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311 posts categorized "Fundraising"

Collaboration Is the New Competitive Edge

July 04, 2017

Successful-collaborationThere aren't many secrets among friends. At least not between DonorsChoose.org, Kiva, and GlobalGiving. For nearly half a decade, my GlobalGiving colleagues and I have been sharing intel with these peers (and a few others) via monthly phone calls and occasional meet-ups. Because we're all working to improve our giving communities, nearly every strategy and tactic is open for discussion. Especially when it comes to donor engagement and retention.

Most nonprofits work tirelessly to engage and retain donors, but there isn't much data about what works online. Much of the research on giving to date has been associated with donor acquisition rather than donor retention, as the latter requires nonprofits to collaborate with researchers. Recently, however, all three of our organizations teamed up with Harvard Business School's Michael Norton and Oliver Hauser to conduct the first known synchronized A/B field test involving three nonprofits. The experiment, aimed at driving repeat donations, was generously funded by the John Templeton Foundation.

The tactic we chose to explore? Pseudo-sets. Previous research by the HBS team suggested that individuals are motivated to complete tasks when they are framed as part of a "pseudo-set" — that is, rather than just performing a single action, individuals are asked to perform three or four actions to complete the "set." In fact, research has shown that task completion can jump five-fold when people are presented with wedges of a pie chart that fill in as each task is completed (compared to the control without a set). Inspired by that idea, my colleagues and our friends at DonorsChoose and Kiva ran a large-scale field experiment across our respective crowdfunding platforms (which together reach more than 200,000 donors) to test the effect on fundraising of "pseudo-set" framing. Could the approach inspire more giving?

I won't bore you with the details, but interestingly the HBS researchers identified a significant pseudo-set framing effect when looking at two of the participating charities, GlobalGiving and DonorsChoose.org. They did not see the same effect among Kiva lenders, however. Which — no surprise —left us all wanting to know more. Fortunately, the experiment was only the beginning of the collaboration involving the three organizations and team of HBS researchers, and our consortium is already designing a second phase of experiments that will explore what worked (and didn't) to motivate donors on our respective platforms.

We also hope the model inspires more collaboration involving other nonprofits, researchers, and foundations. "The coordination, execution, and teamwork required for this project — enabling three organizations to pull off a synchronized field experiment across their respective platforms — offers an exciting avenue for novel, large-scale research with the potential to surface unique insights into the psychology of giving," says Norton.

Kevin Conroy, chief product officer here at GlobalGiving, notes that collaboration of this kind saves nonprofits money and can increase their impact. "At the end of the day," he adds, "many organizations have the same goal: to make the world a better place. No matter what programs you have to achieve that, be it funding classroom needs, providing microloans, or supporting grassroots projects around the world, sharing knowledge increases the speed of innovation and lets us all do more with less."

DonorsChoose.org, GlobalGiving and Kiva will continue to collaborate and run experiments. We're reviewing and testing the latest research in the sector, including work funded by the Templeton Foundation and the Bill and Melinda Gates Foundation. What drives generosity? How can we inspire donors to give more, both in terms of total giving and frequency of giving? How can we best retain donors over time? How well does past research, conducted primarily with phone solicitations and snail mail, translate to a digital-only appeals? We want to help donors become better at giving. We believe our consortium can help shed light on some of these big questions faster. And, of course, we promise to share what we learn.

Headshot_alsion_carlmanAlison Carlman is the director of marketing and communications at GlobalGiving.

Weekend Link Roundup (June 3-4, 2017)

June 04, 2017

Pittsburgh office media carousel skyline triangle  700x476Our weekly roundup of noteworthy items from and about the social sector. For more links to great content, follow us on Twitter at @pndblog....

African Americans

In an op-ed for the New York Times, Melissa Harris-Perry, a professor in the department of politics and international affairs at Wake Forest University, television personality, and founding director of the Anna Julia Cooper Center, has some advice for the NAACP, which recently announced the departure of its president, Cornell William Brooks, and its intention to pursue an "organization-wide refresh."

Climate Change

Hours after Donald Trump claimed "to represent the voters of Pittsburgh in his decision to withdraw the United States from the Paris climate agreement," Pittsburgh mayor Bill Peduto announced his support for a goal of powering the city entirely with clean and renewable energy by 2035. Shane Levy reports for the Sierra Club. (And you can read Peduto's executive order to that effect here.)

Although there's no doubt that "President Trump’s decision to abandon the Paris Agreement on global warming is a short-sighted mistake," writes Nature Conservancy president Mark Tercek, the jury is still out as to whether "the decision [will] unravel the entire agreement."

Fundraising

We missed this post by Vu Le outlining the principles of community-centric fundraising when it was first published in the lead up to the Memorial Day weekend. But it is definitely worth your time.

Hey, Mr./Ms. Nonprofit Fundraiser, job got you down and almost out? Beth Kanter shares four warning signs of burnout — and easy ways to make yourself feel better.

On the GuideStar blog, BidPal's Joshua Meyer looks at five unexpected benefits of text-to-give software.

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Most Popular PhilanTopic Posts (May 2017)

June 02, 2017

Like many of you, we're trying to make sense of all the tweets, charges/counter-charges, and executive orders emanating from the White House. One thing we do know, however: you found plenty to like here on the blog in May, including a stirring call to action from Tim Delaney, president of the National Council of Nonprofits; some excellent grantmaking advice from Peter Sloane, chair and CEO of the Heckscher Foundation for Children; a new post by everyone's favorite millennial fundraising expert, Derrick Feldmann; posts by first-time contributors Nona Evans and Jaylene Howard; and an oldie-but-goodie by fundraising consultant Richard Brewster. But don't take our word for it — pull up a chair, click off MSNBC, and treat yourself to some good reads!

What have you read/watched/heard lately that got your attention, made you think, or charged you up? Feel free to share with our readers in the comments section below. Or drop us a line at mfn@foundationcenter.org.

Weekend Link Roundup (May 27-28, 2017)

May 28, 2017

Our weekly roundup of noteworthy items from and about the social sector. For more links to great content, follow us on Twitter at @pndblog....

Frog-in-the-Rain

Climate Change

As the Trump administration prepares to exit the Paris climate agreement, a new Global Challenges Foundation poll finds that a majority of people in eight countries — the U.S., China, India, Britain, Australia, Brazil, South Africa and Germany — say they are ready to change their lifestyles if it would prevent climate catastrophe — a survey result that suggests "a huge gap between what people expect from politicians and what politicians are doing."

Criminal Justice

On the Ford Foundation's Equal Change blog, Kamilah Duggins and William Kelley explain why and how they created a professional development program at the foundation for graduates of the Bard Prison Initiative, which creates the opportunity for incarcerated men and women to earn a Bard College degree while serving their sentence.

Diversity

A new white paper (6 pages, PDF) from executive search firm Battalia Winston sheds light on the lack of diversity within the leadership ranks of the nation's foundations and nonprofit organizations.

Education

Does the DeVos education budget promote "choice" or segregation? That's the question the Poverty & Race Research Council's Kimberly Hall and Michael Hilton ask in a post here on PhilanTopic.

Fundraising

There are mistakes, and there are fundraising mistakes. Here are five of the latter that, according to experts on the Forbes Nonprofit Council, we all should try to avoid.

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Charities Stand to Benefit From Trillions in Mandated Retirement Distributions

May 23, 2017

61mitchmillerThe same generation that sang along with Elvis, the Beach Boys, and the Beatles will be singing a different tune as they pay taxes on trillions in 401(k) and IRA required minimum distributions (RMD) this year.

In January, Edward Shane, managing director at Bank of New York Mellon, told the Wall Street Journal that he estimates boomers have roughly $10 trillion stashed away in tax-deferred savings accounts. As the first generation with 401(k)s, boomers are in a unique position to call their own tune as they decide what to do with that money. How can charities join the chorus and benefit from this potential windfall?

HBO's recent documentary Becoming Warren Buffett highlighted the homespun billionaire's pledge to give away the bulk of his wealth during his lifetime. Buffett is setting a new standard for philanthropy and — more importantly — is encouraging others to do the same. Not everyone is Warren Buffett, of course, but we can all learn from his philosophy of giving.

Boomers can make "giving while living" the norm

My parents, who are among the oldest of the boomer generation (born between 1946 and 1964), turned 70 last year. According to Pew Research, they are just two in a wave of 74.9 million boomers who will be reaching that milestone over the next decade and a half. Though only second in size (behind the millennials), the boomer generation is the wealthiest on record. That puts them in a position to give more than any previous generation.

My parents will mark another "first" this year when they hit the RMD age of 70½, meaning they will be required to withdraw monies from their retirement accounts (IRAs or other tax-deferred vehicles) or face steep penalties (50 percent of the amount not withdrawn). Of course, these distributions are taxable, and for some boomers they will represent unwanted income, which is where a proactive giving strategy comes in.

Boomers who want to establish a "giving-while-living" strategy (akin to Buffett's, in principle if not size) can take their RMD from their tax-deferred retirement savings plan and allocate those assets directly to a charity through a Qualified Charitable Distribution (QCD). A QCD is a direct transfer of funds from the trustee of an IRA to a qualified 501(c)(3) organization. There are other requirements: $100,000 is the maximum allowed per year, and the IRA or 401(k) holder must be 70½ or older.

The benefits of this type of planned charitable giving strategy are threefold. First, QCDs can satisfy the required minimum distribution. Second, QCDs are excluded from taxable income. And third, studies show that giving back can make you happier and feel more connected with your community.

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3 Ways to Bring Your Work to Your Donors (Instead of Asking Them to Come to You)

May 19, 2017

Mobile_ExperiencesNearly every nonprofit organization I deal with is careful to include an "experiential" touch point somewhere along the donor journey. That is, once they've cultivated a new donor, they spend a considerable amount of time and effort attempting to persuade that donor to volunteer or participate in some kind of hands-on activity at their headquarters or at an off-site location where the donor can experience their work firsthand.

Sound familiar? If your organization does something similar, how often is it successful? (Be honest.)

As nonprofit and cause leaders, we wish every individual had the opportunity, interest, and time to meet the people we serve and see the impact of our work in real time. But let's face it, getting donors to visit your offices or to join you on a site visit usually isn't realistic. Why? Because people are busy.

After my colleagues and I figured that out (it took us a few years), we adopted a number of practices designed to bring our work online: posting photos and videos on social media, sending out a series of emails, and so on. Unfortunately, pretty much everyone else adopted the same practices at about the same time. Today, they are so commonplace — and people are so inundated with emails and status updates as a result — that it's hard, if not impossible, to get your message stand out amid all the noise.

What's an organization to do? How can organizations share with donors the important work they are doing in a way that's both meaningful and experiential?

Actually, all it takes is a shift in mindset: Instead of bringing the donor to your work, you have to bring your work to the donor.

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Most Popular PhilanTopic Posts (April 2017)

May 03, 2017

For those in the Northeast, April was rainy, cool, and dreary. Here on the blog, though, things were hopping, with lots of new readers and contributors. The sun is back out, but before you head outside, check out the posts PhilanTopic readers especially liked over the last thirty days.

What have you read/watched/heard lately that got your attention, made you think, or charged you up? Feel free to share with our readers in the comments section below. Or drop us a line at mfn@foundationcenter.org.

[Infographic] The State of Donor Retention 2017

April 29, 2017

The folks at nonprofit management and fundraising software company Bloomerang recently surveyed 775 nonprofit organizations (mostly) in the U.S. and Canada "to see where they stand on the issue of donor retention" — and are sharing some of the key findings in a nice little infographic on their website (and below):

Infographic_state-of-donor-retention-in-2017

No real surprises here. The vast majority (99 percent) of the surveyed respondents have heard the term "donor retention" (up from 98 percent in 2014, the last time Bloomerang conducted the survey), while two-thirds (67 percent) track their donor retention rate (up from 55 percent in 2014). Maybe more interesting are the reasons nonprofits give for NOT tracking donor retention:

  • don't have the tools (20 percent)
  • don't know how (16 percent)
  • aren't sure what they would do differently if they knew their rate (14 percent)
  • no one has ever asked to see it (13 percent)
  • don't care about the metric (1 percent)
  • "other”

What about your organization? Is donor retention something you and your colleagues think about and track? And if not, why not? Share your thoughts in the comments section below.

To learn more about the importance of donor retention and why it's a critical metric for your nonprofit, check out our Sustainable Nonprofit archive, where you'll find any number of articles on the topic — and lots of material on other topics of interest!

Millennial vs. Boomer Strategies: Time to Move On?

April 17, 2017

Millennial-v-boomerIf you've ever talked to or heard from a consultant about how your organization can and should reach younger donors, I'd almost guarantee you were told something like, "Wait till they turn seventy-five," or, "Your young donors are fifty-five."

But is that right? Should you only focus your fundraising efforts on Silents and boomers? And is a millennial-focused strategy so bad?

Let's take a closer look.

No doubt about it, a millennial-focused fundraising strategy can be a challenge. (That's not an insult; it's supported by data.)

Then why would an organization even consider such a strategy? Typically, millennial-focused strategies are driven by two factors:

Media-driven generational comparisons. The media love to compare millennials and younger cohorts to their elders, especially boomers. But guess what? That's not a new storyline. The Silent Generation was compared to their parents, the so-called Greatest Generation; boomers were compared to their parents, the Silents; and Gen X-ers were compared to boomers. How long will it be before millennials are compared to the so-called centennials? The important thing for nonprofit organizations is to figure out ways to reach the rising generation as earlier generations move through and out of their peak giving years.

Board-driven pressure. Board members — older ones, especially — are beginning to notice that many of the prospective donors they see at fundraising events, industry meetings, and organizational activities don’t necessarily look like them. It's to be expected that older donors will continue to provide a significant amount of your organization's revenue for the foreseeable future. But Silent and boomer board members know they aren't getting any younger and, combined with all the media coverage of millennials, they are becoming increasingly interested in persuading leadership to shift some of their fundraising focus to younger generations.

Now, if you are an organizational leader, there isn't much you can do to control, or even shape, the media's obsession with generational comparisons. But you certainly can do something in response to pressure from your board — and I'm not talking about issuing a statement like, "We have lots of younger donors age fifty-five and over."

Continue reading »

Weekend Link Roundup (March 25-26, 2017)

March 26, 2017

David_rockefeller_photo_jim_smeal_wireimage_getty_images_115356418_profileOur weekly roundup of noteworthy items from and about the social sector. For more links to great content, follow us on Twitter at @pndblog....

Arts and Culture

The Metropolitan Museum of Art on Manhattan's Upper East Side is one of the great cultural institutions of the world. But is it a great cultural institution in decline? In Vanity Fair, William D. Cohan looks at the New York Times article and ensuing circumstances that led to the resignation of the museum's director, 54-year-old one-time wunderkind Thomas Campbell.

Climate Change

The nation's leading climate change activist is a former hedge fund manager you've probably never heard of. Wired's Nick Stockton talks to Tom Steyer, the California billionaire who is trying to save the planet.

Education

Citing new research which finds that the skills required to succeed professionally are the same as those required to succeed in K-12 education, Laszlo Bock, a member of the Aspen Institute’s National Commission on Social, Emotional, and Academic Development, suggests that the best place to invest scarce education reform dollars might just be where the overlap between the two is most clear.

Fundraising

Like many people, I'm a student of cognitive biases. So I was pleased to come across this post by John Haydon detailing five cognitive biases that can be leveraged to improve the success of your next fundraising campaign.

Continue reading »

Weekend Link Roundup (March 4-5, 2017)

March 06, 2017

No_noiseOur weekly roundup of noteworthy items from and about the social sector. For more links to great content, follow us on Twitter at @pndblog....

Arts and Culture

"The right of artists and journalists to tweak the nose of power, to challenge what we believe, to criticize those in high places, to hold accountable people who otherwise might anoint themselves kings, cannot be abridged because we find it at times uncomfortable," writes Heinz Endowments president Grant Oliphant on the foundation's Point blog. And the "very real possibility that the tiny levels of federal spending for the NEA, NEH and CPB will be eliminated has...obviously nothing to do with balancing budgets or fiscal prudence. It is an attack, pure and simple, on independent and potentially critical voices. It is an expression of disdain for the magical ability of art and journalism to knit our country and its people back together again, and of cowardly antipathy toward those who dare speak unpleasant truths to power...."

Civil Society

Citing efforts to repeal the Johnson Amendment, proposed budget cuts to the IRS, pending anti-protest bills in at least sixteen states, the renewed drive to kill net neutrality, and other developments, Lucy Bernholz argues in a post on her Philanthropy 2173 that "[c]ivil society in the U.S. is being deliberately undermined" and that, just like current attacks on the press, these efforts "are both deliberate and purpose-built."

Education

In this Comcast Newsmaker video (running time, 5:09), Kresge Foundation president Rip Rapson discusses the drivers behind the foundation's early childhood work in Detroit.

Fundraising

Looking to hire a fundraising consultant? Consultant Aly Sterling has put together a nice presentation with a dozen "essential" tips for you to consider and keep in mind.

Giving

The folks at @Pay have the answers to your questions about online giving platforms.

Continue reading »

Do Bots Have a Role in Social Change?

February 23, 2017

ChatBotsIt's not every day you find yourself talking about sex with a chatbot named CiCi. But that's exactly the situation I found myself in a couple of weeks ago.

Chris Eigner, CEO of the digital product agency Epsilon Eight and the engineer behind CiCi, had asked me to test out the sex education bot before he released it publicly. While I'm usually an eager user of technologies in beta, I found myself feeling sheepish about talking to a bot about sex. So I decided to outsource the task to a friend, who had me ask CiCi a question about condoms. The bot's response was both mature and relevant: "There is nothing wrong with having sex so long as you are mature enough to handle the responsibilities and consequences."

Feeling like we were off to a good start, I decided to tell CiCi that I was "asking for a friend," just as one might in a conversation with a real person. CiCi's response was sweet: "You can't put a price on true friendship."

What may sound like a simple exchange was actually a remarkable experience. CiCi was capable of being simultaneously educational and personable. Interactions like this — casual, informative, bot-driven — increasingly will be part of our lives, and we should be careful not to underestimate how significant this development is likely to be for the future of social change efforts.

Despite calls for the sector to be more innovative, our field is a late adopter of new technologies. The ascendancy of bots represents a real opportunity for us to do better. Rather than delaying adoption, we can and should begin developing and using these tools at the same time as — not after — the usual early adopters.

But what does it mean to adopt chatbots as a tool for creating social change? And how can social change organizations use them to advance their cause in a time of political turmoil and resource constraints? Let's look at four valuable applications:

Fundraising growth. Interaction and automation are essential to scaling your fundraising efforts, and chatbots can take those efforts to a new level. charity: water has already launched a chatbot that allows supporters to engage with and donate to the organization via Facebook Messenger. Don't be surprised to see, in the not-too-distant future, other organizations scale their fundraising rapidly with one-click giving that enables anyone to donate to an organization like GLAAD simply by sending a rainbow emoji.

Continue reading »

Weekend Link Roundup (February 11-12, 2017)

February 12, 2017

Abraham_Lincoln_O-77_matte_collodion_printOur weekly roundup of noteworthy items from and about the social sector. For more links to great content, follow us on Twitter at @pndblog....

Fundraising

If you believe measurement is key to the success of your fundraising program, writes HuffPo contributor Brady Josephson, then you really need to pay attention to these four metrics.

Giving

Did you know actor Kevin Bacon is the brains behind a website that links other celebrities to people and grassroots organizations doing good work. Inc.'s John Botinott has the story.

"Even after we've chosen our cause, a mere 3 percent of us base our gifts on the relative efficacy of nonprofit groups [working to address] that...cause." In a Q&A with Grid's Heather Shayne Blakeslee, ethicist Peter Singer (The Most Good You Can Do: How Effective Altruism Is Changing Ideas About Living Ethically) explains how we can do better.

Immigration

"Many in our region agree that parts of the immigration system must be improved to make the country more secure. But closing our borders to the terrorized in the name of preventing terror seems a step backward," writes Pittsburgh Foundation president Maxwell King. "And any policy that attempts to punish immigrants that are already part of the fabric of our society seems needlessly harsh. The vast majority of Americans want an immigration policy that effectively controls illegal immigration, but also allows for the appropriate levels of annual legal immigration that serve the needs of communities across the nation." We couldn't agree more.

In an essay in The Atlantic, David Blight, a professor of history at Yale University, suggests that "[o]ne place to begin to understand our long history with the controversies over immigration" is with Frederick Douglass, the most important African-American leader of the nineteenth century and "for nine years a fugitive slave everywhere he trod."

In a strong statement posted on the foundation's blog, San Francisco Foundation CEO Fred Blackwell pledges the foundation's support to immigrants and their families in the Bay Area, to constituencies targeted by Islamophobes, to grantees and nonprofit organizations on the front lines of the immigration battles to come, to faith leaders working to build bridges to and between immigrant communities, and to donors committed to just and fair inclusion for all residents of the Bay Area.

Continue reading »

Reluctant Rolodex Syndrome

February 08, 2017

Rolodex-67236How long has it been since you — or anybody you know, for that matter — used a Rolodex for anything other than to keep loose papers from sliding off the desk? And yet "Rolodex" continues to be one of the most widely used terms among development officers and fundraising consultants — not to mention one of the most anxiety-inducing words in the English language for nonprofit board members and major donors. How could it be that mere mention of a once-critical but today ignored office product — as in, “Can I count on you to open your Rolodex?”— can create both optimism and terror in the hearts of development professionals?

I kid, but most everybody reading this knows exactly what I mean. To the development professional, an organization’s most powerful fundraising asset is its pool of "true believers" — committed friends, board members, donors, and funding partners who are already convinced that the nonprofit’s mission, programs, and effectiveness are worthy of generous support. In a game where getting through the door is 90 percent of the challenge, common sense tells us that an introductory call from a friend will almost always be more effective than a cold call. Think of it this way: how many basketball players will launch a half-court shot when the defense has left the lane wide open for a layup? (Not you, Warriors fans.)

At the same time, many of us understand that our true believers aren't always eager to share the good word about an organization with others or are willing to go out of their way to extend an invitation to their friends and business associates to support — with their time, money, or both — a cause close to someone else’s heart.

Why is it that true believers are so often reluctant to share philanthropic good news with their friends and associates? And what can we, as development professionals, do to reduce their level of anxiety and nudge our board members and donors into opening their Rolodexes a little more readily?

With your indulgence, let me introduce you to a theory I call the Three Big Fears of Major Donors and Board Members — a theory that, in my opinion, goes a long way toward explaining what I call Reluctant Rolodex Syndrome.

Fear #1: The Fear of Being Asked to Solicit Money

It never ceases to amaze me how many people who routinely pitch multi-million-dollar investments to acquaintances or friends break out in a cold sweat when they’re asked to solicit those same acquaintances and friends for a $25,000 gift in support of remodeling a local homeless shelter, providing job training to displaced workers, or some other equally worthwhile cause. Shouldn"t it be the other way around? Shouldn't it be easier — much easier — to ask someone for an investment that benefits others in need than to ask them for an investment from which you and your partners personally hope to profit? Go figure.

Continue reading »

Most Popular PhilanTopic Posts in 2016

December 30, 2016

So it ends, not with a bang but a whimper. Depending on whom you speak to, 2016 was a train wreck, a dumpster fire, a sure sign of the apocalypse, and just plain weird. If it was a year in which too many beloved cultural icons left us, it was also an annus horribilis for progressives, who will have to work twice as hard in the new year (and beyond) to preserve important policy gains achieved over the last eight years and limit the harm caused by a Trump administration and a Republican-controlled Congress.

But while our attention often was focused elsewhere, many of you were taking care of business and digging deep into the PhilanTopic archives for tools and ideas you could use — today and in the weeks and months to come. So, without further preamble, here are the ten posts you "voted" as your favorites in 2016. Enjoy. Happy New Year. And don't forget to check back next week, as we return to the office tanned, rested, and ready to fight the good fight.

What have you read/watched/heard lately that got your attention, made you think, or gave you a reason to feel hopeful? Feel free to share with our readers in the comments section below. Or drop us a line at mfn@foundationcenter.org.

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