Posts tagged ‘marketing’

May 20, 2020

Your Charity’s Greatest Opportunity is the Rising Need of Donors to Connect

The coronavirus (COVID-19) pandemic has presented fundraising professionals with a large number of significant difficulties. One of those challenges is trying to figure out where to get solid, actionable information to help nonprofit organizations raise much-needed funds.

Now, Prof. Jen Shang, Co-Director of the Institute for Sustainable Philanthropy, comes to our rescue. On Friday, May 22, 2020, she will be presenting a special webinar: “How to Love Your Donors During COVID-19.” I recently received an email from Prof. Shang, along with three tips, that she is kindly allowing me to share with you.

Prof. Shang, the world’s only philanthropic psychologist, has found that the pandemic is causing donors to feel a lack of wellbeing. This is due in large part to a decrease in the sense of connection that people feel during the lockdown. Interestingly, this presents an opportunity for your charity.

When you help your donors feel a sense of real connection, you will help them feel a greater sense of wellbeing. When they associate that greater sense of wellbeing with your nonprofit organization, they will be more likely to renew and increase their support now and well into the future. In other words, by taking care of your donors, you will be taking care of your charity.

One of the things that will make this webinar a valuable experience for you is that it is based on scientific research rather than simply relying on war stories or opinion. In other words, the many bright ideas you’ll learn will be solid and safely actionable. As someone who has taken Prof. Shang’s Philanthropic Psychology course, I can personally assure you that you will get meaningful information that will help you enhance your fundraising efforts.

Here is Prof. Shang’s message:

 

COVID-19 has created such uncertainty in our lives that many are wondering how and when life will ever get back to normal and how we will survive it all in the meantime.

At the Institute for Sustainable Philanthropy, we have not stopped collecting data since the first country locked down at the beginning of this pandemic. And we have been collecting data on how good people feel every other week since.

This [post] will give you a first sneak peak of the findings, and three tips on what to do NOW that you’ll find at the end.

We will release the full results of these studies in a webinar that we will host twice this Friday, May 22 at 6:00 am UK time and again at 3:00 pm UK time.

We studied over 4,000 adults in the US and other countries.

We measured about 30 feelings that people experienced on a daily basis. We found that people’s feelings significantly worsened during the first six weeks of the pandemic. As the lockdown continued, people felt progressively worse.

Specifically, people felt less connected to others.

Psychologists have known for decades that feeling connected to others is one of the three most fundamental needs we have as humans. Our need to have this fulfilled cannot be changed. It is as certain as our life exists. Our sense of connectedness declines when we are isolated in lockdown, when we cannot physically see anyone or talk to anyone, and when we cannot hug anyone or kiss anyone. We have seen our connectedness score declining for over six weeks now.

There is no uncertainty in any of it. When humans are locked down, their need to connect rises. With data, we also know what they need and in what quantity.

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May 6, 2020

What is the Secret Sauce of Fundraising Success?

Once upon a time, there was a fundraising professional who found the recipe for the secret sauce of fundraising success. Through decades of dedicated work and careful research, she honed her skills. Now, she shares the secret with you in a book recently ranked by the BookAuthority as one of the “100 Best Fundraising Books of All Time.”

I’m talking about Lynn Malzone Ierardi, JD, Director of Gift Planning at The University of Pennsylvania. She offers her insights and wisdom in the 112-page book, Storytelling: The Secret Sauce of Fundraising Success. Don’t let the short length fool you. This is a volume stuffed full of valuable goodies.

As the official book description says:

Nonprofit organizations have amazing stories to share — stories of perseverance, fortitude, and generosity.

Stories give nonprofits a way to stand out in a world that gets noisier every day, where people are looking for ways to find meaning and connection.

Great stories engage donors and raise more money. Scientific evidence confirms good storytelling is one of the most powerful ways to engage stakeholders and influence behavior. Stories raise awareness, change behavior, and trigger generosity. Facts and logic are not nearly as persuasive as a good story. Stories penetrate our natural defense systems and become more compelling and memorable. As a result, great stories can be very powerful.

Like a good meal, storytelling can be delicious if it is executed with a bit of strategy. It requires planning the meal, choosing and collecting the right ingredients, and then sharing the meal with the right people, in the right setting, and at the right time.”

Throughout her book, Lynn uses a creative cookbook metaphor. This fun approach to a serious subject keeps the material from being dull and makes the tips easier to remember. Lynn does more than tell us why stories are important. She shows us what information is valuable (ingredients), how to gather the necessary information (shopping), how to effectively share stories (serving the entrée), how to craft the right story for the right situation (adding spices), how stories can be presented in different ways (side dishes), how to use stories to navigate change (the kitchen mishap), and the magic of success stories (a good dessert).

For years, we’ve heard that good storytelling is an important part of good fundraising. In Lynn’s practical book, you’ll find numerous, easy to follow tips for putting that notion into practice. Furthermore, you’ll learn how you can use storytelling to put board members and volunteers at ease when seeking to engage them in the fundraising process. I thank Lynn for her willingness to share some bonus thoughts with us along that line:

 

Snakes. Heights. Public speaking. Asking for money. Even worse: asking friends for money.

These things can make people really uncomfortable. In fact, for some people the mere suggestion of these things increases their heart rate or makes their palms begin to sweat. “Don’t even ask me to do that!”

So, it comes as no surprise that nonprofit CEOs, board members and volunteers (and even the unseasoned fundraiser) can sometimes be reluctant to ask for money.

It’s one thing to get people to roll up their sleeves to help, or to get those same people to donate to a cause they believe in. It’s another thing to find board members and volunteers who are willing and able to be effective fundraisers for your organization.

Too often, very well-intentioned board members and volunteers will say “I’m happy to give you my time and my money – but please don’t expect me to ask for money. I can’t approach my friends for money – and I certainly won’t ask them for an estate gift!”

In most cases, board members have no formal training as fundraisers. They may have the business and interpersonal skills necessary to ask for a significant gift – but have no practical experience in that realm.

Fundraising staff can struggle with making an ask, too – particularly for a planned gift. A new planned giving fundraiser visited with me over coffee earlier this year. She described meeting with the same donors and prospects several times, getting to know them and discovering their interests and passions, thanking them for their past support – but struggling to make the pivot in the conversation to ask for a planned gift. She asked me “How do you ask someone to consider their own demise – and ask whether they’ve included our organization in their estate plans?” It can be uncomfortable when you look at it that way.

But there are other ways to approach the conversation. Storytelling provides a different perspective. People are more attentive, more responsive, and more generous when they are engaged in a good story. In the noisy world in which we live – with constant news, updates, mail, video, social media, and more – the most effective way to communicate and influence is with stories.

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April 28, 2020

Warning Signs You Need to Know About

While the nonprofit sector continues to raise massive amounts of money, danger lies ahead for fundraising professionals as the coronavirus health crisis leads us further into an economic calamity.

As the COVID-19 pandemic gained traction, individuals, corporations, and foundations have responded with robust giving. For example, individual giving revenue through direct mail, processed by Merkle RMG, has increased 5.8 percent year-over-year even while the volume of donations dropped by 15.5 percent, according to Merkle RMG’s Impact Report, COVID-19: How the Coronavirus Pandemic is Impacting Direct Mail Fundraising (transactions through April 19, 2020).

The initial philanthropic response to the pandemic is not surprising for those who have experienced major challenges in the past. Giving lags changes in economic conditions. For instance, during the Great Recession (2007-09), we also saw a similar philanthropic pattern with revenue initially increasing while the number of donors declined. The following graph from Target Analytics, a Blackbaud company, illustrates the point:

Now, let me just mention that no one has a crystal ball or time machine. Therefore, no one, including me, can precisely predict what will happen and when it will happen. Nevertheless, we do know that during past crises, we saw that charitable giving fell after an initial surge.

The overall economy has a profound effect on philanthropic giving. We know that overall philanthropy correlates with Gross Domestic Product at the rate of about two percent. Furthermore, historical data shows that individual giving correlates with personal income at the rate of roughly two percent. In other words, when the economy is strong, giving will be strong; when the economy falters, giving will slow.

Because the coronavirus pandemic has caused a major global economic disruption, we can anticipate that this will eventually have a negative effect on philanthropic giving. Consider these warning signs:

As corporations see profits eroded, as foundations see investments decimated, as individuals see personal income slashed, charitable giving will likely decrease. However, there are some mitigating factors in play:

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January 7, 2020

What Can You Learn from “The Naked Philanthropist”?

Kaylen Ward, who refers to herself as “The Naked Philanthropist,” has a few things she can teach you about fundraising.

The first thing the 20-year-old can teach you is the value of being honest when promoting yourself and your organization. “The Naked Philanthropist” is not a euphemism. Ward really has donated money she earned by posing nude. Furthermore, by leveraging her nudity, she encourages others to give as well.

Kaylen Ward — The Naked Philanthropist

The raging wildfires in Australia caught the attention of Ward, a resident of California, a state often plagued by brush fires. She decided to take action.

“I donated $1,000 myself,” she tells Guardian Australia. “I had a substantial amount of followers, maybe 30,000 at the time, and I thought that a lot of my followers would pitch in and send in some donations for the wildfires.”

While Instagram has suspended Ward’s account, her Twitter account now has over 288,000 Followers (Jan. 7, 2020). More importantly, Ward tells the Guardian that she estimates that $700,000 has been donated as a result of her efforts in just four days!

Here’s how Ward did it. On January 3, she tweeted (below) that she would Direct Message a nude photo of herself to anyone who provided proof that they had donated $10 or more to any number of charities dealing with the Australian fires, ranging from the Australian Red Cross to the World Wildlife Fund – Australia. Her tweet, liked over 198,000 times, includes a list of qualifying charities (below) and a barely censored image of herself (not shown).

So, here are just six things you can learn from Ward:

1. Do not fall victim to generational stereotypes.

Ward is a member of Generation Z. Gen Z is the cohort following the Millennial Generation. It’s easy to make the mistake of thinking that younger people are not particularly philanthropic. They tend not to give as much to charity as older people, and they tend to be less brand-loyal than those of older generations are. However, that doesn’t mean that younger folks aren’t generous relative to their personal income. Furthermore, just because they may not have developed loyalty to a particular charity does not mean they have no interest in philanthropy. In Ward’s case, she not only gave $1,000 of her own money, she encouraged tens of thousands of other people to donate as well.

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December 17, 2019

George Orwell’s 6 Rules for More Effective Writing

Successful fundraising professionals must be effective communicators. In part, that means we are required to be skilled writers whether we’re creating a case for support, a direct mail appeal, annual report, heart-felt thank you, or other document. Fortunately, we can still learn some powerful writing tips from a legendary author.

George Orwell published his now-classic novel Nineteen Eighty-four 70 years ago. In addition to his many works of fiction, he also wrote a number of non-fiction essays including Politics and the English Language. This composition explores the general demise of writing quality and looks at how language has been twisted for political advantage. It remains relevant today.

As Orwell states:

A man may take to drink because he feels himself to be a failure, and then fail all the more completely because he drinks. It is rather the same thing that is happening to the English language. It becomes ugly and inaccurate because our thoughts are foolish, but the slovenliness of our language makes it easier for us to have foolish thoughts. The point is that the process is reversible. Modern English, especially written English, is full of bad habits which spread by imitation and which can be avoided if one is willing to take the necessary trouble.”

You or I may never rise to the level of an Orwell, but we can take a number of steps to improve our written communications. By doing so, we will ensure that readers understand what we say. Furthermore, our words will have the greater emotional effect we desire. While many grammar and technical rules exist, and are certainly worth studying, Orwell outlines six simple rules for better writing:

1. Never use a metaphor, simile, or other figure of speech which you are used to seeing in print.

Failing to follow this rule leads to two problems. First, relying on clichés minimizes the effect of the message. If people have heard something many times before, they will likely find the message dull. Second, using clichés can render a message nearly meaningless or even misleading.

By keeping your writing fresh and original, your message will stand a better chance of cutting through the clutter of messages. This will help your written words resonate with readers and inspire them.

2. Never use a long word where a short one will do.

Some people might think that using big words will demonstrate how smart they are. However, using the shortest words possible will ensure that more people understand what you are trying to say. Using shorter, simpler words will indicate, to those who know better, that you are a skilled writer.

To ensure that readers understand your messages, keep your word choices simple. Even when writing to an educated reader, keep it simple.

3. If it is possible to cut a word out, always cut it out.

Choosing simple words is not enough. You also need to string those words together in short sentences. Your goal should be to write at a sixth-grade reading level.

Even those at a college reading level will find it easier to read and understand text that uses short words and short sentences. As you edit your text, think of how you can eliminate unnecessary words.

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November 26, 2019

Is One Charity about to Make You Look Bad?

The Charities Aid Foundation of America might have made your nonprofit organization look bad last year. Warning: They’re about to do it again!

Let me explain.

If you’ve sent your year-end appeal, written a solid thank-you letter series, and prepared a donor-engagement plan, you might believe you’ll be all set to take a holiday break between Christmas and the New Year. If that’s what you’re thinking, you’re not alone. Many charities operate with a skeleton staff between the holidays while others shutdown completely.

However, while many nonprofit organizations wind down in the closing weeks of the year, many donors are gearing up their philanthropic activity. Many donors make their philanthropic decisions at the end of the year, often in the closing days of the year. While the current federal tax law means fewer people itemize their deductions when filing their taxes, many of those people still make late year-end charitable gifts. Furthermore, many wealthy people who do itemize will wait until the closing days of the year before making their philanthropic gifts.

Some of your year-end donors will have questions. They may wonder about the best way to give (i.e., cash, appreciated stock, Donor Advised Fund recommendation, etc.). Others may have questions about your organization’s programs and areas of greatest need. Still others may simply need to know the formal name of your organization to put on their check.

If individuals with questions are unable to reach you for answers, they may not give or they may give elsewhere. This is something CAF America understands.

Last year, Ted Hart, ACFRE, CAP, President & CEO of CAF America, sent an email wishing donors a happy holiday and announcing his organization’s extended holiday hours. Not only would someone be available throughout the holiday season, staff would be available until 8:00 PM EST, well beyond standard business hours. Hart provided an email address and phone number. The email encouraged recipients to reach out if they needed any help or had any questions. You can find a copy of Hart’s email message and my detailed analysis of it by clicking here.

Underscoring his organization’s donor-centered orientation, Hart concluded his message by writing:

It is our pleasure to be of service to your domestic and international philanthropy on a timetable that suits you best.”

Hart’s email let supporters know that the organization is there to meet their needs on their terms. Even if they didn’t need to contact the organization as December 31 approached, they still appreciated knowing that the organization cared enough about them to remain accessible.

Based on the response to last year’s extended hours, CAF America will be doing the same this year beginning December 9. Hart explains, “We had many donors who made use of the extended hours. Many are very busy during the holidays and regular business hours do not always support busy holiday schedules.”

By comparison with CAF America, does your organization look good or bad as the year comes to a close?

I’m not suggesting that you need to stay at your desk through the end of the year. However, I am suggesting you remain accessible. Fortunately, technology allows you to be reachable without having to remain in the office. For example, you can set email alerts on your cell phone. Also, you can forward your office calls to your cell phone. So, whether or not you remain in the office, you can still be available to individuals contemplating a donation to your organization.

If, like CAF America, you let people know that you will remain available, you’ll be showing them that you care about them. Your organization’s supporters will appreciate the extra effort you make to be of service even if they don’t have any year-end needs.

At this time of year, the public expects to be inundated with charity appeals seeking support. What people do not expect is a message offering good wishes and service. So, pleasantly surprise folks this holiday season. Show individuals you care about each of them by letting them know you’re there for them. Offer them assistance. Give them an opportunity to engage. Provide useful information.

To determine if your organization is donor centered as the year draws to a close, ask yourself these questions:

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November 12, 2019

A Pro Baker Knows 3 Things that will Help You Raise More Money

Chef Stefan Zareba is an award-winning baker and successful businessman. His tasty, artistic creations have impressed visitors at leading resorts around the world. My wife and I recently met Zareba, and learned three keys to his success. Interestingly, those three things can also help you be a more effective fundraising professional.

My wife and I recently spent a few days relaxing at the New Jersey shore. Beautiful weather and the Monarch Butterfly migration made our visit special. At the suggestion of a family member, we visited Blue Dolfin Sweets, a European bakery in Marmora, NJ. When we entered, Zareba greeted us as if we were regulars despite it being our first visit.

When Zareba saw that we were a bit overwhelmed by our options, he began offering us free tastes. When I remarked about the intense flavors, Zareba shared his baking philosophy. He believes in using carefully sourced, natural or organic ingredients. His flour comes from Minnesota, his chocolate from Belgium, his fruits from farmers he knows, his butter from Europe. At the Blue Dolfin, you won’t find agave syrup, high-fructose corn syrup, or chemicals and artificial additives.

Zareba believes pure, wholesome ingredients produce products, when crafted with skill, that taste better. He’s right. Not only do his creations taste better, the flavors he produces are more intense and bright than you would ever experience from a bakery chain.

So, here is what I learned during my visit with Chef Stefan that can help you:

Intense Passion. Zareba spoke with my wife and me as if we were the first customers he had seen that day. As it was well into the afternoon, I know that definitely was not the case. Nevertheless, Zareba was energetic, friendly, and helpful. He patiently answered our questions, and told us about himself and his baking experience. That’s how we learned about his baking philosophy. Seeing someone so passionate about his work was remarkable. I don’t know quite how to make my point vividly. Let me try this. Instead of simply selling baked goods, Zareba shares his creations. Moreover, when he sees you enjoying a bite, he smiles with his entire being.

Do you have that kind of passion for your organization and its mission? Do you believe that your organization is the best at what it does? Are you proud to work for your organization? If you’ve answered “yes” to each of those questions, do you convey that feeling to those with whom you interact?

In many cases, prospects and donors will take their cues from you. If they sense that you have lukewarm feelings for your charity, they likely will as well. However, if they sense your passion, they may very well be more receptive to your appeal.

Years ago, I co-owned a pioneering phone fundraising company, The Development Center. Over the years, we employed some callers who did just about everything wrong despite trying their best. They got tongue-tied when talking with prospects. They had difficulty handling questions and objections. They were awkward. A casual observer would think we should have terminated those callers. However, we didn’t always do that because a distinguished few were extremely successful. What made them successful fundraisers, despite their shortcomings, was their passion for the organizations they represented. Their passion was infectious. When prospective donors heard how passionate these callers were, they became excited about the mission and became supporters.

Passion cuts both ways. If you do not passionately represent your organization, alarm bells will go off in the minds of those you contact. Conversely, if you exude passion for your organization’s mission, that enthusiasm will be infectious and excite others.

Superior Skills. Unfortunately, passion alone will seldom lead to success. For Zareba, years of training and working in some of the top kitchens around the world developed his skills. When looking at his display cases, you can see the result. He turns out a huge variety of confections. In addition, he renders each beautifully. His wedding cakes are works of art.

The framed newspaper and magazine articles mounted on the bakery wall attest to Zareba’s skills and the awards he has earned. He’s a world-class baker who, thankfully, has chosen to make his home in a small town in New Jersey.

As the number of nonprofit organizations grows, there is increasing competition for philanthropic support. It’s unlikely that your charity is unique. More likely, there are other nonprofits with similar missions. To attract, retain, and upgrade support for your organization, you need to have well-honed skills. Good enough is not good enough. You need to work continually to enhance your skills. You need to master the fundamentals while remaining receptive to the right fresh ideas. You need to continue your education by attending conferences, participating in webinars, reading books and blogs, and more.

Music experts have long regarded Pablo Casals as the world’s greatest cellist. When he was about 80 years old, Casals agreed to be the subject of Robert Snyder’s short documentary movie. The filmmaker asked why Casals continued to practice playing the cello four to five hours each day. Casals replied, “Because I think I am making progress.”

The fact that the world’s greatest cellist continued to hone his skills late in life is a great example for the rest of us. As professionals, we have a responsibility to always strive to enhance our own skills. The more effective you are, the more support you will be able to attract for your organization. That means, depending on your organization’s mission, more lives saved, more people better educated, more spirits uplifted.

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November 8, 2019

3 Election-Inspired Tips for More Powerful Fundraising

Nonprofit fundraising professionals can learn three powerful tips from the US presidential candidates that will help inspire greater support.

Now that the November 2019 elections in the US are behind us, the media and the public will focus their attention increasingly on the 2020 presidential race. As the campaign for The White House heats up, there are already things you can glean from this election season that will help you and your charity.

Fox News recently interviewed pollster Frank Luntz about how the candidates are communicating their messages. Regardless of how you feel about the network or the researcher, you can pick-up great communication insights from them.

Specifically, Luntz shared what he believes to be the three elements of powerful, persuasive communications:

1. Credible. It’s not enough for a message to be true. It must also be believable. When sharing stories about those your charity helps, you might choose to highlight a less dramatic, but more believable example, rather than one that is extreme but that might invite suspicion. Or, if you do share a story that stretches belief, you might want to cite a third-party source (i.e., a published news report). In a mailing or face-to-face visit, for example, you could even provide a newspaper clipping that supports the story you share. When citing statistics, providing the source can lend credibility.

In one of her presidential campaign ads, Sen. Elizabeth Warren highlights her unexpected victory over incumbent Sen. Scott Brown in 2012 to demonstrate her political skill and her ability to surprise the pundits. In one of his campaign ads, former Vice President Joe Biden cited a number of polls to support his claim that he is the best positioned Democrat to unseat President Donald Trump. In other words, both candidates sought to establish credibility by documenting their claims.

If recipients of your message don’t believe it, they’ll dismiss it. You’ll lose the opportunity to cultivate, engage, or generate support. While your message needs to standout and capture attention, it has to be believable.

2. Memorable. To be effective, messaging must be memorable. By definition, successful education or cultivation requires a lasting impact. If someone receives your direct-mail appeal and sets it aside to deal with later, they’ll only respond if they remember it and remember what moved them. If someone sees an advertisement for your cause, they won’t talk about it with friends unless they remember it.

In one of Trump’s campaign ads, the narrator says, “Mister Nice Guy won’t cut it. It takes a tough guy to change Washington.” Luntz asserts that the “Mister Nice Guy” line combined with the images of Trump looking tough result in a memorable ad. The rhetoric is unusual for a political ad while being in alignment with the candidate’s image. By contrast, the Biden ad that talks about his ability to beat Trump uses footage that, for the most part, doesn’t support the narration and, instead, features bland, standard political glad-handing images. By contrast with the Trump ad, the Biden commercial is less memorable.

The most effective messages are the ones that are memorable. Words and images must support one another to maximize effectiveness.

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October 25, 2019

Do You Want to Know the Latest, Greatest Fundraising Idea?

When I’m invited to speak at professional gatherings, I’m asked frequently to talk about the latest, greatest ideas that will help nonprofit organizations raise more money. I’m never surprised. For many years, I’ve talked with fundraising professionals who attend conferences, participate in webinars, and read publications in a grand quest for the new shiny idea that will result in massive fundraising growth.

Recently, I read some tweets from three fundraising experts related to the search for fundraising’s Holy Grail. While these colleagues and I all embrace innovation, we also share a common belief about what will allow fundraising professionals to be more successful immediately. Here it is:

Master the fundraising fundamentals.

Here’s what T. Clay Buck, CFRE; Andrew Olsen, CFRE; and Tom Ahern all tweeted this month:

Let me demonstrate what I mean by “master the fundamentals.” In a planned-gift marketing seminar I presented a few years ago, I shared a variety of ideas for promoting planned giving. I knew I had a diverse audience, so I provided both simple and sophisticated ideas. While my suggestions were certainly not revolutionary, some of them did push the envelope of current practice.

Following my talk, a fellow came up to me and said, “You didn’t say anything I didn’t already know.” Ouch! That’s not the feedback I like, even if it was just one person’s opinion. I always want everyone to come away from my seminars with at least one terrific idea.

After receiving the stinging feedback, I said to the man, “I’m sorry to hear that you didn’t get any fresh ideas. However, I’d love to hear about how you’ve used the phone to market bequests.”

He replied, “I haven’t implemented a phone program.”

“Ok, then tell me how your direct mail campaign has done,” I requested.

“I haven’t done a planned gift mailing,” he responded.

“Ok, then tell me about your website and how it allows you to track and rate visitor interaction,” I requested.

“Our website isn’t that sophisticated,” he said.

The conversation continued in that vein. The point is that this fellow knew what he should or could be doing, but he was not doing it! He had not fully embraced the fundamentals of planned-gift marketing yet he was searching for new ideas, a planned giving Holy Grail. If he would simply implement one of the ideas I had talked about, his planned giving results would have been much stronger.

The fundamentals matter. To be successful, fundraising professionals need to learn the basics and embrace them. Doing so could add up to billions of dollars for the nonprofit sector.

Do you want more money for the annual fund? Then tell me, do you have a monthly donor program? Do you do second-gift appeals? Do you do targeted upgrade appeals? Do you effectively steward gifts to ensure a high donor-retention rate? Do you use database analytics to help you better target asks, even in your direct mail appeals?

Do you want more planned gifts? Then tell me, do you have a sophisticated website that allows you to track individual engagement and then rate prospects based on that? Do you use direct mail to generate bequest commitments and leads? Do you use the telephone to generate planned gifts and leads? Do you use surveys to learn more about prospects while engaging them?

Do you want more corporate support? Then tell me, do you offer something of value to your corporate donors or do you simply expect them to “give back”? Do you only go after the usual suspects or do you also approach the profitable, rapidly growing small and mid-size businesses in your community? Do you just ask or do you cultivate and engage as well?

Don’t get me wrong. Once again, I’m a big fan of fresh ideas and cutting-edge research. Again, so are Buck, Olsen, and Ahern. However, learning without doing accomplishes nothing.

Everyone seeking to work as a fundraising professional should learn the fundamentals so they can effectively identify prospects, educate and cultivate them, ask for gifts, and properly steward supporters.

Implementing relatively simple, small changes can yield big results for your nonprofit organization. Virtually every charity has low-hanging fruit. But, you actually have to go and grab it!

Here are five simple steps, that I outlined several years ago, that you can take now:

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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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