Category: Financing & Loans

Had a “wrong number” phone call recently from a “Director of Development” of an organization based in my area who was trying to reach a totally different business.

Even though I was not the intended recipient of the call, when the caller learned that I was a fundraising consultant, she thought that it was “kismet” that we had connected.

She had “questions” related to obtaining corporate contributions … the apparent focus of most of her (organization’s) fundraising efforts.

She talked about her emphasis (to corporations) on the wonderful things her organization does for its constituents, but she totally missed the concept that if you want money from a corporation you have to show them how giving to you will improve their bottom line and/or their public image.

I asked about her background in development and learned that, after many years in industry, she’s been in fundraising for ten years – with a singular focus on corporations. With her emphasis on corporate fundraising I asked if she was the Corporate Affairs Director, but she emphasized that she was the D.O.D.

I asked about her background/training in development … and there was none !!

Even with her participation/attendance at AFP chapter meetings, she seems to believe that anyone can be a Director Of Development … with or without the experience/skills needed to direct a development program. That also suggests that AFP isn’t effectively conveying to its members/attendees what development is and what a Director of Development does. That’s sad.

It’s also scary/depressing how often NPOs hire development staff/directors who have no clue that there’s a difference between fundraising and development. Of course, the people at the NPOs also have little-or-no understanding of what that difference is. They’re only looking to hire someone to raise money … so they won’t have to !!!!!

What do you think ?? Let me know, and I’ll post your comments.

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Have a comment or a question about starting, evaluating or expanding your fundraising program?
Contact Hank at AskHank@Major-Capital-Giving.com. With over 30 years of counseling in major gifts, capital campaigns, bequest programs and the planning studies to precede these three, he’ll be pleased to answer your questions.

In a CFC campaign, each Federal employee gets a pledge card with a long list of charitable organizations, and many folks check the boxes of more than one. Most donations are by designation to specific non-profits, and most donations are made by payroll deductions.

CFC campaigns are in the fall, payroll deductions begin in January, and the Federal employee’s year-end payroll statement lists the amounts donated to their chosen nonprofits.

Why People Give

Findings from Gilmore Research provides these statistics:
● 60 percent will give when asked by someone they know well
● 40–50 percent will give to a fundraising activity when asked by a co-worker
● 10–20 percent will give to a cause they learn about from the media (print,
   radio, TV, telethons)
● Fewer than 10 percent will give when solicited by a stranger at the door,
   on the phone, in print ads, or in a letter.

Benefits of Workplace Giving Campaigns

When you consider the above, the benefits of workplace giving campaigns become readily apparent. In workplace giving:
● People are giving to people, people they know;
● They are being asked to give by their co-workers;
● The CFC creates a campaign atmosphere, with individual and group
   recognition;
● They are being asked by “enthusiastic” solicitors.

The CFC Is The Most Donor Friendly Means Of Giving !!

The Federal employee, with one pledge card and one transaction
● Can donate to multiple charities with just one pledge.
● Gives money to the non-profit before it ever hits their checkbook
● Accrues no interest charges from credit card donations
● Feels secure—their personal information is never on the Web
● May remain anonymous if they wish … and through the CFC they have
   the option to have or not have their contact information passed on
   to the organizations they support.

Developing Lifetime Donors

In the non-profit world, when you ask who are our most important people, depending on who you ask, you’ll get different answers: “Our clients, our volunteers, our staff, our donors….”

But it’s easy to make the argument that a non-profit’s donors are their most important constituency, because without them, the non-profit ceases to exist.

The CFC provides a unique way for you to develop lifetime donors. Once they get in the habit of donating to your organization, these individuals can continue to provide support for multiple years, if not decades.

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In the next post in the CFC series we’ll take a look at one of the biggest mistakes made by CFC charities, and the simple ways to avoid them.

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During his 25-year career in the Federal sector, Bill Huddleston, The CFC Coach, served in many CFC roles. If you want to get involved in the Combined Federal Campaign, maximize your nonprofit’s CFC revenues, or just ask a few questions, this is the guy to contact … Bill Huddleston1@gmail.com .

It’s Not About Me; It’s About You, Really !!
Relationships are at the heart of all fundraising activities, and grants are no exception. Just like dating, the nonprofit grantee needs to find a compatible match in a prospective grantor.

But, unlike a good date, the grantee/grantor relationship is very one-sided. It REALLY is all about the grantor.

Given the proliferation of U.S. public charities – just over one million in 2010, according to the National Center for Charitable Statistics – coupled with the current economic climate, foundations are the much-courted belle-of-the-ball. And, like public charities, foundations have also been pinched by the economic downturn.

As per IRS regulations, private foundations are required to distribute about 5% of their assets annually for charitable purposes. So, when the market is down, their assets generate less income, so they give less.

According to the Foundation Center, grantmaking by private, community, and operating foundations fell by almost 9% in 2009 – figures aren’t out yet for last year.

In addition to financial constraints, foundations are also limited to the charitable purpose(s) established by their donors and managed by their trustees. Unlike individual donors, foundations usually have a well-documented purpose that they are trying to fulfill by making grants.

They are looking for nonprofit organizations that can help them make the changes/improvements in the world that are their raison-d’etre, and deliver the services and outcomes that matter to them.

What should you look for when courting prospective foundations?

Most importantly, look for a foundation with a “purpose” that has significant overlap with your organization’s mission.

If, for example, your mission is to rehabilitate wildlife, then you should be looking at foundations that identify animal welfare as a priority. Conversely, if you are a charter elementary school, then a foundation that funds higher education is not a good fit.

So, when your intended foundation partner breaks-up with you after the first date (or rejects your first proposal), try not to feel hurt. Just do a better job prospecting for your next match … it might be the one made-in-heaven.

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Lynn deLearie Consulting, LLC, helps nonprofit organizations develop, enhance and expand grant programs, and helps them secure funding from foundations and corporations. She can be contacted at lynn.delearie@gmail.com..

An email asked: “What advice is there for new nonprofits without a funding history? So many groups with a lot of potential just don’t know where to begin.”

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The biggest mistake most new NPOs make is the assumption/belief that, because they want to do wonderful things, everyone (read: gov’t, corporations, foundations and “rich people”) will want to give them money.

The fact is that an NPO must prove itself — prove it can do what it says it can, prove it can be fiscally responsible, prove it is actually needed — before gov’t, corps and fndns will be willing to invest in it.

Of course (he says with tongue-in-cheek), that leaves rich people, and all new NPOs think that Bill Gates is going to send them a check — all they’ll have to do is write him a letter, then watch the mail.

Hey, don’t hold your breath on that one.

A major factor for getting money from rich people is having access to those people. If you have personal relationships with the wealthy, then it’ll be easy for you to pick up the phone and make an appointment to go see your “friend” and ask for that big check. The same if you know someone who has those connections and can/will do that for you.

Failing all that, it comes down to the hard realization that, if you don’t know someone with an “in,” you must rely on the tried and true methods for obtaining that initial funding.

If you can’t rely on outsiders (the gov’t, corps, fndns and the wealthy), it’s up to the insiders to make it happen.

For each new non-profit, the specifics may be different, but the general circumstances are pretty much the same. There must be an understanding that if the people who created the new organization can’t/won’t give of their own resources (to the extent they can) then why would anyone else want to … why should anyone else??.

Once that is understood, the founders of that new NPO must take an inventory — who of the people that they know might come to care (as much as you do) about the reasons why the NPO was created … and eventually want to support that organization.

There must also be an evaluation of how those founders and the people with whom they have relationships can begin to make a difference. This step is often best accomplished with some expert guidance.

Many new NPOs bring in someone to speak with their leadership, to educate them as to the processes and procedures that are, typically, most effective, and to help them determine what might be most effective for them. Founders of many new NPOs also attend seminars/workshops designed to educate new NPO leaders.

Bottom line for a new NPO is — to paraphrase, “Only when you’ve helped yourself will others be willing to help you.” PROVE you’re worthy, and future funding will be a lot more likely.

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Have a comment or a question about starting, evaluating or expanding your fundraising program?
Contact Hank at AskHank@Major-Capital-Giving.com. With over 30 years of counseling in major gifts, capital campaigns, bequest programs and the planning studies to precede these three, he’ll be pleased to answer your questions.

The best way to begin a government grant proposal is with a great kick-off meeting. If the meeting goes well, you will inform, motivate, and focus the grant proposal team on the task ahead.

The proposal team is comprised of the people who will be working on the grant application. They should include the Proposal Manager, the grant writers, the subject matter experts, the accountant or Chief Financial Officer, and anyone who will be actively involved in putting together the grant proposal.

The Kick-Off Meeting is the first step in the process of developing your proposal. The best kick-off meetings involve the entire proposal team sitting face-to-face around a conference table. For efforts that involve partners around the country, a conference call will be more cost-effective and less time-consuming.

The Proposal Manager should run the kick-off meeting. Thorough preparation for that meeting includes:
• Creating a complete agenda for distribution at the meeting.
• Inviting the entire proposal team.
• Inviting senior management – the President, Vice President, and Chief
   Operating Officer. They should attend for two important reasons – to learn
   more about the proposal effort and to support the team.
• Arranging a comfortable setting, and, if the meeting is long, provide
   refreshments or a meal.
• Providing relevant materials in advance – such as the grant guidelines and
   the Application Instructions.
• Providing contact information about the proposal team.
• Describing the process and schedule. The schedule is very important
   because most proposal efforts operate on tight deadlines.
• Explaining why your effort is important is important to the NPO.
• Explaining how the proposal team will work together and in what roles.

Desired Outcomes of the Meeting
• Attendees should leave the room confident in your ability to steer the
   proposal effort as the Proposal Manager.
• They need to believe that the grant proposal has a good chance of being
   funded.
• Management should be committed to providing strong support and advice
   as needed.
• The proposal team should have a clear understanding of their individual roles.
• The proposal team should be committed to adhering to the schedule.

If you can accomplish these goals, you are off to a great start!
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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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From this posting, until after Labor Day, the Fundraising Blog will post only once each week. We will resume the twice weekly postings in September. Enjoy your summer. ….Hank, Natalie, Jayme, Lynn, Rick & Bill

On a listserve in which I used to participate, someone posted the following:
<< We plan to write to donors who have not contributed in the last few years and ask if they would like to remain on our list…. >>

My Response:

Those folks must have had some reason for giving to you in the first place. To ask if they want to be removed from the list serves no one’s purposes — unless it’s someone whose focus is on the list, and not on the purpose of the list.

Ask them what you need to do to get them to give again, or what you did to make them stop — I assume you can come up with better wording than this.

Give them a reason to want to write that check – motivation is about getting them to want to do what you want them to do….

Asking people if they want to remain on your list is to not address the real question — if they are interested in the pursuit of your mission.

Try to find out if you’ve been communicating adequately with them – ask them what further information they’d like you to provide. Don’t just treat them as (non-productive) names on a list.

Never ask prior donors if they want to be removed from your list, some of them might say, “Yes.” Prior donors are a resource you want to conserve.

Approach the question from the perspective of “what would make those prior donors rediscover the romance?” — rather than asking if they want a “divorce.”

Be creative in giving them opportunities to show that they still support you and your mission, forget about asking them if they want to be removed from your list.

In addition to the above, send your mailing with “Address Correction Requested” – that way you can remove from your list people who are actually not getting your mail or you can get the new address of a donor that may have moved.
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Have a comment or a question about starting, evaluating or expanding your fundraising program?
Contact Hank Lewis. With over 30 years of counseling in major gifts, capital campaigns, bequest programs and the planning studies to precede these three, he’ll be pleased to answer your questions.

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From the next posting (this Thursday), until after Labor Day, the Fundraising Blog will post only once each week. We will resume the twice weekly postings in September. Enjoy your summer. ….Hank, Natalie, Jayme, Lynn, Rick & Bill

While billions of dollars are donated online annually, your nonprofit is probably not getting its fair share. And that’s probably because your own website is getting in the way.

We have recently made online gifts “secretly” to over 80 nonprofit organizations with some surprising results, which we’ll be talking about in this and future issues.

Reviewing your online donation process is the first step in improving your results.

1. Can web visitors find the donation page?
You need an obvious, easy-to-find link on every page. “Obvious” means it has to be where people look when they scan a web page: across the top navigation or down the left hand side. Anywhere else on the page is not as good.

“Easy to find” means it stands out from all of the other navigation links. If you only have five navigation choices on your menu, then people can find it just by scanning. If you have more than five, make the “donate now” link stand out in a different color or size.

The link should say “Donate Now,” not something vague like “ways to help” or “support us.” Having a text link in the top navigation, and a bold graphic button elsewhere on the page, is even better. Less than 25% of the websites we studied had an obvious and easy to find link to the donation form even on their home page.

2. Once they find the link, do they go straight to the donation page?
Far too many organizations take someone who’s ready to give on a detour, displaying page after page of opportunities to give appreciated assets, to make planned gifts, etc.

Finding the “donate online” link on these pages often isn’t easy. The ideal “donate now” link on the home page takes a potential donor directly to the donation form. Yet less than one-third of all sites we studied brought us directly to a donation form. The rest had an intermediate page; some had two or even three intermediate pages!

3. How complicated is your form to complete?
Once people get to your form, it should be straightforward and easy to fill out. The best format, according to testing we’ve done, is to first invite the donor to specify a gift amount, and if you have options for different funds, determine how the gift is to be applied right away.

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Watch for Part 2: ” Hints on How to Make Giving To You A Lot Easier”
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Questions about the online giving process? Or, how to improve your results? Ask Me.
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Rick Christ has been helping nonprofit organizations use the internet for fundraising, communications and advocacy since 2009, and has been a frequent writer on the subject. He delights in your questions and arguments. Please contact him at: RChrist@Amergent.com or at his LinkedIn Page

This posting was “provoked” by a question in an email.

In fundraising, as in sales, it’s targeted marketing that is most effective. But you can’t target the folks in your market until they’ve been identified.

Donor acquisition, the most expensive part of the “development/fundraising” process, is a necessary investment. And that’s what it is, an investment.

You spend $1, $2 or $3 to obtain a new donor, a new constituent, not to raise a dollar. To talk about cost-per-dollar-raised for donor acquisition is to not understand the process or its purpose.

Direct mail is, for many NPOs, an essential part of building a substantial base for the donor pyramid. And the factors that have the greatest impact on the results of donor-acquisition mailings are: the list selection process, the roll-out mailings, the testing of copy, etc. — all the tried-and-tested elements of the traditional direct mail program.

And such a program cannot be evaluated in its first six months of operation, its first year, or even two years. Three years, according to some direct mail experts, is likely the minimum period for such an evaluation — the period it takes to begin generating enough repeat contributions from newly acquired donors to have a direct mail program begin to “show a profit” from those donors.

And, if a Board is attempting to evaluate the performance of a new development person and/or the programs s/he has initiated, there needs to be some time, likely a multi-year period, for his/her programs — through the normal process — to begin to mature.

No matter on what level, or to what end we work with nonprofits, it wouldn’t hurt to have a broad-based background in development, before trying to apply to development/fundraising some theory of ranges or medians or marketing statistics.

And, the way of getting a N-P Board to understand the process, and the expected results-over-time, is to have them talk to people who have experience with and understand the process.

Certainly, if the members of a nonprofit Board and their CEO don’t know what to look for when they hire a development person, they sure aren’t going to know how to evaluate that person or his/her programs.

If you’re looking for advice on measuring the effectiveness of development programs, listen to the development professionals — everybody has opinions, but not everybody has the experience and expertise.
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Have a comment or a question about starting, evaluating or expanding your fundraising program?
Contact Hank Lewis. With over 30 years of counseling in major gifts, capital campaigns, bequest programs and the planning studies to precede these three, he’ll be pleased to answer your questions.

In workplace giving, workers solicit funds from their co-workers, and the Combined Federal Campaign (CFC) is the Federal government’s workplace giving program.

The CFC is a mandatory, completely voluntary program – and that’s not a contradiction.

It is mandatory because every U.S. Federal agency in the world must conduct a CFC campaign between Sept. 1 and Dec. 15 of each year.

It is voluntary because all of the organizing and soliciting are done by volunteers. And, there are many safeguards built in to prevent coercion from management about donating. This means that all of the nonprofits participating in CFC have anonymous volunteers helping their development efforts.

In the CFC, more than 97 percent of the monies raised are designated to specific nonprofits, and the vast majority of the donations are through payroll deduction.

Office of Personnel Management (OPM)
OPM is the Federal agency authorized to write the regulations to facilitate fundraising on behalf of charitable organizations through the solicitation of Federal employees and military personnel.

OPM regulations state that “The Combined Federal Campaign (CFC) is the only authorized solicitation of employees in the Federal workplace on behalf of charitable organizations.” In effect, a non-profit has only one way to solicit Federal employees for donations.

Think of it this way: this is a potential donor pool of more than three million employees who work for the same employer, an organization that already has a program in place that helps non-profits raise money.

In terms of actual giving, if the CFC were a foundation it would be the 10th largest in the US.

The CFC Recognizes Three Types of Charities…

National, International, and Local — plus federations for all three types.

National and international charities must apply directly through OPM, and local NPOs to a local board in each region, called the “Local Federal Coordinating Committee” or LFCC. National and international applications are due in January of each year, local applications in late winter/early spring.

The CFC Application Process and Eligibility

General Requirements:
1. The organization must be designated as a tax-exempt non-profit organization
   under section 501(c)(3) of the Internal Revenue Code.
2. An application to participate in the CFC must provide specific information
   about their auditing, governance and program functions.
3. Applicants must also provide a completed and signed copy of their IRS Form
   990 for their most recent fiscal year.

Requirements for financial statements are based on the size of the non-profit, and can be found at the www.opm.gov/cfc website.

The Federation: A Special Type of Organization
Federations are umbrella organizations that are composed of NPOs with a common theme/purpose, (health orgs, arts orgs, etc.). The Federation submits the application to the CFC, and often creates comprehensive marketing materials targeted at federal employees.

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In the next post in the CFC series, we’ll see why the CFC is the most donor friendly means of donating to non-profits for Federal employees.

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During his 25-year career in the Federal sector, Bill Huddleston, The CFC Coach, served in many CFC roles. If you want to get involved in the Combined Federal Campaign, maximize your nonprofit’s CFC revenues, or just ask a few questions, this is the guy to contact … Bill Huddleston1@gmail.com .

Some time ago, an email raised the question: “When you are setting your fundraising goal for the coming year, is there a formula or commonly accepted “rule” on which to base an increase over the prior year’s goal?”

There is a basic ethical rule in fundraising — that you cannot and should not raise more money than that for which you have established a need.

The strategic planning process of an institution, its annual planning and income forecasting all lead to the establishment of fundraising goals — goals that are established based on two major criteria.

The idea that an annual fundraising goal can be increased arbitrarily, not based on actual need, is counter to the whole concept of accountability to our constituents.

To raise money, we tell our prospects of our need, and ask them to help us meet that need. If we raise our goal beyond our institution’s actual (established) need, but still tell prospects we “need” their support, we are (in essence) lying to them.

Only if an increase in an annual fundraising goal is based on a real need — not a “we can always use the money” rationale, does it have legitimacy.

In addition, the existence of a need for additional funding is only half of the justification for increasing the goal. The other half has to do with whether that goal will be attainable.

Big rule in fundraising: Never set a goal that you aren’t sure you can meet. And that assuredness must be based on your fundraising history, your knowledge of your current donors, your potential donors, the state of the economy, etc.

In essence, you don’t want to risk not meeting a fundraising goal, as failing to meet a goal suggests to potential donors that your community/constituency doesn’t really support you. Such a failure can (often does) significantly reduce contributed income in subsequent years.

The mistake made by too many “development” officers, including the one who asked the question, is that they focus on the process, when they should be keeping their sights on the reason the process was created.

Bottom Line: Setting a fundraising goal is an involved process that requires serious thought and evaluation, not an arbitrary “rule of thumb.” See: Constructing The Gift Table and How To Use The Gift Table

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Have a comment or a question about starting, evaluating or expanding your fundraising program?
Contact Hank Lewis. With over 30 years of counseling in major gifts, capital campaigns, bequest programs and the planning studies to precede these three, he’ll be pleased to answer your questions.