Year-End Fundraising Anxiety Got You Down?
Do you have that year-end feeling?
You know, the one that many fundraisers get around this time of year?
Kind of frenetic? Kind of anxious?
You’re not alone.
Do you have that year-end feeling?
You know, the one that many fundraisers get around this time of year?
Kind of frenetic? Kind of anxious?
You’re not alone.
Thanking donors is the one thing most nonprofits do not spend enough time thinking about. Too often I find that staff spend 95% of their time crafting their fundraising appeal and getting embroiled in project management — design, layout, printing, postage, etc. Finally, the letter (or e-appeal) is ready to launch. The mailing is dropped. The button is punched. And… voila! Gifts start to arrive! But then what?!
After you’ve sent out your appeal is too late to start thinking about what your thank you letter or email will say. Or who will sign it. Or whether someone who donates online will also receive an actual letter. Or thank you call. Or who will make the call. Everything must be well thought-out in advance. You must be ready to go, with different templates and strategies for different target audiences, well before you’ve asked for your first donation.
What would Miss Manners have to say about the way you too often focus more on the gift than on the giver? She would not be happy. Not happy at all. So, make a vow to remedy this situation before we kick into prime giving season.
The end of the year will be here before you know it!
Working on your year-end appeal?
Wish you had a way to prioritize the stuff that really matters?
Around this time of year, it’s common for me to hear one or more of the following — not just from newbies to the profession, but also from seasoned pros:
What can you do now to prime the pump so your donors are pre-disposed to give to you when they receive your next appeal?
In Part 1 of this two-part series I described research from Robert Cialdini, author of the seminal Influence: The Psychology of Persuasion, and his 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 would incline your donor favorably in your direction.
Today we’ll 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.
Annual giving is the cornerstone to any nonprofit fundraising effort.
And while some organizations think of annual giving as a way to raise money for their operational expenses and other projects and causes, I’m about to let you in on a secret:
It’s not.
We’re in the midst of a generational shift: Millennials have recently surpassed Boomers as the largest generation in America, and have surpassed Generation X as the largest part of the American workforce.
As these changes happen, nonprofits should take a look at their marketing channels and make sure they are using the right methods to reach each generation.
What 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?
This is important.
It’s about a new report that may change how you do fundraising.
It should.
Let me explain.
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.
Please enjoy these links, free resources and training opportunities. I hope you’ll find plenty of food for thought, plus some useful practical tools to help you along your journey towards making the world a kinder, gentler and more caring place.
To survive and thrive in the current zeitgeist, all nonprofits must master at least five skills, of which one is online social fundraising. There are numerous reasons why this is so; today I want to focus on using social media strategies to build dynamic donor relationships.
The chief reason this is so critical is that nonprofits are hemorrhaging –losing, on average, over half of their donors every year.
Whatever nonprofits are doing currently, it’s not working especially well. So adding an additional relatively inexpensive donor retention strategy into your existing donor development plan makes sense. I encourage you to read my complete in-depth article on the subject on the Maximize Social Business blog. But if you’re pressed for time, here are some quick highlights.
Thinking about doing a “non-event” event where no one has to attend? It sounds great on the face of it. After all, Penelope Burk’s research revealed that many donors reported they like to receive invitations to events; they just prefer not to attend them. Win/win?
Not so much. It depends why you’re hosting the event in the first place. If it’s your only method of fundraising for the entire year, then fine. Go right ahead. Whether folks attend or not doesn’t much matter. You’ve made your single annual ask, received your gift and you’re done. All you wanted was money. Once. Right? Hold on!
Hope you enjoy these links, free resources and training opportunities. Again, I’ve organized according to two of the top 5 areas I’m hoping you’re working on improving this year. This week it’s:
I’ve also got some “food for thought” articles on special events, plus links to free resources and upcoming training opportunities. I hope you find at least one useful nugget!
Ever hear of “A.Word.A.Day” with Anu Garg? I hadn’t. Until a friend recently shared with me that day’s word. She said, “this one’s all about you!” The word?
Clairaudience.
It’s a perfect word for fundraisers, because it’s precisely what you must do – a skill you absolutely must have – if you’re to succeed with sustainable fundraising.
It means the ability to hear what is in people’s hearts and minds.
It’s a lot like clairvoyance, but it brings in the audience perception. It’s the ability to “hear” what is inaudible — by getting a read on what folks are thinking and feeling on the inside. Despite what they may reveal on the outside.
Guess who is good at this?
You’ve got to make donor retention more of a priority. It’s one of the top five things your nonprofit must do to survive and thrive in today’s competitive nonprofit marketplace.
Research shows the average nonprofit in the U.S. loses 77% of donors after the first gift!!!!!
To make matters worse, the probability that 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.
Allow that to sink in a moment.
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!
In Part 1 I laid out why philanthropy inspires, and fundraising tires.
Fundraising must be done, of course, but there’s something about how it’s been practiced in the past that turns too many people off. It’s been connoted as being all about money, when really it’s all about valued outcomes.
These valued outcomes are shared by many who support the cause – donors and non-donors. Employees and volunteers. Development departments and program departments. Major gifts staff and annual giving staff. All these folks have a collective stake in the nonprofit’s survival.
Hope you enjoy these links, free resources and training opportunities. Again, I’ve organized according to three of the top 5 areas I’m hoping you’re working on improving this year. This week it’s
There are also “food for thought” articles in other areas, plus links to free resources and awesome upcoming training opportunities. Use ’em or lose ’em!
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!”
The people have spoken! You’d like more original articles from me, and you still want curated resources and links to free stuff and great training opportunities, and you’d like about the same number of emails.
So… I’m moving the “Click-it” to twice/month to make space for more original articles. And, as promised, this year I’ll be organizing the curated resources according to the “Dive the Five” fundamental principles we’ll be discussing in our ongoing virtual fundraising curriculum. Nail these, and you’ll succeed in 2016. As a reminder, they’re:
This year I’ll be sharing a lot of resources related to the “Dive the Five” fundamental principles we’ll be discussing in our ongoing virtual fundraising curriculum. You remember them, don’t you?
I want you to use these “buckets” as an organizing framework for your development efforts this year, so I’m organizing my “Click-its” this way as well.
From time to time I’ll add in other subjects and offer you some food for thought that I just can’t help but share with you. And, as always, if you scroll to the bottom you’ll find some free resources and upcoming learning opportunities.
Your year-long “Dive the Five” virtual course continues!
I’ve selected five major themes – fundamental nonprofit fundraising strategies — to discuss with you this year in depth. Strategies that are so important to your success in 2016 – and beyond – that I want to be certain (1) you’ve got them on your priority list, (2) will begin to dedicate some serious resources towards them, and (3) will commit to practice them regularly, until they become almost second nature.
If you learn to “Dive the Five” you’ll be able to raise money for anyone, any place, any time. And I’ll be your Guide.
Some of these skills will seem familiar, but the way you employ them may need to be tweaked in order for you to survive and thrive in our digitally-revolutionized society. Other skills may be things you’ve thought about, or dabbled in, but haven’t really committed to with serious intent and dedicated resources.
There are two reasons you should do a donor survey.
Donor surveys offer you a “twofer.” One is for you (useful information); the other is for your donor (a way to usefully participate other than giving money).
Let’s begin with the latter reason.
I have a dream for 2016– and beyond. I have a dream this is the year your organization will move beyond defining yourself by what you’re not (nonprofit) and will begin to define yourself by what you are (social benefit). I have a dream this is the year your people will move from an attitude of taking and hitting people up (aka “fundraising”) to a mindset of giving and lifting people up (aka “philanthropy”). I have a dream this is the year your staff and volunteers will move from enacting transactions to enabling transformation.
I have a dream you will think big, because thinking small will not get you where you need to go. You will understand there is great power in a big, wildly exciting vision. You will share this vision broadly to attract people — and financial resources — to your cause. You will no longer be content to remain a “well-kept secret.”
I have a dream you will learn who your best influencers and advocates are and you will embrace them. You will recognize you are no longer your best messenger. You will understand that many forces beyond you influence your donor’s decision to invest with you, and you will expand your thinking and operations from a one-dimensional to a multi-dimensional model. You will allow your constituents to engage with you at multiple points of entry, and to move freely between these points during the life cycle of their engagement.
I have a dream you will push yourself and your organization towards transformative change.
Happy New Year!
Here comes the first 2016 “Clairity Click-it” — an eclectic kick-off to the year.
I find so many great resources across the World Wide Web, some from other disciplines, and I want to share those I find most helpful. There’s so much the nonprofit sector should be learning and borrowing from others – we don’t always need to reinvent the wheel!
I’m also trying something new this year – “Dive the Five.”
I’ve selected five major themes to discuss with you this year in depth. Strategies that are so important to your success in 2016 – and beyond – that I want to be certain (1) you’ve got them on your priority list, (2) will begin to dedicate some serious resources towards them, and (3) will practice them regularly, until they become almost second nature.
If you learn to “Dive the Five” you’ll be able to raise money for anyone, any place, any time.
It’s boring them to tears.
Actually, let me rephrase. Not to tears. That would mean they’re feeling an emotional connection. Sadly, they’re not.
You’re not making the impact you need to make to keep your donors, let alone get them to give more the next time you ask.
Why?
Let me tell you what I learned from Penelope Burk, Donor-Centered Fundraising author, about 15 years ago. It fundamentally changed the way I communicate with donors.
This week’s Click-it is more of a holiday season “Open-it” collection of gifts. For the second year in a row, I’ve gone shopping and will offer you one or more free gifts every week from now until the end of the year.
These are all good. And the first one today is a real doozy — a gift to me that I’m “re-gifting!”
Want to keep more donors? It’s simple really.
What it all boils down to is one key idea. YOU.
You and the role you play in assuring your donor gets lasting satisfaction from their gift.
A prompt, personal thank you is a beginning. Yet it won’t have lasting effect.
You must go above and beyond the “donor receipt” —
I’m about to clairify a subtle but very important point about what motivates philanthropic giving. After all, that’s what the “Clairification” blog is all about.
It’s often said that people give to people. So true.
But people are funny.
People will often give more to people who show them the pain that can be avoided through their gift rather than the people who show them the good that can be gained.
Seems counter-intuitive, right?
Absolutely. So here’s a little reminder that people don’t always behave as you might intuitively believe they would. Which is why fundraising is part art and part science. And here’s something we know from the research:
The Click-it is early this week since year-end is fast approaching, and I couldn’t wait to share these awesome tips to help you plan your year-end campaign! I’ve got a bit of everything here – from finding email addresses to build your online mailing list… to tips on getting appeals read… to making sure you’re not missing any tricks… to social sharing strategies… to best email subject lines… to Giving Tuesday — and more! I’ll no doubt have even more for you before the end of the year, but now is really the time to get started. Don’t delay. [If you really want to assure you don’t miss a trick, scroll down to the bottom and check out the webinar I’m offering with the Foundation Center on the 17th]
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%?
What if we said “Give Where Most Moved” instead? No one likes to be scolded. Yet most nonprofits make a practice of regularly admonishing supporters to give “where most needed.” You probably think this is a good thing. After all, it gives you the greatest flexibility. Right? Wrong. Think again. You’ll have a lot …
As a fundraising professional, relationship building with donors is an ongoing process and communication is an important part of that process. Stories are a great communications tool that you can use to tell donors about their impact in a tangible and easy to understand manner.
Storytelling seems to be everywhere these days. Non-profits are actively trying to use stories to engage their current and new donors. Is your non-profit trying to tap into the power of stories? Perhaps it’s been a positive experience for your organization. But maybe you have faced some challenges.
One of the biggest challenges with storytelling is being able to tell a great story. A story that really stands out from the pack and resonates with your donor audience. A story that, ultimately, compels action.
This week is all about your donors: keeping them; communicating with them, taking care of them and meeting them where they are. I’ve got several really useful articles for you. Not too many. It’s summer, after all! Plus, as always, some terrific upcoming learning opportunities for you.
Donor Retention
It’s common for retail businesses to adopt the mantra: “The customer is always right.” But when’s the last time you heard “The donor is always right?” Too often, the opposite is true.
I hear a lot of complaining about donors. They should do this (e.g., give because it’s the ‘right’ thing to do; be compliant and not make us work so hard); they shouldn’t do that (e.g., give any way other than ‘unrestricted’; require reports that take us hours to complete). I don’t hear enough of “What can we do to delight our donors today?”
What can you do to delight your donors?
This week is all about what we need to do, collectively and within our organizations, to assure a bright future for philanthropy. I’ve gathered articles from some of the leading thinkers and researchers in the civil sector. This is important stuff — and one “Click-it” you won’t want to miss! Plus, as always, some great learning opportunities for you (scroll to the bottom).
In my work with nonprofits, especially the small to medium-sized ones (but sometimes the big ones too!) there’s one question many of you struggle with:
Gosh dang it! How on earth do you develop a system that assures thank you’s really get out in 48 hours?
The good news is: You’re not alone. The even better news is: I’m going to give you the answer to your question.
Everyone wants to develop a major gifts program. Or to strengthen their existing major gifts program. Why? Because they want to raise more money.
If you approach major gifts development solely from this perspective you’ll ultimately fail.
You might raise more money for a little while. But over the long-term you’ll lose more support than you gain. Because it’s not just about money.
Did you know you’re 85 percent on your way to securing a gift if you can get your prospect to agree to a visit? So says veteran major gifts fundraiser Jerold Panas in his iconic book, Asking. He also says, “If you want to milk a cow, sit by its side.”
But … how do you get the cow to cooperate? Ay, there’s the rub.
It just is. People screen phone calls. They don’t answer emails. They’re busy. And, let’s face it, they know what this is about. Once you get in the room with them, you have your chance to win them over. But how to get there?
I have a dream for 2015 – and beyond. I have a dream this is the year your organization will move beyond defining yourself by what you’re not (nonprofit) and will begin to define yourself by what you are (social benefit). I have a dream this is the year your people will move from an attitude of taking and hitting people up (aka “fundraising”) to a mindset of giving and lifting people up (aka “philanthropy”). I have a dream this is the year your staff and volunteers will move from enacting transactions to enabling transformation.
I have a dream you will think big, because thinking small will not get you where you need to go. You will understand there is great power in a big, wildly exciting vision. You will share this vision broadly to attract people — and financial resources — to your cause. You will no longer be content to remain a “well-kept secret.”
I have a dream you will learn who your best influencers and advocates are and you will embrace them. You will recognize you are no longer your best messenger. You will understand that many forces beyond you influence your donor’s decision to invest with you, and you will expand your thinking and operations from a one-dimensional to a multi-dimensional model. You will allow your constituents to engage with you at multiple points of entry, and to move freely between these points during the life cycle of their engagement.
I have a dream you will push yourself and your organization towards transformative change.
How did your #GivingTuesday go? I’m hoping it was a great success from your perspective, but what about your donor’s perspective? What can you do to assure your donors feel like the heroes they are for making your mission possible?
Right off the bat, make sure you have a robust gratitude program in place. Thank them. Then thank them again. All through the year. The more consistently you practice gratitude, the better. If you don’t have a documented donor acknowledgment program in place, now’s the time to begin.
Whatever you do, don’t just stuff your “#GivingTuesday donors into your database, send out automated receipts, smack your lips and count up the results to report to your board. Really, truly make sure these folks feel thanked for having done something selfless and special.
Then, next year…
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:
We’re fast approaching the giving season. What better time to think about ways we can give back to our donors? If you’re developing a gratitude culture, you’ll do this by being donor-centered with every communication to your supporters. You’ll do it by acting ethically and putting your donors needs first. And you’ll do it by honoring your donors and rewarding them for being the amazing people they are. Here are some articles to help you be the best you can be.
Here are a bunch of October goodies for you. Treats to get you thinking about the role of philanthropy in society… habits of the most effective fundraisers… what it takes to grow loyal supporters… how to assure your website visitors don’t run from you screaming in horror… and much more. And these treats won’t even give you cavities! Don’t miss the special offers at the bottom of the post.
Donor Communication Special Edition
I cannot say this strongly enough. Do not segregate marketing and fundraising as separate silos.
When it comes to fundraising, communication with your donors should not be an “add-on.” Nor should it be relegated to the marketing department. As the guru of donor-centered fundraising, Penelope Burk, states:
It is a core fundraising function that produces long-term income security. Make meaningful communication with donors your development department’s top priority.
Here are some tips from experts across the web to show you how to do a more effective job with your donor communications.
Here’s a timely October Click-it to help you get ready to communicate in a donor-friendly fashion with all your supporters this fall. It’s giving and gratitude season, so grab yourself some great advice and be thankful — for the wisdom of the experts and for your donors. May the force be with you.
And don’t miss some timely October announcements below.
Why and How to Invoke the Power of Thank You
My mother was known for having impeccable manners. At her memorial service, it seemed as if every other person who shared a memory talked about her manners. They did so not in a nitpicking way, but in a loving way. It seemed she always knew just the right thing to do to show her appreciation.
Maybe that’s why I love writing thank you notes. Seriously, it’s my favorite thing to do in all of fundraising. And it’s undoubtedly why, when I first heard Penelope Burk speak in 2001, it completely changed my approach to the practice of development.
If you’re not retaining as many donors as you’d like, you’ve no one to blame but yourself. And I’m here to tell you why.
I’m serious. How you handle donor acknowledgements is that important. Yet, sadly, most of you do an absolutely rotten job of showing your donors how much they mean to you.
Part of the problem is due to focusing on acquisition at the expense of retention. Most executive and development directors don’t even know their retention rates without looking them up.
DUDES! Your retention rates should be on the tips of your tongues! If you don’t know how you’re doing, how can you improve?
Donor retention has continued to plummet every year for the past seven years. It’s really, truly an awful problem. For some unknown reason, all that hard work you put into acquiring new donors is, seemingly, being wasted. Why?
I recently asked folks what ONE word they would use to sum up what is needed to transform donor loyalty. I received some interesting answers and thought I’d share them with you, along with my comments, here. First, let me remind you of my own Big Secret — the one principle I’ve found that makes the greatest difference to long-term, sustainable fundraising success:
You’ve probably heard this advice before. “Make your donors your heroes.” It’s a lot easier said than done.
As Jeff Brooks opined in You and your donors: Who’s the sidekick?, too often we get it backwards and tell donors how awesome we are; then we ask “How’d you like to be my sidekick?” Rather, we should think of ourselves as their sidekick.
One nonprofit director who truly understands this is Julia Wilson, E.D. of One Justice. [A former client of mine, I keep my eye on them like a proud Mama hen watching her little baby chick fly boldly off on her own). After their most recent, highly successful fundraising event, Julia wrote to me saying:
Philanthropy, Not Fundraising
For too many nonprofits something isn’t working. Change is happening at a rapid pace while people try to employ yesterday’s ‘best practices,’ seeming to work harder and harder to make do with less — while needing to serve more.
Before the digital revolution, an information imbalance existed. This facilitated a one-way ‘push’ model of marketing/fundraising. We could define our own brand and sell it. Guess what?
In Part 1 we covered 5 steps to woo your donors with a communications strategy. Today we’ll look more closely at 9 key communications tools you can use effectively to build closer relationships with your supporters. Some are extraordinarily simple. It’s just that many nonprofits fail to use these tools consistently, or well. If you make a practice of doing so, you’ll be well ahead of the game.