Posts tagged ‘marketing’

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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January 15, 2019

Have You Done Something Stupid to Alienate Donors?

As 2018 drew to a close, my wife and I received a few good emails from nonprofit organizations. I even highlighted one of those in a recent blog post. Unfortunately, we received far more fundraising appeals that I can only describe as stupid.

The garbage email appeals simply mentioned that December 31 was fast approaching and, therefore, I should donate to that particular charity while there was still a chance to do so in 2018. Doing multiple count-down to year-end emails simply magnified the annoyance.

So, what’s the problem with that? Let me make it simple and clear:

The calendar is not a case for support!

Jack Silverstein, Vice President of Financial Development at the National Capital Region YMCA-YWCA (Ottawa, Canada), shares my frustration over this. He recently posted his views in “People Know When the End of the Year Is!!!” I encourage you to read it though it does contain a word some may find offensive.

Because I agree with Silverstein, I want to provide some highlights for you.

Your prospects and donors know when the year ends. They don’t need you to remind them. They’re not idiots.

With most charities engaged in year-end fundraising, people want to know why they should give to your nonprofit organization and why they should do so at the end of the year. The mere fact that it is year-end is not a reason. People can donate to any charity at year-end or, for that matter, at any time of year. You need to inspire them to give to your organization. In other words, you need to make a case for support.

A related mistake that charities frequently made was to highlight the tax-deductibility of donations. In the USA, some have estimated that as few as 10 percent of taxpayers will itemize. It’s only that small population that might be able to take advantage of the tax-deductibility of a contribution. However, even among that population, tax benefit is a low ranking reason why people donate. Furthermore, it’s no reason whatsoever why they should donate to your organization; after all, people can get the same tax benefit by donating to any qualified charity.

When charities send such terrible appeals, they are not being donor centered. Instead, Silverstein asserts:

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December 13, 2018

Will One Charity’s Surprising Year-End Email Make You Look Bad?

This week, I received a surprising email from a national charitable organization. The email was so unusual that I need to tell you about it.

Like you, I’m deluged by emails from charities that arrive from the days leading up to #GivingTuesday through December. Most of the messages are from nonprofit organizations that forgot about me all year except now that they want my money. Most care nothing about me. None offers to help me or be of service to me. Most of the emails are just terrible.

One awful email came with the subject line, “Welcome to [I’m deleting the name of the organization].” Sounds nice enough, right? There’s just one tiny problem. I’ve been a donor for decades and even did a tour of duty as a trustee of the large organization. Ugh!

Given the garbage in my email Inbox, I was a bit relieved when I received a remarkable email from the Charities Aid Foundation of America.

WARNING: The email is so wonderful that it just might make you and your organization look bad.

Look for yourself, then I’ll explain why this is a near-perfect email and why you should immediately do something similar before it’s too late:

[Note, the actual email formatting was a bit better than the image I was able to capture for you. Ah, technology!]

Let me explain why this email works so well.

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December 6, 2018

Can the Dalai Lama Help You Raise More Money?

Last week, I saw a tweet from the Dalai Lama that is relevant for fundraising professionals.

Your first reaction to this post might be, “Gee, I didn’t know the Dalai Lama has a Twitter account.”

Well, he does, and he has 18.8 million Followers. For some context, I’ll point out that the Twitter account of Pope Francis has 17.8 million Followers. In a comparison that may explain some of what is going on in the world, let me just mention that Kim Kardashian has 59 million Twitter Followers. Oh well.

So, the tweet from the Dalai Lama that resonated with me as a fundraising professional is this:

“Even more important than the warmth and affection we receive, is the warmth and affection we give. It is by giving warmth and affection, by having a genuine sense of concern for others, in other words through compassion, that we gain the conditions for genuine happiness,” tweeted the Dalai Lama.

The 14th Dalai Lama of Tibet.

This is the essence of donor-centered fundraising. Yes, I know you like it when people donate to your organization. But, if you want that support to be something more than a one-time and/or limited transaction, you need to show donors you care about them, their needs and philanthropic aspirations. When practicing donor-centered fundraising, you will be able to develop the conditions for genuine happiness. I’m talking about the happiness of your donors, your happiness, your boss’s happiness, and the happiness of those who benefit from the services of your organization.

By treating people the way they want to be treated, you’ll acquire more donors, renew more donors, upgrade more, and receive more major and planned gifts from donors. In short, you’ll increase the lifetime value of your organization’s supporters.

Penelope Burk, in her book Donor-Centered Fundraising, describes what she means by the term:

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