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Is scarcity stopping you from asking for a major gift?

Do these phrases sound familiar to you?

“I never have enough money!”
“Money goes out faster than it comes in!”
“Money doesn’t grow on trees!”

How often have we heard these phrases growing up?  Well, if you were like me, probably a lot.  As a child, these were the Scarcity mindset in major giftsmessages that I subconsciously learned about money, and they helped to develop my now adult relationship with it.

Just this week, I led a workshop on asking for money.  As part of the icebreaker exercise, I asked attendees to share with me some of their greatest fears about fundraising.  And, fear after fear centered around scarcity.  In fact, many participants commented that they grew up hearing the very same phrases above.

Stop and think about what you believe about money.  Are your beliefs limiting you in your work?  Do you have a scarcity mindset?

Have you ever found yourself saying these types of things?

“There are only so many donors to go around!”
“Donors only have so much money to give!”
“We already asked our donors once this year; we can’t ask again!”

Are we placing our beliefs on our donors?  Are we making assumptions for our donors?  Are we self-sabotaging our work?  Are we limiting our role in the work that we do?  Are we focusing our efforts and time on things such as events that will take us out of the context of asking?

To be truly effective fundraisers, we all need to dig deep and look at our views and those beliefs of scarcity that may be holding you back.   Are they self-limiting and if so how can you work to create an abundance mindset?  We don’t want scarcity from preventing our life-changing work from happening both for our donors and for our missions. So, it is critical that you identify your mindset and work to change it.  Major gifts start with you.  Get that part of the relationship right first.

Break the scarcity mindset before you ask for a major gift.

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Let’s talk about YOU, not me!

Research has shown that people like to talk about themselves. And, there is a reason why. It stimulates areas of the brain. It makes them physically feel good to talk about themselves – stimulating the same areas in the brain that sex, cocaine, and good food does. And, we all know what good food does for us!

What scientists found is that “Activation of this part of the brain when discussing the self-suggests that self-Let's talk about YOU!disclosure, like other more traditionally recognized stimuli, may be inherently pleasurable—and that people may be motivated to talk about themselves more than other topics (no matter how interesting or important these non-self topics may be).”

Talking about oneself makes you likeable, builds trust and social bonds, and creates overall happiness. Talking about oneself also leads to the feeling of teamwork. So when we get folks talking about themselves, areas of their brains start to fire and create a pleasurable experience.

This fact all indicates to the types of conversations that we should be having with our donors. Discussions not about our organizations or what we are doing or are interested in, they should be aimed at getting the donor to talk about themselves. It makes them feel good, and it starts that cycle of self-sharing where they feel as if they want to share more.

While we all have been told to find out more about what makes our donors tick, in this case, I urge you to do that and more. Find out what makes them “tick” and help them feel good about meeting with you, the relationship that is developing, and ultimately your organization! People like to talk about themselves because it feels good. So, get people feeling good and happy, and you will build trust and likeability. Go ahead, do it.

So, how can we engage donors in self-talk? Start by asking them what their interests are:

  • What personally excites them?
  • What legacy are they hoping to leave in the world?
  • Why does this cause matter to them?
  • What do they enjoying doing in their free time?
  • What enrages them most about what is happening in the world today?
  • What is one thing on their bucket list?
  • What keeps them up at night?
  • How would they like to make a difference?
  • What has been their greatest life achievement?
  • What book have they read that has been most thought provoking?
  • Etc., etc., etc.

Ask them to share about their:

  • Family
  • Hobbies
  • Job
  • Pets
  • Personal mission
  • Personal values
  • Etc., etc., etc.

Use these conversation starters to get your donor to begin talking about themselves and sharing more about what interests them. It is your job to listen. So rather than think about what you’re going to say before going into a donor meeting. Think about what questions you can ask that will stimulate this self-sharing and ultimately lead the donor to share more while feeling good. And, we all know what happens when you make a donor feel good!

For more reading pleasure:

http://www.scientificamerican.com/article/the-neuroscience-of-everybody-favorite-topic-themselves/

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What does your body language say about you in fundraising?

Recently, I had some conversations with a former co-worker. Her outlook and atmosphere had changed so dramatically that I had pause and ask, what is different. Well, she set me on the course of all of her “research” on the importance of human body language. And, I realized that there was profound applicability for me personally, but also for me professionally as a fund development professional, particularly as it applied to major gifts work.

So, I set out to view some of these suggested videos on research from my friend. And, I wanted to put some ideas in practice.

The first important concept I learned about is “setting your intention.” When I Googled setting an intention, I came up with many entries. The practice of doing so has deep historical and religious roots. However, it is about stating what you want the outcome to be for a given encounter. The second concepts that I am learning about are the importance of non-verbal body language and how to “command”

body-language-groupyour territory. Use facial gestures that indicate happiness, open up your chest area, use hands to illustrate your words, etc.

With an upcoming major gift visit, I decided to put some of these concepts into practice.

For this particular major gift solicitation, I knew that there was an ideal gift in mind. So, before I arrived at the meeting, I had decided that I was going to set the intention. The intention of this particular meeting was to obtain a gift of a pre-determined amount. I also made a conscious effort to use some of these body language techniques. Sitting with shoulders back, feet planted, a smile on my face, conversations “easers,” and the most important topic, using hand gestures.

What was the result? Well, evidently I felt more confident and at ease. I held the attention of those I were meeting. They and I were both at ease with each other. And, most important when negotiation started regarding the gift amount, that intention was there, and it propelled me forward. So when an objection popped up, I found myself more purposeful regarding setting the donor’s heights higher than what they were even thinking.

The question remains will the gift come in at that amount? Truly, it is up to the donor to decide, and they are going to take that time to do so. However, what was most important is that these “new” techniques gave me greater confidence to be able to ask for my intention with much greater ease. Subconsciously set, the intention moved me forward in a way that I had not been before.

So, I see where my former co-worker is getting her energy. There is something to this science of body language. Others have spent work studying the importance of what we say and the emotions in which we say it in fund development, but I have seen little on the non-verbal study of people and their behaviors and how we interact. I suppose if we are involved in major or individual gift work that it would behoove us to learn more about these techniques for ourselves and to study what they mean in others.

Off I go to watch more TED Talks. And, you need to keep track of this gent…Mark Bowden, the leading expert on body language!

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Ask your donors key questions, and fundraising becomes simple!

Let’s get rid of our printed newsletter and just send an e-newsletter.

Our donors don’t like personal solicitations.

We are only going to send out one appeal a year because we don’t want to send too much mail to our donors.

I hear statements like this all the time.  And, I wonder if we are making decisions for our donors.  I know that this goes for some groups.

Donor survey toolWhen I surmise this is the case, I often ask, “Have you asked your donors?”  And, the response is “No, how do you ask them?”

Well, quite simply you meet with them, or you call them on the telephone, and you ask them questions.  Questions like, “how much mail would you like from us?” or ” how do you prefer to be called upon to make a gift to us?”  or even, “how do you prefer to get information from us?”

There are other ways to ask donors what they prefer.

Try a donor survey.  You may design a questionnaire that asks things such as:

  • Why does he/she support the organization?”
  • Which programs, projects, or issues you address are the most important to him/her?
  • Is your organization one of his/her top philanthropic priorities?
  • Do he/she actively use email and do does he/she prefer to get emails from you?
  • Is he/she planning to remember your organization in his/her estate plans?
  • How old is he/she (hint ask for a birthday or date range)?
  • Etc., etc., etc.

Before mailing to your donors, be sure to test the survey and solicit feedback from other folks like your colleagues, friends, or family members, and include an envelope, a personalized letter, a brochure, and a self-addressed reply envelope as part of a survey package.

Then send this package out and be sure to analyze and document these returns. Don’t just let them pile up.

Then and only then will you be able to understand truly who your donors are, what motivates them to give to you, and what decisions you should make regarding your strategy, approach, and appropriate communications.

For instance, after you analyze and track the returned information, you can then segment your donors and mail materials that interest them.

But, the adage of “you don’t know until you ask” is such a critical element of driving all that you do in fund development.

We surely cannot begin to make assumptions for our donors based on our thoughts, interests, and profiling.

 

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What is your aversion to asking others for money?

I enjoy asking for gifts.  I like to connect a donor with a mission and see magic happen.  Indeed, when you ask one for a gift, the giver gives.

When I have broached this topic as of late, I see faces cringe and heads nod, “no.”  The body language says it all.  But, what is the aversion?  It has to do with how we value money and the beliefs and, ultimately, the power that money has over us.  Some feel awkward. Some even feel a little embarrassed about it.  Some ask “who will give us money?” and others ask “how will we ask them?”Beliefs around asking for money

We need to look carefully at ourselves.  What is our relationship to money?  We will never be able to move forward to ask for money if we do not know how we relate to it ourselves.

How important is money in our lives?  What is your past around money?  How do we spend the money we have?  Where are we giving our money?  How does having money affect our self-esteem and self-worth?

Money is about security and that is surely about a very vulnerable place in our lives.

Until you examine your beliefs and thoughts are around money, you will be adverse to ask others.

We must realize, that we are helping others by our asking.  We are enabling them to do great work for our clients, our community, and our world.

But, this must begin with you.  Take time to reflect on truly what money means to you.  And, that will prepare you to embrace asking others, and allowing for changed and transformed lives.

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Why do good grant applications fail?

Why good grant applications fail.

Yes, every grant you write will not be funded.  That is a reality.  I know, you and I both wish that they were, but that’s not always the case.

According to The Fund Raising School at the Indiana University Center on Philanthropy, these are some concrete reasons why foundations decline funding applications:

  • Failure of the applicant to follow foundation guidelines.
  • The project does not strike the reviewer as significant; statement of the project does not interest him or her.statement of the project does not interest him or her.
  • The applicant failed to include other prospective client groups in the planning of project goals.
  • The proposal is poorly written and hard to understand.
  • Proposal objectives do not meet goals of funding source.
  • Proposal budget is not within the range of funding available.
  • The funding source does not have confidence that the organization submitting the proposal can carry out proposed application activities.
  • Project objectives are too ambitious in scope
  • Proposal writer did not follow guidelines provided by the funding agency.
  • Evidence that the project can sustain itself beyond the life of the grant is insufficient.
  • Evaluation procedure is inadequate.

While it seems like this is enough to say it is not worth preparing proposals, it is.  Your organization must put in the time to research and adhere to the guidelines of each funding source.  Doing so will result in a much higher funding rate.  It behooves those who cannot do the proper research, or is unable to craft a detailed proposal, to outsource a particular proposal, or all of their grant writing needs to a professional.

A professional has the expertise to understand foundation priority areas, and can craft funding applications meeting the foundation’s requirements.  Also, professionals can propose collaborative partnerships that build confidence with funding sources increasing the rate of foundation success.

For more information about the grant writing services that I offer, check out a list of select winning proposals that I have written throughout my career.

Here are some more tips on preparing your proposal before it even goes out the door!

 

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How does your fundraising ROI measure up?

How are you looking at your fundraising rate of return?

It is critical that you develop a variety of ways to measure your performance and report theFundraising Effectivenessse results to the board.

In doing so, you are ensuring appropriate stewardship of your resources through demonstrating that your fundraising is efficient and effective.  While it does cost money to raise funds, as professionals, we need to be assured that we aren’t spending excessive amounts to do so.  While our board should be looking at these types of benchmarks, we can be sure that our donors and public is.  Take a look at the recent issue surrounding the Wounded Warriors national charity.

It is important that we do invest in fundraising and administrative costs in these functions appropriately, even though there is much criticism for doing so.

What constitutes a reasonable amount?

James Greenfield wrote several important books several years ago, and I regularly still find myself turning to his outline on how to best measure the costs of fundraising.  One book, in particular, has been especially valuable.  It is titled, Fundraising Cost Effectiveness:  A Self-Assessment Workbook and was written in 1996.  He highly recommends the importance of benchmarking to other similar organizations in the sector both aggregate and on an individual fundraising level.  What are best practice and industry standards and how does your organization compare?

It is only through this analysis that we can say that our fundraising is within acceptable boundaries of efficiency.

As a fundraising consultant, I spend lots of time auditing organization’s fundraising effectiveness through auditing their development function comparing it to industry standards.

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Plan before you prepare your next proposal.

What are the first steps to your grant planning?

First you need to document your funding priorities with custom tailored cases for supports that can be used to match up to a funders priority.Get your grants system in order before you apply

Once you have outlined your needs, the next steps are to do some detailed research to identify potential funding sources.  It is best to document a foundation schedule that includes the foundation’s priority areas, critical deadlines, and application process, among other items.  There are some helpful grant research tools available including The Foundation Center and the Foundation Directory Online.  While this is a subscription based software, you can check your local library or community foundation for free public access.

Then, you can then move to contact the potential funding sources and cultivate relationships.  Yes, even the grant and foundation process is about cultivating and stewarding relationships.  It’s not just about submitting proposals and then wishing for the best.

Now, write your application.  Answer all the questions as needed – nothing more, nothing less.  Then hit submit, and wait, often a few months.  I should add; you can submit many applications now online.  While that does make the process somewhat easier than in years past, it has its complexities with character limits, some background materials to submit, etc.

The proposal awarded?  Congratulations!  Be sure that you can administer this grant before you get the award or even apply.  You need to keep a detailed compliance record to be able to report back to the foundation promptly how the organization used the gift and the outcomes obtained.  Be sure to keep close attention to the reporting deadlines and ensure that reports get submitted.  And, most important determine how you are going to acknowledge and thank this foundation for its gift.

One pet peeve of mine, inadequate tracking systems.  More than once, I have been the staff person coming into a new office and finding out that the organization did not submit a report in the past.  Imagine my dismay, when I need to figure out how the organization used the grant money three, four, or even five years earlier.  Don’t let this happen in your organization.  Report timely and ensure proper documentation through an organized file tracking system both electronically and paper.

If you didn’t get funded, don’t dismay.  That happens more than you think.  Take this as an opportunity to reach out to the funding source to determine what the reasons for this decision are to be able to refine your proposal moving forward and to determine if there is still a possibility of perhaps receiving funding from this foundation in the future.  Maybe the proposal wasn’t meeting a particular priority area of the foundation.  Perhaps another project would have more suitable.  Or maybe the foundation just wasn’t a good match.

Also, send an acknowledgment letter to the foundation even if you didn’t get a grant.  Thank them for their time and consideration, and they will be sure to remember your organization in the future.  Don’t hesitate to keep this foundation up-to-date on your programs and progress.  Cultivation continues even if you didn’t get this award.

So, just like all aspects of development, grant writing is about doing appropriate research, building relationships, and then making the ask.  And, of course, don’t forget the stewardship in following up, reporting, and keep them apprised of your progress.

Development Consulting Solutions has a strong grant writing track record.  Check out a sampling of career awarded grants, and then email us to book your free consultation.

 

 

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I have a motive, and it is a bequest.

Yes, I have a motive, and it is a bequest. As a young woman with no children, I have already created my estate plans. Yes, I have. And while those I love will be taken care of as they should. There is a time after they are gone when my assets held in trust will be given to a charity which will receive the bulk of my estate.

You may ask, why?My motive for a bequest

Well, undoubtedly motives for donors are all different.  Some decide to leave money in their estate to avoid taxes, some choose to leave money to obtain recognition.   There is a whole host of other important motivations. For me, it is because I want to give to a charity which has given so very much to me. And, this gift that I make on my death will be impossible for me to make during my life.

We all tend to live on a set amount of disposable income.  While I have had saved and invested, surely I am not willing to take a chance and spend down a considerable amount of my assets while I may still need them.  I still have a long life yet to live.  However, after my death, who cares!  At that point, I will be able to make the single largest gift that I will ever make.  For me, that is enough.  More than I could do while alive.

I should add that at one point, I had a significant number of charities in my estate to benefit from my death.  And, that is where stewardship comes into play.  For you see, some charities are so intent on “chasing” the big donors that they forget about those little folks making small gifts out of their disposable income.  What they fail to think about is that for some, this giving may just be the tip of the iceberg. Since estate gifts are surely revocable, all donors whether large or small should be stewarded in some way appropriate to each.

I can’t tell you how many times during my career that an organization  I was working with received a bequest from a donor who may have made one $10 or $25 gift during their lifetime.

I have thought long and hard about those local charities and have narrowed it down to one – one that is extremely near and dear to my heart and one that treats me like a person when I visit, call, or make a gift.

I have a motive, and it is a bequest.

 

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A great time for bequests, but are you ready?

Data from the U.S. Census Bureau indicate that the number of people dying in the United States will double in the next forty years. WOW!

Hard to read, but surely reality. And, sometimes reality is stark.

Planned GivingThe Baby Boomers will soon be facing retirement, old age, and eventually death. And, Baby Boomers will have more wealth to leave behind – significantly more than previous generations.

Researchers have been hard at work calculating the details behind this transfer of wealth. Their findings? They estimate that approximately $41 trillion will transfer between 1998 and 2052 from a predicted eighty-eight million estates. Of that $41 trillion, it is estimated that $6 trillion will transfer to charity.

However, as large as these statistics are, only around 18% of the nation’s wealthiest individuals presently leave a gift to charity in their will. While data is insufficient, it is estimated that a small percentage leave a gift in their will.

So, are nonprofits so focused on their annual operating support that they are failing to include planned giving as part of their fundraising strategy? Are we just not asking enough? I would garner to say this is very accurate. Most of the organizations that I work with are so focused on meeting the day-to-day operational needs of the organization that they cannot even think beyond into the future. Or if they can think about the future, they just don’t want to talk about death. Or they fear that they will take away from their annual support. Or they are just impatient, and can’t wait for planned gifts to mature because the income won’t be forthcoming for many years. Or perhaps they have such high expectations within their departments to produce that their focus is more on immediate returns and not for the long haul.

We keep talking about this enormous transfer of wealth, but what are we doing as fundraisers to begin the conversations. Conversations in our organizations that confront current expectations by our superiors to raise money for today. Or how we as fundraisers don’t want to grapple with sensitive topics as death with our donors. Or because we as organizations need the money today to keep the doors open for tomorrow. Or maybe because we don’t have enough knowledge about planned giving and what it is, so we just don’t want to bring up the subject.

All organizations both large and small absolutely must begin thinking about legacy giving.

I know one thing for certain, these statistics point to us as fundraisers to do a better job. And, so the question is, what are you doing to do that better job?

 

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We need money now! An ethical decision.

This week, I read a post by the very insightful Veritus Group. In the post, they asked,”When you think of your donor, do you first think of them as a source of cash – as a way to reach the goals you have set?”

This question indeed touched a cord in me. How many organization believe that donors are ATMs. We go to them; we ask them for a certain amount of money, we get the gift, and we get a receipt.Ethics of fundraising

I have worked for organizations that think donors are partners. How refreshing. And, then I have worked for organizations, that think donors are money as in the “We need money now!” donor.

I have a difficult time hearing donors referred to in this way. I can’t conceivably fathom such talk about another human being, mainly relating to them as if they were a transaction and not a living, breathing person with feelings, and beliefs, and values.

Over my career, donors have personally “cared” for me and my well-being. When I have been traveling, they have provided me with dinner. We I was in a new town, they ensured that I got home safely. When I was sick, they called. We built relationships. We were people connecting for a higher purpose. The “Show me the money attitude” just doesn’t work for me.

Do you view your donors as mere money machines? Do you love your donors just as much as they love your mission? Do you believe that donors should be treated with worth and dignity?

Ethically, I asked myself, would I as a donor want to be thought of or treated in such a transactional way? I couldn’t answer yes.

We are in a noble profession. We transform communities; ourselves, and the donor through the process of fund development. That is what I believe in about what I do.

And, ethically, I can’t operate otherwise.

Donors give to us because we have the highest ethical standards to do what is right. Trust is the basis of all we make possible.

Perhaps we need to revisit the “Donor Bill of Rights” and ensure that there is a clause in there about “to be treated as I would want to be treated by another, not as a machine, but as a person who has beliefs in and the capacity to support a mission.”

As a fundraiser, what I want remembrance for is my success on the job, both monetarily and ethically.

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When your donor loves you way too much.

For many donors who hold great wealth, they sometimes want to do more than just give. In fact, they want to shape directly rather than just support a charitable cause. This term is often called, “hyperagency.”

In most cases, that is fine. In fact, it is very welcomed. Paul Shervish, Director of the Center on Wealth and Philanthropy at Boston College, noted that hyperagency is “a distinctive characteristic of maWealth donors and mission creepjor giving because such donors are capable of establishing the institutional framework in which they and others live.” They want to produce rather than support.

Not often, but in some cases, the donor upon giving an enormous gift expects the organization to do what he or she wishes, changing the whole agenda of the organization. They want to determine what happens and when programmatically.

To me, this can become dangerous territory. For you see, just because someone has extensive wealth and wants to give it us, does not mean that we have to entertain “mission creep.” Our organizations have been founded to serve a community through a particular mission. It is the obligation of the organization and its Board of Directors to ensure the organization’s programs, and mission continues to be relevant to the community that it serves.

We often see “mission drift” in cases where organizations “chase” foundation funding just because it is available and whether or not it meets the orgazation’s mission. As a result, programs develop that are not mission consistent, and the organization begins to take on areas that they do not have a specialty.

A case in point, in 1907, a $3 million bequest left to Swarthmore College met this description: It was made conditional on the school ceasing all participation in intercollegiate sports. (Though tempted by the much-needed funds, Swarthmore turned the gift down.)

So, are you tempted to keep the gift or would you turn it down?

Well, if the gift is going to subject your organization to terms it couldn’t possibly meet or that are not consistent with the core mission, then yes, I say it needs to be turned down. Turning down a gift is a rather difficult decision. But, you must realize that you are bound to the donors’ wishes once you accept it. If you can’t abide by the terms whether impractical, unethical, or for other reasons, then you just need to say “no!”

The dilemma mentioned above points to the importance of having a Gift Acceptance Policy in place. Yes, I know these policies are so mundane, and I know you don’t have the time to create them, but, when you start seeking major gifts, you just may come across a situation like this. Even the smallest organizations have found themselves with donors wishing to make contributions that have binding strings attached. And, when you are small, it becomes especially difficult to say no to a massive infusion of cash.

This situation is more of an ethical and moral question. But surely, the ethics involved in fundraising must be a topic that your organization discusses at a strategic level (meaning Board), and Gift Acceptance Policies provide a basis for that discussion.

So, you don’t always have to say “yes” to a donor who loves you too much. In fact, sometimes, it is best to say no, if it means you won’t hold true to your core mission and the community that you are bound to serve.

What is your take on this ethical dilemma?

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