Dear Charity Clairity,

We provide administrative, educational and financial support to a range of other charities within our statewide member network. In other words, our mission is to underwrite much of the “overhead” for agencies who do the work. Yet they still do their own fundraising, which we help them to do through training. We have a few of our own programs, but don’t have a lot of our own boots-on-the-ground direct services. No one wants to pay for what we do. How do I tell a compelling fundraising story?

— Not Saving Lives

Dear Not Saving Lives,

First, a reality check: Very few charities can actually say they’re in the business of life and death. Yet they still solve very real problems and meet pressing needs within their communities and the world. So, stop feeling “less than” because you aren’t doing work you personally consider dramatic.

I promise, there’s lots of drama to be found!

The key to storytelling is to present the problem – why you exist – in a compelling, emotional manner that draws people in and makes them want to be a part of your drama. You make the “why” somewhat sexy (i.e., stimulating) so it provokes an inspired response.

And so many things can be stimulating in this regard. You intimate a fear “overhead” is not very sexy. That’s like saying a person’s mind isn’t sexy, only their body. The truth is the two cannot be divorced from one another.  “Overhead” is a myth nonprofits persist in colluding with donors to believe is somehow sordid because it’s not a “program.” But, without overhead, there are no programs! Overhead and program are inextricably intertwined. Period.

So, let’s consider the types of stories you might tell.

I don’t know the specifics of your cause, but generally there are two types of stories: before and after. They’re both valid; you’ll just use them at different times.

Unsolved problem story

This is a fundraising story. You’ll use it in an appeal, on your website, in your newsletter or on social media to make the case for support. It’s best to pair this problem with a suggested realistic solution so the donor can envision how their support will resolve the problem.

While it’s relatively easy to craft a story about a hungry child who may die without nourishment… or an abandoned puppy who may die without the solution of a loving adoption… or of a frail, isolated senior who may die without supportive and medical services, it’s not always so easy. But, it’s doable!

For example, here are a few problems that are not necessarily life and death. Yet the solutions offered make a demonstrable difference in people’s lives:

• [Chronic disease] Margaret will suffer tremendous pain from this disease. Funds are needed to provide palliative care.
• [Legal services] People in rural areas don’t have access to services to meet basic needs. Funds are needed to provide attorney staff to bridge the urban/rural legal divide.
• [Arts] People without arts access lack empathy and understanding of how to value things they don’t already know how to value. Funds are needed to provide music to move us… paintings to inspire us… books and films to entertain us.
• [Environment] Overfishing, pollution and climate change will lead to the death of the ocean within our lifetimes. Funds are needed to make our ecosystem more resilient.

The story should be about one person, animal, place or thing. It should be simple enough the donor can immediately wrap their head and heart around it, while simultaneously paced with emotional adjectives and compelling imagery. Begin an appeal with a single emotion-packed sentence that enables people to imagine the situation with which the protagonist of the story is confronted.

You shouldn’t try to tell all your stories at once! You may provide skills and tools to help other agencies harness wisdom, share collective power, and share analysis and insights about systemic trends, challenges, and solutions. But that’s not a story. It’s an organizational mission statement. And people aren’t buying your organization.

People will buy a story of change. To tell such a story, pick one need you address and pair it with one thing you make possible, whether directly or indirectly.

Your best fundraising stories are those where many people perceive the problem and want to solve it. So, think about the root reason for your organization’s existence. What problems do you exist to solve, and which of those do your donors also want to solve?

Solved problem story

This is a gratitude (aka donor retention) strategy. You’ll use it on a thank-you landing page, thank-you email, thank-you letter, newsletter, impact report, gratitude (annual) report, or anyplace else you honor donors and showcase the transformational power of their giving.

You don’t use this kind of story to raise funds, because when the happy ending is already achieved there’s nothing for the donor to do. At the same time, you don’t want to leave donors hanging with the feeling their gift may have gone into a black hole. They need to know they made a real difference.

When donors don’t feel their gift is contributing to progress, they’re unlikely to give again. That’s why you have to tell happy stories as well as sad ones.

Again, with these happy stories it’s important to provide specifics. “You made a difference” is too general. “You provided meals for a week” is something the donor can visualize. It’s likely to make them smile. And, hopefully, to want to do this again.

Donor’s story

Inherent in all your fundraising and gratitude strategies is the story the donor wants to be able to tell about themselves. Focus on who donors want to become.

When you offer the opportunity to give one or more of your stories a happy ending, you make it possible for donors to love themselves when they look in the mirror.

By showing donors how much they matter, you bring them meaning.

Final thoughts

You mention the charities in your statewide network have boots-on-the-ground services. Even though you don’t, you definitely enable them. They couldn’t do this work without your support, so talk about the people they help. And how they’re helped.

If people are helped in a variety of different ways, perhaps even through different organizations within your network, then you have a variety of different stories. Write them down on a white board, and begin to consider which are most compelling. You might even survey your donors to find out which areas are of greatest interest to them; then, use that information to inform future fundraising

You’ve no doubt got many beautiful stories, and ones well worth telling.

— Charity Clairity (Please use a pseudonym if you prefer to be anonymous when you submit your own question, like “Not Saving Lives” did.)

How do you tell a compelling fundraising story when your cause doesn’t have a happy ending? Let us know in the comments. 

The post [ASK AN EXPERT] How To Tell A Compelling Fundraising Story appeared first on Bloomerang.

Dear Charity Clairity,

We are a small nonprofit. We usually have a few events annually bringing in added revenue. This year is our 60th year in our community. A 60th Anniversary Celebration is scheduled, and the sponsorship giving levels are higher than we normally ask for. Many choices of levels and an option to place an ad.  My question is, I have heard from a few agencies I connected with and they say they are going to sponsor. I would like to ask what level they are considering – but I don’t want to seem too pushy. My CEO will want information, that I do not have. Any suggestions?

— Fear to Tread

Dear Fear to Tread,

As Franklin D. Roosevelt famously said in his inaugural address, “the only thing we have to fear is fear itself.”

Don’t be afraid about seeming ‘pushy”

By even using this word, you’re putting a negative spin on what should be seen as an opportunity for these sponsors. It’s something you would love for them to be able to take advantage of – not something you’re trying to browbeat them into. It’s not just good for you; it’s good for them too.

When you come from a place of fear in fundraising, you’re going to be dead on arrival.

Which is why I so often talk about my philosophy of philanthropy, not fundraising. The former connotes “love (philos) of humanity (anthropy)” while the latter focuses on money – something most people don’t like to talk about in polite company. It’s also why I so often work with organizations and boards to help them overcome fundraising fear.

Shifting your approach will go a long way towards shifting your results in a positive direction

As one of my mentors, and founder of The Fundraising School, Hank Rosso, taught me: “Fundraising is the gentle art of teaching the joy of giving.” When you approach your work from the perspective of giving, not taking, you’ll bring both yourself and your supporters greater comfort and joy.

How might you approach a conversation with potential sponsors in a manner that focuses on joy?

Begin by retiring the “tin cup” approach that feels like begging. Stop with the “let’s twist their arm” or “let’s hit them up” or “get them to give ‘til it hurts’” approaches that feel not just coercive, but even violent. Replace them with an uplifting, joyful approach that actually makes people feel good about the opportunity with which you’re presenting them. After all, we know from MRI research that even simply considering making a gift brings people a jolt of feel-good dopamine – what’s been called the “warm glow” effect.

If someone tells me they’re considering a sponsorship gift, I would immediately respond with something like this:

“That’s so wonderful!!!!  Do you have an idea what level makes the most sense to you? I’d love to chat about the benefits available with the different opportunities we have so we can save a spot that will give you the biggest bang for your buck!”  

Play up the scarcity factor a bit

One of the principles of influence we’ve learned from research in psychology, neuroscience and behavioral economics is people have a fear of missing out (FOMO). So, let them know you only have X spots available for some of the top tiers. Think about what you can offer at various levels that will entice them. Here are some ideas:

• Swag in favor bags
• Name and logo included in advertising
• Name included in program
• In-person signage or digital banners for particular area of underwriting (e.g., reception, bar, entertainment, special stages, dinner, dessert, video program, livestreams, auction, raffle, etc.)
• Speaking opportunity at event
• Speaking opportunity at public relations or media event preceding the celebration.
• Extra tickets
• VIP reception

You can also create custom packages

Ask your prospects what would make sponsorship more valuable to them, and if certain perks aren’t quite cutting it, replace them with something that makes sponsors excited. Maybe it’s a one-time volunteer opportunity for their staff. Or maybe it’s an in-kind educational program you can deliver for them.

Once you have a few sponsors in place, use them as “social proof” leverage to attract other sponsors

Another principle of influence is that people want to be included among their peers. If you can say “XYZ Bank is giving at this level” or “Generally, people with budgets your size select the X Tier” that will help sponsors to select an appropriate amount. No one wants to feel cheap. At they same time, no one wants to be a chump.  Help them find a giving range they’ll feel good about!

Quantify your value in a donor-centered way

The fact this is your anniversary does not matter to sponsors – or to most any donors. What matters to supporters is impact – what they can accomplish, through you. So, the fact this is your 60th does not justify raising your prices. What does? It’s the fact you have a plan in place to reach more people. Plus, the fact that the people you reach are likely to match the demographic the sponsor wants to reach.

The more people you’ll reach within the sponsor’s target market, the more valuable sponsorship is to them. How will you reach more at this event than at past events? Will you have:

• More attendees?
• More outreach to particular demographics (that may match sponsor demographics)?
• More social media outreach?
• More advertising?
• More partnerships with other organizations who will also carry your marketing messages?
• More visibility via media (e.g., television; radio; print publications; digital publications) and public relations events?

It’s always a good idea to take a look at sponsor packages from similar organizations

Overcharging will scare away sponsors, and undercharging will lose you opportunities and undersell your value. Check out the sponsors who choose to support other nonprofits in your area – paying attention to their levels of support – and reach out to them first. You know they’re philanthropic. And you know they see the value of being perceived as good corporate citizens.

Nothing to fear here!

— Charity Clairity (Please use a pseudonym if you prefer to be anonymous when you submit your own question, like “Fear to Tread” did.)

How do you approach sponsorship giving levels? Let us know in the comments. 

The post [ASK AN EXPERT] How To Best Approach Sponsors Around Different Giving Levels appeared first on Bloomerang.

Engaged board members can really help make year-end fundraising soar

But how do you turn board members into fundraisers? You need a board engagement strategy!

Late summer is a great time to hold an “inspiring philanthropy” (aka board fundraising training) session

Consider who your potential advocates are (e.g., board, advisory group members, committee members, active volunteers, major donors, key staff), and invite them all to attend. You might do this in lieu of a regularly scheduled meeting or perhaps as a separate session. Whatever you do, don’t give it short shrift. You’ll need 60 to 90 minutes to gracefully cover the territory.

These sessions are best held in late August, September, or October – in time to fire folks up for year-end major gift asks. You’ll want to be prepared to then immediately provide volunteers with assignments so they can hit the ground running!

TIP: The key to getting board members to do what they’re predisposed to hate (i.e., “fundraising”) is to reframe the session as being about something they’re predisposed to love (i.e., “philanthropy” – which literally translates from the Greek to love (philos) of humanity (thropos). And maybe even throw in something else folks love! I’ve run sessions entitled “How Philanthropy Can Be as Addictive as Chocolate.” I’ve even offered chocolate tastings at these events (if you’re going virtual, you could mail some sample chocolate kits in advance). I’ve found folks enjoy this approach so much more than “Fundraising Training Sessions,” so you’ll get a larger turnout. Plus, you’ll energize folks a lot more than if you start from the perspective of: “this is your chore; you must do it, even if you hate it.” Your goal is to get your board members to LOVE facilitating philanthropy!

Consider inviting an experienced fundraiser and meeting facilitator to run the session

Why hire a facilitator? While you can definitely do it on your own by following the tips below, I often find board members are more receptive and open-minded when an outsider is brought in. They listen more. They believe more. They are more relaxed and less combative.

Sorry, but it’s just the nature of the beast. And, since you’re likely going to be raising major gifts, it will be money well spent!

TIP: If you do hire a facilitator, I suggest you tell them you’d like them to follow the agenda outline below:

I. Introductions

A. Ask folks to describe why they became involved with your organization, and what continues to keep them passionate and inspired

Give each person a turn if you have a small board; otherwise, pair folks up and have them break into new pairings several times (you can do this virtually using breakout rooms). Your objectives are to:

1. get folks comfortable telling their own story, and
2. fire folks up from listening to other people’s stories.

TIP: The more opportunities folks have to tell the story of their involvement, the more comfortable they’ll become sharing this story with others. Usually, folks will have a personal connection to the cause. Or they’ll have an outcome story to tell – something they remember from having been involved with you over a period of time. Ask board members – and staff too – to engage in some form of this exercise at least annually.

B. When storytelling has concluded, ask the group for feedback

Ask first for volunteers. Then call on those who may be a bit shy.

1. How did it feel?
2. What did they learn?
3. Did telling their story feel at all scary?
4. Did it feel less scary than asking for a gift?
5. Do they think they could consider reframing ‘fundraising’ as ‘storytelling’ moving forward?

TIP: This is often a time where I ask folks if they could they maybe move from ‘fighting’ to ‘inviting’ (e.g., shift from phrases like “It’s time for me to hit you up” or “twist your arm” to offers like “I’ve got a great opportunity for you” or “Would you like to join us?”).

II. Philanthropy, not fundraising

A. Discuss why you do fundraising

To create happy endings! For your organization, for those who rely on you, and also for your supporters. Talk about the need people have to enact their values and be part of something larger than themselves.

Make this another opportunity to frame what you’re doing as storytelling. You’re helping prospective donors visualize the story of your cause.

Think about different story protagonists. These are the people, animals, places, or values you’re trying to sustain, restore, or heal. Next, think about the problems these protagonists must overcome. Maybe your board members even relate personally to some of these problems, and that’s why they joined your board. Finally, talk about outcomes you – and your prospective donors – seek. This is where you connect the donor’s own personal narrative to your collective narrative.

TIP: Teach your board askers to begin by engaging in dialogue with their assigned donors. Effective philanthropy facilitation is never, ever a monologue! Engaging supporters requires asking some generative, open-ended questions that will help board members learn more about what floats their assigned donor’s boat. They can simply ask the same question you asked them at the beginning of your “Inspiring Philanthropy” session: “Why did you first give here?” “What keeps you giving?” Other questions might include: “What programs interest you most, and why?” “What problems feel most pressing to you right now?” “What questions might you have of me?”  Encourage your askers to listen twice as much as they talk.

B. Discuss the fact that both askers and donors are ’empowerers’

They bring your stories to life. They give the stories you tell happy endings. They help those you serve stand up and fight, making askers, donors, and your beneficiaries heroes in their own right. Your job is simply to facilitate their empowering philanthropy.

TIP: Reframe fundraising in your own mind. It’s important to really believe this is a noble, rather than an evil, pursuit. Asking isn’t begging. Asking isn’t taking something away. Asking is giving folks an opportunity to join in something wonderful. If you’re excited about a new restaurant, you share it – right? If you experience a wonderful movie, you share it – right? Don’t be stingy when it comes to sharing what’s wonderful about your cause.

III. Overcome fear of fundraising

A. Discuss what folks are afraid of

The only way to overcome fear is to address the elephant in the room. Usually, it boils down to two things: (1) fear of rejection, and (2) fear of looking dumb or unprepared.

Tease these fears out by asking folks what words they associate with fundraising. Then ask them what words they associate with philanthropy. You may be surprised with the results.

TIP: Too often, people categorize “fundraising” as an onerous chore. Often, the feeling fundraising is burdensome comes from a previous negative experience – perhaps when they felt rejected or perhaps when they were on the receiving end of an ask they didn’t feel good about.  Overcome that argument this way.

B. Destroy the money taboo

People think fundraising is about money, and they hate to talk about it. Persuade them it’s not about money. It’s about outcomes. Money is just a symbol of what it can accomplish.

TIP: Usually, what folks are telling themselves is that fundraising is begging. Use your board session to retire this outdated “tin cup” notion. Overcome that argument this way.

C. Help board stop wallowing in negativity about fundraising

What they need help understanding is that they’ll gain a boatload of satisfaction by connecting with their own passion and then helping others enact their similar passions. You can help them become inspired this way.

TIP: Consider asking them the following questions:

1. What are you telling yourself that keeps you focused on the negativity?
2. What will you have to give up to leave the painful associations behind?
3. What will you gain from leaving the pain behind?
4. Who benefits from you staying in pain and self pity?

Closing thoughts: Turn board members into fundraisers

In the end, it should become abundantly clear to everyone that when board members don’t engage enthusiastically in fundraising, no one benefits. It’s a quadruple lose. A lose for the organization; a lose for the board member; a lose for donors denied an opportunity to passionately invest, and a lose for those who rely on your mission continuing to thrive.

But it’s easy to turn board members into fundraisers once they understand the very special role they play.

What tactics do you employ to turn board members into fundraisers? Let us know in the comments. 

The post Foolproof 3-Step Strategy To Turn Board Members Into Fundraisers appeared first on Bloomerang.

Dear Charity Clairity,

I’m wondering what role direct mail plays in our digitally-dominant world? My boss wants me to schedule fewer hard copy mailings, and rely more on less expensive email and social media. But I wonder if in the long run the ROI is better for direct mail than digital? Is there any research on open, conversion and retention rates for the different mediums? I did stop donor acquisition mailings a few years back because returns were so low. But, now I’m wondering if I was being pound-wise and penny-foolish.

— Direct and Digitally Dumbfounded

Dear Direct and Digitally Dumbfounded,

Great questions!

As media options continue to multiply, choosing the best channels becomes more and more fraught. And, as with most things, there’s no one right answer.

The truth is that reaching people today is more challenging – and more expensive – than it was 40 years ago when I began in fundraising. That being said, it was expensive even then!

You have to spend money to make money

For donor acquisition, direct mail returns of 2% were considered good then. And it cost $1.25 to raise $1.00. The real money came with repeat giving as measured by donor lifetime value. Still, the acquisition effort was essential because without it there would be no lifetime value whatsoever.

That’s still the case, even though direct mail acquisition guru Tom Ahern notes today 1% is cause for a party! John Lepp says anything between 0.25 and 1% is reasonable today. It’s not a lot, but it’s definitely more than nothing.

And what about other acquisition channels? Email, social media, text, advertising, events… the choices go on and on. You’ll want to try some of these, and your choice will depend on the channels you know your constituents frequent. Nothing will come from nothing. You should know, however, a recent NonProfitPro article found results disappointing:

“One of the biggest advantages of direct mail is that it yields a much higher response rate compared to other channels. Despite all the hype, the average response rate of online and social media channels is disappointingly low. The average email response rate is around 0.1%, the average response rate of paid search is 0.6%, and 0.2% for online display marketing.”

You also have to spend money to keep money

Think about it this way: If it’s your own money, perhaps you hire an investment advisor to make sure you don’t lose any value and also grow value over time. What if you were to consider your organization’s house list (any donors who’ve given to you in the past) your “donor investment advisor?”

Effectively, your list can advise you regarding who already cares about you. Used wisely, it can suggest those to whom you may wish to pay some special attention (e.g., first-time donors; monthly donors; upgrading donors; lapsed donors; major donors; event attendees, etc.). One way to do so is by sending them hard copy mail. In fact, per guru John Lepp, if you send direct mail to this house donor list you’ll get a response rate of 10 to 20% for your direct mailing.

Let’s look at some of the advantages of direct mail

It has a longer lifespan

A GLW Media study shows direct mail has an average lifespan of 17 days while email only lasts an average of 2 seconds. Often, multiple people in a household will see the direct mail piece lying around on a counter or kitchen table.

TIP: Include a QR code on your mail piece to help people take action more conveniently. Further personalize your communication through follow-up emails that serve as reminders to folks to take another look at your mailed piece.

It has a higher and faster response rate

A Direct Marketing Association report found 4.4% of people respond to direct mail while only 0.12% respond to emails. Hubspot found direct mail also speeds up the purchase timeframe. On average, any purchase decision (nonprofit donations, too!) takes longer than a week and over a third take more than a month. However, with direct mail, 73% of purchase decisions take only 1+ day.

TIP: Use one or more of these strategies to maximize the chance your letter will get opened. Also take the opportunity to personalize your mailing inside with personal, handwritten notes. It will ensure more folks pay attention to what you’ve written.

It offers a tangible, personal, memorable connection

A United States Postal Service study found 71% of Gen X and older consumers find mail to be more personal than online communications. They’re excited when they receive mail from you! Even 72% of Gen Z said they’d be disappointed to no longer receive mail.

TIP: Integrate direct mail with digital campaigns to create a synergistic effect that increases engagement. SG360’s research reveals integrated campaigns capture 39% more attention than digital-only initiatives. Moreover, these multifaceted campaigns provoke a 5% increase in emotional intensity, leading to a more memorable and impactful experience.

Bottom line

Different reports and studies yield slightly different numbers, but everything points to the fact that direct mail is more than alive and well and still plays an important role in donor acquisition, retention, and upgrades. And when it comes to building personal relationships, it generally outperforms the alternatives.

Alas, it costs more money than it used to and it takes more work. There’s simply no way around this reality.

So, it’s time to dispel the notion you can be successful on the cheap. The best course forward is to simply budget more for both donor acquisition and retention, and put in place written strategic plans to help you accomplish your fundraising goals in the most effective way possible.

Be dumbfounded no more!

— Charity Clairity (Please use a pseudonym if you prefer to be anonymous when you submit your own question, like “Direct and Digitally Dumbfounded” did.)

How do you use direct mail in your fundraising? Let us know in the comments. 

The post What Role Does Direct Mail Play In Fundraising In A Digital World? appeared first on Bloomerang.

Dear Charity Clairity,

I’ve been hearing a lot about storytelling and want to be sure I avoid common pitfalls. My boss wants to be sure we incorporate the story of our history, plus awards we’ve recently won, into our narrative. I’m not so sure that’s compelling to donors. What mistakes have you seen nonprofits make when it comes to storytelling and engagement? 

— Seeking Enlightenment

Dear Seeking Enlightenment,

One of the biggest mistakes nonprofits make is filling their communications with cold hard data rather than emotional stories. For more information about how to avoid falling into this trap, read this on why you want to appeal to emotion rather than reason. Especially in a fundraising appeal!

But let’s take it back a few steps. Before you get to the point of crafting compelling stories, you must understand (1) what a story is/is not, and (2) what’s engaging/not engaging.

So, today, I’d like to talk about three other ways nonprofits fail to put their best foot forward when talking with prospective supporters about the problems they address, the solutions they seek, and how the donor can help make a positive impact.

1. A story is not a category

Don’t lead with your service category! When asked what you do, don’t tell me you’re an arts organization, social services agency, university, hospital foundation, school, international aid organization, animal rescue mission, environmental nonprofit, mutual aid society, civil rights group, or any other category of service. These are just empty structures.

Instead, tell me something specific and meaningful that calls you to this mission. Get to the root of why you feel you’re engaged in tackling one of the world’s — or your community’s — most pressing problems. Talk about the single most important thing you’re dealing with — or care about — right now.

• You’re creating opportunities for struggling artists to bring beauty to the world.
• You’re healing sick people, who will otherwise suffer.
• You’re giving tomorrow’s leaders the knowledge and skills they’ll need to become productive members of society.
• You’re engaging in life-changing research, without which suffering will result.
• You’re helping youth develop healthy, successful lives.
• You’re providing rescue and relief where otherwise people would be unable to thrive.
• You’re saving abused animals from cruelty and suffering.
• You’re saving a dying ocean, without which our planet will not survive.
• You’re fighting against injustice to give everyone equal rights and ensure democracy survives.

You exist because of stories—stories of problems you’re working to solve. Tell stories of those you’re helping, and what role the donor can play in this work. The best stories are experiential journeys of understanding and empathy. Told well, the listener/reader sees what the character sees and feels what they feel. On some level, they relate to them.

TIP: Keep in mind different stories resonate with different people, So, you’ll want to collect a variety. Some ways to find and disseminate stories include:

1. Bring clients to present at board, committee, and staff meetings. 
2. Get board members out in the field to visit programs. 
3. Send board members and targeted donors a “story of the week”/ “month.”
4. Ask board members and staff to share field stories at meetings. 
5. Write stories down, and share them with everyone after the meetings (so those who were present remember them, and those who were not can hear them).

2. Eschew the weeds and focus on the change

Don’t get lost in the depth/breadth of what your organization does. People are interested in what they can do to create positive change. Sure, sometimes you’ll want to talk to major donor prospects about details. But, as a general rule, you don’t want to come at a prospective donor like a firehose.

Your history and awards are not about change. They’re about the past. And your ego. Donors care about the future. And their own egos. They’re looking to co-create a better future with you. They’re not interested in hearing you brag about your accomplishments.

Be sure to incorporate into your narrative what change the donor’s gift will bring about. Simple black and white results. “You’ll restore hope” is not something a donor can visualize. Tell a simple, short story. Show them what they can do to give that story a happy ending:

• If they give, something clearly good happens.
• If they don’t, something clearly bad happens.

TIP: Complexity kills fundraising. The truth is donors don’t care about all of the ways in which you work — numbers served, geographic reach, number of staff and volunteers, years in existence, range of programs, awards won. Giving is triggered by the social-emotional part of the brain. Donors get a jolt of pleasurable dopamine and a warm glow merely contemplating a philanthropic gift. But, as soon as complexity (numbers, data, facts, figures) enters the picture, a more analytical part of the brain is triggered. This part of the brain thinks and deliberates, stopping your would-be donor dead in their tracks. It may motivate contemplation; it won’t motivate giving. What donors really care about is results – yearned for and made possible. The best fundraising is simple.

3. Include all 3 key story elements

What all good stories have in common is a protagonist, problem, and solution. If you miss any of these ingredients, you’ll fail to engage your reader/listener.

1. A protagonist is a single individual, not a group. The struggling artist, cancer survivor, student with a learning challenge, parent of an autistic child, trans youth, hungry child, abused animal, dying ocean, prisoner unjustly incarcerated. The story hinges on the person and how they think, feel and encounter the world.
2. A problem begs to be overcome. Without one, you’ve perhaps got a narrative (an account of events). But, not a story that will draw people in enough to make them want to act.
3. A solution is an outcome that creates change, giving the donor a pivotal role. There’s got to be a pay-off. In fundraising appeals, this is generally the call to action. It might be an ask for a charitable gift. Or it might simply be asking people to share the story with their networks.

TIP: Don’t make the mistake of crafting your story until you’ve first outlined each of these three key elements. Sometimes protagonists are easy to come by, other times you have to really think. For example, if you’re a marine conservation center you may think the protagonist is the facility. Or a program for which you’re trying to raise funds. Dig deeper. Perhaps the real protagonist is the ocean or the coral reefs. The problem is they’re starving or dying. The solution? What do you really need – right now – to move the needle and create positive change?

Hope this helps enlighten you so you can move forward in crafting compelling stories that really draw people in!

— Charity Clairity (Please use a pseudonym if you prefer to be anonymous when you submit your own question, like “Seeking Enlightenment” did.)

Have you seen success with crafting compelling stories? Let us know in the comments. 

The post [ASK AN EXPERT] What Are Some Storytelling Pitfalls To Avoid? appeared first on Bloomerang.

Whatever your individual calling or organizational mission, it’s playing today against a backdrop of sobering realities. Climate crisis induced devastation. Growing income inequality. Racial, religious, and gender injustice. Raging wars. Mass shootings. Failure to care for the most vulnerable during the pandemic. Assault on democracy. And more.

The inequities in our world have been laid bare, and have been deepening. For many, distrust has become our default way of being.

Arguably, what is missing is that which Charles Darwin pointed to years ago in what was mis-attributed to him as “survival of the fittest.” Actually, that term was from Herbert Spencer. Darwin figured out something much more important. He understood species survival hinges on not just being out for oneself, but in caring for the entire community. So, his contribution – one we would do well to heed – is “survival of the most caring.”

What we are missing is the loving awareness needed to build empathy. [See also Your Top-Secret Fundraising Tool? Empathy.]

There can be no human connections or trust without empathy and the loving awareness that leads to understanding. We’ve always known this, yet we’ve lost our way. And it’s why so many are feeling abandoned by core institutions on which they once relied when they needed a steady hand.

“Harmony and understanding
Sympathy and trust abounding
No more falsehoods or derisions
Golden living dreams of visions
Mystic crystal revelation
And the minds true liberation”

— Lyrics from Aquarius, Hair the musical

You – all of us – need to put a new system in place to help.

Shifting towards cultivating loving awareness

What if this new system could be as simple as a shift in mindset?

What if you defined love as an open state of being that would allow you, in any situation, to answer the question: Am I relating to this (person, situation, problem) with a loving energy?

Sure, sometimes this won’t work as well as others. But it’s absolutely the best place to begin. If you do, you’re more likely to find where the other person is ready to meet you.

By taking a loving stance, you create more receptivity in the other party.

Here’s what some leaders in different disciplines have to say on this subject.

“In the English language, we use the word “mind” all the time. Yet, in Eastern thought, it is often used to mean the consciousness that pervades everything. It is also used in the field of (Western) body/mind science to explain how consciousness may exist in every cell of the human body.

Of course, we know where the physical heart is, right in the center of our chest. But what if the heart, like the mind, pervaded our entire consciousness—every thought, every cell? And what if we could harness these two perceptions and marry them within our consciousness? What if we could perceive and interact with everything and everyone with our heart-mind?

If this could happen, we’d make a quantum leap in awareness. Our inner world would shift if we were able to embrace every experience, every person we encounter, with our heart-mind. Without sounding overly dramatic, everything could become Love.”

— Dr. Janice Lundy, co-founder and co-director of the Spiritual Guidance Training Institute which provides education and certification in interfaith and interspiritual direction.

And also…

I talk about love and loving-awareness not as phenomena of which I purport to be an expert but rather as “North Stars,” to exemplify a way of being toward ourselves and one another that I think encapsulates what it might mean to live in a state of individual and collective wellbeing. 

— Sará King, neuroscientist, CEO of MindHeart Collective, from “Love as Social Order: How Do We Build a World Based in Love?”

5 strategies to cultivate loving awareness

1. The elevator process

ASK: How might you turn everything into love in your daily life?  Begin with considering how might you practice this with your family, friends, co-workers and people you encounter in your daily life.

Dr. Janice Lundy learned from Ram Dass how to step into the experience of love. Per his guidance, she did this with him. She reports feeling like an elevator operator, guiding her mind to shift location from top floor to ground floor — to the “ground of being” – the heart-mind.

1. He pointed his finger at his head, saying “This is where you are.”
2. Then, slowly and carefully, he moved his finger down, down, down… toward the middle of his chest… to his heart. “This is where you need to be.”
3. As he moved his finger downwards, he kept repeating “I am loving awareness” – first in a normal tone, then a whisper, then silently.

CONSIDER: By setting your intention to your heart, and your modus operandi to curiosity, you begin to cultivate a practice of loving awareness. Like any other “practice,” it takes just that.

Practice shifting awareness from head to heart with everyone in your life – family, friends, colleagues and even strangers in line.

DO: Silently tell yourself “I am loving awareness.” You will begin to feel calmer, and more capable of building positive human connection.

TIP: Think about this the next time you’re tempted to deliver a standard “elevator pitch.” Rather than pontificate, what if you opened your heart and asked the other person something about themselves?

House party event attendee on the way out the door: “That was a lovely event. Can you tell me a bit more about the organization?”

You: “I would love to. Can you tell me what most intrigued you from what you know thus far?” Or perhaps “Can you tell me which values of yours you believe are honored in what is most central to our mission?”

2. Love plus everything

ASK: What if you could come from a place of love in your work with donors and volunteers? In other words, what if you could approach relationships with supporters with a deeper intention that supports meaningful connection?

CONSIDER: This only takes a small shift in your stance, and you will know you’re there immediately by the shift you feel inside. No more hunched shoulders, clenched jaw, furrowed brow or white knuckles.  No more of the negative stresses that make it virtually impossible to develop a positive, flowing connection with another human.

“We can know we’ve connected with an energy of love by the sense of softness, warmth and expansiveness that love creates within our own being.”

–– Tara Mohr, author of Playing Big: Practical Wisdom for Women Who Want to Speak Up, Create, and Lead; Creator and teacher of global Playing Big leadership program for women, and Playing Big Facilitators Training for coaches, therapists, managers, and mentors.

DO: Another way to frame this for yourself is coming from a place of generosity. I looked up the definition, and it means willingness and liberality in giving away one’s money, time, etc.; magnanimity. When you’re generous, your donor is likely to return the favor. Because another human quality – one of Robert Cialdini’s principles of influence – is reciprocity. This natural process of giving and receiving feels natural, comfortable and voluntary. It works so much better – for everyone – than a more constrained, transactional process of “twisting arms” and “hitting people up.” The end goal of love and generosity is more love and generosity. The end goal of money is a one-time transaction.

TIP:  Bend towards generosity. What if you took a page from the book of Liza Hanks, author of Every Californian’s Guide to Estate Planning, and Director of Gift Planning at Silicon Valley Community Foundation? She often says her secret job is “Generosity Consultant” because of the profound joy she feels when helping people create meaningful legacies.

3. Opening up to the power of love

ASK: The next time you’re feeling annoyed, overloaded, defensive, argumentative, heavy-hearted, or just plain closed down and done, what if you dedicated yourself to opening up some space for empathy or compassion? There really is something to the sometimes-annoying adage to “lighten up.” Because when you consciously try to release your anger, tension, or other negative feelings, and come home to yourself and your values, you’re able to shift into a completely different energy.

This new energy will help guide you towards your next steps. It may be to be more open; it may be to disengage. It may be to be fiercer; it may be to be gentler.

CONSIDER: As long as you relax, open up, and think about love – and maybe a little Golden Rule or Hippocratic Oath – you will be able to help others, while also helping yourself.

DO: Breathe. Think “I am loving awareness.” Relax. If you want to make your work a true expression of and force for love in the world, it’s imperative to begin by opening up some space to connect.

TIP: Relaxation is a too-often-underestimated prerequisite to love. Neurobiology research shows we’re not receptive to connection when stressed. Think about this the next time you’re tempted to make a call on a donor when you’re in a negative space. Take a little walk first, or even just look at a photo of a pet, child, grandchild or favorite work of art to bring a smile to your face before proceeding.

4. Tending to others

ASK: How might you forget about the money you want from your donor, and focus on growing the love? In fundraising we talk a lot about donor “cultivation.”  And that’s because, when done well, the money will generally follow as a natural (not forced or coerced) outcome.

CONSIDER: I’ve often used the metaphor of cultivating a garden. But this is more than just a process. The goal should be a transformative one, enabling donors to grow and flourish. Alas, it’s often interpreted transactionally as just getting them to give more money.

DO: Take that gardening metaphor a bit further. What, exactly, is your role in helping your donor to blossom? Author Tara Mohr likes the word “tending.” Could you apply that to philanthropy (philos, love + anthropy humankind) and your job as a philanthropy facilitator?

“What happens if you define loving as “tending” the light, the radiance, in the people you love? What kinds of different priorities, stances, and decisions does that lead you to? What happens if you see your work as a kind of tending to a garden?”

— Tara Mohr

TIP: One of the ways we grow love is by giving gifts. Both tangible and, especially, intangible. Consider what is meaningful to the donor, and how you might demonstrate your awareness of that which brings them a feeling of radiance.

5. Giving gifts

ASK: How might you give loving gifts to your supporters? You may be familiar with the paradigm of “languages of love.” There are many ways to show love: (1) acts of service; (2) receiving gifts; (3) quality time; (4) words of affirmation, and (5) physical touch. This is just one way to consider your own and your donor’s preferences so you can connect more profoundly.

CONSIDER: Think about the gifts you now give when you love your supporters well. Are they gifts of content? Are they time spent together? Are they recognition and gratitude? Are you thinking about all the gifts you can give?

DO: Remember when you want gifts you must give them. So many gifts. This is not a one-time transactional thing. It’s a generous, loving, aware way of relating to another human being.

TIP: When you shift your mindset to one of relating to others in a spirit of cherishment, you give the gift of feeling cherished. The gift of showing up without resentment or depletion. The gift of affirmation of their best qualities. The gift of tending to your supporter’s radiance to help them truly like the person they see when they look in the mirror.

Repairing the world

Those of us who work in the social benefit sector came here for a reason.

For some, it was a calling. For others, perhaps a leaning. Whatever drew you to this work, you likely grew to care deeply about fixing the societal problems contributing to your raison d’être.

We live in a time where it’s easy to feel despair, heartbreak and overwhelm. People seem increasingly divided and lost, and the scope of our problems can seem insurmountable.

Only by cultivating loving awareness, individually and as a community, do we have a hope to sustain humanity.

“Though we can never control someone else’s internal experience, we can be intentional about how we show up. We can increase the odds that our love will telegraph through and will be felt – if we grow our relationship skills, and if we engage in moment-to-moment practices that root us in an energy of love.

We can all grow in that capacity. We really can. I believe we are meant to. And I know that life gets so much richer when we do.”

— Tara Mohr, Founder of Playing Big. Author, Coach, Teacher, Loving Well course

So, let’s consider what we in the social benefit sector can do to put loving awareness to work. Ask questions. Consider the answers. Then do something, anything, to move toward a state of collective healing.

The post 5 Top Strategies To Cultivate Loving Awareness To Repair Our World appeared first on Bloomerang.

Dear Charity Clairity,

Everyone is talking about AI, so I fear I can’t ignore it. But we’re a small nonprofit, I’m not particularly tech savvy, and I just don’t know where to begin. Can I wait for the bigger organizations to figure this out, and then jump on the bandwagon later?

— Overwhelmed, dazed and confused

Dear Overwhelmed, dazed and confused,

I had a boss in 2010 who told me “social media is a fad.”

Gulp.

It wasn’t.

Similarly, AI is here to stay.

So, best to stop being scared of it.

Dig into the technology (e.g., ChatGPT, Anthropic Claude, Gemini), and see what it’s capable of.

And remember: What it can do now is way less than what it will be able to do next year. And the year after that.

So, if you’re at all strategic, you can no longer be so without becoming comfortable with AI.

Why AI is worth paying attention to

It will soon be impossible to do your job without it.

Most likely 80% of the work people do in business today will be AI-assisted, at least in part, within the next two years.

Let’s say you do 20 things/month. Look at them and ask: how much can AI help me with these things? How can it enhance what I’m capable of doing? Can it actually automate some of these tasks?

Let’s say 50% of your tasks could be benefited by this technology. That would save you as much as 10 – 20 hours a week. Arguably, a small nonprofit can benefit from AI even more than a larger one. And, on a personal level, if you can save resources this way, you’ll become insanely valuable within your organization. Worth considering!

AI won’t go away.

What to do

Consider how you learn best; then engage in education and training.

Reading? Listening? Watching? Doing?

Take some time to curate some AI educational resources that match your favorite learning method. I highly recommend listening to AI Explored, a free YouTube podcast series put together by Michael Stelzner, founder of Social Media Examiner. Back about 15 years ago, I learned much of what I know about content, inbound marketing, and social engagement from him. That was then; this is now. This series will cover everything you need to know to understand how AI can most effectively serve your nonprofit.

I just listened to a podcast episode featuring Paul Roetzer, founder and CEO of Marketing AI Institute, and want to share some of his tips.

Pick one to three tools to go deep into; practice.

In other words, have AI help you with some of the tasks you identified earlier. For example:

• Ask it to write a newsletter article; email headline;
• Ask for a draft of an agenda for your event;
• Ask it to identify speakers

You’ll see ways to blend the technology into your workflow.

You can’t simply listen to what others do. You must experiment yourself.

AI wants you to play.

Prepare yourself

You need to take some time to think about what you want it to do, and then experiment.

Just because you tried it a year ago, and thought it was meh, doesn’t mean you adequately prepared yourself for what it can do. Also, today’s versions (and paid versions) are infinitely more capable than yesterday’s versions.

Here are some practice tips:

• Talk to it like a person.
• Tell it specifically what you need help with.
• Tell it why you need this help.
• Tell it what you want to accomplish.
• Ask it what it needs to know from you to do what you need.
• Give it examples of what you did before and ask it to make improvements (e.g., shorter, snappier, funnier, using more emotional adjectives, warmer, etc.). Again, be specific (e.g., 2 pages; no more than 10 words; multiple use of the words “you,” “your,” and “us.”).
• Ask it where it would insert images.
• Ask it for some variations of what it just did. Ask it what else it would suggest.

The more you practice, the better you’ll get.

As you learn how to prompt it, it will begin to understand your style and, more or less, prompt itself. In other words, if you offer a super-wordy prompt, it will rewrite it (internally) and improve on what you wrote. In fact, Google found the best performing prompts are, on average, 21 words. [Bonus Tip: If you want to learn how to prompt more effectively, ask the AI what prompt it used to deliver your results.]

AI is getting better, fast.

What can you do besides draft text?

There’s generative AI and predictive AI.

More people are familiar with the former, where you use it to draft text. It’s equally good at the latter, which involves data analysis.

To grasp how this works, understand all AI models have vision capability. They can “see” things. They can understand what they see.

This means you can feed them data, a screen shot, a URL or a pdf.; then ask them “what’s happening here?” You can tell them the criteria you use to assess something (e.g. a web page; email series; ad campaign; even whether or not your major donor has received sufficient touches and moves to be asked for a gift) and ask them what they see. They’ll suggest things (like more images; different colors; less text; alternate placement; timing, etc.).

AI is here to stay.

Ground rules

Develop generative AI policies that give you basic guidelines. 

These help everyone in your organization, internally and externally.

• Which tools are you allowed to use? (e.g., AI-generated images? Video?)
• For which use cases?
• What are acceptable inputs?
• Which data will you allow it to access?
• How will you keep information secure and protect privacy?

One way to start developing an AI policy for your organization is to search the internet for “responsible AI framework.” You’ll get a lot of hits from businesses (e.g., KPMG, IBM) and also from places like Project Evident for responsible AI adoption in philanthropy. There are also many templates from which you can borrow (see here, here, and here).

Create a draft policy; run it by an attorney to make sure you’re not running afoul of copyright, trademark, breach of confidentiality, unintentional bias, or other potential pitfalls.

Put your generative AI policy on your website so folks know you have a policy and are acting above-board. AI is best used transparently, ethically and legally.

With AI, and anything else, there’s a right way.

The best way to become un-overwhelmed is to alleviate fear and confusion by digging in!

— Charity Clairity (Please use a pseudonym if you prefer to be anonymous when you submit your own question, like “Overwhelmed, dazed and confused” did.)

Have you had success using AI for fundraising? Let us know in the comments. 

The post [ASK AN EXPERT] Do I Really Have To Worry About AI? appeared first on Bloomerang.

Dear Charity Clairity,

Our board is really resistant to fundraising. What tips can you share that will help us mobilize them to be fundraisers?

— Tired of the Battle

Dear Tired of the Battle,

One of the reasons we fight with folks is we don’t take the time to understand their perspective.

Try asking: How might this board member’s resistance to fundraising make perfect sense?

Based on both upbringing and past experience with asking and being asked, board members may have a good reason for their resistance to fundraising.

In my experience, there are three primary reasons people hate fundraising. So, let’s look at them one at a time; then talk about the steps staff can take to address them.

1. They think it’s yucky, and we let them

We tend to make it all about money. And talking about money is a big taboo in our society. We were raised to believe it’s impolite to bring the subject up, so much so we’d rather talk about anything else. Most of us have a deep-rooted psychological aversion to talking about money. Even religion, sex and, politics are better discussion topics as far as most of us are concerned. So, when you bring up fundraising most board members will come at this from a place of revulsion and negativity. You want to get them to come from a place of love and positivity.

Stop letting board members wallow in their fear. This requires retiring phrases about “hitting people up” or “twisting their arm.” The same holds true for saying “no one likes fundraising.” Whew! How can you expect anyone would look forward to that?! It’s about having coffee… making small talk… being interested… learning about what the donor cares about… telling and sharing stories… helping the donor to act on shared values. It’s actually FUN; a way to meet like-minded folks.

TIP: To move board members from a place of “no” to a place of “yes” requires adopting a framework of philanthropy, not fundraising. Here’s an exercise you can do with your board to shift their thinking from A to B:

A. Fundraising = scary; a chore; unpleasant; begging; ugh; necessary evil

B. Philanthropy= giving; generosity; satisfaction; love; joy; appreciation; inspiring; fulfilling

2. They fear rejection

Make sure board understand a “no” is not personal. No can mean many things. Things like bad timing, wrong project, wrong amount, more information needed, and so forth. Many of these obstacles can be overcome. It just takes a little listening to discern what can be said next to keep the conversation going. Asking is a great thing; not asking gets no one anywhere. It’s simply a lost opportunity.

It’s a mistake to assume people don’t want to be asked. When board members love your cause, they should want to share that love. Otherwise, they’re deliberately excluding others from the feeling of joy that comes from being affiliated with your mission. Don’t forget, MRI studies show merely thinking about and considering giving lights up the pleasure centers of our brain and brings a warm shot of ‘feel good’ dopamine.

TIP: To help the board feel okay when they get a “no,” suggest they also ask the question: Why might it make perfect sense for this prospect to say “no” at this point in time? Besides things that can be overcome, there’s also the possibility people say “no” because they’re just not that into the cause. That’s okay. People have different values. It’s no different than saying “Hey, I went to this great sushi restaurant. You have to try it!” And then their friend says “No, I don’t think so. I don’t really like sushi.” It’s not rejection of you; just of the notion that sushi is valuable.

3. They fear looking stupid

It’s not the board member’s job to be able to answer every question. Make sure they know this! If a prospective donor asks a question they can’t answer, that’s okay. They can always say “I don’t know the answer, but I know someone who does. Let me ask and get back to you.”

TIP: Let board know their job is to be the “Yelp” review. After they’ve promised to refer the donor’s questions, they have a perfect opportunity to gush a bit. After all, unlike staff they don’t get paid to say how great the organization is. So, whatever they say carries extra weight. Their job is to speak from their own passion and tell their own story of why your organization is so terrific.

You can help them see things differently – and that’s your job

In addition to some of the tips I’ve already suggested, I’d add these to help you mobilize your board fundraisers.

In a nutshell: Orient; Train; Support; Cheerlead, and Thank

1. Build a strong board nominating committee

You wouldn’t even hire a nanny or housekeeper without lots of thought, interviews and references. Yet many organizations bring on board members just because they’re friends of other board members. You need a vigorous process. What type of skills do you need? What circles of influence in your community are underrepresented? Does the nominee understand the role you expect them to play? Is the nominee passionate about your mission?

2. Develop a strong board orientation program

Create a handbook. Have recruits meet with key staff who will explain how development, finance, marketing and programs work. Give new members a seasoned board member as a buddy/mentor.

3. Create a board development training program.

Provide ongoing sessions on a range of topics (e.g., reading a nonprofit budget; public speaking; running effective meetings, nonprofit marketing, etc.). Provide an annual board training on solicitation – only call it something else (e.g. “Inspiring Philanthropy”).

4. Hold periodic retreats

The best ones are focused (e.g., strategic plan; endowment building; capital campaign; board/staff relationships, etc.) and run by a seasoned facilitator.

5. Meet individually with each board member at least annually

Find out what they’re passionate about, what’s continuing to inspire them, and what’s not working. Develop a personal plan for each one so they feel good about their board service. Stay in touch. Build a personal relationship.

6. Don’t let rotten apples spoil the barrel

If being on a board is unpleasant it’s a bad thing all around. First, make sure you’ve got a good chairperson.  This individual sets the tone. They should be passionate about your cause, compassionate with others, and a good politician. They should understand the role of governance, the difference between your mission (what you do today) and your vision (where you hope to get one day) and the invaluable role donor-investors play in getting you towards your goals. They should partner with the executive director, creating a team that cheers everyone else on. Second, make sure you have a process for removing board members who bring everyone else down. You’re doing no one any favors by keeping on “dead wood.” Consider a term limits policy to make rotating folks off the board a natural process.

When coming from a place of philanthropy (love of humankind), it’s easy to let the battles end and the coming together begin.

— Charity Clairity (Please use a pseudonym if you prefer to be anonymous when you submit your own question, like “Tired of the Battle” did.)

Have you seen success in overcoming your board’s resistance to fundraising? Let us know in the comments. 

The post [ASK AN EXPERT] How To Help Your Board Overcome Resistance To Fundraising appeared first on Bloomerang.

Dear Charity Clairity,

We have an ambitious individual fundraising goal of $500,000 this year – almost 1.5 times what we raised last year! Since it’s in support of a plan to expand services, my boss thinks the case for support will sell itself. I’m anxious. I think we’re going to need to seriously ramp up major giving. But I’m not sure where to begin. We’re not in a capital campaign, but I’m wondering if I need a gift chart or something else as a blueprint to assure we generate enough contributions. 

— Nervous Nellie

Dear Nervous Nellie,

You can ask for major gifts all year long; not just during a formal capital campaign. So, while you don’t necessarily need a formal gift chart (a capital campaign construct), you do need to know at the outset how many prospects and donors you’ll need, and at what levels, to reach your goal.

Organization: Goal + prospects and donors to meet that goal

If you have a $500K annual giving goal, chances are good you’re not going to get there with 50,000 $10 donors. You’ve probably heard of the Pareto Principle (aka the Rule of 80/20) as it applies to fundraising. It states that 80% of your fundraising will come from 20% of your donors. These days, I find it to be closer to 90/10. In some cases, I’ve seen it be as much as 97/3. So, you’re on the right track. Most organizations simply do not have a large enough donor base (or mailing list) to be sustainable without major gifts.

I love gift charts as an organizing tool. You can use a gift chart calculator as a starting place. Here’s what a $500,000 goal might look like.

You’ll want to tweak it, however, based on what you know about the donors in your database. For example, if you know you have zero prospects at the $125,000 level, you’ll want to add more prospects at some of the levels below this.

It’s not a bad idea to share your gift chart with your major donor prospects regardless of whether you’re in a capital campaign. Major annual campaign donors also like to know where they stand.

Role of the board

Speaking of knowing where they stand, this is especially true for board members. They’re your leaders. If they aren’t leading, how can you expect others to give passionately? If you need board members to give $5,000 gifts, and they’re giving $500 gifts (mostly out of habit and expectation; not based on capacity), you’re dead in the water. Nothing demonstrates this quite as simply and clearly as a gift chart.

So, be sure to review this chart with the board – and get their buy in – before you go public. If they won’t approve it, you’ll need to revise your fundraising goal downward. Period. You may be a rare exception, but I’ve never seen an organization significantly ramp up their fundraising from individuals without board leadership.

Be honest about what success will look like

Going into each ask, you must be crystal clear what a successful outcome will look like. Sometimes you may have 25 prospects and need only 10 gifts at a particular level. So, if one prospect gives less than what you’d hoped for, you may be okay. Other times, especially at the top of the gift chart, you may not be able to be so sanguine.

Here’s an analogy: If your kid comes home from school with a grade of “F,” I’m guessing you won’t be telling them how proud you are. Yet, too often, we’ll walk out of a donor solicitation meeting and pat ourselves on the back for having elicited a $25K pledge when we asked for $50K. That’s 50%. That’s an “F.”

If you don’t raise enough you’re not going to reach your goal. The one phrase I hear solicitors utter that makes me wince is: “Any amount you can give will be helpful.” That’s just plain not true. You need a gift that is enough to meet the need. We’re trained to be grateful, no matter what. But, gratitude alone won’t pay the bills. You’ll help less people than need help. You may even have to close down programs or shut your doors. “Any amount…” is a wing and a prayer strategy. That’s not what you want.

Let me tell you a true story:

I worked with a small nonprofit in precisely your situation. They hoped to dramatically grow their annual campaign so they could expand services. The board had approved an ambitious growth plan; yet had not been giving passionately. We had a retreat and talked about the importance of board leadership in this regard. The staff made a gift chart and came up with suggested ask amounts for each of the board members. The executive director (ED) kicked it off by asking the board chair to commit. The board chair doubled his previous gift, and the ED came back ecstatic. I looked at her and said, “How much did he commit?” She said, $2,000, which is twice what he gave last year!” I said, “How much were you supposed to ask for?” She said, “$4,000, but when I walked in he told me right away that he and his wife had decided to double their giving and he was so proud; how could I ask for more?” I patiently explained that if the board chair gave only that amount he could not reasonably ask his peers to give more (this happened to be a board comprised primarily of members in the same profession, so their circumstances were relatively similar; they were true peers). I also noted that while $4,000 might be a stretch for this individual, it most certainly was something he could afford without affecting his lifestyle in any way. He was in the habit of giving well below his means. The organization needed to break this habit if it wanted to grow. The ED saw immediately what needed to happen next. She went back to the board president and asked again. Only this time, she was clear what would constitute success. She showed him a table of where gifts needed to range. The board president did not head for the hills.  Instead, he talked to his wife again and came back with a $4,000 commitment. Not only that, he told this story when he asked other board members so they would understand what was expected of them as well. The board rocked the campaign and reached their goal. Now this organization is growing by leaps and bounds.

I guarantee having this gift chart in place will reduce your nervousness, for the same reason you having any type of plan will stand you in good stead. Because, to paraphrase Lewis Carroll, if you don’t know where you’re going, any road will get you there.

Now you know where to go!

— Charity Clairity (Please use a pseudonym if you prefer to be anonymous when you submit your own question, like “Nervous Nellie” did.)

The post [ASK AN EXPERT] Is A Gift Chart Appropriate If Not In A Capital Campaign? appeared first on Bloomerang.

Nonprofit.

Why not what we ARE? Social benefit. Or, as Dan Palotta once suggested, “humanity sector.”

Rather than focusing so much on how to scrimp and save and be as cost-efficient as possible, shouldn’t we be focusing on how to spend and grow and be as big and effective as possible?

Nonprofits are stuck in a vicious cycle, jeopardizing their ability to generate the resources they need to succeed. 

Let’s take a look at six underlying reasons for the sector’s inability to build sustainable capacity to solve the world’s pressing problems.

1. Where are our cultures of philanthropy?

To be loving, one must begin with a loving stance.

Over a decade ago, CompassPoint and the Evelyn and Walter Haas, Jr. Fund published a three-part series of reports exploring culture of philanthropy. Or what I like to call a love-train culture. The first, UnderDeveloped: A National Study of Challenges Facing Nonprofit Fundraising, concluded:

“Organizations need to make fundamental changes in the way they lead and resource fund development in order to build the capacity, the systems, and the culture to support fundraising success. Among the signs that an organization is up to the task: It invests in its fundraising capacity and in the technologies and other fund development systems it needs; The staff, the executive director, and the board are deeply engaged in fundraising as ambassadors and in many cases as solicitors; Fund development and philanthropy are understood and valued across the organization.”

Alas, a culture of philanthropy essential to long-term success in the sector is still largely absent from our institutions. 

Huge instability in the development director role is just one symptom of a larger problem: lack of basic fundraising systems and inadequate attention to fund development across the board.

2. Why aren’t we investing in greater impact?

To drive impact, one must truly value that impact.

Also, a decade ago, Dan Pallotta gave what’s become a famous TED talk, “The way we think about charity is dead wrong.” He talks about how the ways we’ve been taught to think about social innovation, and the role charity plays, are undermining the causes we love and our profound yearning to change the world.

“It’s time to change how society thinks about charity and social reform. The donating public is obsessed with restrictions—nonprofits shouldn’t pay executives too much, or spend a lot on overhead or take risks with donated dollars. It should be asking whether these organizations have what they need to actually solve problems. The conventional wisdom is that low costs serve the higher good. But this view is killing the ability of nonprofits to make progress against our most pressing problems. Long-term solutions require investment in things that don’t show results in the short term.”

In his book, Charity Case: How the Nonprofit Community Can Stand Up For Itself and Really Change the World, Pallota writes:

“The nonprofit sector is critical to our dream of changing the world. Yet there is no greater injustice than the double standard that exists between the for-profit and nonprofit sectors. One gets to feast on marketing, risk-taking, capital and financial incentive, the other is sentenced to begging.”

A culture of investment, where overhead is not seen as the enemy, is hugely lacking within the social benefit (aka nonprofit) sector and among the public at large. 

There is a separate rule book for charities that has a chilling effect on risk-taking, social innovation, and entrepreneurship.

3. Why aren’t we attracting social capital?

To be of social benefit, one must sell impact.

More than a decade ago, Jason Saul published The End of Fundraising: Raise More Money by Selling Your Impact. He argued we need to look more to the vast ‘social capital market’ – which is approximately 20 times the size of the philanthropic market. The fact that we aren’t set up to engage people who attach real economic value to social outcomes (rather than simply the psychological “feel good” individual donors get as a result of giving) is vastly limiting our ability to attract the social capital we need to survive and thrive.

Social benefit organizations must stop begging for charity and start selling impact. 

It’s a subtle shift in approach that can pack a big punch. Saul details four steps for nonprofits to follow:

1. Get a deep understanding of the impact you have and express it in clear terms.
2. Identify those who want and can pay for impact (e.g., corporate partners, social and impact investors, and service providers).
3. Understand your impact on buyers’ specific needs.
4. Ensure your value proposition is clearly defined.

4. Why are we fighting amongst ourselves?

To solve pressing problems, people must come together.

Over the past several years, a whole new movement has entered into the fray – community-centric fundraising – as a counter balance to what is deemed the nonprofit industrial complex. The distinguishing argument veers from simply “not enriching shareholders” (evil for-profits) to “not reinforcing capitalism, patriarchy, white supremacy and more” (evil nonprofits).

We’re faced with an evolving definition of the sector that shifts from the concept of “social good” to one positing most nonprofits, by definition, reinforce “social ills” by upholding oppressive ways society is organized.

Perhaps. But by creating division and erecting barriers to giving, and fundraising, “philanthropy” (aka “love of humanity”) suffers. While some within this movement would say this is a good thing, arguing the sector (by any name) should not exist, and society should simply be restructured to embrace a diverse, equitable, and inclusive model, I’m not convinced.

I can’t argue with this utopian vision, yet I’m not ready to throw the baby (the “sector”) out with the bathwater (fundraising). Too many problems need solving, and Eden is not just around the corner. Which is why I advocate a practice of “philanthropy, not fundraising.” Love, not money.

5. Why are we fighting with donors?

To empower people to be the change they want to see, one must facilitate philanthropy.

This means making giving easy, not hard. Because so many problems need solving, it’s just not fruitful to get into a determination of which donors should be entitled to give, which should not, and how they should be rewarded. It’s important for fundraisers to fully embrace philanthropy as a positive, not a negative.

I always say “if you want gifts you must give them,” and in four decades of fundraising I’ve found one constant in donors who remain loyal and passionate — they repeatedly tell me:

“I get so much more out of this than I give.”

That’s how you want donors to feel. Because it’s what keeps them coming back. The more you can help people – donors included – secure what they most yearn for, the more successful you’ll be in driving purpose-filled actions, creating a community that cares for its members. All of them.

The “us” vs. “them” attitudes, roughly lumped under the mantle of “community-centric fundraising,” are unfortunate. 

Because they do the opposite of making people feel connected to your community, enveloped in your loving (the “philos” of philanthropy) embrace.

6. Why do we persist in thinking small?

To do the greatest good, one must think expansively.

I am constantly counseling social benefit organizations to think and dream bigger. Ask yourself:

1. What’s our real vision?
2. How much more could we accomplish with more resources?
3. Why are we limiting ourselves?
4. What else could we innovate?

Everything I’ve written thus far points to the fact it’s really all about how you invest in philanthropic work — both in terms of the money you spend and the human capital you involve.

Big problems will never be solved by small solutions.

When you silo the resource development function to one person, one department or one board committee, you think too small to scale your solutions to match the worthy needs you seek to address via your mission.  Thinking small this way, you’ll never attain your vision.

Concluding thoughts

It’s going to take a culture shift to move the needle.

I fear we’re racing to the bottom with our emphasis on lean and mean. As the inimitable Seth Godin notes in Cheaper than that, “Once we’ve cut every corner, all that’s left is the brutality of less… The problem with the race to the bottom is that you might win.”

Studies like “Underdeveloped,” books like Jason Saul’s, TED talks like Dan Pallota’s, and movements like community-centric fundraising that seek a transformational approach to the task of repairing the world can help. But only if nonprofit leaders take them to heart, thoughtfully consider their implications and implementation, and actively commit to essential change and innovation. We need to:

• Stop demanding charities cut, cut, cut expenses rather than encouraging them to invest, invest, invest in ways to grow impact.
• Talk more about vision and what it will take to get there.
• Insist on finding ways to actually solve some of our intractable problems.
• Clearly articulate our impact and results in order to attract social investing.
• Spread the love around, centering our light on staff, board members, donors, volunteers, beneficiaries, and the entire community that stands to benefit when we all fight the good fight together.
• Figure out a way to prioritize community without cutting donors out of the picture – empowering both donors and beneficiaries alike.

Are you up for the challenge?

The post Why Our Definition Of Nonprofits Restricts Problem Solving appeared first on Bloomerang.

Dear Charity Clairity,

We’ve relied in the past on government and foundation grants, but since many of these sources are drying up we need to develop an individual fundraising program. Our problem is we don’t have much of a mailing list. Do you have any recommendations for how to build one? Also, how big does our list need to be.

— Feeling Listless

Dear Feeling Listless,

First, congrats on branching out to fundraising from individuals. It’s the largest source of philanthropy by far – making up 64% of all donations in the United States. Arguably, it’s also the giving source least subject to downturns in the economy. Even though overall donors and donations declined over the last year, during the pandemic the organizations who fared the best were those with fiercely loyal individual donors.

Of course, you’re correct. You can’t have an individual giving program without a list of prospects. So, let’s look at some strategies to build your list (both snail mail and email).

Baker’s dozen of list-building strategies

1. Ask those closest to you for names/addresses of their friends and colleagues. Start with those closest to you (e.g., board; committees; executive staff; direct service volunteers). Consider a “Let Your Friends Be Our Friends” campaign. You can even offer a prize drawing for those who participate (maybe offer additional entries for every name/address submitted). While you’re at it, ask folks if they’d be willing to add a personal note on the appeal sent to their friend. When you prepare folks properly, they’re often more than willing to be your ambassador and advocate. Try: “You’ve been such a loyal supporter of [name of charity] that we’re asking you to consider telling your best friends about your passion. Great loves deserve to be shared. Please don’t keep it a secret!”

TIP: You’ll get a better response if you reach out to people individually. Alas, whenever a group ask is made people tend to think “Oh, they probably don’t mean me.” If you do announce this campaign at a meeting, or via a mailing, be sure to make it easy for folks to respond. And also let them know you’ll be in contact if you don’t hear from them by such and such date.

2. Include a prominent “Join our list” box on your website to collect emails. Ideally, offer something people may want in return for submitting their information. Receiving your newsletter is the bare minimum. Try something more enticing (e.g., a research paper; “how to” video or list; recommendations; recipes; invitation priority, etc.).
3. Add a pop-up to your website. Rather than relying on folks who visit you to peruse your menu bar, offer the opportunity to join your email list directly to targeted visitors (e.g., first timers or those who stay on your website for a proscribed period of time).
4. Leverage in-person and online event sign-ups. Especially during the pandemic, when many nonprofits pivoted to virtual events, nonprofits successfully captured a lot of names and emails. If you feel uncomfortable mailing to folks who haven’t proactively opted-in to receive emails from you, you can always have people double opt-in after the event.
5. Host a webinar. This is a branding strategy and exercise in thought leadership. If you have expertise people want (e.g., research, data, specialists, historical perspective, stories, art, etc.), consider this as a strategy to attract folks eager to learn more about what you do.
6. Scour lists of donors to similar causes. Collect annual reports, program listings, donor recognition walls, etc. Ask your volunteers to bring these lists to you. Even if you just get names, there are a number of services that will look up addresses for you.
7. Build your “House List” of folks affiliated to you in other ways. Often organizations have multiple lists, many of which the development staff are not even aware. These include lists of volunteers, users of services, members, ticket buyers and so forth. Try to consolidate these lists, as many are excellent prospects for philanthropic gifts.
8. Create contact information forms for folks who’d like to learn more about your services. Leave these forms in your reception area; bring them to events, etc.
9. At in-person events, have people drop their business cards in a bowl to enter a raffle. You can do this any time you make a presentation (e.g., community center; place of worship; school; service organization; place of business; public gathering, etc.)
10. Trade your direct mail or email list with other nonprofits with related missions, or purchase lists from a direct mail broker for an acquisition campaign. 
11. Include a link to sign up for your email list on social media posts. When folks like or follow you, they’re already indicating an interest in what you do. Simply ask them to take this next step in affiliating with you.
12. Ask current supporters to share. Include a link with every email or social media post and ask folks currently connected with you to tell others about the work you’re doing.
13. Lean into partnerships. Have a challenge grant from a business? Collaborating on an event with a local organization? Ask them to share your email with their list to get you in front of a new audience. Be sure to include a link to your email sign-up page so folks can learn more about you.

Ideal size for your list

Quality matters more than quantity. That’s why you start with those closest to you, and build out from there. In fact, the smaller your list the higher your likely engagement. Why? Because you’re able to pay more personal attention to everyone on your list.

That being said, it’s worth building your list so it’s big enough to raise what you need to raise. As a general rule, most appeals to cold lists generate a .5 – 1% return. Appeals to warm lists generate closer to a 4 – 5% return. Of course, your results may be different. Try to keep track of them this year so you have a baseline against which to measure next year.

Listlessness begone! You now have thirteen ways to get lively with list building. Remember, this is a marathon and not a sprint. Begin building your list with four or five strategies; then add incrementally. As your list grows, set new fundraising goals accordingly.

— Charity Clairity (Please use a pseudonym if you prefer to be anonymous when you submit your own question, like “Feeling Listless” did.)

How does your organization build a nonprofit mailing list? Let us know in the comments.

The post [ASK AN EXPERT] How To Build A Nonprofit Mailing List appeared first on Bloomerang.

Dear Charity Clairity,

We don’t have term limits for our board and, as the development director, I think this is becoming a problem. Everyone is tired, they’ve given us all their contacts already and no one wants to try anything new. People seem leery of making any changes, and I’m not quite sure why. Are there some standards about board turnover I can share with my executive director so they can begin to understand the importance of transforming the board? And do you have any recommendations as to how to get there?

— Feeling Stagnant

Dear Feeling Stagnant,

You are right to be concerned about your organization’s lack of term limits. Boards need to be regularly refreshed, plus it’s important to have a place where promising volunteers and donors can be lifted up to leadership roles. While there is no legal requirement from the IRS, most states require a set term of years. But virtually no state sets a limit on the number of consecutive terms. In practice, the most common occurrence – found in the organization’s bylaws – is two three-year terms. Sometimes this is extended by a year if a board officer might otherwise prematurely be termed out of their office. And sometimes members can be invited to re-join after a several year hiatus.

Why organizations recycle old board members

Recycling is good for glass, paper, plastic and the like, but not ideal for boards. Reasons organizations don’t recruit new board members are they: (1) fear losing the loyalty of board members who give a lot of money; (2) simply don’t want to hurt people’s feelings, or (3) don’t know where to go to recruit new board members.

Considering how to ameliorate these challenges gives rise to two questions:

1. What do we do to keep former board members engaged?
2. How do we find new board members to recruit?

Let’s take a look at each of these separately.

An engaging new role for former board members

Sometimes breaking up is hard to do! Ideally, even though you’re going through a “separation,” you’ll want to remain close friends. Towards this end, it’s extraordinarily useful to have a place where board members can go as they transition off the board. My top three are:

1. Emeritus Board Group (e.g., Advisory Board; Ambassadors; Guardians; Champions Council; Young Advocates, etc.). These groups generally have a certain prestige associated with them, including listing on your website, letterhead, and so forth. Some may include prospective board members as well.
2. Board standing committee or subcommittee. There is no reason to limit committee membership to current board members. When people leave the board, conduct an exit interview in which you ask them if there are committees they’d like to stay on (or join) moving forward.
3. Ad hoc committee with a particular assignment. Comprise these as needs arise. (For example: Capital or Endowment Campaign; Rebranding; New program; Audience development, etc.).

KEYS TO SUCCESS

1. Have a clear job description. If you want people to do more than offer their opinion on things (which is how “advice” is often interpreted), clarify the expectation they’ll take on one or more roles as an ambassador, advocate, or asker.
2. Designate a volunteer leader. Like with anything else, someone must take charge, set the agenda, and follow up with members. You also want someone within the organization to staff this committee.
3. Stay in touch. Treat each participant as close family members and “insiders.”

The role of the board development committee

This is also sometimes called a nominating or governance committee. Their responsibility is to solicit new member recommendations from current board and staff. As the development director, you’ll want to regularly review your donor base to consider who among your current supporters might make a good board candidate.

Generally, this committee will develop a matrix of qualities you’re looking for at any point in time. These qualities may be demographic, cultural, skills-based, or industry-based. This is the way to avoid having a homogenous board where everyone runs in the same circles, knows the same people, and thinks similarly. Look at your community; now, look at your board. Is the latter representative of the former? If not, begin with an assessment of the strengths and weaknesses of your current board so you can identify gaps. If you can’t find nominations from within, you might also reach out to businesses whose values align with yours. Or you could reach out to your state association of nonprofits, local United Way or Jewish Federation, local community foundation, local chamber of commerce, or volunteer center. Diversity is the hallmark of a healthy, growing organization.
It’s the committee’s exclusive job to extend invitations for an informational interview to potentially join the board. Individual board and staff should not do this; candidates need to be reviewed and vetted and, once selected, the right person to make the ask should be determined. Often the candidate will have an initial interview with whoever knows them best (e.g., executive director, development director; board member), followed by interviews with the nominating committee and then the board chair. Ultimately, the full board votes on the nomination.

This committee also often takes charge of keeping current members engaged through creation of a board development agenda. This can mean assuring there’s a skills development or program education component at every board meeting. Depending on your needs, you could have board presentations on Robert’s Rules of Order; board fiduciary role; how to read a nonprofit budget; board’s role in resource development, and so forth. The committee may also launch an annual board satisfaction assessment.

Finally, the committee should be responsible for assuring there is a board orientation process. [You can grab a checklist of what should be included in an orientation here.] Also make sure you have a board member job description. This should include making a meaningful financial donation. Problems arise when new members don’t know what’s expected of them, how the organization is funded, or who they can call on for support. A board orientation prevents expectations from being ambiguous and helps members hit the ground running. These are your marching orders to move from stagnant to dynamic. Hope you’re feeling it!

— Charity Clairity (Please use a pseudonym if you prefer to be anonymous when you submit your own question, like “Feeling Stagnant” did.)

Does your organization have set board term limits? Let us know in the comments! 

The post [ASK AN EXPERT] Should Your Board Have Term Limits? appeared first on Bloomerang.