Posts tagged ‘Jay Love’

April 8, 2016

#Fundraising Moneyball: Track 3 Numbers that will Make You a Champ

[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 Carrie Horton, Director of Content and Education at Kindful, for highlighting the seminar “Fundraising Moneyball: The Only Metrics that Matter in Digital Fundraising.”]

 

While freezing temperatures continue to chill many in the USA, the boys of summer have nevertheless returned for the start of the 2016 baseball season. What better way to mark the occasion than drawing a parallel between the baseball book and movie Moneyball and fundraising?

Okay, enjoying a hotdog and beer at a ballpark would be a better way to celebrate the start of the new baseball season. But, the second best way is to explore some of the highlights from Jeff Stanger’s session at the AFP International Fundraising Conference: “Fundraising Moneyball: The Only Metrics that Matter in Digital Fundraising.”

The book and movie Moneyball presented the true story of a revolutionary approach to baseball introduced by Billy Beane, the General Manager of the Oakland A’s. With a lean budget, he relied heavily on statistics, rather than personalities, to build a winning baseball team.

The Moneyball lesson for your nonprofit organization is that by leveraging statistical data, you can build a winning development program.

So, what statistics should you track? What goals should you set?

Carrie Horton, Director of Content and Education at Kindful, has identified three key points from the seminar that you need to know. Kindful is a nonprofit CRM software that offers powerful online fundraising tools, intuitive donor management, and comprehensive reporting analytics in one centralized data hub. Here’s what Carrie found most valuable from Stanger’s presentation:

 

If you’re anything like us at Kindful, when you hear the word “moneyball,” you think of Michael Lewis’s bestselling book and Brad Pitt’s killer acting. But thanks to the AFP International Fundraising Conference and Jeff MoneyballStanger’s impeccable session, we’ve got a new definition. Stanger’s session – “Fundraising Moneyball: The Only Metrics that Matter in Digital Fundraising” – sets forth a simple and straightforward digital strategy for nonprofit fundraising success. According to this renowned speaker and fundraising consultant from Cause Geek, it’s not rocket science, it’s statistics.

Stanger showed us that a successful digital fundraising strategy isn’t about trending on Twitter or gaining the most “likes” on Facebook. Instead, he urges nonprofits to focus on small steps taken with the insight of data and metrics behind them. Sustainable growth, Stanger says, comes through clear and simple goals that are easy to measure, quick to show return, and effectively reveal what works and what doesn’t.

What are the three goals that Stanger suggests you focus on? Again, Stanger’s recommendations are straightforward:

  1. Increase the number of subscribers to email
  2. Increase the number of volunteers
  3. Increase the number of monthly givers

Seems simple enough, right? These aren’t principles that are overly complex or hard to define. They’re straightforward and easy to measure. Even smaller nonprofits with limited funds and limited resources can achieve great success through a series of small victories.

But, where do you start? Well, if Stanger’s argument is that these goals are important because they are measurable metrics, then it only makes sense to start with metrics as well. We might be a bit biased (being the donor management provider that we are), but Kindful thinks that clean data and insightful metrics are at the heart of every successful digital fundraising strategy. However, don’t take our word for it. Here’s a quick breakdown of Stanger’s three goals and how an integrated CRM can help make you a fundraising champ:

Goal #1: Increase the number of subscribers to email

In a world where 95 percent of consumers use email and 91 percent check it at least once a day, the importance of growing your email marketing and distribution list is a no-brainer. In fact, Stanger mentioned that 75 percent of social media users still say that they prefer email communication! Email addresses provide you with a direct link to your audience and, when used wisely, help you cultivate donors who will be invested in your organization for years to come.

Want to build your email distribution list?

Pull a report to find out how many email addresses you have in your donor database. Integrate with your email-marketing provider to pull in stats related to how many people open your emails and click through them. Use data to understand what’s working (and what isn’t) and refine your strategy to send better emails and increase engagement. In other words, make sure your emails deliver value to recipients.

Goal #2: Increase the number of volunteers

Did you know that nearly 80 percent of volunteers donate to charity, compared to only 40 percent of non-volunteers? (Visit VolunteeringInAmerica.gov for more information.) It makes sense – those who are the most engaged with your organization will be the most likely to give financial support as well. And it’s not just that volunteers are most likely to donate…they’re most likely to raise money for your organization as well! Especially with the rising popularity of crowdfunding platforms, volunteers who engage through peer-to-peer fundraising don’t just bring in more money, they expand your audience.

Furthermore, over time, many volunteers will choose to donate in significant ways including through planned giving.

Want to build your volunteer base?

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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.

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