Posts tagged ‘#GivingTuesday’

December 9, 2016

#GivingTuesday Hits and Misses

I’m not a fan of #GivingTuesday. Don’t get me wrong, though. I do like the idea of it. Promoting philanthropy at a time of year that has become associated with extreme consumerism is a nice concept.

While I have no quarrel with the idea of #GivingTuesday, I do have several problems with the reality of it, including:

It does not inspire much philanthropy. During #GivingTuesday 2016, early reports show that charities raised $168 million … WORLDWIDE. Last year, nonprofit organizations raised $117 million. Assuming all of that money was given in the USA, which was not the case, it would have accounted for just 0.03 percent of overall philanthropy!

We do not know whether #GivingTuesday inspires new and increased giving. While people contributed on #GivingTuesday, we simply do not know whether they would have given those gifts anyway. We also do not know if #GivingTuesday simply shifts when people give.

Well-resourced charities may be siphoning support away from smaller nonprofits. With larger marketing budgets, staff sizes, and brand awareness, it’s entirely possible that big organizations benefit from #GivingTuesday at the expense of smaller ones.

#GivingTuesday growth appears to be slowing. NonprofitPro reports that this year’s growth rate is the lowest in the five-year history of the campaign.

While I recognize that some charities have benefitted from their #GivingTuesday campaigns, I still fail to see how it is a benefit to the nonprofit sector as a whole. (You can read my more detailed critiques of #GivingTuesday by entering that term in my blog’s search box to the right.)

Furthermore, I find that many individual charities do themselves more harm than good by rushing to embrace #GivingTuesday while failing to invest time and money to enhance the fundamental fundraising skills of staff.

Consider the #GivingTuesday appeal initiated by Inis Nua Theatre Company. This small theatre company in Philadelphia produces excellent contemporary, provocative plays from Ireland, England, Scotland, and Wales.

Jessica Simkins, General Manager of Inis Nua, told me that the company normally does a year-end fundraising campaign. This year, staff chose to use #GivingTuesday to frame this year’s appeal. Rather than implementing an entirely new appeal for #GivingTuesday as many nonprofits have done, Inis Nua chose to leverage the hype around #GivingTuesday, such as it is, to see if it could boost its year-end fundraising campaign.

Despite my general feelings about #GivingTuesday, I actually like this application of the concept. I consider it a Hit. I also like that they included a challenge grant.

Unfortunately, the appeal letter itself is a big Miss. Here’s the direct mail appeal my wife received:

gt-inis-nua-mail-appeal

The major issue I have with the mailing is that it is very organizational-focused. The author uses the words I, my, our, ourselves, us, we a total of 30 times in a one-page letter. On the other hand, the writer uses the words audiences, donors, patrons, supporters, you and your only eight times.

The letter is a self-congratulatory missive from the Founder and Artistic Director. Donors are never given any credit for helping to make possible Inis Nua’s impressive accomplishments. There are other problems with the appeal, but the organization-centric approach is a giant problem. Piggy-backing on #GivingTuesday won’t offset Inis Nua’s neglect of fundraising fundamentals.

By contrast, my wife received a donor-centered email from Lantern Theater Company that also referenced #GivingTuesday. Lantern Theater is also a small nonprofit in Philadelphia that produces classic and modern plays. Unlike Inis Nua, Lantern’s mission statement actually mentions audiences, audience members, and community. You’ll see the audience/community focus represented in Lantern’s email appeal:

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December 8, 2015

Special Report: You Read about It Here First

[Publisher’s Note: “Special Reports” are posted from time-to-time as a benefit for subscribers and frequent visitors to this blog. “Special Reports” are not widely promoted. To be notified of all new posts, including “Special Reports,” please take a moment to subscribe in the right-hand column. New subscribers will also receive a free e-book from researcher Dr. Russell James.]

 

At Michael Rosen Says…, I strive to introduce you to exceptional people with something valuable to offer fundraising professionals and nonprofit managers. I also endeavor to share useful tips and provocative opinions with you. From time-to-time, other media outlets take notice. Here are two recent examples:

Isabelle Clérié, Country Director, EGI in Haiti

I introduced you to Isabelle Clérié, a young fundraising professional. At the time, Isabelle was working in the U.S. She has since returned to her native Haiti where she is now Country Director for EGI, an NGO working to combat poverty by assisting and training emerging entrepreneurs.

Isabelle Clérié, Country Director, EGI in Haiti

Isabelle Clérié, Country Director, EGI in Haiti

Isabelle wrote a guest blog post which I published nearly four years ago: “Haiti: A Young Professional’s Compelling Lessons for All Nonprofits.”

The post focused on relief efforts following the 2010 earthquake in Haiti. In addition to providing some interesting insights into the relief efforts, Isabelle shares some valuable tips that can make any charity more effective.

Now, Forbes has discovered Isabelle and has highlighted her work in Haiti in a recent report: “Three Social Entrepreneurs Driving Growth And Change In Haiti.”

I congratulate Isabelle on the much-deserved public recognition she has received, and I applaud EGI for making a difference in Haiti.

I encourage you to read Isabelle’s post and the article in Forbes.

#GivingTuesday

My regular readers know that while I like the idea of #GivingTuesday, I have not been impressed with the results. In fact, I actually have some serious concerns about the occasion.

Recently, The Chronicle of Philanthropy interviewed me for the article “Giving Tuesday? More Like Gimmick Tuesday, Some Small Nonprofits Say.” This gave me the opportunity to once again share my thoughts on the subject. You can download the article and read what I had to say.

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December 4, 2015

What Can a Steakhouse Teach You about #Fundraising?

Not long ago, I visited The Capital Grille where the chef served more than perfectly prepared steaks. At the end of the meal, he also served up a valuable fundraising lesson, albeit unwittingly.

Capital Grille TY NoteLast week, in America, we celebrated Thanksgiving. This week, we marked #GivingTuesday. Inspired by both of those occasions, I’m going to share my Capital Grille experience with you.

At the end of a wonderful meal, some uneaten steak remained on my plate. There was no way I was going to let the succulent meat go to waste when I could use it to make a perfectly delicious sandwich the next day.

So, I asked our waiter to please wrap it to go.

I didn’t give the matter any further thought as I waited for the package to arrive from the kitchen. Up until this point, everything was pretty much routine.

However, when my to-go package of leftover steak arrived in a nice paper bag, I couldn’t help but notice a note tied to the bag’s handle. The note, hand signed by the chef, read:

We are glad you enjoyed your meal enough to take some home with you. Thank you for dining with us, we appreciate your business.”

I’m more than a half-century old. I dine out quite a bit. In my life, I’ve taken leftovers home on many occasions. However, this was the first time that my leftover package came with a hand-signed thank-you note!

Here are five takeaways for you:

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December 23, 2014

#GivingTuesday Has NOT Made a “Huge Difference”

Earlier this month, I expressed my concerns about #GivingTuesday. Now, the Lilly Family School of Philanthropy at Indiana University and the Case Foundation have announced the results.

Guess what? Despite all the hype and self-congratulatory headlines, #GivingTuesday did not accomplish much.

The official #GivingTuesday website  proudly displays this message:

#GivingTuesday Thank You

However, are the good, well-intentioned folks at #GivingTuesday correct? Did the occasion really make a “huge difference”?

#GivingTuesday 2014 inspired $45.68 million in charitable giving, according to an infographic prepared by the Case Foundation.  The final tabulation is expected to be even greater. Over 15,000 charities participated, representing 68 countries.

#GivingTuesday Full Infographic-Dec 2014The numbers look great at first glance particularly when recognizing that donations grew by more than 63 percent over #GivingTuesday 2013.

But, let’s look at the numbers a bit more closely.

Last year, total philanthropic giving to the nonprofit sector in the USA totaled $335.17 billion. For our discussion here:

  1. Let’s assume that total giving in 2014 increases by four percent to $348.58 billion.
  2. Let’s assume that the initial reports that were shared were only half of the actual results. This would mean that donations on #GivingTuesday totaled $91.36 million, likely an overly generous estimate.
  3. Let’s assume that 100 percent of the reported donations were made in the USA.
  4. Let’s assume that the more than 15,000 participating charities are all based in the USA.
  5. Let’s assume that no donations would have come in on that day if it were not for #GivingTuesday.

With those assumptions in mind, let’s look more closely at the #GivingTuesday results:

• #GivingTuesday generated 0.026 percent of donations for the year despite the day itself accounting for 0.274 percent of the calendar. In other words, despite the big promotional push, #GivingTuesday produced a disproportionately low volume of giving.

• With more than 15,000 participating organizations, #GivingTuesday generated an average of just $6,091 per organization. While it’s nice to have the $6,091 of income, it’s hardly a transformational amount especially considering that that amount includes money that would have come in anyway.

Beyond the numbers we do know, we do not know how much money would have come in anyway. We do not know how many new donors were inspired to give. We do not know if organizations are able to retain #GivingTuesday donors. We do not know if larger organizations are simply siphoning support from smaller organizations. We do not know if #GivingTuesday simply shifts when people give without inspiring more people to give, more people to give more often, and more people to give more.

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December 2, 2014

Have You Made This #GivingTuesday Mistake?

I have serious concerns about #GivingTuesday. Recently, the Context with Lorna Dueck Canadian television show invited me to share some of those concerns. My interview begins at about the eight-minute mark.

Context with Lorna Dueck television show.

Click to watch Context with Lorna Dueck.

I also shared some of my concerns in two prior blog posts: “#GivingTuesday: Hype or Hope?” (2012) and “No Evidence of #GivingTuesday Success” (2013).

I have many issues with #GivingTuesday.

Nevertheless, I continue to hope it will ultimately prove worthwhile for the entire nonprofit sector. Time will tell. Meanwhile, I want to make sure you do not commit a serious #GivingTuesday mistake that can hurt your organization.

If #GivingTuesday attracts new supporters and successfully inspires increased contributions from current donors, you can’t just operate as you normally would and expect to retain such support. Business-as-usual would be a big mistake. You need to do more to retain support.

We have Black Friday immediately following Thanksgiving. We also have Small Business Saturday and Cyber Monday. Thanks to the folks at New York’s 92nd Street Y, we now have #GivingTuesday. The 92nd Street Y served as the catalyst and incubator for #GivingTuesday. Early on, the United Nations Foundation joined as a partner, bringing its strategic and communications expertise to the project. #GivingTuesday has now attracted participants from around the world.

To be worthwhile, #GivingTuesday will need to encourage:

  • more people to give,
  • more people to give more often,
  • and more people to give more.

In other words, to be good for the entire charity sector, #GivingTuesday must significantly increase the philanthropic pie. Helping some organizations do better at the expense of others is not a beneficial outcome for the entire nonprofit sector.

Unfortunately, most nonprofit organizations are poorly equipped or motivated to do what is necessary to secure gains made through #GivingTuesday. While charities might be able and willing to leverage #GivingTuesday promotions to attract new donors, those same charities are doing little to ensure those donors continue their support. Sadly, it’s not a problem unique to #GivingTuesday donors.

In the USA, donor retention is a real problem. Seven years ago, the average donor-retention rate was just 50 percent. While that’s not good, the retention rate has become far worse, falling to 39 percent!

In Canada, the pool of philanthropists relative to total tax filers has fallen in recent years, from 30 percent to 23 percent. In other words, the donor-pie is shrinking, rather than growing, relative to the total population of tax filers.

If your organization has participated in #GivingTuesday, I hope you have developed a creative strategy for engaging and cultivating all new and increased donors. By properly stewarding these individuals, you just might be able to hang on to them. If not, what’s the point of investing in #GivingTuesday?

So, are you doing anything special to retain your #GivingTuesday supporters as well as your other donors? At the very least, I hope you:

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December 13, 2013

No Evidence of #GivingTuesday Success

I admit it. The news headlines about the second annual #GivingTuesday have been exuberant:

“Giving Tuesday Shows Robust Results”The Chronicle of Philanthropy 

“Growth in Online Giving Tuesday Numbers ‘Inspiring’”USA Today 

“Giving Tuesday Smashes Records, Spurs 90% Donation Spike”The Huffington Post 

#GivingTuesday 2013 Infographic by #GivingTuesdayThe good folks at #GivingTuesday even put together an infographic illustrating the day’s success. I’m sharing it in this post. 

There’s only one problem with all of the enthusiasm: There is not a single shred of hard evidence that #GivingTuesday is good for the entire nonprofit sector.

Fortunately, Forbes contributor Tom Watson is one member of the media not afraid to ask the big question: “Inside The #GivingTuesday Numbers: Will American Philanthropy Grow?” 

I share Watson’s healthy skepticism. Like him, I am not yet convinced that #GivingTuesday is a positive force for philanthropy although I certainly hope it is. While #GivingTuesday might have been effective for some individual charities, I wonder if it has been good for the entire nonprofit sector.

The fact that many more charities got involved with #GivingTuesday, compared with last year, does not necessarily mean anything. The fact that millions of people used social media to talk about #GivingTuesday does not necessarily mean anything. The fact that millions of dollars were raised on #GivingTuesday is equally meaningless, by itself.

Here are some questions about #GivingTuesday that the nonprofit sector should answer before rushing to congratulate itself:

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December 14, 2012

#GivingTuesday: Hype or Hope?

A headline at Bloomberg excitedly gushed, “Why GivingTuesday is the Social Innovation Idea of the Year. 

We’ve had Black Friday immediately following Thanksgiving. We’ve had Cyber Monday on the Monday immediately following Thanksgiving. Now, on the heels of those two days dedicated to consumerism, we have Giving Tuesday, as a way to promote philanthropy on the Tuesday following Thanksgiving.

It’s certainly a seemingly good idea. But, is the Bloomberg headline true? Does #GivingTuesday offer the nonprofit sector great hope, or is it just well-intentioned hype?

#GivingTuesday is an initiative created by New York’s 92nd Street Y which has served as the catalyst and incubator for #GivingTuesday. Early on, the United Nations Foundation joined as a partner, bringing its strategic and communications expertise to the project. Eventually, over 2,000 additional partners were attracted. The initiative’s official mission statement is:

#GivingTuesday™ is a campaign to create a national day of giving at the start of the annual holiday season. It celebrates and encourages charitable activities that support nonprofit organizations.”

But, so what? While it’s nice that #GivingTuesday “celebrates and encourages charitable activities,” what has the first #GivingTuesday really accomplished?

On the #GivingTuesday website, Rob Reich, Co-Director of the Center for Philanthropy and Civil Society at Stanford University is quoted as saying:

#GivingTuesday has a simple aim: to establish a national day of giving during the holiday season of gratitude and generosity of spirit that will inspire Americans young and old, online and offline, red and blue, urban and rural. I joined #GivingTuesday because the aim is simple and the mission undeniably good: to increase charitable giving by all Americans.”

While time will tell if #GivingTuesday helps “increase charitable giving by all Americans,” I contacted The Associate: Jewish Community Federation of Greater Baltimore to gain some insight regarding the impact of #GivingTuesday.

According to The Chronicle of Philanthropy, The Associated was #GivingTuesday’s “most successful charity,” having raised over $1 million.

MoneyLeslie Pomerantz, Senior Vice President of Development at The Associated, told me she learned about #GivingTuesday and was immediately intrigued. The Associated, at the height of its campaign season, was looking for ways to excite donors, and was looking for fresh reasons to involve people. #GivingTuesday presented a great marketing opportunity for The Associated to remind its community of its philanthropic values.

Through email and advertisements, The Associated promoted #GivingTuesday. In addition, it scheduled a massive phonathon for November 27. The effort attracted over 100 volunteers and engaged 30 staff members. While not as large as its autumn Super-Sunday phonathon that involves hundreds of volunteers, the #GivingTuesday outreach contacted previous donors who had yet to renew their support. The effort also reached out to some non-donors who had some type of connection to the organization.

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