Marc A. Pitman's Blog, page 16

Shifting focus in crowdfunding

This week, international crowdfunding expert Anita Gallagher came to The Nonprofit Academy to teach us the latest trends on successful crowdfunding.

The shift in messaging may surprise you.

Appealing to the Head or Heart?

For a long time, nonprofit fundraisers have wrestled with whether we should appeal to people's heads or hearts.

The first inclination is to appeal to the head. Inexperienced fundraisers think this approach makes the most sense. That if you give people enough information, you'll convince them to give.

It doesn't work. Awareness is good, but it doesn't inspire action.

The next inclination is to appeal to the heart. This is better. Human beings make decisions emotionally. Even the most logical people make decisions with emotions. They're just faster at rationalizing their emotional decisions than the rest of us.

In crowdfunding, you're wanting to inspire people to take action now. To pull out their credit card and enter that information on to a giving page.

Identity is the next frontier

As she's been doing multiple crowdfunding campaigns around the world with Hispanics in Philanthropy and through her participation on the board of Giving Tuesday, Gallagher said the most effective messaging is really to the donor's identity. Speaking to who she is. What she believes.

Gallagher says in crowdfunding that is what inspires a donor to take action. Better still, it inspires a donor to share with her friends that she's taken action. She becomes an ambassador, a promoter of your fundraising campaign.

Crowdfunding Audit

As you look at your past crowdfunding results, try to identify your messaging. Was it focused more on the donor's head, heart, or her identity?

And experiment with your messaging to see what works best with your audience.

You see, donors don't join your nonprofit. Donors give to nonprofits that reflect their own values.

Are you letting your donors see their values reflected in your communications?

Gallagher gave so much great information in her training. NPA members can view the entire training and download the slides at: https://thenonprofitacademy.com/trainings/crowdfunding-greater-giving/. Not a member yet? Join today from just $19!

The post Shifting focus in crowdfunding appeared first on FundraisingCoach.com.

Across the Generations: 5 Tips for Fundraising to All Ages

As far as supporters, nonprofits are experiencing an unprecedented generation span. The sheer number and variety of generous givers is amazing, but only if your nonprofit can access them.

While engaging supporters across generations is crucial during even normal operations, it’s especially important during uncertain times.

Turning to current events, we can see that the COVID-19 pandemic is wreaking havoc across the globe, and nonprofits are more essential than ever to fill in gaps in the pandemic response. During this time, many nonprofits find themselves faced with a constituency in need and unsure about their fundraising abilities during a time of economic downturn.

Engaging the full breadth of your supporter base, each and every potential giver, is more necessary than ever before. This guide will explore the following tips to boost supporter engagement across generations:

Stay up-to-date on current events.
Research your target demographics
Use a variety of communication methods.
Offer multiple giving methods.
Bring in outside assistance.

Let’s get started.

Stay up-to-date on current events.

There’s no denying that the world around us is undergoing massive changes, and will continue doing so. 2020 was already set to be a super-charged year for nonprofits— with the Election Effect in full swing— and now the COVID-19 pandemic is sweeping the nation. Your organization is likely feeling the effect whether through increased needs in your community, a temporary decrease in fundraising capacity, or even an increased difficulty with communications.

It goes without saying that your supporters are feeling the pressure, as well. With the economic downturn and general unease, saving is a natural inclination across all generations. It’s up to your organization to keep a hand on the pulse of your constituents, from Boomers to Gen Z, and assess their ability to give in light of current events. 

When fundraising in the age of COVID-19, understand that your focus will have to shift. However, while events will be halted (or moved online) and the economy will slow— your supporters’ philanthropic nature will still be there. 

Research your target demographics.

When you’re trying to reach any specific subset of supporters, whether it’s to increase your major gifts or engage the younger generations, it’s important to begin with research.

Nonprofits are in a unique position lately, interacting with as many as 5 different generations at any given point (from the Silent Generation to Gen Z)— each as different as the one preceding it. Innovations in technology mean each generation was raised in a drastically different atmosphere and as a result, has unique motivations and interests.

Understand that expanding engagement across generations is more than just sending out a new, “hip” marketing campaign. In fact, you should research the motivations and preferences of each generation (check out this graphic for a quick overview) and personalize your efforts over the coming years.

You could even build multi-generational engagement into your nonprofit strategic planning and reframe your entire strategy going forward with the effort in mind. After all, modern fundraising is built on multi-generational engagement.

Use a variety of communication methods.

Once you’ve researched your target demographics, begin adjusting your methods to target specific groups. Let’s start with communication.

Each generation has different preferences when it comes to communication, so using a multi-channel strategy is your best bet to reach them all. Consider leveraging the following communication platforms:

Direct mail. Don’t neglect direct mail in the tech-saturated world. A compelling gift request letter can still go a long way with your less tech-savvy supporters.
Your website. This is often the first resource givers check when looking for information. Make sure it’s up-to-date with your latest initiatives and opportunities to get involved.
Social networks. Social networks are a powerful tool to reach your younger supporters. As far as best practices, choose a few platforms (such as Facebook, Instagram, or Twitter) and aim to create a two-way conversation.
Email newsletter. Email is a great way to give a lot of information to supporters in one communication effort. Make sure your newsletter is concise, scannable, and links out to your other online resources.

Communicating across multiple platforms can get confusing, especially if you’re juggling more platforms than you ever have before. Here are two key tips for making sense of the busy communication schedule:

Only use methods proven to work for your supporters. Use your research to understand which platforms have the highest response rate for generations within your supporters. For example, you may discover that certain social networks have a higher reach while your email newsletter isn’t quite as popular.
Create a plan for how these platforms will work together. Avoid sharing the same content, at the same time on every platform. Ensure that supporters receiving information through multiple platforms aren’t deterred by repetitive communications.

To engage all generations in your fundraising, each group needs to know about your opportunities to give. A multi-channel strategy is how that happens.

Offer digital giving methods.

Just as supporters across generations prefer to communicate through different methods, they approach giving in a similar manner. Ensure that supporters can give when and how they want by accepting digital gifts.

This is especially crucial in a time like now, during the COVID-19 pandemic, as social distancing has become a necessity and in-person check writing has taken the backseat.

This isn’t to say that personal conversations are no longer the most effective method of donor stewardship, but rather that you can use tech to improve those efforts during this time. Set up an online giving page if you don’t yet have one, and begin directing supporters to that resource. Generations spanning the ages will appreciate the opportunity to give in a safe and efficient manner.

Get started by exploring a few giving page best practices in this guide.

Bring in outside assistance.

Navigating multi-generational giving can be overwhelming in itself, even before the current worldwide pandemic is factored in.

If your organization is feeling overwhelmed navigating this time, it might be helpful to bring in outside assistance. This could mean consulting peers in your field, those who are likely confronting the same challenges as you are. Or, it could mean bringing in a fundraising consultant.

To learn more about fundraising coaching, check out this page on executive coaching and the Ask Without Fear! program. Further, explore this guide to fundraising consulting fees and other associated costs.

It’s important to realize that your nonprofit isn’t alone in this time— there are generations of supporters understanding the necessity of nonprofit work now more than ever. By engaging those supporters across generational lines, your nonprofit will survive and do great work even in the most uncertain times.

The post Across the Generations: 5 Tips for Fundraising to All Ages appeared first on FundraisingCoach.com.

12 tips for fundraising during the Covid-19 coronavirus pandemic

With more and more countries, states, and cities enforcing at-home isolation and the financial markets falling, fundraising is definitely harder.

But of the worst things I kept hearing from clients was "We don't think this is the right time to ask for money."

My general response? How dare you make a giving decision for a donor! It's up to the donor to tell you whether she wants to give or not. Giving is her decision, not yours.

In the past week, I've seen nonprofits receiving tens of thousands of dollars - even small ones. More than that, people are giving to help small businesses stay open. And people are even buying meals for each other and giving drink money.

There is a lot of money being given now.

This isn't to be crass or manipulative. Past experiences show us that nonprofits that ask now will fare better in the future. They'll remain top of mind for donors. And they'll emerge from the economic downturn faster.

If you don't believe me, watch the special Free Review Friday Steven Screen did last week.

Free Review Friday: Special Coronavirus Covid-19 Edition

Last Friday, Steven Screen and Chris Davenport did an amazing 2-hour video reviewing crisis email and direct mail appeals. It is chock full of amazingly helpful tips. You can see it at: https://worklessraisemore.com/free-review-fridays-27-covid-19/

(Two hours is long. I'm not sure how he did it. Or how Chris was able to get him the comments from all the places they were streaming to! If you want to view it more quickly, click on the "gear" image, you can change the speed. Steven is talking fast but I still listened at 1.75x speed.)

He offers so much good advice and experience in this video. And he walks through real-life solicitations nonprofits are planning on sending. You'll love it.

Fundraising Tips to Share with Your CEO and Board Members

One of the phrases Steven keeps using it encouraging us to "lean into donor generosity." I love his constant reminder that nonprofits are needed now more than ever. Donors get that. And are currently giving to it. That giving will slow but right now is a time to be asking.

Some other nuggets he says are:

Your donors are amazing and they want to help.
Let them decide what is relevant and important to them.
Crisis giving spikes and then slows. The slowing isn't about donor fatigue. It's about donor inattention and about the nonprofit's fundraising irrelevance.
Now is not the time to fundraise for the future. Fundraise for the crisis now.
Your job is to clearly state how your beneficiaries or your organization are being impacted by this situation. And how the donor can help.
If your most pressing issue is a shortfall in fundraising, tell the donor.
Send the emergency email. Resend it to people who didn't open it. Send it again. Send it every other day.
Keep asking until the data tells you to stop. NOT until your feelings tell you. When the appeals stop working, that's the data telling you to stop.
There are still LOTS of older people who haven't given because they don't give to emails. If you can get a letter out this week do it.
$25 is a low ask in an email. Average online gifts for many nonprofits is $80, $90, or even $100.
Don't let your unease with asking take a chance to make an impact away from a donor.
Now is NOT the time to send an "update on how we're responding to Covid-19." That is irrelevant to donors. Share a current need that they can act on.

And one of my favorites: in moments like we're in pretty good and fast will raise more money than perfect later. Reaching donors now is far better than waiting until things have calmed down. And even better than waiting until you get the wording 100% perfect.

Asking is full of integrity

What I love the most is that all of this is done in with complete integrity. You're only sharing the immediate impact that this crisis is having. And you're letting donors make the decision.

So go ask now, even in a time of this Covid-19 coronavirus. And only stop when the data indicates it. Not one lone angry donor or comment. Giving helps donors get some sanity in these uncertain times. So be sure to ask.

The post 12 tips for fundraising during the Covid-19 coronavirus pandemic appeared first on FundraisingCoach.com.

Avoid the 3 Biggest Mistakes of Fundraising in a Recession

The media is full of stories about how this Covid-19 coronavirus is impacting the economy. Gatherings are getting canceled. People are self-quarantining. And donors who are freaking out watching their investments shrink.

Last month, I shared some ideas on fundraising in an age of the Covid-19 coronavirus. Since then, stock markets have been on a roller coaster and oil producers are waging an ugly pricing war.

What is a nonprofit fundraiser to do? Keep calm. We've been here before.

Recessions and rumors of recessions

In my time as a nonprofit fundraiser, we've seen recessions related to the dot-com bust, the 9/11 attacks, and the housing market implosion around 2008 and 2009.

These times are not fun. But nonprofits can survive.

Back in 2008, I wrote a couple articles on recession proof fundraising and fundraising in a recession. These are still applicable.

3 Biggest Mistakes Nonprofits Make in the Face of a Recession

In times of economic flux, nonprofits learn how well they've really been doing at growing relationships with supporters. If we're basically just invoicing them, they'll fall away when money gets tight. But if we've been showing them the impact of their gifts, they're more likely to stay, albeit not necessarily at the pre-recession giving levels.

As we're in this uncomfortable time, remember to avoid these three things.

Becoming Pessimistic

As we watch the news and talk to others, it's really, really easy to let fear and the unknown paralyze us.

But we can't allow it to.

Our causes still need support. Especially as the economy goes wonky.

The top fundraisers are some of the most optimistic people on the planet. Not out of touch, but definitely optimistic. They see possibilities where no one else does. They are willing to try new approaches when others aren't. And they raise the funds to change the world.

Fear and worry is natural. Just don't let it consume you.

What to do: When you feel fear consuming you, get out a list of the people who've donated in the last twelve months. And start making thank you calls. "Hi, this is [Your Name] with [Your Org]. I just wanted to call to say 'thank you' for your recent support. Your gift is [what impact it's doing]." No ask. Just gratitude. Gratitude overcomes fear. Because gratitude rekindles hope.


Cutting fundraising and marketing budgets

This I've never understood. When money gets tight, the knee-jerk reaction seems to be to cut the fundraising and marketing budgets. It's like saying, "We have to drive across the country. So we are not going to put anymore gas in the tank."

Illogical. Nonsensical. And a sure fire way to raise less money. You'll blame it on the recession, but your under-funding the programs makes it a self-fulfilling prophecy.

A recession could be a convenient time to let go of staff or programs you haven't had the guts to let go yet. But don't stop there. Look for the right people for the positions you have.

What to do: Rather than cutting budgets and staff, seek to make the programs and people more effective. If you don't understand marketing, make sure your marketer does. Marketing touches done well can double as donor touches too. And if you're not a professional fundraiser, do not give in to the ego temptation to think you're an expert. You're not. Any more than you're an expert on brain surgery or rocket science. So seek fundraising experts. And listen to them. (Chances are, you already have them on your staff.) Learn from them why the best nonprofit storytelling for donor retention talks about the donor and your mission without mentioning your organization. And why the best fundraising letters aren't reserved like a business letter but are more chatty like with your aunt.

Apologizing for asking

In recessions, or the times before recessions, it can be very tempting to stop asking. We think we're being nice to donors. Giving them space. But we're not. There's nothing compassionate about not asking.

For many donors, giving is a key part of them feeling human. They can be generous, despite the scarcity around them. So ask.

And there's nothing compassionate about letting your organization go bankrupt. Your nonprofit was started because something was wrong. If that something is still wrong, the world needs your work. And that work needs funding. So ask.

Your ask will be different than before. Where it used to take 6 or 7 attempts to reach a donor, it is already starting to take 10 to 12. So be patient. And keep at it.

I call this "pleasant persistence". We're pleasantly polite, not letting any hint of irritation infect our attitude. And we're persistent.

This really does work. Back in 2009, in the midst of the greatest recession since the Great Depression, Milton Hospital had me in to train their board on how to ask without fear. At the training, the development staff passed out prospects names for board members to assign themselves to contact. The result? They increased their annual fund by 40% - in a recession!

What to do: Be pleasantly persistent. And avoid the temptation to make decisions for donors. You have no idea if a donor will give until she tells you. Your not asking is robbing her of the honor of making up her own mind. So be understanding, polite, and pleasantly persistent. People were still giving. And they will still be giving. It just might take more time than before the recession.


Challenging but not Impossible

This is a challenging time to be running a nonprofit. Belts will need tightening. Just be sure they're the right belts. And make sure you're measuring the right outcomes in both marketing and fundraising.

I recently heard a marketer say they couldn't put their whole television ad spend into the right target audience. When they invested it all where their best prospects were, their CFO felt they were wasting money. Why? Because he didn't see any ads. It didn't matter to him that he wasn't the right demographic. And he didn't watch the shows that their best prospects did. So this marketer knew they had to spend 80% of the ad budget on the right target audience but 20% on the CFO's shows so he'd feel the money was doing good.

As you look at where you can cut budgets, don't be like that CFO. Make sure you're measuring the right outcomes, not just feeding your ego. For example, an AHP study showed that hiring more successful fundraisers helped organizations emerge from the recession more quickly than their peers and with stronger donor relationships.

These times will be challenging. But they don't have to be impossible. Especially if you avoid these 3 most common mistakes of fundraising in a recession.

The post Avoid the 3 Biggest Mistakes of Fundraising in a Recession appeared first on FundraisingCoach.com.

Leadership tensions in fundraising

Leaders are an amazing group. They regularly tackle issues no one else is willing to. And, in the midst of being pulled apart by multiple interest groups, they figure out which priorities to focus on.

Leadership is not for the faint of heart!

Add to that the tensions created in a fundraising context. In a business, customer service drives your revenue. In a nonprofit, serving your clients is why your organization exists. But it doesn't increase funding. You have to go to a whole different set of people called "donors" and ask them to give to your cause.

Although this is exactly how nonprofits have always worked, this still seems to take most nonprofit leaders by surprise.

All of these tensions would be hard enough to cope with. But the reality is, the expectations of leaders are in a profound period a time of change. This is exciting and will lead to healthier organizations. But it makes leading even harder right now.

7 Tensions Every Leader Needs to Navigate

A recent article in the Harvard Business Review does a great job of identifying 7 tensions leaders need to navigate. The tensions are

Leadership Tension 1: The Expert vs. the Learner


Leadership Tension 2: The Constant vs. the Adaptor


Leadership Tension 3: The Tactician vs. the Visionary


Leadership Tension 4: The Teller vs. the Listener


Leadership Tension 5: The Power Holder vs. the Power Sharer


Leadership Tension 6: The Intuitionist vs. the Analyst


Leadership Tension 7: The Perfectionist vs. the Accelerator

The authors describe each tension with how leaders are traditionally expected to be contrasted with the new emerging expectations of leaders. The explanations of all seven are well worth reading. You can find the article at: https://hbr.org/2020/02/every-leader-needs-to-navigate-these-7-tensions

One that I think is particularly important for leaders of nonprofits is the first: The Expert vs. The Learner.

Expert vs. Learning as a Nonprofit Leader

In our career, the more expert we become about something, the more responsibility we are given. So it's natural that nonprofit leaders want to "master" fundraising.

The problem is

Leaders think their "preferences" are the correct measure of fundraising expertise.
Being an expert as modeled by this type of nonprofit leader becomes "static." It doesn't allow for experimentation. And it leaves no room for failure.

Fundraising is a Professional Field, Not Your Personal Preference

If you were going to open a McDonald's franchise, you'd study all the ways to make it successful. If you were to open a law office, you would learn how to attract and retain customers. You would do this with any endeavor.

Except nonprofits. And nonprofit fundraising.

Leaders don't seem to do this with fundraising. Instead, they study the services the nonprofit provides, thinking that if they get that right the money somehow "just come in."

That blind spot leads them to erroneously judge fundraising based on their personal preferences rather than the studies that have been done in the field. Nonprofit CEOs often say things like, "That letter isn't good. It needs to sound more business-like. And get rid of the P.S. That isn't professional." But the ongoing research clearly shows that a chatty, less formal, person-to-person letter with a P.S. raises more money than letters that are boring and business like. (A huge problem with "business like" letters is that the letter is centered around the nonprofit and how great the nonprofit is at doing its work. Truly successful fundraising is centered on the donor and how great the donor is when giving to the work.)

So the solution here is that nonprofit leaders need to learn from true fundraising experts, not lead based on personal preference. (Can you imagine going into heart surgery and telling the surgeon how you'd prefer she'd use a different scalpel?)

Innovation Involves Failing

Even if you do find the top fundraising experts and you're making your face-to-face, fundraising letters, and special event asks correctly, you still need to test. If you're constantly telling your fundraising staff to "find new donors," you need to give them time and money to learn how "new donors" respond. That may involve testing social media ads. That may pursuing some major donor prospects that ultimately don't give a penny. That may throwing an event that doesn't raise money in its first year.

Being a learner as a nonprofit leader means encouraging your team to learn too. Not "betting the farm" that a new approach is going to work. Not something that will risk all your funding. But they should be testing a different direct mail approach. At best, it works better than your existing direct mail. At worst, it confirms what you're doing is really the best for your organization.

The solution here is to define small tests or controlled projects that allow testing true innovation without causing catastrophic failure.

Leadership is Living in Tension

Leadership is living in a complex web of tension. And for nonprofit leaders needing to fundraise, a large part of that tension is the tension of leaning on expertise in a way that encourages learning.

The good news is, when you do fundraising correctly, it's not the manipulation and deceit you are afraid of. Fundraising is genuine communication with the people who are growing passionate about the impact your nonprofit is making. You'll find you're not "going to the well too often" but that you're adding value to the lives of those who support you.

You'll even find that fundraising becomes enjoyable.

But you have to live through the tension first.

For a quick, somewhat humorous, video on the stress of being a nonprofit leader, go to: https://youtu.be/55FDko2gVC0

The post Leadership tensions in fundraising appeared first on FundraisingCoach.com.

Fundraising in an age of coronavirus (Covid-19)

If you’re one of my private coaching clients, you’ve already heard me ask:

what preparations are you making for the possibility that your fundraising event might be canceled due to the coronavirus (now officially called Covid-19)?

The numbers of coronavirus seem to still be low outside of China. But reports are that the current total numbers dwarf the SARS epidemic. And today’s report from China is not that the numbers will “go down” but that they’ll "plateau." So this virus seems to be around for a bit.

What are you doing to mitigate its impact on your fundraising?

Two Ways the Coronavirus Could Impact on Fundraising

Here are two major ways the coronavirus (officially called Covid-19) could impact your fundraising.

Jeopardizing your fundraising events

The news is filling with a growing number of conferences and events that are being canceled due to health concerns stemming from the coronavirus outbreak. There was the 100,000 person conference in Barcelona. And Facebook’s global conference in San Francisco. Those are just two.

What are you doing now to insulate yourself from a problem with your event?

I would keep on asking for sponsorships. But I'd be looking for ways donors can experience the benefit of their gift even before the event. Could you do a Facebook Live with them? Or included them on a podcast?

One of the best ways to know what you might do, is to ask them. Donors will tell you what they’d like. People way want to inspire others to give. Companies may want to be seen as generous by their customers and prospects. But you'll never really know unless you ask.

They may even tell you that they don’t need any recognition. Which could be a clue that they are giving because of your nonprofit, not solely because of your event. Knowing that could help you in your relationship building and future asks.

The economy

The other impact the coronavirus could have on your fundraising is the economy. For months, headlines have been suggesting the global economy is on the path to a recession. More recently, companies like Apple are cutting their earnings forecasts because their factories in China aren’t able to produce the way they used to. (It’s hard to produce goods when people are in quarantine.)

So what are you doing to head this off? If you normally do your major fundraising in the fall, it might be wise to start ramping it up now. The problem with a recession is two-edged - economic and psychic. When the economy goes down, many do have less money to give. But many more experience "psychic poverty." They have money to give, but they are less willing to give it because they feel economically vulnerable.

Another thing to consider is broadening your fundraising. If you normally only focus on major gifts, it might be wise to start doing a fundraising letter campaigns and monthly giving.

These are only preliminary thoughts. But it's important to start thinking about them now. Just because the coronavirus isn’t big in your country doesn’t mean you’re immune from feeling its affects. (Click here to tweet that.)

What about you?

Are there other ways the coronavirus might impact fundraising? Are you doing things to mitigate the possible negative impact of the coronavirus (Covid-19) on your fundraising? Or, I suppose, are you seeing it actually help your fundraising be more effective?

Let us know in the comments.

The post Fundraising in an age of coronavirus (Covid-19) appeared first on FundraisingCoach.com.

Donor Data: 5 Data Tips for More Efficient Fundraising

Each and every interaction your nonprofit has with supporters comes with a data point. Whether that’s an opened email newsletter, a social media comment, or the many digital donations made during your year-end fundraiser, these interactions provide a wealth of information.

If you’re not leveraging this data for more efficient fundraising, you’re missing out.

Donor data is essentially a free resource providing insight into your supporters’ lives. Their interests, their preferences, their giving abilities— all of this can be gleaned from donor data. 

Not only does this data allow you to fundraise more effectively (providing a guide for your efforts), but it also allows you to provide more opportunities to best suit your supporters. From informing them of ways to give more without actually paying more out of their own pockets, to crafting events that might interest them, a deep-dive in donor data positively impacts your supporters as well as your nonprofit.

Looking at your raw donor data and pulling any actionable insights from it might seem overwhelming! However, don’t fret! We’ve collected five data tips to improve your fundraising:

Collect donor data points relevant to your organization.
Store data in the right CRM for you.
Establish clear data hygiene practices.
Segment your donor data for heightened insights.
Make the most of your data insights.

Apply these five tips and you’ll be on your way to more efficient and effective fundraising. Are you ready to make the most of your donor data? Let’s get started.

Collect donor data points relevant to your organization.

There’s no denying that the ability to easily and conveniently collect and review donor data is game-changing for nonprofits of all sizes. There’s an unprecedented amount of information at your fingertips that you can’t help but wonder— is it possible to have too much of a good thing?

The answer? Yes! It’s possible to collect information on virtually every interaction your organization has with its supporters, but some of that information is simply irrelevant. When the irrelevant information is tossed in with the helpful, it’s significantly harder to glean relevant, actionable information.

Narrow down the data you’re collecting to make sure each point is useful, rather than cluttering your supporter database. A few great examples are:

Basic personal information, such as name, age, email address, workplace, and location.
Advanced personal information, such as hobbies, interests, and giving preferences.
Previous nonprofit engagement, including donations, volunteer efforts, event attendance, and participation in advocacy campaigns.
Business involvement, such as employment information and business ownership or other considerable investments.
Political giving, such as candidates and causes supported publicly in the past.

Ultimately, you should collect the data that best informs your nonprofit’s efforts. For example, information on event attendance is particularly valuable for nonprofits that host many experiences throughout the year. As you read, however, you’ll find areas where each of the above data types are generally helpful for all nonprofits.

Store data in the right CRM for you.

For a quick refresher— nonprofit data is stored in a constituent relationship management (CRM) system. This software is the ultimate donor database, storing information on every interaction you have with supporters, whether an email response or a major gift.

If you’re an enterprise-sized nonprofit, you may be considering a Blackbaud vs. Salesforce comparison. However, even though those large-scale platforms are marketed as be-all-end-all solutions (and they are for some organizations), they might not be the right fit for every— or even the average— nonprofit. 

Luckily, there are CRM systems designed for nonprofits of all sizes, and with some research, you can find the perfect solution for your organization. Whether you’re simply looking to update your services or are on the market for the first time, make sure your CRM has the following features:

Donor dashboard that’s easy to navigate, comprehend, and customize.
Comprehensive donor profiles with constituent timelines and other engagement metrics.
Multi-platform communications tools, such as email distribution and even direct mailings. 
Data hygiene tools, to handle duplicates and entry inconsistencies.
Comprehensive fundraising tools or the ability to integrate with your other solutions (ex: online fundraising software, payment processor, email marketing tool, website).

Donor data is a powerful asset to build real relationships with your supporters, but only if it’s securely stored and easily accessible. Taking time to research the right CRM solution for your organization is the first step to that.

Establish clear data hygiene practices.

Data hygiene refers to the continuous practices your nonprofit takes to keep your data “clean,” or with as few errors as possible.

With any transfer of information, inaccuracies can be introduced at any point in the process. Just think of the game “Telephone!” This holds true for information flowing into your donor database. Names, numbers, addresses— one slip of a typing hand can lead to inaccurate information in your database.

Because your nonprofit is making decisions and soliciting support based on this information, it’s important that it’s accurate. Create ongoing practices for handling:

Duplicate entries, such as one donor recorded twice in your database.
Inaccurate entries, such as when a donor’s phone number or email address is recorded incorrectly.
Outdated entries, such as when a donor relocates and their address changes.
Abbreviations and common terms, such as standardizing the entry of addresses (“Street” vs. “St.”) and titles (“Mr” vs. “Mr.”).

Once you set these standards, communicate them clearly to your staff. The goal is to continuously use best practices when handling donor data to prevent the need for major clean-up efforts in the future.

Remember: There are a few things you can do before the data even enters your CRM to keep it as clean as possible. For example, one donation page best practice (check out the top tips here) is to only ask for as much information as you need. This is convenient for your staff, as they have less information to comb through later— plus, your donors will appreciate the quick giving process!

Segment your donor data for heightened insights.

After you’ve collected, stored, and cleaned your donor data, it’s time to start inspecting it for actionable insights! However, your raw data alone will simply look like a jumble of names, dates, and numbers.

The easiest way to glean actionable insights from your data is to segment it. Segmentation is the process of identifying characteristics shared by some of your donors and grouping them accordingly. This separates your data into digestible chunks to work with, guiding how you interact with those supporters.

Common segments include:

Gift size and frequency.
Preferred contact method.
Event participation.

As with the data points you collect, segment your donor data according to what your organization is working toward. For example, if your goal is to identify major donor prospects, you’ll want to contact segments with a financial ability to give in high amounts and a demonstrated loyalty to your nonprofit.

This is called identifying a donor’s capacity and affinity to give. Check out this DonorSearch article to learn more.

Make the most of your data insights.

Finally, you should act on the insights your data revealed. Let’s look at a few data-fueled, efficient ways you can raise more for your nonprofit:

Make the perfect ask. Asking for money is stressful for some fundraisers! Asking for the perfect amount, one that reflects the amount supporters have given in the past, can alleviate some of that stress.
Begin the major giving process. Identify those supporters who are most likely to make a major gift and begin stewarding them accordingly. One-on-one conversations and informational meetings are a great place to start!
Suggest recurring gifts. If you notice some supporters are giving multiple times throughout the year, mention your recurring giving program to them. Supporters who enroll in recurring giving programs tend to give more overall, and they provide a regular flow of support to your organization!
Seek corporate philanthropy programs. Matching gift and volunteer grant programs are powerful ways to increase the funding coming into your organization with no extra spending on behalf of your supporters. If you know some donors might be eligible, you should proactively promote these opportunities to them! Learn about corporate giving programs through this Double the Donation guide.
Identify planned gifts opportunities. Planned gifts are those scheduled for a later date, most commonly after a supporter has passed away. If you notice an incredibly loyal supporter looking for more ways to give back, consider starting this conversation.
Plan events to success. This one is pretty straightforward. If you notice a lot of your volunteers and event attendees are located in similar areas, plan an event for them to engage with.

When you truly understand your donors, you can tailor your fundraising strategy to fit their interests and abilities. Donor data is key to fundraising that is more efficient for your staff and more accessible for supporters.

With a bit of data hygiene and a watchful eye, your donor data can make fundraising a better experience for your staffers and donors alike.

Luckily, it doesn’t have to be a stressful process, even if you’re not a data-minded individual! Use these five tips and organize your way to more efficient fundraising today.

The post Donor Data: 5 Data Tips for More Efficient Fundraising appeared first on FundraisingCoach.com.

Create a system for expressing gratitude

Do you have a system for expressing gratitude? For telling your nonprofit's donors how grateful you are for their support?

In my weekly coaching email, Fundraising Kick, we've been looking at systems we use in fundraising. Using a system allows you to make a decision one time, rather than needing to make decisions with each and every donation that comes to your organization.

One of the most important systems is how you thank donors. Unfortunately, it's also one of the easiest systems to ignore. After all, no donor is going to pound on your door saying, "Where is my thank you?!"

They'll just move on to another nonprofit that does appreciate their giving.

A System for Thanking – Expressing a spirit of gratitude

If your organization relies in any part on donations from other people, you should share your gratitude with them. You couldn't do what you do without their support. So thank them!

As basic as that is, I know organizations that look at each gift and wonder if they should thank that person. They ask questions like: "Is this gift large enough to warrant a thank you?" "Are we wasting our money mailing a thank you to them?" "Who is the right person to be thanking?"

Every single time they get a gift. Don’t be that organization. Do the hard work of creating a system about who gets thanked and by whom. Know what level gifts get what kind of personalization. Which levels get notes. Which levels get calls.

I happen to believe that every gift should get a thank you. No matter how small it seems to the nonprofit. I remember once getting three $1 bills at the hospital foundation I ran. Those three dollars were not a huge part of our overall fundraising. But they were a huge gift to the 8-year old child who give them.

We never know who is stretching to support us. So take the risk: thank every one.

And when I say “thank you,” I mean in addition to the gift acknowledgement. The gift acknowledgement is sort of a “Yep, the credit card processed” or “Yep, we received your check.” That is an important communication. But I believe a thank you should be sent separately.

A Simple System for Thanking

What systems you’ll set up are up to you. But sometimes it helps to see what others have done. Here’s part of a gratitude system I helped one of my private coaching clients create:

Donors will be sent a gift acknowledgement letter or receipt. While a $25 donation level cut-off was discussed, we agreed that any gift sent to the Clinic would be acknowledged.
Levels of Stewardship

Gifts of $25 – quick note of thanks by the development director
Gifts of $100 – thank you call by the development director
Gifts of $500 – note of thanks from executive director
Gifts of $1000 – note of thanks from the board chair
Gifts of $5000

written invitation to visit on the day sponsored
thank you call by the board chair


Gifts of $25,000 – (full week of surgery) treated on a case-by-case basis

You can see that this client, a small spay and neuter animal clinic, tied gift levels "day" and "week" sponsorships. You may find it helpful to break down gift levels in more tangible ways like they did. But you don't need to.

The real take away is that they made the decision about who was responsible for thanking beyond the gift acknowledgement. Rather than wondering "Who should reach out" with each gift, they could now just run a list each week or each month.

Systems Save Time

Do you see what peace of mind comes from doing the hard work of making these decisions one time? Now they can get on with the business of thanking their donors!

What systems do you have for showing your donors gratitude?

The post Create a system for expressing gratitude appeared first on FundraisingCoach.com.

5 Ways to Keep Motivation After the Year-End Giving Season

There’s no denying that year-end giving is a powerful force. After all, some reports suggest as much as one-third of all annual giving occurs in December alone!

However, once the final numbers are calculated and the year-end campaigns end, what happens then? You’ve just completed a massive campaign, hopefully with massive success as well. The energy of year-end giving is palpable, but does it all end when December does?

It doesn’t have to! In fact, it shouldn’t. There are ways for your nonprofit to maintain the momentum of year-end giving well into the new year. If executed successfully, you can build on that momentum and continue growing from it going forward. Instead of using the year-end season as a once-a-year success, it can become a capacity-building launchpad for your organization year after year.

You might be worn out after the year-end season, and that’s understandable! The following tips for maintaining the year-end giving season momentum span a wide range of intensity levels— whatever your nonprofit, staffers, and donors are capable of right now. Check it out:

Reflect on what was accomplished.
Host an event.
Utilize your online presence.
Engage donors in non-financial commitments.
Examine data for new insights.

You’ve just finished with the biggest giving season of the year. Congratulations, that’s a massive feat! However, don’t relax just yet— you’re in the perfect position to build off that momentum and grow your fundraising capacity going forward. The following tips are a great way to start, so let’s dive in!

1. Reflect on what was accomplished.

Before you do anything else— or ask for a single donation— you must reflect on the work you just completed. The year-end giving season is a major accomplishment for your staffers, volunteers, and donors. It’s important to reflect on the milestones reached with a humble, grateful rundown.

Don’t use this as a fundraising appeal. Instead, focus on showing your donors you appreciate them to truly build relationships. Let’s break down an example to highlight a few best practices when it comes to making these recap communications stellar:

“Thank you for participating in our annual holiday gift drive. We’re amazed at the support you’ve provided, and we think you might be too.”

Begin with a “Thank You.” Then, lead into a longer discussion of all that was accomplished.

“In total, you’ve helped provide 200 gift baskets, 300 winter coats, and 400 hats and mittens sets. That’s all because of you!”

Get specific with details on all that was raised. Remind donors that it was all fueled by their gifts.

“With these supplies, 200 families in our local community received necessary warmth (and a little holiday cheer!). We cannot even begin to express our gratitude!”

Demonstrate impact. Show donors exactly how their gifts made an impact. Can you put a face to the receiving end? Do it!

A thank you should go out as quickly as possible. And, according to research by lead philanthropy researcher and chief executive at The Philanthropy Center Adrian Sargeant, an additional impact report should be sent within 90 days.

While you’re not asking for donations with this communication, keeping supporters in-the-loop regarding your year-end fundraiser’s success and concrete impact will go far in future donor retention. When these supporters see that you’re doing good work with their gifts, they’re going to want to keep giving going forward.

2. Host an event.

You probably hosted an event (or two or more) during this past year-end giving season, so it’s understandable if you feel a little worn down in the event-planning realm. And, in all of the chaos of new year goals and resolutions, your donors might be feeling a bit worn down as well.

Events are a great way to build excitement in your donor base and encourage giving. However, for an event to be successful after such a busy fundraising season, it needs to be one of two things: 1) Laid-back and lowkey, or 2) Exciting and energizing.

Consider the following examples:

A year-end wrap-up/donor thank-you event. Invite donors to a luncheon, field day, or movie night in their honor. Ask donors to search their closets for new and gently used running shoes that they’re no longer using to donate through a running shoe drive (one of the unique fundraising ideas in this guide). This event requires minimum financial and time commitment from your donors while also raising money for your cause.
A new year kick-off event. Celebrate the new year of fundraising with an extravagant fundraising event, similar to how the Walker’s Legacy Foundation did earlier this year. At the end of the event, reveal how much has been raised for your cause already with just one event. This carries over the excitement of the winter giving season and sets your fundraising off on the right foot in the new year.

Evaluate your staff and your donor base for which type of event would best suit them. However, remember that “laid-back” and “exciting” don’t have to be mutually exclusive— a combination of the two ideas might be the best option for your nonprofit.

3. Utilize your online presence.

Did you know that 55% of people who interact with nonprofits on social media networks end up taking action, whether that’s volunteering, giving, or otherwise participating? Communicating with supporters online is a relatively low-cost practice, but it can have major rewards.

As you head into the new year, focus on revamping your online presence and engaging your supporters through that method. If you’re completely new to using social media and other online tools in your strategy, check out this DNL OmniMedia guide to building a nonprofit digital strategy. Otherwise, simply evaluate your processes for the following:

Are there social networks where your nonprofit has been particularly successful? Are there networks you’re not using, that you should be? Focus on connecting with supporters on those platforms.
Does your giving page have a high conversion rate? If not, consider the many ways you can optimize it so it will more successfully convert visitors into donors.
Have you created clear connections between your various online outlets? It’s important that however a supporter discovers you, whether through social media or your website, that they’re able to conveniently access your giving page.

Online engagement requires little physical planning for your nonprofit, so consider hosting an online-only campaign in the early months of the year. This gives your staffers some time to relax and plan for larger initiatives later in the year, while also ensuring you stay front-of-mind among supporters previously engaged during the year-end giving season.

4. Engage donors in non-financial commitments.

Maintaining momentum after the year-end giving season doesn’t necessarily mean maintaining fundraising momentum into the early months. It can also mean maintaining general excitement and dedication surrounding your nonprofit, and the easiest way to do that? Engaging supporters as volunteers.

Maintaining a volunteer program is valuable for many reasons, not the least of which because it provides your nonprofit with needed helping hands. However, someone interacting as a volunteer at your nonprofit also gets to experience your organization at work, building their trust in and appreciation of what you do each day. These programs are both helpful now, providing needed resources, and helpful later as the perfect pipeline to lifelong support.

Engaging supporters as volunteers can also have a positive financial impact on your nonprofit through volunteer grant programs. Through these programs, companies pledge to make a donation to approved nonprofits corresponding to volunteer hours worked by their employees. This is a popular type of corporate philanthropy and one of the easiest to start leveraging if you already have an active volunteer program. For more information, check out this listing of the top volunteer grant companies by 360MatchPro.

5. Examine data for new insights.

The year-end giving season likely brought in the largest number of donations your nonprofit received in one period all year. That means that it was probably the highest influx of donor data you received all year, as well!

Examine that data for new insights on your donor base, such as:

New supporters. Did you have any first-time donors to your year-end campaign?
Regular givers. Did your regular supporters contribute? Did you have new donors convert to recurring giving?
Potential major donors. Do you have any supporters with a high capacity and giving affinity, who might one day be interested in making major donations?
Lapsed supporters. Did any of your regular supporters choose not to give in your year-end campaign?

Instead of diving straight into fundraising in the new year, motivate your staffers with an examination of your year-end campaign’s data. Spend the early weeks of the year contacting donors accordingly, such as welcoming new supporters and beginning to steward potential major givers. Further, begin planning for fundraising efforts later in the year with these new insights.

This data is powerful for building real relationships with your supporters and can remove much of the guesswork for your staffers on how to best engage certain segments going forward.

The start of a new year is an odd time in nonprofit fundraising. You’ve just completed the biggest fundraising push of the year prior— year-end giving— and it’s important to maintain the motivation that the season began.

Though you’ve just completed the busy season, it’s important that you not rest yet! Whether it’s something as simple as cleaning up your online presence, or something more involved like hosting an event in the new year, the above tips should help you build off the year-end giving momentum going forward.

The post 5 Ways to Keep Motivation After the Year-End Giving Season appeared first on FundraisingCoach.com.

[Guest Post] Expanding Your Money Mindset

Changing the way you think about money is a vital key to becoming successful at fundraising. In this guest post, Andrea Waltz points out an important area for us to address. Andrea is the author of "Go for No! Yes is the destination, No is how you get there" - an important book in helping us reframe rejection. You can find more in her "Go For No! for Fundraising Success" training in the Nonprofit Academy or by going to her site www.goforno.com. On Twitter, she's @GoForNo. 

Expanding Your Money Mindset
by Andrea Waltz

It’s no surprise that our values, beliefs and thoughts about money – our “money mindset” – deeply influence every area of our lives, including our professional one. And it’s a wake-up call for anyone who asks for money.

Recently I read that everyone spends like a millionaire in at least one category and it seems that in every aspect of life, you can do it.

For example, did you know you can spend $43 on one cup of instant noodles from Harrods? If spending money on outrageous clothing is important to you, there’s a $10,000 diamond studded hoodie you can buy. A Tiffany brand sterling silver tennis ball can is just $1,500. If you love travel, you can stay in the Royal Penthouse Suite at Hotel President Wilson in Geneva for $65,000 a night. If you’re a consumer of supplements, the most expensive Ginseng plant ever purchased cost $400,000.

Can you imagine being the salesperson for some of these things? And if you were, how would your beliefs about these items or the money it takes to buy them, influence your actions during the sale? You’d have to learn not to place your own spending limits onto the customer.

The same can be said when it comes to asking for money. You can’t put your own money in your donor’s wallet.

Don't put your limits on the donor

The best way to determine your own or someone else’s money mindset is to ask this question:

“How much do you feel is a really large amount to donate to our cause/organization?”

The answer to that question is not to catch someone in a wrong answer. However the best answer is, “However much the person would like to give.”

It’s human nature to have a number in our minds. But that number has the chance of limiting our effectiveness in soliciting donations.

Resist the urge to place giving limits on your donors.

The post [Guest Post] Expanding Your Money Mindset appeared first on FundraisingCoach.com.