I Resolve to...

A year ago January, the Advancement Best Practices LinkedIn Group asked their members to list their fundraising resolutions or goals for 2012. Here is what they answered:

42% Build a philanthropic culture
20% Link metrics to ROI
17% Engage trustees/ CEO
16% Identify new potential donors
5% Not one of the above

I think it is interesting that the top goal was to build a philanthropic culture. You would think that was a given for anyone working for a nonprofit. The fact that it was yet to be built, (not even simply improved), says something about the state of our business. If a nonprofit or charity doesn't have philanthropy at the core of what they do, how are they surviving? How are they connecting with and motivating their donors? By coercion? Yikes!

According to Guidestar, up to 60,000 nonprofits fail each year and in 2010 8% claimed they were in imminent danger of going under. Why?

I think the lack of a philanthropic culture is part of the problem. But more importantly, there is a fundamental misunderstanding as to how and why donors give. Here is what nonprofit leadership must understand:

• The heart is more important than the head. Executive Directors and Boards are often embarrassed to present the emotional side of their story. They want to "convince" the donor that they are a good "investment". Leave the investment up to the bank. Your charity or nonprofit most likely grew our of a compelling need. Don't forget that. 
• You must ask to receive. The classic "If we build it they will come" is hooey. If you don't ask, someone else will -- and they will get the donation.
• Everyone in your organization must be comfortable with the fundraising process. I have heard some fundraisers say, "Everyone in our organization is a fundraiser". I don't buy that. Fundraising is a skill forged from experience and an art born of personality. Not everyone is good at it nor do they have to be. If this wasn't so, why would we hire fundraisers? But the entire staff should understand how it works, if only to support the efforts of the fundraising team. The one thing that can kill an organization is an employee who is constantly denigrating the fundraising process.
• Take advantage of every avenue to raise funds. There are 1.5 million nonprofits in the US. That's a lot of competition. Make it easy for the donor to give to you through the channels they prefer. You must have an annual fund program, solicit major gifts, make use of social media and e-philanthropy, create profitable events, accept planned gifts, and keep abreast of whatever is working for other organizations.
• Test, test, test. Be fiscally prudent but don't be afraid to take risks. Risk can often be reduced by testing. I am constantly astounded to find experienced nonprofits that fail to test fundraising approaches. 

There are certainly other elements of successful fundraising. As the survey identifies, link your metrics to return on investment. (This is especially true of events. I am sure many organizations would be shocked if they included direct and all indirect costs in their event profitability assessment.) Engaging trustees and all leadership in the mission as well as the fundraising process is helpful. And yes, finding new donors is important. But, I would have ranked "steward current donors exceptionally well" ahead of prospecting and that isn't even listed! Your most valuable donors are the ones who have already provided you with a gift.

What are your resolutions for 2013? I will list mine in my next post.

Half of Nonprofits Say They Are Hurting

Half of the 500 nonprofits recently surveyed by Guidestar state that fundraising results have been very bleak this year. The percentage of charities reporting a decline was the second highest since the survey was started 11 years ago. Not only were the charities receiving fewer gifts, but even contributions received were smaller than before. Many institutions predict that the traditionally strong year-end gift giving period will not close the gap. Worse yet, this seems to be happening at the same time that many nonprofits state that their communities are requiring more of their charitable services.

Now, the recession has been dragging on for a number of years. Why has 2012 been so tough for charities? One fundraising professional speculates that many nonprofits have done a poor job of stewarding their donors and its "coming home to roost".

For me, stewardship is receiving a high priority. I have enlisted my Board to call all our donors and thank them for their past support. I have also engaged staff and volunteers to call unrenewed supporters. We are finding as many ways as possible to be donor-centric and share impact and outcomes of our donors' philanthropic support.

Take the time. Reach out. Touch your donors in an authentic, meaningful way. And make sure it is not just once a year but throughout the year. It may take a while to see results but it's worth it. The "new reality" is that it is going to take a lot of effort to retain and engage your supporters. But frankly, it's probably something we should have been doing all along - isn't it?

Going That Extra Mile

How often have you experienced someone going "above and beyond"? It seems to be a rare occurrence these days, especially in a retail experience. (I don't think the mindless, robotic response, "Can I help you find something" thrown your direction by a busy salesman as they speed past you on their way to the mysterious "back room" counts.)

When it does happen, when you find yourself in front of someone who gives you their full attention, who really seems to want to help - and knows how to - it can give you tingles.

A number of months ago, Sasha Dichter, intrepid blogger and Chief Innovation Officer at the Acumen Fund shared a story of one such experience he had at an Apple store. His salesperson's name was Hakiem and his post was a letter of thanks addressed to him:

Dear Hakiem,

I know everything at the Apple Store is  designed to  be techno-blissful, but you really took things to the next level. Not only did you shake my hand, make me feel welcome, and help me get a Genius Bar appointment in less than five minutes, but you managed to make me feel just a little bit less bad about dropping my iPad on 6th avenue and cracking the screen (and I was feeling REALLY bad). 

I was already appreciative of you for that, but then as I was walking up 9th avenue, you ran out of the store and up to 15th street and stopped me to make sure that my problem had been solved. Wow. 

I bet you go above and beyond every day for folks, and I'm sure they appreciate it more than you know. I'll be sure to tell everyone who goes to the Apple Store at 4th and 9th in New York City to look out for you.

Okay. Why don't we all provide this sort of care and service? It has incredible impact just because it is so infrequent. And it really didn't take much for Hakiem to do it. Probably no more than a couple of minutes to run down the street and make sure Mr. Dichter was satisfied.

Think about how much time we spend in the fundraising profession researching, cultivating, soliciting -- hours and weeks, even years. And yet, we often overlook the truly personal and momentous act of going "above and beyond" that is not only very gratifying for the prospect, but it makes us feel so good as well.

Do it. Go the "extra mile" because it is so rarely done. Do it because it is the right thing to do. Do it for how it makes you feel. Our profession needs it. And frankly, the world needs it.

Quote of the Week: Building a Culture of Philanthropy

"Donors are not considered a means to an end, but just as vital as the work you carry out meeting the worlds greatest needs." 
Jeff Schreifels 

The Passionate Giving blog is launching a six part series about how to build a culture of philanthropy at your nonprofit. The brains behind The Passionate Giving blog, Jeff Schreifels and Richard Perry, know their subject well. They have over 55 years of experience fundraising for nonprofits such as Oxfam, The Salvation Army, World Harvest Mission, and United Cerebral Palsy.

Here are the key elements mentioned in their first blog post that they state must be part of an organization intending to build a vibrant culture of philanthropy:

• The mission of the organization includes donors.
• The leadership of the organization and the entire staff embrace the idea that fundraising is essential in fully carrying out the work and that it brings joy to donors to  give.
• Board members are your biggest cheerleaders.
• It's hard to tell who is working in "program" and who is in "development".
• Donors of the organization trust it.
• Everyone in the organization knows "the story".
• When anyone walks through the doors of the organization what is felt is love, empathy, righteous anger, grace, hard work, personal care, and...more love.

Here are my comments regarding these excellent points:

- I am not sure I have ever seen a nonprofit mission statement that includes donors. (If you have one that does I would love to see it.) What a great idea! 

- Although most nonprofit employees will grudgingly admit that fundraising is a "necessary evil", fewer accept the need for everyone to participate in the fundraising process, and still fewer believe that true philanthropists delight in giving.

- If board members are not your biggest cheerleaders, should they be on the board?

- Too often staff and program people see themselves in completely different worlds. How often have you heard program people speak disparagingly about "the suits", or development people complain of the unrealistic demands of the field staff? An organization with a flourishing culture of philanthropy respects each other's work and worth. 

- A nonprofit will not survive if there is no trust.

- Does everyone at the nonprofit have the same vision, a sense of the mission, a passion for the organization's core story regarding why it exists? Do they appreciate the incredible impact it is having on their community or even the world? Is it a culture where each employee can't wait to go to work each day?

- Walk through your door some day with the mindset that you are a new visitor. How are you greeted by the first person you see? What kind of small talk happens in the hallway, in the lunchroom, around the water cooler? Is it whiny and critical or is it filled with positive enthusiasm. Office atmosphere has a way of creeping into all that you do, even your interactions with your supporters. Make sure it is filled with the same optimism, care, and compassion you bring to your mission.

These are great ways to ensure that your organization is fostering a culture of philanthropy. Be sure to check out the Passionate Giving blog for their next five installments.

Thinking Outside the Box: Donation Payments

I don't know about you but I don't keep a lot change -- or even cash -- in my pocket any more. I use my discount debit or cash rewards credit cards nearly exclusively. Recently, I have been wondering how that might affect charities that depend upon "point of sale" or impulse contributions.  How has that adversely affected an organization such as the Salvation Army and their extremely lucrative Red Kettle program. Even though Red Kettle contributions exceeded $147 million in 2011, how much revenue was lost because people don't have as much loose change?

Well, the Salvation Army isn't taking any chances and last year started using a device that can be plugged into a smart phone, an iPad, or an Android device and accept credit card donations on site. A volunteer can take a contribution with his left hand as he continues to the ring the kettle bell with his right. It is called Square and it was developed by Jack Dorsey, the fellow that created Twitter. Unlike the clumsy credit card machines that could barely be jerry-rigged on a remote site, Square is really simple. Plug the Square device into your smartphone's headphone jack.

You can then swipe your donor's card, punch in the payment or donation amount, and have the donor sign the touch screen. Done!

Pretty cool, huh?









There is another device that might just be a boon to nonprofits unwilling to leave even the smallest contribution on the table. It is called DipJar. DipJar was developed in 2008 by another enterprising entrepreneur, writer, and (aspiring) academic named Ryder Kessler. As the story goes, Kessler was at his favorite coffee house and remarked to one of the baristas that although the place was "crazy packed" that night, the tips must make up for the mayhem. He was shocked to learn that this wasn't the case and that gratuities had really plummeted in recent years. Apparently, few patrons had much pocket change since they were making their beverage purchases on plastic. Well, as any brilliant entrepreneur would do, Ryder decided that this problem needed a solution. Hence, DipJar was created.

DipJar is particularly spiffy because it blends high-tech with high-tactile. Its design is simple and familiar. Slide your card into the opening just like dropping a tip into a cup. DipJar is set up to accept $1 dollar donations for each dip or swipe but it could be modified to charge different amounts.

How could you use tools such as these to advance your fundraising? Let me know about great, outside the box ideas.




*Thinking Outside the Box is an occasional post about innovative possibilities in fundraising.

Donors Care About IMPACT

Donors care about impact.

That's not particularly surprising. It makes sense that donors want to know that their donation has made an appreciable difference for the nonprofit they are supporting. What has not been so clear is exactly what sort of information does the donor consider valuable in judging impact?

According to a new report from GuideStar USA, Inc. and Hope Consulting entitled Money For Good II, if charities can compellingly communicate impact to donors, serious money could move to the most effective institutions -- as much as $15 billion!

The report addresses these important issues:

• What information do donors want and how and where do they want it?
• How can you meet the demand for information, including specific tools and initiatives?
• How other nonprofits are already doing this and the rewards they are reaping.
• A view of the future of charitable giving and the nonprofit sector.

What do donors want?

According to the report, 88% of donations go to a nonprofit a donor has given to at least once before. Donors are comfortable with "the familiar" and need to trust the institutions they support. But far more funds could be directed to nonprofits if donors had easy access to better information. It is interesting to note, many donors don't take the time to research the nonprofits they are considering supporting.

Individual Donors Research Some Causes More Than Others 
(Chart shows the percentage of donors that research various nonprofits)

According to the research all donors want to know:

• The financial picture, including how an organization spends its money
• That the nonprofit is legitimate
• The basics of the organization -- its mission, approach, and make up
• The breadth and depth of the cause
• The nonprofit's impact

Most of the above information is relatively accessible. But  the researchers believe information about a nonprofit's impact is grossly neglected.

Why is this so? It would seem that the impact of the work of the nonprofit would be a number one communication focus for all institutions. Unfortunately, this is too often not the case. Are nonprofits too busy? Are their resources stretched so thin they have no time to do the research and disseminate the information? Probably.

The report is emphatic that the nonprofit must make an internal commitment to collecting information about impact.

Collect that information and then communicate it to your donors through a multitude of channels -- websites, emails, newsletters, solicitation letters, videos, annual reports, and social media platforms.

Again, to quote the report, when you lead with impact, you reassure your existing donors that you are using their money wisely, and you attract new donors who are looking for organizations doing the most good.

The report includes a helpful Charting Impact Tool to begin assessing what impact information you should be communicating to your donor. It includes a series of questions, ways to answer, and reasons why such as: 

• Question: What is your organization aiming to accomplish?
• How to answer: Define how your organization will change the world for the better.
• Why it matters: Donors want to know what you stand for. 

As well as:

• Question: What are your strategies for making this happen?
• How to answer: Explain what you are doing to accomplish your goals.
• Why it matters: Donors need to understand, clearly, what you do.

(Check out the other questions and responses in the Charting Impact Tool. You'll find it quite helpful as you collect your impact information.)

Charity rating services and research resources such as Charity Navigator, GuideStar, Network for Good, and the Foundation Center are all playing a role in providing third party, non-partisan information on nonprofits for the potential donor. And although emotion plays an important role in charitable decisions, data from these sources help satisfy the donor's need for the rational aspect of the giving process.

Take the time to collect those impact stories, the third party endorsements, the data that shows your effectiveness. Make it easy for donors to get the information they want. Don't make them dig for it.

Earn some of that $15 billion in available gift revenue. You deserve it!

Quote of the Week: YOU are awesome!

I saw this great cartoon from the Marketoonist site authored by Tom Fishburne with the title 5 types of social media strategies - (by way of Jeff Brooks' Future Fundraising Now blog). 

Some of the most cutting and insightful commentary on modern marketing comes by way of the artistic wit of Mr. Fishburne. Fundraiser Jeff Brooks notes in his own blog's commentary on this 'toon that the self-absorbed, self-focused approach so often promoted on social media platforms must be avoided by fundraisers -- and all marketers, really.

Repeat after me- It's all about the donor. It's about how we can help them feel awesome. It is how awesome they ARE.