Posts tagged ‘MarketSmart’

October 5, 2018

9 Hard Truths Every Fundraiser Needs to Face in the 21st Century

In the Oscar-nominated film A Few Good Men, Jack Nicholson’s character famously shouts, “You  can’t handle the truth!”

Well, if you want to be a successful fundraising professional, you better know the truth and be prepared to handle it.

If you want to be successful at anything, you need to face the core truths involved no matter how challenging. Ignoring reality is a certain pathway to failure.

One nonprofit development truth is that authentic, donor-centered fundraising results in more donors giving more money than would otherwise be the case. Penelope Burk wrote about this years ago in her landmark book Donor Centered Fundraising, available October 15 in a new second edition. I wrote about the subject in my own book, Donor-Centered Planned Gift Marketing.

Recently, Greg Warner, CEO of MarketSmart, released his powerful new book that reveals a straightforward, meaningful way fundraisers can embrace the concept of donor-centered fundraising.

In Engagement Fundraising, Greg passionately reveals the 21st century donor-centric strategy practiced by MarketSmart. Some people might be angered by or afraid of the core message of this book while others will find it to be simple common sense. However, one thing everyone can agree on is that Greg is a disrupter, and that’s a good thing. If it wasn’t for society’s disrupters, we’d still be riding around in horse-drawn carriages, and you’d be reading his book by candlelight. His fresh, technology-driven approach is a powerful way forward for those interested in engaging people to inspire more philanthropic support.

At the end of this post, I reveal how you can download, for free, the introduction and first chapter to Engagement Fundraising. But now, I want to share Greg’s additional insights with you as he outlines nine hard truths every fundraiser needs to face in the 21st century:

 

1.  Competition is fierce and everywhere. Nonprofits don’t only compete with other nonprofits. They also compete with private sector businesses and Uncle Sam (the tax collector) for every donor’s “share of wallet and attention.” Plus they want non-exclusive, polyamorous relationships with organizations. In other words, they will decide when they’ll cozy up to other charities. Of course, you can influence their decisions but you can never control them. You are at a disadvantage. Private sector companies and the government have deeper pockets. In order to win, you better be smart!

2.  Most of the time donors spend involving themselves with your organization happens without a fundraiser present. More than 99 percent of every donor’s time and energy spent involving themselves with your organization’s mission is done without you. You must accept this new reality and enable your supporters’ self-education and self-navigation of the decision-making process.

3.  The consideration continuum is open-ended. Donors are fickle. Their needs, passions, and interests will change. As they do, they might decide to give more, less, or stop giving altogether. They might involve themselves deeper in your cause or end their involvement (perhaps even by removing your organization from their estate plan). As a result, customer service (stewardship) is more essential now than ever.

4.  Your job is to make them feel good, not ask for money. In order to generate major gifts (including legacy gifts) and inspire high-capacity mid-level donors to give more, you must make your donors feel good by engaging them politely and persistently with offers that deliver value over time. If you do that, your donors self-solicit. They’ll step up to make a difference so they can find meaning in their lives. Then they’ll ask you, “What can I do to help?” Yes! Seriously! If you make them feel good, they will give, give more, refer friends, get more involved, become more committed, and make legacy gifts.

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April 8, 2018

Do You Really Have What It Takes to be a Successful Fundraising Professional?

If you want to be a successful fundraising professional, you need to constantly expand your knowledge and develop your skills. Great fundraisers are not born. They are created through hard work and dedication.

However, if you want to be a truly successful fundraising professional, you’ll need more than knowledge and skills. You need passion. You need passion for the profession, your organization’s mission, and for improving society.

One way to supercharge (or recharge) your passion is to remember what first attracted to the fundraising profession or what first inspired you to make a charitable donation. In my case, both are wrapped in the same tale. Here’s my story:

Little Michael at age 8.

My passion for fundraising and philanthropy began when I was eight years old. You see, I wanted my parents to buy me some comic books. My mother said that she would get me any ‘‘real’’ book I wanted but, if I wanted comic books, I would have to spend my allowance. Well, in those days, an allowance was not an entitlement; I had to earn it by doing household chores. Sadly, I was already at my maximum earning capacity. And I had no more money for the latest edition of Superman.

Because I simply had to have the latest Superman comic book, I asked my mother if I could sell my old comic books and open up a lemonade stand to generate some quick cash. Fortunately, she granted her permission.

My first entrepreneurial effort was a terrific success. I generated what in today’s dollars would be about $150. As an eight-year-old kid, I was rich! Recognizing that I did not need to buy quite that many comic books, my mother suggested I give half of it away to charity. She further said that, if I agreed with her suggestion, I could pick whatever charity I wanted.

At the time, our local newspaper operated a fund to send “poor inner-city” kids to summer recreational camp. I grew up in the suburbs. However, my cousin grew up in the big city. I knew how miserable summertime in the city could be for a kid. I knew how good I had it, even with our meager working-class lifestyle. I wanted other kids to enjoy the clean air and open spaces that I enjoyed. So, I took my coffee can with half of my earnings and marched into that local newsroom.

The editor was so moved that he had my picture taken and put me on the front page! My little eight-year-old ego swelled. I was inspired for each of the next several summers to run a front-yard fair for that summer camp fund. The only changes were that I gave 100 percent of the revenue to the charity and the event got bigger each year. It even inspired similar efforts in other neighborhoods.

I can trace the roots of both careers I have had in my adult life — journalism and development — back to that little boy’s experience. I learned a great deal about fundraising in those days, especially about what it takes to inspire donors to support a good cause. I also learned how good it feels to be philanthropic.

Philanthropy is a learned behavior. At MarketWatch, Kari Paul’s article “Want Your Children to be Charitable? Do This” opens with this sentence:

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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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October 28, 2016

Get a Free Halloween Treat for Fundraisers

If you’re like most fundraising professionals, you’re not optimally asking donors to include your nonprofit organization in their will.

You’re probably not driving as much traffic to your planned giving webpage as you could.

You’re also probably less successful at closing Charitable Gift Annuities than you could be.

lone-ranger-and-silver-via-melocuentas-flickr

The Lone Ranger and Silver.

I know. You decided to read this post to discover how you can get a free Halloween treat. Instead, you’re probably starting to feel tricked. But, fear not! Russell James, JD, PhD, CFP, the Texas Tech University professor and philanthropy researcher, along with the good folks at MarketSmart, are riding in to save the day.

Last summer, James conducted a webinar hosted by MarketSmart. During his presentation, James unveiled his latest, powerful research findings along with research insights from others. You can learn more about the webinar and get some great tips by clicking here.

Now, for your treat, MarketSmart has distilled James’ webinar into a free, 22-page e-book that will help you raise millions of dollars more. For example, here’s just one simple, yet valuable tip:

When you want to engage people in a conversation about Charitable Gift Annuities, what is the best way to describe this giving vehicle to make folks want to learn more?

James tested five phrases. Among the 2,550 respondents, he discovered the percentage interested in learning more:

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July 28, 2016

Do You Know that “Planned Giving” is Bad for #Fundraising?

That’s right. “Planned Giving” is bad for nonprofit fundraising.

For years, I’ve been writing and talking about the problems with the term “Planned Giving.” Now, new research underscores what I’ve been advising: You should stop using the term!

Sometime ago, The Stelter Company conducted a survey that I cite in my book, Donor-Centered Planned Gift Marketing. Stelter found only 37 percent of Americans over the age of 30 have a familiarity with the term “Planned Giving.” We have no way of knowing what percentage of those claiming familiarity really, in fact, know what the term truly means.

Other terms have become increasingly popular as substitutes for “Planned Giving.” However, none has yet to gain sufficient traction to overtake the use of “Planned Giving.” Consider the results from simple Google searches I conducted for this post:

  • Planned Giving — 14.8 million results
  • Philanthropic Planning — 11.1 million results
  • Gift Planning — 5.7 million results
  • Legacy Giving — 2.1 million results

What we know is that the general public has little understanding of the term “Planned Giving” although it appears to be the best term we have. Unfortunately, popular does not mean effective.

William Shatner in The Grim Reaper by Tom Simpson via FlickrWhile “Planned Giving” is a reasonable, inside-the-development-office catch-all term to describe, well, planned giving, it’s not a particularly good marketing term. That’s according to the findings of philanthropy researcher Russell James, JD, PhD, CFP.

James conducted a study to answer this vitally important marketing question: “What is the best ‘front door’ phrase to make people want to read more Planned Giving information?”

Think of it this way: Will a “Planned Giving” button at your website encourage visitors to click through to learn more or is there a more effective term?

To be a successful term, James believes two objectives must be met:

  1. Individuals have to be interested in finding out more.
  2. Individuals have to expect to see Planned Giving information (i.e., no “bait and switch”).

To find the strongest marketing term, James asked people to imagine they were viewing the website of a charity representing a cause that is important in their lives. In addition to a “Donate Now” button, the following buttons appear on the website:

  • Gift Planning
  • Planned Giving
  • Giving Now & Later
  • Other Ways to Give
  • Other Ways to Give Smarter
  • Other Ways to Give Cheaper, Easier, and Smarter

James asked participants to rate their level of interest in clicking on the button to read the corresponding information. In a follow-up, James asked study participants what kind of information they would expect to see when clicking the buttons mentioned above.

The winning term is:

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June 2, 2016

Avoid a Big Mistake: Stop Asking for Bequest Gifts!

Nonprofit organizations are making a big mistake. Many charities ask individuals to consider making a “Bequest Gift.” Of course, an even bigger mistake is not asking at all. However, there is a better way.

Russell James, JD, PhD, CFP, a leading philanthropy researcher based at Texas Tech University, reports that the latest research shows that asking Words that Work IIpeople to consider “Gifts in your will” generates far more interest. When asking prospects to consider a “Bequest Gift,” 18 percent responded, “I might be/am definitely interested.” By contrast, when prospects were asked to consider “Gifts in your will,” 28 percent expressed interest!

James will offer additional research-based insights in a FREE webinar, Words that Work II: The Phrases that Encourage Planned Giving, hosted by MarketSmart on Wednesday, June 8, 2016 at 2:00 PM EDT. Registration is required and space is limited so click here now.

During the webinar, you’ll get the following information:

  • How to describe bequest gifts and tax benefits in a way that will increase a person’s desire to learn more;
  • What elements of a charitable gift annuity advertisement make people want to get one;
  • What the latest data patterns say about trends in charitable estate planning;
  • The best “front door” phrase to get people to read about planned giving information;
  • Test results that showcase the responses to different charitable gift annuity advertising messages;
  • And much more of great interest and value!

In short, James’ webinar will provide you with powerful, practical insights that will help you enhance your planned giving results.

So, why is asking for a “Bequest Gift” less effective than asking for “Gifts in your will”?

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November 24, 2015

What are Your Favorite LinkedIn Discussion Groups?

John Heywood, the 16th century English writer, once stated:

Many hands make light work.”

While Heywood might not have been the one to coin the phrase, he certainly helped preserve and popularize it. It’s a nice bit of common sense that we all need to be reminded of periodically.

For example, we can’t know everything. We can’t research an answer to every question by ourselves. We can’t read all of the professional publications to determine which items are of greatest importance or value.Spiral of Hands by lostintheredwoods via Flickr

That’s where LinkedIn Discussion Groups can help. By being part of a network of nonprofit managers and fundraising professionals, we can rely on the assistance of colleagues. In turn, we can also be of help.

Through LinkedIn, I’ve developed my professional relationships, broadened my professional network,  made new friends, accessed valuable information I never would have on my own, had some of my questions answered, and much more. I’ve engaged in provocative conversations. I’ve learned a great deal. I’ve been inspired.

While I belong to 45 professional LinkedIn Groups that are excellent, there are only some I engage with regularly. Here are just ten of my favorites:

[Note: You might need to be logged into your LinkedIn account for the above links to work. Even then, if you have any problems with the links, you can simply search on the Group names I’ve listed.]

Now, let me tell you about my absolute favorite Group.

Just days ago, I have created a new LinkedIn Discussion Group:

Blog Posts for Fundraising Pros & Nonprofit Managers

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November 6, 2015

Is a Zombie Video Good for Charity?

Halloween has passed, but zombies are still with us!

While checking my email Inbox recently, one subject line in particular caught my eye:

Zombie overpopulation video for Halloween by Population Matters.”

Halloween season or not, I like zombie films and television shows. For example, my favorite TV show of the moment is iZombie. If you haven’t seen iZombie, don’t judge me; instead, checkout an episode. Then, thank me.

Anyway, I quickly opened the email from a fundraising professional who I respect greatly. Her message piqued my interest even more:

I can’t believe that any communications or development department ok’d this! Horrible.”

Normally, “horrible” might be a good word to describe a zombie video, but that clearly was not the case in this situation. My fellow fundraiser believes that the video is problematic for the charity even if, on a superficial level, it might be mildly entertaining. So, doubly intrigued, I clicked on the link to the video by the UK charity Population Matters. You can watch it here:

On a superficial level, I kind of like the video. It isn’t great, but it is a bit fun while raising awareness about an important issue. I also acknowledge a few key points:

1.  The video is a British production for primarily (though not exclusively) a British audience. The British sense of humor and use of humor is very different from the American. What works in one country might not be appropriate in the other.

2.  Adults are not the primary target audience. The organization says “young people” are. I can understand how a zombie-themed video could capture the attention of the intended target audience.

3.  The video is bound to attract plenty of eyeballs that will achieve the objective of creating awareness for the issue of over population.

It was not until I thought about the video more deeply, viewed it again, and discussed it with colleagues that I began to see the problems with it.

Racism. At worst, the video is seen by some as racist. At best, it’s considered racially insensitive. The problem is that when mentioning the explosive population growth, only children of color are shown. No white babies or children are shown to illustrate the growth in population. Here’s what one colleague at an international social-service agency had to say about the video:

From our perspective, when people talk about overpopulation, they are often referring to black/brown folks in the global south and Africa. There can be a strong undercurrent of racism there, so connecting ‘too many black and brown people’ with zombies has an extremely negative connotation. In the human rights world, this kind of video is considered to be pretty racist. It got a uniformly negative response from the folks here in our office. So, even if millennials would like it, it’s very much out of step with the way family planning/population issues are framed in the human rights world, and makes it harder for groups like ours to even approach the overpopulation issue without being called racist.”

Overwhelming Use of Statistics. The video provided a number of interesting statistics. The trouble is, the use of statistics was overwhelming and abstract. As a result, even after watching the video three times, I cannot remember a single statistic cited. I suspect casual viewers will experience the same thing.

No Emotional Pull. While the video is somewhat fun, it lacks emotional pull. Greg Warner, of MarketSmart, pointed that out to me along with the next two points.

So What? This is one of my favorite questions when evaluating something. As Greg told me, “There’s nothing to answer the question any individual would ask while viewing it: ‘What’s in it for me?’” Yes, the video attempts to point out how the world and our species would be better off by reducing population growth. However, those “benefits” are abstract, particularly to young people who have some sense of immortality and narcissism.

Weak Call to Action. There are two calls to action in the video. Neither is compelling. First, viewers are encouraged to have smaller families. This is not immediately relevant to the target audience of teenagers. The second call to action is to go to the organization’s website for more information. As Greg mentioned to me, “[The call to action] is not all that exciting.”

Given my own thoughts about the video and the comments I received, I had questions about the production. So, I emailed Population Matters. I received a quick response from Simon Ross, the organization’s Chief Executive:

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June 19, 2015

Are You Throwing Away Planned Gift Opportunities?

Since 1974, Charitable Bequest gifts have totaled seven to nine percent of overall philanthropic giving.

In 2014, Bequest revenue totaled $28.13 billion, accounting for eight percent of overall giving and an increase over 2013 of 13.6 percent (adjusted for inflation). These figures come from the recently released Giving USA 2015: The Annual Report on Philanthropy for the Year 2014.

Here are some questions to help you determine if your organization is getting its appropriate share of the Charitable Bequest pie:

Does your organization have a planned giving program?

If your organization has a planned giving program, good for you; skip to the next question.

LuMaxArt FS Collection Orange0128 by Scott Maxwell via FlickrIf your organization does not have a planned giving program, why not? The only valid reason for not promoting planned giving is that your organization does not have any individual donors. If your organization has individual donors, there’s no reason not to have a planned giving effort.

While smaller nonprofit organizations might not have elaborate, sophisticated planned giving programs, they can certainly promote Bequest giving, gifts through beneficiary designations, gifts of life insurance, donations from IRAs (when permitted by the government), contributions of appreciated stock, and gifts of personal property.

By promoting planned giving, even small charities can get a slice of the Bequest pie. Not only that, they can even help grow the pie. Just over five percent of Americans name a charity in their will. However, one-third say they would be willing to consider including a charity in their will. There is a massive chasm between these two figures. If more nonprofits ask more people for more planned gifts, we could see far more than five percent of Americans including a charity in their will.

To learn more about planned gifts any organization can seek and how to get them, register for my free webinar “Planned Giving: It’s Easier than You Think!,” hosted by Wild Woman Fundraising on July 17, 2015, 3:00 PM (ET) to 4:30 PM (ET).

Do you have a ROBUST planned giving program?

Okay, you have a planned giving program. Good. But, is it a robust effort or do you simply market passively or focus primarily on your wealthiest donors?

If you simply market passively and expect your donors to make a planned gift without being asked, you’re missing out on gifts your organization should be getting. Just like with any other type of fundraising, you actually have to ask for Bequest commitments if you want them.

If you focus only on your wealthiest, biggest donors, you’re missing a huge opportunity to grow your results. Yes, it’s true that wealthy donors leave the most to charities. In 2014, “estimated Bequest giving from estates with assets $1 million and above amounted to $22.12 billion,” according to Giving USA 2015, while “estimated Bequest giving from estates with assets below $1 million amounted to $6.01 billion.” However, there’s still a lot of money being raised from less wealthy supporters. And there is tremendous potential to raise even more from these individuals.

Here’s what Giving USA 2015 has to say about prospecting for Bequest intentions:

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