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Bottom Line: Philanthropy Culture Improves Fundraising

“Philanthropic culture is a key driver of fundraising performance.”

— Adrian Sargent, Institute for Sustainable Philanthropy

Is a culture of philanthropy just something that’s ‘nice’ to have? Does it simply make people feel good? Or might it actually affect your bottom line – making it ‘necessary?’

I know I’ve worked with organizations who looked at the notion of developing a philanthropy culture a bit like doing staff morale building or sensitivity training. It certainly sounds good, and who can argue with reports from pioneering organizations like the Walter and Evelyn Haas Jr. Fund (see Underdeveloped, Beyond Fundraising: What Does it Mean to Build a Culture of Philanthropy, and Fundraising Bright Spots) and Sea Change Strategies (see Inside-Out Fundraising) that embracing a culture of philanthropy (COP) will bring all sorts of benefits, including recruitment and retention of talent, stronger development plans and infrastructure, a better understanding of the board role in fundraising and a shared understanding of the importance of fundraising across functional siloes.

“As a sector, we need to elevate the importance of fund development as a leadership issue, invest in a stronger talent pool, and strengthen the ability of nonprofits to develop the systems that enable fundraising success.”

— Jeanne Bell, CEO of CompassPoint, co-author of Underdeveloped

“Generally, a culture of philanthropy is one in which everyone—board, staff and CEO—has a part to play in raising resources for the organization. It’s about relationships, not just money. It’s as much about keeping donors as acquiring new ones and seeing them as having more than just money to bring to the table. And it’s a culture in which fund development is a valued and mission aligned component of everything the organization does.”

— Cynthia Gibson, author, Beyond Fundraising

“Without tackling internal issues head-on, we believe the prospects for major fundraising progress are limited. In most organizations, fundraising is limited more by organizational culture and structure than by lack of strategic or tactical know-how.”

— Alia McKee and Mark Rovner, Founders, Sea Change Strategies

Despite the impressive research that’s been done showing the value of a philanthropic culture, too many nonprofits have simply assumed they had one by virtue of merely existing within the social benefit sector. Or even if they understood achieving a true COP took work, they just never moved this from the back burner to the front.

“Many charities are so wrapped up in the process of doing – delivering, raising income, adapting to the panoply of changing circumstances that can radically alter day to day activity – that establishing a truly philanthropic culture might not be high on the list of priorities.”

— Adrian Sargent, Institute for Sustainable Philanthropy

It’s Time for a Change

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Before Sending a Fundraising Appeal Do This, Not That

Hands forming heart pexelsHold the presses! If you haven’t yet sent your year-end fundraising appeal, you’ve time to give your message a once over.

I’ve got just the checklist you need.

If you’ve already sent your appeal off to the printer, you’ve still time to rethink your copy before sending your December follow-up or preparing your year-end series of emails.

Either way, taking the time to look at your fundraising message with a critical eye can help you raise a lot more money.

You see, there are right and wrong ways to talk with prospective donors. You’ve likely read a lot on this topic (I know I’ve certainly written a lot on this topic – for starters see here), yet it bears repeating. Especially as we enter the most giving time of the year. If you fail to put your best foot forward during the last quarter of the calendar year, you’re going to end up shooting yourself in that foot!

Many charities will raise a huge percentage of their annual fundraising goal during the next three months. There’s plenty of data out there to support this. Just check the infographics below.

Let’s make sure you don’t blow your chances and get your full share of the philanthropy pie.

Do This, Not That

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Skyrocketing

10 Strategies to Skyrocket Major Gift Fundraising

Skyrocketing“Begin at the beginning and go on till you come to the end; then stop.” So wrote Lewis Carroll in Alice in Wonderland.

It’s the same with major donor fundraising, except you don’t ever really stop.  You just start up again. You do follow a prescribed path, however.  And here’s what it looks like:

  1. Before
  2. Ground Floor
  3. Explore
  4. Back Door
  5. Adore
  6. Mentor
  7. Ask For
  8. Implore
  9. Rapport
  10. Report

If you do this correctly, it becomes a transformational process for the donor. They want to stay connected and engaged and invested.  Which is why you don’t stop.  You follow up with “Some More.”

But first…

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Major Donor Conversations: Pitch vs. Promise

Claiire Axelrad heart signToday I want to talk about the heart of successful major gift fundraising.

It’s about reframing what you may think of as a “pitch” into what your donor would like to consider a “promise.”

The pitch is one way: You deliver a monologue about everything you know about your organization, how great it is, how pressing the need is, how you know this is what the donor cares about (maybe based on a computer print-out of the donor’s past history with your cause)… and then drop this bomb into your donor’s lap – often leaving them feeling like they didn’t get a chance to get a word in edgewise and/or they’ll be a ‘bad’ person if they don’t respond as you suggest.

The promise is two-way: Your donor promises to make a gift to accomplish something near and dear to their heart; you promise to put that gift to work effectively and report back to the donor on what their philanthropy accomplished.

The difference between these approaches is the difference between success and failure, especially over time.

For donors to give at their most passionate level, and to stick with you over time, they have to see and feel the promise. They have to believe and trust in you. They have to feel good about their giving.

If they give because they felt coerced or guilty by your perceived sales pitch, they aren’t likely to want to do this again. When you make giving transactional, you fail to build a relationship. Ultimately, these donors will evaporate.

Which brings us to the heart of effective major donor fundraising:

THE CONVERSATION

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Chalkboard Menu

What to Put on Your Nonprofit Fundraising Plan Menu

A good fundraising strategic plan, like a menu, should be broken into component parts so it’s easy to wrap your brain around.

With a menu, it might be appetizers, meat entrees, seafood entrees, vegetarian entrees, sides and desserts.

With a fundraising plan, it tends to break down into strategies.

It might be annual giving, major gifts, legacy gifts, foundation grants, business sponsors, events and so forth.

Before you can get to determining your priority strategies, however, you need to do a mini fundraising audit.

When I begin working with a new nonprofit client, I always ask the same three questions.

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Master chef creation

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

I learned something over three 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 Lily School of Philanthropy at Indiana University.

And my eyes were opened to the very nature of fundraising. And the essential pre-conditions for fundraising success.

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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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'Wearing is Caring' Street art

Fool-Proof Nonprofit Crisis Fundraising Communications Templates for Every Audience

'Wearing is Caring' Street artDuring a crisis is no time to be passive. Build a list of audiences, prioritize contacts among those lists, and develop a step-by-step written PLAN to reach out. With updates, engagement opportunities, little gifts of content folks can use, and opportunities to contribute and make a demonstrable difference.

Sharing is caring too.  Do you have a plan in place to regularly share what you’re up to, and offer opportunities for donors to engage?  Are you communicating with donors as if they’re a part of your family or favorite group of friends? If not so much, what are you waiting for?

Establish templates with talking points in advance of your communications; then let the reaching out begin. First determine your purpose.

  • Do you want to say thank you?
  • Do you want to simply check in to see how your donor is doing, and whether they have any questions about your organization’s status and work right now?
  • Do you want to ask them to volunteer their time?
  • Do you want to ask for a philanthropic gift?
  • Do you want them to complete a survey?

Figure this out first, because the more you know where you’re going the more likely you are to get there! If you’re light on staff right now, ask your volunteers and influencers for help.

These communication templates can be used for phone (or other online) conversations and emails. Got that? Conversations! Merriam Webster describes a conversation as “oral exchange of sentiments, observations, opinions, or ideas.” In other words, you want to prompt two-way participation on some level. This is not about you delivering a monologue or formal dissertation. Think of your communication as you raising an issue for discussion. You want to pique your donor’s interest and ask open-ended questions that invite their engagement.

Start with your top priority donors who have the highest likelihood of making an additional gift to get you through this crisis. I suggest

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Paper heart tacked to tree, with motto

Are You Unclear on the Concept of Why to Send a Nonprofit Fundraising Appeal?

Paper heart tacked to tree, with mottoWhat’s the point of a fundraising appeal letter?

That’s obvious, right? To raise money!

But, wait a minute.

Dig deeper.

I always ask the question “why?” until I finally get to the end – where no more ‘why’ questions need to be asked — and uncover the true purpose behind anything I’m doing.

So… why are you endeavoring to raise money?

Because your organization needs contributed income.

Why does your organization need contributed income?

Because you don’t generate enough earned income to enact your mission.

Why don’t you generate enough earned income?

Because you make your services available for free or low cost to those who otherwise couldn’t afford them.

Why can’t folks afford what you offer without subsidy?

Because they’re … elderly on fixed incomes… vulnerable children… newly arrived immigrants… low-income single parents… families living below poverty level… veterans… unemployed… homeless… devastated by a natural emergency or illness… saddled by debt… or otherwise at-risk, marginalized, overlooked or being in need of a break.

Why else do you need community support?

Because the upfront cost is greater than the market will bear, but worth it for the ultimate community good of… a cure for a terminal disease… relief from devastating pain… ending injustice… saving the environment… preventing violence, abuse, addiction, suicide… restoring faith and inspiration to those whose lives would otherwise lack meaning, fulfillment and hope.

Aha! Now that you’ve answered all these important “why” questions you know the point of your fundraising appeal letter or email. Right?

It’s to get people to understand the benefit of their gift; what will happen absent their generosity.

It’s more than ridding themselves of the dollar they had burning in their pocket.

But wait another minute.

Can you dig still deeper?

Why do you want people to understand the outcome they can create?

Because… 

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