Posts tagged ‘marketing’

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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August 1, 2019

How Fundraisers Can Avoid 5 Big Mistakes Made by Capital One

Don’t worry. This post really is not about data security. It’s about much more. And I’ve written it for you, a fundraising professional.

But first, here’s some background:

Capital One, the tenth largest banking institution in the USA, announced it has experienced a major data breach involving the personal information of credit applicants and customers. In its official statement, the bank disclosed, “Based on our analysis to date, this event affected approximately 100 million individuals in the United States and approximately 6 million in Canada….This information included personal information Capital One routinely collects at the time it receives credit card applications, including names, addresses, zip codes/postal codes, phone numbers, email addresses, dates of birth, and self-reported income.” In addition, about 140,000 Social Security numbers were compromised. One million of Capital One’s Canadian customers had their Social Insurance Numbers compromised.

The Capital One story presents the nonprofit sector with an opportunity to learn from someone else’s problem. Every charity should learn from the five mistakes made by the bank:

1. Inadequate Data Protection

While Capital One works with Amazon Web Services, AWS says it was not compromised. The hacker exploited Capital One’s own system. The US Federal Bureau of Investigation has a former AWS employee, Paige A. Thompson, in custody. The investigation is likely continuing. What we know for certain at this point is that Capital One’s data protection systems were not up to the task.

As a fundraising professional, I don’t have any idea about what sophisticated data protection tools exist. I suspect you don’t either. However, you have an obligation to make sure that your organization seeks out the expertise to safeguard the organization’s data. Furthermore, you need to make sure your organization has a policy about who has access to data and under what circumstances. I know you won’t have the security systems of a bank, but you do have an obligation to have reasonably robust security protocols in place.

2. Lack of Timely Reporting

The personal data of Capital One credit applicants and customers was compromised from March 22-23, 2019. The company didn’t learn of the breach until July 19. The bank did not reveal this information to the public until July 29. We do not know if the FBI requested that the bank withhold news of the event pending an arrest. If so, the reporting delay is understandable. Nevertheless, the delay from the date of the incident to the date of disclosure was significant, even if it wasn’t the result of an actual mistake.

Fine wine improves with age. Problems do not. Whenever bad news is likely to become public or should be made public, it’s important to do so as soon as possible. This is true for both for-profit and nonprofit organizations. Getting the information out quickly and fully will help the organization preserve or, perhaps, even enhance its credibility.

3. Not Getting Out in Front of the Story

Once Capital One released the news, it did so haphazardly, despite having had 10 days to plan the disclosure roll-out. It issued a press release at 7:11 PM ET on July 29. By 7:41 PM ET, The Wall Street Journal website carried the news story. Other media outlets ran the story around the same the time. However, Capital One did not tweet the news until 8:43 PM ET. Therefore, when I first checked the Capital One Twitter feed, there was no mention of the story.

Even once the company addressed the general public, rather than just the news media, it did so with a bland tweet that simply read, “If you want to learn more about the Capital One cyber incident, please visit” along with a link to its press release and Frequently Asked Questions page.

The company did not issue an eye-catching alert. The company did not disclose the nature of the “incident.” The innocuous language and low-key look was also used at the top of the Capital One homepage. Assuming they actually spotted the mention, readers had to click through to the press release to find out what happened and, then, to the Frequently Asked Question page for additional information.

If something goes wrong at your organization, make sure you deliver your message on all the communication platforms your organization uses. Make it easy for folks to spot the information. Furthermore, make it easy for them to get more information by giving them a number to call or an email address, perhaps setting up both as hotlines for the occasion.

Capital One could have provided the public with the news without forcing folks to click through to the press release and then click over to the FAQ page. The bank could have also tweeted out tips for how its customers can protect themselves. Instead, the company is making people work a bit for the information. Don’t make the same mistake. Get people the information they need when they need it, and make it easy for them.

When something goes wrong involving your organization, whether or not it is to blame, you need to get out in front of the story in as coordinated a way as possible. At the point you alert the media, be prepared to take your message directly to the general public at the same time.

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June 26, 2019

It’s Not Just WHAT Donors Think, It’s HOW They Think that Matters

When certain fundraising experts have something to say, we all would be wise to pay close attention. Bernard Ross, Director of =mc consulting (The Management Centre based in the UK), is one of those insightful voices.

I’ve been among the legion of fans Bernard has attracted through his consulting work, conference lectures, articles, and books. Bernard’s latest volume, Change for Good written with Omar Mahmoud, demonstrates that fundraising is more than an art; it is also a science.

The publisher’s book description reads:

This breakthrough book is about how we as human beings make decisions — and how anyone involved in the field of social change can help individuals or groups to make positive choices using decision science. It draws on the latest thinking in behavioural economics, neuroscience and evolutional psychology to provide a powerful practical toolkit for fundraisers, campaigners, advocacy specialists, policy makers, health professionals, educationalists and social activists.”

Change for Good introduces readers to 10 key persuasion principles that will help fundraising professionals introduce decision science into their work as they strive to raise more money. For a decade or more, the for-profit sector has used decision science to influence people to make particular choices, whether to purchase something, accept certain behaviors, or take specific action. Now, this book, by Ross and Mahmoud, makes this profound knowledge accessible to fundraisers.

Not only will your nonprofit organization benefit when you read Change for Good, so will Médecins Sans Frontières/Doctors Without Borders. That’s because the authors are donating the profits from book sales to the international charity.

Bernard’s generosity does not end there. He has kindly provided us with a special article that demonstrates the importance of understanding both WHAT and HOW people think. In his guest post below, Bernard demonstrates the impact that decision science can have with real-life examples. In addition, you’ll be able to download a free summary sheet that provides valuable highlights from Change for Good.

I thank Bernard for his willingness to provide the following material:

 

Fundraisers are often concerned about changing hearts and minds. And they’re often, especially when prompted by colleagues in advocacy or communications, interested in increasing supporters’ conscious engagement with the cause. But, is this the best or only way to improve pro-social behavior — whether it’s increasing donations, using less plastic, or avoiding bias?

Let’s begin with the science. Fundamental to decision-making is the premise that much of our data processing and decision-making is subconscious and fast. Deciding is so fast, even changing our minds can be difficult. According to some recent research at Johns Hopkins University if we change our minds within roughly 100 milliseconds of making a decision, we can successfully revise our plans. If we wait more than 200 milliseconds, however, we may be unable to make the desired change. That’s not very long to persuade a donor to not look away from our TV ad or crumple our direct-mail pack.

But, it’s not just our visual process that’s important. For example, other senses are also important, especially smell. In a test between two Nike stores, one with a very faint “consciously undetectable” scent and one without, customers were 80 percent more likely to purchase in the scented store.

In another experiment at a petrol (gas) station with a mini-mart attached to it, pumping the smell of coffee into the store saw purchases of the drink grow 300 percent.

If you take the time to wander into the M&M World candy store in Leicester Square London, you might now notice the smell of chocolate. When it first opened in 2011, it did not have the smell and sales were disappointing. They hired a company called ScentAir who specialize in adding signature scents to stores. The managing director of the company, Christopher Pratt, said in an article describing the effect, “It looked like the place should smell of chocolate, it didn’t. It does now.” And sales have moved in response.

There was a similar positive response when the National Trust, a UK heritage charity, included a “scratch and sniff” element in an appeal to save a flower meadow.

When you visit a charity website, the conscious brain analyses the message content. (What is the cause I am being asked to support? What do they want me to do — donate, sign a petition, or join up?) At the same time, the subconscious brain continuously responds to how you react to the subtle background and peripheral cues. (How do I feel about the colours, images, celebrities involved, etc.?)

______________________________________________________________

“I always thought the brain was the most wonderful organ in my body. And then one day it occurred to me, ‘Wait a minute, who’s telling me that?'”

Emo Philips

______________________________________________________________

It’s not all about you either. Your subconscious brain has a mind of its own. Some signals also come from inside us, and we look unconsciously for opportunities to confirm our inner state. When we are in a good mood, we are more likely to tolerate our colleagues and partners and are more likely to donate to charities. These activities become a way to validate or confirm our inner feelings. Let’s look at an example of how this affects our behaviour.

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June 20, 2019

I Told You So: Charitable Giving is Up!

Most charity pundits, mainstream media, and press serving the nonprofit sector got it wrong. Sadly, none of them is admitting their mistake, and many are continuing to advance a false narrative. However, I always told you the truth, and I’ll continue to do so.

I’ve often encouraged you not to overuse statistics in your appeals. But, we can all certainly benefit from reading lots of illuminating statistics.

In 2017 and 2018, most pundits and the media were convinced that the Tax Cut and Jobs Act would result in up to a $21 billion decrease in philanthropic giving. In January 2018, I joined a tiny group of professionals who predicted the decrease in giving would be far less than that and giving might actually increase. This was not a guess on our part, but a well-educated expectation based on research, experience, and observation.

Now, with the release of Giving USA 2019, we know who was correct.

Overall, philanthropic giving in constant dollars INCREASED by $2.97 billion (0.7 percent) between 2017 and 2018, and now stands at $427.71 billion, the highest level of all time. Relative to Gross Domestic Product, giving remained at 2.1 percent, which is greater than the 40-year average of 2.0 percent.

Despite the generally good news, the philanthropy scene is not entirely positive. When adjusting for inflation, giving in 2018 did decline by 1.7 percent, though that was much less than the doom and gloom estimates. Furthermore, giving by individuals as a share of overall philanthropy accounted for 68 percent; this is the first time since at least 1954 that it has fallen below 70 percent. In 2018, individual giving fell by 1.1 percent in constant dollars.

While the new tax code likely had an effect on charitable giving, we need to be careful not to overstate its impact. A number of factors have influenced giving:

New Tax Code. All or part of the decline in individual giving in 2018 could be due to donors taking action in advance of the tax law change. We saw this in 1986 when there was a spike in charitable giving in advance of the Reagan tax cuts in 1987.

In 2017, many donors likely front-loaded their philanthropic giving since they would no longer be able to deduct gifts beginning in 2018. In addition, many donors chose to bundle their philanthropy by contributing to Donor-Advised Funds at record levels in 2017. Together, these two factors might explain the 1.1 percent decrease in individual giving in 2018 compared to a 5.7 percent increase in 2017. If not for the new tax rules going into effect in 2018, some of those 2017 donations might have been made in 2018 instead.

The tax code might also affect giving in other ways that we just don’t see clearly at this point. Just as we had to wait until 1988 to see giving normalize following the Reagan tax cuts, we may need to wait another year or two to understand the full effect of the current tax code.

Decline in the Number of Donors. Since 2001, the percentage of US households contributing to charity has fallen steadily from a high of 67.63 percent to 55.51 percent in 2014, according to data from the Indiana University Lilly Family School of Philanthropy’s Philanthropy Panel Study. In other words, the new tax code is not responsible for a sudden decline in the number of donors. This trend has been going on for years.

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May 17, 2019

You Need to Do What Monty Python’s Eric Idle has Just Done

Eric Idle, a member of the legendary British comedy troupe Monty Python, knows something about social media that you might not. He has recently done something that you should be doing. If you follow his example, you’ll engage more supporters. This will result in increased loyalty and enhanced lifetime giving.

I understand that you might have doubts about whether a comedy genius can really teach you something that will benefit your nonprofit work. Well, let me explain.

I’ve been a Monty Python fan for decades after first seeing them on television. Later, I thoroughly enjoyed their films including Monty Python and the Holy Grail and The Life of Brian. I’ve lost count of how many times I’ve watched them. I’ve also seen Idle’s Spamalot on Broadway.

While I am a fan of each Python member, comedy legend Idle holds a special place in my heart. Five years ago, when I was facing a 14-hour life-saving cancer surgery, his irreverent but strangely uplifting song from The Life of Brian buoyed my spirits. The first verse of “Always Look on the Bright Side of Life” goes like this:

Some things in life are bad,

They can really make you mad,

Other things just make you swear and curse,

When you’re chewing life’s gristle,

Don’t grumble,

Give a whistle

And this’ll help things turn out for the best.

And…

Always look on the bright side of life.”

You can listen to the full song by watching this clip from the film:

Because the song means so much to me, my eye was caught by a tweet from one of my Twitter-buddies, Ephraim Gopin. (By the way, Ephraim is a funny and sharp fundraising professional, a rare combination. Follow him.) His tweet included a GIF from the clip I shared above. He was thanking Idle for retweeting one of his previous messages.

I replied to both mentioning how the song helped me. That’s when I received a touching surprise.

Eric Idle, the Eric Idle, the comedy legend, the man who has made me laugh for decades, replied to me with a simple, uplifting message:

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April 29, 2019

Update: Get a Free Webinar, Magazine Article, Poll Results

I want to update you about three posts I recently published. In addition, for National Child Abuse Prevention Month, I wish to draw your attention to one of my older posts that will help you keep the children you love safe.

Free Webinar:

Did you miss it? Recently, I presented a webinar for SEI Investments Management Corporation: “Investing in Your Future: Practical Strategies for Growing Your Planned Giving Program.” If you missed the program or wish you could share it with colleagues, I have some good news for you. The webinar is now available for free download by clicking here.

In just 30 minutes, you’ll learn:

  • 8 reasons you should be a planned giving “opportunist”
  • Why you should invest more in planned giving instead of current giving
  • 5 Tips to boost your planned giving results immediately

In addition to the webinar itself, you’ll also be able to download additional resource materials including a list of 20 factoids about planned giving, a planned giving potential calculator, an executive summary of recent research findings from Dr. Russell James’ report “Cash is Not King in Fundraising,” and a digital copy of Dr. James’ book Visual Planned Giving: An Introduction to the Law & Taxation of Charitable Gift Planning.

Advancing Philanthropy Article:

Have you read my recent article published in Advancing Philanthropy, the Association of Fundraising Professionals magazine? “To Sir/Madam, With Love” shares stories from a number of fundraisers about their favorite teachers. Great teachers:

  • help us develop broad skills such as critical thinking,
  • help us develop specific skills such as how to write an effective appeal letter,
  • inspire us,
  • encourage us,
  • move us to think beyond ourselves and better understand others,
  • open our minds to lifelong learning,
  • motivate us to giveback by sharing our own knowledge.

After downloading the free article by clicking here, check-out my recent post that will give you tips that will help you find excellent teachers who can help you enhance your skills and inspire you: “Are You Really Just a Fundraising Amateur?”

Poll Results — Presidential Candidate Philanthropy:

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March 27, 2019

Who are Your Best Planned Giving Prospects?

Almost everyone has the capacity to make a planned gift. Consider just these four facts:

  • Among those ages 65 and older, 78 percent own their home (US Census)
  • Most Americans own stock in one form or another (Gallup)
  • Inflation-adjusted median household net worth grew 16 percent from 2013-16 (US Federal Reserve)
  • 69 percent of Americans expect to leave an inheritance (Stelter)

The fact that most Americans have the ability to make a planned gift presents both a great opportunity and a profound challenge for fundraising professionals. With limited staff and budget resources, it is essential to focus legacy giving marketing where it will do the most good. So, who are the best planned giving prospects?

You can visualize the answer to that question as an equation:

Ability + Propensity + Social Capital = GIFT

Your best planned giving prospects will have the means with which to make a planned gift, ideally a sizeable one. However, just because they have the ability does not mean they will take the action you desire. A number of factors influence a prospect’s propensity for giving. Some of those factors might be related to the organization seeking a gift while other factors might have nothing to do with the organization. Finally, we need to consider a prospect’s level of social capital, their degree of engagement with the community and the organization. Someone who scores high in each category is more likely to make a planned gift than someone who scores low.

A simpler way to identify strong planned giving prospects is to recognize that “the most dominant factor in predicting charitable estate planning was not wealth, income, education, or even current giving or volunteering. By far, the dominant predictor of charitable estate planning was the absence of children,” according to philanthropy researcher Russell James, JD, PhD, CFP®. In other words, people who do not have children are far more likely to make a charitable planned gift than those who have children.

However, while the absence of children tells us who is generally more likely to make a planned gift, it does not tell us whether your organization will be the recipient of such a gift. The leading factor that will determine whether someone will make a planned gift to your organization is their level of loyalty, according to legacy researcher Claire Routely, PhD.

As you attempt to determine a prospect’s level of loyalty to your organization, you’ll want to consider a number of factors including:

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March 18, 2019

Free Webinar: 5 Easy, Powerful Tips to Boost Planned Giving Results

Is the current environment good or bad for planned giving? Should you invest more money in planned giving or current giving? What are five easy things you can do now to boost your planned giving results? In an upcoming, free webinar, I’ll answer these questions as well as inquiries from participants.

I’m honored that SEI Investments Management Corporation is hosting me for the free, 30-minute webinar: “Investing in Your Future: Practical Strategies for Growing Your Planned Giving Program.”

Planned giving is a vital source of contributions for the nonprofit sector. Organizations that don’t have a gift-planning program envy those that do — and those that do want even better results. While it can certainly present challenges, there are simple things you can do to create or enhance your organization’s gift-planning efforts. In just a 30 minutes, you’ll learn:

  • 8 reasons you should be a planned giving “opportunist”
  • Why you should invest more in planned giving instead of current giving
  • 5 Tips to boost your planned giving results immediately

In addition, all participants will receive a complimentary selection of planned giving tools to help with strategy building.

Register today for this free webinar because the valuable information provided will help you meet your goals. After you register, think about the questions that you’d like to have me address during the live Q&A portion of the presentation.

Here are the details you need to know:

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February 26, 2019

Inspired by Lady Gaga: 10 Ways to be a Fundraising Genius

You might never have heard of Stefani Germanotta. Yet, she is known internationally as a top recording artist, nine-time Grammy Award winner, social activist, and philanthropist. Following the 91st Academy Awards, we now also know her as an Oscar winner.

You, as her millions of fans around the world, likely know her better as Lady Gaga.

Jesse Desjardins, when he was Social Media Manager for Tourism Australia, recognized that Lady Gaga is more than a singer. He recognized that she is even more than an entertainment genius. He understood that marketing and public relations professionals could learn from her, so he put together an interesting PowerPoint presentation, “10 Ways to be a Marketing Genius Like Lady Gaga.” When I saw the slides, I believed that fundraising professionals could also learn a great deal from her. Thanks to permission from Desjardins, I’m able to share 10 useful insights with you.

1. Have an Opinion

“Gaga regularly speaks out on issues she feels strongly about. In doing so, she keeps herself in the public eye.”

By speaking out, Gaga makes certain no one forgets her. She remains relevant. She advances the issues that she finds important. She engages her fans.

Your organization has an important mission. Let supporters and potential supporters hear about it beyond those times that you ask for money. Stay in front of them. Remain relevant. Engage people year-round while advancing your organization’s mission. Communicate about issues relevant to your organization’s mission. Ask supporters to help in ways that don’t involve giving money (e.g., volunteer, call elected officials, etc.). Share information people will want and appreciate.

2. Leverage Social Media

“Gaga has worked tirelessly on accumulating over [78] million Twitter followers and [55] million Facebook fans.”

To put that into perspective, there are only five people on the planet who have more Twitter followers. In other words, tens of millions of people want to hear what Gaga has to say, and she says things people want to hear. She speaks to people where they are.

Today, people consume information in more ways than ever before, and how they do it varies by age group. You need to be where they are if you want your message heard. Understand the demographics of your supporters and potential supporters and learn what media they consume. Then, be there with relevant, meaningful information.

3. Be Different

“Differentiate wisely. There are too many normal people doing normal things. Show, don’t tell. You are extraordinary so show it.”

You’re not alone. Unless you work for an exceedingly rare charity, others have the same or similar mission as your organization. What makes your organization special? Why should people care about your organization instead of the others that do similar things? You need to address those questions if you want to capture hearts.

4. Don’t be Afraid to Make Lots of Money

“Being starving is not fun. If making a ridiculous amount of cash is what you want to do, go for it.”

If your organization relies on donations to fulfill its mission, don’t be shy about doing what it will take to get the funds your organization needs. Don’t be afraid to ask people for money. When people ask you what you do for a living, answer them with pride.

5. Give Your Fans Something to Connect With

“Gaga calls her fans Little Monsters and gives them a shared symbol. The official Little Monster greeting is the outstretched ‘monster claw’ hand. This allows fans to identify each other and connect.”

No, you don’t need to create a secret handshake for your supporters. However, you should create a sense of belonging. People would rather join a cause, a movement for change, than simply give money to a dusty institution. Provide people with easy ways to connect with you. Give them opportunities for meaningful engagement as a way to build connection.

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January 24, 2019

Here are Some Things You Need to Know

Now that the 2018 year-end fundraising season has closed and you’ve had a moment to catch your breath, I want to share some things with you that you might have missed.

To begin, here is a list of my top ten most read posts published last year:

  1. How Bad is the New Tax Code for Your Charity?
  2. It’s Time to Stop Whining about Donor-Advised Funds!
  3. 9 Hard Truths Every Fundraiser Needs to Face in the 21st Century
  4. New Charitable Gift Annuity Rates Announced
  5. Jerold Panas (1928-2018), He Will Be Missed
  6. Setting the Record Straight about Jimmy LaRose
  7. Will One Charity’s Surprising Year-End Email Make You Look Bad?
  8. The Dark Side of the Fundraising Profession
  9. How to Get Last Year’s Donors to Give More this Year
  10. Avoid the 7 Deadly Sins When Working with Volunteers

Here’s a list of just five of my older posts that remained popular in 2018:

  1. Can a Nonprofit Return a Donor’s Gift?
  2. Can You Spot a Child Molester? Discover the Warning Signs
  3. Here is One Word You Should Stop Using
  4. 5 Things Never to Do in Your Phone Fundraising Calls
  5. Special Report: Top 40 Most Effective Fundraising Consultants Identified

I invite you to read any posts that might interest you by clicking on the title above. If you’ve read them all, thank you for being a committed reader.

Over the years, I’ve been honored to have my blog recognized by respected peers. I’m pleased that, among the thousands of nonprofit and fundraising sites, my blog continues to be ranked as a “Top 75 Fundraising Blog” and as a “Top Fundraising Blog – 2019.”

To make sure you don’t miss any of my future posts, please take a moment to subscribe to this site for free in the designated spot in the column to the right. You can subscribe with peace of mind knowing that I will respect your privacy. As a special bonus for you as a new subscriber, I’ll send you a link to a free e-book from philanthropy researcher Russell James, JD, PhD, CFP®.

In 2018, I was pleased to have two of my articles published in Advancing Philanthropy, the official magazine of the Association of Fundraising Professionals:

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