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!

Planned Giving

Many times nonprofits fall into basically two distinctive camps when it comes to talking about planned giving.

First you see small nonprofits with limited staff and budgets that are totally consumed with running their organization and raising the money. They simply don’t feel like they have the time to devote to something that on its face seems so nebulous.

The second type of nonprofit organization is one that is bigger possibly better funded but more than likely does not have one person who is just devoted to only fundraising but it is the job of several which obvious includes in large part the board of directors. Even in this organization planned giving and creating an endowment appears to be more of an after thought versus something that is in the forefront. Instead of thinking about funding that might strengthen the future of the nonprofit they focus solely on what they can see directly in front of them by way of their annual campaign.

If the organization is more motivated many times you see an effort on their part to offer seminars to “help the donor” with their estate planning. The assumption here is that the donor has no other help. While I’m sure this effort helps the proverbial little old lady in the shoe I can only give this organization a C+ for at least addressing the topic of “planned giving.” In my opinion this is not the best motivational tool to encourage someone to give. In fact, when I receive a note from a university or other agency inviting me to a seminar to hear someone I have no knowledge of or have never established a level of trust with, I get more than a little irritated.

I recently read that 70% to 90% of all planned gifts to charity are made with the charity having no knowledge until after the donor’s death. So much for thanking your donor, huh!

So how can this change and who is the best to guide you on his journey? First while I am sure there are a number of well qualified consultants I would like you to give each one a little test. Ask them if they themselves have made a planned gift! If so ask them to tell you about it and why they made it. If they tell you, no, then I’ll let you decide.

It is one thing to tell you what you should be doing and another to have actually done it. I am happy to report that long before I became a consultant for nonprofits I began my philanthropic career at an early age. Giving was both taught by example as well as in actions taken after making an effort to get involved and feeling a sense of responsibility to help others.

By the way as a consultant that does almost all pro-bono work I’m not trying to get more business. Trust me, I’m already busy!

Anyway, I currently have several planned gifts funded by insurance policies. While many organizations might shy away from this type of gift because the giver can always choose to stop paying the premium, I started at a young age so it was something I felt I could afford to do. I realized back then that long after I was gone it would have a lasting effect and impact on the lives of others.

I wish I could tell you that in my case the nonprofits involved did all the right things and were active in keeping me involved, but that would be lying. The fact of the matter is the planned gifts I made were self driven.

A few facts nonprofits need to understand. First less than half of all Americans have a will and the ones that do only 8-9% include a gift to charities. The good part about that percentage is that once a charity is included 97% of the time they will remain in the will.

So how does one go about actively finding that individual who might be willing to make that planned gift?

The answers, while quite simple, are ones that need to be thought about as you review your donor database. People who make a planned gift “care” about the organization as a whole. This level of caring is something that is not often studied or talked about but is something you as a nonprofit need to develop with each and every donor you meet.

You need to make sure that when someone gives to your organization you have some method of establishing that that gift has a greater sense of purpose.

We all at some point have written a check for a utility bill or phone bill. You know the feeling you get seeing the figure owed and thinking about what you paid last month, looking at your balance in your check book and writing the check. Even if you now are doing all these transactions online, unless it is automatic draft, you still have a certain thought process.

The worst thing that can occur to a nonprofit is when a donor makes a donation in the same rote, lifeless automated response. When this happens there is little joy in making a gift. Much like helium birthday balloons with a slow leak, eventually there is nothing happy about it at all.

Coupled with the sense of caring about your organization is another deep rooted emotional response a donor has is the need to do something special.

We all understand what it means to have someone go out of their way to do something nice for you. Not because they have to but because they want to. In this same spirit of openness the donor seeks to share a literal part of their self with the organization.

Sadly most organizations are so self absorbed that if someone truly does care to that level it is missed completely by the leadership. Even if the board or staff recognizes that this person is really special to the organization often times there is a lack of response as a way of just saying thanks for being there.

Many nonprofits, especially those that really don’t understand what giving is all about, incorrectly think that “rich people” want to give to a nonprofit because something is in it for them like a tax deduction. While no one likes to pay more taxes than they have to 65% of the time a gift to charity in a planned gift is NOT for estate tax reasons.

Lastly, I have said this many times and it is worth repeating.

People give to people first before they give to the organization.

So, get out of your comfy office and go visit your donors. Spend some time getting to know them! But let me warn you first, if your motivation is only because you’re thinking about a gift and not a friendship then realize that your will not be able to hide your insincerity, so don’t stay long.

If you have any questions feel free to send me an email or visit my website at: www.nonprofitexpert.com

The Story of Generous Joe

As strange as it might sound Generous Joe is really concerned and confused about what he should do with all the money he has made and inherited. He has amassed quite a sum and he is not getting any younger. As the old saying goes: “You can’t take it with you!” Yet, despite what some might think, Joe has yet to see a hearse pulling a U-haul.

After all the struggles of life it just doesn’t make sense that in making your final plans on how to settle your estate it should be this hard! All the professional advice and legal loop holes trying to keep that distant relative Uncle Sam out of the picture still has left Joe wondering what he should leave his friends, family members and even to some of the nonprofits he has supported over the years.

Joe is one of those guys driven by a combination of logic and deep feelings. He is a softy at heart and is generous with the money to a fault. However, he tends to look at the pattern of others behavior when making smaller gifts and consciously judges not only the reaction of how the money is accepted and appreciated but also what choices are made with that money when it is actually spent.

Regardless of the circumstances when it comes to Joe helping someone the last question in his mind always defaults to: Am I really helping this person or am I just being a facilitator of bad judgment? While this might appear harsh to some that don’t know Joe he would assure you that this is based on his real life examples that he can point to over and over again.

He knows more than most that many people live their life by crisis and honestly hope that their “crisis of the moment” will also becomes yours as well. Especially if you are someone that is willing to help!

For Generous Joe this often times surfaces as a person asking for money to help pay a bill or get them out of a jam that they worked themselves into. Joe realizes everyone needs help at some point but for others it is more of a lifestyle choice rather than a tragic unexpected event.

When a crisis occurs close friends and/or family members are generally open to pleas for help and for the most part honestly don’t mind helping. However, while people like to think in their mind they can give a gift that comes with no strings attached, the reality is everyone has a tendency to closely view the future actions of these individuals because when we give money to someone we are making an investment in that person. Naturally we want to feel that our choice was a good one.

Unfortunately for Generous Joe he finds himself being disappointed again and again because it seems that the pattern of behavior that got the person in trouble in the first place hasn’t changed. Nor will it change, unless the person wants to or is forced to change.

Example: Joe has a friend named Vicky and he hated to see her struggling and constantly being so stressed out. He wanted to help and saw Vicky was always in a constant crisis and never had enough money to pay her bills. She owed a ton of money on her credit card bill, her car insurance was due, she had not paid her property taxes for several years on the trailer her parents had given her and her phone was disconnected again. She had borrowed all the money she could from her parents and they could not help anymore. She had been out of work for two weeks before finding another job but her world seemed to be collapsing around her, and she was constantly crying and depressed. Joe sat down with Vicky to assess her situation and added up all her outstanding bills and wrote checks to everyone she owed to wipe out all her debt. Within a year she was back in the same situation! How could this be?

Vicky’s freedom was short lived because she had never lived without debt and no one in her family had ever been debt free. Being out of debt had no meaning or value to her and she always had a wish list in her mind. Shopping was not based on her need but on her wants and she wanted it all! Her only concern was how much was the monthly payment not what it actually cost. Since Joe took away all her payments she was free to start over. Most are not as lucky as Vicky to have someone willing to step in and be that generous. Yet, unfortunately this story has repeated itself over and over again for Joe to the point where he no longer feels as compassionate as he once did.

For Joe family is important and he has plenty of nieces and nephews he could shower with wealth but he can’t help but wonder will that just poison them in the long run. Being spoiled is one thing but being out of control is another.

Finally Generous Joe enjoys being involved in the community with various nonprofit organizations. Last year Joe gave away thousands of dollars to charity but this too felt hollow because none of the groups he supports go much further than to send a receipt and sometimes that doesn’t even happen.

It is easy to see how Generous Joe can get jaded yet for whatever reason he hasn’t given up quite yet.

To date Joe has given away over seven hundred and eighty thousand dollars with planned gifts of over a million dollars. Maybe one day soon Joe will find the answer he is looking for, but until then, it wouldn’t hurt for you to look over your donor list to see if you can find your own Generous Joe and make sure he or she feels appreciated.

Nonprofit Bottom Fishing

Nonprofits spend an enormous amount of time and energy focused on seeking grants from foundations. I am not opposed to nonprofits finding funding where they can the simple facts remains:

Approximately 75% of all charitable giving comes from individuals and an additional 8% comes from planned gifts. Foundations account for approximately 12% of charitable giving and corporate contributions represent only 5%.

So are nonprofits in fact spending more time than necessary i.e. bottom fishing for contributions that are less frequent and harder to come by than actually spending more time focusing on where the money really comes from?

As a husband of over 20 years there is a phrase my wife says and continues to say as we build our relationship and that is spending “quality time” together!

The only real way nonprofits can grow their donor support is through lots of hard work, time, and effort. The keyword however is “time.”

You can choose to spend your time writing all the grants you want, but as most grant writers will confess the vast majority of grants are short term monies for a specific program or time period. Plain and simple, if your nonprofit lives by the grant, it will die when the grant runs out. By focusing so intently on getting grants nonprofits unfortunately have a tendency to slowly lose their identity, bending to mold and shape itself to fit what the foundation decides to fund.

Likewise, you can choose to spend your time differently.

Taking the example of a personal relationship for a moment I would challenge you to ask yourself this question. What makes you as an individual more likely to want to spend time with someone? Obviously, there has to be a common interest for the connection to work. You need to “get to know” what the other person likes or dislikes. We have all heard the cliché: Understanding what makes a person tick.

So, as a nonprofit what common interest do you have with your donor? How well do you know what they like or dislike about your program? Have you taken the time to ask or get to know them and what makes your donor tick? What are their motivations?

The only way you find out these answers is to spend time asking questions. If nonprofits spend more time asking open ended questions to their donors and really hearing what the donor is saying then I honestly believe less time would be needed for fundraising.