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8 things you should try in 2018 (If you’re not already doing them)

planning 2018 fundraisingIt’s not too early to start planning.

Per Vital Signs, a study by Blackbaud, there are more nonprofit organizations and fewer donors giving. Somehow, I doubt that surprises you. (The Agitator gives you a run-down of some key findings here.)

But it’s important to keep in mind. We’re in a very competitive atmosphere. If you want to succeed – and stand out in the crowd – here are some things to start or improve in 2018.

Monthly giving program

If you don’t have a program, start soliciting monthly gifts now.

Per our friends at The Agitator, monthly donors generally have retention rates in the 60%-80% range. You read that right.

What difference would it make to your fundraising if 60%-80% of your donors returned, year after year?

Don’t make it a secondary consideration or a project for later. And don’t get too hung up on perfection before you start. Identify your likeliest donors – your loyal donors, your donors who use a credit card now – and send them an appeal.

Then consider making monthly your first ask.

Erica Waasdorp has a wealth of information for you at her site. I recommend doing some reading and then diving in.

Bequest program

The time to ask for bequests isn’t just before someone passes away. Bequest donors don’t need to be elderly. And they don’t need to be wealthy, either.

If you’ve been held up on beginning a planned giving program, worried about legal issues and how to deal with complex financial instruments, focus on bequests. A little simple language in a will and it’s done.

Who to ask? People who love you.

When to ask? Now. And often.

Donor survey

How well do you know your donors? A donor survey is a great way to open or continue a conversation with them.

I want to be clear, this is qualitative, not quantitative information. It’s more a way to open a conversation than a way to collect great demographic data.

Here’s some information about what happened when I tried this.

Donors like to be asked their opinion!

One important warning: be sure to collect and organize the information you receive. You’ll want to use it going forward to show your donors you heard them and you know them.

And feeling known will increase their sense of loyalty.

Get serious about retention: measure it

If you’ve been giving donor retention lip service, but not measuring it consistently, begin now. Or yesterday.

You need to know whether you are keeping or losing your donors. You need to be able to spot trends so you can act on them.

If your fundraising system doesn’t make that easy (and it should), track it manually. It’s not hard: how many donors from last year gave again this year? Out of how many donors last year? There’s your number.

Of course, you can do more. You can look at dollars retained. You can use the retention percentage to calculate donors’ lifetime value. And you can look at cohorts of donors year over year. (Three years retained, for instance.)

Make this a key metric. Because it’s harder to acquire new donors. Harder to acquire new donors who stick around. So you have to work hard to keep the donors you have.

Loyal donor program

If your fundraising plan is all about dollars, you’re missing out. Some of your most valuable donors can’t make 4, 5 or 6 figure gifts.

But they can give, year after year after year. And guess who is most likely to have remembered you in their will?

Besides, these loyal donors are the most wonderful people! If you are passionate about your organization’s cause, you’ll love them, because you have something important in common.

So find ways to recognize your loyal donors.

Consider a special event for your 5, 10 or 20-year donors. This doesn’t have to be expensive. Have a speaker (a staff person, even) who can offer some new information. Put out wine and cheese. And let them meet one another.

That’s the really great part. Every relationship that develops among your donors because of you strengthens their connection to you.

You can also recognize these donors in publications, of course. And you should send them a special thank you – without an ask – at least once a year. Let them know they matter.

Donor newsletter – print

An email newsletter can’t beat a print one for donors. Why? Most of your donors are probably older. And we’re all buried in email anyway. A well-done print newsletter can be a treat to read.

That won’t work if it’s a corporate relations piece, however. Make sure it’s all about your donors’ impact.

I love newsletters because they’re a three-way win: you get to thank, inform and ask (albeit softly) donors in one mailing. And done well, they can raise some serious money.

Segment and personalize your communications

If you’ve been asking everyone for the same thing at the same time, you’re leaving money on the table.

Get smart and dig into your database. Match the ask – both reason and amount – to the donor.

I know it’s a little more work. But it’s important – because your list is the most important factor in your success.

And digging into your list in order to create segments introduces you to that list. There’s nothing like time spent poring over a spreadsheet to help you know your list. And you should know them!

Intentional stewardship

If caring for your donor relationships has become rote and routine, it probably feels that way to them, too.

Take the time to plan a program that prioritizes stewardship as much as solicitation. Your donors are people, after all, not dollars.

If you focus mostly on how many dollars are in the door, your donors will start to notice.

We give because we’re moved by a mission. Because we want to feel like good people. Because we care.

So if we’re answered with a brief, corporate acknowledgment – or none at all – that undercuts our donor’s high. (It’s really a thing. Giving makes us happy. Our brain chemistry changes when we give. It feels good!)

Help your donors feel good all the time. Give them opportunities to feel good all the time. Treat them like people, not wallets.

It will pay off in the end.

 

Photo thanks to Eric Rothermel

Filed Under: Blog, Planning Tagged With: annual giving, donor communications, donor retention 8 Comments

Do you want to raise more money? You need a plan

Where are you going?

If you don’t know where you are going, you might wind up someplace else.

~Yogi Berra

Is this you?

Many organizations share a problem.

They’re either new and need to build a fundraising program…

Or they’re not new at all but have never focused on building a fundraising program.

In both situations, the answer is a fundraising plan.

Some organizations have gotten by for years with only government or foundation funding.

Some have a few major supporters – either corporate or individual – who keep the place afloat.

But they haven’t been able to grow. And it’s hard to plan their programs. All because they’re always one rejection away from disaster.

To me, the solution is a diversified fundraising program. One that includes not just institutional support, but gifts from individuals.

When you have a wider base of support, you can absorb difficulties more easily.

But how do you get there?

Your first planning step is planning to invest.

Any plan will only be as good as your commitment to act on it. If you want a successful planning process, you’ll need to invest both time and money. It’s necessary for the long-term health of your organization.

The decision to invest is often the hardest part.

What we need is money, and you want us to spend it?

But think about this: you ask funders to invest in programs before you set them in motion. In the same way, you need to spend time and money now in order to be stronger tomorrow.

Every organization is unique, and there’s no one-size-fits-all fundraising plan. But I do see some trends that concern me.

Maybe some of this sounds like you?

Communication – especially about how donors can join the cause – is sporadic and not strategic. It’s often seen as a “nice to”, not a “have to” in the daily struggle to meet your mission.

Fundraising is seen as a necessary, but distasteful or scary activity. Or one that strips resources from the important things you do, like programming.

Your staff is stretched. And there’s no one person focused on fundraising. Or the board is a working board and functions as staff. They’re willing, but not trained. And more than a little nervous.

The result? Survival is day-to-day. The situation leaves everyone feeling strung out.

And you’re less effective because you’re spending so much psychic energy avoiding the problem.

But don’t fret. This is all pretty normal. And it can be overcome. A good planning process can be the first step your organization takes to a new level of maturity and effectiveness.

Here’s some of what you’ll probably need to do:

Produce a case statement

What’s a case statement? In short, your best argument. Or better yet, your best emotional plea – the answer to the question “Why should I give you money? What will happen if I do?”

Yes, this can be a fancy brochure you take on major solicitations. But often, it’s an internal document that feeds your fundraising messaging.

It’s your fundraising master text.

The process of creating a case statement brings everyone in the organization into alignment around messaging. It also helps everyone understand fundraising.

Create good internal systems

You need processes for taking gifts in, thanking people, and tracking relationships.

Chances are you need to invest in a good fundraising database system. But you’ll also need to create workflows so everyone understands what needs to be done, when and by whom. Build accountability into your structure.

Communicate more often and in a way that appeals to donors

Most of the time, gifts don’t just arrive on your desk like magic.

You know it’s true: you have to ask if you want support. To raise money you need to talk to people!

So offer compelling appeals, newsletters and more. Design them to spark interest in your cause and a desire to be more involved.

Easier said than done? Take yourself to school – there are many great resources online. Or hire a copywriter – and use that experience to learn.

Communication isn’t a one-way street, of course. So listen well, too. Think conversation rather than broadcast.

Consider a donor survey. Hold a Thankathon so your board or staff talks directly to your supporters to learn what matters to them. Ask for feedback on your website.

Communication includes solicitations, of course. Are you really asking? Or are your appeals so soft they go unnoticed? Or worse, are you sending the message that you don’t need support?

Be clear. Explain the problem and why help is needed – urgently. Show donors how they can solve the problem. (Not you. If you’re solving it, they won’t have to bother, right?)

And don’t make your appeals one-size-fits-all. Look at your lists. Some of those people could be giving more. Some of those people could be giving monthly. And some could be making gifts in their wills. None of those gifts will happen if you don’t ask – and ask the right people.

Don’t take any of the people who respond to these special requests out of the regular communication stream, though.

I don’t have to remind you that thanking donors and reporting to them on what their gifts have done is also mandatory, do I? Read more about thanks here. And about donor newsletters here.

Focus on relationship building

It’s true: you’ll do better focusing on donors rather than dollars.

Make a plan for reaching out to people who might be interested. Treat them as human beings, not checkbooks. Ask for their input. Thank them for their attention and their gifts. Invite them to become more involved and to help you widen your circles.

Identify your most passionate donors and spend more time with them. Those with the capacity to give more can make a tremendous difference to your organization if they understand how important they can be. Major donors need personal attention.

Those with fewer means can become monthly donors – or include you in their estate plans.

But none of that will happen if you don’t make it a priority.

Where do you find the time for that? Most organizations spend far too much time on events that take a lot of staff time. And don’t add much to your bottom line. Pare down the events and crank up the relationship-building.

Don’t forget to involve staff and volunteers – they can be your best bridges to wider support.

Learn

Create a culture where mistakes are a way to improve. Try something new. Be ready to examine everything you do and change when you identify what could be done better.

If you’re really focused on improving, even a small or new organization can make great progress.

Ask for help. Many community foundations now have departments that concentrate on helping nonprofits work better. Take advantage of the courses or seminars they offer.

Read a lot. There’s a world of great information online. There are also libraries of great books.

But don’t hesitate to speak to colleagues at successful organizations, either. You might be able to learn from their experience. Look for every chance to find something new that might work for you.

Reinvest

Once you have a program in place and you’re starting to see some traction, remember to keep feeding it.

The better you fundraise, the stronger your organization will be. And the stronger you are, the more good you can do.

Isn’t that worth your investment?

Filed Under: Blog, Planning Tagged With: donor relations, fundraising appeals, fundraising plans 2 Comments

Oh, brave new world

shadowy hand held upIs it just me?

I’m feeling more Huxley than Shakespeare right now.

Many of us in the nonprofit world are feeling anxious. The future is scary.

It’s clearer every day: we’re going to have to up our games.

Here in the U.S. changes in our social safety net, along with possible changes in the tax code, mean many of our organizations will face challenges.

(That’s a euphemism for pointlessly hard times.)

Besides doing all you can as a citizen to protect what’s good, what can your organization do to weather this storm?

Revisit your case for support

I don’t mean you need to call the designers and get a new, fancy document out. I mean the hard stuff: why do we exist? What do we accomplish? Why should someone choose us over other organizations?

In order to see an increase in support, you have to stand out.

You have to make a compelling case for support. “We need more money” isn’t that.

And numbers will only work to some extent. Institutional funders will want to see them. Donors will too – to an extent. But every funder, small to large, will also need to be moved.

Tell stories. Use pictures. Bring your donor to the scene.

If your organization does advocacy in areas that will be hard hit – civil rights, women’s rights, health care, immigration, the environment – you need a strong case so you can wring the most advantage from rage giving.

If you’re a social service organization, you can anticipate an uptick in business. That’s not a good thing, of course. You’ll see more clients, because there will be greater need.

If yours is not a social service or advocacy organization, you’ll really need to work hard. You’ll need a stronger argument: why now? Why should I support your theater when the shelter down the street is past capacity? When sick people have no way to get help?

Don’t dodge the question. Dig deep and answer it. Turn to your own love for your cause. What moved you to work there?

Talk to your most passionate donors. Why do they give? What does your organization give them?

Pay attention to donors’ needs to keep them around

Don’t take your loyal donors for granted now. Let them know how much they’re appreciated and needed. Bring them inside: share your concerns. Ask them to help problem-solve.

Keep listening. Keep the conversation going. This isn’t the time to pull back on communications in order to save a little money. Your loyal donors the key to your organization’s continued existence.

Donors may be moved to get more personally involved. They may want to send money, but also roll up their sleeves and help. Find ways to make that possible.

Find new ways to express gratitude

It’s a great way to stand out in the crowd, because doing this well is often overlooked.

Be the most responsive, most grateful organization your donors have ever encountered. Say thank you often, and mean it.

Here are some great ideas you can borrow.

But don’t ignore acquisition

When times get tough, it’s natural to pull in a bit. And I would prioritize your current donors over big (expensive) acquisition efforts. But you can’t stop entirely.

Be sure your online systems are working well. Is it easy to give online? Do you have a good welcome series set up when new people join your list?

Have you asked current supporters to recommend you to friends?

Your board and major donors will be critical now

Reach out and talk to them. Keep them in every loop. Listen to their concerns.

And be aware of changes that might make increased giving a smart as well as a good move for them now.

If we lose the charitable donation deduction, that will affect this group the most.

At the same time, the stock market is up. So gifting stock now could provide a double benefit: no capital gains tax and a deduction.

I’m no accountant. But you should befriend one (perhaps a board member?) so you can help your most generous donors help you.

Keep pushing back against “overhead” limits

If the proposed changes in health care law happen, many organizations will have to take a hard look at benefits. Many nonprofit workers could find themselves without health care, or with bare bones plans.

Treating staff well shouldn’t be seen as a luxury. Healthy staffers who can, you know, eat meals and pay rent, are investments in the mission.

Talk to your major funders – institutional and individual – about the situation. Help them understand that tight limits on administrative expense do not make you a more fiscally-responsible organization if they cut into the health and safety of the people who make the mission happen.

This may also be exactly the time for foundations to revisit their spending policies.

Guidestar will be holding a free webinar on the topic. How Much Does It Cost to Do Good? Conversations on Nonprofit Overhead. You might want to sign up – especially since one of the presenters is Vu Le of Nonprofit With Balls fame.

Take care of each other

Don’t waste time or breath on internal squabbles. Focus on the mission and give each other a break.

Say thank you a lot – and mean it. Recognize the hard work happening in other departments. (Even if you don’t entirely believe it – people can be moved by aspirational language.)

I know I gave you a list of things to do.

But put your life and family in the number one spot.

In the last eleven months, I lost both my parents. And it’s true: the family life they built for us is so much more lasting and important than the work either of them did.

Besides, the problems will be there for you in the morning.

Look at the good around you – because it’s there. You’re not alone. And you can do this.

Read more predictions here:

Inside Philanthropy – Philanthropy Forecast, 2017: Trends and Issues to Watch

Aly Sterling Philanthropy – Five key nonprofit trends for 2017

 

Photo: Tertia von Rensburg

Filed Under: Blog, Planning Tagged With: donor care, self-care 7 Comments

How to avoid the magic fundraiser trap

Hiring a fundraiser?Magic fundraisers are why we can’t have nice things.

I’m writing this on Labor Day. Maybe that’s fitting. Because while our work can feel like a labor of love, too often expectations far exceed what one human can do. Magic fundraisers do not exist.

This morning I woke to an email with a job posting. I keep reading these announcements out of curiosity. I like to see how different organizations see fundraising.

This announcement was instructive – though not unusual.

The organization’s goals for this position:

  • Funding from new sources – especially grants. And the expansion of individual giving.
  • Building a departmental infrastructure for fundraising.
  • Improving marketing and communications to support fundraising.

Included in the list of responsibilities (17 items in all):

  • Oversee all resource development and fundraising.
  • Oversee all communications work – including all publications.
  • Manage the budget.
  • Write and develop high-quality grant proposals and other solicitation materials.
  • Identify, cultivate and oversee grant development.
  • Develop close relationships with the philanthropic community.
  • Develop and maintain an information system.
  • Maintain government contacts.
  • Strategy and production for all fundraising and communications materials.

This is supposed to be one person!

That’s a tremendous amount of responsibility.

Worse, authority seems questionable since the position doesn’t report directly to the CEO. There’s no mention of other fundraising staff.

And of course, no salary range is offered.

That’s setting someone up to fail.

A look at the organization’s 990 shows their income is almost entirely government grants. They raise a small amount from other sources.

My guess is the uncertainty of government funding is pushing them to diversify. That’s good. I encourage it!

But this posting is aspirational thinking. “If we just hire a Development Director, we’ll raise lots of money!”

Here’s the problem: one person managing 5 million in government grants is a full job itself. (And not an easy one!)

Developing a major gifts program or an individual giving/direct response program, ditto.

The same for communications, P.R., and social media…

Wishful thinking – that magic fundraisers exist – helps no one.

Because of it, some fundraising professional is being set up to fail. What was the process the organization used to prepare this posting? Did they consult with any fundraising experts?

Many experienced professionals will pass this by once they’ve looked carefully at it.

But others may not. Maybe we’ve all felt pushed to bite in the past. Because of our current situation. Or because we felt sure we could help. Or we felt we could change the culture once we arrived.

But it’s a hard lesson when it fails.

It saps your confidence. And it can hurt relationships and reputations in the community. It may even sour you on the entire sector.

And the organization will have spent time bringing a new development officer in. They’ll introduce her to board members and donors, community contacts, and others.

And then they’ll lose this new person to outsize expectations. And go through the whole cycle again.

Does anyone wonder why turnover is such a problem in our sector?

Organization leaders: plan first, then hire.

Ask yourselves: Is our board committed to fundraising (not just as an idea, but as a board activity)?

Will we support this new person with an adequate salary, authority, budget, and staff?

Do we have realistic expectations for developing a fundraising department?

Do we have realistic expectations for the time it will take and the funding it requires?

Development professionals: look before you leap.

Ask yourself: Is this an organization with a culture of fundraising?

Will I be able to grow something wonderful?

Or will I be blamed when unrealistic expectations don’t bear fruit?

What’s the expectation for my time?

Have they outlined priorities?

We do this work because we care about the needs in our world.

Fundraising is mission.

But we can’t feed ourselves on mission. We can’t live full lives on mission alone. We have other obligations – families, communities, friends – that matter to us as well.

If you’re adding a fundraising professional to your staff – and you should, if you’re serious about fundraising – plan first. Don’t waste your organization’s time or a well-meaning fundraising pro’s, either. This should be a long-term change in your organization’s culture, not a quick solution to all your problems.

If you want to succeed, you need to give your new person all the tools she needs to succeed. And you need to be sure your organization is ready to fundraise. The entire organization, not just your development officer.

No magic fundraisers. Don’t expect miracles.

It’s not fair to you, to your new hire, to your other staff, to your board.

It’s not fair to your donors.

And it’s not fair to the people you serve.

Filed Under: Blog, Caring for yourself, Planning Tagged With: culture of philanthropy, Fundraising profressional, nonprofit organization planning 7 Comments

The secret ingredient every fundraising program needs most

It takes time to growDid you know they make rice now in microwave cups?

It wasn’t as if putting rice in boiling water was hard.

But I’ll admit I like the little single-serve cups – no clean up, 60-second satisfaction.

Your fundraising program doesn’t work that way.

Sorry for the bad news. But if you want a strong program, quick fixes won’t do it.

What does it take?

Time.

Building relationships, hard work, trial and error – and they all take time.

Last fall I wrote about the struggles many fundraising professionals face in their jobs.

That post hit a lot of nerves. I heard from so many people – anguished, angry, frustrated and sad.

They told me things like:

My organization lost two full-time employees recently and decided not to replace those positions. Instead the ED opted to redistribute the work to remaining employees.

…..

I recently left a fundraising job because in trying to fulfil the mission to help people have better lives, I was jeopardizing my own well-being.

…..

Why are two highly-educated and smart women dreaming about low-wage employment? Because at least these jobs have achievable expectations, clear start and end times, and time away from work.

…..

My job description keeps growing. Rather than finding the right people for the needed positions, we’ve kept folks who aren’t pulling their weight and keep adding things to my job. It seems every time I have a success, I’m given more responsibility.

Bottom line? Turnover in our sector is high.

High enough to affect organizations’ ability to fundraise and perform their missions.

While repeated turnover and long vacancies are costly in any position, not having consistent leadership of a fundraising program almost guarantees that an organization will not achieve consistent results… Cultivating these relationships with a broad base of donors takes multiple years and constant attention—difficult if not impossible with premature departures and long vacancies in the development role.
From UnderDeveloped

What about you?

How many fundraising staff have you replaced in the last 3 years?

A study shows that staff turnover increased to 19% in 2014. I’m betting you know what yours is.

But do you know how much transitions set your donor relationships back?

Fundraising staff are not there to simply perform tasks. They’re there to build relationships.

And yes, everyone in the organization – not just your executive director, not just the development director, not even just the development staff – should be building relationships for the organization.

And while those relationships center on the organization and its mission, it’s still personal.

Every time a trusted connection leaves your organization, you lose something important.

Here’s a good analogy.

I had lunch recently with a wise colleague who underlined this for me. He told me:

Fundraising is like farming.

It’s hard, day to day work. And you might not see the results of your labor for a long time.

It could take ten years or longer to build a solid program.

You can’t get there without planning.

You can’t get there without an investment in your fundraising program.

Most importantly, you can’t get there without investing in your people.

Loyal donors and dependable income don’t happen overnight.

So why do we prioritize today at the expense of tomorrow?

Yes, I know. You need money today in order to get to tomorrow.

But the answer isn’t microwave rice thinking. The answer is planning.

Plan to hire well. Then plan to invest in ongoing learning and staff development. Staff are the most important asset an organization has.

Organizations that allow staff to learn and grow (and maybe even have a life) do better.

What’s really important.

Look, we measure our results in dollars – by campaign, month, or year over year. (Are you measuring donor retention and lifetime value?)

What about staff retention and the impact of turnover on donor relationships?

What we chose to measure is what we decide is important.

Plant now. Choose good seed. Care for the soil. Remove the weeds. (And cultivate patience while you’re at it!)

Grow your program with an eye on the long-term.

Questions for you:

  1. Have you seen the impact of long-term staff on a program?
  2. Have you seen what happens when turnover becomes a way of life at an organization?

Share your experience in the comments, please!

And if you like the post, please share!

…..

Some friends have recently posted good articles about leadership and staffing. Suggested reading for you:

Investing in Talent: What’s Good for Business is Essential for Philanthropy

Re-Thinking the Crisis in Fundraising

Hey, you want nonprofits to act more like businesses? Then treat us like businesses

 

Filed Under: Blog, Planning Tagged With: donor relationships, fundraising staff, organizational planning 5 Comments

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