Marc A. Pitman's Blog, page 4

Breaking Down Nonprofit Data Silos: 5 Steps You Can Take

Data transforms nonprofit marketing and fundraising strategies; by incorporating real supporter information, you can personalize your campaigns and build genuine relationships with your donors.

However, when your data is isolated in different systems, it can be difficult to generate useful insights. These isolated systems are called data silos, and they can prevent your team from unlocking key trends among your supporter base—limiting your outreach progress.

In this guide, we’ll provide steps you can take to break down data silos so your nonprofit can use its data to its fullest potential.

1. Establish data governance.

Start by developing clear policies, procedures, and guidelines for data management. These rules serve as a reference point for all team members handling data, ensuring consistency across your organization.

These policies should include areas like:

Standardization. Determine how you’d like staff members to input certain data types to standardize data entry. For example, if you’re inputting the dates of volunteer outings, decide if you’d like your team to use an MM/DD/YYYY or YYYY-MM-DD format.Duplication. Let your team know how you’d like to handle duplicate entries, whether by merging these records or deleting extraneous records.Verification. Survey your donors regularly to ensure the data you have stored for them is correct. You may also use tools like an email scrubbing tool to verify the accuracy of your supporter information.

Additionally, assign data stewardship responsibilities to different departments and team members to establish accountability. For example, when conducting prospect research, it’s important to have a point person for entering data, identifying those with high giving capacity in your database, and creating donor prospect profiles.

2. Invest in a centralized data platform.

With the right donor database or constituent relationship management (CRM) system, you can centralize your data and create a single source of truth for all valuable information your organization collects. Here, you may store data related to:

Donor or member management. General donor or member data—such as names, ages, contact information, and communication preferences—allow you to reach your constituents and personalize your communications with them.Fundraising. Keep track of fundraising metrics—such as each donor’s individual gifts, your average donation amount, and donor retention rate—to assess your strategy.Marketing. Campaign data you may collect includes email open rate, click-through rate, website traffic sources, and social media engagement. This information allows you to identify your marketing strengths and weaknesses so you can improve your approach.

When data from all your initiatives is in one platform, you can use it to inform these branches of your operations. For instance, use donor demographic information to create segments that allow you to run more targeted marketing campaigns or post metrics about your past fundraising campaign on social media to inspire your supporters to give.

3. Integrate your existing systems.

Integrating your existing tools with your database or CRM ensures that data flows seamlessly between platforms, eliminating the need for manual data entry and preventing database errors. Look to integrate the following tools with your CRM:

Fundraising platform. Add specific information about donors’ giving history to the donor profiles in your database to better segment your supporters and follow up with appropriate donation requests in the future.Email marketing software. Upload contacts from your CRM to your email marketing software for broader reach, or create records for new email subscribers in your database. Then, you can automate email communications to certain segments and track email engagement metrics within your CRM.Event management tools. Store important information from your event management tools in your CRM—such as attendee data, registration metrics, and funds raised—to power your future events.

As Double the Donation’s nonprofit data collection guide explains, choosing platforms that seamlessly integrate reduces the time and effort required for data management and allows your team to focus that energy on mission-critical activities instead.

4. Conduct regular data audits.

The more disparate data sources and systems your organization has, the more likely data errors and inconsistencies will occur. Prevent small data issues from spiraling into larger problems by conducting regular data audits.

Deep Sync’s data hygiene guide explains that auditing your data is the first step in the data hygiene process and provides a realistic view of the current state of your data before tackling any problem areas. Auditing your data with your fundraising or marketing goals in mind helps you focus your efforts on the data points you need for your campaign.

For example, if you’re looking to engage major donors in your upcoming capital campaign, narrow in on relevant data during your audit, such as giving capacity, donation history, and employment data. This exercise can also help you identify any gaps in your database and whether you need to conduct a data append to fill in this information.

5. Promote internal data sharing.

Communication among different team members and departments is the key to successful nonprofit operations. When you increase collaboration among your staff, they’ll share important data with each other and facilitate well-informed decision-making. Consider how you can encourage different departments to work together to improve your campaigns.

More formal ways that you can promote internal data sharing include:

Regular email updates with high-level overviews of each team’s current prioritiesMonthly team meetings in which department leaders can explain their work in-depth and answer any questionsCollaborative tools like project management software and document-sharing platforms that make it easy for staff members to work together

Outside the workplace, you can also set up team-building events that allow staff members from different departments to get to know each other. Building this camaraderie empowers team members to work together and share data that helps each team develop a deeper understanding of your organization’s operations.

To run highly effective fundraising and data-driven marketing campaigns, you need to unify your data and ensure it’s consistent across teams and platforms. Breaking down data silos empowers you to base decisions on accurate information, strengthening your efforts and fueling your mission.

About the Author

Gabrielle Perham

Gabrielle is the Director of Marketing & Sales Operations for Deep Sync. She joined the organization in 2017 and brings 20 years of experience in strategic marketing, branding, communications, sales enablement, and digital marketing. With a roll-up-your-sleeves-and-get-it-done attitude and a big-picture mindset, Gaby loves solving marketing and business challenges. She earned both a B.S. in Marketing and an M.B.A. in Marketing Management from the University of Tampa. Gaby enjoys spending time with her fiercely outspoken daughter; hiking and kayaking; rocking out in the first row of a live show; and giving back to her local community.

The post Breaking Down Nonprofit Data Silos: 5 Steps You Can Take appeared first on FundraisingCoach.com.

How to Target Top Donor Demographics in Online Fundraising

Your donors are your most committed supporters. They’re loyal to your mission, dedicated to your success, and willing to rally to help you achieve your goals. However, there are different levels of engagement within your donor base. One of the best ways to identify your most enthusiastic donors is by looking closely at demographics.

Demographics are key to understanding your audience, which will help you create informed campaign strategies and personalized messaging for top donors. In this guide, we’ll cover four top strategies for targeting your nonprofit’s top donor demographic groups in your online fundraising efforts to maximize your revenue.

1. Identify Your Top Donor Demographics

To identify your top donor demographics, start by analyzing the information stored in your nonprofit’s constituent relationship management system (CRM). Consider your most engaged donors and determine if there are any common demographics between them to help you decide which potential donors to target.

Research the following demographic information for your most loyal donors:

Age: Discover if your nonprofit targets younger donors vs older ones. Then, tailor your outreach based on generation.Geographic location: If your organization is national, take geographic location into account. Outreach for one area of the country may look different than another.Income level: By understanding your donors’ income levels, you can make informed decisions about what groups you should ask for a large gift.Interests and hobbies: If your donors share specific hobbies or interests, you can tie that back into your fundraising efforts. For example, if many of your donors are runners, organize a fun run to benefit your nonprofit.Donation history: Understanding your donors’ donation history provides helpful insight to tailor your outreach. If a donor has only donated once, try to reengage with them. If a donor gives frequently, thank them often and share how their gift has moved your mission forward.Charitable involvement: Donors can support your nonprofit in more ways than one. See if long-time supporters would be interested in volunteering at your next event to help push your mission forward.

These are just a few examples of ways to utilize your donor data. Understand what information your nonprofit needs, then turn to what your software has gathered. If what you have in your nonprofit CRM is incomplete, NPOInfo recommends conducting a data append to ensure you have a holistic view of your loyal supporters.

2. Optimize Online Fundraising Elements

In today’s world, online donations are often the most convenient way donors can give. Improving your online donation experience can help you receive more gifts, as well as build trust with your donors.

Here are a few common elements your nonprofit should optimize:

Nonprofit website : Your website is often the first time your donors will interact with your nonprofit. Make sure that it clearly communicates your mission and goals.Campaign microsite: An event or campaign microsite can help you stay on theme with your fundraiser while maintaining your nonprofit’s brand.Donation page: Your donation page should have a user-friendly and engaging experience from start to finish. Check out these proven donation page strategies from the fundraising experts at OneCause to help.Social media: Engage with your current donors while expanding your reach to a new audience through your social media channels.

Unoptimized online fundraising elements may lead to frustration from donors and could even result in them withdrawing their support. The experience online must be easy to navigate to ensure donors’ continued loyalty, support, and gifts. Plus, with continuous positive giving experiences, donors may even upgrade their support through recurring or larger gifts!

3. Tailor Online Fundraising to Your Top Demographics

There are a few more steps to take before you begin outreach. Consider the fundraising ideas that will appeal to your top demographic groups and then start building your campaigns. Common online fundraising ideas include:

Online auctions: An online charity auction provides all the benefits of a nonprofit as a live auction but allows bidders to give from the comfort of their own homes. Peer-to-peer fundraising : Get your whole community involved in your fundraising efforts with a peer-to-peer campaign. Tap into your loyal donors to champion your cause online, allowing your nonprofit to strengthen existing relationships while growing your network.Awareness campaigns: Spread the word about your nonprofit’s mission through an online awareness campaign. Make use of social media outreach and tap into your ambassador network for extra reach!Text-to-give campaign: Prompt donors to give through a simple text message. Send them a link to a mobile donation page, ask them to choose their gift amount, complete their payment information, and contribute to your cause.Virtual walkathon: Host a virtual walkathon so your supporters can get in their miles and fundraise on your behalf no matter where they are.

Start by analyzing the performance of previous online fundraising campaigns to get a better idea of what donors would be interested in. If you saw a large amount of support for your peer-to-peer fundraising campaign last year, it may be a great idea to host another this year.

4. Personalize Online Fundraising Appeals

Personalization can go a long way. Show your loyal donors you value their support by personalizing your fundraising appeals to their preferences. Segment your messages based on your donors’ preferred:

Marketing channels: Where they like to hear updates from your nonprofit (social media, email, etc.).Message frequency: How often your donors like to receive messages from your nonprofit.Lifecycle stage: What stage of giving your donors are in.Interests: What type of event or fundraiser your donors are interestedGiving history: How much they have given, and how often.

You can determine if there are any common preferences for your top donor demographics to create more targeted fundraising appeals for them. Make sure to make requests with the donor’s name included. If they feel individually recognized, they are more likely to give.

Additionally, don’t forget to express your gratitude to donors for their previous gifts. By communicating how much your nonprofit values their contributions, you can help your donors understand their part in moving your mission forward.

Target Donors for Online Fundraising Success

Getting and keeping donors can take a lot of effort. Once you make a connection, it’s important to nurture your relationships. You want donors to support you long-term because it costs about 10 times more to bring in a new donor than it does to keep an existing one. By thoughtfully approaching online fundraising and strategically targeting your top donor demographic groups, you’ll be well-positioned to maximize the revenue your nonprofit receives.

About the Author

Karrie Wozniak

Karrie has spent more than a decade bringing innovative technology and fundraising strategies to the nonprofit industry. As one of the first executives at OneCause, Karrie combines her 20 years of experience in marketing with her passion for helping nonprofits expand their reach, leading industry research, marketing strategy, and fundraising consulting initiatives. She is also an active speaker on donor and fundraising trends, and has been featured on Forbes.com, Philanthropy Journal, and Nonprofit Hub.

The post How to Target Top Donor Demographics in Online Fundraising appeared first on FundraisingCoach.com.

After the Ask: Understanding Nonprofit Payment Processing

Your organization has just made a compelling fundraising ask to a potential donor. Now that one of the hardest parts is over, what are the next steps you should take?

Providing the path of least resistance for supporters to donate to your cause is crucial to meeting financial goals and pushing your mission forward. To create that path, you should understand your payment processing system and how it can help you establish a relationship with potential donors.

Let’s explore how your organization can empower your donors to contribute in a secure, simple way with your payment processor.

How Nonprofit Payment Processing Works

Payment processors play an essential but hidden role in the donation process. In fact, for donors to support your nonprofit online at all, you need a payment processor, and you’ll usually only notice if something goes wrong, like a data breach.

Even when everything is running smoothly, it’s still useful to know what aspects of the donation process payment processing software benefits. In addition to accepting donations, payment processors also:

Collect your members’ dues.Provide a way for supporters to buy your merchandise online.Serve as an event ticket sales portal.

Essentially, your payment processor is your catch-all tool for managing online payments. This makes secure payment processors a core part of any modern nonprofit’s technology toolkit, especially considering 360MatchPro reports that 63% of donors prefer to give online and 27% of nonprofits have experienced a cyberattack.

Donation Processor vs Aggregator

When it comes to payment processors, you can choose to use a dedicated donation processor or an aggregator to collect donations. Both of these systems look fairly similar to the donor but differ on the backend of the giving process.

A donation processor that’s dedicated to nonprofit fundraising hosts specific features to maximize philanthropic efforts. These tools provide funds every few business days, so you’re not waiting on a monthly check. When you use a dedicated processor, the donation journey is fairly straightforward. Here’s how it works:

Your donor will enter their personal and payment information on your nonprofit’s online giving page.This information is sent to the payment processor’s gateway for the transaction to be verified and approved. Then, it moves through the ACH (automated clearing house) network before being received by the donor’s bank or credit card.Once the transaction is approved by the donor’s bank or credit card, it’s sent back through the system to your organization’s merchant account, which is typically set up by the processor specifically for your nonprofit.The merchant account will retain the donation amount until the transaction is fully verified and finalized.Finally, the donation is transferred from your merchant account into your organization’s main bank account.

If your team chooses a payment aggregator, the first couple of payment processing steps remain the same. But, you’ll share a merchant account with other organizations that also use the aggregator and will likely receive the funds a bit later. An example of this tool is PayPal, which distributes payments to its clients on a monthly basis.

The donor’s journey to making a payment is as simple as that with the right payment software. With this understanding, you’re able to settle on which type of processor best suits your individual needs.

How to Choose a Payment Processor

Now that you understand how payment processing works, consider what features your organization needs. Your team should research which payment processing system works best for charitable organizations like yours.

There are a few steps to take when determining which product to invest in. You can choose between purchasing a dedicated payment processing system separately or working with a fundraising solution with a preexisting partnership with a payment processor.

When you purchase your payment processor separately, you’ll have more control over the payment process. Plus, if you choose a processor designed for nonprofits, you’ll have access to a support staff who understands the donation process and how it works in the context of your organization.

On the other hand, some fundraising solutions already have partnerships with specific payment processors. As such, you might automatically opt-in to using a specific payment processor when you invest in fundraising software. Ask the fundraising software provider what processor they use, and conduct research on that processor separately.

Whichever route you choose to find your payment processor, these key attributes are crucial to consider during your research process:

Easy access to funds. Ensure the processor you choose gives nonprofits more leverage over their raised money and grants them access to the funds within 1-2 business days. This means more immediate funding, leading to easier accounting.Painless software integration. Pick a service that integrates with your existing nonprofit software. When analyzing fundraising software, be sure to research each platform’s payment processor to be sure you’ll have an entirely integrated system.Experience in the nonprofit sector. Your payment processor should have experience handling any questions or concerns that arise during your fundraising efforts.Security. Secure payment and data protection are crucial to your organization. Data breaches are damaging to your success and reputation, so be sure to invest in a program that offers a high-security level. Additionally, remain vigilant in these protective measures:Using a PCI-compliant processor.Running address verification services.Following up on large and minimal donations.

With these key items in mind, your fundraising team can find the best payment processor that can help you effectively retain donations and reach your fundraising goals!

Simplifying the Donation Process

Now that you’ve secured your payment processing software, it’s time to simplify the other aspects of the donor payment journey. This can include setting up a donation page that is easily accessible from multiple browsers, simplifying your donation form, and streamlining the matching gift process.

Optimize mobile giving

Making your giving experience accessible for both desktop and mobile donors can improve donor acquisition and retention. Prospects can donate at your fundraising event or while on-the-go.

To implement a mobile-friendly design, your page should respond well on all screen sizes. Your mobile site will look a bit different from the desktop version, and that’s okay! To optimize user-friendliness, be sure to add:

Bold and easy-to-read textLarge donation buttonsA simple design to avoid crowding

When it only takes a few seconds for your donor to click and donate via mobile device or desktop, you’ll more likely secure their contribution. They’ll thank you for saving them time!

Simplify your donation form

Your donation form is the last touchpoint you have with a donor before they give. Make sure it’s straightforward enough not to scare them off. After all, forms that take too long or are too complicated can turn even your most passionate supporters away.

However, you still need to ask for the essentials. Stick to asking for basic contact information needed to process the donation and get in touch with the donor to deliver their donation receipt. You can use future opportunities to gather more specific details, such as what about your causes interests them.

The donor database software you chose to integrate with your payment processor is useful for future communications and getting to know your donors. The more you know about your donors, the better you can communicate with them.

Promote matching gifts

While you should keep your donation form short, it’s also an opportunity to earn additional revenue from an accessible corporate giving program: matching gifts.

Matching gifts are a free and easy way for nonprofits to potentially double some of their supporters’ donations. To promote them on your donation page, embed a matching gift database search tool into your donation form or donation confirmation page. Supporters can use this tool to look up their employers and see if they qualify for a matching gift.

We’ve already pulled back the veil on how nonprofit payment processing works, so let’s take a brief look at the payment process for business’s CSR programs. 360MatchPro’s guide to CSR vendors presents this useful chart:

Essentially, a donor gives to your nonprofit, which your payment processor manages. Then, they submit a matching gift request to their employer. If the request is approved, the employer uses their CSR software to allocate funding to the nonprofit. The CSR software vendor takes this money and gives it to your nonprofit, usually through a check or wire transfer depending on the amount.

Your organization puts a lot of effort into making successful fundraising asks that drive potential donors to your website. Make sure you’re getting the most out of your work by ensuring a straightforward and secure process.

With fundraising tools like a dedicated payment processor, you can connect with supporters and drive greater fundraising success. During your search, remember that simplifying the giving experience for donors is essential in your decision-making process.

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5 Ways To Use Nonprofit Bookkeeping for Donor Stewardship

Nonprofits depend on loyal donors to receive sustainable support for their work. This means your organization must provide a positive donor experience, not just in one event or campaign, but over the course of their involvement with your nonprofit.

While communication metrics and donor feedback are good places to start stewarding donors, your nonprofit may overlook a valuable resource for enhancing donor stewardship: your bookkeeping data. This information is a powerful tool for communicating donor impact and establishing a plan to further their involvement over time.

Let’s explore five ways your nonprofit can leverage its bookkeeping data to enhance donor stewardship.

1. Tailor reporting and impact updates

While accurate financial reporting is crucial to avoid losing your 501(c)(3) status, it’s also a helpful way to show donors the impact of their contributions. Incorporate data-driven updates into your communication cadence to remind donors of their important role in furthering your mission.

Use the following bookkeeping data to send tailored, relevant reports to donors:

In-kind contributions: Highlight the importance of a donor’s noncash gift by tailoring an impact update to address their specific in-kind donation. For example, donors who contributed bags of dog food to an animal shelter might want to know how many animals were fed with their donation.Restricted donations: When donors place restrictions on their gifts, they’re often passionate about the project or program they funded. Provide specific program updates detailing how you used their funds in ways that aligned with their restrictions. This should include key impact analytics, such as measurable outcomes and fund allocation, to demonstrate a program’s effectiveness.Fundraising event revenue: Share event recaps with both attendees and contributors, including the total revenue generated compared to the event’s fundraising goal. Break down this data into specific sources of revenue, such as the amount raised from ticket sales, to draw a direct connection between your fundraising success and donors’ involvement.

After sharing the hard numbers, prompt donors to further their involvement by explaining what else could be possible with their continued support.

2. Personalize acknowledgment and recognition

Donor appreciation is the cornerstone of stewardship. When supporters feel valued by your organization, they’ll be more likely to stay connected through increased giving or other involvement opportunities.

Use individual donation data to personalize donor acknowledgments. eCardWidget’s guide to thanking donors recommends the following best practices for valuable recognition, which can be enhanced with bookkeeping data:

Be prompt. Accurate bookkeeping records will help you track when and how often donors give. Use this information to send timely messages of appreciation that note their giving frequencies for even more personalized gratitude.Center  their  impact. Save the discussion of your nonprofit’s work for project updates—appreciation messages should keep donors’ contributions at the focus. Consult your bookkeeping data to learn about their involvement over time and specify their impact in your recognition efforts.Match the donation amount. Analyze your records to identify donors’ giving histories and show your appreciation accordingly. For example, donors who have increased their giving amounts by 5% each year should receive increasingly meaningful signs of appreciation from your nonprofit.

Infuse your existing donor appreciation efforts with bookkeeping data to show supporters that you’re paying attention to their unique contributions. You can also supplement this data with details from your constituent relationship management (CRM) system or donor database to further personalize messages. For example, you may notice a donor contributed $50 on their 50th birthday and send a birthday card thanking them for their generosity.

3. Provide more transparent financial reporting

Beyond fulfilling your obligation to report financial activity to the IRS, transparency is an effective way to demonstrate your nonprofit’s trustworthiness to donors. This bolsters donors’ confidence in your organization, making them more likely to stay involved with your nonprofit and continue giving.

There are several ways you can exhibit trustworthiness, such as making your Form 990 publicly available or creating a detailed annual report. Outsourcing your bookkeeping needs to an external professional is a key strategy for strengthening donor trust and streamlining your bookkeeping responsibilities.

According to Foundation Group’s bookkeeping guide, a professional bookkeeper can help with:

Recording transactionsReconciling bank accountsProviding financial statementsAssisting with 1099 preparationGiving advice and counsel as needed

With these services, professional bookkeepers help nonprofits achieve financial compliance and accurate record-keeping. This way, you’ll have all the (accurate) data needed to transparently report your financial activity to donors, such as how their donations were used or why your fundraising goal is set at a certain amount.

Additionally, some bookkeepers dedicate a section of their website to discuss their clients and the financial success they’ve been able to achieve. A bookkeeper’s case study can spread the word that a trustworthy professional handles your nonprofit’s books, so potential constituents know there’s accountability.

4. Choose clear stewardship touchpoints

Donor information stored in your bookkeeping system is like a window into supporters’ giving motivations and preferences. Using this data, your nonprofit can establish actionable touchpoints for stewardship that help you standardize the process of deepening donor involvement.

Create a donor stewardship plan that aligns with your bookkeeping process to standardize engagement across your supporter base. This plan could include the following steps:

Segment donors based on their giving levels and histories to determine which stewardship activities would best engage each group of supporters.Develop a communications plan based on your donor segments, including the content and frequency your messaging should follow to move donors up the giving pyramid to higher donation levels.Collect donor feedback to contextualize your bookkeeping data so that you can better understand why donors give and what would influence them to continue giving.

With this information, your nonprofit can proactively and consistently connect with donors to increase their engagement. This allows you to send targeted appeals and updates that resonate with donors individually and inspire their recurring support.

5. Identify involvement opportunities

The end goal of stewardship is to deepen a donor’s involvement with your organization and retain (or upgrade) their support over time. Meeting this goal requires offering a reasonable call to action that tells donors exactly what their next step should be.

Use your bookkeeping data to analyze donors’ giving patterns, including the frequency, timing, and amounts of donations. Supplement this data with past engagement information from your CRM to identify highly engaged donors who likely have an affinity for your organization’s cause and would be willing to give their support in other ways.

Then, create a strategy for marketing other opportunities, like volunteer roles or advocacy campaigns, to these donors. Incorporate educational information, such as the definition of a 501(c)(3) organization or the inner workings of your nonprofit’s operations, to help donors feel like they’re truly a part of your team.

Equipped with valuable insights from financial data, your nonprofit can let data drive its decision-making to create actionable plans for reaching your goals. As you work on improving your approach to donor stewardship, your bookkeeping data may also guide many other initiatives if you thoroughly and accurately record your financial activity.

About the Author Greg McRay

Greg is the founder and CEO of Foundation Group, one of the nation’s top providers of tax and compliance services to nonprofits. Greg and his team have worked with tens of thousands of nonprofits for over 25 years, assisting them with formation of new charities, plus tax, bookkeeping, and compliance services. He is credentialed as an Enrolled Agent, the highest designation of tax specialist recognized by the Internal Revenue Service. Based in Nashville, Tennessee, Greg and company work with charities and nonprofits all across the country and worldwide.

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How to prepare for the scariest fundraising objections

Tired of being caught off guard again…by the same objection you got last time?

And the time before that?

Objections are one of the scariest parts of fundraising. They can cause the most skilled fundraiser to freeze. In this clip from my training on overcoming objections, I show you how to prepare so you can show up to your next solicitation with ease.

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You better have the ask ready

You’ve heard it said that fundraising is all about relationships.

Is it?

No. Relationships exist in many formats. Many that do not lead to fundraising at all.

I’d suggest fundraising is all about mutually beneficial relationships.

That’s why if you meet with a donor prospect, you better have some asks ready. Even if you’re just “catching up.”

Have 3 Options Ready

If you’re “just going out to coffee,” it is correct to not make a solicitation. The visit itself is a success. Be strategic and curious with your questions – as they will be with theirs. But honor your stated “this isn’t an ask” invitation by not asking.

But…

But you better have 2-3 asks ready. In Ask Without Fear!® I call these “arrows in your quiver.” These are levels you’d like your prospect to give at or areas that you’d love to invite a donor to give to.

Why?

Especially when it’s “just a visit, not an ask”?

Donors are super busy. And they are smart. They know the nonprofit needs gifts. So there’s a chance they’ll ask you how they can help.

If you don’t have some fundraising asks ready for any meeting

You risk looking like an unprofessional nonprofit leader: if your nonprofit needs fundraising to run, you should know what would be helpful. If you don’t, you risk losing the prospects confidence that yours is a good organization to give to.You risk never connecting with them again: Ok, that may be a bit of an exaggeration. But with it taking more than 12 attempts to reach a donor, it will feel like forever. If they are interested when they ask you what would be helpful, they may not be when you finally connect with them months later.Hesitate but honor their ask

If you set up a meeting just to get to know someone, great. That’s the “Engage” step – one of the 4 steps of fundraising.

But if they ask you how they can help, honor their ask. Have an answer.

You might say:

Oh. I didn’t come to ask you…this time. But if you’d like to know, here are a few things that would be helpful. [Share them briefly.] Which sounds more interesting to you?

Small, Medium, and Large Fundraising Asks

If you really have no idea what their giving might be, come with a small, medium, and large option. You could look at your average gift and determine levels below, at, and above average.

Or you could think about the largest gift level you currently have and then work done from there.

Alternatively, if you think the person has capacity for a larger gift, you could have three project areas.

A Conversation, not a Presentation

I am not suggesting you have three presentations available. 

No.

But be ready to have three conversations ready. And be ready to ask a specific dollar amount in those conversations. If they may ask you for a presentation, schedule one with them. But major donors rarely ask for a presentation.

Visit with integrity – and be ready to ask

Being ready to ask is crucial to your fundraising. I once talked with a bank CEO who told me if a nonprofit CEO didn’t ask in the first meeting, he could stall the ask for two years. He gave me the process in great detail.

Most donors I’ve talked with don’t have a step by step plan to stall. But as soon as they leave the meeting with you, they’ll get distracted. So distracted that they may even forget why you are following up with them for months.

Save yourself, and your donor, the frustration. Have an ask ready when you go to visit. Better to be ready and not use an ask than to be caught by surprise.

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5 Easy Steps: A Guide to Hiring a Fundraising Consultant

To bring your mission to fruition, you need a clear roadmap. However, developing an optimal fundraising strategy can be challenging, especially when there is already so much on your nonprofit’s plate. Luckily, you don’t have to do this alone!

A fundraising consultant can identify opportunities for improvement in your existing fundraising plan and build new strategies to advance your nonprofit. Whether you’re struggling with online fundraising or stewardship, a fundraising consultant will bring a fresh perspective to your operations and help push you one step closer to your mission.

In this guide, we’ll cover five simple steps to hire the perfect fundraising consultant for your nonprofit. Backed by the right partner, you’ll have the support and guidance you need to maximize giving and strengthen donor relationships.

1. Secure your board’s buy-in.

Securing buy-in from your board is critical to hiring a consultant and creating an effective partnership. The right consultant will work side by side with your team, so it’s essential that your board gives the green light to set up a collaborative working relationship. Plus, your board will be involved in fundraising activities, such as stewarding major donors, and will be able to provide helpful insights and next steps for your work with the consultant.

2. Read up on consulting services.

After determining your needs and goals, outlining your project and talking to your board, you’ll need to research possible consulting firms and the services they offer. Your fundraising needs should align with the specific services and specialties of your prospective consultants.

Consulting firms can help your nonprofit with a variety of things like conducting feasibility studies ahead of a capital campaign and email marketing. Some other common services include:

Fundraising solutionsStrategic planningCommunicationsBoard and staff training

Along with the services consultants provide, you’ll also want to consider the following factors:

Founding philosophies: Ensure a prospective consultant’s mission and values align with your own. This will lead to the most effective and productive partnerships.Location: If your nonprofit is looking to bring on a consultant with a strong understanding of your community, then a local firm might satisfy your needs. However, a remote consultant can bring a fresh perspective to your nonprofit and pull from best practices seen in other locations and sectors that could benefit your organization. Weigh the pros and cons of both to determine whether a local or remote fundraising consultant can meet your needs.Testimonials and references: Look at a prospective consultant’s website to see if past clients reported having positive experiences with this consultant. This will help you get a strong sense of their working style and whether a given consultant would be a good fit for your organization. You can also request references from your consultant later in the hiring process to get more in-depth insights from former clients, which we’ll discuss in the fourth step.Past projects: Explore a consultant’s past projects to assess if they have the right background and experience to support your proposed project. They should also have experience working with nonprofits similar in size and sector to yours.Chemistry: Once you meet with a prospective consultant or talk to them over the phone, you’ll get a better sense of their communication style and personality. Ensure that your consultant will mesh well with your nonprofit to increase the success of your partnership.

To kickstart your research, you can take a look at Google reviews and consultants’ websites. However, leveraging your professional network is essential if you’re stuck at this initial starting point of your research.

3. Use your network.

There are plenty of consulting firms out there and each one offers different packages, so it’s easy to be overwhelmed; however, don’t forget that you can use the help and knowledge of your network to support this process. Look towards these resources:

Your respected peers

Your peers from other nonprofit organizations probably have some experience with hiring a consultant (or they know someone who does), so don’t hesitate to reach out.

Look for nonprofits that have similar supporter bases and goals. For example, if your nonprofit is locally focused and has a staff of ten, you may not want to ask a national nonprofit with 100+ employees for a recommendation. Instead, one that is most similar to yours will ensure you find a consultant with the most relevant background.

Professional organizations

Professional organizations like The Giving Institute provide complete lists of trusted and vetted fundraising consultants. This ensures that you’re only considering reputable consultants who have a proven track record in driving success for their clients.

Community-based organizations

Community organizations offer directories of top fundraising consultants specific to certain locations. For example, if you’re an Indianapolis-based nonprofit that wants a consultant who has an in-depth understanding of your community, you might look towards a community-based organization in Indianapolis for their recommendations.

You can also look at web pages that round up the top reputable consultants, like Re:Charity’s list of the leading nonprofit consulting firms. Wherever you start your research, make sure to be thorough and ensure a consultant checks off all your boxes before hiring them.

4. Be thorough throughout the hiring process.

After you’ve used your network to recruit consultant candidates, you’ll want to be thorough in the hiring process. Meeting with your top candidates will probably be the easiest way to get a feel for their personalities and decide if their values align with your nonprofit’s.

Keep the following tips in mind as you interview candidates:

Pick a consultant who fits.

When interviewing potential consultants, keep the following points in mind and feel free to ask them:

Do they understand your nonprofit’s cause and goals?Do they have experience working with similar nonprofits?What are their specialty services and do they match your nonprofit’s needs?Will they be able to collaborate easily with your team and board?

Selecting a consultant who understands your project’s efforts and your cause is crucial for your partnership’s success.

Ask for a proposal.

After you’ve met or spoken with the potential consultant, you can ask them for a proposal. A proposal is a document that outlines a consultant’s process and approach to your project, as well as answers any specific questions you have. Aly Sterling Philanthropy’s guide to fundraising consultants explains that a strong proposal will have the following elements:

Demonstrates an understanding of your nonprofit’s missionOffers suggestions to fix the challenges brought up in your conversationsProvides a projected timelineLists out any estimated expenses

You can request proposals for multiple consultants that you’re interested in or just one or two of your top choices. The proposal is intended to help you narrow down your choices further and increase your confidence in a candidate.

Check their references.

Speak with past clients that a prospective consultant has served so you can get first-hand insight into their working style and the fundraising results they’re able to produce.

Focus your discussion with references on how your candidate managed their project and collaborated with a team. You can cover if the candidate kept a budget and deadline in mind while working.

5. Communicate and sign.

Keep in mind that your consultants’ proposals aren’t set in stone, and you can always take the opportunity to note any questions or changes you would like to be made. For example, if the timeline seems too short or too long, you can see how a consultant might modify their approach to better meet your needs.

As you finalize your decision and turn the proposal into a more concrete plan, keep these tips in mind:

Establish your expected communication and timeline.

When it comes to communication, you’ll need to establish your expectations and schedule biweekly or weekly meetings. Determine what your consultant should discuss with you and what they can make their own judgments on.

Finalize your timeline so both parties know how long the project will take and how much of your consultant’s time will be dedicated to this account. For example, while an online fundraising project might take just a few months, you might need a consultant for a year or more when planning a capital campaign.

Determine how your consultant will be paid.

You’ll also need to discuss the costs of the contract. How will your nonprofit pay your consultant? You may be paying a flat fee, a retainer or an hourly rate. Make sure both you and your consultant are comfortable with the final decision.

Finalize your goals and responsibilities.

Determine your nonprofit’s goals and responsibilities, along with your consultant’s responsibilities. It’s important to know how your consultant will collaborate with your nonprofit’s internal operations. You’ll also want to discuss what tools you’ll use to track your project’s success, such as fundraising software and CRM platforms like Salesforce, and decide on which metrics to pay attention to.

The relationship your nonprofit has with your consultant will rely heavily on open communication, so make sure both you and your consultant understand your project’s needs and goals from the beginning.

Remember: a consultant is the missing link. You’re hiring a consultant for advice and help, which won’t be effective unless you share the reins. Trust that your consultant knows what they’re doing but don’t forget to take an active role in your fundraising strategy, too. With both parties working together in harmony, you’ll be much more likely to fundraise with a positive return!

About the Author

Long before Aly Sterling founded her eponymous consulting firm, she was solving the unique yet similar problems encountered by nonprofit organizations. Her decision to start her own business in 2007 was driven by her belief in leadership as the single most important factor in organizational success, and her determination to work with multiple causes at one time to scale societal change.

Aly’s expertise includes fundraising, strategic planning, search consultation and board leadership development for the well-positioned nonprofit. She is regularly sought for comment by trade and mainstream media, including the Chronicle of Philanthropy and U.S. News & World Report. She has contributed to publications of BoardSource and The Governance Institute, as well as the Toledo Chamber of Commerce and The Giving Institute.

 

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What Is Pledge Fundraising? 5 Frequently Asked Questions

Let’s explore two fundraising scenarios. School A and School B are both holding month-long read-a-thon fundraising campaigns to cap off the end of the school year. School A asks students to collect flat donations of $10 from their friends and family. School B uses the pledge fundraising model and asks students to collect $3 pledges for each hour spent reading from their sponsors.

In the end, both schools are successful—but School B raises more money and has better participation from students. This is because the students knew that they could raise more to support their school simply by spending more time reading.

This guide will explore how your school or nonprofit can use pledge fundraising to boost its impact by breaking down some of the top frequently asked questions (FAQs). Let’s begin.

1. What is pledge fundraising?

A pledge occurs when a donor promises to make a gift of money, goods, or services that will be delivered to the organization at a later date. Donations, on the other hand, are paid immediately. Sometimes donors use pledges to stagger larger payments, breaking them into more manageable payments (e.g., pledging to give $1,000 over six months).

But how does this process work in practice? 99Pledges’ guide to kid-friendly fundraising ideas illustrates how your organization can weave this fundraising method into your next campaign:

Work with a pledge fundraising software provider to set up donation pages for participants.Encourage your participants to share the donation pages online.Participants collect pledge donations from friends and family, usually corresponding with a unit of distance, time, or quantity (e.g., $1 per car washed during a car wash or $3 per mile jogged during a jog-a-thon).Track pledges using your fundraising software.Collect proceeds once the event wraps up. Your software should automatically send reminders and collect payments from donors.

Keep in mind that pledges are different from monthly giving initiatives. Monthly or recurring giving means that the donor has enrolled in your sustainer program and agrees to donate a specific dollar amount each month (e.g., $25 each month, on repeat). While a donor may pay some pledged donations in installments, this doesn’t make them a part of your monthly giving initiative.

2. Why accept pledges?

Pledge fundraising is an effective method for nonprofits, schools, and other fundraising organizations because it:

Is more flexible. Enhance your donors’ experiences and secure more donations by offering them different ways to donate. For example, during a walk-a-thon they may choose between giving pledged donations for each mile walked or donating a flat rate. Flat rates appeal to donors who know what they want to donate while pledges can be better for those who cannot or don’t wish to donate immediately.Can increase donors’ capacity to give. Not all of your supporters can afford to give large amounts at one time. However, pledge donations give them the option to pay toward a larger sum over several months. While your organization won’t receive an immediate major gift, these small donations add up.Provides more opportunities to steward supporters. With pledged donations, you’ll have at least two opportunities to connect with them: when they make the pledge and when they donate. If they plan to fulfill the pledge in multiple payments, you have even more chances to show your gratitude. Send donors heartfelt thank-you messages and share the impact that their contributions have to steward the relationship.

Pledges are also a great way for donors to provide targeted support to the causes or projects they care about most. For example, an afterschool program might use a sports team fundraising idea like a baseball hit-a-thon to raise money for its team sports program. When donors pledge to donate to this campaign, they’ll know exactly where their funds are going.

3. How are pledges collected and processed?

There are many different ways to manage pledged donations, and it’s up to your organization to decide what works best. However, there are some tips and best practices to follow that can keep the process running smoothly:

Use pledge fundraising software that will track pledges and fundraising progress during your campaign.Accept a variety of payment methods like credit cards, PayPal, ApplePay, and GooglePay to make donating flexible and convenient for donors.Leverage online donation pages. Since pledges are often collected through peer-to-peer fundraising, consider creating a donation page for the whole campaign and allowing participants to create individual pages.Choose a payment processor or fundraising platform that is safe and secure. Typically, these providers are PCI compliant and employ security measures like data encryption and two-factor authentication.

Additionally, you’ll need to make sure you’re asking for these donations in an effective way. Because some donors may not be familiar with pledge fundraising, explain how the method works in your asks. If your organization is holding a peer-to-peer campaign, share some basic fundraising tips and marketing materials with participants.

4. What happens if a donor doesn’t fulfill their pledge?

Unfortunately, pledge attrition can happen in almost any campaign. However, an average of 84% of event fundraising pledges are fulfilled, so you can rest assured that this isn’t a rampant issue that will seriously impact your success. To offset any expected losses, set the expectation that you won’t receive roughly 10% of the total amount pledged.

In many cases, pledging to donate is not legally binding. This means that the best way to curb pledge attrition is through preventative measures. Start with clear communication—make sure donors understand what pledging to donate means, tell them when they will need to make the payment, and send out reminders. 

Additionally, some fundraising platforms require a donor’s card information to process the pledge. This way, your nonprofit can automatically collect the agreed-upon amount on a specific date (and neither you nor the donor will forget about it).

5. How can your organization encourage donors to pledge again?

You’ll need to make efforts to steward your organization’s relationship with donors to ensure they pledge again in the future. To do so, set up a gratitude system that includes elements like:

Sending donors thank-you messages. Share an email or handwritten letter expressing your gratitude for their support. eCardWidget’s guide to thanking donors recommends adding personal details like the amount donated, centering the donors’ impact, and ensuring your message fits the gift amount.Creating donor recognition walls. Recognition walls are mounted, public displays in your facility that feature the names of your top, most loyal donors. These walls honor the donors’ contributions, physically represent your community of supporters, and make those featured feel deeply connected to your cause.Giving top donors public shout-outs. Identify the donors that pledged the largest amount, contributed for the first time, or have joined in on the most pledge campaigns. Then, ask if they’d like to be featured on your website or social media. Consider asking them a few brief questions about why they support your cause. You can feature their answers in the post.

If your nonprofit or other organization shares an impact or annual report, consider adding a section that recognizes impactful donors. Spread awareness of your pledge fundraisers and boost supporter retention by adding a special section to highlight the impact of pledge-based fundraisers.

Pledge fundraising allows your organization to give its supporters a different way to contribute to your cause. The ability to make smaller donations over time or in the future can boost your donors’ capacity to give. Unit-based pledges can empower participants in charity races, dance-a-thons, and other events to go the extra mile during the campaign.

To motivate both your donors and participants to do more to further your mission, consider implementing pledge fundraising into your next campaign.

About the Author

Rodrigo Ramos

Rodrigo Ramos is the Manager of Customer Success at 99Pledges, the #1 online fundraising platform for schools, sports teams, music groups, and more. 99Pledges provides organizations with an easy-to-use, web-based solution to manage and drive success in fundraising. The platform’s robust functionality can support simple pledge drives as well as performance-based campaigns (e.g. fun runs, walk-a-thons, read-a-thons, etc.).

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7 Winning Techniques to Boost Nonprofit Donor Engagement

Your nonprofit’s donors interact with your organization in a variety of ways, whether they’re giving online, volunteering, following you on social media, or attending your events. All of this involvement is referred to as donor engagement.

The more that your donors engage with your nonprofit, the more likely they are to stay engaged and become lifelong supporters who help you serve more beneficiaries.

To give your organization’s donor engagement a boost, we’ll explore winning techniques your team can use to get more supporters actively involved in your work.

1. Be genuine when asking donors to engage.

Donor engagement isn’t just about employing the right strategies. It’s also about having the right mindset—one focused on being genuine.

Being genuine means wanting to engage donors not just for the sake of raising money but also for the sake of growing relationships. Over time, this will increase their dedication to and involvement with your cause.

Having this mindset is important for two reasons:

It builds trust. Nobody wants to feel like a walking ATM. If you’re transparent with donors about why they matter to your organization and what you need from them to increase your impact, they’ll be more confident in your work and want to support you in the long run.Your nonprofit can better connect with donors. Authenticity creates a desire for connection. As you get to know your donors on a personal level, you’ll have a better understanding of their interests. This will allow you to create an outreach program that is tailored to your supporters.

To demonstrate genuine interest in your donors, focus on developing two-way relationships with them. This means your nonprofit should:

Have regular conversations with donors to develop rapport and build relationships.Be honest with your donors about what’s going on at your organization.Learn about your donors’ interests and use the information to encourage them to get involved in ways they will enjoy. Thank your donors  regularly for their support.

A mindset focused on genuine connection and involvement will show your supporters that you care about them and their experiences with your cause. Plus, it will allow you to apply other donor engagement techniques with a donor-first approach.

2. Use software to help with donor engagement.

It can be challenging to keep track of hundreds (or even thousands) of donors and build authentic relationships with them.

While a completely individualized approach isn’t always possible, building successful, long-lasting relationships does require some degree of customization. Having a place to track all of your donor information will help you create the best, tailor-made plan possible for engaging with them.

That’s where constituent relationship management software (CRM), like Blackbaud’s Raiser’s Edge NXT or Salesforce Nonprofit Cloud, comes in. This kind of software allows you to store donor information, track touchpoints and relationship milestones, and segment your donors into different categories.

Segmentation is what empowers you to personalize communications to some extent. Your nonprofit can segment donors into lists based on:

Donor statusGiving historyAgeInterestsPreferred giving channelsCommunication frequency preferences

By segmenting your donors, your nonprofit can provide them with the most relevant information to their interests and needs, making them more likely to engage with your mission.

As you look for a CRM solution that fits your needs (or seek to enhance your existing tech stack by changing your CRM), you may find it useful to work with a nonprofit technology consultant. These experts can help you assess all of your options, implement your chosen tool, and customize it to meet your needs so that you’re well-positioned to use your CRM to boost donor engagement.

Did you know that the average text message open rate is a whopping 99%? Since it’s such a popular communication method, your nonprofit should take advantage of text messaging as a way to engage with donors.

Many donors are already using their mobile devices to give, but you can also use text messages to engage them in other ways. For example, use text messaging to:

Provide reminders for donations, volunteering, or events.Send updates, like the latest progress on a fundraising goal.Ask cause-related questions and reward donors with the correct answers.Share images or videos of various projects.

If your organization wants to use text messaging, many texting platforms help nonprofits build a text messaging list. Similar to email marketing, this lets organizations send out a mass text message to all the donors who have subscribed for this type of communication.

4. Maintain the traditional ways you reach out.

Direct mail and phone calls are still valid ways to connect with and engage donors because they add variety to your communications and impact donors in ways that other methods can’t. For instance, a letter may feel more personal than a series of emails. Or, a phone call may leave a longer-lasting impression than a social media post.

For instance, if you spend the bulk of your outreach efforts sending emails, donors are going to get bored and maybe even ignore your messages. But picking up the phone and talking to a donor or sending them a postcard through the mail every once in a while will catch their interest and drive deeper connections.

5. Encourage donors to join the conversation.

When you send emails, write blog posts, and mail letters, you’re talking at donors. However, donors will feel much more engaged if you give them opportunities to respond.

This way, donors get to share their thoughts, questions, and feelings, providing input about your mission and how your nonprofit works toward completing projects and serving the community.

There are many ways you can encourage donors to speak up. Here are a few ideas to get you started:

Send out surveys after campaigns or events to gather donor feedback.Comment and respond to comments on social media.Host webinars, Q&A sessions, or panel discussions and encourage attendees to send in questions and comments.Post polls in your social media stories.Add a contact form to your nonprofit’s website visitors can use to get in touch with your team.

No matter what strategy you use to get donors to respond to your communications, ensure you’re asking engaging questions. Demonstrate that you’re interested in hearing what they have to say by taking notes and asking follow-up questions.

As you gather feedback and information from your donors, make sure to tell them how you plan to use it. This shows them that their contributions drive real impact and that you take their responses seriously.

6. Build a peer-to-peer campaign.

Deep your donors’ investment in your mission by asking them to step into a volunteer fundraising role for a peer-to-peer (P2P) campaign. This method of fundraising boosts donor involvement and expands your donor base.

In a nutshell, P2P fundraising involves your supporters fundraising on your behalf. They use a personal online donation page and circulate it among their personal networks, championing your cause. A popular form of peer-to-peer fundraising is Facebook birthday fundraisers, where individuals will raise money for a chosen cause on their birthday in place of gifts, but you can also use a dedicated P2P platform that allows donors to create donation pages and share them anywhere.

To encourage your fundraisers and recognize them for their efforts during a P2P campaign, do the following:

Showcase donors who have made big strides.Like, comment on, or share fundraisers’ posts on social media.Share broader campaign updates.Encourage friendly competition between fundraisers by ranking campaigns by the amount raised.Send text messages, social media direct messages, or emails encouraging fundraisers to keep up the good work.

When all is said and done, make sure to follow up with your fundraisers and thank them for their efforts, no matter how much money they’ve raised. Consider sending personalized thank-you notes, posting shout-outs on social media, or even sending small gifts as a way to recognize everyone who participated.

7. Suggest ways donors can get more involved.

Donors have so many options when it comes to being involved with the nonprofits they love, but it’s your nonprofit’s job to make sure that donors are aware of these other opportunities in the first place.

For instance, you may want to encourage your donors to:

VolunteerJoin your membership programParticipate in eventsCommit to a legacy giftShare information about your cause on social mediaGive in-kind donationsEngage in advocacy work on your behalf

As you consider different ways your donors can get involved in your organization, remember that you’re getting more support and creating opportunities for your staff and other supporters to interact with your donors. In other words, additional involvement opportunities have the potential to lead to stronger relationships.

The bottom line is that donors will make more effort to engage if you let them know about other things they can do besides donating money. By giving their time or participating in other ways, donors will gain a deeper sense of personal fulfillment as well, as they’ll drive more impact for your cause.

Donor engagement is vital for your nonprofit’s long-term success and growth, so using the right techniques to boost it is imperative.

As you begin applying the strategies discussed above, you may find that you want to do more to engage donors. To do so, consider partnering with a nonprofit consulting firm well-versed in fundraising and donor relations. Having a third-party expert weigh in on your strategies and provide tailored suggestions for improvements can make a world of difference in your donor engagement efforts.

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Silence isn’t a “no”

I don’t know what the cause is, but many of us are finding people area taking a lot longer to make a decision.

And more than that, they’re not responding to any of our follow up.

This is hard in fundraising, isn’t it? Most nonprofits aren’t asking for next year’s budget. They need the money now.

While I’m in favor of thoughtful philanthropy, nonprofits tend to need an answer. To know if they should keep following up or if they should move on. The conversation should be a dialogue. A back and forth.

Your Role is NOT to Decide for Your Donor

Whatever the cause, one thing I do know: don’t make the decision for the donor.

Resist the urge to take their silence as a decision. The donor hasn’t said “no” until the donor has said “no.”

As hard as it can be to do, keep consistent and kind with your follow up. If the donor didn’t say yes or no to the ask, they must be thinking about the donation.

Honor them enough to let them tell you their decision.

A while back, inspired by the book Go For No!, I wrote a post called “Sometimes you need to go for no.” You might be surprised to find you like the experience of making a game of getting no’s.

So hang in there. Silence is just silence. Not a no.

If you need follow up reminders, feel free to sign up for my Follow Up Friday emails. While not specifically written to fundraisers, you’ll see how applicable the follow up ideas are for your work.

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