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How to find new donors for your nonprofit organization

Each year, approximately 10% of your non-profit donor base will attrition naturally through death, moving, or just not giving any longer.  Then you add lapsed donors on top of that natural attrition, and you are looking at an eroding donor list.  Sound familiar?

Well, in previous blog posts, I examined how to begin attracting new donors to your organization and how to re-engage lapsed donors.

In this article, I tackle the ever important question of “How to find new donors for your nonprofit?”

Here are some simple steps that you can take to combat this natural attrition and to begin adding new names to your donor list.  These are the actual suggestions that I use with my very own clients.

1.)  Conduct a fun exercise with your Board members such as a “Treasure Map” activity to help them to think of all those who they come into contact with in their networks i.e. people who they attend church with, volunteer on other Boards of Directors, friends, etc.

2.) Host a gathering or tour and have Board and staff bring those prospective donors to this event.  This event should have a program that shares information about the organization and its mission, services, ways to get involved, and most importantly, a testimonial. Don’t forget to conduct follow-up with all those who attend these events to find out what they thought about the event and to determine further interest for engagement.

3.) Use social media as a way to find new donors.  Consider having a presence on Facebook, LinkedIn, Twitter, etc.  Don’t overwhelm yourself with having to manage and pay attention to too many networks at a time.  Instead, be strategic, profile your ideal donor and then determine what networks that you are most likely to find them.  Keep up to date on your competitor’s website and how they are managing their social media presence.  Then promote, promote, promote and have your Board and staff act as “Social Media Ambassadors” sharing the page with friends, family, and other interested individuals.  Keep content fresh, consider automating content with an automating app, and don’t forget to comment and interact with others.  Keep content 80% of interest and 20% promotional.

4.)  Take a look at similar organization’s annual reports, websites, and newsletters and compile a list of who is giving to them. Compile a prospective list of donors. Ask Board and staff if they happen to know anyone on these lists.  If so, begin to cultivate them.

5.)  Get the local voter or street records list, sometimes referred to as “Grand” lists and review this list with Board and staff based on property assessment, location, or other criteria that meet your ideal donor profile.  From there pull together a prospective donor list and cultivate!

6.) Ask for referrals from your current donors.  These donors already are giving to you and love you. So why not just ask them who else may they know who might be interested in becoming more involved in the organization.

7.)  Be sure when you are doing outreach at events or speaking engagements to bring along a guest book so that interested attendees can sign up to receive more information.  You have a captive, interested audience, so you want to be sure to get their names and contact information. Research them if possible, segment out those with greater interest and capacity for cultivation, and add all the other names to your mailing list.

8.)  Identify new attendees to your organization’s fundraising events and create strategies that will take their transactional attendance to possible transformational engagement in your organization.  One possible first step is to call those new attendees and find out what they thought about the event and if they see themselves getting more involved or interested in learning more.

9.) Capture interested website visitors with a website “pop-up” offering free information and resources.  Send these folks a welcome and begin to send them relevant informational emails in cultivation.  Ensure that your site is mobile-friendly as more and more folks are using their mobile devices to access content.

10.)  And, of course, you can always rent and purchase mailing lists from a list broker.

So there you have ten steps that you can begin immediately taking to start to stem the tide of donor attrition by adding new names to your donor lists.  These are the same steps that I use to help my clients build their donor lists. And, they work!

For a FREE half hour coaching session with me, email me now to schedule your complimentary time.  Offer ends Friday, August 4.

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How to re-engage lapsed donors in your organization

A lapsed donor is one who has lapsed from giving at least a calendar year.  They are the most significant donors to focus your efforts on re-engaging since they have already demonstrated an interest in your organization.

There are several ways to re-engage these lapsed donors.  Here are some suggestions that you can implement within your organization.

  1. Identify those donors who gave last year and yet have to donate this year.  Those are your lapsed donors.
  2. Add up the total giving from these lapsed donors.  Surely after seeing this number, you will want to spend some time trying to recapture them.
  3. Segment out the major donors from this list.  A major donor giving level will vary from organization to organization i.e. $250, $500, $1,000, or even more.
  4. Share this list with your Development Committee of the Board and discuss the plan of action.
  5. Have Board members identify those major donors that they can personally call on.
  6. Intend to call on these donors either through personal visits or telephone to secure a gift commitment.
  7. Plan to send a specialized segmented direct mail letter to all others not identified as major donors.

You could also use this same strategy for each appeal that you send out to be proactively trying to prevent lapsing from occurring in the first place.

For more a strategy on how to do this, visit this link here.  And, for a sample copy of a lapsing donor direct mail appeal letter, email me here.

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How to have an immediate impact in your new fundraising position

You have just been offered a job as a Director of Development and now what?

Well, over the past twenty years, I have had my share of jobs and have started some fundraising offices within nonprofits as part of my consulting practice.  As a result, I have gotten pretty good at figuring out what the first steps need to be when setting up your development office.

I am going to share with you some of these first steps on what to get started with immediately to make your first three months a success.  These first three months are a particular time of “newness” that you can use to your advantage.

Step #1 – Get established on your working location and equipment.  Ensure you set up your office area so that it will be conducive to your work style and habits and ensure that you have all of the hardware and software you need including training.

Step #2 – If you don’t have the required software, don’t skimp by using Excel.  Start right out by determining what your current and future needs may be and begin to research and present options for a donor database/CRM system that will meet those needs.  You cannot build a successful development program without this foundational component.  It is the “brains” behind your program.

Step #3 – Begin conducting a development assessment of the past fundraising efforts of the organization.

Step #4 – To carry out this assessment and to get acclimated to the new organization, use this time to meet with

  • Key leadership staff
  • Board of Directors
  • Any past and/or current donors
  • Prospective donors
  • Volunteers
  • Residents
  • Other staff
  • Anyone else deemed important to the organization

Step #5 – Use the data that you obtain during this development assessment process to begin to put together a series of recommendations based on best practices that you can put into place during your tenure.  Share these recommendations with key leadership and Board members to obtain approval and “buy-in.”

Step #6 – Begin to immerse yourself in the new organization’s programs and services.

Step #7 – Begin to craft a Case for Support if your organization does not already have one in place.

Step #8 – Determine the key projects that need attention in the immediate future and begin to manage them.  Get a handle on your development calendar including your annual fund and grant application and reporting deadlines.

Step #9 – Begin to put into place some of the recommendations that you outlined after conducting your development assessment whether they focus on major gifts, planned giving, individual giving, direct mail, etc.

These are some easy and straightforward ways that you can get up to speed quickly and efficiently in your new role and have an immediate impact on your organization’s fund development program.  Early wins=your success.

And, if you need help, let us coach you as you get acclimated to your new role!  Email me for your free half hour consultation. 

 

 

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How to ensure the success of your next fundraising campaign

Often, I get asked, “What is the magic behind a successful fundraising campaign?”

Well, it is not all magic.  There is some science.  And, with over twenty years of experience, I am going to share the top tips that have made it all “seem” like magic so that you can too.

How to ensure a successful fundraising campaign

I am going to share with you step-by-step the formula that I use with all of my clients to ensure that fundraising campaigns are as successful as can be.

#1 – Ensure that you have the best fundraising team possible.  Be selective in whom you choose, develop expectations and responsibilities in advance, and seek the chair of your fundraising effort first.

#2 – Once the Chair is in place, then have them assist you in the search for the rest of your fundraising team.  Be sure that you only select folks who do what they say they are going to do. Test them with small tasks first.  Be sure to select high-performing people to have a high-performing team.  And, don’t be afraid to say “no” to someone who just can’t meet the expectations or pass the “test!”  Never recruit as a group – always person to person.  Ensure you have a good mix of influential and effective candidates.

#3 – Divide up your fundraising team into different divisions i.e. events, mail, personal solicitation, phone, prospect rating, etc.

#4 – Create a fundraising goal that includes the costs of the campaign in the total.  It costs money to raise money so be sure that you calculate those costs into the overall campaign goal.  You can estimate campaign costs at 10% of the fundraising goal i.e. materials, staff, events, donor recognition, etc.

#5 – Create a gift chart to outline the number of gifts and prospects needed to reach your fundraising goal. Custom tailor the gift chart to your organization. It is not a one size fits all approach.  Email me for a copy of a campaign gift chart example.

# 6 – Develop a prospective donor list from both your current donors as well as by conducting overall research to find new ones.  Once you have your prospective donor list, then you will need to rate and rank them.  Get a committee together who will focus on rating prospects according to capacity, affinity, and interest.

#7 – Once you have rated your prospects, then you can tier them into an “A List,” “B List,” etc.  This ranking will allow you to focus your efforts on those who have the greatest capacity and interest in your cause.

#8 – Modify the gift chart as your campaign progresses depending on the level of gifts that come in.  If you have fewer major donors than expected than you need to adjust your lower tier of donors, etc.

# 9 – Employ a sequential model of fundraising.  Classify prospects according to assessed giving potential and start solicitation with the Top Giving Levels and move down.

#10 – Start with your “Family/Nucleus” gifts first.  Your Board, staff, and volunteers must demonstrate a commitment to the mission before you begin asking anyone else.  If they are not committed, how can you expect anyone else to be committed?  You should conduct all Top Giving and Family/Nucleus levels by personal solicitation.

#11 – Develop strategies to solicit the lower level donors i.e. direct mail, events, telephone, etc.

#12 – Be sure to develop a realistic month-by-month timeline to ensure that you keep the momentum of the campaign fresh and have key benchmarks to meet.

#13 – Develop ways to recognize donors of all giving levels to the campaign.  Donor recognition levels can inspire donors to give more than they may usually give.

Sequential fundraising is THAT important.  Once you violate the “Top Gift” solicitation sequence, your entire fundraising campaign is in jeopardy.  Failure to follow this approach lowers giving standards across the Board.

If I could choose the number one reason why most campaigns fail, it would be that they did not follow this sequential model of fundraising including asking their “family” first.  In fact, I have seen campaigns languish for years never reaching their goal.

And, if you need help developing your next fundraising campaign, let us help you! 

 

 

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How to create donor recognition opportunities for your fundraising campaign

An important part of any fundraising campaign is how you plan on recognizing your donors at different giving levels. While donor recognition opportunities do not motivate all donors, the fact is that some are. And, you need to be prepared to offer this valuable tool to inspire the sights of your donors who are motivated by public forms of recognition. Different things motivate different donors. So, always begin by knowing your donor.

Below I share with you a step-by-step method to creating Donor Recognition Opportunities that will inspire your donors to set their sights higher. And, public recognition inspires all donors from big to small and for all kinds of fundraising campaigns, not just capital ones.

There are several important guidelines that one should consider first before actually coming up with the recognition opportunities.

First, it is important that you have several recognition opportunities available for your donors to select.

Second, the top-level gift should be larger than the largest gift projected during the fundraising campaign.

Third, the cumulative values of the donor recognition opportunities should add up to significantly greater than the overall fundraising goal.

And, lastly, the donor recognition opportunity should be two to three times the costs of construction, furnishings, or overall costs of the opportunity.

Once you have given these guidelines consideration, here is how you can establish your donor recognition opportunities step-by-step.

Step #1 – Invite key staff and volunteers to a Donor Recognition Planning Meeting and review your building plans or fundraising campaign outline.

Step #2 – Brainstorm all of the possible named gift opportunity “places” or “things” i.e. main lobby, flag pole, endowed department, scholarships, staff positions, etc. Think expansively and creatively remembering that nothing is off limits.

Step #3 – Write each possible brainstormed building place on a sticky note and put them on the wall in random order.

Step #4 – Look at your campaign gift range chart and determine how many gifts are needed at each level to reach your goal.

Step #5 – Determine the “Curb Appeal” gifts. These gifts are those that provide value for the opportunity and are not necessarily just based on gift size. For instance, a lobby will hold more “curb appeal” than say a large industrial kitchen located in the back of a facility hardly ever seen by the general public.

Step #6 – Match the top “Curb Appeal” gift with naming opportunity that is the largest on the list, etc.

Step #7 – Be sure to present this Donor Recognition Plan to the Board to ensure that they approve of your plans. Ensure that the Board votes to approve this plan. Don’t skip over this step! You need the Board’s support.

There are also other ways that you can recognize your donors. For instance, you can recognize mid-level to lower-level givers with a group plaque, listing in the print donor honor roll, or on the organization’s website. You may also choose to run brick and pavers or wall tile program. And, inevitably, you will recognize all of your donors at a post-campaign celebratory event.

If you would like to see a sample Donor Recognition Plan, email me!

One thing that you do need to ensure is that you are consistent with how you recognize your donors. Everyone needs to be treated equally regarding what his or her gift will afford in a named gift opportunity.

And, now the organization is ready to begin asking for gifts from donors using these different named gift opportunities as a way to motivate donors to step up their giving to the campaign.

And, if you need help developing your fundraising campaign donor recognition opportunities, let us help you! 

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How to turn your fundraising event attendees into supportive donors

Spring is the season of Galas or so it seems.

And, rightly so, the weather is turning warmer and everyone’s thoughts seem to be on getting out after a long winter.

I am often asked by organizations who are holding galas or other fundraising events, what is the key to turning event attendees into loyal donors?

I do have to say that this is not an easy feat in and of itself.  Most folks who attend a fundraising event are doing so because they have either been invited, they are attending because it is a social night out, or for a host of other reasons that are not necessarily about a measure of donor commitment or loyalty.

I believe that there are a number of things that you can do to stimulate interest both pre, during, and post-event to at least begin to develop a relationship with some donors who may be interested in supporting your charity in a more transformative way.

I will outline several steps below that you can take to steward your event attendees after the event.

Here is a possible post-event stewardship plan:

New attendees – Call preferred for all by Board member with a relationship or other assigned designee.  Mention donation made, how the money will be used, and learn about their possible interest in the organization.

Repeat attendees that did NOT donate – Handwritten note by Board member with a relationship or Executive Director.  Thank for continued support of the event and ask about their interest in learning more about the organization.

Repeat attendees that did donate – Call if a relationship or donated more than $1,000, note for everyone else.  Mention donation made, how the money will be used, and learn about their possible interest in the organization.

Donated but did not attend – Call if a relationship or if donated more than $1,000.  Mention success of the event and how the money donated will be used.  Ask about their interest in learning more about the organization.

People who donated significant auction items – Personal call by the person with a relationship and letter of acknowledgment.  Executive Director and/or Board Chair may send a note as well.  Mention how the money will be used and ask about their interest in learning more about the organization.

While you don’t have to follow this post-event stewardship plan to an exact science, the one thing that you need to do is to have already developed your post-event stewardship plan before the event even happens so that immediately after the event, you can put this plan into action.

Think expansively and creatively about how you can recognize your donors.  But, the important part is to put some thought in it, to begin with.

Key things to think about:

  • Who?  To what categories of event attendees?  For instance, Silent auction and raffle donors? First-time attendees, etc.  And, who will be doing the follow-up?  Board members with relationships, staff with relationships, etc.
  • What?  What vehicle will you use to steward your donors?  Will it be a hand-written note, a telephone call, or a visit, etc?  Will you use e-mail and social media?  And, how?  What is the message?  What do you intend to share with them?
  • When?  When will this stewardship take place?  Immediately after the event?  A week or so later?
  • Other follow-up and planned engagement?  What planned follow-up after the initial engagement will you schedule in?

The key piece again, please do not wait until it is too late.  Think through your post-event stewardship plan, seek buy-in and ownership from the Board, and be ready to implement fairly soon after your event concludes.

While these are some of the hardest folks to take from transactional to transformative, it can be done with a bit of thoughtful planning and strategy.

Don’t let your event, just be an event. Use it as a way to cultivate potential new donors who may be interested in who you are and what you do.

And, if you need help creating a custom post-event stewardship plan, let us help you!  Email me today to schedule an hour to get your event stewardship plan in shape!v

 

 

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How you can find prospective donors for even your small nonprofit

One may think that there are only a limited number of donors to go around, but think again.

In my work, I assist small to mid-sized organizations in running their first capital campaigns. Many do not have established donor bases to tap into for an already existing pool of major donors. So, I assist. And, I am here to say that yes, you too can, even in your small nonprofit, develop a list of 25 or more possible major donors to your organization.

I am going to take you step by step on how to begin establishing that prospect list for your nonprofit organization and then share with you some next steps on how to prioritize that list.

Here are the steps you can take to develop your prospect master list:

  • Use informal organizational networks including organizational friends and family members i.e. Board members, staff, volunteers, etc. to identify prospects within their respective networks who have both wealth and affinity for the cause.
  • Ask your current donors when meeting with them if they know of anyone else who may support the cause.
  • Research prominent donors to other similar organizations who may be making small gifts to your organizations. It is helpful to obtain copies of their annual reports, newsletters, and even event programs to see the giving levels of the prospective donors. Annual reports may be found online or hard copy by request.
  • Research who has been attending your events. There are folks here who already know of your mission and may be willing to deepen their relationship with you.
  • Research others who live in your community who might give to you using voter, property (Grand), the local chamber of commerce, houses of worship, and other lists.

So now what do you do when you have all this information?

Here is what I recommend:

Cull through all these lists to create a Master List of prospects whom you think “make the cut” regarding any possibility of capacity, affinity, or connection.r

Let me define these for you.

  • Capacity – ability to give
  • Affinity – philanthropic to a similar cause or interest
  • Connection – involvement in your organization

Once you have this Master List developed then work with the fundraising/development committee, Board of Directors, or other volunteers (they should know folks in the community) to rate and rank each donor during a rating session to determine potential giving capacity, interest, and affinity.

Then, organize lists of donors into tiers of giving to decide who is approachable first, those needing further cultivation, etc.  I just happen to like this worksheet right here!

And, from there you have a Master List of the top 20-25 prospective donors to your organization.  Even the smallest of non-profit organizations should be able to come up with a Master List of at least 25 potential donors after following these steps.

And, if you need someone to help build your prospect list for your next fundraising campaign, Development Consulting Solutions is always here for YOU!

 

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Donor cultivation and stewardship – it’s all unique and one-of-a-kind!

I often get asked from my clients, how many touchpoints do you need to give to a donor at a certain level?

And, my answer – it varies.

There is some science to the whole matter.  In fact, after I conduct a rating and ranking session, I will combine all of the numbers and come up with a formulaic cultivation quotient.  The number of touches estimated for a particular donor’s rating score and ranking.

To me, that is a guide.  What we must remember is that each donor is an individual.  They have different motivations for giving, different ways that they would like to be recognized, and different things that they are interested in giving to support. And, that means that they all have different cultivation and stewardship needs as well.  So, while I could say that the cultivation quotient for Mrs. Smith came out to 20 touches per year, she may not want to be contacted or that involved with the organization.

I advocate that each necessitates a thorough review and a particular strategy custom and unique for them.  And, often, it takes a wise fundraiser who has been in conversation with the donor to recognize what is or is not important to them.

Now, I am not advocating that we throw the “moves management” system of relationship-building out.  However, what I am recommending instead is that we seriously advocate instead for a very donor-centered process that takes in the uniqueness of each donor into the “moves management” equation when developing strategies for cultivation and stewardship.  Let’s not reduce our donors down to formulas, quotients, or tactics.  They are people – unique and compassionate!

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More than just a monetary number – the capital campaign feasibility study

There are quite a number of groups seeking to test the feasibility of a possible capital campaign.

And, so naturally being a consulting firm catering to small fundraising shops, I tend to get asked to talk about these, and I am currently in the midst of one now.

What I find is that groups think that feasibility studies only test for one thing and that one thing is a financial goal.

I assert that there are many different types of things that a feasibility study tests for as a result.  Financial goals being just one.  In fact, more importantly, feasibility studies look at both internal and external perceptions and find areas of opportunities and challenges for an upcoming campaign.  Things such as “what about that large endowment the organization has?”  or “it doesn’t have strong fundraising leadership?” or “you need to ensure that so and so is on board and committed to launching a full-scale effort.”

Through a feasibility study, a group also finds out about potential campaign leadership, which by the way, can make or break a proposed capital campaign, other competing campaigns currently or just recently completed within the same community, and potential prospective donors to a capital campaign.  Also, a capital campaign feasibility study will unearth the general economic outlook both nationally and locally and how will that impact the success of a capital campaign.

So, as you can see, a feasibility study done correctly will provide lots of data that can then be used to refine the case for support, determine if it is time for the organization to mount a significant campaign, and what is the recommend campaign plan based upon findings as part of the study.  Oh, yes, and what fundraising goal will be feasible.

If you or your group is considering an upcoming capital campaign, I urge you NOT to skimp on the process of conducting a feasibility study.  You will learn more than just – can this campaign make a go of it.  You will find out exactly how much and how it can or cannot!

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The revolving fundraising door at our organizations

What is going on out there?

For the past year, I have watched development jobs come and go on the job boards.

I lamented that folks like myself with over 20 years of experience, certifications, and education were getting passed up for the lower paid, less experienced, “greener” young ones.  And, there might be some thread of truth to that.  I can’t be all wet behind the ears.

But, the funny thing is lately, after a year of scanning job postings, I started to notice something very, very interesting.  The same postings were coming up.  A place down in Newport, a place in Dorchester, the same job, needing the same person.

It is so costly to keep having staff turnover.  Expensive in many ways.  Not just because of having to fill a vacancy, but costly to the organization as its donor base is disturbed.  Development is all about relationships, and if high staff turnover continues, those relationships are never truly built.

Another thing that I have noticed is that some organizations are being a bit more proactive.  Seeking out referrals for qualified candidates and then actively recruiting instead of waiting for candidates to apply and come to them.

The smarter move, I might add.

I guess I pen this manifesto for all those development professionals who have spent years in the field honing best practices and in some cases even developing them.  It is time that organizations stop looking for the cheapest, youngest, idealistic help.  It doesn’t serve the organization to cut the budget by hiring inexperienced newbies for its top position, particularly when it comes to fund development.  Can you afford to take a chance on someone who is “green” behind the ears to figure it out as they go along?

I think naught!  If you think differently, leave me a comment below.

 

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Is it time to go public with our campaign? Maybe, maybe not!

When to go public?

A question that I am asked a bit. When can our capital campaign go public? When can we put a thermometer out on our lawn? When can we start to ask our constituents and the general community? When can we have a special event and invite everyone?

The all important question, “is it time?”

My answer? Not until you have a certain number of lead gifts in hand. And, not before you have your institutional family committed to the campaign – folks like your Board of Directors, staff members, Campaign Steering Committee members, and your leadership donors.

Only when you have the majority of lead and family gifts in, is it time to broaden the focus and extend the solicitation process to more prospects through a more public campaign. Some say that you should have at least 50-70% of the entire gifts needed for the campaign in hand. But, one thing is for sure, the “Quiet” Phase is that indeed – quiet. There is no general advertising of the campaign or overall campaign fanfare.

Once you have a significant number of advanced gifts in hand, it is at this juncture that you should plan a campaign kickoff celebration event to aid in your project going “public.” This “public” phase is when the work of soliciting the organization’s broader constituency begins.

Then and only then should you put that “Community Thermometer” in the ground and start having your special shindig events.

So, is it time to go public – maybe or maybe not.  It all depends upon the science of campaigns and it is not something that you want to rush.

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Do not take Fund Development best practices at face value!

Best practices. We hear that phrase often. This week, I even read a question asking if “best practices were misleading?”

Are we throwing that phrase around to legitimize our field? Our do we have best practices and what are they?Fundraising best practices

Well, I contend that the only true best practice is one that is grounded in research. Those are harder to find that than the other so-called “best practices.”

While studying for my Masters Degree in Philanthropy and Fund Development, I learned that philanthropic research has many gaps. However, there are people now making a study of philanthropy and conducting research. Folks like Adrian Sargeant and Jen Shang. More research is needed in our field to support our work.

I can tell you that when research is grounded in actual studies, it works. Eye motion studies, philanthropic psychology, etc., etc.

Recently, I have been working on many appeal letters. And, each time I craft one for the client, I get pushback. Why do you indent paragraphs? Why do you repeat yourself often? Why is there bold and underline? Do we need to include a P.S.? And, can’t the letter just fit on one page? Must we send more than one appeal?

Pushback that is unfounded. And, I push back with research. When the client allows me to use those best practices, the results speak for themselves.

When those results speak for themselves, it is magic. Campaigns get funded, new projects begin, and donors have the opportunity to make a greater impact.

We forget that the fact (and it is a fact) that we are not beggars. Donors want to give. And, to give, they must be asked. Asked in a way that moves them to feel connected to their core beliefs through your organization’s mission.

Know the difference between unfounded best practices and best practices backed by scientific research. Read blogs, stay current with trends, and keep furthering your informal and formal education. When you do, and you practice it, your results will show all the difference.

Fund development does have a researched body of knowledge. Don’t allow anyone to convince you that it does not.

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