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Younger people want to give, but can’t!

Younger donors don’t give as much.  You can chase the Millennials and the generation whatever’s, but if you don’t take into consideration the family life cycle, then you are misdirecting your energies.

What is the family life cycle I hear you ask?

Wills and Gubar (1966) identified nine distinct life cycle stages of a family.  1966 – and this information is still relevant!  They believed that that the age and composition of the family unit has a direct impact on the buying patterns of families.  And, as the family moves through the life cycles, these stages change as well.Family Life Cycle Stages and Giving

For instance, at certain points, giving decisions are made jointly with spouses, starting a new family impacts discretionary spending patterns, and levels of disposable income vary over the lifetime of a family.  That is why you see younger people not giving as much – while raising a family, they have less disposable income to give away, saving for their child’s education, and their retirement.  As folks age and their children grow up, these same folks have an improved financial position with more disposable income and fewer demands on the future and tend to give more.

Since 1966, there have been changes in the family unit that bring to mind some questions – what about single parent households, families having children later in life, and other family units?  How do those impact philanthropic giving patterns?

However, overall, I think it is fair to say that looking at where a family is in their particular life cycle stage is an important indicator of their propensity to give, and why I believe that younger folks, while wanting to be, just cannot be as generous as their parents.

 

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Hello, are you really listening to me?

We are all so very guilty of appearing to listen to someone, but yet already forming a reply in our head..

You know, you are sitting with a donor and rather than listening, you are rehearsing what your response may be.Listen intently during donor meetings

Are you missing some critical information when you don’t listen intently? Sure!

It is so critical to listen intently, without an already pre-conceived agenda in our mind.

You may miss key donor motivations in that pre-thinking. Here is an excellent case as an example.

I was once meeting with a donor who I thought may be interested in supporting a particular project – Rosary distribution. However, it was when I was meeting with that individual donor and asking deep, probing questions, that I learned that their interest was not in fact with what I thought it may be, but in fact with an overseas ministry in France. If I didn’t spend the time to ask questions, probe deeper, and listen, I may have missed the relevant cues that would direct me to share the ministry of importance to that donor. That donor later went on to make a significant gift to support this ministry in France. A gift towards Rosary distribution may have been certain, but probably would not be at the same gift level.

It is so critical to put aside personal and professional agendas and spend the time to listen to our donors and to understand their motivations for possibly making a gift.

I argue that time is the most important element when doing major gifts. One needs to take the time to listen and explore to know the donor better. Time and deep listening are the glue between the donor and the organization. Time and deep listening are what leads to long-term relationships.

We need to push our organizations to remove those expectations that keep us limited in the time we spend with our donors. Each donor is different, and we should not pen the relationship into key metrics. Rarely does a relationship fit into expectations and measurement. Relationships are organic and dynamic. And, most importantly relations are about deep probing, and intently listening.

Very rarely does a major gift fit into an official timeline.

It is all about the donor!

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A great time for bequests, but are you ready?

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

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

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

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

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

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

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

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

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

 

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We need money now! An ethical decision.

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

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

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

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

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

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

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

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

And, ethically, I can’t operate otherwise.

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

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

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

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It’s all in the asking! Rehearse well before your next major gift ask.

Yep. You can go through the motions with your donor, but if you don’t A S K, you don’t G E T. Simple as that.

So, where do you even start?

Each donor is an individual. And, being an individual, he or she needs an individualized strategy – each solicitation is a campaign on its own.

Deciding who does the asking is key to the process. While a team of two to three people may be present during the solicitation meeting, there is only one person who makes the ask. And, don’t bring along someone who has never met the prospect to the solicitation meeting.

Fundraisers should not do all of the solicitations. Someone else in the organization, such as a Board Member, may be better suited to make the ask because of a “peer” based relationship. And, let’s face it, Board members are volunteers and their income is not impacted by a gift.  

Then you must set a target gift level and for what specific projects or goals. A prospect often can give between two and ten times the amount that he or she has given annually in the past. You would also want to revisit all the original research on a donor’s interest, concerns, and motives. This information will help you to narrow the range of the ask. Once you decide on an ask amount – double that number.

Then you need to select when and where you will do the asking. It is best to meet where the donor feels most comfortable. Also, It's all in the ask. Major gift fundraising.determine whether or not the prospects spouse or partner should be a part of this meeting. Note to self, restaurants are not usually places where you want this all to go down. The awkward question regarding coffee and dessert has ruined many a solicitation.

You should give some thought about whether or not the gifts should be outright gifts of cash, stock, or pledges, and if pledges, what is the timeframe for installments?

What should you bring on a visit? I would bring along a letter with a proposal that should include the project’s need, proposed action for meeting the need, financial information, including costs, and a summary of the benefits the donor will get from giving.

Don’t forget to assign specific roles to each member of the team at the meeting, and then role-play, role-play, and role-play before the actual visit. In other words, rehearse all possible scenarios before your team has ever walked through the prospect’s door

Call the prospect to ask for a time to talk about the case for support and opportunities for investment and how the donor can get more involved and be supportive in a more meaningful way. If you have done your cultivation to this point, they should know why you are calling. Above all else, be honest with them and fully explain why you would like to meet. It also sets the stage for the solicitation process. Then confirm this appointment in writing. Send along some easy-to-read information about the organization’s plans along with the confirmation letter. Reconfirm the meeting by phone or email shortly beforehand.

And, then it is showtime! Lights, camera, action.

If you would like more information on major gifts in small shops, don’t forget to sign-up for my FREE four-part e-course today.

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Let’s ban the title Newsletters – all in favor?

The one best tip I have for nonprofit newsletters – stop calling them newsletters. I am of the mind that this title creates a great deal of confusion both for the nonprofit and the donor.

Why?

First, donors are like investors. They are giving their financial resources to support something, dare I say, a mission in which they strong believe. Investors don’t get newsletters; they get quarterly investors reports showing them the return on their investments. And, sometimes, investors even get conference call options to review the investment reports and ask questions. How novel?Donor newsletters

Secondly, its sets a small nonprofit or an inexperienced development person up to think that what one should include in a newsletter is exactly that – news. So, over the course of my years in the field both as practicing development director and consultant, I have seen way too many newsletters that report on things like what events are coming up, what events have just passed, and little at all about the donor.  And, even more, many of them ask for yet another gift.  More of a “Save the Date and we need more money” vs. “This is what our date made possible and thank you so much.”

Thirdly, the title newsletters suggest long, boring “newsy” stories. You know, stories you would likely find in say a newspaper, for instance. And, we know that best practice has found that these types of stories no longer work. Donors are skimmers; they look for photos, captions, headlines, and short, pithy text. Their eyes scan the copy, and, often, don’t even read it word for word.

So, what do I propose we title this nonprofit donor communication workhorse? Let’s see, how about something along the lines of “Your investment report?” or what about “Your impact statement?” or perhaps even “Your insiders report?”

Or, well, why don’t you think on it, and comment below.

Let’s just call it anything but a newsletter, OK?

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What is cultivation really about?

Cultivate, cultivate, cultivate. The way we talk about donors sometimes makes me think that we are in relationships. And, in a sense, I guess we are.

Cultivation, what is it?

Well for one, it’s about learning more about a donor and his or her interests and how our cause’s mission intersects with their personal passions.

It is not about educating the donor on what our cause does and how they can get involved. It is not sales or persuasion. It is more about matchmaking. You know, just like in “real life” relationships. It is about learning what motivates them to give and why. Learning about what stirs their soul and makes them feel good.

As with all relationships in life, listening is paramount. We must listen authentically to our donors and not have a hidden agenda. You remember those first days of dating when you hinged on every word of your love? It is the same thing. Ask questions and then listen intently.Donor cultivation

For me when I was doing major gift work, I made it an aim to get to know something new about each donor every time I visited with them. I developed long-standing relationships that were genuine and had the organization at its deepest heart.

I have spent countless hours sitting in donor’s homes learning about their lives both big and small. I have had lunch served to me by famous people. I have spent time in a donor’s office getting to know how they got involved and what keeps them involved. I have had donors treat me like family, insisting that I stay for dinner – they made it special just for me.

Each donor will want or necessitate different types and levels of cultivation. Some may want a tour of the facility, and others will want to meet with staff, serve on a board or committee, attend events, or be an advisor.

Most importantly, it is the donor that directs the relationship. The time spent together getting to know each other. This time is set by what makes the donor feel most comfortable.

I never felt as if I could rush this relationship, nor should you. Like all relationships, let it evolve organically over time and it will bear fruit, both for the organization, for yourself and the donor. In fact, the gift will be a transformative moment.

Share with me in the comments below your most poignant donor cultivation story.

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