2 different frames

Framing Year-End Philanthropy: Behavioral Science Tweak

Are you framing your ask as an “annual appeal” or as “we only ask once a year?”

A growing body of research in psychology and behavioral economics shows how you frame your ask can have a big difference in your fundraising results.

Much of this has to do with how people mentally account for all consumer ‘purchases,’ including charitable giving.

Researchers have found people don’t treat all of their money (or time, effort or other resources) as if they have one big pool of it. Rather, they have separate mental accounts. When they spend resources they keep track of that expenditure based on the mental account it came from.

This has significant fundraising implications, so it’s important to delve further into this mental accounting principle.

Leave a commentAnnual Giving

#GivingTuesday or #GratitudeTuesday? Choose!

I’ve long been an advocate of turning the tables on #GivingTuesday and using the “giving” part of the day to give to donors rather than add yet one more ask from them in an already crowded solicitation season.

If you want gifts, you must give them. 

#GivingTuesday is one of those things that sounds good on paper, but in actual implementation it can be less than ideal.

Why?

Because it comes smack dab in the middle of most folks’ annual campaigns. So there’s often little time to do it right. And it can suck your energy and focus away from other critically important year-end fundraising efforts.

I’ve got a better choice for you.

Flip the idea and rather than asking folks to make a symbolic gift to you, why don’t you make a heartfelt gift to them?

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TWO Strategies to Tell a Compelling Nonprofit Story

I always tell nonprofits writing appeal letters to tell a story. One compelling, exceptional story.

Actually, you need TWO compelling stories.  We’ll get to that in a minute.

First…

Forget the data.

Forget the history of your organization.

Forget the explanatory prose about your processes.

Forget the list of all your programs.

Forget the superlatives about your longevity, awards, and so forth.

That stuff is compelling only to you. Donors don’t care. It’s just not relevant to them. At least not right away. Donors don’t have time to enter into all your self-indulgence.

Really, most folks don’t have time for you at all.

But…

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Psychology of Securing Lasting Nonprofit Donor Commitments

I recently happened on an article by Otis Fulton and Katrina VanHuss of Turnkey, Trump Buyer’s Remorse? Not Likely…. It relates to one of Robert Cialdini’s principles of influence and persuasion: “commitment and consistency.”

The main point is this:

Once we make a decision, and strongly attach ourselves to an idea by agreeing orally or in writing, it’s more likely we’ll stick with that decision than change our minds.

Because we are wired to want to be consistent.

That to which we commit becomes congruent with our self image.

What does this mean for you as a fundraiser?

2 CommentsDonor Retention

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Why Would a Donor Give to Your Charity?

“People do not give to the most urgent needs, but rather they support causes that mean something to them.”

This is the finding from a report done by the Centre for Charitable Giving and Philanthropy at the University of Kent: “How Donor Choose Charities.”  They begin their study from the widely-accepted premise that charities exist primarily to help needy people and the desire to meet needs is a key criterion in the selection of charitable beneficiaries. Interviews with committed donors found this was not the reason they gave. In brief, the study concludes:

Giving and philanthropy have always been supply-led rather than demand-driven: the freedom to distribute as much as one wants, to whom one chooses, is what distinguishes giving from paying tax. Yet the methods used to encourage donations tend to assume that philanthropy depends on objective assessments of need rather than on donors’ enthusiasms. The tendency to overestimate the extent to which people act as rational agents results in fundraising literature that often focuses on the dimensions and urgency of the problem for which funding is sought. The assumption underlying this approach is that donations are distributed in relation to evidence of neediness, when in fact much giving could be described as ‘taste-based’ rather than ‘needs-based’.

If there was ever a time to commit to finding out more about the folks on your mailing list so you know what floats their boats, this report indicates that time is decidedly NOW. Otherwise, you’re just ‘spraying and praying’ as you buy into the conceit that “if only” folks knew about the need we address they would give.  Because they “should.” That’s not why folks give.

In fact, the study cites four criteria that influenced donor decision making, and they are not based on meeting your or your clients’ needs.

5 CommentsAnnual Giving

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Don’t Eschew Small Gift Affinity Fundraising

Did I ever tell you about the fortuitous happenstance that taught me about the power of small gift fundraising? A few years ago I went to research something online. Not surprisingly, I ended up viewing the first entry Google gave me – which was on Wikipedia.

As luck would have it, and to my delight, I ran into an awesome fundraising campaign. [This is an occupational hazard with fundraisers. We actually like and admire things like pledge breaks when they’re done well!]

Here’s what I found superimposed at the top of the screen:

DEAR WIKIPEDIA READERS: To protect our independence, we’ll never run ads. We take no government funds. We survive on donations averaging about $15. Now is the time we ask. If everyone reading this right now gave $3, our fundraiser would be done within an hour. We’re a small non-profit with costs of a top 5 website: servers, staff and programs. If Wikipedia is useful to you, take one minute to keep it online and ad-free another year. Please help us forget fundraising and get back to Wikipedia. Thank you.

I was then given the option to make a one-time gift of $3, $5, $30 or $50, or a monthly gift of $10, $20, $100 or other.

It’s not all about major gifts for everyone.

The Wikipedia campaign serves as a great reminder. Even though many nonprofits survive by the grace of 3% of their donors providing 97% of their contributed income (or something closer to the 80/20 rule) there are indeed nonprofits that are exceptions to this rule

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How Positive Feedback Boosts Nonprofit Fundraising

Recognition. Appreciation. Acknowledgment. Gratitude.

Psychologists, sociologists, philosophers, economists and historians have often studied and documented this phenomenon. It’s part of our quest for meaning and connection.

  • Darwin talked about “survival of the most loving.” Communities who took care of each other were the “fit” ones.  Similarly, those members most sensitive to group feedback survived. It’s difficult to make it alone.
  • Maslow talked about the need for love, community, esteem and self-actualized identification with a higher purpose.
  • Psychologist Matthew Lieberman, in “Social, Why Our Brains Are Wired to Connect,” writes about how MRI scans reflect that our brains are hard-wired to respond to positive recognition from others.

I like the way

1 CommentDonor Retention

Are you reading your major donors right?

Are You Reading Your Major Donors Correctly?

A year ago I had the opportunity to present a major gifts master class where Jay Love, Founder and President of Bloomerang (and a board member and major donor himself) offered his thoughts on major gifts development from the donor’s perspective.

SO important!

The more that you know, the less they’ll say “No!”

  • The more you know what floats your donor’s boat,,,
  • The more you know what other things compete for your donor’s attention (not just causes, but also career and family)…
  • The more you know how your donor prefers to communicate…
  • The more you know how your donor prefers to be wooed…
  • The more you know how your donor prefers to be recognized…

If you can’t show your major donor prospect you really know them, how can they trust you’ll be a good steward of their passionate philanthropic investment?

We all want to be known before we enter into a major engagement.

Which brings us to the crux of successful major donor development. Not surprisingly, it begins and ends with the same thing.

Can you guess what that might be?

1 CommentMajor & Legacy Gifts

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4 More Magic Words that Increase Charitable Donations

In a recent article I gave you the “Holy Trinity” of fundraising success:

You, Because and Thanks.

Those are essential ingredients for any fundraising appeal.

Today I’m going to give you four more magic words:

Small, Immediate, Expert and Support.

Each of these packs a bigger punch than you might imagine, and tends to persuade folks on the fence to jump right off and land in your court.

Let’s take a closer look at how this works.

4 CommentsAnnual Giving

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Last-Minute Strategies to Boost Year-End Fundraising

Do you have that year-end feeling? You know, the one many fundraisers get around this time of year?

Kind of frenetic? Anxious? Stressed?

You’re not alone.

The average nonprofit receives 30% of all donations in December. And 12% arrive in the last three days of the year!  So, yeah, it’s really busy.  And a lot is on the line.

I was talking with one of my clients, who apologized for acting so frantic and rushed.  She said:

“Do you remember having that feeling? Did you get it when you used to work in the trenches? That worry that maybe you won’t hit your numbers? That people won’t give as much as they gave last year? That some of your major donors won’t renew. That maybe you’re not sending enough emails? That you’ll wake up on January 1st and be in BIG trouble?”

Oh, yeah. That feeling…

Of course I’ve felt it!  But over the years I’ve learned a few tricks to help overcome that feeling.

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3-Word Recipe Guaranteed to Raise Money

I consider these three words the holy trinity of fundraising success.

I’ve written about these words before, and do so again as an important reminder. Because you’ve still got time to wrap them into your year-end fundraising appeal. And, if you do, I guarantee you’ll raise more money.

They are simple.

They are easy to remember.

They really work.

Plus, if you wrap them up with some emotional color, you’ve got an offer that can’t be refused.

Let’s take a look.

3 CommentsAnnual Giving

Just as there's a first kiss, there's a first time for everything for your nonprofit.

How to Persuade New Donors to Join Your Nonprofit Mission

What makes us think a perfect stranger, who’s never given to our organization before, will choose to do so?  It’s highly counter intuitive.

People are more likely to continue doing what they’ve done before.
Commitment and consistency is one of Robert Cialdini’s six principles of influence, and it’s useful in nonprofit marketing and fundraising. But only if you’ve got existing donors.
We talk a lot in fundraising professional circles about the folly of concentrating too many resources on donor acquisition and too little on donor retention. And for good reason. It’s significantly easier and more cost-effective to keep a current donor than to recruit a new one. Why?
It’s appreciably more difficult to get people to reach a new decision than to repeat an old one.
Whenever I coach volunteers to do fundraising, I always suggest they remind current donors how many years they’ve already been giving to the organization.  This acts as a decision-making shortcut for these folks. Aha! They already decided this was a good idea.  No need to sweat it out again.  Done!
But… what if you’re a start-up organization that doesn’t have many donors?
2 CommentsAnnual Giving

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5 Proven Content Strategies to Convert More Nonprofit Customers to Donors

Your nonprofit has a variety of different constituencies. You need to devise communication strategies that connect with all of them.

Because, guess what?

All of your ‘customers’ are potential donors.

Which is why you should take mastery of nonprofit content marketing seriously.  It’s not something you should simply delegate to marketing staff.

They need your input. And you need theirs.

Let’s consider your different nonprofit ‘customers’ for a moment.

They begin with actual users of your services… then range to volunteers… social media followers and advocates… community leaders with whom you interact… and philanthropic donors. Then there are your most likely potential ‘customers’ in all of these categories, including

1 CommentContent Marketing

How to Use Psychology to Pre-Suade Donors to Give

What can you do now to prime the pump so your donors are pre-disposed to give to you when they receive your year-end appeal?

In Part 1 of this two-part series I described some new research from Robert Cialdini, author of the seminal Influence: The Psychology of Persuasion, and the new book, Pre-Suasion: A Revolutionary Way to Influence and Persuade, and discussed how you might apply this research to your fundraising strategies. We learned the importance of leading with a “gift” or “favor” that would incline your donor favorably in your direction.

I promised that today we’d take a look at how to cement the likelihood your favor is returned, as well as explore some types of favors that are likely to be perceived as valuable.

1 CommentAnnual Giving

A Revolutionary Way to Influence Year-End Philanthropy

You asked a bunch of folks to give a year ago. Some did. You thanked them. Once. Maybe twice. Now you want to ask them to give again this year.

What’s wrong with this picture?

Too often nonprofits ask once; then assume folks who’ve made the decision to give will continue to do so. This is similar to retailers thinking that once someone has bought from them they’ll automatically do so again. Not true in either case.

4 CommentsAnnual Giving

How to Use the Multiplier Effect to Inspire Annual Giving

People love to S-T-R-E-T-C-H their dollars.

This is the basic psychology underlying “BOGO” (Buy One; Get One free) and “2 for the price of 1” sales.  For a variety of reasons, we’re crazy about getting a good deal!

If I get more for my money, that’s smart.

It’s frugal to find ways to leverage our family’s spending.

I like to use my money in the most effective way I can.

It’s easy to apply these desires – to be smart, frugal and effective — to the creation of compelling fundraising offers.

2 CommentsAnnual Giving

10 Ways to Build Donor Trust and Overcome Negative Views about Charities

trustWhat prompted me to write this article was a recent post by Matthew Sherrington on the 101 Fundraising Blog about the dangers to the public benefit sector posed by erosion of trust.  We’ve known for some time that whenever there’s a charity scandal, the bad behavior of one player can become detrimental to all.  But over the past year in the U.K. the problem has become even more challenging. Could it happen here?  Matthew says “yes.”  And I concur.  Trust is a fragile thing.

In the U.K what happened was a perfect storm of perceived over-solicitation and insufficient outcomes, exacerbated by a barrage of media that sounded an alarm about nefarious practices.  Trust plummeted. A wake-up call, for sure.

But what does it mean?

2 CommentsDonor Retention

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The Meaning of Philanthropy, Not Fundraising – Part 1

Philanthropy is a mindset. An embracing culture. A noble value.

Fundraising is a means towards that end. Servant to philanthropy.

Philanthropy, not fundraising.

This has been the tagline for my business and blog since I began Clairification in 2011. It grew naturally out of my experiences working as a frontline development director for 30 years. I’ve always insisted that no single person could possibly receive credit for a donation.  “Donors don’t give because of development staff,” I’d tell program staff.  “They give because of the great work you do!”

8 CommentsCulture & Values

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10 Ways to Get More Donors for Your Nonprofit – Part 2

10 ways to get more donors for your nonprofit using principles of psychologyIn Part 1 of this article I encouraged you to make this the year you begin to study psychology and apply it more to your integrated development (marketing and fundraising) strategy. I shared with you an infographic developed by marketing strategist Gregory Ciotti that some of the psychology underlying human behavior. Because there’s a lot for nonprofits to learn and apply, I’m taking you through them one by one.  Today let’s complete the Top 10 list.

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10 Ways to Get More Donors for Your Nonprofit – Part 1

10 ways to get more donors for your nonprofit using principles of psychologyToday’s focus is on donor retention, as our year-long “Dive the Five” virtual course continues!  In fact, you can use the principles you learn here for donor acquisition as well. In for-profit parlance, we’ll be discussing how to “convert customers.”  In non-profit parlance it’s all about turning prospects into donors and donors into repeat donors.

I encourage you to make this the year you begin to study psychology and apply it more to your integrated development (marketing and fundraising) strategy.

Leave a commentAnnual Giving

Clairity Click-it Year-End Giving Edition 3: Online Frenzy Time

In my previous Year-End Fundraising Planning Editions One  and Two I promised I would have more for you as year-end – and the biggest fundraising time of the year for most nonprofits – inexorably approaches.  Salsa reports that end-of-year giving can result in 40% or more of total yearly donations.

Online giving gets particularly frenetic at this time of year.

Leave a commentClairity Click-it

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It’s Not All about Major Gifts: 10 Ways to Succeed with Small Gift Fundraising

Small giftsNot long ago I went to research something online and ended up viewing the first entry Google gave me – which was on Wikipedia. To my delight, I ran into an awesome fundraising campaign (this is an occupational hazard with fundraisers – we actually like and admire things like pledge breaks when they’re done well)!

Here’s what I found superimposed at the top of the screen:

2 CommentsAnnual Giving

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Foolproof Fundraising Trick Mom Knows and You Need

I’m a huge fan of a too-little used tool when it comes to fundraising. It’s called behavioral neuroscience, and it’s pretty awesome stuff.

Moms use it all the time without evening thinking about it. Moms. Just. Know.

I’ll bet you even use it yourself. Unconsciously.

But what if you could use it intentionally to persuade prospective donors to say “yes” to investing in your cause? Or to give more often or with greater passion?

You can!

Today we’re going to talk about one foolproof way to get donors — and anyone — to do what you want them to do.

And it’s as simple as Mom saying “Because I said so!”

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How to Magically Multiply Your Donors

By now I hope you’ve read the latest Fundraising Effectiveness Survey results and know that, on average, U.S. and UK nonprofits are retaining only 41% of their donors. This is abysmal, and it makes me sad.

When I started out in fundraising, many moons ago, I consistently retained 60 – 70% of my donors. And I thought that was insufficient!

While there are all sorts of reasons this is happening, what matters most is stopping the attrition before your nonprofit withers and dies. Because at these rates, after seven years you’ll only have 10 out of 1,000 new donors you acquire today. You read that correctly! Did I mention that first-time donor retention rates are only 27%?

Time for some magical math.

2 CommentsAnnual Giving

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7 Proven Keys to Inspire Nonprofit Boards to Lead and Give

My first year as a nonprofit fundraiser was before social media, cell phones, email, computers and even FAX machines. I had never heard the term “information overload” and I wasn’t distracted by interruptions every five minutes.  Why do I mention this?

Because in today’s fast-paced world we are often so bombarded with bells, whistles and flashing lights that we lose sight of the basics. We lose focus.

Back in the day, I focused.

My number one focus was our board of directors. I knew that before we could get others to give, the board needed to give. Passionately.

4 CommentsBoards & Leadership

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How “Because I Said So” Gets Donors to Give to Your Nonprofit

I’m a collector. I collect red and white kitchen memorabilia, flour sifters, tablecloths and fundraising appeals. I also tell my clients to become collectors (but just of the last item on my list!). I ask them to collect only appeals that demand their attention and cause them to give. After all, isn’t that the true measure of a fundraising appeal’s effectiveness?

I encourage them to ask everyone in their organization (other staff, board members, volunteers) to share winning appeals with them. Then I ask them to share the successful appeals with their team and endeavor to tease out what it is about these appeals the recipients find so irresistible.

Figure out what works; then copy it! After all, imitation is the sincerest form of flattery.

This is a great exercise for you and your team, and over the next several posts I’m going to suggest some things I find common to the most successful fundraising appeals. Ask these questions of the successful appeals you’re reviewing. Let’s begin!

4 CommentsAnnual Giving

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7 Proven Keys to Get Nonprofit Board Members to Give

My first year as a nonprofit fundraiser was before social media, cell phones, email, computers and even FAX machines. I had never heard the term “information overload,” and I wasn’t distracted by interruptions every five minutes.  Why do I mention this?

Because in today’s fast-paced world we are often so bombarded with bells, whistles and flashing lights that we lose sight of the basics. We lose focus.

Back in the day, I focused.

My number one focus was our board of directors. I knew that before we could get others to give, the board needed to give. Passionately.

1 CommentBoards & Leadership

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It’s Not All about Major Gifts: 10 Ways to Succeed with Small Gift Fundraising

Small giftsToday I went to research something online and ended up viewing the first entry Google gave me – which was on Wikipedia. To my delight, I ran into an awesome fundraising campaign (this is an occupational hazard with fundraisers – we actually like and admire things like pledge breaks when they’re done well)!

Here’s what I found superimposed at the top of the screen:

6 CommentsAnnual Giving

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5 Secrets of Psychologists: How to Get Donors to Say “Yes”

In 1984 Robert Cialdini wrote a groundbreaking book, Influence: The Psychology of Persuasion, outlining principles of influence that affect human behaviors.

These principles are well documented, and can be incredibly useful to fundraisers.

Even someone inclined to support your cause may not give unless you push the right buttons.

A new infographic visually makes the point that, while technology advances, human triggers remain constant.

Here are five triggers — with a few suggested strategies (I’m sure you can come up with more) —  to use these principles in your offline and online relationship building with prospective supporters:

5 CommentsAnnual Giving

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To Sell is Human; To Give, Divine – Why We’re All in Fundraising Now

Philanthropy; Not Fundraising

I recently attended an inspiring talk by Daniel Pink, author of To Sell Is Human, and found myself furiously taking notes.  Next thing you know I was impulsively buying the book (autographed, of course)! Do I have buyer’s remorse? Absolutely not. Zero. Zilch. Nada. Everything he has to say is so directly applicable to fundraising and the nonprofit sector that [IMHO] it’s a ‘must read’ for those of us in the philanthropy business. Here’s why:

We erroneously think “selling” is bad.   In fact, it’s probably even more of a taboo word in nonprofits than the word “fundraising.” People just don’t like it. Pink did an experiment where he asked people to give him the first word that came to their minds when they thought of “sales/selling.”  They answered with such words as:

14 CommentsCulture & Values