Posts tagged ‘marketing’

April 20, 2018

Do Not Make this Big Error with Your Next Challenge Grant

I’ve seen it frequently. Fundraising professionals often make a big error when using a challenge grant. And they compound that error unethically by misleading prospective donors. It’s a common issue that is costing the nonprofit sector a fortune.

What’s the huge mistake? Fabrication of a bogus challenge grant.

True challenge grants are great. When a fundraising professional inspires a donor to provide a challenge grant, the nonprofit has a powerful tool to encourage greater contributions when making an appeal.

Typically, a challenge grant will match new and increased support to a charity. Oftentimes, the match will be dollar-for-dollar, though other multiples can also be arranged. In the case of a dollar-for-dollar challenge, if a new donor gives $100, the challenge-grant donor will give the charity $100. If a $50 donor from last year gives $75 this year, the challenge-grant donor will give $25. Typical challenge grants are not unlimited; the donor will set a maximum total amount.

Using a challenge grant can be an excellent fundraising tool for four reasons:

1.  It encourages donor support by increasing the value of donations. For example, with a one-to-one match, new donors have their contributions effectively doubled, thereby significantly magnifying the impact donors can have.

2. It encourages donor support because donors do not want the organization to lose money. If a donor makes a new or increased gift, the charity will receive additional money from the challenge-grant donor. However, the converse is also potentially true.

If a donor does not give, the charity could lose out on some of the challenge grant. Therefore, while a challenge grant can increase the value of a donor’s gift, it can also create the impression of a cost to the organization if the donor does not give. Some donors are motivated by the concern, “If I don’t give my $125, the organization could miss out on another $125 from the challenge-grant donor. I don’t want to cost the organization $125.”

3.  It creates a sense of urgency to give now. Typically, challenge grants must be fulfilled within a narrow time-frame. So, prospective donors are encouraged to act now rather than delay their philanthropic decision. The sooner someone gives in response to an appeal, the more likely they are to give. People who set an appeal aside thinking they’ll get to it later, often do not.

The urgency created by a challenge grant is also useful for planned giving campaigns encouraging donors to include the charity in their Will (Charitable Bequest). People do not like to think about end-of-life planning, so it’s easy for them to keep delaying until it’s too late. A challenge grant creates a sense of urgency that can overcome what social scientists call personal mortality salience.

You can read about a fantastic challenge-grant campaign for planned giving in my book, Donor-Centered Planned Gift Marketing, beginning on page 188.

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April 9, 2018

8 Simple Tips to Boost Planned Giving Results

Planned Giving is a vital source of contributions for the nonprofit sector. Organizations that do not have a gift-planning program envy those that do. Those that do have a planned-giving program want even better results.

It’s no wonder.

Bequest giving amounted to eight percent of all charitable donations in 2016 (Giving USA). That’s just counting people who included a charity in their Will. It does not include people who gave through Beneficiary Designation, Charitable Gift Annuity, Stock, Appreciated Personal Property, or other planned-giving vehicles.

While planned giving can certainly present challenges, there are many simple things you can do to create or enhance your organization’s gift-planning efforts:

1.  Focus Your Efforts

You likely do not have the time or budget to reach-out personally to every one of your organization’s supporters to seek a planned gift. Instead, you need to focus on the highest priority prospects, those most likely to make a planned gift.

So, who are your best planned-giving prospects?

The answer to that question will depend on what type of planned gift you are seeking. For example, if you want more people to include your charity in their Will, arguably the most common form of planned giving, you’ll want to consider two key factors:

First, people who are childless are far more likely to include a charity in their Will, according to philanthropy researcher Russell James, JD, PhD, CFP®. However, just because someone is more likely to make a Charitable Bequest commitment to a charity does not mean they will be willing to commit to your charity.

Second, loyal supporters of your organization are the people most likely to make a planned gift to your specific organization, according to UK-based philanthropy researcher Claire Routley, PhD. Your loyal supporters are people who donate frequently, regardless of gift amount. Loyal supporters are also people who volunteer. People who donate cash and volunteer are nearly twice as likely to make a gift through their Will compared to individuals who do only one or the other, James’ has discovered.

When seeking other types of planned gifts, you’ll want to take into account other factors. For example, if you want people to contribute from their IRA, you’ll want to appeal to people over the age of 70.5, the age of eligibility for such giving. If you want folks to donate appreciated Stock, you’ll broaden your audience because the majority of Americans own Stock.

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March 21, 2018

15 Things You Might Not Know about Planned Giving

There’s a lot about planned giving that’s worth knowing and that can help you raise more money. Fortunately, it’s not necessarily all complicated.

Yes, vast differences exist from one planned giving program to the next. Some nonprofit organizations invest heavily in planned giving with dedicated staff and marketing. Other charities invest little and have development generalists talk with donors about gift planning from time-to-time. Despite the differences from one organization to another, there are a large number of points in common.

To help you be a more successful fundraising professional, I want to share 15 insights about planned giving:

1.  Almost everyone has the ability to make a planned gift. A common myth about planned giving is that it is just for rich people. However, that’s not the case. For example, anyone who owns a retirement account, a life insurance policy, appreciated stock, or a home can be a planned gift donor. As H. Gerry Lenfest, the mega-philanthropist, wrote in the Foreword to Donor-Centered Planned Gift Marketing,  “Planned gifts are the major gifts of the middle class.”

2.  The average age of someone who makes their first charitable bequest commitment is 40-50. Another misconception about planned giving is that it is something that old people engage in. While that’s true for certain planned gifts (e.g., gifts from an IRA, or gifts to set up a non-deferred Charitable Gift Annuity), donors of any age can create a charitable provision in their Will or set-up a Beneficiary Designation.

3.  High-income women are more likely than men to use complex gift planning tools. High-income women (those with an annual household income of $150,000 or more) are more likely than high-income men to seek expert financial advice. They are also more likely to establish Donor-Advised Funds or Charitable Remainder Trusts. So, do not ignore female prospects. Instead, be prepared to talk with high-income women about sophisticated giving options.

4.  Using a challenge grant for a planned gift appeal can create urgency leading to action. Research shows that people tend to avoid conversations or decisions involving their own demise. One way to shift the focus of the planned giving conversation from death is to use a challenge grant to encourage prospects to think about making a planned gift commitment so that the organization receives an extra benefit. A challenge grant also creates a sense of urgency that gives donors a reason to act now rather than further delay making a planned gift decision.

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March 14, 2018

Is Online #Fundraising Really Worth Your Time?

For years, nonprofit organizations have invested significant amounts of time and money to build online fundraising efforts that have steadily evolved to embrace more and more sophisticated technologies and methods. But, are those efforts really worthwhile?

The Blackbaud Institute’s recently released Charitable Giving Report: How Fundraising Performed in 2017 can help us answer that question.

The news about overall philanthropy in 2017 is good. Blackbaud reports:

A convergence of economic, political, technological, and philanthropic trends helped boost giving in 2017. The 4.1% increase in giving during 2017 was a substantial jump compared to relatively flat growth in 2016. A strong stock market, spikes in giving in response to political issues or disasters, and the continued shift to digital giving all influenced giving in 2017. This growth was also fueled by a 5.1% increase in giving during the final three months of 2017. The potential implications of new U.S. tax laws may have contributed to this late surge in charitable giving.”

The news about online giving is also good. Blackbaud has found:

  • 7.6% of overall fundraising revenue, excluding grants, was raised online representing a new record high.
  • Online giving grew 12.1% in 2017 compared to 2016.
  • 21% of online transactions were made using a mobile device in 2017.
  • The average online donation is $132.
  • 20.1% of online giving happened in December.

Online is an important source of donations for nonprofit organizations of every size as the following chart illustrates:

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March 6, 2018

3 Powerful Ways to Get Your Monthly Donors to Give More

A few weeks ago, I published the post “How to Get Last Year’s Donors to Give More this Year.” Guest blogger Joe Garecht shared some great advice for increasing giving. However, the post did not specifically address the issue of monthly giving. That led to a reader comment.

Larry Little, President of Guardian Angel Basset Rescue, raised some important questions:

Our revenues are in the $300k range but approximately 30% of that comes through our monthly giving program. My question is about asking monthly donors to increase their amounts. How often should that be done? And should you segment your list and ask that segment every 18 months?”

First, I want to congratulate Little for having a robust monthly-giving program. Well done!

Second, I thank Little for inspiring this week’s post. While I could have given him a quick, brief response, I realized the topic deserves more attention and that it would likely be of interest to many of my readers. So, I invited expert Erica Waasdorp, President of A Direct Solution and author of the best-selling book Monthly Giving: The Sleeping Giant, to share her wisdom to help us better understand how to inspire greater giving from monthly supporters. I thank her for her insights:

 

It’s wonderful to see how much the focus is shifting to monthly giving, and it’s starting to really pay off for nonprofit organizations. Here are just two recent statistics from the most recent Blackbaud Luminate Online Benchmark Report:

Expanding relationships with existing supporters was the name of the game this year as we saw a 20.4% growth in sustainer revenue.”

Viewing online revenue as one great big pie, we saw a larger slice of the pie—8.4% more—coming from sustainer gifts in 2017.”

Today, I’m not going to write about how to convert your donors to give monthly. Today, I’m going to focus on how to generate more money from your existing monthly donors.

Just because they’re now giving more money than as single-gift givers doesn’t mean it ends there. Oh no! There are three ways you can actually ask your monthly donors to give more money:

1.      Ask for a monthly upgrade.

2.      Ask for an additional gift.

3.      Ask for a legacy gift.

Ask for a monthly upgrade.

People typically ask me two questions: A) How soon after a donor starts giving monthly can I ask for an upgrade? B) How often can I ask for an upgrade?

Before I address the timing questions, let me just point out that donors upgrade because they have been stewarded effectively. Totally true. And this also pertains to monthly donors. That’s why I always “hammer” on the importance of sending a hard-copy thank-you recognition letter even if the monthly donor came in online.

So let’s assume that you’ve done this part right. And let’s assume that your donor gives monthly through his or her credit card. And let’s assume that you send the donor a quarterly newsletter with some great stories and updates on how the donor’s giving makes a difference.

I’ve seen organizations that started to upgrade right away. I’ve seen organizations that started to upgrade three months after a monthly donor joined. Frankly, I think that’s just too soon. Yes, you may get some donors to upgrade when you ask, but I think you’d also come across as much greedier than you may wish to. That could alienate some supporters.

Your donor has just started to get used to giving monthly. They’re just getting acquainted with your stewardship efforts. They have just started to realize the convenience of giving this way.

You pay taxes typically once a year; you update your budget once a year, so I suggest asking for an upgraded amount once a year, ideally between 10 to 12 months after the donor gave monthly for the first time. That’s when you can make a legitimate case for the increase in cost for xyz service, and ask the donor if he can “give just a few dollars more a month” to help the children/client/animals.

And, as Joe Garecht mentioned in his earlier post, the four elements of asking monthly donors to increase their monthly gift are indeed:

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February 22, 2018

What do Abraham Lincoln and Jennifer Lawrence have in Common?

President Abraham Lincoln and actress Jennifer Lawrence each learned something that can help your fundraising efforts. Before I tell you what that is, let me share a bit of history with you.

Earlier this week, the USA celebrated Presidents Day. Congress originally established the Federal holiday to commemorate the birth of George Washington, the nation’s first President, born on Feb. 22, 1732. At some point, the holiday also began to include Lincoln, born on Feb. 12, 1809. Then, all of the US Presidents were lumped into the holiday. Well, sort of. Despite its commonly excepted name — Presidents Day — it remains officially Washington’s Birthday.

To honor a President this week, I thought I’d share some wisdom from one of them. Then, as I was preparing to write this piece, I stumbled upon an article about Lawrence, and realized she has learned the same lesson as Lincoln.

Paraphrasing 15th century poet John Lydgate, Lincoln is believed to have stated:

You can please some of the people some of the time, all of the people some of the time, some of the people all of the time, but you can never please all of the people all of the time.”

Lawrence, definitely in a different league than Lincoln, has nevertheless learned the same lesson. While she likely had this insight well before this year’s British Academy of Film and Television Awards, she had a reminder of it resulting from an interview hosted by Joanna Lumley.

Lumley introduced Lawrence by saying, “And we start with the award for Outstanding British Film and who better to kick the whole evening off than the hottest actress on the planet? Soon to be seen in ‘Red Sparrow,’ it’s the ravishing Jennifer Lawrence.” The American actress then came out and modestly said, “Hi. That was a bit much, but thank you, Joanna.”

Following the exchange, the social media battle began. Some people thought that Lawrence was being “discourteous,” “a spoiled brat,” “rude,” and more. On the other side, there were plenty of people who sided with the actress with one even questioning, “How is that rude?”

Lincoln Memorial

Yes, you can never please all of the people all of the time.

That’s an important lesson for all of us.

Your fundraising plan will not make everyone happy. Your direct mail copy will not make everyone happy. The graphic design for your annual report will not make everyone happy.

At some point in your career, likely far more than once, you’ll hear, “We can’t do that here. We’ve never done it that way.” You might even have someone in upper management comment negatively on your direct-mail appeal because it’s not how she would write a letter to a friend — “Do you really need to use bullets and boldface?”

You get the idea.

You just need to understand that you will never make everyone happy all of the time. When confronted by senseless criticism based on emotion rather than knowledge, keep these five points in mind:

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January 30, 2018

Russell James: Three for the Price of FREE!

One of the nation’s leading philanthropy researchers provides us with helpful insights about the new tax code and its impact on charitable giving. He also offers valuable information about planned giving.

Russell James, JD, PhD, CFP® articles, books, and videos will benefit any fundraising professional. Here are just three that will be a big benefit to you:

1. A Donor’s Guide to the 2018 Tax Law (video)

In just nine-and-a-half minutes, James explains how key provisions of the new tax code can benefit donors. With his insights, you’ll be in a better position to inspire more donations and larger gifts to your nonprofit organization. Simple illustrations and great examples will help you easily grasp the concepts.

Do you know?: Just one of the things you’ll learn from the video is that donors can contribute appreciated stock to avoid capital gains tax. Even non-itemizers can benefit from this. While this provision of the tax code remains unaltered, what has changed is that the new code makes this provision even more valuable for donors. James explains how in the free video:

2.Visual Planned Giving: An Introduction to the Law & Taxation of Charitable Gift Planning (e-book, updated January 2018)

I’m honored that James has allowed me to offer you a free copy of his 433-page e-book Visual Planned Giving: An Introduction to the Law & Taxation of Charitable Gift Planning. James designed the newly updated book for fundraisers and financial advisors seeking to expand their knowledge about charitable gift planning. This introductory book addresses all of the major topics in planned giving law and taxation in an accessible way.

Do you know?: Wealth is not held in cash. It’s held in assets. James has found that only one percent of financial assets are held in cash! So, if you want larger donations, you need to talk with supporters about making a planned gift from non-cash assets (e.g., stocks, personal property, real estate, retirement accounts, life insurance, etc.).

If you want to learn more about planned giving or help a colleague gain a fundamental understanding, you can download your free copy of Visual Planned Giving by clicking here.

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January 26, 2018

Are You Making the Same Mistake as Whole Foods Market?

Whole Foods, a supermarket-industry leader recently acquired by on-line retailer Amazon, has received some bad publicity this month. Consider the following headline appearing in The Boston Globe:

Empty Shelves at Whole Foods Have Customers Going Elsewhere”

The Globe reports that many customers are beginning to shop elsewhere because of empty shelves and declining quality:

Whole Foods customers in Bellingham have been struggling to find English cucumbers and sweet onions. In Newton, shoppers have been disgusted to realize that the organic celery they purchased was mostly rotten. Shoppers in Hingham have complained about half-rotten bags of clementines, while those in Newtonville say they were unable to purchase tofu all last week.”

My wife and I shop at a Whole Foods Market just a few blocks from our home in Philadelphia. We’ve experienced similar problems with out-of-stock or poor quality items. Now, we shop far less often at Whole Foods, despite its convenient location. Instead, we increasingly shop elsewhere. For example, MOM’s Organic always has a great selection of high-quality items. In addition, we’ve found that our local Acme Market, a traditional supermarket, has a better selection of high-quality organic items than our Whole Foods.

Whole Foods is making a number of serious mistakes:

  1. assuming it can rely on brand loyalty and its now outdated reputation.
  2. being unresponsive to customer needs.
  3. ignoring the fact that customers have options of where to shop.

Sadly, those are three mistakes that many nonprofit organizations also make. As a result, donor-retention rates are pathetically low. The average overall donor retention rate is approximately 45 percent, according to the 2017 Fundraising Effectiveness Survey Report. The Fundraising Effectiveness Project is a partnership between the Association of Fundraising Professionals and The Urban Institute. The FEP website provides a variety of reports and helpful tools for enhancing donor retention.

Many charities think they can rely on their reputations to achieve strong donor retention rates. Unfortunately, while that might have been the case with brand-loyal Baby Boomers, it’s no longer the norm. Donors want to know that their gifts are making a difference. Moreover, they’re not willing to assume you’re using their money wisely. They want evidence of your effectiveness.

Nonprofit organizations need to be responsive to donor needs. Every member of your organization’s staff, not just fundraising professionals, should be trained to meet the needs of donors. You can read more about this in my post: “The Most Important Part of Any Grateful Whatever Campaign is…

If you don’t provide a meaningful experience for donors by providing them the information they demand and by meeting their varied needs, they will stop giving to your organization. However, that does not mean they will stop giving. They will simply give elsewhere.

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January 12, 2018

Hang-on to the Holiday Spirit with FREE Gifts and Resources to Raise More Money!

For most of us, whether we observe Hanukkah, Christmas, or just the New Year, the holiday season is an uplifting time full of joy. However, the same cannot always be said of the post-holiday period, according to Linda Walter, LCSW. Her article in Psychology Today cites many reasons for the post-holiday blahs, for some, even depression.

As an antidote for the after-holiday letdown, I want to share several free resources with you that just might help you keep the holiday spirit going while also helping you raise more money in 2018.

The Donor-Advised Fund Widget. For starters, let me tell you about the Donor-Advised Fund Widget created and offered free-of-charge by the generous folks at MarketSmart. This useful, free gift will help you continue to celebrate the season and raise more money for your nonprofit organization.

When it comes to fundraising, a general rule is: Make it easy for people to give your organization money. You probably already do this in a number of ways. For example, your organization probably allows donors to place gifts on their credit card, mail a check in a business reply envelope you supply, give online, or contribute when they buy products (e.g., Amazon Smile).

So, why not also make it easy for someone to recommend a donation from his or her DAF account?

Rather than viewing DAFs as enemies that divert vitally needed funds away from charities, nonprofit organizations should view DAFs as a great fundraising opportunity. Unfortunately, the problem is that nonprofits have not made it easy for people to donate from their DAF accounts…until now.

Greg Warner, Founder and CEO of MarketSmart, says:

Amazon is successful primarily because they make it easy to buy stuff. Similarly, if nonprofits just made it easy to transfer DAF money, the bottleneck would get un-clogged. But no one was stepping up. So I did!”

The DAF Widget goes on your organization’s website. Your donors with DAF accounts then can easily find their account management company from a comprehensive list of over 800 service providers. Then, they simply click to go directly to their DAF management company’s website where they can enter the relevant information to make a donation recommendation for your organization. To see the widget live, visit the Navy-Marine Corps Relief Society website by clicking here.

DAFs are an increasingly valuable source of donations for charities. Consider the following market-wide insights from The National Philanthropic Trust 2017 Donor-Advised Fund Report:

  2012 2016
Number of DAF Accounts 204,704 284,965
Total Assets in DAF Accounts $44.71 billion $85,15 billion
Grants from DAF Accounts $8.5 billion $15.75 billion
Ave. DAF Asset Size $218,413 $298,809

To put the above figures into context, non-corporate private foundations gave $45.15 billion to charities in 2016. By contrast, donations made from DAFs totaled $15.75 billion that same year, equating to roughly one-third (34.8 percent) of the estimated amount granted by non-corporate private foundations.

In other words, DAF donations represent a significant and growing source of gifts for nonprofit organizations. However, to get your share, you need to make it easy for people to recommend donations from their DAF accounts. That’s why MarketSmart created the free DAF Widget.

You can learn more about the DAF Widget and claim yours by clicking here.

There is just one catch, if you want to call it that. The DAF Widget is in its Beta Edition. So, MarketSmart is looking for feedback, either directly or through comments below. Then, Greg promises to invest more time and money to make the DAF Widget even better. So, if you use the DAF Widget, please let us know how you think it could be made easier to use and more effective.

Here are seven additional resources for you to help get 2018 off to a great start:

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December 29, 2017

Do Your Colleagues Know Something You Don’t?

Keeping on top of all of the latest fundraising, marketing, and nonprofit management information can be a real challenge. After all, you have a full-time job. Your boss expects you to raise a lot of money, probably more than last year. It keeps you busy.

Unfortunately, having a hectic work life could mean that you’ve overlooked some useful information that actually could help you achieve your goals more easily.

So, what’s the information that your colleagues found most interesting in 2017 that you should be sure not to miss?

Here is a list of my top ten most read posts published in 2017:

  1. Here is the One Word You Should Stop Using
  2. Delivering More of My Own Bad News
  3. 5 Mistakes that Could Cost You Year-End Donations
  4. What is the Most Important Thing a Donor Can Give You? … It’s Not What You Think It is.
  5. The Best Fundraising Blogs You Should be Reading
  6. Your Charity is Losing Big Money If It Ignore This Giving Option
  7. What are the Obstacles to Improving Donor-Retention Rates?
  8. What is the Special Ingredient that Leads to Fundraising Success?
  9. Philanthropy Will Increase in 2017 and 2018
  10. Do the Numbers Tell the Full Story?

Here’s a list of five of my older posts that remained popular this year:

  1. Can You Spot a Child Molester? Discover the Warning Signs
  2. Can a Nonprofit Return a Donor’s Gift?
  3. 5 Things Never to Do in Your Phone Fundraising Calls
  4. Special Report: Top 40 Most Effective Fundraising Consultants Identified
  5. 16 Tips for Crafting a Powerful Postcard Campaign

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. This year was no exception. I’m pleased that I was once again recognized in Bloomerang’s list of “100+ Fundraising Blogs You Should Be Reading in 2017.”

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.

To make finding interesting blog posts by others a bit easier, you might want to join the LinkedIn Discussion Group I created: Blog Posts for Fundraising Pros & Nonprofit Managers.

This is a LinkedIn Group for blog authors and the fundraising professionals and nonprofit managers who read them. Bloggers can promote their latest posts and readers can easily find those that interest them most and engage in thoughtful conversation, all in one place.

The site provides a welcoming environment for blog authors where they can freely promote their posts. It is also a safe place for readers who may not want to subscribe to multiple blog sites but who want to easily scan the great information that is available across blogs.

I also want to take this opportunity to thank you and all of my readers. I appreciate that you stood by my side during what was a profoundly challenging year for me. A fierce battle with cancer forced me to take a lengthy leave-of-absence this year. Now, I’m delighted to be back. You can read about my battle in the following posts:

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