Archive for October, 2009

There is one step, and one step only, that can make the largest difference in your year-end fundraising results.

And it’s not letters or email or fancy packaging or phone calls or any of that stuff.

It’s this:

Identify the top 10-15 largest donors who gave last year but have not yet given this year – and go see them. Find out what is on their minds and ask them to support you this year.

Spending your time with these funding sources is clearly the absolute best place for you to be in November and December.

So go see these wonderful donors who already believe in you and have supported you in the past. They have already voted with their pocketbooks that they are sold on your mission.

These folks are pre-sold.

You won’t need to educate them, or spend a lot of time developing a close relationship, because it already exists.  It’s the most productive place for you to put your energy – especially if you evaluate the return on your investment of time and energy.

And if you added up the amounts that these funding sources represent, I’ll bet it is a substantial part of your year-end fundraising goal. All of us fundraisers know that it is the higher dollar donors who make the most difference in our totals.

Spend your time where the pockets are the deepest, if you want to raise the money that you  need.

If you don’t do anything else in your year-end campaign, you must do this.

I was reading one of my favorite blogs last week – For Impact – and just had to share this with you.  Tom Suddes and Nick Fedders (the For Impact folks) are two smart, and contrarian guys.

I highly recommend their blog – especially if you are in capital campaign mode.

It’s a dynamite addition to my “31 year-end strategies in 31 days of October.”  Here’s the most compelling advice you could possibly get to boost your year-end campaign strategy.

Here’s what they wrote last week.

“Just saw a note from one year ago today (19 Oct 08) in my journal… from über-investor Warren Buffett:

“Be fearful when others are greedy.
Be greedy when others are fearful.”

My parallel thought goes like this:

Be ASKING when others are hiding.
Be ASKING even when others are asking.

JUST ASK. It was almost a year ago when the economy crashed and everyone in the nonprofit world panicked. I wrote NOW MORE THAN EVER, where I basically said that this too shall pass….. and then that every For Impact organization needed to stay in front of its best investors (not hide under the desk).

I guess the recession is “officially” over. Dow just went back to 10,000. However, there is still a ton of people without jobs; and, clearly, things will never go back to the way they were.

For most of us in the third sector the DEMAND for our services and support has dramatically increased.

NOW MORE THAN EVER… we need to be out with our best CHAMPIONS and PROSPECTIVE INVESTORS.

Go forth… and JUST ASK!

Did you know that most donors check out your web site before they make a gift? – whether they are giving on line or through the mail.

A Kellogg Foundation study found that potentially up to 50% of your donors are going to want to check you out before they give, whether they give online or not. Here are questions you should ask about your site to see if it is hurting or helping your fudnraising campagin.

First, “your web site is now your front door,” advises Ted Hart in the 09 Year-End Strategies Telesummit. I interviewed Ted last week as part of the Telesummit and he shared a long list of things donors are looking for on your web site.

1. Does your web site represent you well? Does it tell a compelling, moving story? (i.e., photos of people helped by your organization)

2. When someone comes to your site, can they find out what they want easily?

3. What’s the call-to-action on your site? What do you want visitors to do?

4. Does it convey legitimacy and credibility?

Do you post info on your website that proves your nonprofit status? Do you post the names of your board members, i.e., members of the community who stand behind your organization? Does it say how is accountable for this organization?

5.  Are you offering people the ability to give online safely (through encryption technology).

6. Is there also a way to download a form that a donor can mail in or fax to you if they don’t want to contribute on line?

7. Are you offering people the ability to have a dialog with you? Is there some sort of interaction, such as a survey or a place to post comments? Donors want the ability to comment, to discuss, to learn more about you.

8. Do you have a physical address and phone number prominently displayed for easy access?

9. Does your web site share how past donations have been used? (This is where you can share your good news, terrific stories of what you’ve done with your funding.

10. Are you telling visitors how they can volunteer? (you certainly don’t want to give the impression that you don’t want volunteers!  But this topic is sometimes completely missing from a web site.)

Here’s what my new friend Dovie Prather of the Boys and Girls Clubs of America has to say about face-to-face “asks.”

Dovie is a true believer in the person-to-person appeal. She told me that she coaches her volunteers with these words:  “Don’t be shy about looking in your prospect’s eye and asking!”

I met Dovie at the Boys and Girls Club of America NE Leadership Conference where I gave a plenary presentation last week. I asked her about the BGCA’s year-end fundraising strategies.

Here’s how she motivates her volunteers to go out and visit people one-on-one to ask for support:

“While the recession has hurt many people, some people ARE still making money in the recession. We are still there for our community. The kids still need a place to go where people care about them. Our doors are still open for any kid who needs help.

You MUST go to your regular supporters with an annual ask.”

That’s a lesson for all of us:  go to the loyal donors we’ve always depended on. Those folks who we KNOW believe in our cause and our mission.

And what will we find?

They will still be there for us.

Dovie told me that their annual campaign strategy RELIES on the face to face appeal.

And when you are thinking that all those donors out there are feeling pinched and nervous about the economy, just remember this:

“It only takes ONE DONOR to make a difference in the life of a child.”

Here’s a worrisome problem with online gifts. (Let’s make our problem into our opportunity here!)

Did you know that donors who make their first gift to an organization via email are much less likely to renew their gift than those who give through the mail?

As direct mail guru Mal Warwick said recently in the 09 Year End Fundraising Strategies Telesummit, “What we have been discovering ironically is that lots of people seem to be wiling to make a first time gift online. But of course these numbers are relatively small compared to people who make first time gifts by mail or phone.”

BUT we have trouble renewing our on-line donors, by and large.”

Donors ARE likely to respond to a direct mail appeal after they’ve given once online.  Even though they probably would not ever give a second gift on line.

Here’s how you solve the problem: Provide incentives to donors to furnish their street addresses and then use the mail to get hold of them.

Of course, getting their phone number would probably work even better. But it’s going to be harder to get their phone number.

If you had their phone number, then you could phone donors to thank them for their gift – ALWAYS the best strategy.

So the moral of this story?

1.  Pay very careful attention to your donors who are giving online.

2.  Track the people who make a first time gift online.Create a monthly or weekly report that gives you the names and amounts of first time online donors.

3.  Create something appealing to your first time online donors that will incline them to give you their address. Perhaps it’s something free that you might send them, or tell them that you have a special thank you package for first-time donors that you’d like to send them by mail. Would they like to get your catalog? Or would they like to join your mailing list for alerts?

4. Followup by mail with those who provide their street addresses. Send them a special thank you package that makes them feel very special.

5. Put them on your list for future direct mail appeals.

If you don’t follow this strategy – you will likely lose those donors because they will not repeat their gift.  And I know you want to keep them!

In the 09 Year-End Fundraising Strategy Telesummit, direct mail guru Mail Warwick shared an amazingly simple tactic that can have a major impact on your donors’ generosity.

You would never think that this simple step can dramatically increase the return from your fundraising appeals.

Here it is:  Send a postcard or email to donors right before the fundraising appeal letter goes out. People will see the postcard or read the email a few days before their letter arrives in their mailbox.

This is very likely to increase response from those who get the email or postcard.

What you are doing is “warming up your donors.” (see my other blog post on warming up before the ask.)

What you might say is this – and this is from the transcript of Mal Warwick’s Telesummit interview – “I want you to be the first to know that we are soon to launch our year-end campaign.  Our goal is X. The theme is Y.  The deadline is December 31, and so on. . . .”

“You will receive a letter describing the campaign in a couple of days and I hope you will pay close attention and respond.”

This is clearly not rocket science, BUT it cam make all the difference. This is what I have alwyas called a “two-pronged appeal.”

First there is the warm up – an email, a phone call, or even a personal letter letting the donor know that they will be asked soon..”

Then there is the appeal itself.

I used this strategy when I was a staff fundraisser, directing the fundraising program at the Kenan-Flagler Business School at UNC-CH.  (Yes I am a TAR HEEL!)

And it was very successful! A no-brainer, easy to implement, that had a major impact on the success of my campaign.

You can use this in mini-campaigns too, such as soliciting your board or advisory board, or a special group of donors.

Try pulling out a segment of donors for this special treatment if you can’t do it for everyone on your donor list.

I think you’ll be surprised and pleased at your results!

We all talk about the need for a visual and emotional “hook” in our fundraising letters. But it’s really hard to pull off!

What you want to do is create a visual metaphor or a story that portrays your message. In the 09 Year-End Fundraising Strategies Telesummit, direct mail guru Mail Warwick calls this the “dynamite marketing concept.”

It’s something really compelling about the campaign that catches people’s attention and motivates them to learn more about it and eventually to responds.

Here’s what not to do!

Mal shared his perspective,”The problem is that nonprofit folks typically think what they need to do in their letters is to tell their donors all about the great work they are doing.

“They like to talk about the specifics of their work, the programs and projects they have in place, and then they think the donors will come running.”

But we really have to step back and get into the mind of the donor.

We have to determine which aspects of the work we’re doing would really appeal to the donor’s fundamental values and beliefs and what benefits that would provide.

This is very different from starting out an appeal letter “for 20 years the xxx organization has lovingly served xxxx group of people in our community.” (yawn)

Instead start your letter with a story. Just like the way lots of newspaper articles begin.

Perhaps it goes like this:  “Johnny Smith woke up Monday morning, hungry again.”

Wow, doesn’t that strike you in a completely different way?  It creates a visual narrative that draws the reader in. You want to keep reading don’t you?  Starting with a story is an amazing technique.

You could go on to say that Johnny lives right here in our community, and his single mother could not find work. You could talk about how many nights a week he goes to bed hungry. Or perhaps how he stuffs his empty backback with cafeteria food at school because he knows there is no food at home.

As you read this, you are forming pictures in your mind, aren’t you? It is generating an emotional feeling in your soft heart (I hope.)

THIS is the way to appeal to your donors’ hearts. And you’d be surprised at the result.

I’m just back from the Northeast Leadership Conference of the Boys and Girls Club of America where I spoke yesterday afternoon at their Regional Leadership Conference. (Love those BGCA folks!)

Here’s what Dovie Prather, the Senior Director of Development Club Resources for BGCA Northeast Region, shared with me about their year-end fundraising strategies.

(That’s Dovie in the picture right here along with Glen Staron, Vice President, Boys & Girls Clubs of America, Northeast Region, and me.)

Dovie spends her time coaching board volunteers and staff in the various Boys and Girls Clubs in her region – from Maine to Maryland.  She has worked with her share of reluctant board members who don’t want to go on fundraising calls.

But the staff needs the board members to help if they are going to make their goals.

And face-to-face visits are a key part of her year-end fundraising strategy recommendations for her Boys and Girls Clubs.

She’s counting on those one-on-one calls for $1k or more with key supporters to help the Clubs meet their goals. (See my earlier blog post on Focusing on Individuals to Make Your Year-End Goals). We all know that we can count on individuals this fall far more than we can count on our foundation and corporate supporters.

But most of her board members think they won’t be successful in face-to-face visits. And she doesn’t really want to send the board members out alone anyway.

So here’s her solution:

She asks board members to accompany staff on these calls. Many times all the board member has to do in the call is to tell their own personal story about why they are involved in Boys and Girls Clubs.

A board member’s personal story is a very, very powerful in-person, live testimonial. And it happens right there in the call in front of the donor. Bringing a board member along to share their story is a bit like bringing a portable live testimonial with you.

We all know that stories are more powerful than facts. And that a volunteer’s endorsement is more powerful than anything we can say or do.

Be sure you include face to face visits in your year-end fundraising strategy.  And bring board members along.

It just might make all the difference!

Here’s a guest post from a smart colleague of mine: Amy Eisenstein.  In her newsletter today, she gave us 7 ways to strengthen our end of year fundraising appeals.  (Check out her webiste:  Tri-Point Resources; she has lots of great information and an excellent newsletter.) Here’s a dynamite list of things you don’t want to forget!

Amy says:

“I spoke to a group of almost 50 fundraisers this morning, from a variety of non-profits in Wilmington, DE, and only a quarter of them had started drafting their year-end appeal!

If you are like so many others who haven’t started your annual appeal letter, what are you waiting for? Time is running out.

You can’t be late with your appeal this year, because people with limited resources are going to give to the first organizations that come knocking.

1.      Create a timeline and work backwards.
When do you want appeal letters to land in mailboxes? Early November is ideal, but anytime before Thanksgiving will do. December is late!  The mail house will need a week, as will the printer. You probably need a week to write the letter, and a week for board members and others to write personal notes. (That’s a total of 4 weeks.)

2.      Contact vendors (printer and mail house) and get quotes.
Select your vendor and discuss timelines with them. Make sure they can work under your deadlines and understand the urgent nature of your appeal.

3.      Develop a concept and write your letter.
Include personal stories, client quotes, and photos, when appropriate. This is your opportunity to tell your supporters what you accomplished this year, and who you have helped. They should feel the tug at their heartstrings!

4.      Create a Business Reply Envelope (BRE)
Don’t send your appeal without one of these. Start saving ones you get in the mail as samples for next year. The reply envelope is another place to tell your story, such as your mission or more quotes. Ask for specific amounts, such as $25, $50, $100 and Other. Remember to collect donor information for your database, including address, phone number, and email address.

5.      Personalize, personalize, personalize.
-  Segment your list. Can you send different letters to board members, donors, non-donors, and lapsed donors?
-  Always use Dear Amy, not Dear Friend.
-  Ask board members, staff, and volunteers to write personal notes to people they know (and those they don’t).
-  If you can handwrite envelopes to your largest donors, you should.

6.      Use “live” first class postage.
This is not the time to use your bulk mail permit or postage meter.

If the envelope doesn’t get opened, it doesn’t matter how good your appeal is. Don’t let your appeal end up in the trash before being opened. First class stamps and handwritten envelopes exponentially increase your open rate.

7.   Follow Up
-  Before the appeal is mailed, write generic thank you letters. Have a system for how they will get out, as fast as possible.
-  Implement a thank you calling system. Ask board members to help make thank you calls.

A thoughtful thank you goes a long way in securing the next gift. Stand out this year as an organization that is extraordinarily grateful for the donations you receive!

Take a look at this stack of mail.

When will your donor even sort through all this stuff? Will your donor even notice your appeal letter?

And what are the chances that your donor will actually open your letter?

Let’s see if we can stack the deck in our favor and increase the odds she’ll open and read our letter.

Let’s tell a story:

Here’s Jane Smith, a long-time friend of the SPCA (insert your cause here!).  She’s harried.  She’s late to pick up her kids from after school care, and now she’s rushing to the grocery story to get some dinner.

It’s a cool autumn evening, and Jane’s hugs her sweater tightly around her as she drives home.  She walks in the door, throws the groceries on the table, and heads to the mailbox to pick up the mail.  She distractedly flips through masses of mail – junk mail, political ads, newsletters, bills – you name it.

Will YOUR ENVELOPE attract her attention? Let’s go on with the story and see what happens.

Jane’s busy but something in the mail stack catches her eye.

It’s an envelope in an odd color.

It stands out. She picks it up and sees that it’s your return address.

Then she notices that there is a REAL STAMP on the letter.  Gosh, this must be a special letter. It has been hand stamped. Jane knows that this is no junk mail piece. It’s something meant especially for her.

Then she notices that several board members she knows have personally written their names above the return address. It looks a bit messy with three signatures up there, but she can immediately tell that this is indeed a special letter, meant for her alone. She thinks, “how nice of them.”

Finally, she notices that her address is hand written. Someone has taken the time to hand address her letter, and she feels pleased and complimented.

Clearly this is a special communication to Jane. Calling hello to her husband as he walks in the door, she stops walking and OPENS YOUR LETTER.

THEN SHE READS IT!  : )

Moral of the story:

1. Use a bright colored envelope.

2. Use a real stamp.

3. Have someone personally write their name above the return address on the front or back of the envelope.

4. Hand-address the envelope.

You can take it a step further and have something specially printed on the outside of the envelope. That also can encourage someone to open your appeal.

Try these and you’ll be surprised with more attention from your donors and more responses with donations.