Archive for the ‘Fundraising’ Category
Posted by Gayle Gifford on August 8, 2011 in Fundraising, Research
In the Summer 2011 issue of The Nonprofit Quarterly, you’ll find an intriguing article, “Fundraising Education: A Fork in the Road?”.
The authors, both professors at Indiana University, home of The Center on Philanthropy, lament the depressingly statistic that giving in the US has been static for decades at just 2% of GDP. They suggest that more robust interaction between academic research and practice — and more academically educated fundraisers – is a potential solution to lifting us out of this giving doldrums.
We can talk more about this at another time.
But what particularly caught my eye was an assertion, that if true, every fundraiser should be aware of now.
The authors stated:
“… by simply changing the words in their solicitation to provide donors with social information, [fundraisers] could increase the value of giving by an average of 10 percent.” (Emphasis added)
WOW! What fundraiser wouldn’t want to increase solicitation returns by 10%?
Immediately intrigued, I wanted to know how to do this. First, I had to decode what the authors meant by social information. (You might have been asking yourself that same question.) Read More >>
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Posted by Gayle Gifford on July 26, 2011 in Fundraising, Little ideas, Tidbits
I was just thinking about these, and thought I’d share. What would you add to the list?
1. A gift pyramid is really helpful to determine the level of effort you need to raise money. It’s not just for big campaigns. You can use it to plan for special events and even annual giving programs. See how one works online at blackbaud.
2. If their website doesn’t list them, you can discover what grants foundations made in what amounts to what organizations by looking at their 990-PFs. You can find those on Guidestar or The Foundation Center’s 990 finder.
3. The Center for What Works has free sample logic models for 14 types of nonprofits.
4. You can find a lot of really helpful data through the Census Bureau, e.g. how many wealthy households are in your community. Get acquainted with their American Factfinder.
5. You can get low cost technology products (and free advice) at TechSoup.org
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Posted by Gayle Gifford on June 13, 2011 in Effectiveness, Fundraising, Tidbits
About two months ago our hot water heater broke and we had it replaced. (Reminder: check the age of your hot water heater). I still haven’t gotten the bill from the plumber.
As a small business person myself, I had to wonder how my plumber could stay in business with such delays in invoicing. I guess cash isn’t a problem for them.
What’s this got to do with your nonprofit? It made me think about delays around money.
As a donor, it makes me crazy when I mail a check for a contribution to an organization I care about and the check doesn’t get cashed right away. Let me say that my definition of “right away” stretches to a few days (I’m willing to give small organizations some leeway, though they tend to really need the money the most).
But after that, the failure to cash my check raises a series of doubts in my mind:
- First, did my check arrive at all?
- Second, did they really need my gift so much if they don’t feel a need to deposit it in their bank account.
- Third, should I have other worries about their internal cash controls if checks are undeposited for more than a day or two?
If this describes you, it’s time to tighten up your internal controls. Here’s a helpful toolkit from the Center for Nonprofit Excellence at the United Way of Central New Mexico to get you started.
Please don’t make your donors ask “did you get my check?” It doesn’t inspire confidence or the next gift.
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Posted by Gayle Gifford on May 24, 2011 in Fundraising
This week’s blog is a reminder to check state requirements to see if your organization is required to register before launching any charitable solicitations. Or, if you are assisting a nonprofit with fundraising for pay, to see if you are required to register as fundraising counsel or professional fundraiser.
The website of the National Association of State Charity Officials has a list of all of the state contacts and links to the state agency websites (though check them as not all are still current). In some cases, they also have links to the state statutes so you can read the rules yourself.
Registration Requirements for Charities Soliciting Funds
In general, if your organization is soliciting for funds in a state, you are likely to be required to register for charitable solicitation in that state. Each state sets its own rules and there may be various exemptions depending on the budget size and type of the organization. (See below for a discussion of internet fundraising)
The registration process generally includes completing a form that tends to ask for much of the same information that could be gained from the Form 990 that nonprofits are required to file with the IRS. Many states ask for additional information about your fundraising programs, including whether or not you have used fundraising counsel or professional solicitors in the last year. There is usually a fee for filing and for completing your yearly renewal. And each state has guidelines for whether you meet the income threshold to require an annual audit.
Take a look at the article by Joanne Fritz that appeared on About.com — she has some very specific recommendations for you.
Registration Requirements for Professional Fundraisers
Most states also require those of us in the business of assisting nonprofits with their fundraising – aka professional fundraisers — to also register in the state. Usually a distinction is made between fundraising counsel and fundraising solicitors.
Fundraisers solicitors are engaged in either actively soliciting for funds and/or may have access to donations directly whereas fundraising counsel (like Cause & Effect Inc.) may plan, manage, advise or assist charities in their fundraising but don’t have access to donations or solicit directly. Usually employees, directors and volunteers of a charity are excluded from this registration requirement. Read More >>
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Posted by Gayle Gifford on May 2, 2011 in Fundraising
I’m just checking my email after a busy weekend. The sun is shining and it’s a beautiful spring day so I’m chuckling rather than ranting at the email notice I received:
You may remember that I wrote in October about my attempt a few months before to get this gift of a microloan shifted directly into a donation to KIVA’s general fund. KIVA was simply unwilling to do that, preferring instead to let this money remain unused for ONE FULL YEAR until their arbitrary deadline expired, despite my attempts to have them do otherwise.
You can read the story here: Do your fundraising rules bedevil your donors?
I guess their customer service department also forgot to annotate my account noting the correspondence we had previously. By failing to pay any attention to my past history with them, KIVA has now given me a new reason to remember the frustration I had almost forgotten.
Luckily May 8th will soon be upon us and the KIVA tale will end.
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Posted by Jon Howard on April 20, 2011 in Fundraising, Nonprofit Highlights, Public engagement
Captain Ahab set out from New Bedford, Massachusetts, with just one idea: putting his harpoon in the ultimate big fish, Moby Dick. His all or nothing approach didn’t work out so well for anyone but the whale.
The Buzzards Bay Coalition got much better results by spreading nets in many different waters when they set out on their own New Bedford-based quest: to grow membership by more than 50 percent over two years. The Coalition started the campaign in 2009 with 5,200 members. A generous donor offered them $500,000 if they could add 3,000 new members before December 31, 2010.
“He wasn’t kidding,” said Mark Rasmussen, the Coalition’s Executive Director of his anonymous donor. “He made it clear: if we missed the target, we wouldn’t get the money.” Last week, my colleague Anne Garnett and I sat down with Mark just a few blocks away from the Seaman’s Bethel and other opening scenes of Herman Melville’s Moby Dick to find out how the Coalition met the challenge, won the prize and set a new direction for its future. Here are some lessons:
- Share the drama. “It’s wonderful – and frankly a bit scary – to have a challenge like this,” said Mark in his 2009 announcement. The compelling $500,000 challenge and the possibility of failure helped excite and engage the Coalition family and the general public.
- All hands on deck. Volunteers moved mountainst to get targeted mailings out the door, saving thousands of dollars. Board members stepped up, ransacking their Rolodexes and buying gift memberships. That commitment brought other friends and members in on the project.
- Know what you are counting. The goal was member numbers, not member dollars. The Coalition already had clear criteria for counting individual members (family memberships count as two members) so everyone, including the challenge donor, knew the score.
- Make it easy. Any donor of $10 or more ($30 for families) who opts to be a member is a member. That low price point made it easy to say “yes.”
- Try everything. Mark handed us a pie chart with 12 slices breaking out where the members came from. Their traditional Bay swim and newer Bay bike ride accounted for 42 percent of the new members. The rest were spread over 11 separate member recruitment projects.
- Recruit the friends of your friends. As noted, the Coalition got the biggest boost just by offering a member option to riders, swimmers and their sponsors. Mark has been pleasantly surprised to find event sponsors responding well to direct renewal requests this year.
- Go grassroots. Who loves the Bay? Boaters and shellfishers for sure. Volunteers moved mountains to merge and purge records from 18 coastal communities. Personalized mailings to these two groups of public permit-holders snagged 13 percent of the total new member catch.
- Let people help. The owner of Not Your Average Joe’s restaurant created an entire promotional effort on his own, including hats, table cards and personal appeals from servers as well as mini-matching gifts of $5, to encourage diners to add membership dues to their dinner check. That brought in an astounding 550 members in just five weeks.
The Not Your Average Joe’s campaign added to a late surge that put the campaign way over the top in the later months of 2010. The Coalition wound up adding about 3,600 new members by the deadline, blowing the doors off their goal. Read More >>
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Posted by Gayle Gifford on March 30, 2011 in Fundraising
I met two fab board members at the Essex County Institute for Trustees last Saturday. Judy is the board chair and Al the chair-to-be of Opportunity Works, based in Newburyport, Massachusetts. Opportunity Works provides a multitude of services to individuals with disabilities and their families in the Merrimack Valley.
Based on our conversation, I could immediately tell that Judy and Al are big cheerleaders for their organization – what all of us hope for in our board members. They were pitching me on the good work of Opportunity Works from the moment I asked what organization they were with.
And the frosting on this board member cake was that they are both actively involved in making friends and raising money for Opportunity Works.
I was intrigued by their annual fundraising event, the Lend-A-Hand auction, not being an auction expert myself. They told me that the event, which has become a much anticipated tradition in their community, grossed $75,000 last year, its top year ever! Kudos to them for the increase. I know many an organization whose big events even with auctions don’t raise this much.
The auction, entering its 27th year, takes place on cable television. This is the second year it was streamed over the Internet. It was broadcast live in nine Greater Newburyport communities and for the first time in Haverhill.
They use the local middle school during school vacation week to stage the auction. Set up takes place during the week, the telecast and bidding is on Saturday from noon to 9 pm. and pickup is the next day, Sunday, all before school opens again on Monday.
As Judy, described it, “there is something for everyone” with 600 donated items ranging from dog grooming to decorating to the big ticket, an African Safari. You can see the list for yourself here.
Al told me that the community values the work Opportunity Works does so they are very supportive. Sponsors get to auction off the tables the night of the auction and businesses and other community groups send volunteers who answer the phones and take the bids. Both Judy and Al are extremely active in the auction.
I was impressed by the enthusiasm and hard work of these board members and wanted to share it with you.
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Posted by Gayle Gifford on March 22, 2011 in Fundraising
Curious about what brings someone into the fundraising profession?
A few years ago I put out a call to fundraisers both new and very experienced to find out what got them into fundraising. I asked them what words of advice they might have for someone just starting out in the profession.
While many fundraisers seemed to have stumbled into this profession, Ann Fritschner, ACFRE, Director of Development at Mainstay Inc. grew up wanting to be a fundraiser!
“When I was in 4th and 5th grades, I didn’t like school very much. So I would volunteer for every out-of-classroom project possible; I’d organize friends to clean up litter, gather canned goods for people in need at Thanksgiving, sing at the mental hospital at Christmas — anything! And guess what — I was a good at it! I succeeded. I felt great and finally school had much more value to me.
“My first fundraising gig was when I was about 15 and I trick or treated for UNICEF at Halloween. I loved the feel of the box, its orange color with black writing, the shape which was like a little house. And the weight when people put their quarters in it! Fantastic!!
“My first week as a freshman in college I fell in with some students who were going to the Alumni Center to “dial for dollars” for the annual fund. Again I had a blast. The student-volunteers were great and the folks I called were wonderful. The great feeling I had knowing I was doing good and helping out but also having fun cemented in my brain that I wanted to be a fundraiser.”
Janet L. Hedrick, CFRE, Virginia resident and Eastern Regional Development Manager for Buffalo Bill Historical Center, took a different route. Janet was a high school teacher when the superintendent of her school system encouraged her to apply for a development job.
Janet says,
“I didn’t even know the term development as we use it… I had agreed to be the sponsor for the high school yearbook two years earlier and the yearbook had been successful in getting out of debt and winning a State award. With that achievement and the completion of my master’s degree, the Superintendent thought that I should have aspirations beyond the classroom.”
A few months later, Janet started a new job as Director of Annual Funds at Longwood College. Janet says that it took her ten years to realize that fundraising was really her profession before she dared to toss out her teaching plans.
Linda Lysakowski, ACFRE, President/CEO of Capital Venture and author of Fundraising as a Career: What, Are You Crazy, entered fundraising from banking.
“I was doing a lot of volunteer fundraising. I found that I enjoyed my volunteer work so much it was time to make a career change. I saw that many nonprofits had no clue how to relate to business people so I felt my business experience would be helpful to the nonprofit world.”
Kylie Pierce, Development Director for the Capitol Theatre in Rome, NY, who entered fundraising just a few short years ago, also came to fundraising from the financial sector.
Kylie writes:
“I left a more lucrative officer manager position with a financial consultant to fundraise on a volunteer basis for two months. I had no prior development experience–baptism by fire!
“I had fallen in love with the theatre during my first visit as a patron. I recognized the need for someone to handle fundraising and broaden the theatre’s donor base, so that we could increase and improve our programming and restore our building.”
Kylie started as a volunteer then to a part time paid position and finally to full time. She cautions: “only do this if a) you are absolutely dedicated to the cause and b) you have a very supportive spouse!”
So, after jumping into the fundraiser role without a lot of prior experience, what advice do these fundraisers have for people starting their first job?
First and foremost, get training and support!
Linda advises: “No matter what your background, if you’ve never served in a development staff position, you need to be a sponge and absorb every bit of training and education you can find. Join the Association of Fundraising Professionals (AFP)! Get involved in your local chapter … attend the international conference, attend workshops, read, and participate in audioconferences,”
Janet stresses how helpful your colleagues can be: “The most important asset you will have in this business is your colleagues – in and out of your organization … locally and throughout the nation. Develop a network of 100 people with whom you stay in touch. Some you may only contact annually while others you will want to communicate with more often. Join organizations that provide networking opportunities.”
What else?
“Be a giver first. I do not think you can be a legitimate asker if you aren’t a giver.” Ann
“Working for a small nonprofit … everything I do—regardless of whether it is in my job description–has some bearing on the work that I do, from customer service to clerical work.” Kylie
“You must have a plan that incorporates diverse funding steams and methods, and you need to develop a compelling case for support for your organization.” Linda
“Keep an open mind and be willing to take risks. Try new strategies. Share your ideas with others. ” Janet
“Above all, know and live the code of ethics …. Never do anything that is not in the donor’s best interest. “ Linda
In my own many years in fundraising, I’ve had the opportunity to mentor a number of newbies. Some make it. Too many turn away when they find out that just like any other profession, you’ve got to learn its technical aspects, invest in your own development, build networks of support, have a solid plan, listen, be creative and learn to roll with rejection.
But perhaps those individuals who didn’t make didn’t follow Ann’s advice:
“Choose a cause/organization you are passionate about. It doesn’t matter which one, just that you believe in it with your heart, mind and soul. It will keep you happy, engaged and excited about going to work every day.”
Thank you to my generous colleagues for letting me share your stories.
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This post first appeared in Contributions Vol 22: No 3.
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Posted by Gayle Gifford on January 26, 2011 in Communicating, Fundraising
In a short few weeks, many of you will be preparing for the IRS your reporting Form 990, “Report of Organization Exempt from Income Tax.”
There are many reasons fundraisers should pay close attention to what is being reported on their 990. But in this post, I wanted to point out a frequently overlooked opportunity for you to use the 990 to promote your work to your donors, potential donors and other important constituents.
On the very first page of the 990 you are asked to describe your organization’s mission:
Experienced fundraisers don’t leave it up to their auditors, CFOs or bookkeepers to decide what description should go on line 1. If left in your 990 preparer’s hands, you are likely to end up with an abbreviated mission statement like “homeless support” or “social services” instead of that beautiful mission statement you spent so many hours carefully crafting.
On the very next page, you get another chance to promote your work Read More >>
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Posted by Gayle Gifford on January 21, 2011 in Fundraising, Research
I just discovered Grassroots Civil Society, the Scope and Dimensions of Small Public Charities, released in 2010 by the Urban Institute.
In the report, authors Elizabeth Boris and Katie Roeger hoped to shed a bit more light on the smallest reporting public charities. Accounting for three out of ten of all public charities, these small organizations weighed in with total revenues, expenses and assets below $100,000.
I’ve written a lot about the special role these tiny organizations can play in our social fabric. (Eg. See Hope Dignity and Quality of Life are also valuable outcomes, even when measured in hours.) While this report wasn’t designed to look at social impact, any nod toward this large segment of nonprofits is welcome as all attention lately seems to be focused on being or getting big.
What particularly struck me was the difference in the revenue types of these small organizations. Small public charities rely heavily on private contributions ( 52.7%) while the sector as a whole depends largely on fee for service revenues (67.1%).
Small charities also receive 16.8% of income from “other revenue” which includes net income from special events, gross profit from sale of inventory and other revenue (my guess is that those special events make up the bulk of this income) — the percentage for the category overall is 2.1%. According to the report, these patterns have been pretty consistent over the 10 years studied.
I’m infinitely interested in understanding how organizations grow. While an article like How Nonprofits Get Really Big helped shed a lot of light on nonprofit growth, it doesn’t address the path between start-up and reaching that qualifying $50 million in revenues.
I think it would be very interesting to understand how these revenue patterns shift by size of organization and also whether the numbers are consistent within particular types of organizations (arts, environment, social service) regardless of size or if the revenue proportions hold as size changes.
Why bother with all this data? I don’t think we do nonprofits a service by prescribing remedies that ignore the huge differences among us and act instead as if the sector were a monolith. I welcome more research that can help us better understand the similarities and the vast differences in the sector.
P.S. Check out other studies at the Urban Institute. You might want to start with Nonprofit Governance in the United States, an exhaustive look at our boards.
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