I'd like to start this thought process by asking you a few questions: Do you think it if takes you less time to earn $100 the value of that money changes? Let me put it another way, do you believe $100 means more to a person making $50,000 a year than to someone who makes $250,000 a year?
Apparently, many nonprofits are confused when answering these questions because the value of money seems to change! It is almost magical and there is a REAL presumption that more you make the less value the money must have. But is this true?
If you make more or have more money there is a reason. Granted this reason may be because the person was born into wealth or maybe because the person inherited a lot of wealth. People also make different amounts of money in relation to their education and/or job skills. The reason different people have more money than others depends on all sorts of different situations.
Regardless of how the money was received let's step back again and look deeper into the question of the value of money.
The paper and coin you hold does not discriminate against the buyer. In our example of $100 the same amount of gas or food can be purchased so what is the difference?
Well, it is because one person has more than the other person! Ok, so this means the more money you have the less value you place on it simply because you have more?
Really, is that logical?
Well, it is not just because one person has more than the other; it is really because the more money you have the "easier" life is for you. You know because you don't have to worry as much about different "things.”
Wow, so more money equals happiness and worrying about less "things"! Ah, wouldn't it be great if life were that simple where you could always count on a + b
equaling c no matter what day of the week it occurred.
Nonprofits need to understand that the people they are seeking to get a donation from know the value of money just as much as they do. If you make a personal donation to a cause I would suspect you are not doing so in a blind fashion, but responding in either in a very logical way or because of a certain emotion or attachment you feel for the organization.
Don't assume because someone might earn more or have more money than you do that the money somehow means less to them, because in most cases it does not!
Money does not make you worry less nor does it buy happiness. If it did all the millionaires in the world would be happy about life. Money is a tool, in the right hands it can create many things, but it is not the solution to fixing all problems!
Showing posts with label nonprofit donors. Show all posts
Showing posts with label nonprofit donors. Show all posts
Thursday, April 8, 2010
Friday, February 12, 2010
Nonprofit Survival Tips
For many people it seems now more than ever that the world in which we live is different. When this change occurred is hard to pinpoint exactly. Some might say September 11th was the time that brought the world’s problems closer to home. Others might direct you to a different date.
Regardless, most people feel at the very least uneasy! It is hard to think that “this” is the new normal, but the reality is crystal clear that things will never be like they use to be in the past.
With so much uncertainty our own survival instincts slowly start to kick in and we individually think it is best if we just pull in. At this point it is paramount that you start the process of taking a mental inventory of yourself and learn what it means to: Know Thy Self.
Likewise nonprofit organizations need to take this same step as well. Go back now and look at your mission statement and make sure you are focused on what it is you said your purpose was for existing. Is the organization doing what it said it would do or has it gotten side tracked because it was able to get grant monies that sent the organization in a totally different direction?
Unlike individuals that might feel a real need to pull in and in some ways hide, nonprofits need to be the absolute opposite. This is your time to shine! The old cliché is true that “out of sight is out is out of mind” so it is up to your organization to be diligent in making sure you get all the public attention you can making sure everyone knows the programs you offer and the difference you are making daily in the lives of others i.e. Toot Your Own Horn!
Keep Your Friends Close: If you really stopped and asked a person to write down a list of all the friends they have the list might be several pages long, much like your donor list. However, if you pressed the issue a little more and ask the person to tell you who they think they could count on if they really needed help? Most people’s list would shrink to only a hand full. With that in mind, I would contend that nonprofits with small budgets probably have never heard of the term “donor cultivation” much less practice the steps needed to accomplish this task. In short, many nonprofits appear to be fair weather friends and lack the energy or will to sustain a long term relationship. This needs to be corrected if you want to have any friends at all you can really count on when you need them most!
Have you been shopping lately? Have you noticed smaller sizes but the same price? Also, have you felt like you are seeing more messages like: Save Now, Half Off or Valuable Coupon!
Granted we all want a deal and in fact we are being conditioned that the regular price is not acceptable. This prevailing attitude has and will make every consumer look closer at what we spend. As consumers we are also looking closer at the “quality” of what we spend our money on and the “quality” of what we are getting to make sure it is a good value.
A regular nonprofit is no longer acceptable! You heard me right, the survival of your nonprofit depends on how your new and improved version not only looks but how it functions. It is nothing new to nonprofits to be diligent with the money they have. Trust me nonprofits know all too well about how to live on ramen noodles! To not only survive but thrive in this environment your nonprofits must establish their: Point Of Difference.
What makes your nonprofit unique and what makes your nonprofit valuable? The standard bearer can no longer be anecdotal evidence of how good your nonprofit might be but you have to be able to back up what you are saying up with raw data and fact.
In uncertain times another point that is critical for survival is Keeping The Faith! You have to know that you can weather this storm no matter how long it might last. This is critical because nothing will kill a nonprofit faster than the prevailing attitude of its employees. If the people working for the organization think they are on a sinking ship then all the buckets will have holes.
To help you keep the faith you need to put your situation in context and for that you need to: Count Your Blessings.
Nonprofits are fluid organizations and many times the turnover in both staff and board members are so great that the long term institutional memory vanishes. A great deal of good would come if nonprofits have a social gathering and invite all the past board members and especially all the past presidents as well as others in your community that have played and currently play a vital role in not only establishing your nonprofit but making it grow. This introspective look should be a time to celebrate and really see how far you have come as well as reconnect those lost ties that bind!
Lastly, in order to survive you need to: Say Thank You! I can guarantee that if more nonprofits would commit to this one tip in a year’s time they would see a tremendous positive change in their organization.
I realize it is hard to create a habit, but I would like to challenge all nonprofit professionals to daily call a donor and tell them how much you appreciate them or write a note to a donor and mail it everyday! If you have to, place a calendar over your computer screen, on top of your phone or just somewhere you will have to look at it to remember. Mark off each day with an X when you accomplish this small but important task.
Likewise, ask your board to make a commitment and either call or write at least one donor every month i.e. assign names to specific individuals. Make it a point at your monthly meeting to reiterate how important this is to your organization and make sure to follow up with how everyone is doing.
Remember, Your Survival Depends on It!
Regardless, most people feel at the very least uneasy! It is hard to think that “this” is the new normal, but the reality is crystal clear that things will never be like they use to be in the past.
With so much uncertainty our own survival instincts slowly start to kick in and we individually think it is best if we just pull in. At this point it is paramount that you start the process of taking a mental inventory of yourself and learn what it means to: Know Thy Self.
Likewise nonprofit organizations need to take this same step as well. Go back now and look at your mission statement and make sure you are focused on what it is you said your purpose was for existing. Is the organization doing what it said it would do or has it gotten side tracked because it was able to get grant monies that sent the organization in a totally different direction?
Unlike individuals that might feel a real need to pull in and in some ways hide, nonprofits need to be the absolute opposite. This is your time to shine! The old cliché is true that “out of sight is out is out of mind” so it is up to your organization to be diligent in making sure you get all the public attention you can making sure everyone knows the programs you offer and the difference you are making daily in the lives of others i.e. Toot Your Own Horn!
Keep Your Friends Close: If you really stopped and asked a person to write down a list of all the friends they have the list might be several pages long, much like your donor list. However, if you pressed the issue a little more and ask the person to tell you who they think they could count on if they really needed help? Most people’s list would shrink to only a hand full. With that in mind, I would contend that nonprofits with small budgets probably have never heard of the term “donor cultivation” much less practice the steps needed to accomplish this task. In short, many nonprofits appear to be fair weather friends and lack the energy or will to sustain a long term relationship. This needs to be corrected if you want to have any friends at all you can really count on when you need them most!
Have you been shopping lately? Have you noticed smaller sizes but the same price? Also, have you felt like you are seeing more messages like: Save Now, Half Off or Valuable Coupon!
Granted we all want a deal and in fact we are being conditioned that the regular price is not acceptable. This prevailing attitude has and will make every consumer look closer at what we spend. As consumers we are also looking closer at the “quality” of what we spend our money on and the “quality” of what we are getting to make sure it is a good value.
A regular nonprofit is no longer acceptable! You heard me right, the survival of your nonprofit depends on how your new and improved version not only looks but how it functions. It is nothing new to nonprofits to be diligent with the money they have. Trust me nonprofits know all too well about how to live on ramen noodles! To not only survive but thrive in this environment your nonprofits must establish their: Point Of Difference.
What makes your nonprofit unique and what makes your nonprofit valuable? The standard bearer can no longer be anecdotal evidence of how good your nonprofit might be but you have to be able to back up what you are saying up with raw data and fact.
In uncertain times another point that is critical for survival is Keeping The Faith! You have to know that you can weather this storm no matter how long it might last. This is critical because nothing will kill a nonprofit faster than the prevailing attitude of its employees. If the people working for the organization think they are on a sinking ship then all the buckets will have holes.
To help you keep the faith you need to put your situation in context and for that you need to: Count Your Blessings.
Nonprofits are fluid organizations and many times the turnover in both staff and board members are so great that the long term institutional memory vanishes. A great deal of good would come if nonprofits have a social gathering and invite all the past board members and especially all the past presidents as well as others in your community that have played and currently play a vital role in not only establishing your nonprofit but making it grow. This introspective look should be a time to celebrate and really see how far you have come as well as reconnect those lost ties that bind!
Lastly, in order to survive you need to: Say Thank You! I can guarantee that if more nonprofits would commit to this one tip in a year’s time they would see a tremendous positive change in their organization.
I realize it is hard to create a habit, but I would like to challenge all nonprofit professionals to daily call a donor and tell them how much you appreciate them or write a note to a donor and mail it everyday! If you have to, place a calendar over your computer screen, on top of your phone or just somewhere you will have to look at it to remember. Mark off each day with an X when you accomplish this small but important task.
Likewise, ask your board to make a commitment and either call or write at least one donor every month i.e. assign names to specific individuals. Make it a point at your monthly meeting to reiterate how important this is to your organization and make sure to follow up with how everyone is doing.
Remember, Your Survival Depends on It!
Wednesday, September 2, 2009
How Nonprofits Attract Donors
First, nonprofits need to be fully aware that not everyone is a donor or wants to be a donor to your cause! For some reason many nonprofits think that just because they "do good" that everyone should be attracted to their cause, which is simply never the case. Nonprofits need to learn to cultivate donors by making connections with individuals that are really interested in what they are doing!
Also, realize that just because you have Ms. X, who is a donor or maybe even on your board of your organization, and she is friends with Ms. Y, who is known in the community as very generous and donates lots of money to causes, does not mean you should have instant access to go knocking on her door and expect a huge contribution. You have to learn as a nonprofit to really work at building a relationship and EARNING the right to ask for a contribution! While it is true that people give to people, sometimes regardless of the cause, if you are looking for long term donors you're going to have to work a little harder!
Do people in your community really know that your organization exists? If not, then you need to be like any other good business and get the word out and advertise. Don't expect everything free either! Be creative! Do you have a newsletter? Are you talking at civic groups? Are you listed in the phone book? Do you run an ad in the newspaper? Do you have a billboard? What are you doing to create your point of difference between your nonprofit and all the others out there in your community?
One good way to cultivate new donors is to have an open house. Lots of hard work up front has to happen in order to get people to come out, but in doing this you are casting a large net asking people to come see what you are all about. Realize that just because someone might stop by does not make them an instant donor! Take it slow. Example: Most folks hate going into a store shopping and having a pushy salesperson, right? So you don't need to be the pushy salesperson in your nonprofit. Show your best side, make a good first impression so there will be a chance for another connection later. If possible get people to give you some information about themselves so you can follow up with them later. If nothing else just send them a card saying thanks for stopping by!
** Very Important** People want to be a part of a success and a winning team not a sinking ship!
If people come to your organization and get nothing but a sob story then your chance of success will be limited. Getting a "pity donation" is a one time donation and you will quickly be forgotten and replaced by another organization that is offering more hope of success.
Also, I hate to be the one to break the bad news but, there is no one size fits all solution to creating success in all nonprofits! Each case is different and all nonprofits have different strengths and weaknesses. If you need help....I'm here to be a sounding board, just send me an email: john@minges.com. Also, make sure to vist my website www.nonprofitexpert.com for more information.
DISCLAIMER: This information is not intended to provide legal or accounting advice, or to address specific situations. Please consult with your legal or tax advisor to supplement and verify what you learn here.
Also, realize that just because you have Ms. X, who is a donor or maybe even on your board of your organization, and she is friends with Ms. Y, who is known in the community as very generous and donates lots of money to causes, does not mean you should have instant access to go knocking on her door and expect a huge contribution. You have to learn as a nonprofit to really work at building a relationship and EARNING the right to ask for a contribution! While it is true that people give to people, sometimes regardless of the cause, if you are looking for long term donors you're going to have to work a little harder!
Do people in your community really know that your organization exists? If not, then you need to be like any other good business and get the word out and advertise. Don't expect everything free either! Be creative! Do you have a newsletter? Are you talking at civic groups? Are you listed in the phone book? Do you run an ad in the newspaper? Do you have a billboard? What are you doing to create your point of difference between your nonprofit and all the others out there in your community?
One good way to cultivate new donors is to have an open house. Lots of hard work up front has to happen in order to get people to come out, but in doing this you are casting a large net asking people to come see what you are all about. Realize that just because someone might stop by does not make them an instant donor! Take it slow. Example: Most folks hate going into a store shopping and having a pushy salesperson, right? So you don't need to be the pushy salesperson in your nonprofit. Show your best side, make a good first impression so there will be a chance for another connection later. If possible get people to give you some information about themselves so you can follow up with them later. If nothing else just send them a card saying thanks for stopping by!
** Very Important** People want to be a part of a success and a winning team not a sinking ship!
If people come to your organization and get nothing but a sob story then your chance of success will be limited. Getting a "pity donation" is a one time donation and you will quickly be forgotten and replaced by another organization that is offering more hope of success.
Also, I hate to be the one to break the bad news but, there is no one size fits all solution to creating success in all nonprofits! Each case is different and all nonprofits have different strengths and weaknesses. If you need help....I'm here to be a sounding board, just send me an email: john@minges.com. Also, make sure to vist my website www.nonprofitexpert.com for more information.
DISCLAIMER: This information is not intended to provide legal or accounting advice, or to address specific situations. Please consult with your legal or tax advisor to supplement and verify what you learn here.
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