Posts tagged ‘The Nonprofit Fundraising Digest’

February 14, 2018

How to Get Last Year’s Donors to Give More this Year

Showing donor love and asking for more money should not be mutually exclusive activities. Inspiring upgraded support requires both to work hand-in-hand.

Unfortunately, for many nonprofit organizations, stewardship is the poor stepchild of the fundraising process. It is often ignored or poorly implemented. It is usually an underfunded activity. As a result, donor-retention rates for the nonprofit sector are pathetic.

Development professionals who think about stewardship usually believe that it is something sandwiched between when a gift is received and the next appeal. In other words, stewardship and fundraising are separate functions. However, Joe Garecht, President of Garecht Fundraising Associates and Editor of The Nonprofit Fundraising Digest, believes that the next appeal is actually an integral part of a robust stewardship process. An upgrade appeal will not achieve maximum success without sound stewardship. Done well, an ask is an extension of the stewardship process.

Joe’s thinking makes sense. If we love our donors, why would we want to deny them the satisfaction of continuing to support a cause they care about? Why would we want to deny them the opportunity to make a larger commitment? Helping donors to continue feeling good about continuing to do good is part of good stewardship.

We want our donors to feel important, feel needed. One way to do that, is to ask and to ask for more than they gave last year. However, we shouldn’t make an upgrade appeal in a vacuum.

It’s not just about asking. As Joe explains in his guest post below, it’s about incorporating the ask into a sound stewardship system so that the upgrade appeal is a natural evolution of our relationship with the donor. Stewardship and asking are not separate activities; they part of a cohesive system.

I thank Joe for sharing his stewardship insights and his four-step strategy for asking for donation upgrades:

 

One of the most important fundraising systems you can build at your nonprofit is an effective donor stewardship strategy. Donor stewardship starts with thanking your donors for their gifts… but is much more than that.

There are three main goals for your donor stewardship system:

  1. Donor Retention: You want to make sure that your donors keep giving year after year.
  2. Referrals: You want your donors to introduce you to their friends and colleagues who also might want to get involved with your organization.
  3. Donor Upgrades: You want your donors to give more this year than last year, and to move to major gifts and planned giving, if they have the capacity to do so.

In this article, we’re going to take a look at that third goal. We’re going to answer the question, “How can you get your current donors to give more this year than they did last year?” To understand how to best upgrade your donors, we’re going to first explore why donors make the decision to upgrade, and then review a simple, four-step strategy for getting your donors to upgrade this year.

Understanding Why Donors Upgrade

If you want to successfully solicit your donors to give more this year than they have in the past, it is important to understand why donors decide to upgrade their gifts:

Donors upgrade because they have been stewarded effectively.

The most important reason why donors upgrade is because they have been properly stewarded. This means that your nonprofit has appropriately thanked and recognized them for their past gifts, and has continued to build a relationship with them. Your donors want to feel like they are an integral part of your team. They want to feel appreciated, valued, and heard.

If you are treating your donors well, keeping them updated on your work, seeking their advice and input, and reporting on outcomes in between asks, your donors will be far more likely to upgrade their gifts. If your donors are investing their emotional energy, knowledge, and time in your work, then upgrading their financial investment will be the next logical step.

Donors upgrade because you are casting a big vision.

One of my favorite maxims in fundraising is this: Donors don’t make big gifts to small visions. Your donors want to change the world. They want to make a difference. If you are not casting a big enough vision, your donors will make their big gifts elsewhere, investing in organizations and companies that are.

Every nonprofit can cast a big vision…even small, local organizations working in one small corner of the world. Start by asking yourself, “How are we changing the world? How are we changing lives? How are we saving lives?” Your answers to these questions will help you think through the real impact of your work. If you want your donors to give more this year than they ever have before, you need to cast a bigger vision this year than you ever have before.

Donors upgrade because they are asked to upgrade.

Donors only upgrade when you ask them to do so. Very few donors will upgrade their gifts without being asked.  Thus, if you want your donors to give more this year than they did last year, you need to go out and ask them to do so. While the majority of your stewardship system should be focused on cultivation, asking for donations from current donors (including renewals and upgrades) is an essential part of the fundraising cycle.

In order to be successful, the upgrade process should be systematic. This means that you shouldn’t ask for upgrades here and there, whenever the whim strikes you. Instead, you should have a defined plan in place to review your donors’ capacity and ask them for upgrades as often as appropriate.

How to Ask Your Donors to Upgrade

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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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