, and as a crew member on an oil tanker. Eventually, he attended Washington and Lee University where he received an undergraduate economics degree. He served in the U.S. Navy, rising to the rank of captain. In 1955, he married Marguerite Brooks, an elementary school teacher. Gerry went on to receive his law degree from Columbia University and, then, served with a prestigious New York law firm.

Walter Annenberg hired Gerry in 1965 to work at Triangle Publications, Inc., owner of Seventeen and TV Guide magazines, the Philadelphia Inquirer and Daily News newspapers, television and radio stations, and several cable television properties. With the help of loans and two investors, he bought two tiny cable systems from Annenberg in 1974 to start Lenfest Communications. In 2000, Gerry’s company had grown from 7,600 subscribers to over 1 million to become the 11th largest cable company in the nation. That same year, he sold the company to Comcast, netting $1.2 billion in the deal.

Gerry always attributed his great success to the skill and dedication of his various teams and good fortune, whether in business or with the nonprofit organizations he worked with. Knowing he owed much of his success in life to others motivated him, in turn, to help others.

The Lenfests signed on to The Giving Pledge, a movement of wealthy individuals who commit to donating the majority of their fortunes. Over more than two decades, the Lenfests have donated more than $1.3 billion to over 1,200 nonprofit organizations. The top 10 recipients of support from the Lenfests are (source: Philly.com):

ORGANIZATION DOLLARS IN MILLIONS
Columbia University 155.0
Lenfest Institute for Journalism 129.5
Mercersburg Academy 109.0
Philadelphia Museum of Art 107.3
Washington and Lee University  81.0
Museum of the American Revolution  63.0
Curtis Institute of Music  60.0
Lenfest (Pew) Ocean Program  53.3
Wilson College  40.0
Lenfest Scholars Program  32.0

In addition to his enormous philanthropy, Gerry served on a number of nonprofit boards including Columbia University, the Philadelphia Museum of Art, and the Museum of the American Revolution, which he helped create. In 2005, Gerry and Marguerite were awarded the Association of Fundraising Professionals Award for Outstanding Philanthropists.

You can read more about Gerry Lenfest’s extraordinary story by clicking here.

While I could say much, much more about Gerry and his tremendous, positive impact, I’d rather share some of Gerry’s own words with you. Gerry provides some sage advice for fundraising professionals about what they must do to secure significant contributions:

Knowing your prospects and understanding what motivates them are two critical steps in the [philanthropic] process. Quite simply, you cannot skip cultivation and relationship building and expect a successful outcome.”

Lenfest was also keenly aware that the fundraising process should not end when an organization receives a donation. He advises:

Do not make the mistake of forgetting about us once you receive our gift commitment. We may truly appreciate how efficiently and effectively you handle contributed funds so much that we entrust you with another [donation]. We are also in a position to influence others to do the same.”

As a strong advocate for planned giving, Gerry observes:

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August 3, 2018

Fantastic News and Opportunity for the Nonprofit Sector!

The nonprofit sector received a major piece of good news at the end of July. American Gross Domestic Product in the second quarter of 2018 grew at the annualized rate of 4.1 percent. This represents the economy’s fastest growth rate since 2014. GDP growth in the first-quarter was a healthy, though unremarkable, 2.2 percent.

I don’t really care if you love or hate President Donald Trump. I’m not making a political statement. I’m simply reporting on an economic fact that has profound implications for nonprofit organizations.

The news is fantastic for charities because overall-philanthropy correlates with GDP. For more than four decades, philanthropy has been between 1.6 and 2.2 percent of GDP. In 2017, philanthropy was once again at 2.1 percent (Giving USA). This means that when the economy grows, we can expect growth in charitable giving.

Think of it this way: For more than 40 years, the nonprofit sector has received about a two percent slice of the economic pie. It’s safe to say that that approximate proportion will continue. So, if the economic pie becomes larger, that two percent slice becomes larger as well.

While I’m oversimplifying, my fundamental point is sound: When the economy grows, so does philanthropy.

Some economists and commentators believe the robust GDP growth rate is not sustainable. However, if the impressive economic growth continues, or even if growth continues at a more moderate pace, we can still expect 2018 to be a good year for charitable fundraising.

Given the positive economic environment, you have an opportunity to successfully raise money for your organization. But, it’s up to you to seize that opportunity while the positive economic environment lasts.

Here are 10 things you can do to raise more money while the economy is good:

1. Hug your donors. Ok, maybe not literally. However, you do need to let your donors know you love and appreciate them. Do you quickly acknowledge gifts? You should do so within 48 hours. Do you effectively thank donors? You should do so in at least seven different ways. You should review your thank-you letters to ensure they are heartfelt, meaningful, and effective. Have board members call donors to thank them in addition to your standard thank-you letter.

2. Tell donors about the impact of their gifts. Donors want to know that their giving is making a difference. If their giving isn’t making a difference or they aren’t sure, they’re more likely to give elsewhere. So, report to your donors. Tell them what their giving is achieving and that their support is being used efficiently.

3. Start a new recognition program. One small nonprofit organization I know started a new, special corporate giving club. CEOs of the corporate members are placed on an advisory board, receive special recognition, and are provided with networking opportunities. This new recognition program generated over $50,000 in just a few months. While enhancing existing recognition efforts is beneficial, starting a new recognition program can yield significant results.

4. Ask. Your organization is providing important services. It needs money. Give people the opportunity to support your worthy mission. When you ask for support, just be certain not to limit the ask to cash gifts. Research shows that organizations that receive non-monetary donations (e.g., stocks, bonds, personal property, real estate, etc.) grow significantly more than organizations that receive only cash contributions. Partly as a result of the new income tax code, the number of Donor-Advised Funds has grown significantly. So, make it easy for your supporters to give from their DAFs.

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July 27, 2018

How to NOT Make a Mistake Worse

There is an adage, first published in The Bankers Magazine (1964) that advises wisely:

If you find yourself in a hole, stop digging.”

The Law of Holes suggests we should strive to not make bad situations worse through further unhelpful, counter-productive behavior.

Sadly, many people, including nonprofit managers and fundraising professionals, fail to heed that fine advice. Instead, when in a bad situation or when confronted by criticism, many folks make matters worse by reacting defensively, acting helplessly, remaining in denial, criticizing the critic, or ignoring the situation altogether.

Fortunately, many people handle criticism gracefully and, in the process, set a fine example for the rest of us.

Recently, I wrote about my wife’s failed attempt to donate to a local charity. While my wife and I have never supported the organization, we do agree with its mission. Therefore, it was with great interest that I noticed that the charity was hosting a fundraising event with a speaker I wanted to hear. My wife went to the organization’s website to buy tickets. However, due to a website glitch, she was unable to complete the transaction. So, she then called the organization during office hours. Not being able to reach a live person, she left a voice-mail message. No one from the organization returned her call. We ended up not attending the event.

After I posted about my wife’s experience and what fundraisers can learn from it, I sent the organization’s Executive Director an email and a link to my article. I sent the email on Tuesday evening at 7:01 PM. I expected one of two things to happen: 1) I thought I might receive a defensive response the following business day, or 2) I might not receive any reply, ever.

Instead, my guess was happily wrong. That very evening at 7:21 PM, I received a message from the Executive Director. We can learn much from the tone and content of his response:

Dear Michael,

Your email was both upsetting and instructive. I appreciated the spirit of the message and have already begun to think about how to use it to create change and improve. Also I read your blog. I’m curious if you are a professional fundraiser? Either way you and your wife have my apologies for this unfortunate experience. It is clearly our loss when customers and potential friends are turned off. It’s contrary to the purpose of running these events and clearly counter productive.

In addition to my apologies you have my gratitude for bringing this to my attention.

Sincerely,

(name withheld here)”

Here is what we can learn from the email response:

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July 20, 2018

Make It Easy for People to Give You Money

Two different stories this week have inspired me to write this blog post, and provide two pieces of simple, essential advice.

My first tale involves a local charity. While my wife and I have never supported the organization, we do agree with its mission. Earlier this week, the charity hosted a fundraising event with a speaker I wanted to hear. My wife went to the organization’s website to buy tickets. She saw there were two options: 1) general admission tickets, and 2) tickets to both the talk and a pre-talk meet-and-greet reception with the speaker. We opted for the pricier tickets.

That’s when the trouble started.

As my wife began entering her contact information, the website would not allow her to change the town name in the address section. This was a big problem because our hometown is different from the nearby town where the charity is located. Compounding the problem, this was a required field although it did not have to be so.

Unable to buy the event tickets online, my wife called the charity to try to purchase the tickets by phone. No one answered. She left a voice-mail message. No one returned her call.

That was the end of it. My wife could not complete the transaction. We were both annoyed. While our intended contribution would not have been huge, it would have been a significant first-time gift. Unfortunately, for the charity, it lost its chance to engage us. Instead, the charity alienated us. Sadly, we likely weren’t the only people who experienced this problem.

So, what can we learn from this story? The lesson is as simple as it is significant:

Make it easy for people to give you money!

Here are some tips:

  • If you’re having a fundraising event, create a landing page on your website to make registration easy.
  • Make it easy to find the event landing page.
  • Make registering easy by ensuring the registration or donation page is functional.
  • Make it easy for people to donate money online, even when there is no special event, by having a donate button at the top, right corner of every web page on your site.
  • In addition to a donate button, have a donate tab on your website’s menu bar to make giving easy.
  • When seeking donations online or by mail, keep it simple and easy. Ask only for the information you need. The more information you seek (particularly the information you require), the greater the risk that the donor will not complete the contribution.
  • When sending direct-mail appeals, enclose a Business Reply Envelope to make responding easy.
  • Provide your full contact information (name, title, mailing address, phone number, fax number, email address) for donors to reach out to you easily with any questions or issues. Your organization’s general contact information should be on every website page.
  • When a donor or prospective donor calls, answer your phone. If you’re not going to answer your phone, be sure to respond to messages as quickly as possible. This is especially true leading up to an event or at year-end.
  • Accept gifts of cash or donations made through credit card and PayPal. In other words, make giving easy by accepting the donor’s preferred payment method.

The bottom line here is that your organization needs to make it easy for people to give it money. Donors have choices. Your charity is not unique. There are other charities with a similar mission. If you mistreat prospects or donors, or make giving a challenge, they’ll simply support another organization with a similar mission that more effectively engages them.

While making it easy for people to give is important, it’s not enough as the following story from the for-profit sector demonstrates:

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June 15, 2018

Raise More Money by Understanding Generational Differences

When you understand the behaviors and motivations of different generations, you’ll be in a better position to build stronger relationships and, ultimately, raise more money. That’s the belief behind the Blackbaud Institute’s new report, The Next Generation of American Giving. Catherine LaCour, Chief Marketing Officer at Blackbaud and Senior Advisor to the Blackbaud Institute, writes:

[T]hese insights serve the core purpose of helping you—the social changemakers—build bridges to those who care most about your causes. Use this information to inform your outreach, but know that the relationships you cultivate are still the key. With this deeper understanding of your supporters and the tools they use, there is no limit to the positive change you can achieve.”

The report identifies eight key findings:

  1. Fewer Americans are Giving. Blackbaud is not alone in uncovering this disturbing trend. Among every generational cohort, with the exception of Baby Boomers, there is a decline since 2013 in the percentage of cohort members who say they give to charity. During the same period, total giving has nevertheless increased because those contributing are donating more.

 

  1. The Greatest Generation is in Its Sunset Years. Those born prior to 1946 are declining in number. That’s why they are no longer the dominate philanthropic group that they were in 2010. However, they remain a vitally important philanthropic cohort. These individuals give to more charities and give more money than any other generational group.

 

  1. Baby Boomers Remains the Most Generous Generation. Boomers donated 41 percent of all money contributed last year. By contrast, Gen X accounted for 23 percent, Matures 20 percent, Millennials 14 percent, and Gen Z 2 percent.

 

  1. Generation X is On Deck (and there are way more Gen-Xers than you think). While there are far fewer Gen-Xers than Boomers (65.6 million v. 74.1 million), their population is almost as large as the Millennial generation (67 million). Furthermore, Gen-Xers are approaching the life stage known to be the prime giving years. Given the population size of this cohort and their approaching life stage, they will likely continue to be a growing philanthropic force.

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