Showing posts with label donor - investor. Show all posts
Showing posts with label donor - investor. Show all posts

Thursday, October 21, 2010

Creating A Donor For Life and Beyond!

One hard and fast truth when it comes to fundraising is that you can't fake sincerity. Oh, don't get me wrong there are lots of professional fundraisers out there who have developed a good poker face. But the truth of the matter is people want to be treated like people not like a cash register. Cha Ching!

Some people honestly think if they could just figure out which buttons to push the drawer will pop out and all they have to do is reach their hand in and get the cash they need. Rest assured those same people would skip getting the loose change but only think about the bills.

If you really want to understand the people you are trying to convince to give to your cause then you need to step back and ask yourself, what are you as a fundraiser and nonprofit offering the donor?

Creating a donor for life and beyond is possible, but you must first get the thought out of your head that you will achieve instant success. Realize like most worthy endeavors this is a long gradual process. Again, donors are not scratch and win tickets!

So how does one begin? First as an organization you need to realize your appeal is limited and it impossible to be universally liked. Also, you'll be expected to compete with many other distractions that are constantly changing in the life of your donor. While you might not personally care about this that does not negate the truth of the matter.

"No man is an island, entire of itself; every man is a piece of the continent, a part of the main." John Donne - Devotions upon Emergent Occasions (1623), XVII

We as individuals would like to think we can operate in our own little bubble and not have to worry about what goes on around us. However, no matter how wealthy a person might be we are all affected by the ills of society. In general we have concerns and sometimes fears. This reality can often be the bridge to nonprofits that are trying to address such needs. In some ways donors are the light switch that you find is either turned on, sending the much needed electricity through your nonprofit, or they are turned off and disengaged all together.

In order to determine the flow of electricity nonprofits need to be mindful of the meter. It is amazing now many staff members of nonprofits and boards of directors find themselves in a blame game. How often have you heard the phrases often said in a panic: Donor's aren't responding to our requests! I know the economy is bad so that must be why donations are down.

While I asked this question earlier I would like to again call your focus and attention to the question below. Read slowly and let it sink in this time: As a fundraiser and nonprofit what are offering to the donor?

Are you offering a chance of a lifetime, to change the life of an individual? Or instead, are you asking for mere operational money?

While nonprofits might be good at helping people they are often poor students of understanding basic human nature!

The best sales and marketing staffs in the world understand the human nature and intuitive relationship they must offer their customer i.e. in your case the donor.

Many folks have heard the old sales axiom: You are selling the sizzle not the steak! While any food will do to stop hunger, why do you choose a specific restaurant? All cars can provide you the basic transportation to get you from point A to B but why are you so focused on getting an SUV? It's time to buy light bulbs, but are you really buying the GE light bulbs or do you really only care about knowing that when you again turn on the switch the light pops on!

There are people who have made a profession to be "food artist" or "hand models." This is all done for one purpose and that is to create a perceived relationship between a product or service to a potential buyer.

So, Mr. or Mrs. Nonprofit I would like to introduce you to Mr. and Mrs. Donor. Let me tell you a few things you need to know about these important people. Unlike in the for profit arena, donors typically are not buying products or services from nonprofits, yet there is expectation that goes far beyond just a simple acknowledgement. They want to know that whatever dollars they choose to give you will be treated with honor and respect and used wisely.

The time after a donation is the most critical moment for any nonprofit. The donor has made the first step in starting a relationship with a prospective nonprofit.

Most nonprofits unfortunately fail to understand that when a donor makes a contribution they are not just giving dollars but are in fact transferring a level of trust to the recipient. This concept of trust is quite interesting and universal. At the core of this transfer is a strongly held belief by the donor that something worthy will come about because they chose to respond to either a call for action from the nonprofit or were self motivated to give to respond to a need that was perceived.

While donors might initially be attracted to the nonprofit by a passionate appeal, this connection will fade fast unless there is a plan of action to follow up and let the donor know the difference their contribution made.

This "action plan" is not one letter, one phone call, one face to face contact. If you want to build a lasting relationship you have to be willing to spend time to get to know your donor first as a person and individual.

Oftentimes nonprofits categorize donors as if they were grades of beef. Their reasoning tends to revolve around a logical mind set believing that it is more profitable and their best use of time to spend more time with donors of means than with donors who could not afford to give as much. Most nonprofits, therefore, are found roaming the countryside on a constant preverbal "buffalo hunt" with every other nonprofit going after that same big buffalo. Yet, I have never come across any community that is overrun with large population of donor buffalos.

Instead I can't help but realize that we are ignoring a truth that has been given to us in the Christian story of the Widow's Mite. If you are not familiar with the story let me share it with you:

Mark 12:41-44 41 "And he sat down over against the treasury, and beheld how the multitude cast money into the treasury: and many that were rich cast in much. 42 And there came a poor widow, and she cast in two mites, which make a farthing. 43 And he called unto him his disciples, and said unto them, Verily I say unto you, This poor widow cast in more than all they that are casting into the treasury: 44 for they all did cast in of their superfluity; but she of her want did cast in all that she had, even all her living."

So do you really want a donor for life? What types of individuals are you seeking to find and why?

If your focus is only on the money but not the donor commitment then you have lost a great deal of perspective in your process of fundraising. In order to find someone willing to make a life long commitment, however, nonprofits need to also have the realization that this type of relationship is in fact a two way street.

If honestly graded the vast majority of nonprofits would not be given a passing grade on their ability to not just find donors but to retain them.

Everyone wants a generous donor, well guess what, donors want a generous nonprofit too!

Providing feedback and information to all donors is critical if a nonprofit expects to receive future gifts. Likewise it is also important that staff members share their time and personal commitment story to the donor about their enthusiasm.

We all know staff members are paid to do their job and there is nothing wrong with this. However, donors have little respect for individuals when they think the people running the organization don't honestly care about the cause they are pushing.

Creating a donor for life and beyond by way of a planned gift is more than one person's job, but that of the entire paid staff and volunteer board. Meeting this challenge head on quickly separates nonprofits that just strive to be good to those that aspire to be great!

Sunday, March 28, 2010

Wanting To Be Heard!

No matter which side of the health care debate you fall it was obvious that people in both camps were feeling desperate to have their voice heard.

The generation of today is drawn to technology like a mosquito is to a bug zapper! Be it Twitter, Facebook, or YouTube your proud teen is happy to develop carpal tunnel syndrome by achieving new heights in daily texting a minimum of twenty minutes per day. People are buzzing like bees with no unified direction or focus in this grand “social networking” experiment that is tantamount to nothing more than glorified self absorption.

This fevered pitch cannot be maintained forever yet it is not surprising that this frustration is easily carried over to how many nonprofits feel trying to rise above everyday life’s noise to reach their respective donor.

It is hard to get a donor’s attention especially if they are worried about being able to keep their job in this economic slow down or because they are constantly answering their BlackBerry.

Regardless, while nonprofits bemoan this fact it is also quite ironic that nonprofits themselves often times forget that part of their responsibility to the donor is to also listen!

When was the last time you let your donor speak?

I’m not talking about asking them to fill out a survey or questionnaire to see if they think it is a good time for you to raise money for your upcoming capital campaign. What I am talking about is really focusing “one on one” to try to discern how the donor feels about your organization and what you are doing.

We all need to be reminded at times that we are given two ears and only one mouth for a reason!

So, as frustrated as you might feel, realize in this age of technology with all the applications and madness allowing the individual to say whatever they want. More than just a few of your donors might seem a little frustrated because they feel like for whatever reason real or imagined their voice is not being heard or enough attention has not been given to them.

Only you can change the outcome of this scenario. The question remains, will you act on what you have heard or just ignore it like the rest?

Monday, February 22, 2010

Understanding Donors and Their Money

It appears that there is a common misconception that nonprofits adhere to when thinking about donors and their money. This feeling, although never actually voiced, reflects an opinion that people who are wealthy must not “value money” in the same way as they might because they have so much more.

This outward perception can be verified by the fact that the vast majority of nonprofits have no system in place to thank donors who give at various levels.

It is interesting that the people wanting money for their cause have high expectations from donors. Nonprofits, however, tend to be deaf, dumb, and blind to the fact that donors themselves also have high expectations, and rightly so, they should!

Nonprofits need to appreciate every gift. Showing appreciation does not have to be expensive nor does it have to be overly time consuming but it does have to be intentional.

Donors are not going to feel appreciated telepathically!

Below are seven inexpensive ways to show you care:

1) A hand written note speaks volumes. The note itself tells donors that you took your valuable time and energy to deliberately think about the person and what they have done.

2) Taking time to stop by and visit your donors can be extremely important to stay connected. You can ask for their opinion and/or give them an update on your current programs. Regardless this tells someone you care enough about them to connect.

3) A greeting card: holidays, birthdays and anniversaries are all moments in time to stop and reflect on the moment. This moment can be personalized and yet another way you can connect with your donor.

4) Publicity: Listing donors online on your website, in a newsletter, or in a newspaper ad thanking everyone for helping make your event successful are outward ways to let the donors know their contributions matter.

5) Handmade items mean more. When we were children most of us have a memory of either making something handmade or being given something handmade. Regardless of how small or inexpensive this exudes a quality of the item being considered “special and something of value.” If possible have the clients you serve make something for donors. This act alone helps the donor quantify in their mind that a donation they might give is actually helping someone personally rather than just an organization that many times seem faceless and cold.

6) Chocolate & Candy! Again if you can make a fresh batch of homemade cookies, great! However, an inexpensive container of name brand candy is just another way to express your appreciation.

7) Create a focal point with a “wall of appreciation” at your program location as a way to publically thank donors. This will help the clients you serve understand what goes into making your programs work as well as bring proper attention to the donors. Obviously, having this wall is not enough but you need to invite the donor out to see your facility. Begin and end your tour at this special location! You honor them by letting them know that everyday their name on the wall is a reminder to the board of directors, staff and clients that without donor support the program would not be successful.

There are literally hundreds of ways to say “thank you” and connect with your donor. However, the real challenge is breaking out of the pattern of complacency and making an honest effort towards creating a donor centered nonprofit organization versus staying self centered and aloof.

To learn more visit: www.nonprofitexpert.com

Saturday, February 13, 2010

You Can’t Hate A Nickel, Because It’s Not A Dime!

In this economy we all feel like we are being nickel and dimed to death!

However, nonprofits shouldn’t hate a nickel, because it’s not a dime. Just be thankful you’re still getting something!

The days of going after only the “big buffalo” in fundraising are over. Billions of dollars in assets have been wiped out. Despite what you might be thinking about an economy, those dollars are gone and the mindset of individuals have changed. Notice, however, I did not say people will stop giving. I think people will continue to be generous but I do think they will be more specific in who they help.

If you will for a moment, I’d like for you chew on another phrase which is: It takes one to know one!

So, I’ve got a question for you. How many millionaire nonprofit staff members do you know? My guess is very few. So as a practical question do you think a millionaire thinks differently about giving than you might?

Let’s even unpack this more and drop down a level. Can nonprofit executive directors or professional fundraisers really appreciate what it means to give a large donation if they themselves have never given one? Does it really matter?

I am not trying to start a class warfare argument but what I am trying to do is help the reader realize that regardless of your income level I have never met a Zombie Donor!

In my job I receive phone calls or emails daily from not just nonprofit organizations but also from donors that have a specific idea of what they want to do or how they want their estate settled and are looking for answers on how best to move forward.

I am quick to tell everyone I meet that I’m not an attorney nor a CPA so I do not give legal advice. However, I am more than happy to share what I know, free I might add, as well as give links to other information or point them to other individuals I know and trust that I think can help with their individual situation.

Over the years I have talked to all sorts of interesting people including professional athletes, children of movie stars, doctors and yes even Indian chiefs. People from all walks of life and ages and almost everyone I come in contact with ultimately see as a goal to help someone else!

A real key for me taking the time to hear exactly what it is the person wants to accomplish and not pushing someone to a specific product or service.

Nonprofits might learn something from this. Instead of pushing your wants on a donor, find out what they want instead. What interests them about your organization?

Also a news flash for those that might not be aware: Just because someone has money does not mean they should give it to you just because you were kind enough to ask for it!

If you are going to get serious you have to understand that just showing up for work is not enough. You have to be willing to roll up your sleeves and put the time in that is required to make your organization a success. If you need help doing that just ask! Visit: www.nonprofitexpert.com