Giving Tuesday, the Global Day of Philanthropy is on Tuesday, November 28. The Bill and Melinda Gates Foundation is partnering with Facebook again this year to provide a match up to $2 million to donors who give during that day.
Here are the specifics of this match:
Donations made to participating nonprofit organizations through Facebook’s charitable giving tools beginning at 8:00 am EST on November 28 will be matched — up to $50,000 per nonprofit, or $1,000 per fundraiser or donate button — until the matching funds run out. Facebook and the Gates Foundation are contributing $1 million each for the campaign, and all matched funds will be paid out to nonprofits through Network for Good’s donor-advised fund.
So, what can your organization do to prepare?
Here are some simple steps that I have been recommending to nonprofits to take advantage of this match:
1 – Determine what your Giving Tuesday monetary and non-monetary goals are. How much do you want to raise? How many new donors do you want to attract?
2 – Ensure that you have activated your Facebook “Donate” button first and foremost. Ensure that you are using Facebook’s full scope of charitable giving tools. Otherwise, you will not be eligible for the match. You also want to ensure that your pages are branded so that folks can recognize the Giving Tuesday campaign.
3 – Ensure that your website and online donation portal are up-to-speed and ready to go. Make sure that you rigorously test them. Your website and donation portal should be easy for a donor to use and navigate. Donating should not be difficult.
4 – If you have work to do on your donor lists, now is the time. Make sure that they all get uploaded into your Donor Management System, particularly your email addresses.
5 – Draft your social media and email messaging now. You will want to announce this match opportunity in advance as well as send out reminders the day before, the day of, and an acknowledgement the day after. Use key days such as “Black Friday” as messaging points. Be sure to use photos, videos, and testimonials. Consider integrating into your current calendar year-end campaign.
6 – Be sure to recruit ambassadors as social media messengers for your cause during this campaign. You may want to enlist your Board, staff, and volunteers to help spread the word about your GIving Tuesday by sharing your social media messages with their family and friends. If you are using Peer-to-Peer Fundraising, then get your folks set-up and engaged in advance of the actual day.
7 – Develop a plan to steward these Giving Tuesday donors once Giving Tuesday is complete, and you begin marching into December.
These are some simple steps that you can take to begin to plan for your Giving Tuesday campaign.
Now, I want to hear from you. What steps is organization taking to prepare for this day of giving?
Each year, approximately 10% of your non-profit donor base will attrition naturally through death, moving, or just not giving any longer. Then you add lapsed donors on top of that natural attrition, and you are looking at an eroding donor list. Sound familiar?
In this article, I tackle the ever important question of “How to find new donors for your nonprofit?”
Here are some simple steps that you can take to combat this natural attrition and to begin adding new names to your donor list. These are the actual suggestions that I use with my very own clients.
1.) Conduct a fun exercise with your Board members such as a “Treasure Map” activity to help them to think of all those who they come into contact with in their networks i.e. people who they attend church with, volunteer on other Boards of Directors, friends, etc.
2.) Host a gathering or tour and have Board and staff bring those prospective donors to this event. This event should have a program that shares information about the organization and its mission, services, ways to get involved, and most importantly, a testimonial. Don’t forget to conduct follow-up with all those who attend these events to find out what they thought about the event and to determine further interest for engagement.
3.) Use social media as a way to find new donors. Consider having a presence on Facebook, LinkedIn, Twitter, etc. Don’t overwhelm yourself with having to manage and pay attention to too many networks at a time. Instead, be strategic, profile your ideal donor and then determine what networks that you are most likely to find them. Keep up to date on your competitor’s website and how they are managing their social media presence. Then promote, promote, promote and have your Board and staff act as “Social Media Ambassadors” sharing the page with friends, family, and other interested individuals. Keep content fresh, consider automating content with an automating app, and don’t forget to comment and interact with others. Keep content 80% of interest and 20% promotional.
4.) Take a look at similar organization’s annual reports, websites, and newsletters and compile a list of who is giving to them. Compile a prospective list of donors. Ask Board and staff if they happen to know anyone on these lists. If so, begin to cultivate them.
5.) Get the local voter or street records list, sometimes referred to as “Grand” lists and review this list with Board and staff based on property assessment, location, or other criteria that meet your ideal donor profile. From there pull together a prospective donor list and cultivate!
6.) Ask for referrals from your current donors. These donors already are giving to you and love you. So why not just ask them who else may they know who might be interested in becoming more involved in the organization.
7.) Be sure when you are doing outreach at events or speaking engagements to bring along a guest book so that interested attendees can sign up to receive more information. You have a captive, interested audience, so you want to be sure to get their names and contact information. Research them if possible, segment out those with greater interest and capacity for cultivation, and add all the other names to your mailing list.
8.) Identify new attendees to your organization’s fundraising events and create strategies that will take their transactional attendance to possible transformational engagement in your organization. One possible first step is to call those new attendees and find out what they thought about the event and if they see themselves getting more involved or interested in learning more.
9.) Capture interested website visitors with a website “pop-up” offering free information and resources. Send these folks a welcome and begin to send them relevant informational emails in cultivation. Ensure that your site is mobile-friendly as more and more folks are using their mobile devices to access content.
10.) And, of course, you can always rent and purchase mailing lists from a list broker.
So there you have ten steps that you can begin immediately taking to start to stem the tide of donor attrition by adding new names to your donor lists. These are the same steps that I use to help my clients build their donor lists. And, they work!
For a FREE half hour coaching session with me, email me now to schedule your complimentary time. Offer ends Friday, August 4.
A lapsed donor is one who has lapsed from giving at least a calendar year. They are the most significant donors to focus your efforts on re-engaging since they have already demonstrated an interest in your organization.
There are several ways to re-engage these lapsed donors. Here are some suggestions that you can implement within your organization.
Identify those donors who gave last year and yet have to donate this year. Those are your lapsed donors.
Add up the total giving from these lapsed donors. Surely after seeing this number, you will want to spend some time trying to recapture them.
Segment out the major donors from this list. A major donor giving level will vary from organization to organization i.e. $250, $500, $1,000, or even more.
Share this list with your Development Committee of the Board and discuss the plan of action.
Have Board members identify those major donors that they can personally call on.
Intend to call on these donors either through personal visits or telephone to secure a gift commitment.
Plan to send a specialized segmented direct mail letter to all others not identified as major donors.
You could also use this same strategy for each appeal that you send out to be proactively trying to prevent lapsing from occurring in the first place.
You have just been offered a job as a Director of Development and now what?
Well, over the past twenty years, I have had my share of jobs and have started some fundraising offices within nonprofits as part of my consulting practice. As a result, I have gotten pretty good at figuring out what the first steps need to be when setting up your development office.
I am going to share with you some of these first steps on what to get started with immediately to make your first three months a success. These first three months are a particular time of “newness” that you can use to your advantage.
Step #1 – Get established on your working location and equipment. Ensure you set up your office area so that it will be conducive to your work style and habits and ensure that you have all of the hardware and software you need including training.
Step #2 – If you don’t have the required software, don’t skimp by using Excel. Start right out by determining what your current and future needs may be and begin to research and present options for a donor database/CRM system that will meet those needs. You cannot build a successful development program without this foundational component. It is the “brains” behind your program.
Step #3 – Begin conducting a development assessment of the past fundraising efforts of the organization.
Step #4 – To carry out this assessment and to get acclimated to the new organization, use this time to meet with
Key leadership staff
Board of Directors
Any past and/or current donors
Anyone else deemed important to the organization
Step #5 – Use the data that you obtain during this development assessment process to begin to put together a series of recommendations based on best practices that you can put into place during your tenure. Share these recommendations with key leadership and Board members to obtain approval and “buy-in.”
Step #6 – Begin to immerse yourself in the new organization’s programs and services.
Step #7 – Begin to craft a Case for Support if your organization does not already have one in place.
Step #8 – Determine the key projects that need attention in the immediate future and begin to manage them. Get a handle on your development calendar including your annual fund and grant application and reporting deadlines.
Step #9 – Begin to put into place some of the recommendations that you outlined after conducting your development assessment whether they focus on major gifts, planned giving, individual giving, direct mail, etc.
These are some easy and straightforward ways that you can get up to speed quickly and efficiently in your new role and have an immediate impact on your organization’s fund development program. Early wins=your success.
Now that it is development planning season for many with the start of a new fiscal year looming, I am often asked, where do you start first when putting together your development plan and calendar.
Well, for me, I start at the beginning. I tend to look at the key metrics and how past Return on Investment (ROI) has been for each fundraising activity including events, appeals, major gifts, etc., etc., etc. By looking at ROI, you will determine whether or not a particular activity is effective or not. It prevents that “well we have always done it this way” or “we hold this event every year, so we can’t stop it now.” It allows you to keep the proverbial “winners” while deciding to eliminate those activities that are not as effective or are not meeting best practices.
I should add a disclaimer before I go on that – not all activities have a sole purpose of raising money! So, specific metrics would need to be developed for those particular activities.
So what are some of those key metrics and how do you calculate them?
I start by gathering:
# of pieces – # of pieces mailed to select group of the database or number of direct requests
# of gifts – # of gifts received by mailing or number of donors responding with gifts
Gross income – Income without expenses calculated or values of gifts and contributions received
Expenses – expenses of mailing including copywriting, design, mailing services and postage or amount of fundraising budget spent
Then I calculate:
Net income – Expenses minus gross income
Participation rate – # of participants divided by total solicitations
Average gift – Divide revenue received by participants
Average cost per gift – Divide expenses by participants
Cost of fundraising – Expenses divided by revenue
Net ROI – Net income divided by expenses; multiplied by 100 for percentage rate of return
I put this all in a spreadsheet document with like appeals spanning a number of years together i.e. Spring Appeal 2012, 2013, 2014, 2105, etc. So that ROI comparisons can be easily made. If you would like a sample copy of this Appeal Comparison spreadsheet to use for your purposes, email me here!
Then from there, I evaluate all of this data against Industry Best Practices in terms of Solicitation Activity Reasonable Cost Guidelines as found below.
Solicitation Activity Reasonable Cost Guidelines
Direct mail (acquisition) $1.00 to $1.25 per $1.00 raised
Direct mail (renewal) $0.20 to $0.25 per $1.00 raised
Special events $0.50 per $1.00 raised
Volunteer-led personal solicitation $0.10 to $0.20 per $1.00 raised
Corporation and Foundation Grants $0.20 per $1.00 raised
Capital campaigns/ Major Gifts $0.05 to $0.10 per $1.00 raised
Planned Giving $0.20 to $0.30 per $1.00 raised
If an activity meets the Reasonable Cost Guidelines then it is a keeper, if not, then it is time to evaluate why. Don’t throw an activity out solely on not meeting these guidelines, especially if you have other “goals” in mind for the particular strategy, but do be conscious of this in your planning process.
Just this week, I was working with a client, and we were discussing Board member engagement in fund development. The assumption was, ho hum, “they just won’t participate.” It was then that I came across a blog article outlining all of the wonderful ways that you can engage your Board in fundraising. You know things like, make thank you calls, write notecards, etc., etc., etc.
To be honest, we have heard these over and over again. The reality is that even though you can talk about all the different ways that Board members can participate in the process of raising philanthropic dollars, it still doesn’t cause engagement.
So, my client and I stepped back and bit and talked about how some successful organizations ARE engaging their Boards in fundraising. And, what we noticed is that with very successful organizations, it all begins with how you recruit, screen, and bring on new Board members to your organization. And, here based on that evaluation are some simple steps that you can take to revolutionize your Board engagement.
Here is what I recommend:
As a fundraiser, become a member of the Board nominating or preferably governance committee, if not already a member. And, as an executive, advocate for your fundraiser’s participation on this important committee. It all starts here.
Develop a formally written and adopted Board recruitment process and procedure.
One you have identified an appropriate Board member candidate, schedule a screening interview. (Yes, a screening interview! Why would you not screen for one of the most important jobs in your organization?)
Send the prospective candidate information in advance i.e. things like your brochure, a list of volunteer opportunities, committee listings, relevant Board policies, etc., etc.
At the interview, first, review the process and purpose of the meeting i.e. “getting-to-know” each other interview.
Then review with the candidate the organization’s values, mission, and services seeking alignment. If the candidate does not align with those core elements of your organization’s identity that is a “red flag.”
Share with the candidate the major issues facing the organization both opportunities and challenges.
Share with the candidate the different ways that the organization uses volunteers i.e. committees, policies, meeting schedule, etc., etc.
Review skills, experiences, diversity, and network needs that the organization has identified. Discuss with the candidate which of these they desire using on behalf of the organization. Seek alignment.
Review Board member responsibilities and expectation, particularly around fund development seeking commitment to them
Close the meeting but don’t make any decisions yet.
Bring all of this information back to the nominating/governance committee to discuss and make recommendations. Remember the fundraiser must sit on this committee.
Once the candidate is voted on and accepted, bring them on and into an orientation process reviewing the organization’s values, mission, services, and goals. At this time, provide training on a “Culture of Philanthropy” and further reiterate the Board expectations around engagement in development.
Have all Board members sign a Board Member Contract agreeing to uphold this commitment regarding responsibilities and expectation and develop a Board Fund Development Expectation Form that the Board member must sign and date indicating how exactly what they explicitly commit to upholding. Email me for a sample Board Fund Development Expectation Form.
Board Chair reviews Board member’s performance throughout the year to ensure performance meets expectations and outlined contract. If the Board member’s performance does not meet expectations, the Board Chair MUST “thank and release” the Board member. Yes, this MUST happen for the whole process to maintain its credence. You must “thank and attrition” poor performers.
The key to Board engagement is truly about setting and managing Board member’s expectations BEFORE they even join your Board of Directors. This way, they know right up front what is expected of them as they perform their role. What I often hear from client’s Board members, is that “I had no idea that was what I was supposed to be doing.” So, out of fear of the unknown, Board members are hesitant about ever committing to fund development because the importance has never been relayed to them, training never provided, and the expectations never set.
So, while all these great articles can espouse how to engage your Board members in making telephone calls and writing note cards, you can’t even hope for them to begin to participate in your fundraising efforts if they are unsure of what you expect from them. This engagement all starts before they officially come onboard.
Follow the above recommended “How To’s” and watch your Board member engagement in fundraising and your organization soar!
So, maybe you have been operating without a plan up until now. And, that is ok, but it is not strategic, and to meet your goals, you need to have a plan that you follow, monitor, and correct if needed.
Here are some simple instructions on how you can quickly create a development plan if you have been operating without one.
Once you have your gift chart created, it will guide your strategies. Take that gift table and think about how you are going to raise your top gifts.
Then break out all the possible fundraising strategies into key categories. Those key categories may be major donors, individual donors, Board giving, special events, corporation and businesses, private grants, government grants, and earned revenue.
Plan on how many you are going to solicit from each category and how i.e. individual donors you may send out a lapsed donor appeal, an annual renewal appeal, and perhaps a prospective donors appeal using direct mail appeal and maybe phone follow-up. Your complete mail out will be close to 1,000. You can even go a step further and calculate the average gift amount if you are able.
From the numbers that you will be soliciting and the calculated average gift amount determine what your estimated income will be. Know or have any expenses, calculate those and subtract them from your expected income, and you have a net income number.
Then the last key element of this plan is to determine when you will complete each strategy by and who is responsible for the strategy i.e. development staff, executive direct, Board of Directors, etc.
Then implement your plan. But, most importantly use this plan as a monthly monitoring tool. Share it at your Management Staff meetings and with your Development Committee or the Board of Directors. If it appears as if you are “off” on projections, make mid-course corrections and adjust your budget.
But, don’t let this sit on a shelf. Get it in action.
You may want to consider putting all of the key plan information in a spreadsheet to have it all in one place. Or you can use a Word document table. Whatever format you use, start with the gift table, develop the plan, keep this plan in a prominent place, share it and monitor it, and make mid-course corrections.
You can’t operate successfully without a plan in place to drive and focus your effort
Then you will be on your way to reaching your yearly fundraising goals.
I often get asked from my clients, how many touchpoints do you need to give to a donor at a certain level?
And, my answer – it varies.
There is some science to the whole matter. In fact, after I conduct a rating and ranking session, I will combine all of the numbers and come up with a formulaic cultivation quotient. The number of touches estimated for a particular donor’s rating score and ranking.
To me, that is a guide. What we must remember is that each donor is an individual. They have different motivations for giving, different ways that they would like to be recognized, and different things that they are interested in giving to support. And, that means that they all have different cultivation and stewardship needs as well. So, while I could say that the cultivation quotient for Mrs. Smith came out to 20 touches per year, she may not want to be contacted or that involved with the organization.
I advocate that each necessitates a thorough review and a particular strategy custom and unique for them. And, often, it takes a wise fundraiser who has been in conversation with the donor to recognize what is or is not important to them.
Now, I am not advocating that we throw the “moves management” system of relationship-building out. However, what I am recommending instead is that we seriously advocate instead for a very donor-centered process that takes in the uniqueness of each donor into the “moves management” equation when developing strategies for cultivation and stewardship. Let’s not reduce our donors down to formulas, quotients, or tactics. They are people – unique and compassionate!
Best practices. We hear that phrase often. This week, I even read a question asking if “best practices were misleading?”
Are we throwing that phrase around to legitimize our field? Our do we have best practices and what are they?
Well, I contend that the only true best practice is one that is grounded in research. Those are harder to find that than the other so-called “best practices.”
While studying for my Masters Degree in Philanthropy and Fund Development, I learned that philanthropic research has many gaps. However, there are people now making a study of philanthropy and conducting research. Folks like Adrian Sargeant and Jen Shang. More research is needed in our field to support our work.
I can tell you that when research is grounded in actual studies, it works. Eye motion studies, philanthropic psychology, etc., etc.
Recently, I have been working on many appeal letters. And, each time I craft one for the client, I get pushback. Why do you indent paragraphs? Why do you repeat yourself often? Why is there bold and underline? Do we need to include a P.S.? And, can’t the letter just fit on one page? Must we send more than one appeal?
Pushback that is unfounded. And, I push back with research. When the client allows me to use those best practices, the results speak for themselves.
When those results speak for themselves, it is magic. Campaigns get funded, new projects begin, and donors have the opportunity to make a greater impact.
We forget that the fact (and it is a fact) that we are not beggars. Donors want to give. And, to give, they must be asked. Asked in a way that moves them to feel connected to their core beliefs through your organization’s mission.
Know the difference between unfounded best practices and best practices backed by scientific research. Read blogs, stay current with trends, and keep furthering your informal and formal education. When you do, and you practice it, your results will show all the difference.
Fund development does have a researched body of knowledge. Don’t allow anyone to convince you that it does not.
What, wait, we hired that Capital Campaign Consultant to run the campaign, and now you are telling me that I have to do something. No, this can’t be possible.
Yep! It would be unrealistic to think that a capital campaign is left up to the staff to manage. How could they? The staff doesn’t have access to donors and to peer networks? A campaign is not a one, or two, or even three person job. It is even more unrealistic to think that now the capital campaign consultant is in town, no one
needs to do anything period.
So, I know you’re shaking in fear that you might have to ask for money. Well, yes, you may. But, that is not your only role in a capital campaign.
When running a capital campaign, I meet with each of my campaign’s Board of Directors and review the Campaign Plan, goal, schedule, gift chart, and Case for Support. I insist that they vote to approve these primary campaign documents.
And, I also share with them a Board commitment form that I have each and every one of them sign and date.
Board members have many responsibilities to a campaign. Below is my top ten list of capital campaign responsibilities and what I expect them to commit to:
Not taking on any major new volunteer roles for other organizations and consider how to pare down current obligations and be accessible to the campaign.
Review their philanthropic planning for the next year and perhaps beyond, as well as their calendars for those years.
Consider what role they could and would like to play in the campaign. Every board member will be responsible for some part of the campaign and will be engaged in identifying and enlisting campaign committee members.
Review their list of contacts – friends, neighbors, business associates – and carefully consider which of them may be interested in learning more about the organization.
Review and approve the capital campaign plan as recommended by the capital campaign planning committee.
Make a “stretch” gift to the campaign. Board members will all support the Annual Fund campaign each year in addition to supporting the capital campaign. All board members will participate financially in the campaign – to the best of their ability. The board will be the first to give. It is essential that other donors see 100% percent participation of the board. It shows them that the board has the utmost faith, confidence, and enthusiasm for the organization.
Ensure that contribution are used well and according to donor intent.
Read all materials given to them by the organization and the campaign. Members of the community – donors, clients, friends, neighbors, etc. – will turn to the members of the board for guidance and information.
Be an advocate for the organization, to the best of their ability, in the local and the wider community. Help expand the organization’s influence and exposure throughout the community by:
o Securing the sponsorship of a community group to support the campaign.
o Recruiting a speaker, host, or sponsor for a special event.
o Arranging tours of the organization for interested individuals, corporations, foundations or others.
o Hosting an event at their home, place of business or community organization.
o Endorsing a solicitation made by the campaign leaders, either by phone or by letter.
o Setting aside at least 20-30 minutes weekly to plan how to help the organization’s campaign.
o Thanking donors and staying in touch keeping them informed of the project plans.
o Evaluating the success of the campaign to determine strengths, areas of improvement and effectiveness of board policies and decisions.
So, I have a niche somewhat of assisting smaller nonprofits with their capital campaigns.
This niche can be challenging because many of these groups have not had an ongoing, comprehensive fund development program in the past. However, working on these smaller campaigns can also be very satisfying because I can help them use this campaign to begin to develop these efforts. I take those campaigns that a lot of other consultants won’t touch! Many while not having a sustainable donor base to build from, often needs a campaign without doing the preliminary feasibility study. They need the money, and the campaign must go on.
In the process, there is one thing that I have come to realize. The capital campaign steering committee is an absolute must. And, for these smaller groups, it becomes the backbone of their campaign. In forming this committee correctly, the group has the potential to propel the campaign forward. Without this group, it may flounder.
And, this group can’t include just anyone. It needs to include folks that can open doors to others have known networks, and believe in the cause. They hold some of these smaller campaigns in the palm of their hand.
Without having a known, loyal donor base, this committee can introduce the campaign to a wider net of contacts who may be interested in learning more about the case. They can leverage their networks to build relationships with, the can act as ambassadors for this campaign, and they can help, to ultimately build this organization’s future.
Not only that, this group can serve as a “feeder” system to the larger organization’s Board of Directors introducing them to a pool of prospective Board members who have deepened their engagement within the group.
Far too many smaller groups gloss over the importance of the who on this committee. And, by glossing over the who, they are, in essence, glossing over what it takes to be successful in raising money for a capital campaign. Let’s face it, without a loyal donor base, who else and how else are they going to get access to building one.
I purport that a committee group of connected individuals means success. And, don’t settle for anyone who says less because they are just fooling you into believing that you can pull this stuff out of thin air.
This weekend I took a little vacation of sorts. I ran a marathon. The Marine Corps Marathon in Washington, DC. Running a marathon is exhausting, but also, reflective. For you see, you run for 26 miles. That is a long time on your feet – sometimes, three, four, five, six, or even more hours.
Over the course over the weekend, there were approximately 3,000 marines – some of our countries finest armed service men and women. And, as I reflected on my experience, I was reminded of how important it is to take care of our donors. You see, the Marines took care of me while I was running.
They were there to welcome me when I arrived – how often do we welcome donors for their first gifts to us or even their second or third?
They directed me through the maze of marathon logistics – how often do we try to make our experience of being a donor easy for our donors? Do we point them in the right direction? Do we connect them with aspects of the charity that they care deeply?
And, then when I was running, those Marines were out there cheering me on as if I were the hero – how often do we cheer on our donors in their act of giving? How often do we make them feel like the superheroes that they are?
When the going got tough, they were there for me, telling me that I could do – when things get tough for our donors, are we still behind them cheering for them? Perhaps they can’t give us as much, do we abandon them as people? Or do we still treat them the same, cultivating the relationship?
And, at the end of it all – they placed the medal on me and made me feel accomplished – “Congratulations, Maam” – do we treat our donors like they are the real heroes, even though we are doing the actual work?
Interesting questions. I was awed and inspired by this display of honor at the marathon. The Marine’s know how to put on a good race. And, they also know a lot more about how to treat people. There are lessons learned here on how we should go about treating our donors.
Giving is MORE like a marathon than a sprint. It is about cultivating relationships with our donors over weeks, months, years – just like a marathon is about training for days, weeks, months, and years.
So, go out and run the race. And, even though it is your organization that is doing the hard work, take some lessons from the Marines and treat your donors like the superheroes that they are. After all, the Marines are making this sacrifice for our country, just as our donors are making another kind of sacrifice for our organizations.