Posts tagged ‘engage’

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 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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