5 Fundraising Focus Sharpeners: Continuing the Conversation—A Guest Post by Roxie Jerde

What a pleasure it was to see representatives from so many local nonprofit agencies at the May AFP meeting. I enjoyed the opportunity to share some of what I’ve learned about donors in my time at the Greater Kansas City Community Foundation and now at my new home here at the Community Foundation of Sarasota County. Thank you for welcoming me with such warmth and enthusiasm.


As a follow up to our conversation, I wanted to pose a few thoughts that may help guide you in building and sustaining funding for your nonprofit’s mission. Consider using these questions as a reference in your evolving development plan, or feel free to post your thoughts and comments right here on the AFP blog:

1. Do our development efforts align with the breakdown of the $303.75 billion in charitable giving? More than 80% of all charitable giving comes from individual donors and bequests, and this is where the lion’s share of your time should be focused.
2. Is our organization addressing what high net worth households—representing 2/3 of all individual giving—want in charitable giving? They need to believe their gift will make a difference and that your organization is efficient in its use of donations. Being over-solicited is a leading reason high net worth households stop giving. 
3. If/ when special events are part of our development plan, are we capitalizing on this time to cultivate major gift prospects and truly convey the purpose and impact of our mission? Following up with your guests, using board members as ambassadors at your event and driving your mission home with a mix of compelling stories and facts are integral.
4. Do we know each of our donor’s motivations for giving and are we using this to build our relationship with them? Hope Neighbor, Money for Good researcher, classifies the motivations for giving into six categories—repayer, seeking to “give back” to a cause close to the heart; casual giver, giving to well-known nonprofits because it’s simple; high impact, supporting nonprofits the donor believes are doing the most good; faith based, giving to support religious institutions and/or beliefs; see the difference, giving to small and/or local organizations where the donor feels they are making a difference; and personal ties, giving when the donor has connections to the organization’s leaders.
5. Are you a “Double E”—effective and efficient—nonprofit? Answer this question by taking a look at your program effectiveness, operating budget, financial transparency and board engagement. Consider your administrative and fundraising expenses—ideally less than 25% of your budget—and the retention rate of senior leadership, which is considered favorable if it’s more than 75%.

I’m impressed with the caliber of professionals in the Southwest Florida chapter of AFP and know that you have strong resources right in front of you. You’ll also find continuing support for professional development and knowledge through the Community Foundation of Sarasota County’s Nonprofit Resource Center and online in national studies, blogs and philanthropic publications.

Here are a few of my favorites we talked about at the meeting:

• Bank of America 2010 Study of High Net Worth Philanthropy 
• Hope Consulting’s Money for Good Report, May 2010 
• Sean Stannard-Stockton’s Tactical Philanthropy Blog

I’ll look forward to seeing you out in the community and onsite at your nonprofit over the coming months and year.

 

 

 

Roxie Jerde became the president and CEO of the Community Foundation of Sarasota County on March 1, 2011. Learn more online at www.CFSarasota.org. 

The Biggest Mistake: Jerry Koontz Talks About Fundraising

In a new series of blog posts, we're asking seasoned nonprofit leaders in our area to share what they view as "The Biggest Mistake" when it comes to raising money. To kick it off, we've posted an insightful perspective from Jerry Koontz, President of United Way of Manatee County:

Fundraising is much more an Art than it is a Science, and that makes it somewhat of a challenge to identify which are the biggest mistakes one can make that impact being successful. However, I welcome this opportunity to share what I consider to be two mistakes that merit your attention.

Assuming all donors are alike.  No two donors are exactly alike. For example, they have different priorities. What is an important Cause to one, might not matter to another. Most want to be recognized and thanked for their contributions, while some wish to remain anonymous. Almost without exception, donors want to know what was accomplished with their contribution. So, it is critical to do as much as you possibly can to know your donor, and respond accordingly.

Not asking/not making a good case for support. In fundraising, it is commonly accepted that the primary reason for not contributing is not being asked. Ask yourself, how often have you contributed to something without being solicited? So, do the Ask. While I believe that most people have what I call a Charitable Giving Need, they are often not sure how to best satisfy that need. Two things are important: a Cause that is worthy of their support, and the assurance that a very high percentage of their gift will go to that Cause and not be diminished by excessive administrative costs. If you don’t make a good Case for Giving, and can’t demonstrate low overhead, you most likely will not get the gift.

I will close with a true story that supports the importance of knowing your donor. An executive of a non-profit was calling on a prospective donor hoping to get a sizable contribution. The prospect asked, “How much do you want?”, to which the executive cautiously replied “$10,000.” The prospect asked, “Is that all?” At the end of the discussion, the prospect pledged $1 million.

Many thanks to Jerry for taking time out of his sharing his experiences with us. Check back soon for the next post in The Biggest Mistake series.

Would you like to be a guest blogger for The Biggest Mistake series? Let us know!

AFP Peers Coming Together: New Mentorship Program!

There's good news for AFP members who want to boost their professional development: a new FREE mentoring program is available to you.  This is your chance to receive personalized feedback, direction and nurturing to build your career and become a more effective fundraiser.

If you have 1+ years of experience in fundraising, let's talk.

Here's how it works:

• You will identify a project or 1-3 specific goals you hope to accomplish during the year. Where do you want to be in your career in 2 years? What specifically do you need to master to serve your institution more effectively?
• AFP will match mentees with mentors by considering appropriate relative levels between mentor and mentee, geography, subject matter to be worked on and matching people from organizations that are mutually illuminating while not being competitive.
• Mentor/mentees meet at least monthly and probably connect more often via phone and/or email.  Communication is confidential and structured enough to ensure progress but open enough to foster communication and evolve as needed.

Are you a senior development professional? We need you as a mentor!  Mentors should have 5+ years in development, a desire to help the next generation of fundraisers, and a willingness to focus on the mentees goals and needs and help him/her achieve them. This is an opportunity to share ones knowledge and nurture the next generation of nonprofit leaders.

For more information and to get involved as a mentor or as a mentee, contact Mary Saionz at Mary-Saionz@smh.com or (941) 917-1286.

Analytical Skills vs. People Skills In Fundraising

What are the "new" skills fundraising professionals need to survive in the high-pressure, high-expectation environment of today's nonprofit world?

We're grateful for AFP's emphasis on ethics and professional development. The organization has done so much to elevate awareness of fundraising as a profession, not as an activity. And as such, we know our own skills are constantly growing and evolving--they must.

Holly Hall wrote a piece in the Chronicle of Philanthropy (April 4, 2010) discussing analytical knowledge, entrepreneurial skills and cross-cultural knowledge as hallmarks of the modern fundraiser.

"People still give to people; they don't give to data," Kimberly Hawkins said in her letter to the Chronicle of Philanthropy in response to this recent article.

Hawkins argued that all of the skills Hall referred to are needed in the development department but requiring too much of a single person may seriously impact their effectiveness at anything. She sites burnout and turnover as results of these unrealistic expectations.

Read her letter, Jacks of All Trades May be Masters of None, and let us know what you think. How much is too much?

Millennial Donors Want Engagement on Facebook, Right? Think Again.

Maybe. But if you want to really engage them, they put a very high value on face to face time.


There's a new study fresh off the press that every AFP member should read. The 2010 Millennial Donor Study, conducted by Achieve and Johnson Grossnickle Associates (JGA), reports findings from more than 2,200 people between the ages of 20 and 40 across the U.S. about their giving habits and engagement preferences. 75% of survey participants fell into that mysterious age group of high powered texters and savvy multi-media users, the millennial generation--otherwise known as Generation Y.

Basically, the study found that when Millennials get involved with a nonprofit, in addition to giving financially, they want:

• To affect change
• Create direction
• Access to the organization’s leadership

Woah! Are we ready for those things? We better be, if we want to influence and attract the next generation of donors. Although they may not have a lot of money to give now, they will. And they're growing up fast, getting into the stream of the workplace and influence many others.
Here's some of what stood out to me:

• 91% of Millennial donors are at least somewhat likely to respond to a face-to-face request for money from a nonprofit, with 27% being highly likely to respond. Only 8% are highly likely to respond to an e-mail request. YET, E-mail is Millennial donors’ most preferred communication method, with 93% of respondents favoring it for receiving information. Facebook comes in at only 23.8%.

So Millenials prefer e-mail communication, but only 8% are likely to respond to an e-mail request? This will take some consideration from our nonprofits. Any thoughts?

• 71.9% of Millennial donors don’t need to volunteer for an organization before they donate.

That was a shocker for me!

• 75% of Millennial donors are at least somewhat interested in working closely with organization leadership to define the direction of the organization or helping the board create solutions to challenges. Maybe not a huge surprise, but how do we engage them? Community Youth Development is a good local source.

So what are factors that influence giving?

• Millennial donors say they would be likely or highly likely to give if asked by a family member (74.6%) or a friend (62.8 %). Only 37.8% would be likely or highly likely to give is asked by a coworker. Hmmmm....interesting. So we still need to keep their parents in mind but ALSO remember to ask our current donors to share their charitable passions and organizations with their kids. Big one.

There are lots of other jewels in this report. Hope you'll check it out and post your comments on the AFP blog.

What are your thoughts? Any experiences with this at your nonprofit?

-Susie Bowie

How to Justify Your AFP Membership Fee

Here are ten ways that AFP provides value to nonprofit organizations. As an AFP member, the value of any one of them far exceeds the cost of an individual’s membership dues. Together they make a smashing investment.

1. What is Philanthropy? Many people wonder if it has something to do with stamp collecting. AFP activities help to deepen the community’s understanding of the philanthropic process. Why do people give? How do nonprofit organizations receive the resources they need to accomplish their missions? Why do they give to specific organizations? The more they know, the more they give.

2. Professional and True. AFP conveys fundraising as professional process that helps nonprofits to obtain income to achieve their missions. A surprising percent of the population believe that nonprofits raise all the money they need by selling candy bars in front of grocery stores on Saturday mornings. The more the community understands nonprofit income sources and how they can participate, the better for the whole nonprofit community. AFP leads in the growth of this understanding and in professionalizing fundraising.

3. Trust Me: Fundraising is built on public trust. AFP provides a Code of Ethics that enhances trust. In addition to candy sales, people also believe that fundraising is the telephone call that interrupts their dinner. The caller implies he is with law enforcement. However, the people holding their forks suspect he’s a hired gun for a for-profit that will receive most of the money raised. The code of ethics supports the elimination of unethical fundraising.

4. Pondering Challenging Questions. Through meetings, telephone seminars, conferences and literature, AFP members ask and confront ethical questions –in advance. These questions explore how money is raised and the appropriate behavior of donors and nonprofits. The right ethical answers in your organization come from living with these questions and answers frequently. AFP helps nonprofit professionals to examine these important issues.

5. In-depth Knowledge. AFP provides you access to information when you need it. For example, when you have a crisis (and if your nonprofit eventually will) AFP provides access to multiple resources, including a library, about how to respond, how to strengthen your organization and how to help your donors to understand the situation.

6. Ideas. Participating actively in AFP events will give you new fundraising ideas to adapt and try at your organization. If you regularly attend meetings and read publications all year long, this is guaranteed.

7. Rights. The AFP Donor’s Bill of Right provides guidelines to fundraisers on how to build deeper and better relationships with donors. The Donor’s Bill of Rights helps nonprofit professionals. It also helps your donors to understand their relationship to your organization and deepens the respect they hold for each other.

8. On-task. Regular AFP activities help the fundraising professional to stay focused on relationships. For almost all of us, it is easier to stay in the office and organize files and databases than take the risk and effort to establish new and deepen existing friendships. The monthly meetings remind us, inspire us and fortify us to return to the field to meet with the community and potential donors.

9. Networking. One of the best benefits of membership, cited by members, are the networking opportunities. You meet people and have a chance to interact with others who have experienced or are going through similar fundraising challenges.


10. Return On Investment. In a recent newsletter for the Southwest Florida AFP chapter, Julia Steele wrote, “This year marks AFP's 50th Anniversary, and the Association of Fundraising Professionals, an international organization with 207 chapters and 30,000 members worldwide, continues to be the standard-bearer of professionalism in fundraising. Established in 1988, the Southwest Florida chapter represents more than 130 diverse professionals in a four county area who share a commitment to promote philanthropy through ethical and effective fundraising.”

How can you justify your membership to AFP? Consider the reasons above and add you own. Then, for the final justification do the math. AFP membership dues cost less than $300 –and you plan to raise how many thousands or millions this year? Yes, it cost money to make money. The returns for APF membership, if you participate fully, will be returned to your organization many times over.


Many thanks to Karen Eber Davis for her thoughtful expression of the great value and professionalism provided with AFP. We hope you'll renew your membership, join for the first time or help spread the word about what we do to others in our field.

3 Elements of Effective Direct Mail Appeals

Today, too many direct mailers…and especially nonprofits…are in the “broadcast” industry when in pursuit of donor dollars. They craft a message and then distribute it, often through the most inexpensive means possible (i.e. – newsletters, copied form letters, email blasts), waiting anxiously to see what the postman brings each day.

We have seen an uptick in this “low touch” communication over the last year as the economy tightened. I would suggest that there is much that can be done, at a reasonable cost per dollar raised, to help connect with donors:

1. Personalize everything…the more the better. In the process, provide recognition where it is due. Who among us enjoys receiving “Dear Friend” letters?
2. Incorporate dialogue in everything you do when you mail. Don’t just send a thank you letter to a donor…send a thank you and a survey with a postage paid envelope. Make sure the survey addresses the recipient personally and not generically. Create opportunities to dialogue, and then respond to each one that you receive back.
3. Develop intelligent asks. Donors find formulas insulting (you gave $30 last year, so let’s ask for $37.50 this year…) and without intelligence based research, donor asks based upon historical giving are a shot in the dark in a weakened economy.
   
   My favorite story comes from one of the Florida universities where a west coast donor had given $500 each year for five years. During a trip to California, the VP of Development scheduled a meeting with the donor after a wealth analysis showed that the donor had the capacity and the propensity to give much more. When asked why the donor chose to give $500 each year, his reply was, “That’s all you asked for…”
   
   In the end, the donor made a multi-million dollar commitment to the University. Effective asks are vitally important, as we are in the midst of a period where donor retention is perhaps more important than donor expansion.

-Brian Weiner, Principal, One to One Group

   Stay tuned for part 2 of the direct mail discussion...and don't forget to leave your comments for Brian!

Rising to the Challenge

Welcome! And please join me in launching this new forum for SW Florida fundraising professionals – a place to exchange ideas, voice concerns, vent a little and praise a lot, I hope.

Could there be a better time to share what’s working, here and now? You know the challenges we’re facing…

• Grants are cut in half, or worse,
• Events and appeals are “sucking wind,” in the memorable phrase of one development chairman I know,
• Boards are worried,
• Donors are scared,
• Needs are greater than ever.

How to respond? Consultant James Gelatt, writing earlier this year in Contributions Magazine, has a message that resonates with all of us: this is the time for us to focus LESS on TACTICS to survive today and MORE on STRATEGIES to succeed in the future.* We can’t just cut programs and staff, lower expectations and hunker down, hoping to get through this. We need to keep our donors excited about the incredibly important work we are doing, take a few risks, build new business models, and get ready to come out of the gate strong as the economy turns around.

What does that mean to you? Here’s what I’ve noticed about our most successful colleagues:
• They are fundraising not because it’s a job, but because they truly believe they are making their world a better place.
• They are ready to retire “same-old, same-old” practices and get creative.
• They are focusing like a laser beam on bang for the buck: maximizing the return of their organization’s investment in fundraising.
• They know how to help their top managers lead and their boards raise money.
• They don’t solicit donors. Donors love to give. They help donors give.
• They are the most optimistic people I’ve ever met.
Does that describe you? If not, you might be a lot happier in another line of work. On the other hand, doesn’t that describe our friend and colleague Susan Terry perfectly? Rest in peace.


Laura Breeze, CFRE
Advancement Director
Education Foundation of Sarasota County