Marc A. Pitman's Blog, page 25

Do You Need a Really a Nonprofit Mentor?

The nonprofit sector is a strong and vibrant community full of people willing to help each other out. And now more than ever, it’s important to come together and work as allies and mentors.

The value of being mentored seems pretty obvious: new skills, confidence, friendship, etc. And in fact, the research shows that people who are mentored get more job promotions and earn more than people who aren’t.

But mentoring is also great for mentors: networking opportunities, leadership development, and a stronger sense of community.

Jesse Bethke Gomezwas mentored early in his career and is now paying it forward by helping others overcome their fears, have more confidence in their talents, and develop their strengths:

So yes, nonprofit professionals like Jesse shine when they connect, learn and share with each other. They get stuff done. And they make a bigger impact.

But do you really need a mentor?

Why you need a nonprofit mentor

Most nonprofit leaders are too stressed out or distracted to find that trusted friend or colleague who’s walked in their shoes.

But allies (mentors, peers, friends) are often essential for success. Here are a few examples:

A veteran grant writer offers guidance to a novice grant writer that helps him or her achieve greater results.A promising nonprofit start-up founder can connect with an experienced leader who points out blind spots and encourages a drive toward success.A newly-hired Development Director is struggling to meet their capital campaign goals. She exceeds that goal with tips from a veteran fundraiser.Find your nonprofit ally

Do you have experience or know-how to share with a nonprofit? MissionBox.com is a newly launched free resource that helps connects nonprofit leaders connect with that perfect peer who is seeking guidance.

The goal? Stop “reinventing the wheel” create a larger sense of community, and together, make a bigger impact.

Learn more about becoming a MissionBox ally by joining here for free.

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Tithing from the IRA Rollover

Charitable Gift IRA Rollover: The Past

In 2006 I was visiting with a donor who was very excited about the recent Pension Protection Act that enabled him to give from his IRA to charity. The Charitable Gift IRA Rollover allowed many donors like him to give a Qualified Contribution Distribution (QCD) to a qualified charity without having to count the funds distributed from his IRA as ordinary income. For an individual like him, with a modest income, conservative saving/spending principals, this was the only opportunity he had to create an endowment for his alma mater and see it award scholarships while he was alive. Or, as the IRS puts it

A Qualified Contribution Deduction (QCD) is a distribution made directly by the trustee of an individual’s retirement arrangement (IRA), other than a SEP or SIMPLE IRA, to certain qualified organizations. The donor must have been at least age 70½ when the distribution was made. The total QCDs for the year can't be more than $100,000. If all the requirements are met, a QCD is non­taxable, but the donor can't claim a charitable contribution deduction for a QCD. (IRS Pub. 525)

At that time the Charitable Gift IRA Rollover’s stability from year to year was subject to the whims of Congress. Each year Congress, at the last hour it seems, would reinstate the provision. For donors age 70½ or older who wanted to contribute at the least their Required Minimal Distribution this made planning a gift from your IRA nearly impossible.

Charitable Gift IRA Rollover: The Present

Finally in 2015 Congress decided to stop playing the last minute game and made the Charitable Gift IRA Rollover permanent. This act potentially should impact the annual fund (a.k.a. the tithe) of churches everywhere if stewardship campaigns understand the factors involved. Donors can now count on the eligibility of their Required Minimal Distribution (and possibly more) going to their church or favorite charity with tax benefits. Like the previous IRA acts, the gift is not tax deductible but the gift itself is not counted as income taxable. For donors who do not need their Required Minimal Distribution and who have a pledge or consistent history of tithing to their church they can now, year after year, fulfill that pledge or tithe with income that will not be taxable.

Charitable Gift IRA Rollover: The Future

What’s next for the Charitable Gift IRA? Certain groups across the country are lobbying Congress to create the Legacy Charitable IRA. If they are successful in their efforts donors can create income-producing gifts that have tax benefits as well. Speculation is that we may see this in 2018 as there has been a favorable support of this option for donors and charities. My only request is that they make it permanent as well so that we can best serve our donors.

For more information about the Charitable Gift IRA Rollover and how it can impact your fundraising or your own giving strategy I highly recommend you spend time reading IRS Pub. 590¬B.

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7 Year-End Fundraising Practices That Work All Year

Year-end fundraising is a bountiful time in the life of the nonprofit. Giving Tuesday and holiday-themed asks are just the beginning of the strategies that nonprofits employ for the end-of-year season.

But many of these practices are too beneficial to reserve for the end of the year alone.

With a little tweaking, you can adapt these practices to your year-round fundraising. After all, there aren’t any rules to keep you from using your best tactics when and where they’ll serve you best.

To help you build up the best strategy for your nonprofit, check out these top 7 practices for year-round fundraising:Tell stories.Speak your donors’ language.Communicate across multiple channels.Interact via social media.Prioritize convenience.Fundraise with products.Engage your current donor base.

These practices are derived from year-end fundraising, but applying them to your nonprofit all year can help you draw in donations and further your cause.

 

7. Engage your current donor base.

Year-end fundraising generally focuses on donors already in the database rather than on donor acquisition.

Year-round, it’s tempting to focus on gaining new donors — but keep in mind that it’s cheaper to work with donors who already have an established relationship with your nonprofit.

More importantly, practicing donor cultivation will help you better understand your donors, so that you can build stronger, mutually beneficial relationships.

A solid foundation will help you craft targeted asks when the time comes.

And while cultivation is important for all donors, this practice also includes reaching out to lapsed donors. Donor retention, after all, is important for your nonprofit.

Beside the cost-effectiveness of pursuing former donors, these donors have already demonstrated an interest in your organization. Cultivating affinity is half of the battle for nonprofits — now you need to engage with their interest.

Following these tips can help you keep your current donor base involved, well before the end of the year:Call your major donors. Calling your major donors to inform them of your fundraisers year-round will keep them in-the-loop about your nonprofit’s work. Asking them about their philanthropic interests directly (which may change as time passes) will help you guide them to the giving opportunities that may interest them the most.Mail or email lapsed donors. Depending on their preferred communication channel, you’ll want to send personal communications to these donors.. Beginning your communication with “We Miss You” and explaining how much their support has mattered to your organization can inspire them to take action again.Feature supporters in social media. Establishing a “featured supporter” weekly post is a means of showing your appreciation for your current supporters. In turn, your supporters can see how valuable they are to your organization.

Engaging with your current donor base keeps your donor relations strong as you head into your year-end campaign. Further, focusing on your current donors allows your nonprofit to grow with your support base.

Even though the end of the year is a special time for receiving donations, tapping into the giving spirit is an important year-round practice.

Whatever the season, you want to incorporate the strategies that work best for your nonprofit.

Don’t limit these top practices to the end of the year.

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The missing link in fundraising programs

Whether your fiscal year starts now or is only part of the way through, January is a good time to evaluate your fundraising progress.

To help you're planning, here's an email I sent our Fundraising Kick subscribers yesterday.

Good morning, Kickers!

Listening to a conversation between Stephen R. Covey and his son Stephen M.R. Covey last week reminded me of the work you do with major donors.

Stephen Covey (the dad) and his wife wanted to impress on their kids the idea that everything as two creations:

one in your imagination;one in the physical world.

To drive this point home, they went to a huge hole in the ground and got an architect to tell them what was being built. What in the physical was a hole was going to become a large shopping mall. The blueprints had all the plans for the details of the shopping mall infrastructure, down to even which stores were leasing which space.

Every thing had been imagined before it was built. Like that old adage: measure twice, cut once.

Begin with the End in Mind

This principle of “two creations” became known as Habit #2: Begin with the End in Mind. https://www.stephencovey.com/7habits/...

Habit 2 is the missing link in major gift programs.

Usually, we get a goal. “We need to raise $X more than last year.” So we lean on major gifts to do that. We do some planning: numbers of gifts, people to ask, activity goals for fundraising staff and leadership.

But we don’t go far enough. To truly be successful in major gift fundraising, we need to create in our mind the types of relationships we hope to create for the nonprofit.

Person by person.

January is a great month for that. List your major gift assignments on a spreadsheet and start planning what you want to communicate with each person each month. I find it easiest to figure out how much I want to ask for and when I want to make the ask. Then I fill in the months with relationship building activities that honor the donor.

You’re creating a blueprint for the relational infrastructure of your fundraising program.

Take time this week to build out your blueprints. Don’t worry that they’ll change. Most plans do. But take time this week to craft the first draft of plans for the people who could move your fundraising forward.

And be sure to look at last year’s giving to see if there are new people who might need to be added to your blueprints.

You’ve been kicked,

Marc

The missing link in fundraising programs

This isn't just the case in major gifts. We can get so focused on doing - sending letters, throwing fundraising events, posting to social media - that we never figure out if we're doing the right activities in the right way.

When talking about peoples careers, Stephen Covey (the father) observed that some people are so busy climbing the career ladder, they never check to see if it's on the right wall.

"If the ladder is not leaning against the right wall, every step we take just gets us to the wrong place faster."

Don't go to the wrong place with your fundraising.

If you're not getting the results you want, stop. Take some time this month to find out why.

Are you so focused on grant funding that you don't realize a fundraising basic that grants only account for 15% of the charitable money given each year?Are you so focused on sending letters that you don't realize you're not sending the right fundraising letters?Are you so focused on "finding new donors" that you don't realize you're losing 60% of those new donors each year because you're not thanking them correctly?

Or do you need to take time to thoughtfully plan out the relationship touches you want for the donors assigned to you?

Whatever it is, take the time to do both creations. Don't skip one.

Your fundraising will be much better for it. And you might just find yourself liking fundraising more.

Fundraising Kick emails are weekly coaching emails written to help nonprofit executive directors get out from behind their desk and ask 5-10 major gift prospects for money. To buy a subscription, go to: http://FundraisingKick.com/.

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3 Great Fundraising Webinars to Kick Off 2017!

These three trainings will get your 2017 fundraising and goal setting off to a great start!

The 7 Habits of Highly Ineffective People & How to Beat Them (free)

Join neuropsychologist Dr. Theo Tsaousides as he teaches us about the 7 blocks the brain puts in the way of accomplishing our goals. He's an expert on how the brain works and how we can help our brains help us complete our goals.

Learn more and register for this free webinar at:

https://thenonprofitacademy.com/vault/7-habits-of-highly-ineffective-people/

(Qualifies for 1.25 CFRE credits.)

Next Level Fundraising for Your Nonprofit (free to NPA member/$19 to join)

Don't lurch from news headline to news headline this year. Join Mazarine Treyz as she walks us through the latest trends in fundraising. She's done the research and will make it accessible for us. She'll introduce us to a whole new way of thinking of our fundraising goals. And she'll show actually case studies of people who've done it!

Register for this webinar (or to get the recording) at:

https://thenonprofitacademy.com/vault/next-level-fundraising/

This training is free for all Nonprofit Academy members. Membership costs just $19 per month. Once you register, you not only get access to this training but you also get instant access to over 80 trainings, tools, and templates already on the site.

(Qualifies for 1.25 CFRE credits.)

How to Avoid Fundraising's Quiet Killer: Donor Attrition (free)

You did a lot of work to gain each new donor for your work. But if you're like the average nonprofit, six out of ten will never give again. This quiet fundraising killer is called "donor attrition." The answer? Donor retention. In this training, Firespring CEO Jay Wilkinson will show you specific strategies to building relationships with donors that will help them happily donate year after year.

Register for this free webinar at:

http://www.firespring.org/donor-attrition-nonprofit-academy-2017-01-04/

Don't miss out! These three trainings hold the concepts for helping you raise more money in 2017 and raise it more enjoyably...for you and for donors!

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The most important words of your email?

Writing the only part of the email your donors might see: the email subject line

Is your inbox filled with holiday sales, year end reminders, and charity appeals? It can be challenging to make your own nonprofit's emails standout!

The email subject line.

Much like the importance of a postscript in fundraising letters, your email subject line can only be effective once you know exactly what you want your email to accomplish.

Fortunately, there's help. Before you send out your next email broadcast with the awful "There's still time to make your gift!" subject line, check out the email subject line tips in this infographic from the folks over at the Salesforce.

Considering your goals, your audience, and reviewing these questions can help your nonprofit's emails get acted on!

You can read more about these email subject line tips at: https://www.marketingcloud.com/email-subject-line-best-practices/

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3 things to do now that #GivingTuesday is over

I've been glad to hear of my clients' #GivingTuesday success. Matching gifts and leveraging peer-to-peer approaches seem to be the most effective reasons for their success.

But #GivingTuesday is over, now what?3 Post #GivingTuesday SuggestionsStart planning 2017's #GivingTuesday

If you've determined #GivingTuesday should be part of your fundraising calendar, start planning 2017. (It'll be on Tuesday, November 28.) Use Nancy Schwartz's guide to review the emails you received from other nonprofits over #GivingTuesday. And listen to the conversation I had with crowdfunding expert Dana Ostomel. She gives some amazing tips on how to best structure any giving day. A recording of that interview is at: http://fundraisingcoach.com/2016/08/30/is-crowdfunding-the-right-fit-for-your-nonprofit/Keep asking

There's still plenty of December left. As I reminded my Fundraising Kickers, people are still at work this month. Our job is not to decide for donors. Our job is to ask them. We need to respect them enough to make the decision themselves. So call, set up meetings, or even send a fundraising letter. If you're planning on sending a newsletter, before you send it watch Steven Screen's training on newsletters that raise money.Don't close the office

Many coaching clients see around 30% of their total donations come in December. (Blackbaud reports the national average is 17% of annual donations come in December.)

With so many donations coming in September, why in the world would you close your office for an entire week this month? I recommend having at least the fundraising office open half days for much of the week. And executive directors and fundraising staff should have a special voice mail that says something like:

You're reached [your name]'s voice mail. If you're calling to make a year-end gift, thank you! You can give securely online at: [your nonprofit's website or donation page]. If you have any questions about year-end giving, I'm here to help. Leave a message here or try my cell phone at: [your mobile number].

The week is never overly busy. You'll likely be the only one in the office. So you can get a lot of uninterrupted work done. In my experience and the experience of my clients, the few times a donor has called or dropped in during that week have been big. I remember receiving a $25,000 donation one December 30, simply because a board member was told he needed to give more in the calendar year! If we hadn't been in, he would've given to the next charity on his list.December is not over yet

There is still time to call donors and send letters. If your nonprofit is funded by donations, December is a work month. You can always take vacation in February. (Click here to tweet that.)

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Educating donors is not fundraising

I've been hearing a well-meaning but fundraising killing myth while talking to many groups and training many boards over the last few months. It boils down to:

"We need to do more education. If people really knew what we did, they would give money and our funding crisis would be over."

Or more generally:

"If they knew about us, they'd give.

One gentleman took along time to explain each step of the education process.

He needed to raise $1 million so he could get a celebrity spokesperson to champion his cause.Once that famous person was recruited, people would listen.And news outlets would tell the nonprofit's story.All of that media and attention would lead to millions learning about the issue his nonprofit exists to correct.If people really understood how bad the situation was, they would give and his money issues would be gone.

He was passionate. He was logical. And he was completely wrong.

Educating is not fundraising.Educating? Or fundraising?

To illustrate the point while talking with this year's winners of L'Oreal Paris' Women of Worth, I asked,

"How many of you have family and friends who know about your nonprofit?" Everyone raised their hands. "They're really well educated. They know why you do what you do." Everyone shook their heads in agreement."How many of you have family and friends that know about your nonprofit but don't make donations to your cause?" Everyone kept their hands up.The most educated people around them weren't giving!

The reason: education is not asking.

Nothing happens without an ask

As another board member told me years ago,

"Nothing in life happens without an ask. Getting a job. Getting a promotion. Even getting married requires an ask."

The same is true with fundraising. You need to ask.

Please hear me: I have nothing against education. Education is a noble endeavor. But if you need to pay the bills, fundraising is the tool to use, not educating.

As you finish the calendar year, review your communications with donors. Are you clearly asking for a donation? Not hinting. Not inferring. But clearly asking?

If not, make the ask clear.

One way to test: if a donor asked you why you were calling/mailing/visiting and you answer with anything but "To ask you to give to this impact," you're educating, not fundraising.

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How to Use a Street Team to Enhance Your Crowdfunding

Crowdfunding is a term you hear thrown around in both the nonprofit and for-profit worlds these days, but few people have really grasped—and put into practice—exactly what it is. The way I’d define crowdfunding is with these three words: online social fundraising. Accepting donations online is not really innovative anymore, to be honest. We all know about online fundraising at this point and agree it’s necessary. But online fundraising in a way that allows you to leverage your community, not just for giving but for sharing, is innovative, and something that many nonprofits have yet to master.

Basically, when we talk about crowdfunding, we’re talking about leveraging and accessing social capital. Think “ice bucket challenge.” It’s perhaps the most successful crowdfunding initiative ever and definitely one of the most well-known.

Because of social networks like Facebook, LinkedIn, Instagram and Twitter, we have immediate access to our contacts, constituents and prospects. Reaching them is quicker, more efficient and more cost-effective. Because of this, the landscape of online fundraising has fundamentally shifted.

One of the biggest benefits of this immediate access is the ability to create campaign evangelists—people who can be our voice, champion our cause and speak to their friends, contacts and followers about our organization. When we create brand evangelists, we don’t have to do all the heavy lifting; they come alongside us and spread the word in a way that we can’t do alone.

One thing I often talk about in my crowdfunding workshops is the importance of creating these campaign evangelists, or an online street team. You need a group of advocates that will help you spread the word. And when you recruit people to be part of your online street team, one of the most important things is to manage expectations so that everyone is on the same page about what is needed and what can be done. Tell them upfront, “I want you to be a part of my team, and here’s what I need from you.”

In fact, I believe there are three key things things that will help you create a successful online street team that will make a big difference for your organization.

Spell it out. From the get-go, tell your street team members how you want them to get involved and help support your organization. Do you want them to share your Facebook posts and retweet your tweets? Great—be specific and spell that out. So many nonprofits post or tweet great content, but they’re met with crickets because they think, “If I post something valuable, people will like it.” That’s not really true. Content needs to get shared to make an impact, so enlist your street to help spread awareness. But don’t think they’ll just “get it.” Instead, outline their responsibilities and be clear.But make it easy for them. I recommend making an email distribution list of your street teamers so you can send them messages saying, "Today's assignment is this.” Add the date, include a link and tell them where to post the content you send them. Or if you’d like them to send a quick email to their contact list, you can say, “Here’s a five sentence email I wrote for you to send out.” They can tweak it if you allow, but honestly, most people just want to copy paste and have you make their life simple.Follow up. This is a non-negotiable; it’s incumbent upon you to follow up. I call it creating a nudging calendar and basically sending an email once a week to remind your team members of their responsibilities/tasks. You don’t have to badger them, but it’s important to check in and keep the momentum going. Let them know you’re cheering them on and supporting their efforts. Just because you’re always thinking about your fundraising initiatives doesn’t mean they are, so following up on assignments will provide good reminders.

Now, not every fundraising initiative is necessarily going to include crowdfunding. Nothing is plug and play. But it’s definitely something your nonprofit should consider, and developing a street team will only further your efforts.

Speaking of fundraising initiatives, #GivingTuesday is just around the corner, which I like to think of as a kickoff to an end-of-year appeal for a lot of organizations. It’s also the perfect time for crowdfunding. It's a day of giving—a response to the commercialism of the holidays. And you can really benefit from running a crowdfunding campaign because it’s something that the the whole world is talking about it. It’s already viral, in a way.

If you’re interested in creative a #GivingTuesday campaign, it’s actually not too late—you can set one up in minutes here and get some momentum going for your end-of-year appeal with this worldwide 24-hour rally for donations.

And while you’re at it, start thinking “street team.” Who in 2017 could you recruit to spread the word, champion your cause and get the masses excited about your mission? Now is the time to get your people onboard and get the new year started right.

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Developing a Plan to Approach Companies

Perhaps you already have a list of companies that could donate to your organization. If not, we’ll be helping you with that in our December 6 webinar. Once you have that list, the next step is to determine who the real decision makers are in each company and how you can get in front of them to present your case.

Remember that the decision maker might not be the person who has the most visibility in the company. It could be the CEO, or it could be a community relations director, or head of a corporate foundation. It could be an employee committee. So do your research first. In most cases, it will benefit you to build a relationship with the CEO. Even when there is a foundation, an employee charitable giving committee, or a community relations department, the CEO most likely will have a great deal of influence over these other “decision makers.”

Let’s focus on determining the decision makers for the top ten prospects on your list. You can use a worksheet in my workbook to help.

Once you’ve determine if there is a corporate foundation, you can focus your research efforts on the foundation. You can make up a grid using the following questions:

Does this foundation support our type of organization?Does this foundation give the type of funding we seek (i.e., operating, capital, endowment, program)?What are the minimum, maximum, and average grants?When do we apply?When is a decision made?Who are the trustees?Is the CEO among the trustees?

You will want to know if the CEO is a trustee. Also try to determine through informal research how much influence the CEO has over decisions of the foundation. This will help you prepare your cultivation efforts.

For companies that have a single decision maker, your job might be a bit easier. At least you only have one person to research and one major relationship to develop. You can develop a worksheet or use the one in my book to help you determine the information you need to know:

Who is the decision makerHow accessible is this person?Who is the gatekeeperDo we have an existing relationship with the decision maker?What do we know about the decision maker’s interests and habits?Determining the Company’s Areas of Interest

The information you’ve filled in on you grid for those companies that have a corporate foundation will help make it easier to determine whether the company’s interests match your organization’s needs. For those companies without a foundation, this research might be but harder, but not impossible, to gain.

Following are some ideas you can use to research the company’s interest:

Check the company’s website to see if it has a community relations or corporate philanthropy section and see what kind of projects it has funded in the past.Obtain the annual reports for organizations with missions similar to yours and see if the company is listed as a donor.See if any of your staff members or board members work for or have relatives working for the company who might be able to get the “inside scoop” on the company’s interests.Schedule a meeting with the decision maker(s) to talk about the company’s interests and see if there is a good fit.

This last item, of course, assumes that you can get to the decision maker, which brings up the subject of gatekeepers—often the bane of a development officer’s existence. But it doesn’t have to be that way.

Getting Past the Gatekeeper

There are several ways of getting past the gatekeeper. You can

contact the decision maker personally, ormaking friends with the gatekeeper so you can get to the decision maker.

Some hints on getting directly to the decision makers:

Find out what service clubs, professional organizations, community activities the decision maker is involved in. Then join and get active in those groups yourself.Get a colleague (board member, volunteer, staff member) who knows this decision maker to make an introduction for you.Try calling early in the morning or late in the day. Sometimes the decision makers answer their own phones before the gatekeepers arrive or after the gatekeepers have left for the day.

Making friends with the gatekeeper is always a good idea, because there will certainly be times, even if you have already established a relationship with the decision maker, when the gatekeeper gets “in the way.”

First, treat the gatekeepers with respect. Don’t treat them like second-class citizens, lowly employees, or people who just make your life miserable. If you are in the office in person, pay as close attention to the gatekeeper’s office or work space as you would the decision maker’s. Are there family photos, mementoes, hints about the interests and activities of the gatekeeper? Does she like to golf? Does he have a large family that is involved in sports? (Family photos often give these clues.) Did she graduate from the same university you did? All of these cues are good conversation starters. When calling on the phone, be cordial and ask about how the gatekeeper’s day is going, but don’t waste time with too much chitchat before getting to the reason for your call.

Make sure the gatekeeper knows who you are and the purpose of your visit or call. Don’t try to fudge a solicitation call by saying you are there to get advice. But, if you are really are there to get advice, make that known.

Acquaint the gatekeeper with your nonprofit and its mission and programs. The gatekeeper might have a family member who receives services, works at your nonprofit, or sits on the board. The more the gatekeeper knows about your organization, the more likely it is you will get past this person to the decision maker.

Okay, so now that you have a good idea what the interests of this company are, you can enter them onto a grid through which you will track the best “matches” for your organization so you can focus your energy on those companies that are the most likely to provide support.

Please note that you might have several programs that meet the interest of this funder. So leave plenty of room on your grid for multiple programs.

For more information, check out the Raising More Money from Your Local Business Community training in The Nonprofit Academy.

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