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.

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.

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.

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.

Discover key fundraising strategies for a successful capital campaign. Learn how to manage your database, ensure data quality, conduct wealth screenings, and segment your audience for better results. This webinar suits beginners or those aiming to improve their strategies, offering practical insights and tips.

Learning Objectives:

• Master key fundraising strategies: database management, data quality, and wealth screenings for campaign success.
• Grasp how crucial database SOPs are for improving fundraising, increasing engagement, and better outcomes.
• See the advantages of accurate donor segmentation and clean data for tailored outreach and strategy improvement.

View this webinar’s slides here

The post Is Your Database Ready for a Capital Campaign? 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.

Dear Charity Clairity,

We have a 75th anniversary coming up, and I really think we should do something to celebrate this milestone. But, I can’t get the board to really support this with much enthusiasm. In fact, they gave more over the past several years than they seem willing to commit now. What should I do?

— Opportunity about to be missed

Dear Opportunity about to be missed,

You’ve actually named the problem in the way you’ve framed your question.

You think this is an important milestone. Your board members apparently don’t. Your donors probably won’t either.

This highlights an important maxim of donor-centered fundraising: You are not your donors. Just because you, your executive director, or any “insider” feel a certain way about what’s most important about your mission, does not mean your constituents feel the same way.

Insiders, like you, tend to care about processes. In other words, how you get things done. With how many staff, volunteers, and locations. And for how many years. Why wouldn’t you care about this? You’re steeped in it!  Donors, however, are not. Donors care about singular impact.

EXAMPLE: If you work at a food bank, you may believe the fact that you distribute food via pantries located in neighborhood schools, churches, and community centers is super important. You’re proud of the network you’ve created, so lead with a message to supporters that talks all about the numbers of pantries and numbers of people reached. As counter-intuitive as it may seem to you, most donors don’t want to know how the sausage gets made (or food gets delivered). That’s your problem, and it appears you’ve already solved it. So, they don’t see why their money is really needed. You’re much more likely to engage their passionate support if you tell them one compelling “there but for the grace of…” story about someone who is hungry – someone with whom they can perhaps empathize. This shows them the impact they will create – this person will get fed – because the donor helped.

I’ve long felt anniversary celebrations are for insiders, not constituents. Think carefully about your goal to assure it’s legit.

Before committing to a plan to celebrate your “milestone,” ask yourself what you hope to achieve. Here are examples of reasons other nonprofits have chosen to highlight an anniversary, and why these reasons may be illusory.

1. It will raise awareness. For what? People are not going to give merely because you exist. And the fact that you’ve existed 75 years doesn’t make the messaging any more compelling. Try asking yourself a series of “why” questions to get to the root of what your real problem is. Is your goal to raise awareness, or is that the tip of the iceberg?

• Why aren’t enough people aware of us? We don’t have a big enough email list.
• Why is our email list so small? We don’t have good ways to collect emails.
• Why don’t we have good email collection strategies? Marketing and fundraising are siloed, and neither can control what the other does.
• Why are these two functions siloed? The executive director wants two department heads, each reporting to her; she won’t delegate responsibility.
• Why might consolidating responsibility so marketing and fundraising work in tandem help bolster awareness?

In this scenario, you might determine using the occasion of your nonprofit anniversary to restructure your organization chart will be a wiser use of your time than sending anniversary-themed messages. Ultimately, a well-synched communications program – where the right hand knows what the left is doing — will more successfully connect with donors and demonstrate greater, resonant impact.

2. It will be a good chance to engage people. You should already have a robust donor engagement strategy. The “story” of your longevity is apt to be less engaging than the many specific unique-to-you beneficiary stories you have to share about real change. Everybody has birthdays… ho, hum.

3. It’s a not-to-be-missed opportunity. Opportunity for what? Is reminding folks you haven’t solved hunger, homelessness, or poverty a good thing? Is this really something to celebrate? This gets back to the maxim “you are not your donors.” Have a nice party with your board and staff, by all means. It’s swell to celebrate your hard work and how far you’ve come. But donors are going to be more passionate about the difference they can make today, not the length of time your organization has been making a difference. “Give $75 to support an orphaned child’s education” is better than “Give $75 for our 75th Anniversary.”

When celebrating your nonprofit anniversary may be valid.

There are some reasons you may still want to highlight a nonprofit anniversary. Plus, there are some ways to go about it that can support your mission rather than distract from it.

1. To raise awareness about the enduring need – and the fact the collective fight continues. In this wonderful example, Cystic Fibrosis in the U.K. held a “no party” non-campaign: Cystic Fibrosis Trust ‘No Party’ – We won’t celebrate being 50 until everyone can. I’d add one caveat, however. It’s challenging to come up with something this clever. And, they probably could have simply relied on a few inspirational stories about their work without needing to go this route. On the other hand, the media may have picked up on this and helped them reach a broader audience. So, a good outcome.
2. To boost a marginalized group. If you represent, or are led by, one or more marginalized groups, celebrating your existence may be important in and of itself. Because, in your case, people may actually give because you exist.
3. When your survival was in question. If you just made it through a rough patch (like many did during the pandemic), an anniversary milestone may be just the opportunity to thank your supporters and your community for helping you pull through. The same holds true if you survived a natural disaster such as a fire, earthquake, tornado, hurricane, or tsunami.
4. To celebrate internally. As noted above, it’s a good chance to thank staff and volunteers who put in the daily work.
5. Your mission has new relevance. If you’re an organization that was founded to do one kind of work, and today it’s being called upon to respond to new challenges doing similar work, this is an opportunity to showcase the problems you currently address. For example, a refugee relief organization founded 75 years ago in the aftermath of W.W.II may have focused on resettling eastern European refugees. That same organization today may be focused on resettling Central and South American asylum seekers.

Final thoughts

If YOU are your target audience, question yourself. Just because you want to commemorate a nonprofit anniversary does not mean this is a good use of your organization’s time. And don’t lull yourself into complacency thinking “it can’t do any harm.” Yes, it can. Because all the time you’re spending on anniversary activities you’re not spending on higher-yield strategies.

At minimum, get specific with your goals. If you mostly want to do this to thank staff and volunteers, do that. And don’t get distracted by trying to turn this into a full-blown campaign whose objectives might be met more efficiently and effectively with other strategies.

Consider: What might be a better use of limited resources? Brainstorm a few possibilities.

Now you’ve got a number of real “don’t miss” opportunities!

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

Do you celebrate your nonprofit anniversary? Let us know in the comments.

The post [ASK AN EXPERT] Should You Celebrate Your Nonprofit’s Anniversary? appeared first on Bloomerang.

Dear Charity Clairity,

What is the average foundation portfolio size for a full-time grant manager? I can’t find an answer anywhere! I know this will vary depending on the GM’s salary and their fundraising goal, but there has to be a formula somewhere. I have been told by a higher up that our GM should be doing more. In FY23 they submitted 40 proposals for a total of $2.4M in asks. We received funding of just over $1M from their efforts.

— Need Direction  

Dear Need Direction,

While it’s generally a good idea to look for metrics against which to measure performance, in this case it’s a difficult thing to quantify. Which is probably why you’ve been unable to find a formula. And, as far as I’m aware, none exists. If I found one, I’d be suspicious of it. Let me tell you why.

What matters here is quality, not quantity.

Your grants manager could be sending out carbon copy proposals every day of the week, but that’s unlikely to improve your ROI. In fact, arguably, it could diminish your returns. Because it would mean you were not taking the time to make good matches, put together the most persuasive proposals possible, and do effective reporting to cement your relationship – and reputation for excellent execution and follow-through – with the funder.

What’s most important is you submit proposals only to funders likely to be a good fit for your particular project.

And this takes time.

• This requires foundation research.
• This requires internal research, talking to your own executive management to understand organizational priorities and your program managers to understand the depth and breadth of your organization’s services.
• This requires tailoring your proposal specifically for each particular funder.
• This requires reviewing your proposal – going over every element with a fine-toothed comb – to assure you’re explicitly addressing everything the foundation has asked for.

The grant manager must do even more than research and write.

These other parts of the grant process take more time.

• They must put together strong supporting documentation. For example, grant funders often ask for your tax exemption letter; incorporation status; annual report; current year operating budget; vision and mission statement; list of board of directors with affiliations; bios and/or resumes of key staff; DEI policy, and even client stories. Sometimes they’ll also ask for a strategic plan; a current budget vs. actuals; profit and loss statement; 990; an audited statement, and letters of support.
• They must prepare the budget that goes with the proposal. This generally fleshes out the narrative with figures and puts the project for which you’re requesting funding within a larger programmatic context. Generally, this budget also shows what funding you’ve already secured, who else you’re applying to for the balance, and how you hope to sustain this program after the grant expires.
• They must provide reports to demonstrate outcomes. Annual reports are the minimum; some foundations require bi-annual or quarterly updates as well.

If your grant manager is responsible for putting these items together, they need the time to do so. Plus, they need access to the information necessary to provide accuracy and transparency. When it comes to supporting information, some documents will be standard; once they’re pulled together, they only need to be updated annually. Other information, like the project budget, must be created for every single proposal. For reports, often the grant manager will need to ask the program manager to submit information to them that addresses all key outcomes outlined in the grant application and award. They’ll then need to edit, massage, and rewrite to put your best foot forward. Will your grants manager do this? Your finance manager? A program manager? Ideally, it should be a collaborative effort.

The number of funders for whom you are a good fit depends on the who, what, when, where, why, and how of your mission.

It also depends, to an extent, on foundation priorities in any given year. These are both things no grant manager, no matter how skilled, can control.

1. WHO: Are you well known? Is your reputation a positive one? If requested, could you support this with letters of recommendation?
2. WHAT: What, specifically, are you asking for help with?
3. WHEN: When is your funding needed, and how does this fit within the funder’s application and awards cycle?
4. WHERE: Are you a local, regional, statewide, national, or international nonprofit? Funders have guidelines around these things, and it’s important to be aware and adhere to them.
5. WHY: Why are you the best organization to do this? Can you distinguish yourself from other potential applicants occupying a similar space? Might it be beneficial to band together with some of these other groups to submit a joint proposal?
6. HOW: Specifically, how do you plan to spend the funder’s money, and who will be in charge of implementation? Are they well known? Do they have a strong track record?

All these things being true, a “formula” isn’t really possible.

Some organizations will have more of the things foundations are looking for than others. Some will have a stronger track record, more seasoned leadership, more experienced staff, greater longevity, cover a different geographic area, focus on a different market niche… and so forth.

I only know what you’ve presented here, but at first blush it looks like a completely acceptable ROI. You’re bringing in a good sum of money (certainly more than you spend on the grant manager position). Plus, on average, you’re able to submit a proposal just short of weekly (with time off for vacation, holidays and sick time). And part of the grant manager’s job is also to submit reports for all grants awarded!

Have I seen grant managers do more? Yes. But rarely. And they’ve generally been with the organization long enough to know it very well and in their position long enough to have all the information they need at their fingertips.

Have I seen grant managers do less? Frequently.

Count your blessings.

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

P.S. I did find one Foundation Center 2004 survey reporting the majority of foundations funded 25-49% of proposals. Additionally, organizations that gave out less funding overall (e.g., smaller community foundations) funded a higher percentage of proposals than larger organizations. I could not find similar data for more recent years.

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