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227 posts categorized "Fundraising"

What Is Donor-Centered Moves Management?

May 11, 2015

Yes-no_seesawWhat is donor-centered moves management? It's a donor cultivation approach that combines LOVE with a great MANAGEMENT SYSTEM to help you plan, make, and keep track of all the "moves" or "touches" per year targeting your major gift prospects.

Each "move" is thoughtfully designed to move your prospect along a relationship continuum — from awareness...to interest...to involvement...to investment — depending on where he or she currently is on that continuum.

When sufficient moves have been made and your prospect is feeling really good about your nonprofit — devoted to it, in fact — the final move is a request for a gift (or gift increase). One person, designated the Moves Manager, assures that all moves are coordinated and the solicitation occurs at the appropriate time.

You want (and need) to get your donor prospects to the point of active commitment. That's the point where they are able to answer "true" to the following questions:

  1. This is my favorite charity.
  2. I am loyal to this charity.
  3. I am a committed donor.

So, how do you get prospects to this point?

Major gift cultivation is a team sport

You want to have several people connecting with your donor prospects over the months (or years) leading up to the "ask." Why? For starters, no one individual is exactly suited to be matched with every prospect. Plus, it's a great way to involve board members and other stakeholders in the major gift process. You don't want a prospect's only interaction with your organization to be a hands-off institutional one. People who personify the passion and commitment behind your organization's mission should be the ones involved with your prospects.

Think about what's actually going on when a donor prospect says "yes" to a major gift solicitation.

They're actually saying "I LOVE you." They're making an active commitment to you, to your organization, and to your cause.

Who gets them to that point? YOU DO!

Your job is to create a climate for donor prospects in which it's easy for them to fall head-over-heels in love.

And you've got to be proactive to create such a climate. One of your team members (e.g., a board member) might invite them to coffee; another (a program director) might lead a site visit; and another (development staff) might invite them for a sit-down with your executive director.

In between, there should be a number of thoughtfully planned "touches" orchestrated by the development director or major gifts officer.

Everything is done according to a personal plan

Start by developing a list of possible "high-touch," "medium-touch," and "low-touch"cultivation moves you can incorporate into your major donor/investor prospect's individualized plan.

It goes without saying that a mass mailing in December doesn't count as a donor-centered move. A move only "counts" if it's executed according to a plan that's personalized for each and every prospect.

With each move, you should ask yourself:

  • How is this bringing us closer to asking for a gift?
  • What did I learn that will help us secure a gift?
  • Did I find out what motivates my prospect to give?
  • Did I find out what they love most about our organization?
  • What should I do next?

Cookie-cutter approaches won't do. You can't do this whenever the spirit moves you. And this is not something you do TO the prospect.

Donor-centered moves are a deliberate, focused set of actions you do WITH your major donor prospects — the thin slice of folks (10 percent to 20 percent of your prospect list) who account for 80 percent to 90 percent of your fundraising revenue. Each move builds on the next, strengthening the relationship between you and the prospect and eventually leading to a lovely major gift to your nonprofit — and a very happy donor.

Want to learn more about donor-centered moves management? Join us for 50 Ways to 'Move' Your Donor: Stewardship Solutions to Get to Yes with Finesse, May 19, from 2:00-3:30 pm ET, as Claire Axelrad, CFRE, describes how to build and execute an effective step-by-step cultivation plan. During the webinar, Claire will also share a novel, tried-and-true way to choreograph and measure your moves so you know exactly when you're ready to ask.

A sought-after coach and consultant, Claire Axelrad, J.D., CFRE, was named Outstanding Fundraising Professional of the Year by the Association of Fundraising Professionals and brings thirty years of frontline development and marketing experience to her work as principal of Clairification.

Most Popular PhilanTopic Posts (April 2015)

May 02, 2015

PhilanTopic hosted lots of great content in April, including opinion pieces by Risa Lavizzo-Mourey, president and CEO of the Robert Wood Johnson Foundation; Tonya Allen, president and CEO of the Skillman Foundation in Detroit; and Peter Sloane, chairman and CEO of the New York City-based Heckscher Foundation for Children; Q&As with Bill McKibben, co-founder of 350.org; Karen McNeil-Miller, president of the Kate B. Reynolds Charitable Trust in North Carolina; and Judith Shapiro, president of the New York City-based Teagle Foundation; a terrific book review from the formidable Joanne Barkan; thought-provoking posts from regular contributors Mark Rosenman and Derrick Feldmann; and a great Storify assembled by our own Lauren Brathwaite. But don't take our word for it...

What have you read/watched/listened to lately that made you think? Share your finds in the comments section below, or drop us a line at mfn@foundationcenter.org.

What Does It Really Mean to Be an Engaged Donor?

April 29, 2015

Headshot_derrick_feldmannI interview donors, young and old, all the time to learn why they support and give to the causes that are dear to them.

One question in particular generates interesting responses every time I ask it:

How involved are you with the organizations you support?

You might expect responses to that question to be pretty similar, and in fact I've found that they generally fall into one of three categories:

Response #1: I am fairly involved in the organizations I support and closely follow what they're up to on social media and through their newsletters.

Response #2: I am very involved with the organizations I support and try to help out as a volunteer at least once a month.

Response #3: I am heavily involved with the organizations I support and make a point of attending their annual galas and writing big checks.

What's the common thread here? The donors all believe they are actively engaged with the organizations they support. The sad reality, however, is that the organizations themselves probably see many of those donors as disengaged.

My conversation with donors and fundraising executives over the years merely confirms that view.

Why is that?

It's an interesting question, and I believe the answer has a lot to do with fundraisers' perception of their donors.

I recently had the chance to bring in and talk with fundraisers at five different organizations with which my firm works. Once they were settled, I asked each of them to answer the question: What does it mean to be an engaged donor? Here's what they said:

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Weekend Link Roundup (April 25-26, 2015)

April 26, 2015

Ss-150425-nepal-earthquake-09Our weekly roundup of noteworthy items from and about the social sector...

Disaster Relief

In the aftermath of a major natural disaster like the powerful earthquake that struck Nepal yesterday, early assistance -- in the form of money -- is the best and most effective kind of assistance. On her Nonprofit Charitable Orgs blog, Joanne Fritz shares other ways to help victims of a natural disaster.

Nearly $10 billion in relief and reconstruction aid was committed to Haiti after the devastating January 2010 earthquake in that impoverished country. Where did it all go? VICE on HBO Correspondent Vikram Gandhi reports.

Education

Has the education reform movement peaked? According to New York Times columnist Nick Kristof, "The zillionaires [who have funded the movement] are bruised. The idealists are dispirited. The number of young people applying for Teach for America, after 15 years of growth, has dropped for the last two years. The Common Core curriculum is now an orphan, with politicians vigorously denying paternity." Which is why, says Kristof, it might be time to "refocus some reformist passions on early childhood."

Evaluation

On the Center for Effective Philanthropy blog, Johanna Morariu, director of the Innovation Network, shares five grantmaker and nonprofit practices "that undermine or limit the ability of nonprofit organizations to fully engage in evaluation."

Fundraising

What is social fundraising? Liz Ragland, senior content and marketing associate at Network for Good, explains.

Nonprofit With Balls blogger and Game of Thrones fan Vu Le has some issues with the donor-centric model of fundraising. "When [it's] done right," he writes, "it’s cool; when it’s done wrong, we sound like the used car salesmen of justice...."

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Weekend Link Roundup (April 11-12, 2015)

April 12, 2015

Lincoln_shotOur weekly roundup of noteworthy items from and about the social sector...

Corporate Philanthropy

Indiana Business Journal reporter J.K. Wall looks at how Eli Lilly & Co. is shifting its corporate philanthropy from an approach focused on social responsibility to one that emphasizes "shared value."

Fundraising

In a post for the Evelyn & Walter Haas Jr. Fund, writer and consultant Cynthia Gibson asks whether organizations that work to foster a "culture of philanthropy," a mindset in which "fundraising is seen less as a transactional tactic and more of a way of operating," are more likely "to boost their giving levels and donor retention; strengthen trust, cooperation and engagement among board and staff members; and align mission and program goals more seamlessly with revenue generation." What do you think? Click on over to the Haas Fund site to share your thoughts.

Governance

Long admired for its no-tuition policy, Cooper Union for the Advancement of Science and Art in Manhattan began in 2014 to assess incoming freshman a tuition fee of $20,000 — a decision that led to student protests and media scrutiny of the school's financial dealings. Earlier this week, New York State Attorney General Eric T. Schneiderman launched an investigation of focused on the Cooper Union board's "management of the school's endowment; its handling of its major asset, the iconic Chrysler Building; its dealings with Tishman Speyer Properties, which manages the skyscraper; and how the school obtained a $175 million loan from MetLife using the building as collateral." New York Times writer James B. Stewart reports.

Human/Civil Rights

On the D5 Coalition blog, Ben Francisco Maulbeck, president of Funders for LGBTQ Issues, shares some thoughts about what foundations can do to support LGBT communities in the wake of the "religious freedom" bill signed into law by Indiana governor Mike Pence.

International Affairs/Development

On the Global Dashboard blog, policy analyst and researcher David Steven looks at five ways co-facilitators have made the targets for the post-2015 Sustainable Development Goals worse.

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Top Five Strategies to Raise More Money From Foundations

April 03, 2015

Fundraising-treeWe all know that grants are awarded in response to submitted proposals — not the draft sitting on your desk but the one you actually get out the door. Sounds simple, doesn't it? If you're spending too much time writing, editing and fine-tuning your proposals, you won't get them in front of the decision makers at foundations — or at least not enough of them to bring in the significant dollars you could be raising. That's why my "top tip" for bringing in more funding is to spend more time asking and less time writing.

But getting more proposals out the door isn't a strategy in and of itself. Effective fundraisers need to determine the correct amount to ask for from foundations that care about what they do, and then work to build connections with those funders over time.

To that end, here are my top five strategies for streamlining your fundraising program and ensuring that you spend your time as effectively and efficiently as possible:

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Weekend Link Roundup (March 28-29, 2015)

March 29, 2015

Umbrella_april-showersOur weekly roundup of noteworthy items from and about the social sector...

Collaboration

On the Rockefeller Foundation blog, Zia Khan, the foundation's vice president for initiatives and strategy, shares four "counter-intuitive lessons" about cross-sector collaboration.

Data

On the Markets for Good blog, Bill Anderson, technical lead for the Secretariat of the International Aid Transparency Initiative (IATI), examines the potential for a people-based data revolution across Africa.

Education

50CAN, a network of local education advocates "learning from and supporting each other," has launched a new blog called The Catalyst to help local education leaders develop policy goals, craft their advocacy plans, and secure lasting change.

On the Michael & Susan Dell Foundation blog, Cari Schneider, director of research and policy for Getting Smart, suggests that one of the least appreciated barriers to effective education reform is definitional in nature.

Fundraising

Why do people give to charity? The Guardian explains.

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[Infographic] 10 Traits That Make Nonprofits Great

March 21, 2015

This week's infographic, courtesy of the Horatio Alger Association, a nonprofit educational organization "established in 1947 to dispel the mounting belief among the nation's youth that the American dream was no longer attainable," doesn't break any ground when it comes to the traits that make nonprofits great. These are things all nonprofits need to (rather than should) do if they hope to succeed over the long term. But while some (#4, #6 and #9) are more important than others, all contain at least a kernel of good advice....

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Are You Taking Your Donors on a Journey?

March 10, 2015

Headshot_derrick_feldmannI spend a significant amount of time talking with donors about the things organization and causes do (or should be doing) to attract and engage them. That doesn't mean I don't have colleagues and friends on the for-profit side of the fence. In fact, that's where I get a lot of my ideas.

At the meetings and cocktail parties where I run into those colleagues and friends, I hear a two-word phrase over and over again. That phrase is customer journey – the idea that every point of contact between a company and its customers is important and should flow organically from one point to the next. As they explain it, it starts with a customer's first glimmer of interest in a product or service and extends to the point of purchase. But it doesn't end there; the journey continues as long as the customer remains engaged with your brand.

The same dynamic exists in the cause world. We just don't realize it.

It's time we did. It's time to focus on the donor journey – on how donors interact with your cause, from the moment you manage to get their attention to the call to action that leads to a gift – and beyond.

"But, Derrick," I can hear you ask, "why the change in terminology? Isn't donor journey just another term for stewardship?"

Yes and no. You can't expect a person to support your cause or organization if you don't ask them. But asking is no guarantee that support will follow, and it's not the same thing as inviting someone to take a journey with you.

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Weekend Link Roundup (March 7-8, 2015)

March 08, 2015

Daylight-Saving-TimeOur weekly roundup of noteworthy items from and about the social sector...

Criminal Justice

"For years, punitive policies...have conspired to reinforce injustice and inequality [in America]. Together, they have produced an overrepresentation of people of color in our prisons and jails. Today, more African Americans are part of the criminal justice system than were enslaved on the eve of the Civil War," writes Ford Foundation president Darren Walker in an op-ed in the Sacramento Bee. Walker goes on to mention some of the things Ford is doing to bring change to the criminal justice system and urges policy makers and his colleagues in philanthropy to do more to address the root causes and systemic issues that contribute to the shameful pattern of mass incarceration in the U.S.

Education

In the Washington Post, Lyndsey Layton reports that New Jersey governor Chris Christie's plan to remake the Newark public school system with the help of a $100 million investment from Facebook co-founder Mark Zuckerberg has run aground.

Fundraising

In a post on LinkedIn, Wounded Warrior Project CEO Steve Nardizzi applauds the Humane Society of the United States'  suit against Oklahoma attorney general Scott Pruitt, who, according to Nardizzi, "has waged a public war against the HSUS, accusing the organization of exorbitant fundraising costs for misleading solicitations and untruthful advertisements."

On the other hand...a new report (“Pennies for Charity”) shows that for-profit telemarketers operating in New York in 2013 retained the majority of the funds they raised on behalf of charities.

Governance

Writing in the Stanford Social Innovation Review, Jim Thaden, executive director of the Central Asia Institute, offers a staunch defense of the organization's decision not to fire co-founder Greg Mortenson after a 60 Minutes segment in 2011 questioned  many of the "facts" in Mortenson's best-selling 2006 memoir Three Cups of Tea and raised questions about the organization's finances.

Impact/Effectiveness

"Impact investing advocates can sometimes give the impression that they have 'outsmarted poverty' (and other societal problems)," writes Alex Counts, president and CEO of the Grameen Foundation, on the Center for Financial Inclusion blog. But "[i]t is important to remember that few if any social innovations besides microfinance have proven capable of reaching large scale and generating consistent profits – which should give people pause before they create a new impact investing 'bubble'."

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Why ‘Crowdfunding’ Government Is a Bad Idea

February 26, 2015

Crowdfunded_dollar_signGovernments at the local, state, and federal level increasingly are competing with charities for private-sector donations using crowdfunding and other individual donor-focused techniques. That's a problem not just for nonprofits, but for all who depend on government to address our shared needs.

Most people would agree that the more each of is willing to do to help those in need, whether with our time or money or both, the better off we all are. That kind of engagement makes for better neighbors and better citizens, both of which are key ingredients of a better society.

So why are we suddenly eager to substitute individual philanthropy for collective public responsibility? Do we really trust people's personal motivations and sometimes impulsive altruism to substitute for government in prioritizing problems and aggregating resources to address those problems over the long haul?

Consider the ALS Association's wildly successful Ice Bucket Challenge, which has raised more than $115 million since its debut in July for the organization's efforts to find a cure for Lou Gehrig's disease (amyotrophic lateral sclerosis) – about six times the association's total revenue from all other sources in 2014. The challenge, which encouraged participants to video themselves having a bucket of ice water poured over their heads and then nominating others to do the same within twenty-four hours or pay a "penalty" in the form of a contribution to the association, also drove worldwide donations for ALS of an additional $100-plus million. No wonder nonprofits and governments at all levels have become interested in crowdfunding and other social-media-driven techniques. Yet, for all its success, the Ice Bucket Challenge also highlights some real issues.

Few would begrudge the ALS Association a penny of those contributions. But one could be forgiven for wondering why the 2.4 million new donors to the organization (triple the number it could boast prior to the challenge) made the decision to contribute.

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Five Ways to Improve Your Digital Strategy for Older Donors

February 17, 2015

Older-donors-with-computerSome of the biggest nonprofit campaigns of recent years were most notable for how well they mobilized the ever-elusive Gen Y demographic. The ALS Ice Bucket Challenge became a viral sensation, and the It Gets Better Project's successful YouTube videos helped bring light to important issues affecting the LGBT community. But while these efforts certainly have helped to illuminate the future of fundraising, they haven’t been as successful in engaging older people, who consistently give the largest donations year after year. For those hoping to use technology to connect with their older donors, here are five important points to keep in mind as you create your digital plan of attack.

Older donors are much more tech-savvy than many give them credit for

  • Nearly 3 out of 5 donors age 66 and older currently make donations via the web.

With the rise of tablet computing and streamlined mobile UIs, mobile technology is more accessible to different age groups than ever before. Studies show that in recent years, older users have proven to be very adaptable when it comes to new technologies and are just as likely to donate online as their younger counterparts.

Even though older users need a bit of extra care when it comes to accessibility, it's important that you don't view your older donors as technologically illiterate. The tough part is catering to these older audiences while still creating a digital experience that appeals to younger constituents as well.

Making your site more accessible to older donors

When catering to an audience of older constituents, the ideal goal is to strike a happy balance between quality design and carefully considered user-friendliness.

A few design details in particular, like font size and page navigation, are critical for making a site accessible to older visitors. According to Nielsen's usability tests of users aged 65 and over, older citizens require larger typography, with 12-point fonts (and higher) working best. In addition, older users tend to be more frustrated by frequent site and design changes. While this is less of a design detail, it's a good point to note for web designers who like to make tweaks on a regular basis.

When it comes to driving conversions, make sure you're prominently featuring all of your most common actionable functions. If you have a "donate" button, make it clearly visible on every page. By minimizing the number of clicks between your users and the option to donate or volunteer, you create an online presence that is simultaneously accessible and streamlined. For examples of sites that do this well, visit the Sierra Club, New York Road Runners, or the American Cancer Society.

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Nonprofit Sponsorship: 3 Key Questions

February 04, 2015

Sponsorship_keyYou've probably heard the story of legendary criminal Willie Sutton, who, when asked why he robbed banks, responded, "I rob banks because that's where the money is." Now whether Sutton actually said that is debatable, but many fundraisers have picked up on the lesson — and Sutton's grasp of the obvious. You want money? Figure out who has it and who's "giving" it away.

One answer to the "who has the money" question is corporations. Often a nonprofit's first way "in" to a corporation is through its foundation or corporate giving program — philanthropic vehicles with which fundraisers are very familiar. But what about nonprofit sponsorship? About thirty years ago, "cause marketing" became a real avenue for major corporate brands to position themselves in a favorable way with their customers. Suddenly, companies were investing in nonprofits and nonprofit causes — not only to support those organizations, but to help build their own brand loyalty. It was a new way of thinking, a new approach.

Fast-forward to today. In 2014, corporate sponsors were projected to spend over $925 million on the arts alone (IEG Property Sector Spending Report, 2014). And the top three companies sponsoring the arts?

  1. Bank of America
  2. Wells Fargo
  3. JPMorgan Chase

As a result of the astronomical growth in sponsorship and cause marketing, many nonprofits have followed the "money trail" and ramped up their sponsorship efforts. This makes a lot of sense as organizations, no longer able to rely solely on funding from foundations, individual donors, and corporate giving programs, scramble for new sources of revenue.

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Weekend Link Roundup (January 31-February 1, 2015)

February 01, 2015

Winter_precipOur weekly roundup of noteworthy items from and about the social sector...

Children and Youth 

In an op-ed in the Albuquerque Journal, La June Montgomery Tabron, president and CEO of the W.K. Kellogg Foundation, urges legislators in New Mexico, which ranks 48th nationally in child poverty, to expand the state's investment in prenatal and early childhood services. "The path to a healthy and successful future for our kids starts in the earliest years of their lives," writes Tabron. "Research has shown that 90 percent of a child’s brain development occurs before the age of 5, which tells us that a child’s learning begins well before he or she ever sets foot in a kindergarten classroom."

The Economist agrees. In an article from the January 24 issue, the magazine argues that the solution to growing inequality is not "to discourage rich people from investing in their children, but to do a lot more to help clever kids who failed to pick posh parents. The moment to start is in early childhood, when the brain is most malleable and the right kind of stimulation has the largest effect."

Communications/Marketing

Who are the "stakeholders" in social change communications? Andy Burness offers his thoughts on the Frank blog.

Community Development

On the Living Cities blog, Rip Rapson, president and CEO of the Kresge Foundation, shares three lessons from Detroit's recent emergence from bankruptcy.

Fundraising

Investments in online fundraising technology and strategies made by "early adopter" nonprofits are starting to pay off, as these fifteen stats from Nonprofit Tech for Good show.

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The Future of Fundraising Is Peer-to-Peer

January 31, 2015

Headshot_derrick_feldmannWhen I was leading fundraising efforts at a national nonprofit, the focus of everything I did was the individual donor. From coming up with new ways to get donors to give to creating messaging that resonated with their interests, I spent pretty much every minute of every day thinking about how I could gain donors' trust and confidence and persuade them to support our organization.

After a while, I realized our donors had value beyond what they gave (in money or time), that in fact we could use them to introduce us to people who weren't supporting us – although I never would have asked a donor to physically make an ask on our behalf.

A few years have passed, and my thoughts on this score have changed. That has a lot to do with the emergence of social networking and peer-to-peer (P2P) models.

You can see this in our industry, which over the last three years has moved quickly to embrace peer-to-peer fundraising. I know: many nonprofit professionals argue that online giving is the hot thing in the fundraising space. It seems to me, however, that the rapid growth of online giving owes much to the emergence of peer-to-peer tools and platforms that make it easy to find and give to causes or individuals who may be many degrees of separation removed from us.

How has this changed the job of the professional fundraiser? In the past, fundraising was an activity based in part on the willingness of fundraisers to ask for support from friends, family, and deep-pocketed individuals with whom they had a personal connection. Today, in contrast, the professional fundraiser has at his or her disposal a range of options, from social media and dedicated websites to personalized giving pages and text messaging services, that enable him or her to reach many more people, in many more locations, than was possible before.

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