Posts tagged ‘major gifts’

February 14, 2019

Valentine’s Day Holds the Secret to Fundraising Success

As I write this post, Valentine’s Day has arrived once again. Originally a religious feast day, it has evolved into also being a cultural and commercial celebration of love.

So, what does that have to do with fundraising? Everything!

Think about it. The very word philanthropy means love of humankind. Passion, caring, and relationships are essential to romantic love. They are also vitally important to the fundraising process.

If you treat your donors like an ATM (cash machine), they likely won’t be your donors for long. By contrast, if you understand and tap into their philanthropic passions, show them you care about their needs, and develop a relationship with them, they’ll be more likely to renew their support and even upgrade their giving over time.

When volunteers, and even fundraising professionals, are fearful of asking for contribution, it’s probably because the organization is placing too much of an emphasis on asking and focuses too little on relationship building.

Let me be clear. Fundraisers who fail to develop relationships are simply beggars while those who build relationships, as well as ask for gifts, are development professionals.

When it comes to major-gift and planned-gift fundraising, relationship building is particularly important. Gail Perry, President of Fired-Up Fundraising, recently addressed this issue artfully in a terrific #Gailism that she has allowed me to share with you:

Developing relationships with major and planned-gift donors and major and planned-gift prospects allows us to:

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October 26, 2016

Want to Inspire More Donor Loyalty? Do What Marriott Does.

Marriott gets it. The nonprofit sector, not so much.

I’m talking about fostering loyalty.

Marriott has built the world’s largest hotel company, in part, by knowing how to cultivate a loyal customer base. By contrast, nonprofit organizations continue to hemorrhage donors, according to the 2016 Fundraising Effectiveness Survey Report from the Association of Fundraising Professionals and the Urban Institute.

To help you more effectively cultivate donor loyalty, I’m going to give you one excellent, easy to implement idea inspired by a recent email I received from Marriott:

Show your donors gratitude.

I know. I know. You already send your donors a thank-you letter when they make a gift. As a donor, I expect that, just like I’ve come to expect a thank-you email from Marriott following each of my stays.

gratitude-cartoonBeyond that, I’m talking about surprising people with an unexpected message of gratitude.

A few days ago, I received an unanticipated email from Marriott. The subject line read: “Happy 24th Anniversary!”

I had no idea what the email was about, so I had to open it. When I did, I read:

Congratulations! Celebrate 24 Years with Marriott Rewards

Michael, we appreciate your loyalty and thank you for your membership!”

Yes, I know I’m a Marriott Rewards member. However, I did not realize that I’ve been a Marriott Rewards member for nearly a quarter-century. I enjoyed learning that. In addition, I appreciated being thanked for my overall loyalty, not simply for a recent stay.

Throughout the year, often in surprising ways, Marriott shows they appreciate my business. The fact that Marriott shows its appreciation is not the only reason the company is my preferred hotel company. There are many other factors. But, the fact that Marriott makes me feel valued is one important reason I value Marriott.

This Thanksgiving, send your donors an email, card, or letter expressing your appreciation. However, don’t simply thank them for their past support; thank them for caring about whatever your organization’s mission is. Also, thank them for their loyalty.

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November 20, 2015

Stop Ignoring This Amazing Source of Contributions

There is a funding source that donated $12.5 billion to charities last year. Sadly, most nonprofit organizations ignore this massive opportunity for support with only 23 percent saying they are “very familiar” with how this funding source works, according to a report from Vanguard Charitable.

I’m speaking of Donor Advised Funds.

Pile of Cash by Pictures of Money via FlickrDonors create a DAF by opening an account with charitable organization equipped to manage it. Donors then make irrevocable donations of cash or appreciated assets to their DAF account to receive current year tax benefits and deductions. Donors can choose how their contributions are invested creating the potential for tax-free growth that can fund larger charitable grants. Donors “advise” when and how much to grant and to which organizations.

Unfortunately, many fundraising professionals overlook DAFs. They think DAF donations will either automatically come in or won’t. Some fundraising professionals simply complain about how much money is going into DAFs rather than to charities.

I think there are five myths about DAFs that we need to debunk before we review how you can secure DAF grants for your charity:

Myth 1: DAFs don’t generate enough total contributions to deserve attention.

In 2014, DAFs contributed $12.5 billion to charities, a 27 percent increase over 2013, according to a report issued by The National Philanthropic Trust. That’s 3.5 percent of all charitable giving in 2014!

Myth 2: DAFs might give a lot of money, but there are not that many of them.

The reality is that 238,293 DAF accounts existed in 2014. While some donors have created multiple accounts, the number of DAF donors is nevertheless large and growing. To put this into some perspective, there were just 107,000 Charitable Trusts created in 2014.

Myth 3: The average DAF does not contribute very much money.

The average size of each DAF account grew from $260,626 in 2013 to $296,701 in 2014. DAFs had a payout rate of 21.9 percent. This is much higher than the five percent payout rate required of private foundations.

Vanguard Charitable, one of the largest DAF managers, reports accounts valued at $100,000 or more granted an average of $13,841 while accounts valued at less than $100,000 granted an average of $3,422.

Fidelity Charitable, the country’s largest DAF manager, reports its average DAF account granted $4,138 and the average account made 8.3 grants in 2014.

Myth 4: DAF granters prefer to remain anonymous.

Vanguard Charitable reports that 95 percent of its grantmakers share their name with the charities they support. Schwab Charitable, another large DAF management organization, says that 97 percent of its grantmakers share their name. Fidelity Charitable reports that 92 percent of its grantmakers provide information for nonprofit acknowledgment. This means that charities are able to continue to cultivate and steward these donors.

Myth 5: DAFs can be ignored as a passing fad.

DAFs have been around for 84 years. Following the creation of the Fidelity Charitable Gift Fund in 1991, DAFs really began to gain popularity. In 2014, DAFs held $70.7 billion in assets, an increase of nearly 24 percent compared with the previous year. DAFs are not a fad; they are a growing form of philanthropy for those interested in endowed giving but who do not have the resources or interest in establishing a private foundation.

So, what can you do to dive into the DAF pool? Here are six tips:

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November 18, 2015

It’s Shameful to Shame a Major Donor

Would you publicly shame a generous philanthropist who just contributed $100 million?

Dylan Matthews, a writer at the blog site Vox, has done just that in his recent post: “David Geffen’s $100 Million Gift to UCLA is Philanthropy at Its Absolute Worst.”

David Geffen

David Geffen

The post came after David Geffen, the billionaire entertainment mogul and philanthropist, announced that he is donating $100 million to the University of California, Los Angeles, to build a private school aimed, in part, at serving the families of UCLA’s faculty and staff, according to a Los Angeles Times article.

Geffen and UCLA Chancellor Gene Block described the new school, in part, as a recruiting and retention tool for faculty and scientists who may be worried about the cost of living in Los Angeles and the quality of the Los Angeles education system, the Times reports.

The gift to create the Geffen Academy was not the philanthropist’s first donation to UCLA. He has already contributed $300 million to what is now UCLA’s David Geffen School of Medicine. Through his gifts to UCLA, Geffen told the Times, he wants to help the medical school “to be competitive with Harvard and Johns Hopkins and the very best in the world.”

While many might think Geffen’s generosity is noble, Matthews clearly feels otherwise:

Music mogul David Geffen is very, very bad at being a philanthropist. His past donations have mostly taken the form of massive gifts to prominent universities and cultural institutions, rather than to poor people or important research or even less famous, more financially desperate universities and arts centers.”

In short, the Vox blogger says that Geffen is a “ very, very bad” philanthropist because he does not give to causes that Matthews believes he should support. This is a perfect illustration of holier-than-thou liberalism (not to be confused with liberalism).

Matthews calls Geffen’s philanthropy a “grotesque waste.” He adds, “This gift is actually worse than no charity.” He disparages Geffen’s desire to have UCLA compete successfully with Harvard and Johns Hopkins. He even insults the students who will be attending the Geffen Academy by dismissing them as “faculty brats.”

Interestingly, I discovered one reason why Matthews might really be opposed to the Geffen gift. Geffen wants UCLA to be able to compete more effectively with Harvard. Well, guess what? Matthews is a Harvard alumnus, something he neglected to point out in his blog post. That conflict of interest aside, I also noticed that most of the charities that Matthews thinks would be worthier of Geffen’s support work in the developing world. Could it be that Matthews believes in white paternalism and/or keeping people of color dependent on white, Western charity? Is Matthews of the belief that there are no needy children in the US or is it that he’s simply anti-American?

So, Mr. Matthews, how do you like having your motives judged and your character impugned? Normally, I wouldn’t have done so, but I decided to take a moment to adopt your writing voice. I also thought it might be interesting for someone to hold a mirror up to you.

I won’t go into why the Geffen donations are beneficial. Suffice to say they will do a great deal of good from creating good paying jobs to enhancing medical education and research. It might not be what you or I would support. It’s certainly not what Matthews would support. But, the fact is, it’s not our money. It’s Geffen’s wallet, and he can empty it however he wishes, or not at all. If Matthews wants $100 million to go to the various causes he listed, let him go out and earn it so he can give away his own money where he sees fit.

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November 11, 2015

Rejecting a $100,000 Gift Helps #Nonprofit Raise MORE Money

The idea of rejecting a major donation usually sends a chill up the spine of nonprofit executives. After all, nonprofit organizations are not in business to return donations. Instead, charities employ hardworking fundraising professionals to bring in contributions. For many nonprofits, donations are the lifeblood of the organization.

However, rejecting a gift can actually help a charity protect its mission. Recently, I reported on two organizations that rejected or returned major gifts:

“When Should You Refuse a Gift?” — tells the story of Lucy the Elephant rejecting a grant offer from People for the Ethical Treatment of Animals

“Update: Spelman College Returns Gift from Bill Cosby” — relates why a major gift from Cosby was returned

Not long ago, the Girl Scouts of Western Washington demonstrated that a nonprofit can protect its mission and raise more money by mindfully rejecting a donation. In the case of the Girl Scouts, the organization rejected a $100,000 gift and raised over $250,000 in the process!

Girl Scouts W WashingtonWhen the Girl Scouts received the $100,000 gift, the staff was understandably thrilled. The money equaled approximately one-third of the organization’s financial assistance program budget for the year. The Girl Scouts offer financial assistance so that any girl can join despite economic obstacles.

Unfortunately, the Girl Scouts quickly learned that the major gift came with a major stipulation: the organization could not use any of the funds to help transgender children.

Megan Ferland, CEO of the Girl Scouts of Western Washington told Seattle Metropolitan magazine:

Girl Scouts is for every girl. And every girl should have the opportunity to be a Girl Scout if she wants to.”

In other words, accepting the donor’s terms for the gift would have violated the organization’s mission. So, the Girl Scouts made the only decision they could; they returned the gift.

Then, the organization tried to turn a lemon into lemonade. The Girls Scouts launched an Indiegogo crowd-funding campaign to try to recoup the funds. In the campaign, the Girl Scouts explained the situation. However, the organization correctly protected the privacy of the donor by not revealing the donor’s name.

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March 18, 2014

Get More Repeat Gifts: The Rule of 7 Thank Yous

Donor retention is a worsening problem for the American nonprofit sector, according to Jon Biedermann, Vice President of DonorPerfect. In 2011, only half of first-time donors to a charity could be counted on to make a second gift. As bad as that retention rate was, it dropped to 49 percent in 2012.

Something must be done.

It’s challenging and expensive to acquire first-time donors. Charities must do a better a job of hanging on to those donors. Cost-efficient annual fund campaigns as well as major and planned giving efforts depend on loyal donors.

MG Fundraising CoverFortunately, guest blogger Amy Eisenstein, ACFRE  offers a simple idea that can help: “The Rule of Seven Thank Yous.” Her rule will help you retain first-time donors, loyal donors, small donors, and major donors — in other words, all donors.

Amy is an author, speaker, coach and fundraising consultant who’s dedicated to making nonprofit development simple for you and your board. Her books include 50 A$ks in 50 Weeks and Raising More with Less.

In her current Amazon bestseller, Major Gift Fundraising for Small Shops, Amy takes the complex subject of major gift fundraising and distills it down to its essential elements. The book provides a clear, methodical approach that any organization can follow. Great tips, real-world stories, check lists, sample forms, and more make this a book that you will keep on your desk and refer to often, that is if you want to raise more money than you might have thought possible.

I’m happy to share Amy’s advice about how to more effectively retain donors. Here’s what Amy Eisenstein says:

There are two main reasons that donors, including those who make major gifts, provide for not making a repeat contribution:

1. They didn’t feel thanked; and/or

2. They were never told how their first gift was used.

Fortunately, the answer to this dilemma is a simple one: donors give because doing so makes them feel good. This includes feeling appreciated for their gift and knowing that their check has fed more children, cleaned the environment, or in whatever way has made a measurable, positive difference to a cause they care about.

Your job, no matter how large or small your budget, is to make sure your donors are satisfied on both counts. Over the course of working with dozens of nonprofit organizations, I’ve developed a simple process to help you do just that whenever you receive a major gift.

You may have heard that you should thank a donor seven times before asking for another gift. Here is my version of “The Rule of Seven Thank Yous” works:

1. Thank the donor at the ask meeting (once they say “yes”).

2. Have a board member call to say thank you after the meeting.

3. Send a tax-receipt thank-you letter within forty-eight hours of receiving the gift.

4. Have the executive director write a thank-you card as a follow-up to the ask meeting. 

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