Posts tagged ‘donor suggestions’

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:

October 28, 2016

Get a Free Halloween Treat for Fundraisers

If you’re like most fundraising professionals, you’re not optimally asking donors to include your nonprofit organization in their will.

You’re probably not driving as much traffic to your planned giving webpage as you could.

You’re also probably less successful at closing Charitable Gift Annuities than you could be.

lone-ranger-and-silver-via-melocuentas-flickr

The Lone Ranger and Silver.

I know. You decided to read this post to discover how you can get a free Halloween treat. Instead, you’re probably starting to feel tricked. But, fear not! Russell James, JD, PhD, CFP, the Texas Tech University professor and philanthropy researcher, along with the good folks at MarketSmart, are riding in to save the day.

Last summer, James conducted a webinar hosted by MarketSmart. During his presentation, James unveiled his latest, powerful research findings along with research insights from others. You can learn more about the webinar and get some great tips by clicking here.

Now, for your treat, MarketSmart has distilled James’ webinar into a free, 22-page e-book that will help you raise millions of dollars more. For example, here’s just one simple, yet valuable tip:

When you want to engage people in a conversation about Charitable Gift Annuities, what is the best way to describe this giving vehicle to make folks want to learn more?

James tested five phrases. Among the 2,550 respondents, he discovered the percentage interested in learning more:

July 28, 2016

Do You Know that “Planned Giving” is Bad for #Fundraising?

That’s right. “Planned Giving” is bad for nonprofit fundraising.

For years, I’ve been writing and talking about the problems with the term “Planned Giving.” Now, new research underscores what I’ve been advising: You should stop using the term!

Sometime ago, The Stelter Company conducted a survey that I cite in my book, Donor-Centered Planned Gift Marketing. Stelter found only 37 percent of Americans over the age of 30 have a familiarity with the term “Planned Giving.” We have no way of knowing what percentage of those claiming familiarity really, in fact, know what the term truly means.

Other terms have become increasingly popular as substitutes for “Planned Giving.” However, none has yet to gain sufficient traction to overtake the use of “Planned Giving.” Consider the results from simple Google searches I conducted for this post:

  • Planned Giving — 14.8 million results
  • Philanthropic Planning — 11.1 million results
  • Gift Planning — 5.7 million results
  • Legacy Giving — 2.1 million results

What we know is that the general public has little understanding of the term “Planned Giving” although it appears to be the best term we have. Unfortunately, popular does not mean effective.

William Shatner in The Grim Reaper by Tom Simpson via FlickrWhile “Planned Giving” is a reasonable, inside-the-development-office catch-all term to describe, well, planned giving, it’s not a particularly good marketing term. That’s according to the findings of philanthropy researcher Russell James, JD, PhD, CFP.

James conducted a study to answer this vitally important marketing question: “What is the best ‘front door’ phrase to make people want to read more Planned Giving information?”

Think of it this way: Will a “Planned Giving” button at your website encourage visitors to click through to learn more or is there a more effective term?

To be a successful term, James believes two objectives must be met:

  1. Individuals have to be interested in finding out more.
  2. Individuals have to expect to see Planned Giving information (i.e., no “bait and switch”).

To find the strongest marketing term, James asked people to imagine they were viewing the website of a charity representing a cause that is important in their lives. In addition to a “Donate Now” button, the following buttons appear on the website:

  • Gift Planning
  • Planned Giving
  • Giving Now & Later
  • Other Ways to Give
  • Other Ways to Give Smarter
  • Other Ways to Give Cheaper, Easier, and Smarter

James asked participants to rate their level of interest in clicking on the button to read the corresponding information. In a follow-up, James asked study participants what kind of information they would expect to see when clicking the buttons mentioned above.

The winning term is:

April 6, 2016

Stop Showering All of Your Donors with Love!

[Publisher’s Note: This post is part of a series kindly contributed by guest authors who attended the 2016 Association of Fundraising Professionals International Fundraising Conference. These posts share valuable insights from the Conference. This week, I thank Chad Barger, CFRE, Principal of Productive Fundraising, for highlighting the seminar “Relationship Fundraising: Where Do We Go From Here?”]

 

If you want to raise more money, stop showering all of your donors with love. That’s one of the key takeaways from the AFP International Fundraising Conference seminar “Relationship Fundraising: Where Do We Go From Here?”

I’ve been a longtime advocate for donor-centered fundraising. So, it might surprise you that I completely agree with that suggestion.

Chad Barger, CFRE, Principal of Productive Fundraising, attended the session and explores this key takeaway for us. Chad is a fundraising coach, consultant, blogger, and speaker. He is also a passionate arts advocate and raises vital support for the arts in his community as the Director of the Cultural Enrichment Fund (Harrisburg, PA). Here’s what Chad learned:

 

“Relationship Fundraising: Where Do We Go From Here?” was presented by a dream team of fundraising gurus: Adrian Sargeant, PhD; Ian MacQuillin; Jay Love; and Rachel Muir, CFRE — if you ever get a chance to see any of them live, do it.

The session reviewed research and case studies on the use and development of relationship fundraising since the concept was first introduced to the nonprofit sector in Ken Burnett’s 1992 book, Relationship Fundraising. There’s ample evidence that relationship fundraising works, and I think the modern fundraiser certainly knows this. It’s no surprise to us that building relationships with prospects and donors leads to more and increased donations.

RelationshipFundraisingHowever, my biggest takeaway from this session was that relationship fundraising and transactional fundraising can coexist in the same development shop.

Your first response might be, “Why would you want to do that? Every fundraiser worth their salary knows that relationship fundraising is the way to raise big dollars!”

Well, consider this: When we say that we only practice relationship fundraising, we are actually not being donor centric. The problem is that we are assuming that every donor wants to build a relationship with our charity. Unfortunately, this is not always the case.

Some donors give because they attended our event and they felt obligated to give more while there (e.g., the Fund a Need at the end of the live auction). Or, perhaps they gave because a friend asked and they couldn’t say no because that friend donated to their cause the month before. In both of these situations, the donor is happy to help out and make a donation, but they don’t really have a passion for your mission. The donation is simply a transaction to them. It’s not the first step toward a relationship like we fundraisers instantly assume.

It would be a lot of wasted effort to try to transform this transactional donation into a relationship. The donor simply doesn’t want it. The donor doesn’t hate you or think you’re a bad person; they just have a full life and our cause is never going to be a priority for them.

So, we as fundraisers need to get better at recognizing these transactional donors and stop wasting time and money trying to turn them into relational ones.

What’s the best way to do this? Easy … ask the donor what they want. A simple follow up phone call or email thanking them for their donation with an invitation to begin a relationship is all it takes. If they don’t respond (especially after a second prompt), then move them to the transactional side of the house. Still send them a thank you, prompt gift acknowledgment, and a report on the impact of their donation, but that is sufficient. Save the arsenal of cultivation tactics for donors who want a relationship with you and your organization.

Based on this newfound perspective, I’m now in the process of building out two different communication plans for my relational and transactional donors. While this initially seems like more work, I’m excited about the increased time that I will have to spend with my relational donors once I’m no longer chasing my transactional donors and hounding them for a visit. So please give it some thought and see if you too could benefit from stopping the chase and, instead, treating ALL of your donors the way they would like to be treated (not just your relational ones). After all, treating people the way they want to be treated is the core of donor-centered fundraising.

April 3, 2015

Whoopi Goldberg: “A Little Freakdom is Not Bad”

During her recent appearance at the 2015 AFP International Fundraising Conference, Whoopi Goldberg shared her thoughts about fundraising and how to inspire people to donate. At one point, the comedienne summed up her thinking on the subject with the simple line:

A little freakdom is not bad.”

In other words, dare to be different. Don’t be afraid to be creative.

As an example, Goldberg talked about fundraising galas designed to attract wealthy supporters. She pointed out that to get support, you have to be willing to give. She went on to say that while chicken might be an inexpensive dinner choice, gala goers are tired of chicken. She advised:

Less chicken! … Give them something they’re not expecting.”

When cultivating the support of donors, it’s important to differentiate your charity from others, particularly those with a similar mission. Doing something simple, and still inexpensive, such as serving Chinese food at a gala, can show people that your charity is different. It will also help people remember the event and the charity. For frequent gala goers, an unexpected, fresh menu will be a welcome change, according to Goldberg.

Whoopi Goldberg by Archman8 via FlickrYou can apply the same idea to all aspects of your interaction with donors.

Tom Hopkins, the sales guru, says, “Be different, but believable.”

Michael Kaiser, the arts consultant and former head of Kennedy Center, says, “Make giving fun.”

What all three of these folks are saying is that it’s important to be creative when working with people in order to stand out, to engage, and to make sure that the engagement is enjoyable. Doing so will attract and retain more support.

Think of the ways you can surprise your prospects and donors in a positive way. It doesn’t have to be Chinese food at a gala, as Goldberg suggested. But, think of what you can do. For example, you can surprise donors with a thank-you phone call after receiving their donations. You can invite new donors above a certain level to join you for a special behind-the-scenes tour. What can you do for your donors to bring a smile to their faces? It doesn’t have to be expensive to leave a positive impression.

Reflecting further on gala events, Goldberg says:

March 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. 

September 20, 2013

I’m Sorry

Eventually, we will all do something for which we need to apologize. So, it’s essential that we all know the right way to do it.

Unfortunately, one of my readers reminded me recently that many people find it extremely difficult to say simply, “I’m sorry.” She told me about a secular charity that had scheduled an event to be held during Yom Kippur, the holiest holiday for the Jewish people.

Sorry by butupa via FlickrIf the nonprofit organization with the bad scheduling sense was based in North Dakota, there might not have been much of a problem. However, the charity is based in Philadelphia, home to a large and philanthropic Jewish community.

Ironically, the organization’s mission honors an individual who pioneered religious and ethnic tolerance in America.

My reader emailed the charity to alert it to the conflict, to let it know she would not be attending this year despite having attended in the past, and to express her displeasure with the organization’s scheduling decision.

Here is the response my reader received via email:

The choice of this date was not meant to offend anyone or exclude anybody. This event has been held on this weekend since its inception. . . .

[We] apologize for any offense you may take from us scheduling these events on Friday and Saturday.”

Let’s closely examine the message.

Regardless of whether or not the organization intended to cause offense, it did. The scheduling mistake was either a result of outright intent or oblivious carelessness. By excluding an important part of its donor base for this once-a-year event, the charity caused offense.

The nonprofit organization further offended my reader by lying to her in the email response. The charity claims the event has been “held on this weekend since its inception.” However, as someone who has attended the event in the past, my reader knows otherwise. She documented for me that, in recent years, the organization has hosted the event on a variety of different weekends. Even if the organization’s statement were true, it’s still no excuse for failing to consider a different date.

The person who responded to my reader then concluded by apologizing “for any offense you may take.” That’s not an apology! It’s a deflection. With this statement, the organization has not taken responsibility for its actions. Instead, of taking responsibility for causing offense, the charity put the blame on the donor who took offense.

July 12, 2013

6 Ways to Run Your Fundraising Efforts Like an Ice-Cream Parlor

[PUBLISHER’S NOTE: Michael J. Rosen, CFRE will be presenting “How to Launch and Market a Planned Giving Program at Your Nonprofit,” a webinar for the Fundraising Authority on July 25. A podcast will be available following the webinar. To learn more and to register, click HERE.]

Based on the headline of this post, you might be wondering: “Why should I run my fundraising efforts like an ice-cream parlor?”

Fair enough. I might have ice cream on my mind because it’s been so consistently hot in Philadelphia this summer. While we’re not setting any local records, we’ve Little Baby's Ice Creamstill had more heat and humidity than I like. So, yes, my thoughts have been turning increasingly to ice cream. But, not just any ice cream. Great ice cream.

As I have thought about my favorite ice-cream place in Philly, Little Baby’s Ice Cream, I got to thinking that a lot of their philosophy could help nonprofits raise a lot more money from happier donors.

So, let me share six ideas inspired by Little Baby’s Ice Cream that can definitely enhance your fundraising efforts:

1. Give people what they want. On a typical day, Little Baby’s sells a dozen, or more, unusual flavors of super-premium dairy ice cream and non-dairy coconut-milk based “ice cream.” Some of the inventive flavors include: Cardamom Caramel, Coffee Toffee, Earl Grey Sriracha, Peanut Butter Maple Tarragon, Chipotle Chocolate, Balsamic Banana, and even Pizza flavor. Well, one day, I planned to buy some, but I also wanted to taste every single flavor they were offering.

So, I asked the gent behind the counter if I could have a taste of every flavor. He smiled at my enthusiasm, and told me it wouldn’t be a problem. Then, he started cheerfully serving up small spoonfuls of creamy heaven.

Contrast that with an experience I had many years ago at a TCBY frozen yogurt store. I told the person behind the counter that I wanted to buy a cone but was torn between two flavors. I asked for a tiny taste. I was told, “I’m sorry. It’s not our policy to give out tastes.” I responded, “Well, it’s not my policy to buy a frozen yogurt without knowing whether I’ll like it.” After a chilly but polite exchange, I walked away without buying anything, and I never again entered a TCBY store.

Here’s the take-away for charities: If it’s in your power and it costs little or nothing to make a donor’s wish come true, take advantage of the opportunity to put a smile on your donor’s face. It’s a great way to begin and build a relationship. The more often you can give prospects and donors what they want, the more likely they will be to feel good about your organization. If they feel good, they’ll be more likely to give, continue giving, and give more.

For some ideas about what donors want and don’t want, read my post “8 Valuable Insights from a Major Donor.”

2. Provide options. At Little Baby’s, they offer many flavors, both dairy and non-dairy. You can get your favorite flavor in a cone or cup. You can get it as a milkshake or ice-cream sandwich. You can even buy pints. You can eat in. You can take out. You don’t even have to go to their store; you can get their products at select retailers or at festivals the Little Baby’s cart attends.

When you provide options for your prospects and donors, you engage with them on their terms. You also give them a dimension of control that will make them feel more comfortable. So, give your prospects and donors choices. For example, on the “Contact” page of your website, allow folks to communicate with you via a form on the web page. In addition, give people the option of contacting you in other ways by providing your mailing address, email address, and phone number. By the way, provide the actual name of a person for them to contact as well.

Another way to give people options is to include your donation web page URL in your direct mail appeal along with a response envelope. Some people might prefer giving online rather than by mail.

While you certainly do not want to overwhelm people with too many choices, providing some options will make your prospects and donors more willing to engage. Be flexible and accommodating. People will appreciate it.

3. Be friendly. At Little Baby’s, my extreme request to taste every single flavor was met with a cheerful, friendly response. The guy behind the counter could Little Baby's Ice Creamhave rolled his eyes in annoyance, sighed at the extra effort required, or told me no. But, that’s not what happened. Instead, he appreciated my excitement and reflected it back.

This gave us the opportunity to talk about the product, how it’s made, where it’s distributed, and more. In other words, the staff’s friendliness created an environment to build our relationship. I felt so good about the experience that my wife and I even helped convince some retailers to carry Little Baby’s products.

Yes, donors can call us at inopportune times. Board members can be demanding. Prospects can be full of questions. But, these are not interruptions to our work. This is our work. If you’re friendly and helpful to your prospects and donors, they’ll reciprocate. Even if you’re dealing with an angry prospect or donor, simply being friendly and professional can sometimes be enough to soothe the person.

April 5, 2013

If You Don’t Care About Them, Why Will They Care About You?

A reader of Michael Rosen Says… recently contacted me with her/his own unfortunate experience with a nonprofit organization. S/he provided me with a copy of an email exchange s/he had with a theater company. I’m going to share this person’s story with you because it contains a worthwhile lesson about the importance of reciprocity.

Photo by Shira Golding via FlickrBefore I get to the story, however, I want you to know that I am editing the emails for brevity and any identifying information. I’m protecting the name of the theater company, the name of the Managing Director of the theater company, and the reader who contacted me because neither party knew, at the time, their one-on-one communications would find their way into the press.

From time to time, I write about the blunders that some nonprofit organizations make. I’ve done this, not to shame them, but so others can learn from someone else’s mistakes. It is much less painful if we learn from someone else’s missteps rather than our own.

The story begins when my reader — let’s call her/him “Sam” — received an email from a theater company. Sam, who had purchased two season subscriptions, immediately opened the email. The message promoted an interesting lecture by a well-regarded nonprofit leader in the community. The lecture dealt with leadership and tied-in with the company’s current play.

The event appealed to Sam. Just before clicking through to the organization’s website to accept the invitation and purchase tickets, Sam noticed the date of the lecture: Monday, March 25. Unfortunately, this meant that Sam would not be able to attend because that date was the first night of Passover, an important Jewish holiday.

Annoyed that the theater company would schedule a special one-time program on Passover, Sam wrote to the theater company:

Disappointing scheduling of an otherwise appealing, academic lecture.

So, add this to your discussion: Does a good (nonprofit) leader ‘dis’ a large portion of the region’s top arts patrons through thoughtless event scheduling?

We’ll be celebrating first Seder.

We really would have enjoyed hearing the address on this topic. The speaker is a dynamo.

Sam”

The theater’s Managing Director responded the next business day. This was very good. The Managing Director did the smart thing by responding soon after receiving the complaint:

Dear Sam,

Thanks very much for writing. I’m very sorry for the scheduling inconvenience. We truly do our best, but we present special events all season long and it is not possible to avoid all holidays on the calendar. For example, this event takes place on the first night of Passover, we have a performance of XXXXXXX on Easter, etc.

If you’re interested in history, I hope you’ll consider joining us for the talk on Monday, April 1 with ZZZZZZZZ. He’s truly fantastic.

All best,

Fran”

The response was good in three ways:

1. A high-level person sent an immediate, personal response.

2. The message contained an apology.

3. The author suggested another program that the individual might enjoy.

Unfortunately, the goodwill these positive points might have earned was largely negated by the defensive and dismissive tone of the email. Sam responded:

March 29, 2013

What Can Your Nonprofit Learn from a Fortune Cookie?

Have you ever had a Thai fortune cookie?

Until recently, I never even knew they existed. Over the years, I’ve eaten more than my share of Chinese fortune cookies. However, I had never experienced the Thai variety.

Thai Fortune CookieBefore anyone comments below, let me just say that I’m completely aware that Chinese fortune cookies are not really Chinese. They’re Chinese-American with possible Japanese roots. As for Thai fortune cookies, I have no idea where they were invented. But, they’re certainly tasty. They’re crunchy, flaky, light as air, toasted coconut goodness in the form of a little tube wrapped around a parchment-like fortune.

Anyway, my wife brought some Thai fortune cookies home one evening. While I was enjoying one of the cookies, I read the fortune it had contained:

Feeling gratitude without expressing it, is like wrapping a gift without giving it.” 

I immediately recognized that my cookie contained a valuable lesson for all nonprofit organizations. If we want to build strong relationships and secure passionate philanthropic support for our  organizations, we must thank our supporters and show gratitude.

I know you’re grateful when someone gives your organization money. But, beyond a simple thank you letter, do you do anything to show your gratitude?

Henri Frederic Amiel, a 19th century philosopher and poet, commented on the difference between thankfulness and gratitude:

Thankfulness is the beginning of gratitude. Gratitude is the completion of thankfulness. Thankfulness may consist merely of words. Gratitude is shown in acts.”

Some nonprofit organizations do a better job than others when it comes to expressing gratitude. Unfortunately, as a sector, we have a long way to go. We can and should be doing much more.

%d bloggers like this: