Month: July 2014

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1. Direct Mail and Donor Retention & 2. The U.S. Style of Fundraising

Funding concepts

1. Understanding Donor Retention
by Jonathan Howard

In a prior post, we looked at a mailing designed to bring in new, first-time donors, a process called donor acquisition.

Now lets’ talk about the other side of an effective direct mail program: keeping the donors you already have, called donor retention.

I compare the interplay of acquisition and retention as similar to what happens when you pour water into a bucket that has a hole in the bottom. Whether the water rises or falls depends on whether you add more water to the top (acquisition) than you let pour out of the bottom (through poor donor retention).

Good donor retention makes the difference between winners and losers in direct mail fundraising (and most other types of fundraising, too). High retention means lower fundraising costs, higher return on investment and a much better chance of growing donor numbers and income over time.

But you can’t hit a target that you can’t see. So take the first step to succeeding by putting a number on your donor retention. Start by comparing data from the last two full years.

The math is simple:
• Count the number of donors who made a gift at any time in 2012. Count individuals, not gifts.
• Now, run a query or manual count to find out how many of those same also gave you one or more gifts in 2013. These are your “retained” donors. (The missing people are your “lapsed” donors – the hole in your donor bucket.)
• Now divide your 2013 retained donor number by the 2012 total donor count, then show the result as a percentage. That’s your retention rate !

For example:
Total individual donors in 2012 = 1,000
2012 donors who also gave in 2013 = 500
Your retention rate = 50% (500 divided by 1000)

Retention drives your net donor income. Moving that needle upwards must be a key objective in any direct mail program.

Next Wednesday, we’ll look into how retention drives donor income.

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Jon is Vice President of Cause & Effect, Inc.
He has helped nonprofits develop successful direct response strategies and
effective donor communications for more than 25 years.
Contact Jonathan Howard or
visit the Cause & Effect website
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Have you seen
The Fundraising Series of ebooks ??
They’re easy to read, to the point, and inexpensive ($1.99 – $4.99)
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2. The U.S.-Style of Fundraising Can Work in Other Countries
by Tony Poderis

The Steps Needed To Make It Work
Three weeks ago, I posed a number of “loaded” questions; and, if you answered, “Yes,” to even one of these questions, you already know that change may be difficult to initiate.

But, with the understanding/acceptance that the charitable impulse lives in (almost) everyone, everywhere, it becomes your job, as a fundraiser, to introduce in your country or to your charitable organization the system of philanthropic fundraising we use so successfully in the U.S.

Growing the Philanthropic “Habit” in Your Country
It is likely that you will need to start a new philanthropic “habit” where none exists. This can be accomplished by patiently and politely introducing people to the process of fundraising and explaining why it is necessary. You should also explain that such expressions of charity and compassion can be just as rewarding to the individual donor as helping a neighbor in need – in fact, if you can get an actual donor to make that point, all the better !!

To assist nonprofit organizations in building the philanthropic spirit and the habit of giving in your country, you must show potential donors that all contributions will be used in exactly the way each organization promises.

The names/identities of your leaders should be public information … to give your potential donors confidence that your organization is being guided competently and honorably.

You must also honor the confidentiality of your donors. Their names should not be made public without their approval.

Openness, honesty and reliability are key issues if you wish to build trust among potential donors, so you must prove not only the value of an organization’s work, but also the efficiency and honesty with which it delivers its programs and services.

Only then are you ready to begin real fundraising.

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Have a question or comment about the above posting?
You can Ask Tony.
There is also a lot of good fundraising information on his website:
Raise-Funds.com
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Have you seen
The Fundraising Series of ebooks ??
They’re easy to read, to the point, and inexpensive ($1.99 – $4.99)
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If you’re reading this on-line and you would like to comment/expand on the above, or would just like to offer your thoughts on the subject of this posting, we encourage you to “Leave a Reply” at the bottom of this page.

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Communicating Governance and the Writer

Business men documenting the governance of the company

Writing and communicating the purpose of a governance document takes a lot of work. It involves writing about how an organization is set up, it’s history, who it reports to (if any), it’s rules, priorities, supporters, members, groups, responsibilities, compliance issues, policies, procedures, and efficiency. Governance documents ensure that procedures are maintained.

To build a governance document, the content writer has to really understand the structure of the organization, learn about its history (the background) and ask a myriad of questions. As always to get the answers, experts have to be sought out. Once the right resources have been found, the following information has can be gathered.

The Organization

  • History behind the organization
  • Goals – note the purpose of the organization, why it was established
  • Accomplishments – what the organization has accomplished for members, the community and/or others
  • Function of the organization – is it a non-profit, manufacturing, IT, financial, medical, etc.

Governing board

  • Structure – how is the board organized, what is its function
  • Members – who they are, their functions, how elected and for how long
  • Bylaws – what are the regulations, guidelines for the organization and its members
  • Financial background and statements – who are the resources (organizational names), who is in charge, whom do they report to, how often are reports created (include whom to send to, contents)
  • Types of reports created – list generated reports, what they are, when, how often, who creates them, where does data come from
  • Who reviews the organization – is there a governing body above that oversees it?
  • Meetings – when, who attends, how often, who does the recording

Policies and Procedures

  • Code of ethics – who, what, how were they developed; what it entails
  • Conflict of interest – what to do, whom to report to; what it entails
  • HR – policies and procedures for hiring employees – note positions and functions

Responsibilities

  • Director – principal administrator and manager in charge of the organization; ensures compliance regulations are met
  • Assistant Director – assists the Director in all functions
  • Financial administrator – manages all fiscal business
  • Fund raiser – assembles groups for creating fund raising activities
  • Trip planner – generates ideas and arranges, organizes off-site outings
  • Activities leader – generates group activities, ensures popularity
  • Meeting leader – creates and manages agenda
  • Secretary – maintains and schedules organization of meetings
  • List all accountable members and their functions from cooks to packers to any administrator that is involved in maintaining the function of the organization.
  • Also note whom each of the team leaders report to

The governance document

  • is important because it’s a statement that shows the value and solid structure of the organization and the quality of service it provides, such as a community center providing activities, benefits, and support for all its members
  • sets a standard for the organization and aids in maintaining those standards
  • contains an established set of rules that have to be followed

The items listed above were some ideas of what should be in the governance document. Without this document, an organization might fail or lessen its goals.

Please leave a comment if you previously created governance documents.

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Red Cross Puts Humor to Work for Reputation Management

a-member-of-the-Red-crss-society-sitting-on-a-bench

Not taking yourself too seriously is a boon to reputation

The Onion is well known for being utterly satirical, yet many organizations who find themselves the focus of a joke are unable to see it as anything but a threat. Earlier this month the American Red Cross was the target of an Onion article titled, “Nation’s Blakes Cruise Easily Through Lifeguard Training”, which took a shot at “typical” lifeguard names. Here’s a quote:

According to incoming reports from beaches and pools across the country this week, lifeguard tryouts were once again a breeze for the nation’s Blakes. “According to our figures, Blakes from coast to coast have secured more than half of all available lifeguarding jobs, cruising through fitness, CPR, and swimming trials with ease,” American Red Cross president Gail McGovern said, adding that the lifeguard staffs at over 200 municipal pools, seashores, and water parks would be composed entirely of Blakes this summer. “And in addition to Blakes, the country’s Bryces, Gavins, and Rykers also had no trouble passing the various tests. Although, as usual, not a single Saul was offered a position.”

Instead of huffing and puffing with indignation, the Red Cross made the absolute best move possible, embracing the attention drawn by the silly article and inserting a call to action that helps them to reach their goals as an organization, all with a simple Facebook post:

The Onion Red Cross post pic

While this situation was never a crisis, the wrong response could absolutely have turned it into one.

Next time someone takes a jab at you, do what the Red Cross did and consider not only whether it really matters, but also how you can turn it to your advantage. You may be surprised just how much mileage you can get out of showing your human side and giving your stakeholders a bit of a laugh.

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For more resources, see the Free Management Library topic: Crisis Management
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[Jonathan Bernstein is president of Bernstein Crisis Management, Inc., an international crisis management consultancy, author of Manager’s Guide to Crisis Management and Keeping the Wolves at Bay – Media Training. Erik Bernstein is Social Media Manager for the firm, and also editor of its newsletter, Crisis Manager]

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Women Entrepreneurs Bring Unique Strengths

A female entrepreneur laughing in her office

The corporate “glass ceiling” prevents many women from advancing above a certain level in Corporate America. For example, men hold the top position in 98% of Fortune 500 companies. So increasing numbers of ambitious female entrepreneurs have opted to increase their influence and impact by running their own company.

And in so doing, they bring unique strengths that deliver new vitality to their companies and to the world. One of those strengths is deep emotional commitment to their communities.

glass ceiling

A recent report entitled Forget the Glass Ceiling: Build Your Business Without One, commissioned by Dell, identified four specific ways that women bring new value (and values) to the marketplace:

1. Social Responsibility is Built Into Their DNA

2. Giving and Volunteering Benefits Both Nonprofits and Your Business

3. Women Help Other Women Achieve

4. Business is More Than Just Making Profits to Women.

My observation has been that women entrepreneurs bring longer-term sustainability to their companies, and in time I believe there will be data to support that observation.

Good luck!

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1. Grant Proposals Tell Stories & 2. Donor-Centered Planned Giving

Work colleagues sharing stories and ideas on grant proposals in the office

1. April 27th was National Tell a Story Day
by Jayme Sokolow

What, you may ask, is the connection between National Tell a Story Day and grant proposals? A great deal, at least from my perspective.

Stories are universal because we use stories to create meaning. When you cite a statistic or make an argument, often your listener’s eyes glaze over. But when you tell a good story, you engage, entertain, and make a point.

Although grant guidelines often make sustained storytelling difficult in proposals, there are always opportunities for short stories or anecdotes to help support your argument(s).

When you tell stories in proposals, you engage reviewers just as you do when you chat with colleagues at the office or talk with friends over dinner.

I recommend that you follow these six tips for telling better stories in your proposals. They are based on a recent Grammerly post on “Storytelling 101” that appeared in the May 5, 2014 HuffingtonPost.

Show, Don’t Tell: Don’t just tell the reviewer what to think – paint a vivid picture through a good story and your point will be richer and more impactful.

Be Specific: Engaging stories provide their readers with vivid details. Tell a good story in your proposal by providing rich details, and make your point come alive.

Engage the senses: In your proposals, tell stories that engage all the senses. Make a point and be as vivid as possible without becoming florid.

Be concise: Cut out unnecessary words, avoid repetition, and get to the point quickly. Your distracted reviewers will appreciate it.

Cut out most of the adverbs and be sparing with adjectives: Don’t reply too much on words that end with “ly” (adverbs) or modifiers (adjectives).

Proofread: Nothing destroys confidence in a story or a proposal like too many typos and grammatical errors. Proofread carefully.

Stories can engage those busy reviewers who are easily distracted. Tell a story that holds the reader/reviewer, and your grant proposals will become more compelling.

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Dr. Jayme Sokolow, founder and president of The Development Source, Inc.,
helps nonprofit organizations develop
successful proposals to government agencies
Contact Jayme Sokolow..
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Look for Jayme’s ebook on
Finding & Getting Federal Government Grants.
It’s part of
The Fundraising Series of ebooks
They’re easy to read, to the point, and inexpensive ($1.99 – $4.99)
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2. Donor-Centered Planned Giving – Part II
by John Elbare

Look at your donor stewardship process and imagine how it feels to be a donor to your organization. Are they thanked promptly and properly? Are they kept informed about your service goals and results? Are they invited to tour your facility or meet with your CEO? Are you doing everything you can to help them feel part of the mission?

A good way to measure how well you are building relationships with your donors is to measure your donor lapse rate. It should go down as you improve your stewardship. The lower your donor lapse rate, the more loyal donors you will develop, and planned gifts are made mostly by loyal donors. You need to grow your base of loyal donors.

Next, keep an eye on your growing pool of loyal donors and look for opportunities to begin cultivating relationships on a personal basis. You can do this by visiting with them, learning about their concerns and values, understanding why they care about your mission, and then – when the time is right – propose a planned gift idea that is perfectly aligned with their values and charitable goals.

Done this way, planned giving becomes routine and productive. Your donors will appreciate the opportunity to help in a significant way.

The hardest part is getting your own organization to understand the value planned giving and the need to invest in it now for donations that will arrive several years in the future.

Done right, planned giving is not a side-line to the other fund development activities. Instead, planned giving is the big prize that is earned at the end of the donor development process. Get your organization to understand the donor development process, and you will finally be on a clear path toward raising the all the funds your organization needs.

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John Elbare, CFP, has spent the last 30 years helping non-profits raise more money
through large, planned gifts. He shows them how to add
an effective planned giving strategy to their current fund raising effort
without a lot of extra expense or staff.
You can contact him at John Elbare, CFP .
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Have you seen
The Fundraising Series of ebooks?
They’re easy to read, to the point, and inexpensive ($1.99 – $4.99)
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If you would like to comment/expand on the either-or-both of the above pieces, or would just like to offer your thoughts on the subjects of this posting, we encourage you to “Leave a Reply.”

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Extensive, Free, Practical Online Resources for Action Learners, Facilitators and Coaches

A-lady-having-an-online-session-with-a-coach

(The aim of this blog has always been to provide highly practical guidelines, tools and techniques for all types of Action Learners and coaches. Here are links to some of the world’s largest collections of free, well-organized resources for practitioners in both fields.)

The Action Learning framework and the field of personal and professional coaching both focus on personal, professional and organizational development, especially by including thoughtful questions among participants to clarify current priorities, select relevant strategies to address them, and take realistic actions to implement those strategies. The fields focus on guiding and supporting participants to reflect on the questioning and the actions that they take, in order to cultivate deep learning for the participants.

(There are many different views of Action Learning and how it should be done. To understand those differences, see the video Different Perspectives on Action Learning.)

Here are links to extensive, free, practical resources for these activities.

All About Action Learning

One of the world’s largest collections of free, well-organized information about Action Learning, including different definitions and models of Action Learning, various theories, examples of applications, and resources for each of the typical elements in the process. It also references numerous, free practical videos about all aspects of planning, developing, implementing, evaluating and troubleshooting Action Learning program

All About Coaching

Also one of the world’s largest collections of free, well-organized information — this time about personal and professional coaching, including different definitions, types of coaching, many benefits, hiring a coach, getting coached, doing coaching — and much more.

All About Facilitation

Includes free resources about typical tasks of facilitators, their values, how they often work, good versus not so good facilitation, group theories and dynamics, different types of groups, tools and techniques — and much more.

All About Questioning

Includes different types of questions and when to use each, traits of useful and not so useful questions, and many examples of useful questions.

Inquiry and Reflection

Includes definitions, the process of reflection, balancing inquiry and advocacy, tools to cultivate reflection, capturing learning, etc.

All About Learning and Development

Includes extensive, free resources about understanding learning and development, different types of L&D, types of activities for L&D and when to use each, designing informal and formal learning activities, etc.

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Carter McNamara, MBA, PhD, is a faculty member of ActionLearningSource, which specializes in customizing high-quality Action Learning and group coaching programs for a wide variety of outcomes and applications. The firm also conducts a variety of low-cost, virtual and face-to-face trainings about Action Learning and group coaching facilitation, meetings, models and programs.