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Category: Development

UnderDeveloped

nonprofitchapin2 Comments

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I am thrilled to share a phenomenal report about the challenges faced by nonprofits surrounding fundraising. If you work in development or are a senior level employee at a nonprofit, you must read this! UnderDeveloped: A National Study of Challenges Facing Nonprofit Fundraising is a joint project of CompassPoint and the Evelyn and Walter Haas, Jr. Fund that surveyed development directors and executive directors across the nation to understand their relationship to each other and to fundraising. The report includes insightful numbers on high turnover rates, skills and abilities around fundraising, and an entire section about nurturing a culture of philanthropy in organizations.

I believe the biggest takeaway from this report is that we must reframe what it means to raise money – whether that be by development directors, executive directors, or line staff. We need to have an honest conversation about money, what it means to all of us in society, and what it means to nonprofit organizations. Money, as I’ve mentioned in this blog before, is an incredibly taboo subject. People aren’t comfortable talking about finances in a really open way. It is not deemed to be an acceptable conversation topic. This is a problem when that is what fundraisers are supposed to do – talk about money all day. What does this mean for the success – or lack thereof – of fundraisers?

We need to get to a place where we all understand that money is necessary for nonprofits to provide the services they do, and without donors and their generosity, there would be none. We need to be comfortable to share that with outsiders when we are talking about our programs. We need each other – nonprofits need funds to run, and donors need causes to support and believe in. In the end, we will all win.

Please, read this important report and share it with everyone you know! It can have a great impact for people in need.

-N.C.

Why #GivingTuesday Is Important

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Since you’re reading my blog, you probably already know what #GivingTuesday is. But in case you live under a rock (or are new here – welcome!), #GivingTuesday is a response to the consumerism of Black Friday, Small Business Saturday, and Cyber Monday – a way to launch the upcoming giving season and celebrate the nonprofit organizations that make the world go ’round. You can learn more at the #GivingTuesday website here.

There have been a crop of critics to the #GivingTuesday movement, and they are actually coming from inside the philanthropic sector. This one, an opinion piece in the Stanford Social Innovation Review, is what finally caused me to write this post. The author’s post argues that there is no concrete evidence that #GivingTuesday actually increases giving. In actuality, although it might spur people to give, it might mean that they won’t give their gift another time of year. He believes that because of this, #GivingTuesday won’t “work.”

The author is being too short-sighted in determining what success would look like for #GivingTuesday. You can even look to the mission of #GivingTuesday to explain this:

#GivingTuesday™ is a campaign to create a national day of giving at the start of the annual holiday season. It celebrates and encourages charitable activities that support nonprofit organizations.

While of course it would be good, I see nothing in that statement about increasing donations.

In fact, I would argue that the best part about #GivingTuesday is that the day’s conversation is about nonprofits, donations, and the change we wish to see in the world. While I whole heartedly believe in the nonprofit sector, I don’t believe that it has the respect it deserves amongst general society. The words philanthropy and donation simply aren’t uttered enough in the public eye. #GivingTuesday starts a global conversation about these important topics – it brings nonprofit organizations and philanthropy to the forefront – something that doesn’t happen often enough. The fact that we are talking about it at all is a win.

The author of that post said it himself:

I don’t think it will work. That’s not to say that I don’t think the idea will catch on. I think we’ll see a huge number of tweets and
Instagrams on Giving Tuesday. And I expect that the effort will grow each year. What I don’t think it will do is materially affect giving in any positive way.

I’d challenge him to think outside the box of what “affect giving” might mean.

-N.C.

Money Money Money

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Working in fundraising, I’ve always been a big proponent of redefining the concept of money. As I wrote about in How to Ask for Money Without Being Scared, a good fundraiser must reframe their ideas about money and understand that donating is a way to be involved in a cause, not just giving money away.

I realized recently that this is something I need to work on for myself. I understand the concept, but when it comes to my own money, I am petrified. My car just died and it’s time for me to buy a new one, and I am stressed out beyond belief. Do I get a new car? Used? Toyota? Ford? Focus? Escape? There are so many options, each with different pros and cons… and each with a different financial commitment. I feel so much pressure to make the right decision!

And then I realized… why?

Why do I feel all this pressure? I’m going to make a good choice. Even if it isn’t a perfect one, it will be a very thoughtful choice supported by my family members. I even have my regular car mechanic in my back pocket to look over whatever deals I get. I’ve surrounded myself with smart people. So… what’s the big deal?

For the past few years, I’ve scrutinized my personal spending. I switched car insurance companies. I stopped all TV service. I said no when asked several times about getting a smart phone. I’ve been diligent about keeping my costs down. You know what that means?

I have more money to play with for important investments… like a car!

A car, as I’ve come to realize in letting go of mine, is a precious thing. We gain memories in it. It keeps us safe. And we spend a lot of time with it (at least I do). It’s worth that big investment.

So wish me luck as I search for the right investment for me, and wish me luck in reframing my thoughts about money! Whatever car I end up with, I’ll surely love.

-N.C.

Donors are People, Too!

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I’ve noticed an “us versus them” attitude with fundraisers and donors. Us development staff spend hours trying to understand what motivates, inspires, and eventually causes donors to give. What makes them happy. What makes them sad. Heck, there are countless studies on what day of the week and time of day donors are on Facebook!

I understand the value of understanding the art of giving – and I appreciate that people want to understand what donors want instead of cramming solicitations down their throat. But when does this interest go too far?

I’m here to make a bold statement.

Donors are people, too!

Development staff get so wrapped up in understanding what donors might want that they get scared to do anything at all. Acknowledgement letters go out without personal notes. Major donors don’t get regular calls. Volunteers are never asked for money.

We need to make a change. The next time you send an appeal to a donor you know recently donated, take two minutes to hand write a note to thank them. On a random day, call up a major donor just to say thank you. Sending an acknowledgment letter to someone who gives regularly? Reference that!

These are not big changes. They’re small, but I promise you they make a world of difference. When was the last time you got anything hand written in the mail? Follow the golden rule – for every donor you work with, treat them the way you want to be treated. Simply acknowledge that they’re special.

Because donors are people, too.

-N.C.

My Top Three Fundraising Tips

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Most people fill their days off with hours of reality television, shopping, and sleeping in. Not me (OK, I did sleep in a few days last week!). Last Thursday morning I ventured to San Francisco to Foundation Center to participate in the very informative Top Ten Fundraising Tips by Darian Rodriguez Heyman, the editor of Nonprofit Management 101 (which I was lucky enough to purchase an autographed copy of!). Darian gave a great talk reviewing some tips outlined in the book, a compilation of input from various experts in the field. He started with a very poignant anecdote about Bill Cosby’s grandmother’s view of whether a glass is half empty or half full – her response was, “it depends on if you’re pouring or drinking!”

Darian gave ten tips for fundraising, and I’d like to highlight my three favorite tips that he reviewed.

1. Stage a Thank-a-Thon. Fundraising isn’t all about asking for money. It includes everything from prospecting, to stewarding, to asking, to thanking. Darian posed this as a way to get your board engaged in the fundraising process – print out a simple script for board members (and I would add other volunteers who can speak eloquently about your organization), have some pizza, and schedule an hour after work one day where everyone can gather and make calls to say thanks – without asking for money. It’s a win-win situation for your board, your donors, and you.

2. Never Submit a Cold Grant. This point really can relate to anyone from whom you’re asking for money, not just grantors. Funding is all about relationships, and that includes grants. Just because the grantor doles out thousands of dollars each year doesn’t mean you have to be afraid to talk to them. Most of them prefer you talk to them. Get in touch with the Program Officer and ask for advice on your application. Darian went so far as to suggest asking them to review your application – I’ve never done that, but he’s had proven success doing it! Doing this causes them to mentally adopt your project, even if they never actually review it.

3. Utilize the Upcoming Volunteerism Revolution. OK, so I took liberty on changing one of his tip titles with this one, but this was a point he made. Volunteerism is moving toward people truly wanting to be part of the solution, and they don’t just want to stuff envelopes – they want to leverage their skills and expertise in helping you. Keep this in mind when engaging your volunteer force.

I’d like to end with one more point Darian made that really resonated with me – people don’t give to you, they give through you. People are giving to the impact you make. Fundraising isn’t personal to the fundraiser, it’s personal to the donor. They are connected to the change your nonprofit is making. You’re just the middle man.

-N.C.

P.S. I’m so excited that I can just pop over to events in San Francisco now! The city is full of nonprofit activity. Here’s a photo I took while stuck in traffic after the event!


How Do You Give?

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I read an interesting post yesterday called Direct Mail Still Rules the Day in Fundraising on Fundraising Success. It highlights some of the notable findings in Blackbaud’s 2011 donorCentrics Internet and Multichannel Giving Benchmarking Report. The article made me think about how I donate and why. Here are some points that jumped out at me and my personal response.

  • Even though direct mail remains the dominant channel for donor acquisition, it is increasingly common for new donors to give initially online. Very interesting. In order for me to give to a nonprofit organization, I need to already know about them and what they are doing. Yes, I may go to their website to research them a bit more, but I probably have interacted with them more than just online – maybe I volunteered for them, visited their facility, saw their services in action, etc. I need to engage more with nonprofits before I give to them, so online isn’t the way I’d choose to give. The only time this is true is when a friend asks me to give to something they are raising money for. Which is why the next point makes sense.
  • Online-acquired donors tend to have lower retention rates than mail-acquired donors. Exactly. If you acquired my donation online, you are probably one of those organizations my friend is fundraising for, and so my personal connection doesn’t bridge further than that (unless you engage me another way, which most nonprofits don’t). It’s too bad more of those nonprofits don’t do more to engage us friend folks, demonstrating their value and why giving to their general fund would be beneficial.
  • Large proportions of online-acquired donors switch from online giving to offline giving — primarily direct mail. However, very few mail-acquired donors switch to online giving. Like many people, I consider mail activity to mean more than online activity. You probably received several emails today, but when was the last time you received a letter? If you’ve convinced me to give again, and I gave online the first time, I probably think of you as more important than I did with the first gift, so I’m going to give through direct mail.
  • The presence of past multichannel giving is generally not a significant factor in predicting future retention or long-term donor value. Traditional RFM factors are far better indicators. Doesn’t surprise me one bit. Donating over multiple channels (online, direct mail, etc) doesn’t necessarily mean the donor is invested in the organization – but RFM factors (recency, frequency, monetary – when they gave last, how often they give, and how much they gave) will always be the best guide of where a donor is going with their giving.

I definitely encourage you to take a look at the Fundraising Success article and think about your own giving. I’d love to hear what you think!

-N.C.

How to Ask for Money Without Being Scared

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Money is a funny thing. Our relationship to it is unlike anything else. Money ensures you have food, shelter, clothing – all the basic human essentials. In fact, with the American economy set up the way it is, one could argue you need money to live. But most of us work to get more money than is necessary. Most of us dream of the house with a white picket fence, the nice car, and the fancy dinners. And therefore, in many people’s eyes, money = happiness.

That’s one of the reasons asking for money is so scary. Money is sacred – it represents so much more than the coins jingling in your piggy bank. It represents a comfortable home and piece of mind. But if you change your mindset about what you’re really asking for when you ask for money, it’s easy.

Here are some tips to keep in mind when asking for money.

  • Love the cause you’re asking for money for. If you’re passionate about what you’re fundraising for, it will come across when you’re talking to potential donors. Remember to share why you love the cause, what got you involved, and why you care. Instead of trying to convince them to care, showing that you care is the best way to persuade them.
  • Be in the business of making people happy. Giving away money to good causes makes people happy (there are several studies that show this is the case). People love the feeling they get when helping others. Instead of thinking of it as asking someone for something, think of it as giving them the opportunity to be happy. You are simply the middle man.
  • They are going to give away their money anyway – might as well be to your cause. More than 9 out of 10 Americans donate in a given year – that’s huge. There’s a strong chance the person you’re talking to is going to give to something this year. It might as well be the amazing cause you are working for – you know how amazing it is, so you’ve already vetted the cause and done the research for them! All that’s left is the easy part – donating.
  • Don’t be afraid of rejection. The worst possible thing that could happen when you ask someone for money? They say no. Then what? Nothing. You move on, they move on. Don’t take this response personally – when someone says no, it’s no reflection on you, it’s simply not a fit for him/her to give to your cause.

Asking for money does not have to be scary, and if you follow these tips, it will become natural to you. Let go of being scared of rejection, feel confident in your cause, and put on your best smile. You can do it! 🙂

-N.C.