Posts tagged ‘donor relations’

August 17, 2015

Urgent Alert: Immediate Action Needed to Defend Nonprofits

There is an alarming issue you need to be aware of.

While I do not use this blogsite to engage in partisan politics, that does not mean that I avoid politics and government relations altogether. I consider myself a bi-partisan, vigorous defender of the nonprofit sector.

CA State House by David Grant via Flickr

California State House

Over the years, I’ve worked with both Democrats and Republicans in my capacity as Chairman of the Association of Fundraising Professionals Political Action Committee, Chairman of the AFP Greater Philadelphia Chapter Government Relations Committee, and a member of the AFP US Government Relations Committee. I’ve even represented AFP in testimony before the Federal Trade Commission.

As a passionate defender to the nonprofit sector and a cheerleader for voluntary philanthropy, I took notice of a recent post on The Agitator blog. Fundraising legend Roger Craver sounded an alert and issued a call to action over a dangerous move by the California Attorney General.

Never before have I reprinted a blog post. However, this issue is so important that, with Roger’s permission, I am sharing his post with you now:

 

If you’re willing to turn over the list of your top donors to the government then you need read no further.

However, if you’re not sure, or you’re absolutely certain you’d be unwilling to give up the donor list, then take this post to your CEO and General Counsel. Immediately.

Why? Because right now the Attorney General of California is set on requiring that any nonprofit seeking a license to solicit funds in the nation’s largest state first turn over their lists of top donors that are filed with the IRS on a supposedly “confidential” schedule of your tax return.

This dangerous and unconstitutional power grab in the name of ‘fundraising regulation’ and ‘consumer protection’ must be stopped.

And it’s up to all of us—nonprofits and the companies that serve them to stand up now and take action.

Whether or not your organization or one you serve solicits funds in California the battle ahead will affect the freedom of speech and privacy rights of every nonprofit in the U.S. and their donors.

In a moment I’ll outline the steps you can take immediately to head off this threat. But first some background.

A year ago this week The Agitator warned about a sinister move by the Oklahoma Attorney General and his special interest contributors to silence the Humane Society of United States (HSUS) using that state’s fundraising regulations.

HSUS has boldly and, so far, successfully fought back.

As I pointed out last August there have been relatively few occasions in modern history where politicians have blatantly sought to use the power of their office to silence nonprofits that opposed them or whose views and ideology they disagreed with.

At the end of the day, Americans and the U.S. Supreme Court have shown little tolerance for political zealots and bullies who abuse U.S. Constitution’s guarantees of free speech and due process.

NOW …The Intimidators At It Again. And We Must Make Sure They Lose. Again.

August 14, 2015

Easy Ways to Cultivate Your Donors and Raise More Money

Steven Shattuck recently interviewed me about one of my favorite topics for Bloomerang TV: Donor Cultivation.

Many nonprofit organizations see caring cultivation and solid stewardship as luxuries rather than essential components of the fundraising process. That’s one reason for low donor retention rates, 23 percent for first-time donors and 43 percent overall.

Well, I’m here to tell you that if you simply ask for donations with little or no attention given to cultivation and stewardship, you’re nothing more than a professional beggar. Development professionals recognize that fundraising does not begin and end with an appeal. Development professionals know the importance of cultivation and stewardship.

During my interview, I share a number of easy to implement, low-cost ideas for cultivating and stewarding your prospects and donors. One of the things I talk about is the value of pleasantly surprising people; I even share a couple of examples. You can read the full interview transcript of “Sneaky Ways to Cultivate Donors” by clicking here. You can watch the full 17 minute video below:

For more tips about cultivating your planned giving prospects and donors, read my article “Effectively Cultivating Prospects at Little or No Cost” which appeared in Advancing Philanthropy, the magazine of the Association of Fundraising Professionals. For additional tips and great examples for educating, cultivating, and stewarding planned giving prospects and donors, checkout my book Donor-Centered Planned Gift Marketing.

July 29, 2015

Update: Spelman College Returns Gift from Bill Cosby

Seven months ago, I first reported that Spelman College announced the suspension of an endowed professorship in humanities that was funded by Bill and Camille Cosby. At that time, I called on the College to either renegotiate the gift or return it to the Cosby family.

Post No Bills by Jon Mannion via FlickrOn July 26, 2015, the College revealed its decision to terminate The William and Camille Olivia Hanks Cosby Endowed Professorship and to return the donation to the Clara Elizabeth Jackson Carter Foundation, established by Camille Cosby.

Last December, 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.”

Amid mounting accusations of sexual assault involving Bill Cosby, the College decided to terminate the endowed professorship. As of this publication date, Cosby has not been charged with any related crime.

As I stated in my December post, 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:

14. Members shall take care to ensure that contributions are used in accordance with donors’ intentions….

16. Members shall obtain explicit consent by donors before altering the conditions of financial transactions.”

By returning the gift after deciding not to use it for the intended purpose, the College acted ethically. However, a number of other ethical questions remain unanswered:

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 29, 2015

Avoid the Pitfalls to Raise More Money

Yesterday, I made my first public speaking appearance since my successful battle with cancer began just over a year ago. I served as the plenary presenter at the Philanthropic Planning Group of Greater New York Planned Giving Day Conference. My topic:

Ripped from the Headlines: Learning from the Planned Giving Mistakes of Others”

It was a particularly moving day for me. You see, I was scheduled to speak at PPGGNY’s conference last year. Unfortunately, because of my health, I had to cancel. It marked the first time I ever canceled a professional appearance.

Meryl Cosentino, the Vice President of PPGGNY and Senior Director of Planned Giving at Stony Brook University, was very understanding and kind. She stayed in contact with me during my recovery and, when she learned of my return to professional life, she invited me to speak at this year’s Planned Giving Day. I thank Meryl and her colleagues for the invitation to present.

So, PPGGNY Planned Giving Day marked my first speaking cancelation and, now, my return to the speaking circuit! I’ve come full circle!

To help me celebrate the happy occasion, The Stelter Company generously sponsored 20 copies of my book, Donor-Centered Planned Gift Marketing, so we could give them away to random winners during my presentation. I thank Stelter for its thoughtful support. I also thank Stelter for contributing valuable material to my book. The company’s commitment to the nonprofit sector is remarkable, though not the least bit surprising.

Michael Rosen at PPGGNY Planned Giving Day Conference.

Michael Rosen at PPGGNY Planned Giving Day.

During my talk, I shared several stories about well-known nonprofit organizations that have stumbled. I also shared plenty of useful tips, and a story that provided the overarching theme to my presentation. The story contains an important lesson for all nonprofit professionals:

Several months before my surgery, I visited southern Utah with a good friend. We went hiking in Escalante National Monument, a spectacular wilderness. On the more treacherous trails, I was particularly cautious. I carefully placed my feet with each step. I looked at where I was going to step next so I could pick the best spot. Because I exercised great caution, I didn’t stumble once.

Coming off one challenging trail, I found myself on a wonderfully flat, gravel path. I gave a sigh of relief. I was pleased to be able to spend more time looking at the lovely scenery rather than the trail and my feet. However, as soon as I had that thought, I stepped into a small gully, a tiny wash. And I went falling straight over. After grabbing my camera to make sure it was undamaged, I checked myself. With the exception of a skinned knee and bruised ego, I was fine.

From that experience, I learned a profound lesson.

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.

May 1, 2015

Do Old Dogs Really Have What It Takes?

I recently heard from an old friend, Bob Crandall the Founder/Consultant at Crandall, Croft & Associates. In addition to being a terrific fundraising professional, Bob is the kind of guy who instinctively knows how to weave humor and wisdom together. The latest story he shared with me is a great example of this:

 

The Old Dog

An old German Shepherd starts chasing rabbits and before long, discovers that he’s lost. Wandering about, he notices a panther heading rapidly in his direction with the intention of having lunch.

The old German Shepherd thinks, “Oh, oh! I’m in deep s… now!”

German Shepherd by perlaroques via FlcikrNoticing some bones on the ground close by, he immediately settles down to chew on the bones with his back to the approaching cat. Just as the panther is about to leap, the old German Shepherd exclaims loudly, “Boy, that was one delicious panther! I wonder if there are any more around here?”

Hearing this, the young panther halts his attack in mid-strike, a look of terror comes over him and he slinks away into the trees.

“Whew!” says the panther, “That was close! That old German Shepherd nearly had me!”

Meanwhile, a squirrel who had been watching the whole scene from a nearby tree figures he can put this knowledge to good use and trade it for protection from the panther. So, off he goes.

The squirrel soon catches up with the panther, spills the beans and strikes a deal for himself with the panther.

The young panther is furious at being made a fool of and says, “Here, squirrel, hop on my back and see what’s going to happen to that conniving canine!”

Now, the old German Shepherd sees the panther coming with the squirrel on his back and thinks, “What am I going to do now?” But, instead of running, the dog sits down with his back to his attackers, pretending he hasn’t seen them yet, and just when they get close enough to hear, the old German Shepherd says…

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