Three barriers to superb fundraising

© Shutterstock

Dennis Walsh, CPA

My wife serves on the board of a charity recently in need of a fundraising kick-start. In response, another director sent more than 400 letters to past supporters reminding them of the organization’s important work.

Not familiar with mail-merge, the director filled each salutation individually, personally signed each letter and hand addressed hundreds of envelopes. But the director omitted one question: Will you support us? And the number of gifts received from the mailing? None.

This experience introduces the first of three barriers to superb fundraising.

Barrier #1: Missing the journey

More has been written about the “ask” than perhaps any other aspect of fundraising. In the case of major gifts in particular, much has been said about creative ways to frame the solicitation, timing issues to be considered and blunders to be avoided when popping the all-important question. And as illustrated by the early example, even the best crafted effort is likely to fall flat absent a direct request.

But more than asking for money, fundraising should be viewed as a journey of inspiring passion and becoming part of something truly special. And there’s no better way to start the journey than with personal testimony.

“I recall my first fundraising experience,” says Bob Newton, a seasoned nonprofit leader and past board chair of the Cone Health Foundation in Greensboro, N.C. “The prospect’s response was a simple ‘thank you.’ I was taken aback. He went on to explain that he was flattered to be given the opportunity to participate in the venture, and yes, he would be glad to be a part of it.

“I have tried ever since to keep this in mind. The lesson is that there are lots of good causes, but not as many good stories,” adds Newton.

What is compelling is the stories program constituents tell of how far they have come with just a little help and encouragement and how they in turn have stepped up to help someone else.

Barrier #2: Acting individually

In fundraising, you don’t need any lone rangers. Teamwork is vital. And you need a good system to keep track of who's doing what.

“I recently called a friend to inquire about support for a fundraising dinner, and his first comment was what a wonderful ‘sales force’ we had, since I was about the fifth person who had called,” recounted Newton. “He was light-hearted about it, but for me, it painted a picture of lack of coordination and the probability that we didn't quite know what we were doing,” says Newton.

Record-keeping needs to be robust and up to date, so an organization knows as much as possible about each prospect and can coordinate communication. The development team must demonstrate that it is well managed and thereby inspire confidence in stewardship.

More than ever, people value their privacy. The phrase “constant contact” is conceptually sound, but should not translate as “constant annoyance.” Don’t lose your edge by over-soliciting.

Barrier #3: Terminating the gift

The advertising catchphrase “the gift that keeps on giving” has served well for decades. Applied to a fundraising context, the gift shouldn’t end when the check clears the bank.

Genuine personal gratitude is important. People like to know that their support is appreciated and that it is being put to good use consistent with the solicitation. This is borne out by a recent study of high net-worth individuals conducted by U.S. Trust and The Philanthropic Initiative, which found that concern that a gift won’t be used wisely is the top reason why such individuals don’t give more.

The thank-you should be immediate. Contact from several different sources tells the donor that it is not just someone's job to provide acknowledgment, but that the gift has been widely noticed. And this needs to be followed by timely updates on how the gift is making a difference. The more specific, the better.

Inciting anger, fear and even a dose of guilt over an unmet social need or injustice can be powerful short-term motivators. However, sincere and personally expressed gratitude is more likely to sustain donor affinity and refresh inspiration over time.

Taken together, these principles will help guide you toward realizing superb fundraising result.

Dennis Walsh, CPA is director of The Micah Project in Greensboro, serving as a resource to charitable organizations on financial management, legal compliance and organizational development.

Sports lesson to never give up is key to strong brand awareness for nonprofits

  © Shutterstock

Special to Philanthropy Journal

Sarah Crawford

Since May 2011, I have had the pleasure of working at Tammy Lynn Center for Developmental Disabilities. Tammy Lynn Center has benefitted from strong brand awareness and a robust fundraising program, with a rich history in the Triangle since 1969.  

In 2002, I had the privilege of meeting Dr. LeRoy T. Walker, the first black president of the U.S. Olympic Committee.  An amazing athlete and inspirational leader, Dr. Walker has shaped the thoughts of many people, including me.

Dr. Walker said, “In sports, one has to recognize that success is not final, and failure is not fatal.”

This quote applies to work across all industries and can be easily translated to the nonprofit sector.   Although Dr. Walker said it much more eloquently, when it comes to building and achieving strong brand awareness, I have generally two rules: 1) Your work is never done, and 2) It usually doesn’t hurt to try.

I’ll elaborate.

·         Your work is never done. Tammy Lynn Center has been around for more than 44 years. We have served thousands of Triangle families. Families move from out of state just to receive Center services. We have been visited by international constituencies asking us how to best serve their communities. This gives evidence of Tammy Lynn’s strong brand awareness, but that does not mean that we can become complacent.

In a world of so much noise, we must find a way to be heard and the way that we do that and promote our brand is this:

o   Take advantage of every opportunity to do what I call “Waving the Flag.”  Attend Chamber events, leadership conferences and say yes when asked to speak.

o   Start with the Why. Tell the story about why what you do matters first.

o   Be engaged in the conversation. Get in the conversation early with your city, county and state leaders. This creates relevancy for yourself and therefore relevancy for your agency.

·         It usually doesn’t hurt to try. Over the past 44 years, Tammy Lynn Center has had the opportunity to try many marketing and brand building approaches. We have invested in different media mediums, begged for news coverage and created opportunities for the press to come visit. Trying all of these ideas has given us a chance to evaluate success and retool our plan. Here are our general rules for marketing:

o   Smart Marketing

§  Don’t rely on every media outlet to give you free coverage.

§  Media agencies will respond to a list of what you want. Create a list that includes a combination of what you can pay for and what you would like donated.

§  Don’t invest in every form of advertising. Think about your targeted audience. What is your message to them? Then, target your marketing to appropriate advertising outlets that reach your audience.

o   Creating brand awareness is evolution, not revolution. Plant the seeds, water them, and then tend to the plants as they grow. Some crops that you plant might not grow the way you expect; some might not grow at all. Use that as a learning experience to refine your methods.

Tammy Lynn Center has had a robust fundraising program, and every year we are getting better. This does not mean that we do anything exactly creative. In fact, I would caution organizations about watching for gimmicks that promote having a magic fundraising bullet. The truth of the matter is that there is no magic bullet. It comes down to one thing:  Relationship building.

Donors give money for two reasons: 1) They feel passionate for, or connected, to the cause. 2) They cannot say no to the person asking.

Connecting to the Cause:

·         Some donors have a personal connection because they have used services. In this case, the passion is already there.

·         Individuals and corporations not already connected to your cause need a reason to become connected. To create a reason, your first step is to listen. Listen to what the individual or corporation cares about and then look for ways that your organization connects to them.

Not being able to say “No” to the person who asks:

·         This comes down to relationships. Build partnerships with corporations and foundations. Build relationships with individuals.  

·         Investments versus transactions.  Think about a transaction as being a date. Think about an investment as being marriage. You want a happy marriage for your donors and your organization.  It takes time to build a marriage.

·         Keep your donors saying yes!  Communicate how their support makes a difference, let them know what the organization is doing, and continue to invest in your relationship.

I’ll leave you with another Dr. Walker quote,  “We ought to keep them informed. We ought to let them know what the Olympic movement is all about and what’s happening to the dollars that they give.”

Evaluating GoodSearch: Effective e-philanthropy or fundraising fad?

Special to Philanthropy Journal

Ann Roper Bowen

@Shutterstock

Nonprofit organizations are increasingly engaging in online philanthropy to promote their mission, communicate with constituents and fundraise. Volunteer-matching websites, strategic email marketing, social media tools and click-and-give sites abound.

In 2005, the GoodSearch search engine emerged as a way for nonprofits and schools to raise money for their mission simply by surfing the web. Partners with Yahoo!, GoodSearch donates $0.01 to a user’s designated charity for each Internet search conducted through the site.

To date, more than 110,000 nonprofits and schools have joined GoodSearch, collectively earning more than $9.9 million. But does it really work? According to a 2010 study of 400 registered GoodSearch organizations, it depends. 

The study randomly selected 400 of the nearly 87,000 registered nonprofits with the GoodSearch site (as of 2009) to investigate trends in GoodSearch revenue. Through data analysis and a 14-question survey, the study sought to answer a number of questions: What is the average revenue generated? Do certain organizations yield more money than others? Are there any strategies to achieving success? The goal was to help nonprofits wisely allocate their limited resources when developing their online fundraising strategy.

Of the 400 organizations studied, nearly 89 percent earned less than $100 through GoodSearch, with nearly a quarter earning nothing. The most revenue earned was $1,700, which represented less than 1 percent of the organization’s total revenue. GoodSearch touts the great success of organizations like the ASPCA; however, the $10,000 the ASPCA raised through the site in 2008 was a drop in the bucket compared to its $127 million in revenue the same year.

While the revenue potential is modest for those who join GoodSearch, many organizations choose to use this free, relatively simple form of online fundraising to increase their web presence, join the e-philanthropy movement or appeal to the desires of board members. Whatever the reason, nonprofit professionals should bear in mind several factors to make the most of GoodSearch for their organization:

First, consider your mission. Organizations with a religious mission, such as faith-based services, and those with sports and recreation programs, such as school athletic teams, earn more revenue than other nonprofits studied. The reason why is unclear, but you’re more likely to see success if you fit one of these categories.

Second, stick with it. Revenue tends to increase with each additional year of use from an average of $3.53 in the first year to about $82 in the fourth year. The longer and more frequently you use it, the more your money will grow.

Third, promote GoodSearch to your constituents. Web-based marketing is the most effective strategy for increasing GoodSearch revenue. GoodSearch offers its logo and other free, user-friendly tools to assist participating nonprofits with their marketing efforts. Those organizations that took advantage of these tools raised more money than those that did not.

Web-based announcements about GoodSearch also contributed to increased revenue. Post the GoodSearch logo on your website along with a blurb that links directly to the site. This makes it easy for your supporters to get started and will result in more money earned.

Finally, manage your expectations and those of your staff and board. GoodSearch will not be your organization’s answer to its fundraising woes. But it is a fun, free and rather easy way to generate some money for your agency’s cause. And in the nonprofit world, small gifts can make a difference.

Note: Since the original study was conducted in 2010, GoodSearch has added new features such as GoodShop and GoodDining and launched a new website and logo which differ from images presented in the study’s appendix.

Ann Roper Bowen holds a Master in Public Administration with a concentration in Nonprofit Leadership from the University of North Carolina at Chapel Hill. Her research of GoodSearch was conducted during her graduate study at UNC. After three years in membership development and communications with the YMCA of South Hampton Roads in Norfolk, Va., Ann is staying at home with her young twins.