Posts tagged ‘#DonorLove’

August 24, 2018

What is the Most Important Thing You Can Learn from Recent Nonprofit Scandals?

Recent incidents at Michigan State University, The Ohio State University, Oxfam Great Britain, The Presidents Club Charitable Trust, Silicon Valley Community Foundation, and elsewhere remind us that the nonprofit sector is not immune to wrongdoing and scandal.

If you’ve never worked for a charity reeling from scandal, there’s a good chance you will one day. Even if you don’t work directly for a scandalized charity, you could still be affected by a loss of public trust if a similar nonprofit finds itself under the spotlight for misdeeds.

For those reasons, it is essential that you learn the most important thing about how to survive a scandal.

Three broad types of scandals can affect a nonprofit organization negatively:

1. Self-inflicted scandals beyond your control. Here’s an example of a situation that was beyond the control of fundraising staff. Oxfam Great Britain was banned from operating in Haiti and the organization’s country director was forced to resign following allegations of inappropriate sexual behavior. Four other employees were fired for “gross misconduct.” While the frontline fundraising staff was not at all involved in the scandal itself, they nevertheless had to deal with the aftermath.

2. Self-inflicted scandals you could have avoided. We saw this when the Ohio Attorney General’s Office accused the charity Cops for Kids of defrauding donors of $4.2 million. Of all the money it raised over a 10-year-period, the charity spent less than two percent on charitable programming. This scandal allegedly involved fundraising staff as well as senior staff engaging in fraudulent behavior. The solution to this type of scandal is simple: Do not misbehave. Obey the law and adhere to the Association of Fundraising Professionals Code of Ethical Standards, the International Statement of Ethical Principles in Fundraising, and/or your nation’s own fundraising code of ethics.

3. Guilt-by-similarity scandal. People in Scotland experienced this several years ago. A cancer charity was embroiled in a well-publicized scandal. As expected, that charity saw a sharp decline in contributions. However, there was also an unpleasant, broad side effect. Completely unaffiliated cancer charities in Scotland also experienced a deep drop in donations resulting from broad public mistrust of all cancer charities. It took the innocent charities nearly a year to recover even with a coordinated campaign to restore public confidence.

Other than avoiding problems in the first place, always a good idea, what can you and your organization do to ensure it can survive a crisis or scandal?

The answer is simple, though the execution is not: Build strong relationships with donors. It takes effort, financial resources, and time. However, it’s an investment well worth making.

Recently, a reporter for The Columbus Dispatch contacted me. Rob Oller sought my commentary about the scandal involving Urban Meyer, The Ohio State University football coach. You can read about the situation on your own since there’s no need for me to get into the details here. Suffice to say that the coach has received a three-game suspension, but not before Bob Evans Restaurants withdrew its corporate sponsorship of Ohio State football.

Oller asked me about how scandal affects charitable giving. I told him, “It depends on the institution and quality of the relationships with its donors over time. The stronger the relationships the more likely the institution is able to weather the controversy.”

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February 14, 2018

How to Get Last Year’s Donors to Give More this Year

Showing donor love and asking for more money should not be mutually exclusive activities. Inspiring upgraded support requires both to work hand-in-hand.

Unfortunately, for many nonprofit organizations, stewardship is the poor stepchild of the fundraising process. It is often ignored or poorly implemented. It is usually an underfunded activity. As a result, donor-retention rates for the nonprofit sector are pathetic.

Development professionals who think about stewardship usually believe that it is something sandwiched between when a gift is received and the next appeal. In other words, stewardship and fundraising are separate functions. However, Joe Garecht, President of Garecht Fundraising Associates and Editor of The Nonprofit Fundraising Digest, believes that the next appeal is actually an integral part of a robust stewardship process. An upgrade appeal will not achieve maximum success without sound stewardship. Done well, an ask is an extension of the stewardship process.

Joe’s thinking makes sense. If we love our donors, why would we want to deny them the satisfaction of continuing to support a cause they care about? Why would we want to deny them the opportunity to make a larger commitment? Helping donors to continue feeling good about continuing to do good is part of good stewardship.

We want our donors to feel important, feel needed. One way to do that, is to ask and to ask for more than they gave last year. However, we shouldn’t make an upgrade appeal in a vacuum.

It’s not just about asking. As Joe explains in his guest post below, it’s about incorporating the ask into a sound stewardship system so that the upgrade appeal is a natural evolution of our relationship with the donor. Stewardship and asking are not separate activities; they part of a cohesive system.

I thank Joe for sharing his stewardship insights and his four-step strategy for asking for donation upgrades:

 

One of the most important fundraising systems you can build at your nonprofit is an effective donor stewardship strategy. Donor stewardship starts with thanking your donors for their gifts… but is much more than that.

There are three main goals for your donor stewardship system:

  1. Donor Retention: You want to make sure that your donors keep giving year after year.
  2. Referrals: You want your donors to introduce you to their friends and colleagues who also might want to get involved with your organization.
  3. Donor Upgrades: You want your donors to give more this year than last year, and to move to major gifts and planned giving, if they have the capacity to do so.

In this article, we’re going to take a look at that third goal. We’re going to answer the question, “How can you get your current donors to give more this year than they did last year?” To understand how to best upgrade your donors, we’re going to first explore why donors make the decision to upgrade, and then review a simple, four-step strategy for getting your donors to upgrade this year.

Understanding Why Donors Upgrade

If you want to successfully solicit your donors to give more this year than they have in the past, it is important to understand why donors decide to upgrade their gifts:

Donors upgrade because they have been stewarded effectively.

The most important reason why donors upgrade is because they have been properly stewarded. This means that your nonprofit has appropriately thanked and recognized them for their past gifts, and has continued to build a relationship with them. Your donors want to feel like they are an integral part of your team. They want to feel appreciated, valued, and heard.

If you are treating your donors well, keeping them updated on your work, seeking their advice and input, and reporting on outcomes in between asks, your donors will be far more likely to upgrade their gifts. If your donors are investing their emotional energy, knowledge, and time in your work, then upgrading their financial investment will be the next logical step.

Donors upgrade because you are casting a big vision.

One of my favorite maxims in fundraising is this: Donors don’t make big gifts to small visions. Your donors want to change the world. They want to make a difference. If you are not casting a big enough vision, your donors will make their big gifts elsewhere, investing in organizations and companies that are.

Every nonprofit can cast a big vision…even small, local organizations working in one small corner of the world. Start by asking yourself, “How are we changing the world? How are we changing lives? How are we saving lives?” Your answers to these questions will help you think through the real impact of your work. If you want your donors to give more this year than they ever have before, you need to cast a bigger vision this year than you ever have before.

Donors upgrade because they are asked to upgrade.

Donors only upgrade when you ask them to do so. Very few donors will upgrade their gifts without being asked.  Thus, if you want your donors to give more this year than they did last year, you need to go out and ask them to do so. While the majority of your stewardship system should be focused on cultivation, asking for donations from current donors (including renewals and upgrades) is an essential part of the fundraising cycle.

In order to be successful, the upgrade process should be systematic. This means that you shouldn’t ask for upgrades here and there, whenever the whim strikes you. Instead, you should have a defined plan in place to review your donors’ capacity and ask them for upgrades as often as appropriate.

How to Ask Your Donors to Upgrade

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March 5, 2016

Gallup Poll: Donors Not Feeling the Love

The most recent “Health and Well-Being Survey” conducted by Gallup provides alarming insight about the effectiveness of nonprofit donor recognition efforts.

Among those surveyed, 81 percent say they have donated money to a charity within the past year. In addition, 52 percent of survey respondents say they have volunteered their time during that same period.

Given the high-level of engagement, Gallup wanted to determine whether survey respondents were “feeling the love and received recognition for their efforts to help improve the city or area where they live.” Unfortunately, the findings are disturbing:

•  Only 15 percent of respondents agreed with the The Applause by Rachael Tomster via Flickrstatement “In the last 12 months, I have received recognition for helping to improve the city or area where I live.” This includes 5 percent who “Strongly Agreed” and 10 percent who “Agreed.”

•  Conversely, a whopping 69 percent of respondents disagreed with that same statement, including 45 percent who “Strongly Disagreed” and another 24 percent who “Disagreed.”

There are a few things that might explain the disconnect between the philanthropic/voluntary involvement of survey respondents and the recognition they received, or didn’t:

1.  Many of the respondents may have donated or volunteered for non-local causes. For example, donors may have given to alma maters in a different geographic region. Alternatively, donors may have given to or volunteered with national or international charities.

2.  Survey respondents might not think of their giving or volunteering as “[helping to] improve the city or area where they live.” For example, if one gives to a local animal shelter, she might think of it as helping the kittens and puppies but not necessarily think of it as improving the community.

3.  Survey respondents might not fully understand the definition of “recognition.” For example, some donors might think of “recognition” as being profiled in the local newspaper because of their philanthropic efforts. Other donors might think of “recognition” as being honored with a plaque at a special event. Others might think “recognition” means receiving a t-shirt. Still others might think of “recognition” as a well-written thank-you letter.

If the disconnect between giving/volunteering and recognition was small, I wouldn’t be too worried; the disconnect could be explained. However, the disconnect revealed by the survey is massive. Even allowing for a large margin of error for the reasons I’ve just outlined, I suspect we’d still see a significant #DonorLove gap.

Considering the anemic donor-retention rates throughout the nonprofit sector, I’m even more convinced that Gallup has uncovered a legitimate concern. As a statement from Gallup says:

It seems most communities and organizations are missing an opportunity to validate donation and volunteer efforts by recognizing those who offer them.”

Here are just some of the things you can do to ensure your donors and volunteers feel appreciate:

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