16 Provocative Ideas That Will Raise More Money

Raising money is a 24-7 job for the nonprofit community.  Just as business must always be selling, we too cannot rest on our laurels, we have to cinch the deal.  Gail Perry (Gail Perry Associates, Fired-Up Fundraising) shares what she learned at the Association of Fundraising Professionals.  Very provacative ideas.  I really like the monthly donations.  For little more than one pizza delivery per month you can offer donors the ability to easily support your nonprofit.  Bunnie

 

16 Provocative Ideas That Will Raise More Money

by Gail Perry, Fired-Up Fundraising (March 2011)

I am just back from an intense 4 days at the AFP International Fundraising Conference.

And I listened to some of fundraising’s most brilliant – and provocative -  leaders.  Here’s what’s on the mind of some of our smartest thinkers.

Do consider these ideas NOW. They may go against your typical practices.  But I promise, absolutely, that you will raise more money if you implement them.

 1. Go All Out for Monthly Donors On Your Home Page.

Monthly donors are worth gold to you. On average, they will stay for 10 YEARS. Put the ask right on your home page.  The ideal monthly appeal ties a monthly ask to something specific. “$31 a month will do xxxx.”  Harvey McKinnon

 2. Focus on Fewer – Not More Donors.

You don’t make more money by having more donors. The more donors you accumulate – the less profitable your fundraising program. (Penelope Burk)

 3. Encourage Restricted Giving.

Restricted asks raise more money. Period.  We are holding our philanthropy back, because we are asking for unrestricted rather than restricted. (Penelope Burk)

4.  Get Rid of the Words.

Put your whole message in the first 150 words. The rest of your copy just backs it up.  (Tom Ahern)

5.  Get Rid of “Unmet Needs,” “Programs,” “Services.”

Write like you are an outsider to your organization. Get rid of the boring, obtuse jargon. Jargon is a flame retardant! (Tom Ahern)

6.  Make Your Case Like a Series of Ads.

Add photos while you get rid of words. Create your case or your fundraising materials with the fewest words and the best photos. (Tom Ahern)

 7.  Hire More Fundraisers.

Saying, “We can’t hire any more staff.” is stupid. Each additional fundraising staffer upticks gross fundraising revenue. Period. (Penelope Burk)

 8.  Give Your Fundraising Staff Raises.

Money is the #1 reason fundraising staff leaves. Investing in retention of staff will make you money. Retention boosts profit.  Extend young staff from 18 months to 30 months saves you money. (Burk)

 9. Get Rid of the Raise Money Now Mindset.

31% of fundraisers who are planning to leave their jobs will leave because of  an unrealistic “old school” culture of fundraising: ie, “you HAVE to bring in the $ NOW.”  How much more money could you raise if you took a long term, strategic approach? (Burk)

10. You Must Give Your Staff Management Training.

Success in business is 95% in the management of other people. But we cut staff training first whenever there is a shortfall. Training is essential. There’s not enough management training in nonprofits.(Burk)

 11. Get Rid of Lousy Board Members Now.

Allowing a lousy, nonperforming board member to serve out their term is, two words: “Chicken S***”  (Simone Joyaux)

 12. Be Blatant.

Try this: “With your help, all these amazing things happened. And without your help, they won’t.”  You‘re selling the impact of the donor’s gift. (Tom Ahern)

 13. Stop Talking About The Money You Need.

You choose:

 A case is about the opportunity you‘re putting in front of the donor.

OR

A case is about your organization‘s need for cash. (Ahern)

14. Become a Shrink.

When dealing with volunteers, you are a psychologist not a fundraiser!  (Laura Fredricks)

15. Don’t Believe Your Prospect, When. . .

If he says, “I’m just a plain ole country boy,” it really means he is a wealthy prospect! (Eli Jordfald)

16. Close Down Some Programs.

Leaders will close or giveaway a program or activity that is no longer profitable and has little impact.

So were these ideas provocative? Would they challenge your status quo?

 Remember fundraising is changing. Donors are changing.  Doing what you’ve always done the same old way will get you yesterday’s results.  Go for it! Change is good.

Contact Gail at Gail Perry Associates

18 Resolutions for the Small Nonprofit Organization in 2011

 A few years ago I stopped making New Year's resolutions.  I guess I finally had the realization that making a resolution at the beginning of the year and failing miserably at keeping it by February or March was not a good thing for my psyche.  So my solution was "if you don't make resolutions then you won't have any guilt when you fail at keeping them."  Mmmm.  That logic doesn't apply to the management of your nonprofit.  It is not only healthy but necessary to take time to really look at how you are managing your organization and your fundraising.  Pamela Grow always has great advice on grant writing and fundraising and her 18 Resolutions for the Small Nonprofit in 2011 can be implemented any time of the year.  Read, consider and "grow."  Bunnie

18 Resolutions for the Small Nonprofit Organization in 2011

by Pamela Grow

1. Resolve to master the art of persuasive copy-writing.  No no no, not your typical ‘non-profit speak,’ but persuasive copywriting.  Watch infomercials (I’m serious).  Take a creative writing course.  Read any one of Tom Ahern’s books.  As you read what you’ve written, ask yourself “would I care?”

2. Develop systems.  Within your systems, establish small daily or weekly habits – such as 30 minutes daily of foundation research or spending 30 minutes on the phone with donors.

3. Quit copying your peers.

4. Learn how to use email effectively.

5. Resolve to leave your comfort zone.   Before signing up for another AFP workshop, consider attending an email marketing seminar or even a Dale Carnegie training.

6. Establish the processes to build relationships with grant funders – just as you do your donors.  A declination is an opportunity for further communication.

7. Integrate your communications.  Online, direct mail, email, social media – it needs to be cohesive.

8. Via Tom Ahern:  “Be different. Be fun. Be authentic.”

9. There’s more to social media than updating your Facebook status or posting blast tweets on Twitter.  Learn how to use social media to engage.

10. Excel is not a database.  Lose it.  If you’re keeping your data in Excel, know your criteria for a database, evaluate three providers and select one.  Make sure that training and support are key components.

11. Spend money on training.  Yes, when I was a nonprofit employee, with one exception, none of my employers paid for any training.  Guess what?  I bought books and attended seminars on my own dime.  Invest in yourself.

12. Start a monthly giving program.  This one’s a no-brainer – need I say more?

13. Educate your board on fundraising.  This one doesn’t involve hiring a one-time ‘board trainer’ for your next retreat.  It involves developing a – dare I say fun? – culture of fundraising within your board.  One very simple way to start is by sharing a clip from the Movie Mondays series Top 10 Best Movies for Helping Board Members at the beginning of every board meeting.

14. Take a hula hoop to work.  When the stress gets to be too much incorporate a little joy and movement into your day.

15. Learn how to re-purpose content for different donor communications channels.

16. Communicate more.  Yes, I know that studies consistently show that donors are turned off by organizations who over-communicate or over-solicit.  Trust me, the small, community-based nonprofit organization rarely falls into that category.

17. Take charge and take responsibility.

18. Say thank you.  Again and again and again.  And again.  Create a stewardship system and put it in writing.

Count me in as one of those who makes last minute end of year gifts. I actually spend quite a bit of time thinking about it, who I will give to, why I give, etc. I am most interested in giving to organizations that do work I am interested in or work on issues I care about. However, even though I already know where my end of year donations are going, I am hoping my these organizations will make it simple for me.
 
Gail Perry of Gail Perry Associates lays out simple, easy steps you can use (and you can use them right away!) to make those last minute appeals and drive your fundraising up before the New Year. Read, get inspired and then get in there! Bunnie 

10 Things Your Last Minute Online Donors Want

by Gail Perry, Gail Perry Associates

Holiday giving is expected to be over $48 billion this year, and at least $6 billion will be online, based on a new study by Convio.

43% of donors will give via direct mail and 21% from online appeals.

And 40-60% of those online gifts will be made in  the last two days of the year.

Don’t forget that online donors are  wealthier, higher-dollar and younger donors.

Here’s what they are looking for:

1. They want to feel good about their gift.

Remember that your donor is making a personal, emotional statement with their gift. They are not shopping for hardware or bath towels.
Talk a lot about the good they are doing. Put evocative photos on your donation page.
Make your post-gift finish page warm and fuzzy. Send a lovely thank you note that touches their heart.

2. They want to feel connected to the cause.

In the Convio study, 74% of people said they responded most to emotional solicitations that  provide info on the people, animals or places in need of their  assistance.
Get yourself and your organization out of the way.
Don’t ask for your organization, instead ask donors to help the animals, trees, kids, sick  people, students, artists, whoever you are serving and helping.
As I like to say, “You gotta play that violin” and make the emotions stir!

3.  They want to know where the gift is going.

They want to know exactly what their gift is accomplishing – and the impact it will have. Lay it out clearly and don’t mess around.
Recap your outcomes and accomplishments for the year, and let them know what’s next.
Be specific.

4.  They want   holiday gifts that will support your cause.

Help your donors make gifts,  and offer easy shopping for nontraditional gifts. Try these opportunities:

• “Last minute holiday gifts” – promote gift memberships that your donors can give to others.  The World Wildlife Fund sends a “Last Minute Ways to Say Happy Holidays” e-mail that suggests adopting an animal on someone’s behalf online.

• “Avoid the crowds and shop at home” – buy from our shop on line and ship to those on your gift lists.

• “Holiday e-cards for your family and friends” – a green alternative that can      promote your nonprofit AND carry a donation to your cause. 

 

5.  They want to be reminded.

It’s ok to remind your loyal donors about the need and how they can help.
They’re busy, busy, busy.  And repeating your appeal is always more  powerful and successful than a single ask that goes out as a stand-alone  effort.
Check out this sample year-end email campaign that had three messages going out the last week of the year:

• December 23: a “holiday support” email
• December 29: an email emphasizing tax deductible giving opportunities
• December 31: a final “last chance to donate” email

 

6. They want choices.

And all donors have a different vision of how they want to help you  and  how they want to give.
So be sure to offer them a variety of ways  to  support you and different giving opportunities all tied to specific results your organization achieves.

7.  They want an uncomplicated check out.

Remember that a majority of would-be donors never make it through the  process to complete their gifts. Some stats show that 98% of visitors to  an organization’s donate page do not complete their gift.
Make your donate page seamless and easy to whiz through.
Check out this list of the 11 Deadly Sins of Donate Page Design from Seachangestrategies.com.  Be sure you avoid these common mistakes in nonprofit donate pages:

• Cluttered pages
• Unintuitive layouts
• Unclear directions
• Too long, complex forms
• Unnecessary fields
• No address or phone number
• Error messages are confusing

8.  They want back up data on your results.

Be sure your web site is up to date and conveys credibility.
Remember that over 65% of ALL DONORS will probably check out your web site before they write a check or make a gift, according to Kivy Leroux Miller of nonprofitmarketingguide.com.
Here’s my list of the Top 10 Things donors want from your website. And be absolutely sure that your call to action is clear, concise and directive!

9.  They want to donate quickly.

Make it easy for impatient online donors who are in a hurry.  If you make it difficult for them, they’ll be gone – probably to another nonprofit’s site.
Make your home page on your site optimized for donations. Put an  extra large “donate now” button right on that page. (Yes, size does matter!)
And try adding a photo on the inside of the button so that it has a human face.  (Dogs and children are wonderful.)
Check out Network for Good’s three tips for the best donate button: make it big; put it above the fold, and create a simple, easy-to-use contribution form.

10. They want it simple.

Since they are busy, busy, busy, don’t over complicate your site or the ask. People visiting your site at year-end are there for one purpose only – to give.
Put the ask right up front and make it easy for them.
These strategies will help you bring in lots and lots of online gifts. Before you know it you’ll be zooming past your fundraising goals for year-end!
Happy prospecting and may generous donors flood in to your site and your cause!
Please leave a comment and tell me what you think

Contact Gail at Gail Perry Associates

Top 10 Ways to Screw Up Your End of Year Fundraising Campaign

It's mid-October, I hope you all have thought about what your end of year fundraising campaign is going to look like.  Remember, here in the United States, tax-payers can take a deduction for charitable giving, and often send larger gifts in December in order to get those deductions.  Gail Perry offers excellent advice on what you need to avoid when sending end of year appeals.  My favorite?  Not including the return envelope!  I can't tell you how many organizations forget to do that!  You must make it as easy as possible to donate to your organization, so please, include the return envelope.  Bunnie

Top 10 Ways to Screw Up Your End of Year Fundraising Campaign
by Gail Perry, President of Gail Perry & Associates

There’s nothing more important this fall than your year-end fundraising effort. The next three months is the time when many charities receive most of their entire annual inflow of contributions.

And there is so much at stake right now. This year, more than ever, you’ve got to engage donors in your opportunity and ask them to join you – in a smart, effective and compelling way.

This article updates a list I created last fall. I’ve added more data and reminders for you here.

Please don’t make these mistakes!

Here’s my top 10 list of ways to sabotage your year-end fundraising effort.

1. Send a letter that’s hard to read, with ponderous sentences, long paragraphs and no white space. This fails the “easy to read” test, which is the first hurdle for your reader, who is skimming your prose for the highlights only. Check out my list of 115 Ways to Raise More Money by Mail for guidelines on writing an effective letter.

2. Send a letter much like last year’s with last year’s messaging, no visuals, no metaphors, no stories. Your reader is unlikely to keep reading if it is not interesting. You are not writing an academic treatise; instead you are writing marketing copy. Forget what you learned in your writing courses and instead copy a magazine’s writing style.

3. Bury The Ask deep inside a paragraph at the end of a sentence. Your reader must be able to easily find out how much you are asking for and for what purpose. Make it plainly clear what you are asking for – and ask cheerfully!

4. Don’t include a reply envelope. You’d be surprised how many organizations leave out this VITAL component – you have to make it easy for people to give. This really can be the kiss of death!

5. Don’t update your web site. Studies show that donors – even those who give by writing a check and sending it in the mail – will most often check out your web site to research you before they give. And your website MUST look professional and up-to-date! And it must convey credibility and legitimacy.

6. Only send out one appeal letter. This is disaster for many campaigns. Studies show that one letter will typically get a 15% response – NOT enough to make your year-end goal. Your donors are too busy and need repeated reminders. And no, it is not tacky to keep reminding them!

7. Don’t do phone followup. Studies show that a followup phone call can possibly double your results.

8. Don’t do an email push to non-donors the last two days of December. Studies show that a majority of on-line donors give in December and most of them are on the last two days of December. NOW is the time to get your online donation process working smoothly.

9. Don’t send a PROMPT, warm, personal thank you immediately to your donors. And “warm, personal” does not mean “on behalf of the board of directors we thank you for blah blah” – this impersonal bunk doesn’t warm your donor’s heart. A warm thank you uses the words “we” and “you” and is conversational in tone – not institutional. Penelope Burk’s all time favorite thank you letter begins like this: “You must have heard the cheers in our halls when we received your generous pledge.”

10. Don’t have your board members call donors to thank them within 24 hours of the gift’s receipt. Penelope Burk’s landmark studies showed that when board members made this type of followup call, then subsequent gifts from the donors rose by 39%!

Avoid at all costs, these mistakes. Create a dynamite year-end campaign that brings in the urgently needed resources you need!

Leave me a comment and tell me what you think!

To see more great tips from Gail Perry and to contact her, go to http://www.gailperry.com/

Country's Largest Charity Evaluator Expands Analysis

The folks at Charity Navigator do incredible and important work by evaluating the stewardship of donor dollars.  Every nonprofit should follow their guidelines for what information to provide the public regarding the organization's management, structure, income, expenditures, etc.  Getting a good rating from Charity Navigator is important because it will assure your donors that you are responsibly and ethically using their money for good.  Bunnie

Country's Largest Charity Evaluator Expands Analysis

Charity Navigator's Enhanced Service Helps Donors Assess a Charity's Commitment to Accountability and Transparency

Donors will be in a better position to make informed giving choices now that Charity Navigator, America’s largest and most utilized charity evaluator, has expanded its analysis.

Since launching its service in 2002, Charity Navigator’s free financial evaluations --- which examine how a charity functions day to day and how well positioned it is to sustain its programs over time --- have changed the giving habits of the general public. But financial metrics are just the starting point in choosing a charity to support. Donors must also have access to information that considers a charity’s accountability and transparency practices and assesses its effectiveness and results. Starting this month, Charity Navigator is deepening its analysis by rolling out new metrics that examine the accountability and transparency component.

“Smart donors should require evidence of accountability and transparency from the charities they support,” said Ken Berger, President & CEO of Charity Navigator. “They should require this evidence because charities that are open about their performance and follow best practices in areas such as governance and donor privacy are less likely to engage in unethical or irresponsible activities and, as a result donations to such charities are a less risky investment.

“Charity Navigator was created with the goal of advancing a more responsive philanthropic marketplace, in which donors and the charities they support work in tandem to overcome our nation's most persistent challenges. We are thrilled to go beyond our financial ratings and take our analysis to the next level. By reviewing each charity’s commitment to accountability and transparency, we can help donors make even smarter giving choices.”

When examining the accountability and transparency of charities, Charity Navigator’s new methodology seeks to answer the following questions:

Does the charity follow ethical and best practices?

Does the charity make it easy for donors to find critical information about the organization?

Specifically, the methodology, which was developed in partnership with Charity Navigator’s staff, Board, Advisory Panel (http://www.charitynavigator.org/advisory), donors and nonprofit leaders, tracks the following:

1) A review of the charity’s website to determine if

Board members listed

Key staff listed

Audited financials and Form 990 included

Privacy policy posted

Inclusion of information about effectiveness and results

2) A review of the newly expanded Form 990 to determine if

The charity has made loan(s) to related parties

There has been a material diversion of assets

There are minutes for Board meetings

Copies of the Form 990 were provided to organization’s governing body

The charity has a conflict of interest policy

The charity has a whistleblower policy

The charity has a records retention policy

The charity disclosed its CEO’s name and salary

The charity has a process for determining CEO compensation

The Board is paid

The audited financials were prepared by independent accountant

An audit committee exists

As soon as the accountability and transparency data is gathered on a particular charity, it will be posted on its ratings page. However, no charity’s rating will be impacted by the results of this richer analysis until the data has been collected for all 5,500 charities in Charity Navigator’s database. For more information about Charity Navigator’s new Accountability / Transparency Methodology, please visit: www.charitynavigator.org/accountability. And to see a sample of a charity that has been reviewed for its accountability / transparency data, please visit: www.charitynavigator.org/accountability/list (more charities will display this data in August).

About Charity Navigator (http://www.charitynavigator.org/)


Charity Navigator is the largest charity evaluator in America and its website attracts more visitors than all other charity rating groups combined. The organization helps guide intelligent giving by evaluating the financial health of over 5,500 charities. Charity Navigator is a 501 (c)(3) organization which accepts no advertising or donations from the organizations it evaluates, ensuring unbiased evaluations. Charity Navigator, can be reached directly by telephone at (201) 818-1288, or by mail at 139 Harristown Road, Suite 201, Glen Rock, N.J., 07452.


Media Contact
Sandra Miniutti, Vice President, Marketing
(201) 884-1051
media@charitynavigator.org

Adapting to Social Media

I am not sure why this happens, but nonprofits tend to be late adapters.  I think it may be a matter of time and resources and having too little of each.  I can't imagine any nonprofit not having at least a Facebook page (it is free after all), but I know of many who do not.  Juan Munoz goes through five points regarding social media and gives examples of how social media helps turn interested prospects into donors.  Enjoy.  Bunnie

Adapting to Social Media
by Juan Munoz, CEO, Open Global Marketing

This article might look like repetitive for some of you, but there are many non-profits that have not adapted fully to the new social media boom. Here are five points to successfully convince your Executive Director (or you) about the benefits of using social media in your organization.

The non-profit world has been always reluctant to adapt new technologies. Sometimes they stick to proven techniques and are attached to their Grantors or Founders as a source of income. The new online landscape has changed andnonprofits are flocking to the social web, although mostly in the last two years. Nonprofit organizations that have embraced social media in a short period of time have see astonishing results. But still the masses of nonprofits act late.

Social media is beginning to transform nonprofits both in the way they work as well as their relationships with their donors.

Here are five points about how this is happening:

1. Building stronger relationships with donors and constantly updating them.

Over the past two years, one of the non-profits that we advise have been seeing an increase in their current donor list and have tripled their prospective donor list. The Roberto Clemente Health Clinic, an emergency and primary care clinic located in the south of Nicaragua created a blog to inform their prospective donors about their project while the current donors get a different and more personalize email about their semester performance. Now, the conversion rate using this technique is around 15% compared with 3% in previous years. Many people identify with the project but are not ready to donate immediately. Once you keep them informed they feel at ease to send their money for a good cause! Also we updated the website to make it more donor-friendly, creating different programs and different levels of donations. The website is called http://www.nicaclinic.org

2. Individuals & small groups are self-organizing around non-profit causes

Social media is enabling individuals to create, join, and grow groups around issues they care about outside of the direct control of a non-profit. Whether it is healthcare issues, minority women owned business or fundraising events activities, you can communicate easily by email or using a tweeter account. One example is the Maryland Hispanic Chamber of Commerce where we created a LINKEDIN profile as a group to advertise their events. They also have the regular newsletter and their website. We have created a PowerPoint presentation that teaches you the difference between Social Media and Search Engine Optimization.

Social software design is also helping accelerate this trend. Look no further than the Facebook Causes Birthday application that encourages an individual who is a member of a Cause to use their birthday as an excuse to raise money for a non-profit organization. DonorsChoose recently launched a similar feature called “Birthday Give Back,” with Stephen Colbert leading the charge. And keep an eye out for more social apps with a conscience that will offer even more creative ways for supporters to self-organize and take action around causes.

As non-profits begin to engage their own communities in these online conversations, they are able to reach more people than ever before, and use less effort doing so. 100 letters sent to donors might cost around $350 including the time of putting them together and stuffing envelopes, plus printing and shipping but anEmail campaign cost $0.02 cents per email on average.

3. Facilitating collaboration with international and national organizations.

The social web lets non-profit organizations connect and collaborate formally and informally with international organizations quickly and inexpensively. Nonprofit organizations are also collaborating with their supporters by using them as fundraising battalions. You can bring volunteers (well-known) or regular people within a big network and provide them the tools to fundraise in their name. One example of this is when people jump into running marathons and 5K races and the contributions go towards a specific cause.

Another example is WeAreMedia, a wiki project where over 100 non-profit technology professionals have pooled knowledge resources and developed training materials to help nonprofits learn how to use social media effectively.

4. Social responsibility spreads faster in the green era.

One of the perplexing things about corporate social responsibility (CSR) is that it has long meant different things to different people. To some, an action only counts as true CSR if it is unprofitable and hence motivated by altruism. Socially beneficial actions that increase profits are merely strategic CSR. However, even advocates of altruistic CSR admit that most CSR actions can be viewed through a strategic lens. Nonprofits are taking advantage of this trend using specific causes and spreading the news in blogs and social media sites. This type of project also impact a community specifically when corporations feel identified with the project.

4- A good cause is more important than the Mission of your Nonprofit.

We’re just at the beginning of seeing how social media is impacting how nonprofits engage with their supporters and do their work. As more and more nonprofits adopt social media and their practice improve over time, we will no doubt see a transformation of the nonprofit sector. In our website http://www.openglobalmarketing.com you can see how Search Engine Optimization is as important, if not more, as social media is. SEO is the art of making your website more visible for the searchers.

In the wake of the devastating earthquake in Haiti, the Red Cross has raised over $140 million largely through text message and online donations.

This recent disaster has cast a new light on social media tools for nonprofits. Their benefit is simple: Social media provides a compounding effect on your message.

The element of trust is critical to nonprofits. People trust messages from friends and colleagues more than from organizations. A recent Aberdeen study on the value of online communities states that 77% of people trust friends, family, and other consumers above retailers and manufacturers.

Therefore, using these five points, I hope you can start investing resources and money into Social Media in 2010.

Contact Juan at http://www.openglobalmarketing.com

Independent Fundraising Events Bring Big Returns for Nonprofits

Everyone is scrambling for money these days.  Traditional fundraising is being challenged as more organizations have to become creative and perhaps try new things.  Blackbaud and Event 360 have completed a study on Independent Fundraising Events that you can download from their website.  There is also a February 3rd FREE seminar they are conducting that you might find interesting.  If you click on the title of this announcement above, it will take you straight to the whitepaper.  I hope this helps!  Bunnie

Independent Fundraising Events Bring Big Returns for Nonprofits:  Special Study from Blackbaud and Event 360.

(Online registrations, donations and fundraising per participant increasing in Blackbaud
and Event 360 analysis of 30,000 donors and 4,000 individual fundraisers)


In a time when overall fundraising is on the decline, independent fundraising events are raising more money and growing in participation and donors, according to a recent Blackbaud, Inc., (Nasdaq: BLKB) and Event 360, Inc. study. Independent fundraising events (IFE) are activities designed and run by volunteers to raise money on behalf of a specific nonprofit organization.

Blackbaud partnered with Event 360 on a research project to better understand the common denominators of a successful programmatic approach to third-party fundraising. The research team analyzed data from nearly 30,000 donors and 4,000 individual fundraisers who organized or participated in independent fundraising events on behalf of leading nonprofits including Alzheimer’s Association, Autism Speaks, Canadian Cancer Society’s BC and Yukon Division, Christopher and Dana Reeve Foundation, Lance Armstrong Foundation, and The Michael J. Fox Foundation for Parkinson’s Research.

The analysis showed that online registrations, donations and fundraising per participant are increasing, and that IFEs represent a growing revenue source, especially online, for many organizations. Based on a Blackbaud assessment, there was an estimated $300 million raised in 2008 in the United States from these types of events, indicating that organizations should find better ways to cultivate these fundraisers and provide the solutions they need to succeed.

Mark Davis, Blackbaud’s director of technical solutions, and co-author of the study said that these trends support the need for a strong online user experience and justify the investment in sophisticated online tools, communications, and reporting.

“Typically, nonprofit organizations do not have the resources to hold events in every community or to invest in mass advertising and marketing efforts,” he said. “Through these IFEs, the organizational mission and message can be brought to communities across the nation. By offering an IFE program, an organization can build stronger, more loyal supporters, acknowledge their personal struggle, and honor supporters’ desire to act in impactful ways that match their passion with a nonprofit’s mission.”

In 2008, The Lance Armstrong Foundation supported 1,078 grassroots fundraisers in raising over $3.8 million with almost no cost to the organization. The average independent fundraiser raised more than $3,200 compared to the average $500 raised by participants in the organization’s signature fundraiser, the LIVESTRONG Challenge.

“Despite today’s difficult economic climate,” says Colleen R. Wilson, events fundraising manager for the Lance Armstrong Foundation, “we expect 2009 revenue totals in grassroots fundraising to outpace the 2008 total of $3.8 million at essentially zero cost to the organization.”

According to Meghan Dankovich, Event 360’s director of consulting and co-author of the study, the most successful IFE programs were found in organizations that embrace their “super volunteers.” “Traditional event organizers need to view independent fundraising as supplementary, not competitive, to their existing development portfolio,” she said. “In fact, 64 percent of the IFE participants we surveyed reported that they were first-time fundraisers for the organization. Most are directly impacted by the cause they support and are looking to take action in a more personal way than is available through the organization’s traditional event offerings.”

The Michael J. Fox Foundation embraces its super volunteers by encouraging its supporters to find unique and creative ways to raise funds for Parkinson’s research. Team Fox provides guidance, tools, and resources for the thousands of individual fundraisers who are walking, running, blogging, jogging, paddling, pedaling, eating, drinking, shopping and dancing to raise funds and awareness for Parkinson’s research.

One particular super volunteer is Mary Anne O. of Illinois. First diagnosed in 2001 with early onset of Parkinson’s, she heard Michael J. Fox speak at a conference in 2006. His speech energized her to become a supporter for the cause. She combined her passion of gardening with an idea for a Garden Walk. Her success has grown from raising $25,000 in 2007 to over $52,000 in 2009 with help from a team of 25 volunteers.

Additional key findings from the study include:

• An IFE program offers a nonprofit the opportunity to raise money at a relatively low cost of fundraising, while providing a deeper level of engagement with the organization’s strongest supporters. The cost of fundraising for these programs was recorded between $0.10 and $0.15 per dollar raised – lower than any traditional fundraising methodology in a nonprofit’s development portfolio.

• Independent fundraisers are able to reach donors otherwise unattainable by the organization through their personal social networks.

• These “super volunteers” also spread awareness beyond the reach of the organization through these activities.

• With online activity increasing as a whole, managing an IFE program primarily via a website with online tools is feasible, effective, and significantly reduces the cost of operation.

• Because “the ask” is very personal from this type of supporter, it is also a more dependable source of income in tough economic times.

• An IFE program offers a nonprofit’s target audience a very personal form of involvement at an emotional level, where the passion of their fundraising typically raises more than the traditional fundraising event participant.

Visit http://www.blackbaud.com/IFE or http://www.event360.com/resources to download the entire study and to register for the February 3 web seminar, “Raising More Money Online from Independent Fundraising Events.” In addition, Cause Minded, will feature Mark Davis and Colleen Wilson in a February 23 webisode discussing managing and supporting third-party events. For more information, visit http://www.causemindedonline.com/, or register here.

About Blackbaud


Blackbaud is the leading global provider of software and services designed specifically for nonprofit organizations, enabling them to improve operational efficiency, build strong relationships, and raise more money to support their missions. Approximately 22,000 organizations — including University of Arizona Foundation, American Red Cross, Cancer Research UK, The Taft School, Lincoln Center, In Touch Ministries, Tulsa Community Foundation, Ursinus College, Earthjustice, International Fund for Animal Welfare, and the WGBH Educational Foundation — use one or more Blackbaud products and services for fundraising, constituent relationship management, financial management, website management, direct marketing, education administration, ticketing, business intelligence, prospect research, consulting, and analytics. Since 1981, Blackbaud’s sole focus and expertise has been partnering with nonprofits and providing them the solutions they need to make a difference in their local communities and worldwide. Headquartered in the United States, Blackbaud also has operations in Australia, Canada, the Netherlands, and the United Kingdom. For more information, visit http://www.blackbaud.com/.


About Event 360


Event 360 is a event fundraising company helping nonprofits create powerful experiences that inspire record levels of interest, giving and loyalty. This strategy builds on over seven years of experience in event fundraising and production, strategic consulting, and technology services that have helped nonprofits raise over $500 million. Visit http://www.event360.com/ to learn how Event 360 can help your organization connect more donors with your cause.

You can contact Melanie Mathos at 843.216.6200 x3307 or melanie.mathos@blackbaud.com

A Value Menu for Your Non-Profit

More than anything else, when it comes to fundraising, you've got to think like your donors. Besides their charitable giving to causes they believe in, what is their "bottom line?" Adam Miller makes some interesting observations and brings up a point: how many nonprofit CEO's or board members really understand how tax laws work? That's a question for your next board meeting! Bunnie

A Value Menu for Your Non-Profit

Connecting with donors to improve their bottom line… and yours.

by Adam Miller

I love watching folks order from the value menu at fast food restaurants. Fast food chains are competing for business in a difficult economy. They are promoting the value of their food and calling hungry customers to action. I believe they are on to something; it seems like more and more folks are piecing together meals that can be paid for with spare change.

How are you adding value for your key donors? How are you calling them to action? Most key donors are already passionate about your organization. They are already giving and they don’t need a sales pitch. Instead, you may be able to sweeten the deal and build a relationship by presenting them with a menu of options that will add value.

You can do this by understanding how your donors are taxed and working with them to give more effectively. If you save them money by allowing them to give more to your organization, you have succeeded. Their finances are better because they did something they were passionate about.

Understand charitable donations. Folks give in different ways and from different sources. Here are a few basics on charitable giving:

Checkbook Philanthropy. When a donor writes a check, they are using after tax income to support your organization. If you are a tax-deductible organization they will receive a deduction at the end of the year which will reduce taxable income… maybe! In order for this to help, your donors must itemize on their tax return. According to the IRS, only about 36% of tax returns for individuals and families are itemized.

Appreciating appreciated assets. In this economy, it is difficult to discuss assets that have gained in value. This sort of conversation with donors at the end of 2008 may have gotten you laughed out of the room. Despite how things feel in this economy, many Americans still have securities and real estate that has appreciated. If they were to sell these assets they would owe capital gains on the appreciation. If your donor bought stock at $1 per share and sells at $10 per share, she owes capital gains tax on the $9 of taxable gains. However, if she were to gift that $10 stock to your organization, she gets a deduction for the entire $10. Remember, she only paid $1. As icing on the cake for your donor, she no longer owes the capital gains tax because she made the charitable contribution. Your donor supported your organization, got a full deduction, and did not have to pay the tax on capital gains. She has saved money.

Let them leave a legacy. What would happen if your largest, most consistent donor passed away tomorrow? How would it affect your budget? If your donors are passionate enough to offer support during life, perhaps they would be equally passionate about supporting your organization after they are gone.

There are many ways to go about this. It can be as simple as adding your organization as a beneficiary on an investment account. Some donors opt to create charitable trusts, donor advised funds, or participate in charitable foundations. These options offer flexibility and can allow donors to receive a deduction now, remove assets from their estate, and support your mission long term.

Don’t get overwhelmed, get help. You are probably a bit concerned at this point, feeling like your role in the organization just got bigger. There is good news: you don’t need to know everything about taxes, deductions and charitable giving to be effective. Instead, consider partnering with folks who are passionate about your organization, and who know their stuff when it comes to taxes. Seek out financial advisors, accountants, and attorneys, partnering with them to educate donors. You may find a few of these professionals are already a part of your donor base.

Tax laws are constantly changing but professionals in your community can keep you ‘in the know’. Ask these folks to look for tax changes that may benefit your organization and act as a call to action for donors. Use each opportunity to present a newsworthy new addition to a robust value menu.

You are beginning to look like a super-hero. You are connecting with folks that are passionate about your organization and you are adding value by saving them money. Congratulations!

Adam is a Candidate for CFP® certification, a trusted fiduciary and fee-only financial planner at Elderado Financial. He works passionately to help families pay less in taxes and give more to the people and organizations they care about.