Man running with money

Giving Tuesday: Don’t Take the Money and Run

Man running with money

The absolute worst thing you can do the day after Giving Tuesday is nothing.

As tempting as it is to let out a sigh of relief that it’s over, resist that temptation.

It’s not time to relax yet.

Nothing comes of nothing.

And a huge part of your goal with Giving Tuesday should be to strengthen your bonds with donors.

That’s the real something you’re after.

It’s not just about the money you raise today.

Your goal with any fundraising strategy is to retain and, ultimately, upgrade these transactional donors. The name of the game in the business of sustainable fundraising is lifetime donor value. [Here’s a great book on the topic: Building Donor Loyalty: The Fundraiser’s Guide to Increasing Lifetime Value.]

Run towards, not away.

Treat Giving Tuesday as a Special Event

Like it or not, Giving Tuesday is a ‘special event.’ With all the pre-planning and post event strategies events embrace. And I don’t really like it, which is why I recommend #GratitudeTuesday as an alternative.If you’re on board with a traditional #GT strategy however, you’ll likely put a fair amount of planning, resources and time into this event. This involves the attention of more than one staffer and/or volunteer. And it sucks time away from almost everything else in the week(s) leading up to it.

It can be a real drain.

Your job is to put a stopper in that drain so all your hard work doesn’t simply swirl down the drain and disappear. Would you work super hard to create a delicious soup you simmer over the stove for hours, maybe even days, and then take one little taste before you pour it out and start all over again with a new one? Endless work. And no one really gets to enjoy the meal.

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Food bank giving

The True Meaning of Giving Tuesday

Food bank givingThis year Giving Tuesday is November 29th. So, soon.

Now is a good time to think about whether or not you want to jump on the bandwagon and, if so, how. There is more than one way to slice this particular piece of pie. And, really, that’s what Giving Tuesday is – just one piece of your total annual fundraising strategy.

You don’t want to blow it out of proportion. But you probably don’t want to ignore it. Rather, plan ahead to put it into a context where it will complement your other year-end communications and fundraising strategies.

Let’s take a closer look.

What is Giving Tuesday?

I confess I’ve been a bit of an apologist for the “holiday.” I like to turn the tables by actually giving to donors, rather than asking them to give yet one more time during this busiest fundraising time of the year.

Plus, I often say if you want gifts, you must give them. What better time to do so than on giving Tuesday?

Of course, asking can also be a form of giving. So, I love appeals on this date that give people the option of giving money or supporting you in other ways.

It’s all philanthropy (aka “love of humanity”).

Key: Approach GT Strategy with a Giving Spirit

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24,000 Children Die from Hunger Daily

Scope: The Key to Donor Generosity?

There’s a powerful psychological principle known as the “identifiable victim effect.”

It has to do with how you describe the scope of the problem you’re asking donors to help address. And what they will do as a result of how they perceive this scope.

  • Is it a scope they can visualize and relate to?
  • Or is the number so large it’s difficult for them to wrap their brains around it?

There’s another related psychological principle known as “scope insensitivity.”

It applies when a number is too large for people to really comprehend its meaning. If you tell me something costs $1 billion, I really have little idea how this might differ from $10 million. Both numbers are equally overwhelming.  I can’t picture how high a pile of either would be in dollar bills or even $100 bills. I have no sensitivity as to the scope because I simple can’t sense it.

Fundraisers absolutely need to know about, and apply, these principles.

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PHoto telling a story

Nonprofit Fundraising Truth: Stories are Persuasive, Data is Just Proof

PHoto telling a storyDoes proving your point persuade your nonprofit donor?

It turns out not so much.

At least, not unless your donor is already pretty much won over.

Proof, absent persuasion, won’t get you far.

In my last article, “How to Project Manage Your Nonprofit Story,” I delved into the concept of story vs. data in creating compelling nonprofit marketing and fundraising copy. Stories almost always win out, because human beings are wired for stories. To want to enter into them. To want to become a part of them. To want to see ourselves, in some way, expressively reflected in the characters, plot and struggle.

In this way we are emotionally moved. We shed a tear… get a lump in our throats… find ourselves chuckling, smiling or even beaming with a flicker, or a flame, of recognition, appreciation or gratitude. We are taken out of our everyday lives, and moved someplace else where we’re offered a new perspective. From this perspective, we can choose to act. To become part of the story, in a positive way. To make a difference. To bring joy to sadness… hope to despair… healing to hurt. To bring the happy ending we wish to see.

Today I want to delve a bit deeper into why stories beat data because, when I review nonprofit appeals, the lion’s share do a poor job of making the story the star. Sure, you may be raising money with your appeal. But I’ll bet dollars to donuts you could raise a lot more by channeling the persuasive power of a compelling narrative.

Stories are persuasive, having the power to change audience beliefs and actions.

If you’re familiar with Robert Cialdini, you’ll know about the six key principles of influence and persuasion that help people to act in the face of uncertainty. And we’re all in that state of uncertainty when we receive a fundraising appeal, right? If you look closely, you’ll see these principles are story-based:

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"Story Quilt" by Faith Ringold

How to Project Manage Your Nonprofit Story

"Story Quilt" by Faith RingoldYour nonprofit’s story is the whole ball of wax.

Without it, you’ve got nothing.

So let’s really talk about this for a minute.

A story is not “Give us money because we’re good guys and do good work.”

Nor are “Sustain humanitarian aid,” “Support the arts,” or “Save our rivers” stories.

Sure, there may be some implicit narratives hiding within these phrases, but they’re really tag lines or calls to action. Useful, sure. But not until you’ve laid the groundwork of telling a compelling story.

You never start a story with “And they lived happily ever after.”

Similarly, you should never start a fundraising appeal with “We saved the whales.” Where’s the emotion and drama here?

You know donors are moved to give through emotion, right?

The best way to get inside a donor’s head and heart is by telling a dramatic, emotional story. Something that taps into their core and arouses their curiosity, or some deeper feeling like sadness, fear or anger.

You see, human brains are wired for story.

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Master chef creation

Master Chef vs. Line Cook: How Do You Prepare Your Nonprofit Fundraising Plan?

 

I learned something many decades ago that I’ve never forgotten.

When I learned this, it made me very happy.

You see, I was transitioning from an unhappy, short-lived career in law and wasn’t really sure about my next chapter.  Nonprofit work intrigued me, but… was it really a discipline or just something folks “winged?”  How would I know I could be successful?

There weren’t a lot of role models around at the time, and I really didn’t know any other fundraisers.  And there certainly were no articles to “google” online!

So, I enrolled in a week-long course offered by The Fundraising School, then led by founder Hank Rosso (who I call the “Daddy of Fundraising”), which is now part of the Lilly Family School of Philanthropy at Indiana University.

What a revelation! My eyes were opened to the very nature of fundraising. And the essential pre-conditions for fundraising success.

Leave a commentStrategy & Management

License Plate: NOT GR8

Why are You Cutting Down Trees and Asking Me to Pay For It? 5 Cardinal Sins for Fundraising Renewal Appeals (aka, making a poor 2nd impression)

License Plate: NOT GR8I’ve taken to including a series of “DO’s” and “DON’Ts” for all sorts of fundraising and nonprofit marketing messages over the past several years.  My purpose is not to shame anyone, but simply to provide educational moments offering example-based food for thought as you craft your own appeals, thank you’s, reports and more.

Here’s an old, brief post of mine written before I started the “Do’s and Don’ts” feature. I happened upon it while searching for something else, and it gave me pause. It’s simple, to-the-point and, alas, still relevant.  Because I see these kinds of mistakes still being made. All. The. Time.

So, I thought I’d update a bit and re-share.

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 bigger than us and/or well regarded.

This ‘oldie but goodie’ I’m about to share followed on another post about the importance of making a good first impression with potential donors. With a renewal appeal, if you want to keep these folks, it’s equally important to make a good second impression.

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ducks in a row, swimming

5 More Top Strategies to Prepare for Fall Fundraising

ducks in a row, swimmingIn Part 1 of this two-part series of “Top 10 Strategies to Prepare for Fall Fundraising” we covered.

  1. Clean up Data
  2. Purge Mailing Lists
  3. Review Staff, Vendors and Freelancers
  4. Set Priority Objectives Based on Last Year’s Results
  5. Solidify a Multi-Channel Marketing Campaign

Today we’ll look at:

  1. Send Impact Reports to Set the Stage
  2. Stock Up on Compelling, Relevant Stories and Photos
  3. Connect with Major and Mid-Level Donors
  4. Prioritize Contacts with Mid-Level and Other Promising Supporters
  5. Plan Ahead to Welcome Donors to The Flock

Ready to get all your ducks in a row?

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Ducks in a row

Top 5 Strategies to Prepare for Fall Fundraising NOW

Ducks in a rowYou’ve got one month before fall fundraising season begins in earnest.

What will you do with it?

I’VE GOT 10 TOP STRATEGIES TO HELP YOU GET ALL YOUR DUCKS IN A ROW!

We’ll start with the first five today.

  1. Clean up Data
  2. Purge Mailing Lists
  3. Review Staff, Vendors and Freelancers
  4. Set Priority Objectives Based on Last Year’s Results
  5. Solidify a Multi-Channel Marketing Campaign

Next week we’ll look at:

  1. Send Impact Reports to Set the Stage
  2. Stock Up on Compelling, Relevant Stories and Photos
  3. Connect with Major and Mid-Level Donors
  4. Prioritize Contacts with Mid-Level and Other Promising Supporters
  5. Plan Ahead to Welcome Donors to The Flock

Ready?

Leave a commentAnnual Giving

What Monkeys Can Teach Your Nonprofit

Monkey looking at youBabies can teach you the same thing.

If one baby does something, the others will want to ape them.

“Monkey see, monkey do.”

This is actually a psychological principle of influence and persuasion known as “social proof.”

It’s best explored in the 1984 groundbreaking book, Influence: The Psychology of Persuasion, by Robert Cialdini. He outlines six principles of influence affecting human behaviors. They’re all well documented, and can be incredibly useful to fundraisers.

One of the most useful principles is the one we also know today as the “Yelp effect.” It’s a type of positive (or negative) word of mouth that can make or break your business. I know how often I’ve abandoned my cart after reading a negative review. You?

Word of mouth is perhaps the most powerful form of social media you can find, so it pays to leverage it to your advantage.

Even someone inclined to support your cause may not give unless you push the right buttons. Of all the ways to do that, social proof is among the easiest and most successful.

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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

Children holding hands

There’s a first time for everything, if you will it

 

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 most 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.
In fact, 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?
What if your only choice is to go after first-time donors? How do you make a ‘sale’ if people are making a decision from scratch, with no previous history with you or knowledge about your vision, mission and values?
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Are Monthly Donors Good Legacy Giving Prospects

Old photosYou bet!

Yet they’re generally undervalued in this regard.

And it’s not just monthly donors who are undervalued.

It’s legacy giving in general.

How robust is your legacy giving program?

Legacy giving is largely misunderstood in the nonprofit world.  Too many organizations think it’s not for them. Why?

Do any of these statements sound like something you’ve felt or heard from others within your organization?

  • Legacy giving is complicated and overwhelming.
  • Legacy giving requires significant legal and financial expertise.
  • Legacy giving requires offering “vehicles” we’re not equipped to offer.

These are myths.

Really, all you need is expertise about your mission and the values your organization enacts.

You are a philanthropy facilitator, not an attorney or financial advisor.

As a philanthropy facilitator, it’s part of your job to help loyal supporters make their most passionate, heartfelt gifts. This enables them to enact their values, and to achieve a bit of immortality.

Here’s What’s True

1 CommentMajor & Legacy Gifts

Hands, Heart, Silhouette, Setting Sun

How to Find Your Nonprofit’s Highest Likelihood Major Donors

Hands, Heart, Silhouette, Setting SunIn 5 Indicators for Identifying the Best Potential Donors, a guest post on the Bloomerang blog from Ryan Woroniecki of Donor Search, the key indicators someone might be inclined to support you with a major philanthropic gift are laid out.  These indicators are, in order:

  1. Previous giving to your nonprofit
  2. Giving to other nonprofits
  3. Participation as a foundation trustee
  4. Giving to federal election campaigns
  5. Real estate ownership

One thing is indubitably true: the more you know about people the better you’ll be able to assess, and work with, their likelihood to invest with you philanthropically.

Another thing is also true: not all these indicators are created equal. They’re listed in order of importance above but, for my money, numero uno is far and away the most significant.

We hold these truths to be self-evident

The people most likely to become major donors to your organization are already known to you. You don’t have to do research to find them, or find friends to introduce you or gate-keepers to let you in. You only have to do one simple thing.

1 CommentMajor & Legacy Gifts

Hand-held Crystal Ball

S’WOT’s Up? The Future, That’s What: Your Crystal Ball for Business Success

Hand-held Crystal Ball

The reasons I love SWOT analyses is they’re all about looking at the present to divine the future.  And leaders need their crystal balls to:

    • Identify trends,
    • Anticipate change,
    • Be open to possibilities, and
    • Enable more effective, impactful work.
Sounds good, yes? But, let’s face it, it often seems easier to stick with the status quo. Crystal ball gazing and divining is not so easy. That doesn’t mean it shouldn’t be done.
Taking an honest look at what’s working/what’s not working can be a very liberating thing for an organization to do. Once people agree on what’s not working, there is a freedom to abandon time-consuming processes not yielding substantial results or significant satisfaction.  This opens up whole new possibilities for allocation of resources, and can be a very exciting time within an organization.

Leadership is key!

SWOTs help leaders prepare for the future systematically and strategically. We’ve a lot invested in doing what we’ve always done. It takes courage and determination to ask the hard questions that break us out of old patterns and ruts. A structured approach can help.
A good SWOT gets all the stakeholders engaged in moving forward strategically.  A good SWOT is not static.  It’s a multi-step process.  If you’re not familiar with a SWOT (Strengths, Weaknesses, Opportunities, Threats), this is what it is in a nutshell:
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Broken Heart

Important News about Relationship Fundraising: Stop Losing Donors

Broken Heart
Do you know how you may be breaking your donor’s heart? Keep it up, and they’ll break yours.

This is important.

It’s about a report that may change how you do fundraising.

It should.

Let me explain.

Unless you’ve been asleep at the wheel, by now you should know most nonprofits have been hemorrhaging donors for over a decade.

By tending to focus more on expensive, staff-intensive acquisition strategies like direct mail and special events, charities are bringing in one-time donors who never give to them again. It’s why I focus so much on donor retention strategies and exhort you to make them your priority strategy.

Why? Because otherwise all your acquisition efforts are wasted. The latest Fundraising Effectiveness Project Report  revealed an astounding 81% of first-time donors lapse. [BTW: This isn’t the report that’s going to change your modus operandi; it’s merely the rationale for the release of the report that will. Keep reading.] Of repeat donors, 39% lapse. This means, on average, charities retain only 45% of all donors. For every 100 new donors acquired, on average nonprofits lost 96 existing donors. That means you’re engaging in a whole lot of work, for a pretty miserable return on investment.

“Over 70% of people that we recruit into organizations never come back and make another gift, so we’re caught on this treadmill where we have to spend lots of money on acquisition which most nonprofits lose money on anyway, just to stand still.”

– Professor Adrian Sargeant,
Director of the Centre for Sustainable Philanthropy at Plymouth University

This is the proverbial three steps forward, two steps back – only worse!

This burn and churn strategy is killing nonprofits — and burning out the folks who work in them.

Why is it that for profits manage to retain 94% of customers, yet there’s such a huge disparity when it comes to nonprofits?

Leave a commentDonor Retention

Love letters

What’s Going On? What Can We Do?

Love lettersI had a fundraising post all ready to launch today, but I just couldn’t do it.

The world seems wildly out of whack right now.  I can’t pretend it’s business as usual.

I try to stay away from “politics,” because I know that’s not why you read my blog. However, we live in a political world. And so do our nonprofits, our staff, our volunteers, our donors and our clients. Simply put, politics is about making agreements between people so that they can live together in groups.

Nonprofits cannot seal themselves off in little bubbles, pretending what’s happening in the rest of the world doesn’t exist.

That’s why, during the pandemic, I encouraged you to talk about how events touch those who rely on you. It’s why, all the time, I encourage you to relate your work to what’s in the news and top of mind to donors. Be it hurricanes, fires, famine, drought, social unrest, war, civil liberties, mass shootings, homophobia, racism, sexism, bigotry, or anything else horrifying to body, mind, heart and soul.

If it’s something you’re thinking about, you can bet it’s something your constituents are thinking about.

If you don’t address it, you risk coming across as unimportant, blind, shallow or out of touch. Being relevant, and meaningful, means getting inside your supporters’ heads and knowing what’s important to them. What are they thinking? How are they feeling? In what way do the emotions they’re currently experiencing interact with your mission? How can they help you, and you help them?

I don’t know how you’ve been feeling, but many folks I’ve been talking to have mentioned anger, outrage and fear. Even those who are happy about one or two things are deeply concerned about other developments. And this holds true for both sides. Listen to Fox News, then listen to MSNBC.  You’ll hear equal doses of horror. The pendulum has been swinging wildly, back and forth, and the world seems madly out of whack.

What can the social benefit sector do to bring things back into balance?

I keep coming back to the Golden Rule. What if none of us ever did anything to anyone else we didn’t want them to do unto us? What if we only treated others as we would want to be treated? It seems so simple. So logical. So in everyone’s best interest.

What is it about the human animal that leads the same people who don’t want government to impose mask or vaccine mandates on them wanting to impose no abortion mandates on others? Or, from the other perspective, those who don’t want government telling them they can’t smoke pot wanting to tell others they can’t carry guns? All of this “I can impose, but you can’t” is nonsense from the perspective of “do unto others.” Yet, we persist.

The only way to make sense of these things is through an understanding of balance. We must strive toward philanthropy (translated as “love of humanity”).

Leave a commentCulture & Values

Strength Weight Lifting

Play to Your Strengths: Where Do You Add Most Value?

Strength Weight LiftingHere’s the deal: When you match people to environments or roles congruent with their skills, knowledge and strengths, they’ll do better.

Reading this statement, it appears patently obvious. But… how many businesses operate this way. Does yours?

This post was inspired by one of Seth Godin’s thought-provoking, minimalist posts. As always, he manages to convey something important and provocative in very few words. This time, he got me considering the way nonprofits structure job descriptions and conduct performance evaluations. It’s not the first time I’ve thought about this, as in my three decades of in-the-trenches practice I wrote a lot of the former and conducted a lot of the latter.

In the early years, I made the mistake of putting people into rather rigid boxes. This was not good for the people stuck inside, nor was it good for the organization as a whole.  Later, I learned to be more flexible and play to people’s strengths.

Before I get specific, here comes the Godin post that stimulated this little rant.

Building, breaking, fixing

We spend some of our time building things, from scratch. New ideas, new projects, new connections. Things that didn’t exist before we arrived.

We spend some of our time breaking things, using them up, discovering the edges.

And we spend some of our time fixing things. Customer support, maintenance, bug fixes… And most of all, answering email and grooming social media. The world needs fixing, it always does.

You’ve already guessed the questions:

— where do you personally add the most value?

— how much of your time are you spending doing that?

What follows is a bit of thinking out loud.  I hope it will inspire you as well. If so, I’d love to hear your thoughts in the comments section below!

The “Peter Principle” Problem

If you look at a nonprofit organizational chart, too often you’ll see job titles that no longer describe what the folks in them are doing.  Sadly, the “Peter Principle” is alive and well. Folks rise to the level of their incompetence, and the function they are supposed to be performing gets shoved to the back burner.

This can lead to hidden organizational inefficiencies. For example:

Leave a commentStrategy & Management

Mirror image

Be Your Donor Week

Mirror imageWhat I have for you is something you can do this week (or you can pick another week on your calendar that isn’t already overfilled with appointments, assignments, meetings and what-not).  It’s really simple and really powerful.  There’s one catch: you have to put aside 45 minutes/day for five days.  If you’re resistant to change, read no further. This post isn’t for you.  If, however, you have a hunch you might be able to move from good to great, then… read on (oh, and there’s a little bonus ‘gift’ at the end).

I’m going to show you how to become a donor-centered fundraiser in just five days. And by “donor centered,” I don’t mean pandering to donors, letting them abuse you or succumbing to mission drift in order to please them. That’s extreme. I’m going to show you how to simply follow the “Golden Rule,” and do unto donors as you’d wish them to do unto you.

Like I said, it’s simple. But you’ve got to dedicate the time. Go ahead.  Find yourself a week where you can dedicate just 45 minutes/day to find out what ‘donor-centered’ may mean to your constituents.

This exercise is something I hope will dramatically change – and improve – how you approach your donors.  And this change can happen for you in just five days.

In a nutshell, I’m going to ask you to:

  1. Make a list.
  2. Pick five things on your list.
  3. Do the five things.
  4. Consider what five things you’ve learned.
  5. Make an action plan to change how you approach donors based on what you’ve learned.

Ready to get started?

Leave a commentStrategy & Management

Proven 1-2-3 to Nonprofit Fundraising Success

L O V E Sign behind a fenceUnderlying this 1-2-3 formula is a need for balance.

It’s obvious. I know you know it. But… do you do it?

I’m here today, just in case you need a little reminder.

  1. The first step is essential for success in anything.
  2. The second step is essential for success in any consumer-facing business.
  3. The third step is essential for success in reaching a fundraising goal.

When the world seems wildly out of balance, it is incumbent on us to begin with centering actions: for ourselves, others, and our mission.

Balancing Trick: You. Donor. Nonprofit.

I’m talking about balancing self-love with donor-love with mission-love.

You can’t help others unless you first take care of yourself.

This is a truism you should carry with you throughout your life, and not just when the oxygen masks come down on an airplane. It’s never been truer than in the times in which we’re currently living, when there are new things about which to worry seemingly daily.

How do you lead the way forward, helping yourself and others navigate through the tough times?

I’d like to suggest you heed this 3-Step Formula to nonprofit fundraising success.

Leave a commentStrategy & Management

Major donor meeting, two women

Avoid these Key Obstacles to Successful Major Gift Asks

Major donor meeting, two womenIn Part 1 of this two-part series delving into the topic of major gift fundraising asks, we looked at a number of Proven Strategies to Take Charge of Major Donor Asks. Specifically, we covered (1) four elements of a successful visit and (2) four elements of a compelling offer. Feel free to refresh yourself before we move on.

Other Things You Need to Know about Asking

Now I want you to truly think about the offer from the recipient’s perspective.

As insiders, we often don’t stop to think about the outsider perspective. It’s just human nature to become so absorbed in a topic it starts to seem obvious. To us.

When crafting your compelling fundraising offer however, it’s important to stop and consider how it may be received. As noted in Part 1:

  1. If it’s too general or vague, it’s unlikely you’ll get the donor’s most passionate gift.
  2. If you offer something of little interest or relevance to the donor, they won’t give you their full attention.
  3. If the problem you describe is broad in scope, the idea of addressing it in any meaningful way may seem too daunting.

You can’t ask the donor to address your entire mission.

  • “Ending hunger” sounds awesome to you, but impossibly unrealistic to the donor.
  • “Curing cancer” sounds splendid to you, but too huge in scope to the donor.
  • “Eradicating poverty” sounds vital to you, but absolutely overwhelming to the donor.
  • “Becoming a world class symphony” sounds grand to you, but grandiose to the donor.
  • “Saving children” may be your priority today, but you also serve seniors and that’s what the donor most cares about.

2 Vital Things to Keep in Mind Going into Asks

When crafting and making a major gift fundraising ask, make sure you incorporate the following into your planning:

Leave a commentMajor & Legacy Gifts

Sign: Good News is Coming

How to Raise Money with Nonprofit Newsletters

Sign: Good News is ComingYes, nonprofit newsletters can raise money!

And they should delight, retain and upgrade donors too.

How does this work?

It works by using your newsletter to give credit where it is due.

To your donors!

  1. Great newsletters are the opposite of all about you and your organization. “We did this.” “We’re planning to do that.”
  2. Great newsletters sustain the joy donors felt at the moment of giving by confirming for them their decision was a good one. “You made this happen.” “Your gift gave a happy ending to this story.”

You see, a charitable gift is not the same as a purchase of a product or service. With the latter, you have something tangible to continue to appreciate (e.g., you use your laptop daily; you continually admire the new paint job on your house). With the former, you’ve got nothing but an initial shot of dopamine … and then a memory. For most donors, this becomes a distant memory.  Because most nonprofits don’t consistently and repeatedly report back. With donors, out of sight truly does mean out of mind.

Use newsletters to show authentic gratitude and demonstrate how the donor’s gift made a difference.

You see, once is not enough.  Research shows for gratitude to be deeply felt it must be repeated. Repeat gratitude and reporting back accomplishes the following:

  • Donor feels good

  • Donor trusts you’re good to your word.

  • Donor feels inclined to give again.

  • Donor retention increases

  • Average gift size increases

  • Your raise a lot more money over time

Be guided by the “virtuous circle.”

4 CommentsContent Marketing

Colored pencils

What to Say When Your Donor Asks: How Much do you Spend on Overhead?

Colored pencils

I’ve been asked this question many times.

One of the ways I’ve answered is with my own questions:

  • If you could invest 20 cents to get a dollar, would you?
  • If you could invest 50 cents to get a dollar, would you?
  • If the dollar you got was old, wrinkly and ripped, would that matter to you?
  • If the dollar you got was mint, would it be worth it to you to pay a bit more?

Maybe the return on your invesment doesn’t matter to you. But maybe it does.  In the case of the wrinkly vs. mint dollar bill, it would matter a lot if you’re a collector.  Change that to 50 cents to buy a bag of fresh, nutritious produce that will last a full week vs. 20 cents to buy a bag of old, rotten vegetables, and you begin to understand.

All things are not created equal.

That’s true, in spades, for what folks consider ‘appropriate’ overhead.

2 CommentsStrategy & Management

So, Your Nonprofit Donor Wants to Give Cryptocurrency?

Donor with cell phone, crypto

In Part 1 of this two-part series, I discussed cryptocurrency philanthropy basics.

Let’s say you’re intrigued, and want to dip your toes in the water?

How to Accept Crypto?

There is more than one way. These are listed in order of easiest to greatest need for tech and finance savvy.

  1. Donor advised funds and giving wallets. These are now being set up to accept cryptocurrency. If nothing else, you can alert supporters that if they have a DAF they can funnel crypto to you that way. Also, every.org and givewell are crypto wallets that act similarly to a DAF by accepting gifts from donors, then granting your nonprofit cash without you ever having to take custody of the asset. You never have to worry about accounting and legal concerns of accepting crypto.

 

  1. Software as a Service (SaaS solution) donor management platform. Organizations such as The Giving Block, engiven, Crypto for Charity by Freewill and Charitable Solutions, LLC are already set up to accept cryptocurrency on behalf of your organization (the list keeps growing). These dedicate crypto NGOs will sell the asset and transfer the proceeds to you. You can put a widget/button on your website to facilitate this. Crypto goes directly into exchange and is immediately traded for dollars (there is a small fee; around 1%). This is safe, secure and simple as generally the asset will be immediately liquidated (within milliseconds), which is super important with highly volatile assets like crypto. This protects you from a donor asking what you did with their $100,000, and you having to tell them you only realized $50,000 because you delayed a day to sell it.

 

  1. External custody. Behind the scenes, all platforms use a cryptocurrency brokerage or exchange. Three reputable ones are Coinbase Commerce, Kraken and Gemini. They typically charge 35 – 50 basis points per transaction. No donation processing or receipting is available. Nonprofits with expertise in asset management, trading and technology may consider building their own donation widget using these services. Be aware it can take many months to establish an account. Plus, you also need an “Alternative Asset Management Policy” [fold in crypto to your Gift Acceptance Policy; run this by your professional advisors and finance committee] to shield leadership.

 

  1. Self-custody. This is not for everyone and requires a hardware USB device that can be plugged into the computer when someone wants to make a transaction. They’re cold storage, kept off the internet, and highly secure. The downside is it requires a very savvy staff person and high security around custody. Plus it’s tricky to liquidate when you hold it in your hardware wallet. Some donors giving these digital assets like to see nonprofits holding those gifts as crypto, as part of an effort to see crypto go mainstream. If you have the ability to be strategic with investments, for example by building a reserve, you might consider holding onto crypto in its native form. UNICEF, for example, can receive, hold, and disburse cryptocurrency with its UNICEF CryptoFund. Again, you’ll want an “Alternative Asset Management Policy” to guide when you’ll sell.

How to Promote?

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Gala event reception

Common Sense Nonprofit Event Planning Advice

Gala event reception

Let’s begin with the Big Kahuna piece of advice: Ask yourself WHY you want to do this event.

Were you to bring your event proposal to a wise shaman or mentor, this is the question they would ask you first – well before asking what theme or format you have in mind or what color scheme you want to use!

And yet this is the one question I find nonprofits failing to ask.  Somehow staff and boards alike think events are simply an inevitable part of the diversified fundraising mix.  Or maybe even the primary way to generate awareness and funds.

Events are neither inevitable nor primary. They are merely a means to an end.

And since they are extremely resource-intensive, it’s critical to think long and hard before embarking on a strategy that could potentially derail other more lucrative and cost-effective approaches.

Events have their place, to be sure; it’s up to you to put them in their place. You must take charge, lest they take charge of you!

What is Your End Goal?

You don’t buy a drill because you need a drill. More likely, you need to create a hole. Maybe the drill will do that best or, perhaps, there’s another more effective tool. It depends on the size and purpose of your desired hole. The same is true with nonprofit special events.

You don’t create an event for the sake of having one (no matter what one or more board members think would be swell.).

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3 people with marching orders

3 Ridiculously Easy Strategies to Boost Fundraising by 27%

3 people with marching orders I’m excited to share three easy tips with you, and the results are measurable.  Do these things and you’ll be able to tell if they impact your bottom line!

I was inspired to share these ideas with you based on a 2019 study by NextAfter and Kindful looking at how organizations are cultivating donors via email. They found plenty of data-driven ideas that can improve donor retention and boost online fundraising revenue — by as much as 27%!

Think about how much an increase like that could mean for your organization!

That’s right!

“Make way…” for these ridiculously easy, revenue-boosting strategies!

If you raised $100,000 last year, you could raise $127,000 – or more – this year.

And that’s without having to apply for a new grant, hold a new fundraising event or even ask for a new major gift or two to reap these rewards.

All you must do is simply pay a little more attention to your follow-through communication with donors.

Did you know most of the top reasons donors give for not renewing their giving have to do with how you do/don’t communicate with them after they make a donation?– or fail to personally, meaningfully and promptly communicate.

Meaningful, regular donor communication can hugely impact your bottom line.

To make a demonstrable difference in donor behavior, however, your communication strategy must tick more than one box. It must be prompt, personal and relevant to what your donor cares about and how they want to hear from you. Don’t just guess what your donors might like from you. Ask them!  In fact, surveys, social media queries, online quizzes, solicitations for comments and feedback are all wonderful ways to communicate digitally in a manner that personally engages your supporters.

Never forget: The best fundraising is personal.

So… what are you waiting for?

Here are three strategies revealed by the research: 

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Ukraine in the palm of a hand

Don’t Be Out of Tune on Ukraine

Ukraine in the palm of a hand

The fate of the world is in all of our hands

 

It’s out of tune when you fail to even acknowledge that which is top of mind for you constituents.

At any point in time.

For the last couple of years it was Covid. All the time.

At various points it was also a range of issues related to diversity, equity and inclusion, justice, law and order, or the lack thereof, individual rights and freedoms and, of course climate, including hurricanes, tornadoes, fires and droughts.

Right now it’s helping Ukraine and its people.

Whenever people are suffering, for whatever reason, it has a huge impact on the human psyche.

And when it’s in the news, that suffering and impact is hugely amplified.

People want to stop the pain.

If you can help people do that, they will be grateful to you.

How Can You Help People Now?

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Money on Table

How to Stop Leaving Money on the Table

Money on TableMoney left on the table is one of my pet peeves. It’s really beyond a peeve.

I can’t stand it when organizations could be serving more people, or doing so more effectively, but they don’t because they’re too smug (“what we’re doing now works just fine, and don’t try to tell me otherwise”) … self-reportedly “too stressed” … or simply not open to the idea of trying out some new strategies.

This “resting on one’s laurels” modus operandi leads to status quo organizations that fail to evolve to meet the moment. They get stuck in the past and, too often, begin to wither and die. Or they become what I call a “boutique charity” appealing to a niche group of insiders, content with the status quo.

That’s “nice,” but if you’re dedicated to solving pressing societal problems, meeting insistent human needs, and creating transformational personal and societal change, you’ll need to connect with donors on a more direct, visceral level.

How to Stop Leaving Money on Your Table

Your best donors have linkage, interest and ability (LIA). Begin with those already linked to you by virtue of having made a previous donation, been a loyal volunteer, served on your staff or board, or been a repeat purchase of services or products. In other words, they’re hiding in plain sight in your database.

Consider how you might learn more about these folks to better connect with them and make the best use of limited resources. You can do this in one of two ways:

  1. Donor Analytics: Find out how wealthy they are (ability)
  2. Supporter Connection Survey: Find out what they care about most (interest)

It’s funny, but too many nonprofits start with the former and often completely ignore the latter. It’s a way to go (and I confess I’ve been there), but is it the best way? I no longer think so – which is why I’m writing this article.

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Laptop, notebook, coffee

How to Write a Foolproof Nonprofit Grant Proposal

Too often grant proposals begin with some variation of “we want money because we’re a good cause and, since you’re good guys too, naturally this will be a match made in heaven.”

There’s nothing natural about this request.

In fact, it’s a version of “Alice in Wonderland Through the Looking Glass” thinking.

To paraphrase the Cheshire Cat speaking to Alice: If you don’t know where you’re going, any road will get you there.

Or not.

In fact, Alice tells the Cat she just wants to get “somewhere.” Could this, perhaps, be like you just wanting to bring in ‘some’ money to balance your budget? Hmnn… The Cat tells Alice “Oh, you’re sure to do that. If you only walk long enough.”

Guess what?

Most funders reading your proposal will not want to read long enough. In fact, if you’re not clear on your destination from the get-go, they’re likely to abandon you before you get there. If you get there. In other words, wherever you end up, you won’t arrive there together.

And that’s the point of a grant proposal, right?

You seek a partnership… a travelling companion… an investor who cares about the outcome.

Where you’re Going… How you’re Going There… and How Much it Will Cost

Right from the get-go, this is what funders need to hear from you.

No beating around the bush.

Get right to the point with the specifics.

If the funder must read through several paragraphs – or pages – before it’s clear how much money you’re requesting and what, specifically, you intend to use it for, they’ll be in a ticked-off frame of mind as they read your proposal.

Not good.

Get organized!

The 6-step formula I’m about to share is one I learned when I first entered this business decades ago.

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Interview exchange

How to Apply Job Interview Skills to Fundraising

When my daughter-in-law was interviewing for a job, she asked me for some advice. Here is what I found myself telling her:

Don’t focus on your needs. Focus on the employer’s needs.

Why are they hiring?

What problems do they need you to solve?

Which of your skills are they particularly looking for?

Can you describe to them how you might use these skills to help them?

Can you give a specific example, perhaps by telling a story, showing exactly how you’ll help them?

Are you clear what their values are?

CAN YOU DESCRIBE HOW YOU AND YOUR WOULD-BE EMPLOYER (DONOR) SHARE THESE VALUES?

I realized this is the exact same advice I give to fundraisers!

“Ask not what your donor can do for you, but what you can do for your donor.”

Meet your donors’ needs.

This is the heart of all effective fundraising, and the following should be your daily mantra.

“Today I will meet my donor’s need by…”

In fact, if you really want to become effective at your job, you will adopt this mantra for your interactions with co-workers as well.

“Today I will meet my colleague’s need by…”

This shift in your stance and approach may not seem like a lot, but it’s actually a game changer. By beginning with putting yourself in the shoes of another, you automatically open yourself to giving and receiving gifts.  And I often say if you want gifts you must give them.

Before you engage in any fundraising strategy, ask yourself:

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Photo of Claire

Top 10 Countdown: Most Popular Clairification Articles of 2021

This was another year of adaptation. Settling into some things, while feeling decidedly unsettled in others. Opening our eyes, minds and hearts to see, and be, things clearly.

This year continued to mark a shift in the direction of my content, as “business as usual” seemed out of sync with the times we found ourselves in. Much of the heart of fundraising remains constant, while much of the practice and culture is evolving. It is a time in which feeling our humanity, and coming from a place of love, seems more important than ever.

Today I summarize my writing of the year by sharing the articles that most resonated with readers out of the 70+ I created for 2021, including some popular oldies.

In case you missed them, here are last year’s blog posts with the most views, according to Google Analytics.

Plus, at the end, I’m sharing some photos I hope you’ll enjoy!

Counting Down…

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Complaints-button-300x249.jpg

How to Deal with Disgruntled Donors: Don’t Waste Valuable Complaints

Don’t ignore a single disgruntled supporter.

If someone takes the time to tell you they’re unhappy, that means they care. They’re connected to you. They want something from you, and you’re disappointing them.

Express compassion and contrition.

Seth Godin says “customers who feel listened to help you improve (and come back to give you another chance.”

Begin with learning where the donor thinks you went astray. Maybe you really did. If so, embrace your errors.

This is your golden opportunity to get inside your donor’s head and find out what your supporter really cares about!

Don’t blow this person off. Instead,

Leave a commentCulture & Values

How to Use Psychology to Pre-Suade Donors to Give

This time of year is what I call “presuasion time.”

Because if you’re thoughtful about it, you can presuade donors to give up to the moment you ask!

That’s what we reviewed in Part 1 of this two-part series, where I described research from Robert Cialdini, author of the seminal Influence: The Psychology of Persuasion, and the newer 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 will incline your donor favorably in your direction. Even the smallest of favors can create significant goodwill, and there are simple ways to boost the likelihood your favor will be returned.

  1. Today we’re first going to look at a way to tweak your language to make a difference.
  2. Then we’ll explore some types of favors donors are likely to value enough to want to reciprocate.

First, a reminder: Every time of year is presuasion time. Everthing you do with supporters should be designed to prime the pump so people are pre-disposed to give to you the next time you ask. Whether that’s next week, the week thereafter, or any week of the year! Whenever you’re not asking, you should be in presuasion mode.

So, let’s get a little psychologically-minded, keeping in mind one of the six core Cialdini principles of Influence and Perusasion: Reciprocity. In brief, human beings often feel obligated to return favors, even if they are unasked for.

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Two paths converge

Ask Not What Your Donor Can Do For You…

I’ve recently been enrolled in some coaching courses, and it got me thinking…

What if you were to think of yourself as the coach and the donor as your client?

As a coach (aka “philanthropy facilitator”), your goal would be to help that client.

This is a very different stance than approaching them as someone who will help you. It completely shifts the equation of your interactions.

I’ve been working with donors, and organizations working with donors, for forty years now. Along the way, one of the things I’ve learned is your approach to your work matters. It’s why I talk a lot about reframing.

Today I’d like to discuss another type of reframing. It has to do with using your ears and mouth in the proportion in which they were given to you.

How to reframe the borders of donor meetings.

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Mail-email-300x250.jpg

How Often Should You Mail to Your Nonprofit Donors?

I decided to write this post due to the number of times nonprofits ask me “How often should we mail to our donors?” The corollary question is “How often can we ask people to give?”

The answer?

Well… if there was one quick answer I wouldn’t have needed to write a whole article. I’d just have given you a headline with a definitive response!

I know you want a definite answer.

And I could give you one. But it wouldn’t be the truth. Because the truth is different for every nonprofit. And the truth will even be different for your nonprofit at different points in your life cycle.

There are two definitive things I can tell you:

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Happy donors

5 Strategies to Get and Keep More Donors for Your Nonprofit

Happy donorsPeople are unpredictable sometimes. They’re also predictable.

If you see someone yawn, you’re likely to yawn too.

If I tell you seats are limited, you’re likely to purchase a ticket now rather than later.

What if you knew donating to your nonprofit could be a predictable consequence of something you did?

It turns out you can encourage people to act in desirable ways simply by applying a few lessons learned from neuroscience, psychology and behavioral economics.

Scientists have learned a lot over the past few decades. It’s up to us to put that learning to good use.

As Daniel Pink, author of To Sell Is Human, has noted: “There’s a gap between what science knows and what business does.”

  • The most successful for-profit businesses use what science knows to “convert leads to customers.”  The secret to more sales is knowing what the customer wants.
  • Your non-profit might convert prospects into donors, and donors into repeat donors, using these very same principles. The secret to closing more gifts is knowing what the donor wants.

Today I’d like to consider five specific strategies that will help you ethically take advantage of some of the psychology underlying human behavior. Once you understand these principles, you can begin to strategically apply them to your integrated development (marketing and fundraising) strategy. If you’re nervous about this, you can test what you did before against a new strategy informed by science. Break your mailing list randomly in half, send an “A” and a “B” version of your appeal, and see which performs best.

Ready for the science-informed strategies?

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7 Magic Words that Increase Charitable Donations

You’ve still got time to sprinkle a little magic into your year-end fundraising!

Consider each of these seven words a magic potion unto themselves.

  1. You
  2. Because
  3. Thanks
  4. Small
  5. Immediate
  6. Expert
  7. Support

The more of these words you use, the more powerful a spell your appeal will cast.

Each of these packs a bigger persuasive punch than you might imagine.

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

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chocolate-love-you-melting-300x225.jpg

Securing Matching Gifts: What Your Nonprofit Needs to Know

You drop your quarters into the slot, tap a couple of buttons, and the machine gives you two candy bars for the price of one. Hallelujah! You’re rich!

The concept of matching gifts works just like that vending machine.

You get twice the money at no additional cost to your donors.

Think of it this way: If someone offered to give your organization free contributions each time someone donated, would you say yes? Of course!

But where is all the free extra money coming from?

The extra “free” money comes from corporations!

Over the past several years, social responsibility has become a phenomenon that’s taken over the for-profit and nonprofit sectors alike. Corporations have quickly become aware of their responsibility to do good in their communities. Each day, more companies are building their initiatives to include new programs to support their employees’ philanthropic efforts. Among these programs are matching gifts that empower donors to double, triple, or sometimes quadruple their gifts to eligible nonprofits.

Here’s what’s new: the digital revolution has made it incredibly easy to determine eligibility and submit match requests.

Here’s what’s sad: a mere 7% of donors at companies with matching gift programs actually submit a request. That equates to more than $4-7 billion in unclaimed revenue every single year, according to recent matching gift studies.

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Aware man

Do you wish you had a dime for…

… every time a nonprofit board or staff member told you “We’re the best kept secret in town; if people knew what we do, they’d give to support us.”

Nonprofits tell me this all the time! If I had all those dimes, I could make a nice contribution to your cause.  And I would, if…

  • You endeavored to learn a little bit about me,
  • You engaged me personally,
  • You discovered my values match yours,
  • You offered me opportunities to connect with your mission and supporters that involved something other than money,
  • You showed me you knew what most engaged my passions, and
  • Then you asked me for a gift!

You see, merely “building awareness” will not ipso facto raise more money for your cause.

Just because I care about something, and somehow learn you are involved in doing something about that thing, doesn’t mean I’m going to support you financially.

Why should I?  There are a lot of good causes out there, and making a decision to invest in you is something I need to act on.

I’m busy.  I’m overloaded with information. And inertia is just too powerful a force.

You’ve got to do better than just hope I’ll stumble upon your website, see your social media post, hear about you on the news, or even open your direct email if you want me to really sit up, pay attention, and actively engage.

Especially if you want me to engage as a philanthropist.

Leave a commentAnnual Giving

Heart with stick figure

Fundraising Appeal & Thank You Strategies Your Nonprofit Needs NOW

Heart with stick figureI know you’re working on calendar year-end fundraising right now.

And if you’re not, start immediately!

Per Mobile Cause:

  • 30% of annual donations occur in December
  • 12% of annual giving happens on the last three days of the calendar year
  • 53% of nonprofits start planning their year-end appeal in October

Before it’s too late, I want to share with you four almost magic strategies that have worked well for me for decades!

Yes, there are ways to tweak these strategies to conform to the current zeitgeist and recognize we live in a digitally revolutionized world. This can be super helpful, and I highly recommend you pay attention to the ways fundraising and nonprofit marketing are evolving. It means new skills are needed, more money must be invested to yield your most positive returns, and you’re no longer going to be able to rest on your laurels.

That being said, I don’t want you to get so caught up in bells and whistles you neglect the fundamentals. Nor do I want you to throw up your hands in despair, culminating in a decision that you just can’t compete or do a better job because… (fill in the blank).

No excuses!

The magic strategies below have worked for me, and countless nonprofits, over generations. They’ll work for you too.

Truly, I promise if you do these things you’ll raise more money this year.

Ready to get started?

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Finger pointing

Is Your Finger on the Nonprofit Appeal Trigger?

Finger pointingWhatever side of the political spectrum you’re on, the photo below is triggering.

https://www.bbc.com/news/world-us-canada-58654351

Note: I can’t show you the photo because it’s copyrighted, but if you click on the link you’ll recognize it immediately (unless you’ve been living underground over the past week).

Why am I sharing this photo I can’t even show you?

I want to make an important point.

One I feel too few nonprofits give much thought to.

Could you be among them?

If so, I don’t fault you. No one teaches us these things.

Most of us didn’t go to journalism school.

But, let’s face it, journalists really do know how to grab attention!

You want to grab attention with this year’s fundraising appeal, right?

Okay then.

I’m going to share a simple tip that will boost your fundraising returns this year by leaps and bounds.

Again, it’s super simple.

But you’ve got to start now. Or maybe even yesterday.

Are you ready?

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Building - motto about knowledge and stability

Top Planned Giving Myths and Truths Revealed

Building - motto about knowledge and stabilityWhat the heck are “planned gifts?”

For some reason, this term remains largely mysterious for many nonprofits. There’s a feeling planned giving is complicated. Not for the faint of heart or the small of budget.

This couldn’t be more wrong.

People wonder:

  • Are they deferred (i.e., you won’t receive them until after the donor dies)?
  • Are they outright (i.e., you’ll receive money now)?
  • Are they only for building an organizational endowment?
  • Are they just another term for major gifts?
  • Are they gifts where donors receive benefits like life income and tax avoidance?
  • Are they legacy gifts?

The Truth about “Planned Gifts”

They’re all of the above!

If there’s any overarching guideline, the truth is that planned gifts generally represent the largest gift a donor will make to you.

Leave a commentMajor & Legacy Gifts

passion-300x300.jpg

What “Chopped” can Teach Fundraisers about Productivity and Passion

passionOne of my secret pleasures is watching the show “Chopped” on the Food Network. Today I watched an episode that just had me bawling at the end. It was the most heartwarming show I’ve ever seen. And it reminded me of why all of you do the work you do in the social benefit sector.

So please allow me to share.

I don’t know if I can adequately convey the pathos I felt, but if you haven’t had a chance to see this episode I would strongly recommend it. It will make you feel very good. At the same time, it will make you understand — even more than ever — how much work there is to be done.

And why YOU, toiling in the vineyards of the social benefit sector, are just the person to do it!

Leave a commentAnnual Giving

How to Rock Donor Thank You Calls

7 Keys to Rock Thank You Calls and Retain More Donors

You’ve got to make donor retention more of a priority to survive and thrive in today’s competitive nonprofit marketplace.

Research shows the average nonprofit in the U.S. loses 81% of donors after the first gift!!!!!

In and out a revolving door is too expensive to be sustainable.

To make matters worse, the probability a donor will make five consecutive gifts is only 10-15%. These numbers are just not sustainable for most organizations. By the time you’ve added a new donor most of your previous new donors are out the door.

And, by the way, did you know donor acquisition costs you money?  Yup. On average, it will cost you $1.00 – $1.25 to bring in a new donor dollar. So… the value of a new donor to your organization is wrapped up in the concept of donor lifetime value. Once you have a new donor, the cost to renew them is much less expensive than the cost to acquire them. Just like in for profit marketing, keeping a current customer is easier than finding a new one.  But… you have to actively engage in customer cultivation and renewal strategies.

If you don’t energetically renew and upgrade donors over time, you may as well never have recruited them.

Allow that to sink in a moment.

Might you effectively be wasting a lot of time, energy and money on acquisition? Could some of your resources be more effectively deployed to donor retention?

I’m going to go out on a limb and wager the answer is a resounding YES.

Do you know what your donor retention rate is? If you do, there’s hope for you to improve it. Read on.

If you don’t, you don’t even know there’s something that needs fixing! Read on.

Leave a commentDonor Retention

R.I.P. Donor Pyramid?

Swirling fractalThe modern model is more like a vortex — an energized circle where everyone is equal. People move in and out as needed, and your job is to keep the energy flowing.

NOTE: My article on the topic of moving away from the donor pyramid model for donor acquisition, cultivation and major gift solicitation recently resurfaced on social media dialogue, so I thought it was time for a reprint.

Why do we always think of donors with pyramids? The pyramids were built in Egypt. On the backs of slaves. It took a very, very long time. The cost, in human terms, was untenable and unsustainable.

That’s why you don’t see many pyramids being built these days.

Except in nonprofits, where building the donor pyramid is still the holy grail. Get ’em in. Move ’em up. Acquire through direct mail. Convert to monthly donor or sustainer. Acquire through events. Convert to mail. Up, up, up … to the pinnacle of major and planned gifts!

Except for one tiny thing.

It doesn’t work.

Pyramid building is so 2630 BCE. Nobody’s got 100,000 workers (aka direct-mail donors) building a solid pyramid anymore. Many so-called pyramids really look like hourglasses. Or upside-down pyramids. Or plateaus. Even the pyramid-shaped ones are resting on shaky foundations of donors who move in and out, in and out — eight out of 10 newly acquired bottom-of-the-pyramid donors leave — making the “foundation” more like a river than a solid, secure slab of mortar. The days of the donor pyramid model are gone!

Digital toppled the donor pyramid. Actually, it crumbled it … slowly, surely … until there was nothing left but an empty frame. A triangle on paper. The donors no longer fit inside of it.

R.I.P. donor pyramid. You had a good run.

The donor pyramid (sometimes call the donor ladder) was a great model for linear thinkers like me. It was neat and orderly. Engage folks from the bottom up, level by level, one step at a time. It was stable.

Or so we thought,

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Frame in front of ocean view

Reframe Fundraising: Responsibility, Privilege and Opportunity

Frame in front of ocean view Fundraising is too often seen, at best, as a ‘necessary evil.’

When viewed this way, folks – staff and volunteers alike – understandably prefer not to touch it with a 10-foot pole. Who wants to place themselves on the side of ‘evil?’

Yipes stripes!

But that’s not what fundraising is at all.

The tagline for my business, Clairification, is “philanthropy, not fundraising.” I often talk to folks about how the word philanthropy comes from the Greek and translates into “love of humankind.”  Nothing evil about that!

In fact, if you ask folks to throw out the first word that comes to mind when you say ‘fundraising,’ and then ask them to do the same when you say ‘philanthropy,’ you’ll see it breaks down pretty neatly between good and evil.

Why it’s Important to Reframe Fundraising

If you’re coming at fundraising from the perspective of ‘necessary evil’ or ‘no pain, no gain,’ you’re never going to be effective. Especially when it comes to asking individuals, one-to-one, for passionate gifts.

As long as you hate it, donors will be able to tell you hate it. I call this wallowing in the pain. Never a good approach. Distaste for asking begets distaste for giving.  It’s done grudgingly, not passionately.

When donors can sense you’d rather be doing anything else than asking them for a gift, guess what happens?  They follow your lead!  In other words, they feel they’d rather be doing anything else than making a gift.

But there’s more to reframing fundraising so it’s seen as a really, truly good thing.

I like to reframe it thusly:

  • It’s a responsibility.
  • It’s a privilege.
  • It’s an opportunity.

Fundraising is a Responsibility

If you’re fortunate enough to be a successful nonprofit, this means you’re helping solve some of the world’s most pressing problems.

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Top 10 Questions to Answer before Asking for a Nonprofit Major Gift

You can’t just call someone up out of the blue and ask them for a major gift to your campaign. Period. Full stop.

This won’t work any better than building a house before you’ve found the right location, created a blueprint, laid a foundation and brought in just the right crew to build according to your specifications.

In both cases, first you must lay the groundwork. I like to think of this as making sure all the pre-conditions to a successful ask are in place before I make someone an offer I know they won’t be able to refuse.  And I’ll know I’m ready to pop the question because first I’ll have answered “Yes!” to all of the ten questions that follow.

10 Critical, Powerful Questions to Lay the Groundwork for Successful Asks

1.  Is this the right prospect? 

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