Nonprofit Strategy: Three Things to Cleverly Finagle

Whiteboard planning sessionOnce upon a time I let folks know I’d “finagled” a discount for them. After one reader told me the word “finagle” means “to obtain something by devious or dishonest means,” I sent an apologetic “Ruh Roh” email. I received a lot of forgiving (thank you!) feedback. Many kindly supported my initial use of the word “finagle.”

Apparently, there is more than one definition of finagle.

Susan sent me this:

finagle (third-person singular simple present finaglespresent participle finaglingsimple past and past participle finagled)

    1. (transitive) To obtain, arrange, or achieve by indirect, complicated and/or intensive efforts.

finagle a day off work

    1. (transitive) To obtain, arrange, or achieve by deceitful methods, by trickery.

finagled his way out of a ticket by pretending to be on the way to a funeral, distraught

I think the word has come to mean “using super-human negotiating skill to obtain a superior result

Terry sent me this:

I thought you meant “obtain (something) by indirect or involved means.” I always felt it was sort of clever or creative negotiations to get something done when it seemed like it couldn’t be done

Sam sent me this:

I always thought it was someone who could manipulate circumstances to achieve a goal. No adverse implications. No criminal intent. Just clever in being able to make something work that really shouldn’t have worked.

And there were more. I thank you all.

You made me think.

And not just about negotiation (which is a subject unto itself), but about being clever.

And thoughtful.

And about what it takes to obtain superior results.

All good outcomes require a little positive finagling to get there.

Lots of things can be good and bad at the same time.

For example,

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Donor’s Lament: You Didn’t Thank Me Properly

Cookie Monster when his name is misspelled

Everything I learned about saying “thank you” I learned from:

According to Burk’s research from Donor-Centered Fundraising, more than 80% of thank you letters start with “Thank you for your generous gift of…” or “On behalf of the Board of Directors, thank you for your generous gift of…”

Y  A  W  N

  • Want to stand out?
  • Want your donor to actually read your letter?
  • Want your donor to feel good about the decision they made to invest in you?
  • Want your donor to feel warm and fuzzy inside?
  • Want your donor to say “Aw, that’s SO nice!”
  • Want your donor to feel the opposite of bored?
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Why Smart Nonprofits Focus on Growing Monthly Giving

Three San Francisco Hearts. Polaroid Heart. Heartwave. Broad Stripes and Bright-Stars. Benefit for San Francisco General Hospital Foundation.For at least the past seven years I’ve been actively encouraging nonprofits of all stripes to prioritize beginning or ramping up their monthly giving program.

Not a lot of nonprofits were really leaning into this then. But, as much sense as it made then, it makes even more sense now.

So, I’m going to ask you: How are you doing with this?

Here’s why I’m asking.

If there’s anything the pandemic years have taught us,not to mention recent climate-related disasters, you need a dependable source of income in order:

  • To be able to sustain programming for problems that never go away.
  • To be able to weather current storms, anticipated and unanticipated.
  • To be able to reliably plan for the future.

It turns out there’s nothing as dependable as monthly donors.

In fact, donors who give to you recurrently sustain you so well a monthly giving strategy is often called a sustainer program.

Do you deserve a group of people who will sustain you through thick and thin?

Of course you do!

But you don’t always get what you deserve – unless you make it happen.

How to Make Monthly Giving Happen

As someone poetic so eloquently put it:

“Nothing will work unless you do.”

— Maya Angelou

Let’s get down to work!

There are four steps to a successful monthly giving work plan:

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5 Cardinal Sins for Nonprofit Fundraising Renewal Appeals

License Plate: NOT GR8

In my last article I talked about the importance of making a good first impression with potential donors.

It’s extremely important to have a strategy in place, just as if you were going on a first date. Those who plan ahead do well. Those who don’t? Not so much.

Both dating, and donor wooing, are a delicate dance.

But, let’s say you did a good job. Your donor prospect made a gift!

Now what?

If you like them (of course you do!), and want a second date (of course!), you’ve got to make a good second impression. And third, fourth and fifth impression. The value of a first-time donor (which often costs as much as $1.25 to generate $1.00) is not realized in that initial gift. Sustainable fundraising is all about donor lifetime value.

So, after the first gift, you definitely want a plan in place to thank and cultivate this donor throughout the year. Some communications will have an ask included, but most will be designed to build your donor’s interest, engagement and loyalty. Once the relationship is sufficiently built, it’s time to seek that second gift.

Let’s talk about the renewal appeal, and why so many of them are just gosh-darn awful.

Why Do Fundraisers Who Should Know Better Keep Committing These Sins?

Maybe it’s because of the “monkey see, monkey do” nature of human beings. We see someone else do something and assume it’s good practice. Especially when they’re a household name, just bigger than us, or someone we, another staff member or board representative hold in high regard.

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5 Secret Nonprofit Donor Retention Action Strategies

Girls sharing secretsGiving is an emotional experience. It deserves an emotional response.

Be human.

Ever notice how sometimes when we put on our work hats we cease to be human? How we somehow morph into little robotic “professionals” and become enamored of jargon?

“Lybnts.” “Sybnts.” “Recaptures.”

Not that those things aren’t important. You need goals and objectives.

And given the dreadful state of donor retention in the U.S. today (and in the U.K and Canada as well), it’s vital you be able to measure how you’re doing. Because growth in giving is a factor not just of how many new donors and dollars you acquire, but also of how many donors and dollars you lose.

If you lose as many current donors as you gain new ones, you’re getting nowhere. Fast.

Treadmills Are Only Good in the Gym

Slow down.

Think about what you’re doing and why. You may need to change your frame of mind.

When you acquire a new donor, is it for that one-time transaction? If so, that’s not a very thoughtful strategy, because it costs more money than you make to acquire new donors. In fact, you likely won’t make back your investment for 18 months or so. You won’t make it back at all if you don’t renew that donor.

Nonprofits, sadly, have been on a non-stop treadmill. Donors in. Donors out. Donors in. Donors out. So… something about just measuring this stuff isn’t really working.

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Are You Rocking Donor Retention 101?

You love me. I love you. Let's hang out and rock!

You love me. I love you. Let’s hang out and rock!

 

Really, donors definitely want to rock and roll with you. It brings them joy and meaning!

Yet, I’m going to go out on a limb and say it’s doubtful you’re rocking along with your donors unless you’re making robust use of your donor database for this purpose.

In other words, you must make donor engagement and retention a TOP priority.

Retention lives or dies in how effectively, or not, you use your database to support your relationship-building, loyalty-driving efforts.

If you think of your database as a largely undifferentiated mailing list, you’re not going to realize your potential to:

  • Boost renewal rates
  • Increase average gift size
  • Upgrade donors
  • Secure major and legacy gifts
  • Recapture lapsed donors
  • … and more!

Really, I just can’t bear to think of you not maximizing return on your investment.

And that won’t happen unless you focus on donor lifetime value.

And lifetime value will be very, very small — unless you retain and upgrade donors over time.

There are 5 Keys to Donor Retention

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Nonprofit Event Fundraising: They’ll Never Forget How You Made Them Feel

Event guests wearing masks

 

In Part 1 we looked at establishing event goals and objectives; then determining if an event was the most efficient and effective way to achieve desired outcomes. In Part 2 we reviewed 4 top event planning tips. In this last article of a three-part series on event planning we’ll look specifically at how to make the event “stick” emotionally.

1. Overall, we’ve recognized most events are less about actual monetary return on investment (ROI) than they are about return on engagement (ROE). In other words, if you’re doing an event purely to raise money there are other more cost-effective fundraising strategies.

2. However, events done right are an excellent awareness-raising, branding and donor cultivation tool. You just have to go into events fully cognizant of what success will look like, both from your organization’s and your donor’s perspectives.  Only armed with this understanding can you create events that will be worth your while.

3. Today we look at ways to make events – once you’ve decided to hold them – fulfill both your and your donors’ dreams. This is where you deliver on becoming unforgettable — in a truly great way — so the next time you reach out you are warmly embraced. In other words, this is the first step to getting event attendees to stick with you over time.

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