Could Gifts of Stock Be Your Nonprofit’s Magic Genie?

Genie pexelsDoes your nonprofit promote stock gifts?  You should!

A groundbreaking study by Dr. Russell James J.D., Ph.D., CFP®, professor in the Department of Personal Financial Planning at Texas Tech University, found nonprofits that consistently received gifts of appreciated stocks grew their contributions six times faster than those receiving only cash.

This is HUGE.

If you learn to ask for gifts from appreciated assets you’ll get more generous gifts. The study shows:

  • Received only cash gifts = 11% growth.
  • Received any kind of non-cash gift = 50% growth. Included gifts of personal and real property and deferred gifts.
  • Received securities non-cash gifts = 66% growth. Massive difference from just this one strategy!

You Don’t Have to Get Fancy

The most productive strategy is simply to accept gifts of stock.

But it’s up to you to offer up this giving framework to your supporters.  Otherwise, they’re apt not to see this as an opportunity.

And speaking of ‘framing,’ this can establish a persuasive reference point for would-be donors. Researchers have found people don’t treat all their money as if they have one big pool of it.

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Labyrinthine Heart, 2023 benefit for S.F. General Foundation

6 Top Reasons To Use Handwriting

Do you write anymore?

I don’t mean do you type.

I’m talking about good old-fashioned handwriting.

You know, that very human practice most of the world seems to have abandoned post digital revolution?

It may seem practical and smart. After all, using a keyboard is definitely quicker.

But something critical gets lost in translation.

Emotional Connection

Not just to your audience, but to yourself.

Could keyboarding be causing you to disconnect? To lose your passion?

This is why writers including  J.K. Rowling, Stephen King, Danielle Steele, John Updike and Joyce Carol Oates have rejected word processors and computers in favor of writing by hand. At least for their first drafts.

CAVEAT: Don’t fall into the trap of thinking these “handwriting people” are all just “old,” “old school,” or “stuck in their ways.”  Rather, they intuitively discovered things about hand writing. All subsequently borne out by neuroscience. Once upon a time I intuited this as well. I couldn’t imagine giving up my yellow writing pad and pens of various colors.  How would I think expressively if forced to type everything? Gradually, I was persuaded (shamed?) to jump on the bandwagon of modernity and efficiency. And, lo and behold, it was incredibly efficient. So fast!  I got used to editing as I went along. Pretty soon I couldn’t envision ever going back. BUT…

But… after many years on the wrong track, I’m coming to understand the documented benefits of composing by hand.

Writing By Hand Offers Psychological Benefits

You can learn more about some of these benefits from specific studies here (improves memory and promotes deep encoding); here (bolsters learning), and here (advances idea generation), to name just a few.

Today I want to share six of these benefits I think you’ll find most relevant to your nonprofit work.

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Three-San-Francisco-Hearts-Heart-of-Gold-Birds-of-the-Americas-Keeping-Balance. Benefit for S.F. General Foundation

Why Do People Make Philanthropic Legacy Gifts?

Three-San-Francisco-Hearts-Heart-of-Gold-Birds-of-the-Americas-Keeping-Balance. Benefit for S.F. General FoundationThere’s a lot of potential legacy giving out there in the universe. Per Giving USA 2022, giving by bequest was an estimated $46 billion, (an increase of $5 billion from just two years previous). What are you doing to assure some of it will flow to your cause?

First, Identify Your Audience for Legacy Gifts

I cover this subject in depth in Where Are Our Nonprofit’s Legacy Donors?  Contrary to the way most nonprofits behave, legacy gifts don’t simply fall from the sky. They’re not delivered by storks carrying baskets filled with wills, trusts and beneficiary designations. You need to do something proactive.

You can’t simply rest on your reputation, however solid it may be. You could be raising tons and tons of money annually, and it won’t necessarily translate to bequests. It’s not because your donors aren’t the will-writing kind. That may be true for some of them, but there are other simple ways to leave a legacy accessible to all. Donor willingness is not the problem.

You are!

Key: Your Willingness to Prioritize Building a Legacy Giving Program 

No charity succeeds simply waiting by the phone for folks to call. You’ll receive a bequest or two, perhaps. But nowhere near what you could receive if you took the bull by the horns and created a program that speaks to why people make legacy gifts.

There are two main reasons: (1) they’re asked, and (2) it feels meaningful to do so. So, given this, what do you incorporate into your program? What if I told you there’s a way to take charge of your own destiny, as you simultaneously help donors take charge of theirs?

STEP #1: Figure out a strategy to get folks thinking of you as a recipient of their philanthropic largess after death. There are elements to include in a full-fledged legacy giving program, and I’ve written about that plenty (e.g., see here and here).

STEP # 2: Help donors connect their giving to their personal identity and meaning. People may believe you’re awesome. But when it comes to distributing the hard-earned income accrued over a lifetime, they just don’t think of you that way. As an extension of their family, deepest values and essential identity. This is where many nonprofits fall down on the job, and it’s what I want to discuss today.

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Three San Francisco Hearts: Rainbow, Love, Resilience. Benefit for S.F. General Foundation.

Top Strategies for Making Friends with Nonprofit Donors

Three San Francisco Hearts: Rainbow, Love, Resilience. Benefit for S.F. General Foundation.Today a friend, who serves on the board of a struggling local arts organization, asked me what they can do to increase their fundraising. I asked her a few questions; then answered simply: “Have more conversations with people; make more friends.”

You see, they have people who know about them but they’re just not giving.

They have donors, but they’re not giving enough.

Why? Because they haven’t been treated like friends and family. They don’t feel connected.

What’s the best advice to build stronger connections with likely supporters?

1. People Give to People

Remember this basic truth. Humans are a social species.

People also buy from people.

So if you consider fundraising “making a sale” (which I do, because it’s part of being human to be constantly trying to persuade others; read Daniel Pink’s To Sell is Human), you must show up as authentically human.

And how do you do this?

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Felt heart hanging from a pole

Top Secret Strategy to Communicate with Nonprofit Donors

Heart carved into treeDid you ever wonder if there is a foolproof way to communicate with donors?

Actually, there is!

And it’s not about process.

It’s about another ‘P’ word.

Can you guess?

I’ll give you a hint.

It relates to the secret business your nonprofit is in.

You may think you’re in (arts, healthcare, human services, environment, social justice, animal rescue, education or whatever) but, fundamentally, your core business is something else.  Something deeper.

Something that emanated from whoever founded your nonprofit.

Without this special something, your nonprofit wouldn’t exist.

Have you figured it out?

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Why Donor Wooing Requires WOWing

Woman checking out at cashier

The Unfair Exchange Bernadette Jiwa, The Story of Telling.

“That will be eight dollars,’ the woman, who is carefully weighing and wrapping two serves of freshly made fettuccine for us to take home, says.

As my husband is about to hand her the cash, she takes another handful of the pasta from behind the glass and adds it to our package.

She doesn’t announce that she’s giving us twenty per cent extra for free.
She doesn’t even invite us to notice the gesture at all.
It’s enough for her that she knows she has added value.

We think of value as a hard metric—the anticipated fair exchange of this for that.

But value can be a surprising, generous, unfair exchange.

Something that is given because we can, not because we must.“

Ah… value.

Wow, wow, WOW!

This is what all fundraising, fundamentally, is about.

A value-for-value exchange.

Yet one side of the exchange is a hard metric: The donor’s cold, hard cash.

While the other side of the exchange is something decidedly less tangible: Freely given gratitude from you and your organization.

Or at least that’s how it should work.

The Difference between ‘We Must’ and ‘We Can’ 

What does your donor love and loyalty plan look like?

Do you even have such a plan?

If the only reason you acknowledge donations is because you feel you ‘must,’ it’s likely your donors aren’t walking away from the encounter feeling much more than matter-of-fact. The transactional receipts many organizations send out are registered by the donors as “Ho, hum. Guess I’ll go file this with my tax receipts.”

This kind of exchange is fair, sure.

But it’s not generous.

WHAT ELSE DO YOU HAVE TO GIVE?

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When you open the door, the future looks brighter

When Opportunity Knocks, Open the Door: Donor Acquisition

No nonprofit can afford to be an island.

As tempting as it may be to stay in your comfort zone, wearing blinders that enable you to forge straight ahead without noticing what’s going on around you, this is a dangerous practice.

Because sometimes the landscape changes dramatically.  And when it does, your nonprofit could get left behind. Unless you’re paying close attention.

This has been happening a lot over the past six years or so, as news and social media has been filling our brains, stoking our fears and tugging at our heartstrings as if from a firehose. People who care, when they see devastation and misery, want to help.

This happens, for instance, when emergencies arise. Earthquakes. Hurricanes. Floods. Fires. Drought. War. Over the course of my four decades in fundraising, there have been years I’ve had donors tell me “This year we’re giving all our extra resources to respond to… Hurricane Katrina… Haiti relief… the Fukushima disaster… the refugee crisis… anti-hate organizations…  .” The list goes on an on.

In the face of such natural human impulses, what can you do?

When things outside your nonprofit’s doors portend impact for your ability to fulfill your mission, you need to be prepared.

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How to Make Donors Happy to Say YES to Your Fundraising Appeal

Super hero kidsToday I’m going to tell you how to create a fundraising appeal that’s all about your donor’s happiness.

Because if you can persuade your donor that saying “yes” will make them happy, then you both win.

Don’t you want to make your donor feel like a winner?

Don’t you want to be a winner?

Everybody wants to be a winner!

Sadly, most nonprofits write appeals that don’t create a win/win.

They write self-congratulatory letters that talk about how wonderful they are, and what wonderful outcomes they make possible.

They forget about the donor.

They don’t think about donor joy.

How can I be so certain this is the case?

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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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