Posts tagged ‘fundraising’

December 10, 2019

To Raise More Money, Look for More Engagement Opportunities

Smart nonprofit professionals know that fundraising success involves much more than simply asking for money. You need to identify prospective supporters, educate them, cultivate them, then ask for support, and finally steward your donors. An essential, often neglected, aspect of cultivation is engagement.

Sadly, many nonprofit organizations think of donors as piggy banks or ATMs dispensing money. Those charities tend to assume that charitable giving is, by its very nature, transactional. They further assume that low donor retention rates are just the way things are. Those organizations are correct … regarding themselves.

By contrast, nonprofits that treat prospects and donors as partners are more likely to attract support. Furthermore, they are more likely to retain and upgrade donors over time. One way to establish a partnership with people is to engage them in meaningful ways.

So, what does meaningful engagement look like?

PTC’s See & Be Scene Event.

For decades, I’ve been a fan and supporter of the Philadelphia Theatre Company. Recently, my wife and I were invited to attend “See & Be Scene: A Sneak Peek at the 2020/21 Season.” The event involved readings from eight plays under consideration for the upcoming four-play season. Subscribers and donors were invited to attend for free while the general public could purchase tickets at $15 each.

Through the event, PTC accomplished three important things:

  1. PTC expressed gratitude to its ticket subscribers and donors.
  2. Staff gained useful audience feedback that will help them select the plays of greatest potential interest to PTC’s audience.
  3. By giving them a real voice, PTC made its supporters feel like partners.

At intermission, I had the chance to quietly ask Paige Price, Producing Artistic Director, what she and the staff were hoping to get out of the program. She told me that they were interested in audience feedback. They wanted to know what people thought of each option, what they liked and didn’t like. They also wanted to be able to address any questions the audience might have about the upcoming season or the theatre company itself.

I also had the opportunity to speak privately with one of PTC’s board members. I asked him the same question I asked Ms. Price. He gave me a similar answer. Then, I mentioned that the event was a great way to cultivate ticket subscribers and donors. While he acknowledged it was, he told me that the primary purpose of the gathering was the opportunity to engage the audience and learn their thoughts about plans for the upcoming season.

I believe what I was told. PTC used the program to build a genuine partnership with people. Judging from the audience response, PTC succeeded with those in attendance. During the discussion session following the readings, one audience member said, “I think next season we should perform…” Someone else began her comment by saying, “As a member…” Clearly, at least some people in the audience did indeed see themselves as partners with PTC.

Another way that PTC seeks to engage theatregoers can be found in the lobby. A large sign invites people to make suggestions:

Have an idea? We want to hear from you.”

PTC’s Call for Suggestions.

People can take a card or use their ticket to write down their suggestion. They can submit it anonymously or include their phone number or email address so that PTC can respond.

With the “See & be Scene” program and with the request for feedback and suggestions, PTC engages people. Even those who do not take advantage of either opportunity will appreciate having had the opportunity to be heard.

Part of what makes the PTC engagement initiatives effective is that they are sincere efforts to build partnerships rather than cynical, manipulative gestures. By building meaningful partnerships, PTC will likely continue to develop a loyal base of ticket buyers and donors.

Engagement efforts that are sincere and true to an organization’s mission are most likely to be seen as meaningful. And they are most likely to build partnerships that lead to loyal support. While performing arts organizations have a number of obvious ways they can engage people, other types of nonprofit organizations may find it more challenging to do so.

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December 5, 2019

With #GivingTuesday Behind Us Here’s What You Need to be Thinking About

Ahhhhh! Once again, it’s safe for us to open our mailboxes and email inboxes. The same is true for charity donors. Giving Tuesday 2019 is behind us.

Now what?

Well, over Thanksgiving weekend, I sent out a cartoon via Twitter that got me thinking. It also caused a reader and friend to suggest I blog about it. So, here it is, the cartoon and my post about what the cartoon suggests for us in our post-Giving-Tuesday professional lives.

In the cartoon, the child at the Thanksgiving table asks, “Why aren’t we this thankful every day?” It’s a great question for us to ask both our personal and professional selves.

As a fundraising professional, you should adopt a thankfulness, or gratitude, mindset. You’ll be happier and healthier as will the people around you. Let’s be thankful every day. Allow me illustrate what I mean.

How do you feel when you receive a phone call from a donor while you’re busy writing your next direct-mail appeal or preparing your development report for an upcoming board meeting? Are you annoyed that the donor has interrupted you with a silly question that she could have answered for herself by visiting your organization’s website? Or, are you grateful for the donor’s support and happy to provide direct service to her in a personal conversation that you didn’t even have to initiate?

That’s just one example. But, I think you understand my point.

When you and your organization truly appreciate your supporters, you’ll look for ways to thank them, show them gratitude, and engage them in meaningful ways as part of your normal routine. This is essential for all of the folks who support your organization; it’s especially true for the new donors you acquired on Giving Tuesday. If you want to retain more donors, upgrade the support of more donors, and receive more major and planned gifts, you need to show contributors the appreciation they deserve.

Henri Frederic Amiel, the 19th century philosopher and poet, once said:

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

As a thankful fundraising professional, you will:

  • Provide a thank-you message to every donor.
  • Send a thank-you letter immediately, within days of receiving a gift.
  • Show supporters you care about them, not just their money.
  • Ensure that your communications are meaningful for your supporters.

As a general rule, you’ll want to look for ways to thank each donor seven times. For example, here are seven ideas for how you can thank a supporter:

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November 26, 2019

Is One Charity about to Make You Look Bad?

The Charities Aid Foundation of America might have made your nonprofit organization look bad last year. Warning: They’re about to do it again!

Let me explain.

If you’ve sent your year-end appeal, written a solid thank-you letter series, and prepared a donor-engagement plan, you might believe you’ll be all set to take a holiday break between Christmas and the New Year. If that’s what you’re thinking, you’re not alone. Many charities operate with a skeleton staff between the holidays while others shutdown completely.

However, while many nonprofit organizations wind down in the closing weeks of the year, many donors are gearing up their philanthropic activity. Many donors make their philanthropic decisions at the end of the year, often in the closing days of the year. While the current federal tax law means fewer people itemize their deductions when filing their taxes, many of those people still make late year-end charitable gifts. Furthermore, many wealthy people who do itemize will wait until the closing days of the year before making their philanthropic gifts.

Some of your year-end donors will have questions. They may wonder about the best way to give (i.e., cash, appreciated stock, Donor Advised Fund recommendation, etc.). Others may have questions about your organization’s programs and areas of greatest need. Still others may simply need to know the formal name of your organization to put on their check.

If individuals with questions are unable to reach you for answers, they may not give or they may give elsewhere. This is something CAF America understands.

Last year, Ted Hart, ACFRE, CAP, President & CEO of CAF America, sent an email wishing donors a happy holiday and announcing his organization’s extended holiday hours. Not only would someone be available throughout the holiday season, staff would be available until 8:00 PM EST, well beyond standard business hours. Hart provided an email address and phone number. The email encouraged recipients to reach out if they needed any help or had any questions. You can find a copy of Hart’s email message and my detailed analysis of it by clicking here.

Underscoring his organization’s donor-centered orientation, Hart concluded his message by writing:

It is our pleasure to be of service to your domestic and international philanthropy on a timetable that suits you best.”

Hart’s email let supporters know that the organization is there to meet their needs on their terms. Even if they didn’t need to contact the organization as December 31 approached, they still appreciated knowing that the organization cared enough about them to remain accessible.

Based on the response to last year’s extended hours, CAF America will be doing the same this year beginning December 9. Hart explains, “We had many donors who made use of the extended hours. Many are very busy during the holidays and regular business hours do not always support busy holiday schedules.”

By comparison with CAF America, does your organization look good or bad as the year comes to a close?

I’m not suggesting that you need to stay at your desk through the end of the year. However, I am suggesting you remain accessible. Fortunately, technology allows you to be reachable without having to remain in the office. For example, you can set email alerts on your cell phone. Also, you can forward your office calls to your cell phone. So, whether or not you remain in the office, you can still be available to individuals contemplating a donation to your organization.

If, like CAF America, you let people know that you will remain available, you’ll be showing them that you care about them. Your organization’s supporters will appreciate the extra effort you make to be of service even if they don’t have any year-end needs.

At this time of year, the public expects to be inundated with charity appeals seeking support. What people do not expect is a message offering good wishes and service. So, pleasantly surprise folks this holiday season. Show individuals you care about each of them by letting them know you’re there for them. Offer them assistance. Give them an opportunity to engage. Provide useful information.

To determine if your organization is donor centered as the year draws to a close, ask yourself these questions:

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November 21, 2019

Are You Making This Big Mistake When Mailing to Donors?

As the Thanksgiving holiday approaches in the US, a conversation on Twitter caught my eye. I recently read a pair of tweets from two charity donors that made me want to scream. I must share what I read about how they were thanked for their support. I hope it keeps you from making the big mistake that the donors describe.

After nearly four decades as a fundraising professional, not much about the nonprofit sector surprises me. However, every so often, I still come across an item that stuns even me. The Twitter conversation between The Whiny Donor and Meghan Speer provides an illustration of this:

https://platform.twitter.com/widgets.js

After making a donation, Whiny received a thank-you letter from the charity she supported. The envelope was addressed to her and “or Current Resident.” Speer contributed to another charity. As a supporter, she was invited to attend a donor thank-you event. The invitation was addressed to Speer and “or Current Resident.”

Both donors were annoyed at how the mailings were addressed. Speer wrote sarcastically, “…makes me feel super appreciated.”

For her part, Whiny demanded, “Spend enough on postage, or we’ll let some other resident donate the next time around.”

I never would have guessed that this was a problem. Apparently it is.

Who can blame Whiny or Speer for being annoyed? When someone supports your organization, they feel good about helping to achieve its mission. As a fundraising professional, part of your job is to help donors continue to feel good about their decision to support. With a proper thank-you letter, relevant information, and meaningful opportunities for engagement, you can help preserve and even build that warm feeling. If you properly steward your donors, they’ll be more likely to renew their giving, upgrade their support and, possibly, make a planned gift. Conversely, if you fail when it comes to stewardship, you risk alienating your donors.

They gave you money. They already like you. Don’t give them a reason not to.

Addressing a thank-you letter or donor-appreciation event invitation to “or Current Resident” is a certain way to make donors feel less than special and less than valued by you. If Whiny and Speer are put off by such addressing, you can bet other donors are as well.

So, why do some nonprofit organizations do this?

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November 15, 2019

Fundraising Reality Check: 5 Things You Need to Know

A number of myths continue to persist in the fundraising world. While I can’t debunk all of them here, I can deliver a reality check for five important items that I’ve encountered recently when talking with fellow fundraising professionals:

Myth 1: Most People Do Not Own Stocks

Reality Check: The fact is that a majority of Americans own stocks in one form or another. Gallup found that 55 percent of Americans have stock market investments. The greater one’s income, the more likely they are to own stock.

While the stock markets remain volatile, they continue to set new records. In other words, many charity donors own appreciated securities. Under the current federal tax code, anyone can benefit by contributing appreciated stock to a nonprofit organization. That’s because donors of appreciated stocks can avoid paying capital gains tax even if they are non-itemizers who take the standard deduction.

If you’re not asking your prospects and donors to donate appreciated securities, you’re not serving them well and you’re missing out on donations that could be quite significant. So, be sure to let people know that your organization accepts stock gifts, what the benefit is to donors of contributing stocks, and how they can gift stocks.

Myth 2: Giving Tuesday Will Help You Raise Tons of Money

Reality Check: I’m not opposed to #GivingTuesday. My problem with it is that many charities invest an amount of staff and budget resources that will never be justified by the return. In 2018, US charities raised $380 million, reports the Nonprofit Source. For perspective, that’s just 0.089 percent of overall philanthropy for the year. Furthermore, while 63 percent of Giving Tuesday donors give only on Giving Tuesday, we really don’t know if that’s a correlation or a causality; many of those donors might have given anyway on another day.

If you’re going to implement a Giving Tuesday appeal, do it the right way:

  • Have realistic expectations and invest resources accordingly.
  • Remember that a date on the calendar is not a case for support. Don’t ask people to give to your organization just because it’s Giving Tuesday. Let them know what problem their gift will address.
  • Have a thank-you and stewardship plan in place if you want to retain and eventually upgrade Giving Tuesday donors.

Myth 3: Charities Can Ignore Donor-Advised Funds

Reality Check: Okay, charities can ignore Donor-Advised Funds. However, they should not. DAFs accounted for 12.7 percent of overall philanthropy in 2018 compared with just 4.4 percent in 2010, according to The National Philanthropic Trust’s The 2019 DAF Report. In other words, DAF grant payouts totaled $23.42 billion. Total DAF charitable assets were $121.42 billion and climbing. The number of DAF accounts in 2018 was 728.563, a 55.2 percent increase over 2017.

The simple fact is that DAFs continue to grow in significance year after year. More and more donors are creating DAFs. You need to make it easy for people to recommend grants to your charity. You need to properly steward DAF donors and those who recommend DAF grants. You need to keep track of which of your supporters has established a DAF. You need to remind people that, if they have a DAF, they can recommend your charity for a grant.

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November 12, 2019

A Pro Baker Knows 3 Things that will Help You Raise More Money

Chef Stefan Zareba is an award-winning baker and successful businessman. His tasty, artistic creations have impressed visitors at leading resorts around the world. My wife and I recently met Zareba, and learned three keys to his success. Interestingly, those three things can also help you be a more effective fundraising professional.

My wife and I recently spent a few days relaxing at the New Jersey shore. Beautiful weather and the Monarch Butterfly migration made our visit special. At the suggestion of a family member, we visited Blue Dolfin Sweets, a European bakery in Marmora, NJ. When we entered, Zareba greeted us as if we were regulars despite it being our first visit.

When Zareba saw that we were a bit overwhelmed by our options, he began offering us free tastes. When I remarked about the intense flavors, Zareba shared his baking philosophy. He believes in using carefully sourced, natural or organic ingredients. His flour comes from Minnesota, his chocolate from Belgium, his fruits from farmers he knows, his butter from Europe. At the Blue Dolfin, you won’t find agave syrup, high-fructose corn syrup, or chemicals and artificial additives.

Zareba believes pure, wholesome ingredients produce products, when crafted with skill, that taste better. He’s right. Not only do his creations taste better, the flavors he produces are more intense and bright than you would ever experience from a bakery chain.

So, here is what I learned during my visit with Chef Stefan that can help you:

Intense Passion. Zareba spoke with my wife and me as if we were the first customers he had seen that day. As it was well into the afternoon, I know that definitely was not the case. Nevertheless, Zareba was energetic, friendly, and helpful. He patiently answered our questions, and told us about himself and his baking experience. That’s how we learned about his baking philosophy. Seeing someone so passionate about his work was remarkable. I don’t know quite how to make my point vividly. Let me try this. Instead of simply selling baked goods, Zareba shares his creations. Moreover, when he sees you enjoying a bite, he smiles with his entire being.

Do you have that kind of passion for your organization and its mission? Do you believe that your organization is the best at what it does? Are you proud to work for your organization? If you’ve answered “yes” to each of those questions, do you convey that feeling to those with whom you interact?

In many cases, prospects and donors will take their cues from you. If they sense that you have lukewarm feelings for your charity, they likely will as well. However, if they sense your passion, they may very well be more receptive to your appeal.

Years ago, I co-owned a pioneering phone fundraising company, The Development Center. Over the years, we employed some callers who did just about everything wrong despite trying their best. They got tongue-tied when talking with prospects. They had difficulty handling questions and objections. They were awkward. A casual observer would think we should have terminated those callers. However, we didn’t always do that because a distinguished few were extremely successful. What made them successful fundraisers, despite their shortcomings, was their passion for the organizations they represented. Their passion was infectious. When prospective donors heard how passionate these callers were, they became excited about the mission and became supporters.

Passion cuts both ways. If you do not passionately represent your organization, alarm bells will go off in the minds of those you contact. Conversely, if you exude passion for your organization’s mission, that enthusiasm will be infectious and excite others.

Superior Skills. Unfortunately, passion alone will seldom lead to success. For Zareba, years of training and working in some of the top kitchens around the world developed his skills. When looking at his display cases, you can see the result. He turns out a huge variety of confections. In addition, he renders each beautifully. His wedding cakes are works of art.

The framed newspaper and magazine articles mounted on the bakery wall attest to Zareba’s skills and the awards he has earned. He’s a world-class baker who, thankfully, has chosen to make his home in a small town in New Jersey.

As the number of nonprofit organizations grows, there is increasing competition for philanthropic support. It’s unlikely that your charity is unique. More likely, there are other nonprofits with similar missions. To attract, retain, and upgrade support for your organization, you need to have well-honed skills. Good enough is not good enough. You need to work continually to enhance your skills. You need to master the fundamentals while remaining receptive to the right fresh ideas. You need to continue your education by attending conferences, participating in webinars, reading books and blogs, and more.

Music experts have long regarded Pablo Casals as the world’s greatest cellist. When he was about 80 years old, Casals agreed to be the subject of Robert Snyder’s short documentary movie. The filmmaker asked why Casals continued to practice playing the cello four to five hours each day. Casals replied, “Because I think I am making progress.”

The fact that the world’s greatest cellist continued to hone his skills late in life is a great example for the rest of us. As professionals, we have a responsibility to always strive to enhance our own skills. The more effective you are, the more support you will be able to attract for your organization. That means, depending on your organization’s mission, more lives saved, more people better educated, more spirits uplifted.

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November 8, 2019

3 Election-Inspired Tips for More Powerful Fundraising

Nonprofit fundraising professionals can learn three powerful tips from the US presidential candidates that will help inspire greater support.

Now that the November 2019 elections in the US are behind us, the media and the public will focus their attention increasingly on the 2020 presidential race. As the campaign for The White House heats up, there are already things you can glean from this election season that will help you and your charity.

Fox News recently interviewed pollster Frank Luntz about how the candidates are communicating their messages. Regardless of how you feel about the network or the researcher, you can pick-up great communication insights from them.

Specifically, Luntz shared what he believes to be the three elements of powerful, persuasive communications:

1. Credible. It’s not enough for a message to be true. It must also be believable. When sharing stories about those your charity helps, you might choose to highlight a less dramatic, but more believable example, rather than one that is extreme but that might invite suspicion. Or, if you do share a story that stretches belief, you might want to cite a third-party source (i.e., a published news report). In a mailing or face-to-face visit, for example, you could even provide a newspaper clipping that supports the story you share. When citing statistics, providing the source can lend credibility.

In one of her presidential campaign ads, Sen. Elizabeth Warren highlights her unexpected victory over incumbent Sen. Scott Brown in 2012 to demonstrate her political skill and her ability to surprise the pundits. In one of his campaign ads, former Vice President Joe Biden cited a number of polls to support his claim that he is the best positioned Democrat to unseat President Donald Trump. In other words, both candidates sought to establish credibility by documenting their claims.

If recipients of your message don’t believe it, they’ll dismiss it. You’ll lose the opportunity to cultivate, engage, or generate support. While your message needs to standout and capture attention, it has to be believable.

2. Memorable. To be effective, messaging must be memorable. By definition, successful education or cultivation requires a lasting impact. If someone receives your direct-mail appeal and sets it aside to deal with later, they’ll only respond if they remember it and remember what moved them. If someone sees an advertisement for your cause, they won’t talk about it with friends unless they remember it.

In one of Trump’s campaign ads, the narrator says, “Mister Nice Guy won’t cut it. It takes a tough guy to change Washington.” Luntz asserts that the “Mister Nice Guy” line combined with the images of Trump looking tough result in a memorable ad. The rhetoric is unusual for a political ad while being in alignment with the candidate’s image. By contrast, the Biden ad that talks about his ability to beat Trump uses footage that, for the most part, doesn’t support the narration and, instead, features bland, standard political glad-handing images. By contrast with the Trump ad, the Biden commercial is less memorable.

The most effective messages are the ones that are memorable. Words and images must support one another to maximize effectiveness.

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October 29, 2019

Raise More Money When You Avoid the 7 Deadly Sins of Fundraising

Fundraising success depends on having a good cause. It also requires that fundraisers do things the right way. But, none of that is enough. To successfully raise money, fundraisers must also avoid making costly mistakes, either unknowingly or (and you would never do this, right?) knowingly.

Making mistakes can cause your organization to lose donors and have a difficult time finding new ones. In some cases, one charity’s mistakes can harm the reputation of the entire nonprofit sector causing even innocent organizations to lose support.

Philanthropy researchers have shown us that the more someone trusts a nonprofit organization, the more likely they are to give. Furthermore, the more they trust a charity, the more money they are likely to donate. A report issued by Independent Sector stated:

The public is demanding a greater demonstration of ethical behavior by all of our institutions and leaders ….To the extent the public has doubts about us, we shall be less able to fulfill our public service.”

In short, trust affects both propensity for giving and the amount given. Those who have a high confidence in charities as well as believe in their honesty and ethics give an average annual contribution of about 50 percent more than the amount given by those sharing neither opinion.

You can read more about the research into trust and philanthropy in an article I wrote a number of years ago for the International Journal of Nonprofit and Voluntary Sector Marketing.

For the Association of Fundraising Professionals Ethics Awareness Month,  I wrote a feature article for the October issue of Advancing Philanthropy magazine: “Ethics, Fundraising, and Leadership: Avoid the Seven Deadly Sins of Fundraising.” As I pointed out:

You’re a good person. At the very least, you try to be a good person.

However, that’s not good enough. Effective fundraising demands more of us. Every action we take, no matter how small or large, has the potential to build or erode public trust, which could have a corresponding impact on philanthropic support.

Among other things, being a fundraising professional means you must always strive for excellence while avoiding missteps that could have costly consequences for you and/or your organization. Fortunately, you do not have to endure risky mistakes to learn from them. Instead, thanks to media headlines, you can learn from the mistakes of others.”

In the AFP article, I discuss seven missteps made by real charities. While there are certainly more than seven deadly fundraising sins, my article highlights common issues of concern. For example, conflicts of interest was rated among the top ethical concerns of fundraisers, according to a recent AFP survey. In my article, I explore this issue citing a real-world example:

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October 25, 2019

Do You Want to Know the Latest, Greatest Fundraising Idea?

When I’m invited to speak at professional gatherings, I’m asked frequently to talk about the latest, greatest ideas that will help nonprofit organizations raise more money. I’m never surprised. For many years, I’ve talked with fundraising professionals who attend conferences, participate in webinars, and read publications in a grand quest for the new shiny idea that will result in massive fundraising growth.

Recently, I read some tweets from three fundraising experts related to the search for fundraising’s Holy Grail. While these colleagues and I all embrace innovation, we also share a common belief about what will allow fundraising professionals to be more successful immediately. Here it is:

Master the fundraising fundamentals.

Here’s what T. Clay Buck, CFRE; Andrew Olsen, CFRE; and Tom Ahern all tweeted this month:

Let me demonstrate what I mean by “master the fundamentals.” In a planned-gift marketing seminar I presented a few years ago, I shared a variety of ideas for promoting planned giving. I knew I had a diverse audience, so I provided both simple and sophisticated ideas. While my suggestions were certainly not revolutionary, some of them did push the envelope of current practice.

Following my talk, a fellow came up to me and said, “You didn’t say anything I didn’t already know.” Ouch! That’s not the feedback I like, even if it was just one person’s opinion. I always want everyone to come away from my seminars with at least one terrific idea.

After receiving the stinging feedback, I said to the man, “I’m sorry to hear that you didn’t get any fresh ideas. However, I’d love to hear about how you’ve used the phone to market bequests.”

He replied, “I haven’t implemented a phone program.”

“Ok, then tell me how your direct mail campaign has done,” I requested.

“I haven’t done a planned gift mailing,” he responded.

“Ok, then tell me about your website and how it allows you to track and rate visitor interaction,” I requested.

“Our website isn’t that sophisticated,” he said.

The conversation continued in that vein. The point is that this fellow knew what he should or could be doing, but he was not doing it! He had not fully embraced the fundamentals of planned-gift marketing yet he was searching for new ideas, a planned giving Holy Grail. If he would simply implement one of the ideas I had talked about, his planned giving results would have been much stronger.

The fundamentals matter. To be successful, fundraising professionals need to learn the basics and embrace them. Doing so could add up to billions of dollars for the nonprofit sector.

Do you want more money for the annual fund? Then tell me, do you have a monthly donor program? Do you do second-gift appeals? Do you do targeted upgrade appeals? Do you effectively steward gifts to ensure a high donor-retention rate? Do you use database analytics to help you better target asks, even in your direct mail appeals?

Do you want more planned gifts? Then tell me, do you have a sophisticated website that allows you to track individual engagement and then rate prospects based on that? Do you use direct mail to generate bequest commitments and leads? Do you use the telephone to generate planned gifts and leads? Do you use surveys to learn more about prospects while engaging them?

Do you want more corporate support? Then tell me, do you offer something of value to your corporate donors or do you simply expect them to “give back”? Do you only go after the usual suspects or do you also approach the profitable, rapidly growing small and mid-size businesses in your community? Do you just ask or do you cultivate and engage as well?

Don’t get me wrong. Once again, I’m a big fan of fresh ideas and cutting-edge research. Again, so are Buck, Olsen, and Ahern. However, learning without doing accomplishes nothing.

Everyone seeking to work as a fundraising professional should learn the fundamentals so they can effectively identify prospects, educate and cultivate them, ask for gifts, and properly steward supporters.

Implementing relatively simple, small changes can yield big results for your nonprofit organization. Virtually every charity has low-hanging fruit. But, you actually have to go and grab it!

Here are five simple steps, that I outlined several years ago, that you can take now:

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October 8, 2019

It’s All Up to You Now

It’s that time of year once again. It’s the season when most charities raise the most amount of money, perhaps because that’s when most fundraising activity happens. However, how tough will it be to raise money as the end of 2019 approaches?

You might be concerned about a recession on the horizon. You should be. We’re experiencing a record for sustained economic growth that quite simply can’t go on forever. A recession is bound to hit eventually even without factoring in trade wars, political turmoil, disruptions to the global oil supply, and the threat of foreign wars.

Among ultra-wealthy Americans, those with an average worth of $1.2 billion, 55 percent believe the US will enter a recession within the next year, according to the UBS Global Family Office Report. About 45 percent of respondents are sufficiently concerned that they are boosting their cash reserves, and 45 percent are realigning their investment strategies to mitigate risk.

While recession fears loom, a major economic downturn has yet to take shape. In other words, the economic climate is currently good from a fundraiser’s perspective. Could it be better? Sure. Always. But, it’s plenty good enough for you to anticipate a successful year-end fundraising effort. Consider some of the following six economic factors (as of Oct 4, 2019):

Gross Domestic Product. GDP is growing at a rate of 2.0 percent. Overall philanthropy historically correlates closely with GDP. So, if GDP goes up, we can anticipate that philanthropic giving will also increase.

Unemployment. The national unemployment rate is 3.5 percent, the lowest since 1969. If more people are working, more people will likely have funds with which they can donate.

Wages. Wages have increased 2.9 percent over 2018. Individual giving closely correlates to personal income. So, if personal income is rising, we can anticipate a rise in individual philanthropy.

Stock Market. The stock market, while volatile, has been performing well. This year, the Dow is up 13.92 percent, the NASDAQ is up 20.30 percent, and the S&P is up 17.76 percent. This is good for fundraising for two important reasons worth mentioning here. First, stock growth means that foundations and donor-advised funds will have more money with which to donate. Second, many individuals own stocks that have appreciated in value. When donating appreciated stocks, individual donors can avoid capital gains tax. In other words, even if someone can’t claim a charitable gift deduction under the current tax code, they can still derive a tax benefit by contributing appreciated securities.

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