We are fast approaching the end of the calendar year and there are certain fundraising methods that are particularly important at this time of year for any nonprofit to consider conducting. Any one or more can be done for a year end boost to your organization's bottom line.
__ Year End Appeal - The year end appeal is usually similar to the annual appeal except the written and mailed request sent to everyone who donated a certain amount and above perhaps for the past two years (such as maybe $25 and above), usually lists all of the organization's accomplishments and accolades for the year clearly providing as well (perhaps in two separate pie charts or other quick but informative representation) all of the organization's spending and income, and stating what the goals are for the coming new year. Usually, too, it is pointed out (gently) that a contribution to your group at the end of this year will provide an equivalent tax deduction (to the extent that the law allows) for the donor when they file their taxes for this year.
__ Major Donor Year End Appeal - Is a specific appeal, exactly like the Year End Appeal described above, except any major donor request is always conducted face to face with the nonprofit's major donors (again keeping in mind that the major donor is often eager to donate at the end of a calendar year to benefit their tax deductions and can also afford to give major assets such as land, stock, bonds, etc. and especially give on this magnitude at the end of the year for the tax break).
__ Grant Donors Looking to Spend Down The Rest of This Year's Giving Budget - By law foundations are required to donate a specific percentage of their total assets each year to remain in good standing with the IRS and other government entities that oversee their operations. Sometimes a given grant donor will find, at the end of their fiscal year (which can fall, of course, on the end of the calendar year for some grant donors) that they have money left to give in order to meet either this oversight rule or to meet the giving budget for the year. Either way, it never hurts to research grant donors, more likely to give to your specific nonprofit (see the link in this sentence to know how to determine which grant donors they are) and see if they happen to be needing to spend down this year (as it's the end of the calendar year).
__ Governments Looking to Spend Down The Rest of This Year's Giving Budget - Like the foundations described, above, (and though the economy is down still) some government agencies or programs gave budgets this year and some of those may have money to give yet in order to meet their giving goal for this year. As suggested above, if their is a federal, state, local, or Tribal, etc. government agency that your organization knows has or would support your nonprofit, it doesn't hurt to research whether their office is looking to spending down some last unused money marked for grant donations.
__ Request Outstanding or Due Memberships, Pledges, and Other Final Quarter Donation Balances- Often, like a for-profit business, nonprofits can run their Accounts Receivable for their donations (or expected income report) for this year and see which donors (sponsors, in kind donors, etc. included along with individual, business, and foundation donors) have yet to give in full for the year if they promised or pledged a certain amount before 2013. Requests all of these outstanding amounts.
__ Board of Director Annual Contributions - Often nonprofits raise money, annually, through annual leadership contributions which is a specific often larger amount that each board member promises to either raise or donate personally (or give through a combination of the two). If your organization conducts Board Contributions, be sure to request any outstanding remaining balances from any board members still needing to fulfill their contribution amount for this year.
__ Employee Giving Programs - Many corporations provide their employees with the choice to give to any one (or more) of a long list of area or related nonprofits. If, for instance, your organization operates in Dallas, Texas you might want to find out how your organization can get onto Hewlett Packard's Corporate Giving List (for their employees to select to give to your nonprofit) over the coming year - usually through a monthly (or other regular incremental) contribution deducted (pre-tax for the donor employee) from their pay check. Another example is, if your nonprofit operates in Seattle, you could contact Microsoft's Human Resources offices and find out how to get onto their Employee Giving list for 2013 and on. Always be sure, when requesting/receiving volunteer time or donations from any employer's employees whether the employer matches the contribution. Often they do but if you don't ask, you don't know to request the matching contribution from the employer, once their employee's donation or volunteer time is given.
__ Corporate Used Items Warehouse Donations - Some corporations warehouse used and old office furniture, kitchen appliances, office appliances, etc. that they intend to donate (for the community goodwill and tax benefits to their company). Some sell these items at very low prices. If your organization is needing new equipment or furniture, for your office, contact a local large corporation and ask if they have such a giving program.
__ Thank Supporters - This is a 'no brainer'. Always make it a point to thank volunteers, partners, and donors without asking them for anything at least four times a year (if not more often, such as thank the donor events). As we are winding down this year, in all of your organization's year end publications remember the community that allows your organization to achieve its mission goal and the goals of its programs: the community partners, donors, and volunteers who without your organization could not operate, let alone succeed. In your nonprofit's final newsletter, blog post, Tweet, Annual Report for the year, etc. thank them each and all. Acknowledge the importance of the partnership you have with them. State that your nonprofit and its leadership knows that this ongoing relationship with them is how your organization's successes are achieved.
Hiển thị các bài đăng có nhãn major donors. Hiển thị tất cả bài đăng
Hiển thị các bài đăng có nhãn major donors. Hiển thị tất cả bài đăng
Chủ Nhật, 18 tháng 11, 2012
Chủ Nhật, 12 tháng 12, 2010
How To Make Requesting a Donation Face to Face From A Major Donor Easier
A major donor campaign is a fundraising method where nonprofits develop existing or new donors that consistently give at larger single donation increments compared to the average individual donor. Usually the campaign is planned and operated by all fundraising staff and volunteers, but the actual work of developing major donors is coordinated by the fundraising or development staff (behind the scenes such as receiving contribution and responding in a timely manner with a thank you) and executives and board members developing these donors personally. And yes, asking anyone for money for anything, including a nonprofit, can be daunting, awkward, and even something one works to avoid having to do. So, let me be clear, on average, of all nonprofits' volunteers and staff in the world, I am certain that there are fewer numbers of executive directors and board members who are comfortable with the idea of asking people for large amounts of money. But (and this is the key) once those same executives and board members are shown how it's done (so that the major donor campaign can be fruitful and successful), once they are educated, trained, and given the opportunity to rehearse; the anxiety level goes way down, as is true of anything new.
In my post, Getting Major Donors to Contribute Large Regular Donations Can Stabilize Cash Flow I explain what a major donor campaign looks like, how one works, and how your nonprofit can begin one. In that post, I give you the step by step instructions to get one going. That post is a good primer or introduction to this post.
Here I am listing my top pieces of advice for a strong and successful major donor campaign:
__ All fundraising, no matter what type of fundraising method (i.e. grant writing, major donor campaign, bequests campaign, capital campaign) is about a given nonprofit initiating, developing, and maintaining relationships with current and potentially new donors. Every nonprofit should see that direct relationships with its donors as its strongest ability (and potential) to raise money. Re-read that last sentence. If a nonprofit farms out most or all of its fundraising, or receives the benefit of another entity, such as a local business, raising funds for it - it may be missing a crucial component to that nonprofit's own ability to raise more, over time, and to grow the amount raised annually, and frankly, it probably is. The idea that 'relationships are everything' might sound trite or cliche' but it is neither. On the other hand, no one should be overdoing any interactions between the nonprofit and its donors, either. The happy medium has been found. The tried, tested, determined donor care or donor development is how relationships are made and maintained, and then re-done and honed by other nonprofits, and repeated successfully by all kinds of nonprofits all over the world. These come to be professional nonprofit best practices. How should a donor be treated so that a relationship is maintained between the nonprofit and them but so that there isn't an undo amount of resources used by the nonprofit to do so, and also so that the donor is comfortable and even appreciative, and the nonprofit receives the benefit of ongoing support from that donor (no small feats)? Also, what is the method or how is it conducted? I explain what and how in my post, Your Nonprofit Needs Cash Flow. That Means Your Nonprofit Needs Your Individual Donors. Take Great Care of Each One. It, other posts in this blog, and other excellent nonprofit resources also explain the professional nonprofit donor development best practices that I am referring to.
__ It is easiest to ask others for donations (of any increment but especially larger single donations) when you, "the asker", really believe in the nonprofit, the work its doing, its team, its future capabilities, and that the organization's work will provide for the community a yet undiscovered solution that will produce real and needed outcomes for the organization's beneficiaries. If the organization is really doing well at what it does and is the organization to provide real solutions it's easiest to ask anyone to support it, including asking a major donor, in a face to face meeting.
__ Remember, when asking a donor for a donation, that you are asking a question and the person being asked can always say 'no'. 'No' is not the end of the world, or the end of the relationship. Rather, it is one's right and if after asking for a donation the nonprofit is told 'no', it should simply be taken as such. How the donor indicates they wish to proceed should be respected and then follow through can be made with them, if appropriate, again, at a later time. Remembering this takes pressure off the asker, because it's not a nonprofit's leader's job to coerce, pull out of thin air, or beg a donation out of anyone (ever). As is stated in the post, "Your Nonprofit Needs..." mentioned above, a major donor is one who demonstrates an interest in the organization and its work. The asker relates why the donor's larger increment investment is needed, why this particular organization is a sound investment and how it will achieve successes with the larger donation. This information (in any donation request) may or may not be compelling to the donor, but the nonprofit leader, in a major donor ask, has done their job if they have related truthful and compelling facts. Leaving the discussion (and relationship) so that the donor is comfortable, informed, thanked, and has been asked are the ultimate goals. We all know that sometimes a person has a reason why they can not give right then (or maybe just not give at that increment right then) and those reasons come and go. This is O.K. The key is to engage any and all donors in such a manner that they give now and again later, but if they can't give now - treat them well so that they might give again later. This is all any fundraiser can do.
__ Being informed about how to go about a face to face larger increment donation request, properly, and then having rehearsed it each help. Having a well researched perspective donor is helpful, too. The fundraising department should arm those who are going to meet with potential major donors (i.e. the executive director and board members) with factual and on point set of talking points for the nonprofit representative to have and learn, prior to the meeting, for each perspective major donor. No one's privacy should be invaded but there is a good amount of information that can be gleaned, for instance, from a nonprofit's own donations records about most donors (i.e. they prefer to give to this campaign, have volunteered in the past (or not), and have a relative who was assisted by this nonprofit (or not). Once a nonprofit's representative is trained, rehearsed, and informed for each individual they are going to talk with - they feel more at ease.
__ Nowhere is it written that all direct interactions with a potential donor (of any kind) must be one on one. Do whatever makes everyone involved (e.g. the nonprofit's representatives and the potential donor) comfortable! If everyone would rather meet during a jog around the local park instead of for a lunch, for instance, - do that. If the potential donor wishes to include a friend in the meeting - fine. Why not if that makes them comfortable? If the nonprofit representative would rather do the ask with another board member present (in a team) that's fine, too, as long as the potential donor is informed and is fine with it (and they usually are). Take the pressure off wherever and however you can for everyone involved in this process!
__ Know how much you are going to ask each individual potential donor for (based on some real recent giving history and their indicated/demonstrated capability to give in larger increments). This amount may vary individual major donor to individual major donor and probably will. For instance, the amount that your organization would ask Bill and Melinda Gates for, in a face to face ask, is likely a different amount from how much you would ask a local business owner for (and one donor and their potential to give is not more important than the other. Just having supporters who give is the ultimate goal). Having said this - you aren't out to get as much as you can beyond reason. If the nonprofit is running a capital campaign and there is a specific amount still un-raised and needed - of course attempt to raise it - but raise it from prospective, if planned, major donors who are really capable of giving at that level and have demonstrated an interest in the organization. If the amount is very large, split the amount into lesser amounts and ask for specific increments (as needed) based, again, on the individual donor's abilities to give.
__ Know what you are asking for the money from them for. If you go into an ask and can't demonstrate why the money is needed and where the money will be spent, why ask for anything at all? Donors are not money repositories but rather investors or partners who are interested (for usually personal reasons) in the nonprofit's cause or issue, and are invested in the organization because they want to see real, successful, and needed (but yet unmet) outcomes. Don't abuse their interest. Be prepared (but not overly so) to demonstrate (in a compelling fashion) how and why the donation is needed. Make a clear case. As already stated, being armed with compelling information makes asking for a donation easier for everyone involved.
__ Be grateful. If they've given before, begin by thanking them and acknowledging their prior support. If they haven't given to your organization before but are notoriously active in philanthropy or volunteerism in the local community, note that, and thank them (even if it wasn't for your organization - they can be thanked for their concern and involvement in your community). If they do donate, of course thank them, and follow their wishes if they request anonymity. Engaging anyone by first thanking them lessens the level of every one's anxiety.
__ Always follow through in a professional and timely manner. If you meet with a potential donor and they request more information, get it to them. If they request more time to consider the ask, grant them that. If they are not ready to give now, but perhaps in six months - thank them and then contact them in six months. Always grant anyone asked for a donation their rights. This is how a potential donor feels enabled even if they have not donated to your specific organization, yet. It is a good way to begin or maintain a relationship even if the first donation has not yet been given. This leaves everyone in the relationship feeling respected, heard, welcome, and enabled.
__ Rehearse. It may seem tedious or even unnecessary but the best practices bare out. It is proven that leaders who practice and rehearse prior to major donor asks do better. Isn't it always the case with anything that if you practice you do better? It's true with major donation requests, too.
In my post, Getting Major Donors to Contribute Large Regular Donations Can Stabilize Cash Flow I explain what a major donor campaign looks like, how one works, and how your nonprofit can begin one. In that post, I give you the step by step instructions to get one going. That post is a good primer or introduction to this post.
Here I am listing my top pieces of advice for a strong and successful major donor campaign:
__ All fundraising, no matter what type of fundraising method (i.e. grant writing, major donor campaign, bequests campaign, capital campaign) is about a given nonprofit initiating, developing, and maintaining relationships with current and potentially new donors. Every nonprofit should see that direct relationships with its donors as its strongest ability (and potential) to raise money. Re-read that last sentence. If a nonprofit farms out most or all of its fundraising, or receives the benefit of another entity, such as a local business, raising funds for it - it may be missing a crucial component to that nonprofit's own ability to raise more, over time, and to grow the amount raised annually, and frankly, it probably is. The idea that 'relationships are everything' might sound trite or cliche' but it is neither. On the other hand, no one should be overdoing any interactions between the nonprofit and its donors, either. The happy medium has been found. The tried, tested, determined donor care or donor development is how relationships are made and maintained, and then re-done and honed by other nonprofits, and repeated successfully by all kinds of nonprofits all over the world. These come to be professional nonprofit best practices. How should a donor be treated so that a relationship is maintained between the nonprofit and them but so that there isn't an undo amount of resources used by the nonprofit to do so, and also so that the donor is comfortable and even appreciative, and the nonprofit receives the benefit of ongoing support from that donor (no small feats)? Also, what is the method or how is it conducted? I explain what and how in my post, Your Nonprofit Needs Cash Flow. That Means Your Nonprofit Needs Your Individual Donors. Take Great Care of Each One. It, other posts in this blog, and other excellent nonprofit resources also explain the professional nonprofit donor development best practices that I am referring to.
__ It is easiest to ask others for donations (of any increment but especially larger single donations) when you, "the asker", really believe in the nonprofit, the work its doing, its team, its future capabilities, and that the organization's work will provide for the community a yet undiscovered solution that will produce real and needed outcomes for the organization's beneficiaries. If the organization is really doing well at what it does and is the organization to provide real solutions it's easiest to ask anyone to support it, including asking a major donor, in a face to face meeting.
__ Remember, when asking a donor for a donation, that you are asking a question and the person being asked can always say 'no'. 'No' is not the end of the world, or the end of the relationship. Rather, it is one's right and if after asking for a donation the nonprofit is told 'no', it should simply be taken as such. How the donor indicates they wish to proceed should be respected and then follow through can be made with them, if appropriate, again, at a later time. Remembering this takes pressure off the asker, because it's not a nonprofit's leader's job to coerce, pull out of thin air, or beg a donation out of anyone (ever). As is stated in the post, "Your Nonprofit Needs..." mentioned above, a major donor is one who demonstrates an interest in the organization and its work. The asker relates why the donor's larger increment investment is needed, why this particular organization is a sound investment and how it will achieve successes with the larger donation. This information (in any donation request) may or may not be compelling to the donor, but the nonprofit leader, in a major donor ask, has done their job if they have related truthful and compelling facts. Leaving the discussion (and relationship) so that the donor is comfortable, informed, thanked, and has been asked are the ultimate goals. We all know that sometimes a person has a reason why they can not give right then (or maybe just not give at that increment right then) and those reasons come and go. This is O.K. The key is to engage any and all donors in such a manner that they give now and again later, but if they can't give now - treat them well so that they might give again later. This is all any fundraiser can do.
__ Being informed about how to go about a face to face larger increment donation request, properly, and then having rehearsed it each help. Having a well researched perspective donor is helpful, too. The fundraising department should arm those who are going to meet with potential major donors (i.e. the executive director and board members) with factual and on point set of talking points for the nonprofit representative to have and learn, prior to the meeting, for each perspective major donor. No one's privacy should be invaded but there is a good amount of information that can be gleaned, for instance, from a nonprofit's own donations records about most donors (i.e. they prefer to give to this campaign, have volunteered in the past (or not), and have a relative who was assisted by this nonprofit (or not). Once a nonprofit's representative is trained, rehearsed, and informed for each individual they are going to talk with - they feel more at ease.
__ Nowhere is it written that all direct interactions with a potential donor (of any kind) must be one on one. Do whatever makes everyone involved (e.g. the nonprofit's representatives and the potential donor) comfortable! If everyone would rather meet during a jog around the local park instead of for a lunch, for instance, - do that. If the potential donor wishes to include a friend in the meeting - fine. Why not if that makes them comfortable? If the nonprofit representative would rather do the ask with another board member present (in a team) that's fine, too, as long as the potential donor is informed and is fine with it (and they usually are). Take the pressure off wherever and however you can for everyone involved in this process!
__ Know how much you are going to ask each individual potential donor for (based on some real recent giving history and their indicated/demonstrated capability to give in larger increments). This amount may vary individual major donor to individual major donor and probably will. For instance, the amount that your organization would ask Bill and Melinda Gates for, in a face to face ask, is likely a different amount from how much you would ask a local business owner for (and one donor and their potential to give is not more important than the other. Just having supporters who give is the ultimate goal). Having said this - you aren't out to get as much as you can beyond reason. If the nonprofit is running a capital campaign and there is a specific amount still un-raised and needed - of course attempt to raise it - but raise it from prospective, if planned, major donors who are really capable of giving at that level and have demonstrated an interest in the organization. If the amount is very large, split the amount into lesser amounts and ask for specific increments (as needed) based, again, on the individual donor's abilities to give.
__ Know what you are asking for the money from them for. If you go into an ask and can't demonstrate why the money is needed and where the money will be spent, why ask for anything at all? Donors are not money repositories but rather investors or partners who are interested (for usually personal reasons) in the nonprofit's cause or issue, and are invested in the organization because they want to see real, successful, and needed (but yet unmet) outcomes. Don't abuse their interest. Be prepared (but not overly so) to demonstrate (in a compelling fashion) how and why the donation is needed. Make a clear case. As already stated, being armed with compelling information makes asking for a donation easier for everyone involved.
__ Be grateful. If they've given before, begin by thanking them and acknowledging their prior support. If they haven't given to your organization before but are notoriously active in philanthropy or volunteerism in the local community, note that, and thank them (even if it wasn't for your organization - they can be thanked for their concern and involvement in your community). If they do donate, of course thank them, and follow their wishes if they request anonymity. Engaging anyone by first thanking them lessens the level of every one's anxiety.
__ Always follow through in a professional and timely manner. If you meet with a potential donor and they request more information, get it to them. If they request more time to consider the ask, grant them that. If they are not ready to give now, but perhaps in six months - thank them and then contact them in six months. Always grant anyone asked for a donation their rights. This is how a potential donor feels enabled even if they have not donated to your specific organization, yet. It is a good way to begin or maintain a relationship even if the first donation has not yet been given. This leaves everyone in the relationship feeling respected, heard, welcome, and enabled.
__ Rehearse. It may seem tedious or even unnecessary but the best practices bare out. It is proven that leaders who practice and rehearse prior to major donor asks do better. Isn't it always the case with anything that if you practice you do better? It's true with major donation requests, too.
Thứ Hai, 26 tháng 10, 2009
For Current Insights Into What Is Motivating Major Donors To Give Large Donations, Now, See This Free Webinar Transcript
This past Thursday I sat in on The Chronicle of Philanthropy's free webinar, "What Makes A Donor Give A Fortune" (which, handily, only required that participants could log onto their website to participate). The speakers were two active philanthropists who have planned out their wealth and future wealth so that they could give before they passed and have been for years. They answered the participating audience's questions and the two moderators' questions. The benefit of listening to a panel of wealthy donors is to understand what motivates them to give, what they are looking for in the nonprofits that they donate to, and any other questions that are asked.
You, too, can read the transcript for free, now, at http://philanthropy.com/live/2009/10/fortune_to_charity/ if you toggle down the page and in the "Conversation With A Major Donor..." text box at the bottom of the page, click on the right pointing sideways arrow ('play' arrow) in the box. This will prompt the text to appear and you can read from top to bottom.
This particular webinar was well attended and between the participants' and moderators' questions the topics covered ranged from how a start up nonprofit can get funded to what the passion is that causes people to organize their wealth and begin to give (either as individuals or even as a family foundation). Also, there are a wealth of great suggested web resources and their links included, too.
The Chronicle of Philanthropy does a beautiful job of listing all of their previous webinars that anyone can access afterward, for free. To read down the list of conversations that they have held before, and to also see what discussions are coming next (which you could certainly participate in for free, if you wish), go to http://philanthropy.com/live/
The Chronicle of Philanthropy's next free webinars are listed to happen on October 27, October 29, November 3, and November 12. As more follow these dates, they will be listed, too, at the "live" URL above. Not only are these a great opportunity to get current happenings, thoughts, and best practices; they are a terrific free tool to learn; and they allow any participant to ask questions. I can't recommend them enough.
You, too, can read the transcript for free, now, at http://philanthropy.com/live/2009/10/fortune_to_charity/ if you toggle down the page and in the "Conversation With A Major Donor..." text box at the bottom of the page, click on the right pointing sideways arrow ('play' arrow) in the box. This will prompt the text to appear and you can read from top to bottom.
This particular webinar was well attended and between the participants' and moderators' questions the topics covered ranged from how a start up nonprofit can get funded to what the passion is that causes people to organize their wealth and begin to give (either as individuals or even as a family foundation). Also, there are a wealth of great suggested web resources and their links included, too.
The Chronicle of Philanthropy does a beautiful job of listing all of their previous webinars that anyone can access afterward, for free. To read down the list of conversations that they have held before, and to also see what discussions are coming next (which you could certainly participate in for free, if you wish), go to http://philanthropy.com/live/
The Chronicle of Philanthropy's next free webinars are listed to happen on October 27, October 29, November 3, and November 12. As more follow these dates, they will be listed, too, at the "live" URL above. Not only are these a great opportunity to get current happenings, thoughts, and best practices; they are a terrific free tool to learn; and they allow any participant to ask questions. I can't recommend them enough.
Chủ Nhật, 25 tháng 1, 2009
Raise Some Quick Donations More Often, Right Now, and Again Later This Year, And Next...
In this difficult economy, your organization is likely struggling to provide its mission's work. The programs, services, items, research, or other product that it exists to offer the community is likely under some jeopardy because the economy has slowed and while donors are still giving, they're mostly giving in lesser amounts, if at all.
Your organization may mostly offer memberships and special events to raise money. If your nonprofit has not focused much on donors, or if your organization does not have a dedicated donor base that regularly gives donations to your group and are people who are regularly asked for contributions you are missing a real cash flow stabilizer. All fundraisers are critical, today. No successful fundraising method should be thrown out the door, at all. If, though, your organization has not taken advantage of also raising donors who are individuals, families, and small or local businesses that live and operate in the geographic region(s) that your nonprofit serves - you want to begin raising money from these folks. In the United States, approximately 80% of all donations raised by 501(c)(3) nonprofits are from individual donors (including families and small businesses). In other words - you may think 'Dave Smith is only going to give $20 every six months or so - why should I try to raise money from him, each year?'. The reason is several Dave or Denise Smiths who give $20 over and over again inject your organization's bank account with regular cash. The more donors your organization raises and retains, the more regular and steady ongoing cash flow it will have. Different donors want to give towards different types of fundraising methods or give to specific programs that your organization conducts over others - and that's fine. Getting organized: knowing how you will track donors' names and contact information, knowing how you will track which fundraising method they respond to and the donations' details will be critical. If you know how each donor reacts, or rather, what they prefer you've begun the process (and more importantly, have the information, per donor) to develop them or keep them happy with giving to your agency. How do you find out how to reach these individual donors?
A nonprofit must always listen to, remain open to, and work with the people and entities that support it. If your organization has clearly indicated to the community that it serves, what it does, why its work (mission) is critical and necessary now, and given the community different ways to support it and its work - the nonprofit should be raising new donors who will give again, as it retains donors who have given before, gave again recently, and will give again later. The only way that a nonprofit will raise new donors and retain its old donors is by being honest, clearly sharing its successes, communicating its future goals, and by being a professional and transparent operation. Donors are not 'lucky to give to your organization' or 'lower than' others who are volunteering or working for the nonprofit. They are vital, invaluable, partners in your organization's work and its mission, a part of the community, and must be seen as partners or investors. They must be cared for.
I am not saying that donors or any one or few donors 'own' the nonprofit or have 'special rights' to anything that the organization does or how it operates (except, for instance, if naming rights were acquired through a large donation per a campaign that your organization was holding, etc.). Donors are not in charge of policy setting, fiscal oversight, or choosing the nonprofit's direction. Those jobs are specific tasks that the board of directors is tasked with, legally. Donors are not in charge of operating the organization's day to day work or overseeing programs, program design, fundraising, and achievements in programs, services, and fundraising. These tasks and achievements are traditionally mostly the executive director's responsibility (and the board bears some fundraising achievement responsibilities, too). Donors are also not responsible for the specific different operations and tasks that a nonprofit must finish well and succeed at, for the day to day work to get done that makes the entire organization's operations, in sum total, occur. These responsibilities are the administrative volunteers', programs volunteers', and the staff's (if your nonprofit has staff).
The following Seeking Grant Money Today posts, diverge from grant writing, specifically (which also requires attention to donors) to address the importance of individual donors (because of our economic difficulties, today). These will help you understand more:
Write An Annual Appeal Letter To Raise Relatively Quick Funds
How To Increase The Number of New Donors
Your Nonprofit Needs Cash Flow. That Means Your Nonprofit Needs Your Individual Donors. Take Care of Each One
You Too Can Raise Major Donations. Here's How...
What Motivates Giving?
Your organization may mostly offer memberships and special events to raise money. If your nonprofit has not focused much on donors, or if your organization does not have a dedicated donor base that regularly gives donations to your group and are people who are regularly asked for contributions you are missing a real cash flow stabilizer. All fundraisers are critical, today. No successful fundraising method should be thrown out the door, at all. If, though, your organization has not taken advantage of also raising donors who are individuals, families, and small or local businesses that live and operate in the geographic region(s) that your nonprofit serves - you want to begin raising money from these folks. In the United States, approximately 80% of all donations raised by 501(c)(3) nonprofits are from individual donors (including families and small businesses). In other words - you may think 'Dave Smith is only going to give $20 every six months or so - why should I try to raise money from him, each year?'. The reason is several Dave or Denise Smiths who give $20 over and over again inject your organization's bank account with regular cash. The more donors your organization raises and retains, the more regular and steady ongoing cash flow it will have. Different donors want to give towards different types of fundraising methods or give to specific programs that your organization conducts over others - and that's fine. Getting organized: knowing how you will track donors' names and contact information, knowing how you will track which fundraising method they respond to and the donations' details will be critical. If you know how each donor reacts, or rather, what they prefer you've begun the process (and more importantly, have the information, per donor) to develop them or keep them happy with giving to your agency. How do you find out how to reach these individual donors?
A nonprofit must always listen to, remain open to, and work with the people and entities that support it. If your organization has clearly indicated to the community that it serves, what it does, why its work (mission) is critical and necessary now, and given the community different ways to support it and its work - the nonprofit should be raising new donors who will give again, as it retains donors who have given before, gave again recently, and will give again later. The only way that a nonprofit will raise new donors and retain its old donors is by being honest, clearly sharing its successes, communicating its future goals, and by being a professional and transparent operation. Donors are not 'lucky to give to your organization' or 'lower than' others who are volunteering or working for the nonprofit. They are vital, invaluable, partners in your organization's work and its mission, a part of the community, and must be seen as partners or investors. They must be cared for.
I am not saying that donors or any one or few donors 'own' the nonprofit or have 'special rights' to anything that the organization does or how it operates (except, for instance, if naming rights were acquired through a large donation per a campaign that your organization was holding, etc.). Donors are not in charge of policy setting, fiscal oversight, or choosing the nonprofit's direction. Those jobs are specific tasks that the board of directors is tasked with, legally. Donors are not in charge of operating the organization's day to day work or overseeing programs, program design, fundraising, and achievements in programs, services, and fundraising. These tasks and achievements are traditionally mostly the executive director's responsibility (and the board bears some fundraising achievement responsibilities, too). Donors are also not responsible for the specific different operations and tasks that a nonprofit must finish well and succeed at, for the day to day work to get done that makes the entire organization's operations, in sum total, occur. These responsibilities are the administrative volunteers', programs volunteers', and the staff's (if your nonprofit has staff).
The following Seeking Grant Money Today posts, diverge from grant writing, specifically (which also requires attention to donors) to address the importance of individual donors (because of our economic difficulties, today). These will help you understand more:
Write An Annual Appeal Letter To Raise Relatively Quick Funds
How To Increase The Number of New Donors
Your Nonprofit Needs Cash Flow. That Means Your Nonprofit Needs Your Individual Donors. Take Care of Each One
You Too Can Raise Major Donations. Here's How...
What Motivates Giving?
Chủ Nhật, 19 tháng 10, 2008
Getting Major Donors To Contribute Large Regular Donations Can Stabilize Cash Flow
Due to the economic slow down, Seeking Grant Money Today's past three posts have provided fundraising suggestions beyond grant writing, because raising grant money isn't a quick way to raise funds. Here, I provide you with another 'free' consultation. I recommend that your nonprofit consider developing stronger relationships with its donors who give or could give in large amounts. Developing these particular contributors into regular contributors who give more each year, is called a major donor campaign, so those who do or could give in larger amounts are called major donors. The goal of the major donor campaign is to raise larger amount contributions, that are given regularly (more often), year to year. Your organization's key leadership should create real, mutually beneficial, honest relationships with potential major donors (and current major donors) because these people are or can be pillars to your organization. When they donate, are really investors in your organization.
Maybe you feel squeamish thinking 'ooo...I don't want to ask anyone to give us a larger donation'. It's normal and common to feel this way. It is also very important to keep in mind two things when imagining asking someone for a larger donation; everyone always has the right to say no but the only way they'll give in larger amounts is if they're asked (if you don't ask you won't get the larger amount donations); and remember that your organization is providing the community with something that no other nonprofit is providing. This is invaluable and worth the potential donor being asked, and it is worth your asking potential donors for larger amounts.
You may think, 'we would love to have donors who give in large amounts, but we don't', or 'we don't know where to find them', or 'we have never received a large donation from an individual or family'. Your organization is not immune to major donor contributions and all major donors are created, in effect, they do not just appear. This is a larger increment donation that you can raise, perhaps easier than grants, because these will be people who give on their own (without requiring an application process, etc. as grant donors do).
Major donors are usually people; they are not foundations, corporations, or other entities who offer and donate grants, sponsorships, etc.. They may offer these types of contributions, too, but the major donor is usually operating from their own individual household budget and interests. Major donors are typically individuals, families, or even family trusts who live or operate in your community. The key in being successful in beginning and growing a major donor campaign is taking the time to do everything necessary in order to be successful. Half of any nonprofit leader's work (executive director, board members, etc.) is fundraising. No nonprofit operates on passive or wishful fundraising. So, truly, all and any fundraising method requires taking the time to do everything necessary that will lead to success.
The steps to a successful major donor campaign are:
__ Education
__ Planning
__ Organizational Analysis
__ Community Research
__ Donor Research
__ Practice
__ Planning Approach and Ask for Each Potential Major Donor
__ Outreach
__ Direct Communication
__ Listening and Following Through
__ Record Keeping
__ Direct Communication Again
__ Repeat this process at regular intervals annually
Major donor campaigns are best conducted by a committee or several board members along with key staff or office volunteers. As always, if you don't know anything other than what you'll learn in this post; educate yourself. To learn about what standard, respected, and excellent resources are out there for nonprofit leaders, read two of my other posts, "Places, Resources, and Ways to Learn Everything From Fundraising To Other Nonprofit Operations (Some Are Free)..." and "Some Free Resources" These posts list books, websites, and other tools to help you find good resources to learn from. Research major donor campaigns, and ask colleagues volunteering or working for other nonprofits how they conduct their major donors program.
Based on what you learn and what you know about the organization that you work for, plan the major donor campaign with the key participants. Work through and finalize: the budgetary goal, the campaign's timeline, the budget to put the campaign on, who will do what, benchmarks, how all of the steps will be conducted. Follow up, after the campaign's end, each year by asking for feedback, reviewing results verses goals and what went well and what needs improvement, and then improve the campaign, year to year. Be willing to learn and grow this fundraising method.
After the plan has been put into place, research the donations that your organization has received. Review what, over the past year or two, the average contribution amount has been (and if your organization receives memberships dues, sponsor donations, pledges, bequests, or employee giving donations I'd only review the contributions other than these kinds of donations, for our purpose here, otherwise your data will be skewed). Include all types of donors who give from their own wallets (e.g. individuals, families, and maybe small local businesses). To find the average, add up the total amount of donations received, and then count how many donations, total, were received. Divide the total amount received by the number of total donations received. Maybe the average amount contributed to our organization is $20, for instance. Now we must decide what is a large donation, for our organization. In other words, what contribution amount (or higher) causes whoever opens the donation envelopes at our agency to yell "wa hoo!"? Each nonprofit has to arrive at what it considers a large amount donation because each nonprofit is different. Returning to our hypothetical analysis, if the average contribution received over the past two years has been $20, we, let's say, also know that occasionally we receive $50 and sometimes $100 donations. We've established our average receipt and now we're trying to be fair and realistic but not overly conservative in determining a range of larger donations received. You can do this mathematically, as well, of course; but I find that whomever at your organization receives and enters donations to your donor database will have a good sense of what larger donation amount occasionally (every month or so) arrives, without the donor having been asked for a larger than usual sum. Let's say, hypothetically, that we decided that a regular larger donation amount that we receive is $100.
One thing that you could implement as regular operations, from now on, is acknowledging an unsolicited larger donation (based on whatever is determined to be the minimum 'large donation' for your organization; here we've found it's $100). So if this month we received 30 donations that were below $100 (and these people should each and all be thanked no matter what amount they gave - there are no 'bad' or 'cheap' donations); and we received two donations that were $100 or more - we should thank these donors, too, of course but we can begin to implement adding a special touch to not just thank them but demonstrate that we noticed their larger commitment and investment in the nonprofit. These can be simple but meaningful acknowledgements. You could do something as simple as printing out their thank you letters (tax receipts), as normal, but taking the two larger amount thank you letters to the executive director and ask him/her to write a short but personalized thank you note (in pen in their handwriting) on the formal letter. Major donors can be acknowledged in other ways, too. Some options are: a thank the major donor annual special event, instead of writing on the formal thank you letter print and send the letter and have a board member or the executive director call the donor to personally thank them in tandem with sending the letter, creating giving levels and listing donors accordingly in a newsletter or annual report that lists all larger amount donors, etc. This is an agency decision as there are costs associated with this extra acknowledgement process. This kind of relationship development is an investment in larger donations now and in the future. These new procedures' costs should be included in the major donor campaign budget (see the planning step, above). This work that I've described here is a part of major donor development. By setting a standard and then acknowledging those who unprompted contribute at this level or higher, you are encouraging them to give again in larger amounts. Combined with the following major donor campaign work - this all increases the chances in not just getting another donation from the donor but hopefully, increasing how much they give the next time, and from then on.
Turn from inward, organizational research (of the donations received) to outward looking research. Research who are the major donors who give to other nonprofits in the geographic region that your organization serves (in order for your organization's request to be relevant to potential donors). The way to 'find' major donors is to first develop the donors already giving to your organization, but to also then research and find who is giving to organizations doing similar work as yours or to organizations working on the same cause. These people and families are indicating (through their contribution to these other similar nonprofits) that they care about the cause and the work that your organization does, too. I need to caution you that no donor who gives to another nonprofit should be hunted down to give to your group too, or disparaged for not giving to your organization also, or anything so unprofessional. It is really important to realize that these people donate to nonprofits, give to a good cause, and may have a good reason for not giving to your nonprofit. Without contacting them or any other unethical or unprofessional behavior - it is your organization's job to determine how these people can be brought on board to give to your organization, too. They should never be told 'don't give to that other nonprofit' or anything to this effect. You are only responsible to raise donations for your organization. That's it. A donor's relationship with all of the other nonprofits that they give to is their business - not yours'. Meanwhile, you must remember that how you act and how you treat a potential donor reflects on the nonprofit that YOU work for and your actions reflect on how it operates. Be professional. Finally, keep in mind too that major donors can afford to give to several organizations and if a potential major donor gives to a nonprofit doing work like your own organization's; approach that potential donor understanding that they could give to your organization, in addition to everyone else that they are donating to. Your job is to raise money and develop a professional, ethical, effective, and positive relationship with potential donors (and this means encouraging them to do any good that they see fit to do - whether this involves your nonprofit (yet) or not).
How do you find out who is giving to similar nonprofits? There are lists that a nonprofit can buy (often offered through marketing or sales list companies) but I do not believe this is a necessary investment. If you locate just one or two other nonprofits who are doing similar work as your organization's in the region that your organization serves, and look over their list of donors - you can compare those names to your organization's donor list. Nonprofits usually list donors in their newsletters, in their annual report, or other places. Anyone who is giving to them, particularly above your organization's large donation amount threshold that you've determined or higher, and hasn't given to your organization yet; should be noted. Again, these people are not anything other than potential donors to your organization - treat them with respect, but be discreet, be professional and do nothing to disparage anyone or any other nonprofit. You may wonder if looking over like nonprofits' donor lists is 'fair' or 'OK', but keep in mind that turn about is fair play and it is very likely that other organizations have taken note of your organization's donors, too (and that's OK - have confidence in your donors' connection to the nonprofit that you work for). Note, too, that no other nonprofit is trying to "steal" your donors. Professionalism is key.
It's really key to understand that donors give not for tax breaks (studies show) but because they care so deeply about a cause or issue that they want to contribute to the solution. Donors look into which nonprofit does the work that they believe will best address the issue and is successful at it (and are well run, honest, transparent, professional nonprofits). Your donors, in effect, are voting for your organization's mission statement, record in the community, successes, and capabilities when they give to your agency. Be confident in their assessment and their "vote". Developing them helps them stay on board.
There are many key points in this post. Another really important key to remember is it is not natural or easy to ask another person for money. Fundraising is asking others for money, and major donor campaigns often include the unique and unusual task of asking a potential donor for money face to face. I empathize - it feels awkward imagining you, yourself, asking someone else for money. If you, your board, your staff, or your executive director are anxious about or have avoided implementing a major donor campaign because they don't want to ask others for money - it's normal, it's understandable, and most successful major donor campaigns at other nonprofits are conducted by people who got beyond these natural anxieties. I've been there, myself.
Any fundraising that involved raising single large amounts should be conducted by all relevant staff but the actual interaction should always be what's called 'peer to peer'. In other words, relevant staff (the executive director, development assistant, bookkeeper, fundraising manager, board) should all be doing their part, but the only people who should be talking with potential larger amount donors (or their representatives) on the phone, or in meetings, face to face, should be leaders of the nonprofit (the executive director and/or board members).
The first contact ("outreach" action item, above) should be through a formal letter explaining who our organization is, what we do, our successes and service statistics, ask for a meeting with them, and state what the meeting is for. If they do not respond, you can follow up once but no more. Do not harass anyone. Be good neighbors in the community to everyone; other nonprofits, potential donors, former donors; everyone. If they request to be removed from the mailing list - remove them and take that as a 'no' to the request to meet with them. Always treat people professionally. This is our outreach and it is the initial step of contact. Remember how important first impressions are. The letter should be short, to the point, clear, and informative.
Major donor discussions can be held with more than one of your organization's leaders (e.g. at a meeting); so the executive director and a board member, maybe, could take a potential major donor out to lunch, for instance. Or, just one of the key leaders could meet with a major donor. Meet when and where it is convenient for the potential donor. Your organization must demonstrate to all potential major donors that they are valued enough for the organization to give them the time of its leaders (peer to peer interaction). After all, major donors are leaders in their own way; they are demonstrating how and how much can be and should be given to your organization. They deserve to meet with your group's leaders. Does your leadership have jitters or anxiety at the thought of face to face requests? This is normal. Read How To Make Requests A Donation Face to Face From A Major Donor Easier.
The next action item in initiating our major donor campaign is to practice. Everyone who will be meeting with potential major donors should practice (and more than once or twice) or role play being both the person asking for a contribution and also the potential major donor being asked for the donation. No one has to sell any potential donor on anything (in any of your fundraising, ever). No one has to be schmoozey or slick (ever). Pre-arrange a script that the asker with use, rehearse the script, and practice both acquiring the larger donation and also being told 'no', in response, or being told 'no, not now, maybe later'. Just be sure that the askers speak from their heart. Know, too, how the organization will follow through with those people who do give major donations after these asks. If one of your organization's leaders holds a meeting with a potential major donor do and don't do the following: get to the point, be clear, be honest, speak about why you are involved with THIS nonprofit honestly, provide the organization's recent successes, ask why they are involved in the cause, and if they'd like to be more involved with the organization. Do not get negative, do not get pushy, and be sure to ALWAYS (as with any and all of your donors) to listen. If they ask questions and you don't know the answer, that's fine; say so. But be CERTAIN to get back to them after the meeting in a timely fashion with the answer. Be grateful to them for their leadership in the community at large, whether they donate or not. Remember, some people want to be courted more than others so some people may say 'no' but give later. A 'no' is not the end of the world. If though, (like with any and all donors) they request to be removed from your solicitation list or wish to no longer be contacted - that is OK - they are allowed to do this. Again, thank them and quickly and completely comply with their request. There are always more fish in the sea! Treating people well, no matter what their interaction with your organization, may impress them so much that they wind up giving! Remember, how your organization and its representatives treats everyone truly reflects on the organization. Being professional and polite in all situations (as best as one can) will leave the door open for any possibilities. Being rude, taking things personally, holding a grudge, or any other non-professional behavior can ruin the chances of anyone giving to your organization again. Always leave the door open for possibilities. Never stop rehearsing asking major donors for a large contribution, even if you've done it a few times. It is a great way to desensitize those who are going to do the asking, plus it allows everyone to experience the ask from the donor's perspective.
Individualize your approaches, next. We will take the script that we've developed and have been rehearsing; and we'll fine tune and streamline it by tweaking it, individualizing the script to each person that will be asked, according to what we know they like or don't like. Let's say that we work with a board of nine people who have each taken three potential major donors to develop. We've learned major donor campaigns, we're practicing asking people for larger donations, and now we must individualize our ask for each of the board members' three potential major donors. Let' take one of our board members' list of three. Let's look at board member, Sara Smith's list. Sara has Rick Brown, Denise Miller, and the Annie and Matt Davenport family on her list, and Sara is good friends with Denise. Denise, it turns out, volunteers for another separate nonprofit and has asked Denise to contribute to that organization. Sara did and she knows that Denise will probably be happy to support an organization that she is working for and believes in (to reciprocate). This is really common among friends of board members who share phinlanthropic or community interests, so personal board connections should be added to any major donor campaign's potential donor list. Sara doesn't know anything about Mr. Brown or the Davenport family, though, so she works with the Major Donor Campaign Committee to research each of them a bit to try to learn anything that may help us increase the chances of raising a donation from them. Let's say that a couple volunteers research each and have found the following to assist Sara: the Davenport family is a long established local family who made their wealth in the local industry and are big fans of sporting events. Let's say we also learned that Mr. Brown regularly gives to our cause in larger amounts, but also to two other different causes. Sara can then tweak or personalize her ask to the Davenport family by speaking about the local community, during the meeting, and tying our organization's successes in our local community to the importance of their contribution. She can also chit chat comfortably with the Davenports about recent sporting events knowing that this will probably help ease them, too (as it is one of their interests). Sara can talk to Mr. Brown about how wonderful his committment and dedication to the community has been (ala all of the causes that he supports) and she can: ask him if he would like to learn more about our organization, and ask what connects him to the causes that he currently gives to. It is really important that during the meeting Sara (and all leaders who are going to ask a potential major donor for a contribution) takes very good notes. These notes should be returned to the Major Donor Campaign Committee, filed into each respective major donor's file (along with the findings from the Committee's initial research), and kept to help inform the next communication with them. All contact (including notes or letters) to major donors (or potential major donors) should be personalized. Do not use information, though, that you aren't certain is accurate or current. Press clippings about potential donors are great for information. Any information that we learn about our major donors or potential major donors should be noted and kept handy to be used later.
During the ask meeting Sara will speak honestly from her personal experience why she volunteers for our organization. She will answer all questions, as best she can, honestly. She will also listen. It is really important to truly understand where this potential donor is, where they are coming from, how they connect with the cause, what they know of our organization, and even what motivates them. Make it easy for the donor to give - listen to them, follow through with them in a timely manner, and meet them where they are. If, for instance, a potential donor asks about whether they could volunteer with the organization - invite them to do so. No one should give their nonprofit away for a large donation, but no one should restrict a potential donor's involvement in a nonprofit. Getting them more involved may develop into a powerful opportunity for the organization and its future.
If the potential major donor requests time to think about whether they want to contribute, or if they ask for financials to think about it, etc. give them what they request, after the meeting, in a timely manner; and give them time to process what they need to. Then, contact them again, in a timely manner, to professionally but clearly follow up. If they seem interested but don't give (and they don't state 'do not contact me again' or other request to not be contacted) be sure to approach them again maybe in six months or a year. Reapproaches should be a part of the campaign's plan (the second action item, above). Conduct this campaign every year. It is likely that it will raise more and more money as years pass. Track the successes and failures in this campaign; revisit how everything is going, regularly; make appropriate changes or imporvements; and keep at it. Work at whatever your organization has invested in.
Major donors are often interested in your cause, but perhaps they aren't aware of your organization, or don't know your organization's successes. Help them by informing them, clearly asking them for support, and give them a chance to be a major pillar to your organization. If you don't ask - they can't support at that level.
Maybe you feel squeamish thinking 'ooo...I don't want to ask anyone to give us a larger donation'. It's normal and common to feel this way. It is also very important to keep in mind two things when imagining asking someone for a larger donation; everyone always has the right to say no but the only way they'll give in larger amounts is if they're asked (if you don't ask you won't get the larger amount donations); and remember that your organization is providing the community with something that no other nonprofit is providing. This is invaluable and worth the potential donor being asked, and it is worth your asking potential donors for larger amounts.
You may think, 'we would love to have donors who give in large amounts, but we don't', or 'we don't know where to find them', or 'we have never received a large donation from an individual or family'. Your organization is not immune to major donor contributions and all major donors are created, in effect, they do not just appear. This is a larger increment donation that you can raise, perhaps easier than grants, because these will be people who give on their own (without requiring an application process, etc. as grant donors do).
Major donors are usually people; they are not foundations, corporations, or other entities who offer and donate grants, sponsorships, etc.. They may offer these types of contributions, too, but the major donor is usually operating from their own individual household budget and interests. Major donors are typically individuals, families, or even family trusts who live or operate in your community. The key in being successful in beginning and growing a major donor campaign is taking the time to do everything necessary in order to be successful. Half of any nonprofit leader's work (executive director, board members, etc.) is fundraising. No nonprofit operates on passive or wishful fundraising. So, truly, all and any fundraising method requires taking the time to do everything necessary that will lead to success.
The steps to a successful major donor campaign are:
__ Education
__ Planning
__ Organizational Analysis
__ Community Research
__ Donor Research
__ Practice
__ Planning Approach and Ask for Each Potential Major Donor
__ Outreach
__ Direct Communication
__ Listening and Following Through
__ Record Keeping
__ Direct Communication Again
__ Repeat this process at regular intervals annually
Major donor campaigns are best conducted by a committee or several board members along with key staff or office volunteers. As always, if you don't know anything other than what you'll learn in this post; educate yourself. To learn about what standard, respected, and excellent resources are out there for nonprofit leaders, read two of my other posts, "Places, Resources, and Ways to Learn Everything From Fundraising To Other Nonprofit Operations (Some Are Free)..." and "Some Free Resources" These posts list books, websites, and other tools to help you find good resources to learn from. Research major donor campaigns, and ask colleagues volunteering or working for other nonprofits how they conduct their major donors program.
Based on what you learn and what you know about the organization that you work for, plan the major donor campaign with the key participants. Work through and finalize: the budgetary goal, the campaign's timeline, the budget to put the campaign on, who will do what, benchmarks, how all of the steps will be conducted. Follow up, after the campaign's end, each year by asking for feedback, reviewing results verses goals and what went well and what needs improvement, and then improve the campaign, year to year. Be willing to learn and grow this fundraising method.
After the plan has been put into place, research the donations that your organization has received. Review what, over the past year or two, the average contribution amount has been (and if your organization receives memberships dues, sponsor donations, pledges, bequests, or employee giving donations I'd only review the contributions other than these kinds of donations, for our purpose here, otherwise your data will be skewed). Include all types of donors who give from their own wallets (e.g. individuals, families, and maybe small local businesses). To find the average, add up the total amount of donations received, and then count how many donations, total, were received. Divide the total amount received by the number of total donations received. Maybe the average amount contributed to our organization is $20, for instance. Now we must decide what is a large donation, for our organization. In other words, what contribution amount (or higher) causes whoever opens the donation envelopes at our agency to yell "wa hoo!"? Each nonprofit has to arrive at what it considers a large amount donation because each nonprofit is different. Returning to our hypothetical analysis, if the average contribution received over the past two years has been $20, we, let's say, also know that occasionally we receive $50 and sometimes $100 donations. We've established our average receipt and now we're trying to be fair and realistic but not overly conservative in determining a range of larger donations received. You can do this mathematically, as well, of course; but I find that whomever at your organization receives and enters donations to your donor database will have a good sense of what larger donation amount occasionally (every month or so) arrives, without the donor having been asked for a larger than usual sum. Let's say, hypothetically, that we decided that a regular larger donation amount that we receive is $100.
One thing that you could implement as regular operations, from now on, is acknowledging an unsolicited larger donation (based on whatever is determined to be the minimum 'large donation' for your organization; here we've found it's $100). So if this month we received 30 donations that were below $100 (and these people should each and all be thanked no matter what amount they gave - there are no 'bad' or 'cheap' donations); and we received two donations that were $100 or more - we should thank these donors, too, of course but we can begin to implement adding a special touch to not just thank them but demonstrate that we noticed their larger commitment and investment in the nonprofit. These can be simple but meaningful acknowledgements. You could do something as simple as printing out their thank you letters (tax receipts), as normal, but taking the two larger amount thank you letters to the executive director and ask him/her to write a short but personalized thank you note (in pen in their handwriting) on the formal letter. Major donors can be acknowledged in other ways, too. Some options are: a thank the major donor annual special event, instead of writing on the formal thank you letter print and send the letter and have a board member or the executive director call the donor to personally thank them in tandem with sending the letter, creating giving levels and listing donors accordingly in a newsletter or annual report that lists all larger amount donors, etc. This is an agency decision as there are costs associated with this extra acknowledgement process. This kind of relationship development is an investment in larger donations now and in the future. These new procedures' costs should be included in the major donor campaign budget (see the planning step, above). This work that I've described here is a part of major donor development. By setting a standard and then acknowledging those who unprompted contribute at this level or higher, you are encouraging them to give again in larger amounts. Combined with the following major donor campaign work - this all increases the chances in not just getting another donation from the donor but hopefully, increasing how much they give the next time, and from then on.
Turn from inward, organizational research (of the donations received) to outward looking research. Research who are the major donors who give to other nonprofits in the geographic region that your organization serves (in order for your organization's request to be relevant to potential donors). The way to 'find' major donors is to first develop the donors already giving to your organization, but to also then research and find who is giving to organizations doing similar work as yours or to organizations working on the same cause. These people and families are indicating (through their contribution to these other similar nonprofits) that they care about the cause and the work that your organization does, too. I need to caution you that no donor who gives to another nonprofit should be hunted down to give to your group too, or disparaged for not giving to your organization also, or anything so unprofessional. It is really important to realize that these people donate to nonprofits, give to a good cause, and may have a good reason for not giving to your nonprofit. Without contacting them or any other unethical or unprofessional behavior - it is your organization's job to determine how these people can be brought on board to give to your organization, too. They should never be told 'don't give to that other nonprofit' or anything to this effect. You are only responsible to raise donations for your organization. That's it. A donor's relationship with all of the other nonprofits that they give to is their business - not yours'. Meanwhile, you must remember that how you act and how you treat a potential donor reflects on the nonprofit that YOU work for and your actions reflect on how it operates. Be professional. Finally, keep in mind too that major donors can afford to give to several organizations and if a potential major donor gives to a nonprofit doing work like your own organization's; approach that potential donor understanding that they could give to your organization, in addition to everyone else that they are donating to. Your job is to raise money and develop a professional, ethical, effective, and positive relationship with potential donors (and this means encouraging them to do any good that they see fit to do - whether this involves your nonprofit (yet) or not).
How do you find out who is giving to similar nonprofits? There are lists that a nonprofit can buy (often offered through marketing or sales list companies) but I do not believe this is a necessary investment. If you locate just one or two other nonprofits who are doing similar work as your organization's in the region that your organization serves, and look over their list of donors - you can compare those names to your organization's donor list. Nonprofits usually list donors in their newsletters, in their annual report, or other places. Anyone who is giving to them, particularly above your organization's large donation amount threshold that you've determined or higher, and hasn't given to your organization yet; should be noted. Again, these people are not anything other than potential donors to your organization - treat them with respect, but be discreet, be professional and do nothing to disparage anyone or any other nonprofit. You may wonder if looking over like nonprofits' donor lists is 'fair' or 'OK', but keep in mind that turn about is fair play and it is very likely that other organizations have taken note of your organization's donors, too (and that's OK - have confidence in your donors' connection to the nonprofit that you work for). Note, too, that no other nonprofit is trying to "steal" your donors. Professionalism is key.
It's really key to understand that donors give not for tax breaks (studies show) but because they care so deeply about a cause or issue that they want to contribute to the solution. Donors look into which nonprofit does the work that they believe will best address the issue and is successful at it (and are well run, honest, transparent, professional nonprofits). Your donors, in effect, are voting for your organization's mission statement, record in the community, successes, and capabilities when they give to your agency. Be confident in their assessment and their "vote". Developing them helps them stay on board.
There are many key points in this post. Another really important key to remember is it is not natural or easy to ask another person for money. Fundraising is asking others for money, and major donor campaigns often include the unique and unusual task of asking a potential donor for money face to face. I empathize - it feels awkward imagining you, yourself, asking someone else for money. If you, your board, your staff, or your executive director are anxious about or have avoided implementing a major donor campaign because they don't want to ask others for money - it's normal, it's understandable, and most successful major donor campaigns at other nonprofits are conducted by people who got beyond these natural anxieties. I've been there, myself.
Any fundraising that involved raising single large amounts should be conducted by all relevant staff but the actual interaction should always be what's called 'peer to peer'. In other words, relevant staff (the executive director, development assistant, bookkeeper, fundraising manager, board) should all be doing their part, but the only people who should be talking with potential larger amount donors (or their representatives) on the phone, or in meetings, face to face, should be leaders of the nonprofit (the executive director and/or board members).
The first contact ("outreach" action item, above) should be through a formal letter explaining who our organization is, what we do, our successes and service statistics, ask for a meeting with them, and state what the meeting is for. If they do not respond, you can follow up once but no more. Do not harass anyone. Be good neighbors in the community to everyone; other nonprofits, potential donors, former donors; everyone. If they request to be removed from the mailing list - remove them and take that as a 'no' to the request to meet with them. Always treat people professionally. This is our outreach and it is the initial step of contact. Remember how important first impressions are. The letter should be short, to the point, clear, and informative.
Major donor discussions can be held with more than one of your organization's leaders (e.g. at a meeting); so the executive director and a board member, maybe, could take a potential major donor out to lunch, for instance. Or, just one of the key leaders could meet with a major donor. Meet when and where it is convenient for the potential donor. Your organization must demonstrate to all potential major donors that they are valued enough for the organization to give them the time of its leaders (peer to peer interaction). After all, major donors are leaders in their own way; they are demonstrating how and how much can be and should be given to your organization. They deserve to meet with your group's leaders. Does your leadership have jitters or anxiety at the thought of face to face requests? This is normal. Read How To Make Requests A Donation Face to Face From A Major Donor Easier.
The next action item in initiating our major donor campaign is to practice. Everyone who will be meeting with potential major donors should practice (and more than once or twice) or role play being both the person asking for a contribution and also the potential major donor being asked for the donation. No one has to sell any potential donor on anything (in any of your fundraising, ever). No one has to be schmoozey or slick (ever). Pre-arrange a script that the asker with use, rehearse the script, and practice both acquiring the larger donation and also being told 'no', in response, or being told 'no, not now, maybe later'. Just be sure that the askers speak from their heart. Know, too, how the organization will follow through with those people who do give major donations after these asks. If one of your organization's leaders holds a meeting with a potential major donor do and don't do the following: get to the point, be clear, be honest, speak about why you are involved with THIS nonprofit honestly, provide the organization's recent successes, ask why they are involved in the cause, and if they'd like to be more involved with the organization. Do not get negative, do not get pushy, and be sure to ALWAYS (as with any and all of your donors) to listen. If they ask questions and you don't know the answer, that's fine; say so. But be CERTAIN to get back to them after the meeting in a timely fashion with the answer. Be grateful to them for their leadership in the community at large, whether they donate or not. Remember, some people want to be courted more than others so some people may say 'no' but give later. A 'no' is not the end of the world. If though, (like with any and all donors) they request to be removed from your solicitation list or wish to no longer be contacted - that is OK - they are allowed to do this. Again, thank them and quickly and completely comply with their request. There are always more fish in the sea! Treating people well, no matter what their interaction with your organization, may impress them so much that they wind up giving! Remember, how your organization and its representatives treats everyone truly reflects on the organization. Being professional and polite in all situations (as best as one can) will leave the door open for any possibilities. Being rude, taking things personally, holding a grudge, or any other non-professional behavior can ruin the chances of anyone giving to your organization again. Always leave the door open for possibilities. Never stop rehearsing asking major donors for a large contribution, even if you've done it a few times. It is a great way to desensitize those who are going to do the asking, plus it allows everyone to experience the ask from the donor's perspective.
Individualize your approaches, next. We will take the script that we've developed and have been rehearsing; and we'll fine tune and streamline it by tweaking it, individualizing the script to each person that will be asked, according to what we know they like or don't like. Let's say that we work with a board of nine people who have each taken three potential major donors to develop. We've learned major donor campaigns, we're practicing asking people for larger donations, and now we must individualize our ask for each of the board members' three potential major donors. Let' take one of our board members' list of three. Let's look at board member, Sara Smith's list. Sara has Rick Brown, Denise Miller, and the Annie and Matt Davenport family on her list, and Sara is good friends with Denise. Denise, it turns out, volunteers for another separate nonprofit and has asked Denise to contribute to that organization. Sara did and she knows that Denise will probably be happy to support an organization that she is working for and believes in (to reciprocate). This is really common among friends of board members who share phinlanthropic or community interests, so personal board connections should be added to any major donor campaign's potential donor list. Sara doesn't know anything about Mr. Brown or the Davenport family, though, so she works with the Major Donor Campaign Committee to research each of them a bit to try to learn anything that may help us increase the chances of raising a donation from them. Let's say that a couple volunteers research each and have found the following to assist Sara: the Davenport family is a long established local family who made their wealth in the local industry and are big fans of sporting events. Let's say we also learned that Mr. Brown regularly gives to our cause in larger amounts, but also to two other different causes. Sara can then tweak or personalize her ask to the Davenport family by speaking about the local community, during the meeting, and tying our organization's successes in our local community to the importance of their contribution. She can also chit chat comfortably with the Davenports about recent sporting events knowing that this will probably help ease them, too (as it is one of their interests). Sara can talk to Mr. Brown about how wonderful his committment and dedication to the community has been (ala all of the causes that he supports) and she can: ask him if he would like to learn more about our organization, and ask what connects him to the causes that he currently gives to. It is really important that during the meeting Sara (and all leaders who are going to ask a potential major donor for a contribution) takes very good notes. These notes should be returned to the Major Donor Campaign Committee, filed into each respective major donor's file (along with the findings from the Committee's initial research), and kept to help inform the next communication with them. All contact (including notes or letters) to major donors (or potential major donors) should be personalized. Do not use information, though, that you aren't certain is accurate or current. Press clippings about potential donors are great for information. Any information that we learn about our major donors or potential major donors should be noted and kept handy to be used later.
During the ask meeting Sara will speak honestly from her personal experience why she volunteers for our organization. She will answer all questions, as best she can, honestly. She will also listen. It is really important to truly understand where this potential donor is, where they are coming from, how they connect with the cause, what they know of our organization, and even what motivates them. Make it easy for the donor to give - listen to them, follow through with them in a timely manner, and meet them where they are. If, for instance, a potential donor asks about whether they could volunteer with the organization - invite them to do so. No one should give their nonprofit away for a large donation, but no one should restrict a potential donor's involvement in a nonprofit. Getting them more involved may develop into a powerful opportunity for the organization and its future.
If the potential major donor requests time to think about whether they want to contribute, or if they ask for financials to think about it, etc. give them what they request, after the meeting, in a timely manner; and give them time to process what they need to. Then, contact them again, in a timely manner, to professionally but clearly follow up. If they seem interested but don't give (and they don't state 'do not contact me again' or other request to not be contacted) be sure to approach them again maybe in six months or a year. Reapproaches should be a part of the campaign's plan (the second action item, above). Conduct this campaign every year. It is likely that it will raise more and more money as years pass. Track the successes and failures in this campaign; revisit how everything is going, regularly; make appropriate changes or imporvements; and keep at it. Work at whatever your organization has invested in.
Major donors are often interested in your cause, but perhaps they aren't aware of your organization, or don't know your organization's successes. Help them by informing them, clearly asking them for support, and give them a chance to be a major pillar to your organization. If you don't ask - they can't support at that level.
Chủ Nhật, 21 tháng 9, 2008
You, Too, Can Raise Major Donations And Here's Some Help...
In order to raise single large amount donations at one time you will need to develop relationships with the potential major donors who already do, or would buy into your organization. In order to do this, it is helpful to know what inspires wealthy donors to give in large amounts.
In the September 11, 2008 "News Updates" post on The Chronicle of Philanthropy's site, in her article, New Study Sheds Light on What Wealthy Donors Care About; Many Say They Will Support Operating Costs, Holly Hall summarizes "I'm Not Rockefeller" a survey conducted by the University of Pennsylvania’s Center for High Impact Philanthropy. The Center interviewed 33 donors who, donated an average of 1.5million each year. Click the study's name (in this paragraph, above) to access the study findings report.
To quote Hall, the survey " was aimed at providing insight into how the nation’s wealthiest donors choose the charities they support, how they obtain information on those organizations, how they assess the impact of their gifts, and the roles they see themselves playing in nonprofit organizations."
To quote the Executive Summary of the findings, "What we found were a set of diverse and evolving practices, a predominant reliance on peers for information, a narrow and negative view of evaluation (despite a strong desire to make a difference), and difficulty with exiting established relationships with nonprofits, perhaps because the transaction costs of “breaking up” seem too high. To our surprise, we also found that nearly a third of the study participants do not think of themselves as “philanthropists,” despite giving an average of nearly $1 million annually." [Page i]
The Executive Summary wraps up by commenting on the reason for the study; the Center for High Impact Philanthropy wants to understand what today's major donors needs are, in order to determine how the Center can gather, package, and disseminate the information that donors need. To again quote the Executive Summary, "Many [donors] expressed a reluctance to investigate the effectiveness of potential recipients for fear of inviting unwanted solicitations or appearing distrustful or overly demanding of the nonprofits with which they already had relationships. Most did not know about or refer to the myriad academic and nonprofit resources in their areas of interest." [Page i] So, the study was fruitful and the Center now has its work cut out for itself. We, who work for nonprofits, can consider the same task before each of us. We need to make it easy for the wealthy, who would potentially give in larger amounts, to give to the nonprofits we work for. The way to do this is to listen to the donors and also learn.
I know that you know this; you've heard it over and over. Relationships are REALLY how to raise larger donation amounts. To quote the study, "HNWP participants indicated that their criteria for philanthropic giving were deeply informed by their social capital. The criteria they most frequently cited – apart from an interest in or passion for a subject – were personal involvement with an organization (or the involvement of someone known to them) and the ability to influence a tangible program or project related to a passion or interest. These factors were especially important at the time of an initial gift. Some HNWPs told us that their involvement in an organization was an absolute precondition to donating what they considered larger gifts. Others were comfortable giving a larger amount if someone they knew well was personally involved in an organization. Few HNWP participants made a practice of giving large gifts in situations where they had simply heard of and/or read about an organization." [Section 1:9, Page 13]
What nonprofit does not need money to fund its overhead, or operating costs today? It is so often thought (or assumed) that donors (grant donors, major donors, etc.) won't or don't fund operating or overhead costs. This is simply not true. The study even found that major donors expect to help pay for these costs. To quote one of the surveyed participants "“ [S]omebody needs to pay for the overhead in order for them to provide their services, so why shouldn’t it be us? And if we believe in the organization, why shouldn’t we pay for their overhead?”" [Section 1:10, Page 14] Talk with your major donors or develop your more wealthy regular donors; they are not necessarily adverse at all to assisting the organization with its operating costs. Many participants in the study understood that these costs exist as much as programmatic costs.
As I've said repeatedly in this blog, "The most common trajectory is a transition from early hands-off donations to more focused giving.5 Increased focus is most typically associated with greater involvement in an organization." [Section 1;19, Page 23 of 32] Nonprofits who do not think they have access to wealthy donors or potential major donors; or who do not choose to develop their wealthier donors are simply leaving money on the table, and which nonprofit can afford to do that? We, especially as fundraisers, need to listen to our donors (and potential donors and volunteers); and learn. Studies like these are a wealth of information. I have definitely learned new information from this study, as I know that you will, as well.
The URL for the study's findings (report) is: http://www.impact.upenn.edu/UPenn_CHIP_HNWP_Study.pdf
In the September 11, 2008 "News Updates" post on The Chronicle of Philanthropy's site, in her article, New Study Sheds Light on What Wealthy Donors Care About; Many Say They Will Support Operating Costs, Holly Hall summarizes "I'm Not Rockefeller" a survey conducted by the University of Pennsylvania’s Center for High Impact Philanthropy. The Center interviewed 33 donors who, donated an average of 1.5million each year. Click the study's name (in this paragraph, above) to access the study findings report.
To quote Hall, the survey " was aimed at providing insight into how the nation’s wealthiest donors choose the charities they support, how they obtain information on those organizations, how they assess the impact of their gifts, and the roles they see themselves playing in nonprofit organizations."
To quote the Executive Summary of the findings, "What we found were a set of diverse and evolving practices, a predominant reliance on peers for information, a narrow and negative view of evaluation (despite a strong desire to make a difference), and difficulty with exiting established relationships with nonprofits, perhaps because the transaction costs of “breaking up” seem too high. To our surprise, we also found that nearly a third of the study participants do not think of themselves as “philanthropists,” despite giving an average of nearly $1 million annually." [Page i]
The Executive Summary wraps up by commenting on the reason for the study; the Center for High Impact Philanthropy wants to understand what today's major donors needs are, in order to determine how the Center can gather, package, and disseminate the information that donors need. To again quote the Executive Summary, "Many [donors] expressed a reluctance to investigate the effectiveness of potential recipients for fear of inviting unwanted solicitations or appearing distrustful or overly demanding of the nonprofits with which they already had relationships. Most did not know about or refer to the myriad academic and nonprofit resources in their areas of interest." [Page i] So, the study was fruitful and the Center now has its work cut out for itself. We, who work for nonprofits, can consider the same task before each of us. We need to make it easy for the wealthy, who would potentially give in larger amounts, to give to the nonprofits we work for. The way to do this is to listen to the donors and also learn.
I know that you know this; you've heard it over and over. Relationships are REALLY how to raise larger donation amounts. To quote the study, "HNWP participants indicated that their criteria for philanthropic giving were deeply informed by their social capital. The criteria they most frequently cited – apart from an interest in or passion for a subject – were personal involvement with an organization (or the involvement of someone known to them) and the ability to influence a tangible program or project related to a passion or interest. These factors were especially important at the time of an initial gift. Some HNWPs told us that their involvement in an organization was an absolute precondition to donating what they considered larger gifts. Others were comfortable giving a larger amount if someone they knew well was personally involved in an organization. Few HNWP participants made a practice of giving large gifts in situations where they had simply heard of and/or read about an organization." [Section 1:9, Page 13]
What nonprofit does not need money to fund its overhead, or operating costs today? It is so often thought (or assumed) that donors (grant donors, major donors, etc.) won't or don't fund operating or overhead costs. This is simply not true. The study even found that major donors expect to help pay for these costs. To quote one of the surveyed participants "“ [S]omebody needs to pay for the overhead in order for them to provide their services, so why shouldn’t it be us? And if we believe in the organization, why shouldn’t we pay for their overhead?”" [Section 1:10, Page 14] Talk with your major donors or develop your more wealthy regular donors; they are not necessarily adverse at all to assisting the organization with its operating costs. Many participants in the study understood that these costs exist as much as programmatic costs.
As I've said repeatedly in this blog, "The most common trajectory is a transition from early hands-off donations to more focused giving.5 Increased focus is most typically associated with greater involvement in an organization." [Section 1;19, Page 23 of 32] Nonprofits who do not think they have access to wealthy donors or potential major donors; or who do not choose to develop their wealthier donors are simply leaving money on the table, and which nonprofit can afford to do that? We, especially as fundraisers, need to listen to our donors (and potential donors and volunteers); and learn. Studies like these are a wealth of information. I have definitely learned new information from this study, as I know that you will, as well.
The URL for the study's findings (report) is: http://www.impact.upenn.edu/UPenn_CHIP_HNWP_Study.pdf
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