Fundraisers talk a lot about donor retention. But, what about employee retention and how it impacts donors? Many nonprofits have a revolving door of development professionals. The average tenure of a fundraiser is less than 2 years. And the donor pays the price.
Consider a new development professional who starts a new job. Immediately, she wants to build relationships with major donors! But the donors have seen this cycle too often. They don’t want to spend the time gearing up to befriend another new development person. It shifts the work to the donor who has to meet more often so the development person feels comfortable. Which, let’s face it, is not why donors give to your nonprofit.
The new development person is set up for failure. Making it more likely they will leave sooner. Keeping the revolving door moving.
Then the question is, how do you get an employee to stay? One way is by helping them grow and feel successful with Executive Coaching.
Investing in your staff will help employee retention, which will help donor retention, which will help your bottom line.
Is Executive Coaching A Good Investment?
Executive coaching means different things to different people.
A sounding board to enhance self-assurance
Short term strategy partner for new initiatives
Developing new skills like
Volunteer or board management
Annual fund growth
Capital campaign planning
Prepping for a Strategic Plan
Building confidence so they are ready for the next challenge around the corner
Learning the skills to move up in the organization
If you, or someone you know is thinking about Executive Coaching and how it could help provide professional and personal development, send me an email. Or sign up for a free consultation on my calendar.
We are all busy during fundraising crunch time but removing donors each time is best practice. If you can’t be consistent about updates (most CRMs will help), acknowledge that if they have already given, it might not have been recorded in the system yet.
Updates on the organization
Send these to everyone – especially those who gave earlier in the year. This will help with stewardship and offer another way to donate this year (always include a way to give in any email to your list).
Updates on giving this year
List your fundraising goal.
List the number of days until you reach the end of your match.
List their previous gifts and what you hope they will give this year.
List anything such as what a gift of various amounts will mean or anything you think will encourage someone to hit that donate button.
Many people wait until the last minute to give. Don’t hold it against them – make it easy for them
Send Thank you videos. What you do now will impact how your donors will feel in December.
2019 is coming to a close, so let’s talk 2020. A new year, along with a new decade, is cause for new goals for your nonprofit. Nonprofits should not have to struggle for funding nor beg board members to show up. And, if you are financially stable, you can think about what can you do to improve your programs, the experiences of members or beneficiaries, and the appreciation of donors and funders.
If you have goals for your nonprofit, I would love to hear what they are. If you don’t, consider the following:
Raise your annual fundraising by 10%
Retain 11% more donors overall each year for the
next three years
Bring on two new board members in 2020 that will
increase diversity – that can be age, gender, color, background or any category that would improve
the way you help your nonprofit be more representative of the population you
Start planning your capital/endowment campaign (let us
know if we can help)
Evaluate your staff to understand how well you
are deploying each person to achieve your goals
Hire an executive coach. It can seem expensive
but it can be much more cost effective to train staff you like than let someone
go and hire a new staff person with their own deficits
Plan two new ways to identify prospects
Inspire your board to be more supportive and
help in fundraising (even if some won’t solicit they can still participate in
Identify three new ways to steward your donors
Evaluate your committee structure to ensure effectiveness
instead of continuing to do it the way you always have.
I hope this helps you start your planning. And don’t forget: create a timeline to achieve your goals for your nonprofit so we are not having the same conversation when 2021 comes around.
December appeal strategies are on every nonprofit’s mind at this time of year. Questions keep popping up like:
Should your annual appeal letter be a one page
Is it better to have one, two or three mailed
What is the best time to send the letters?
Are there certain envelopes or return address
features we should be considering?
What –and how many–categories should we use on
the response card this year?
Should you send six follow up emails or three?
Is a letter more impactful if it comes from the nonprofit’s
executive director, a beneficiary or a board member?
How do you incorporate social media beyond
And this is a list of generic questions.
If you don’t have a nonprofit consultant on retainer (let’s
be in touch if you would like to change that), there are different ways you
can answer your questions.
Best Practices for December Appeal Strategies
I find that best practices have to be taken with the
proverbial grain of salt. An international health NPO may not be dealing with
the same type of supporters as a community religious organization.
Rely on your board, your staff, your beneficiaries, and
your donors for advice.
Calling donors to thank them may
not increase future donations for Public Television stations who outsource
their calls, but may increase donations for your organization. How will you
know? Ask the people making the calls if they are getting through to people? If
they are getting through, are they having conversations? If they are having
conversations, what are the recipients saying?
Those six emails may be expected from a large organization,
but if you know the person sending the emails, it feels different. I have heard
a donor wonder whether the sender will be insulted if they delete them all or
don’t respond. Will sending that many
emails increase donations or simply increase “unsubscribes?”
Can you afford to send your entire list 2 mailings? Your
organization’s budgetary needs have to be considered as do previous response
rates. Can you segment the list to major donors, those with highest upgrade
potential and those who have responded via mail in the past and send it only to
those individuals? We know that some people get the letter and then give online.
But, that also means you will have an email address for them and can
potentially take them off the (snail) mail list altogether. How will you know? Ask them.
This article may have asked more questions than it answered, but that is because there is no one answer for all nonprofits. Call up a few donors at different levels and ask them how they feel about different types of solicitations. Send a quick survey to the nonprofit’s board as well as to a select group of donors. Ask the staff what they have heard in the past. Use your resources to improve your December annual appeal and you will see the benefit. It will deepen relationships, engage prospects, and, hopefully raise more money for your nonprofit.
For year-round annual appeal tips consider reading:
I think this #GivingTuesday will look different than previous years.
Many nonprofits will be asking for money and often forgetting basic fundraising rules – you know, like making it about the donor or telling a story.
Instead, consider some ways to up your game during a crowded time period and excite your donors.
Lead up to #GivingTuesday as an event. Remembering that the goal is still to make the day about the donor – not just your nonprofit. What would interest them in a trickle campaign? – How about a “Have a poll/naming game” for a mascot, new lounge or title for a new program? Silliness, creativity, and/or something useless that intrigues people will play well because they know that you are trying to engage them and have fun – not just ask them for money. Announcing the results on #GivingTuesday with an ask will give people a reason to open your email (instead of the 50 other emails and social media asks).
Ask people to give something besides money on #GivingTuesday. Whether you need volunteers to fill backpacks with winter necessities or people to work at an event during the holiday season – asking for something besides donations can be a strong strategy for deepening your donor relationships.
Use peer-to-peer (P2P) fundraising. The easiest way for you to get people’s attention might be to ask others to help. Facebook will help by matching donations and eliminating fees, so make a plan to creatively encourage your donors to fundraise on your behalf.
Don’t have your act together for this year? See if you can figure out a giving event in December or even January, that you can promote on #GivingTuesday.
Team up with another nonprofit for a challenge. While in theory, you are all competing for donations, in reality, there is more money being donated than either of you are getting. Embrace the giving season by working together to create something fun, engaging and somewhat connected. It can be a contest to see who can get more people to like a picture, donate a pair of socks (or some other small but valuable to your organization donation that can be given in person or online), or write something nice on an online “wall.” And, you guessed it, the winning organization and the results will be announced on #GivingTuesday.
Thank donors before #GivingTuesday. I worry that nonprofits will have low open rates on the actual day. This is not based on fact, only on the huge number of organizations that will send me emails, social media messages and posts. – Because it’s hard to break through the clutter, you have to be different if you want to stand out. If you are not geared up to do a huge campaign, consider that you can use the time to steward donors and encourage giving during December – when a disproportionate amount of giving takes place. Whether you thank them with a creative email, a small gift or phone call, the point will come across that you are giving on that day and not asking. While it may be tempting to send that on #GivingTuesday, remember that they will only see the thank you if they open the email and don’t automatically hit delete.
My brother-in-law has said that a lottery ticket is really a stupidity tax. While I know that logically he is right, I buy them from time to time. Usually, it is when I am in a store that sells lottery tickets and it is over $100 million. That turns out to be approximately 5 times a year. Yes, I will pay the $10 stupidity tax in exchange for the possibility, hope and fun with which it comes.
This is not the only $10 that I will basically throw away this year. Other times will include:
Taking my kids to any place where they win tickets for prizes (recently it was a neon orange inflatable smiley face emoticon for only $40!)
Buying bottled water (I try not to but every time I do I think that is one strike against the environment and one strike against my wallet.)
That pair of jeans that almost worked but not quite and now it’s too late to return.
The lipstick I buy and lose within a week.
________fill in your waste here_______
Then, there are my donations. It is kind of like the lottery – I am giving someone money and getting possibility and hope in return. Sometimes I think it is fun, depending on the nonprofit.
How can you help prospects see that giving to charity = hope, possibility and fun?
One way is to use a social media campaign to offer them the lottery dream of hope and possibility. If they match what they have or would have spent on lottery tickets (a $2 donation is still a small initial gift – but it is still an initial gift). Offer them pictures of the possibilities their “lottery ticket” will provide. And tell them why it feels like winning the lottery for your beneficiaries.
And they will have health benefits too!
As I have referenced before, giving has physical benefits for the donor. You can explain to every prospect that their gift has the potential to improve their own sleep, digestion, memory, learning, appetite, motivation AND counteract the effects of stress hormones. Yes, you can give them access to 3 naturally-created, feel-good hormones (aka Dopamine, serotonin, and oxytocin) for just $25.
Ok, that is more than a lottery ticket. But it is less than an inflatable at skee ball.
Here is a great (and relatively short) exercise to encourage donor-centric thinking among your board and/or committees. Use this with anyone and everyone you can. In addition to a new way of thinking, you can improve donor retention and have new ideas about what to write in your donor appeal letters for the coming year.
The “Why every board member should write an annual appeal letter” exercise
Take 15 minutes at a board meeting and ask everyone present (whether board member, volunteer, or staff) to write a donor-centric, annual appeal solicitation letter. And include the following instructions/reminders:
These letters will not be sent out right after the meeting, so don’t worry about grammar or structure.
You are looking for their point of view and what they think are the reasons people give to the annual fund- not wordsmithing or perfection.
Strong donor-centric letters include:
The word “you” whenever possible
The benefits for the prospect and why it will be beneficial for the reader to give to this nonprofit (not why the nonprofit should be a recipient)
Creating connections for the prospects and the organization
Consider whether a story should be featured and, if so, whose story should it be?
Think about who is writing and signing the letter.
This exercise will help you:
See what motivates the board members to donate their time and money
Generate board awareness of what the development team is focused on each day and what works.
Determine what your board views as donor-centric
Find new ideas for your letters
Create connections between board members and staff (and maybe even uncover some hidden development skills among your volunteer leadership)
Should this be homework to bring to your next meeting?
You may want to tell your board members that you will be doing an exercise about fundraising letters and stories so they can consider ideas ahead of time. But, the majority of volunteers will not sit down ahead of time to write anything out. If some people do, it will be the people who already feel comfortable writing and excited about fundraising. This exercise is about generating ideas from everyone, because that is what will help your nonprofit look at fundraising in new and different ways.
And new ways to look at your fundraising will help you raise more money. Which, of course, is always the goal.
Email me if you would like our help in facilitating your next board meeting or retreat.
A. We are often asked versions of this question. Annual fundraising galas and other similar benefits are wonderful friend-raisers and community builders, but rarely do they find balance on the financial scales when you consider the time and energy that could be spent on other methods of fundraising instead of the event. They are, in fact, one of the least cost-effective ways or raising money.
Of course, we have also heard many common objections:
“The administrative work is done by someone who was hired with this event listed in his/her responsibilities.” That may be true, but are there other areas that could use the extra dedicated hours? Could that person spend the same hours, intensively for months, working on stewarding, upgrading, and retaining donors? How would that impact your budget? “Our annual fundraising gala is run by volunteers. It doesn’t really cost us anything to produce.” What else could your volunteers be helping you achieve? If those who are committed to raising money were to join the development committee and work with major donors, it could easily exceed the $25,000.
“But our volunteers like working on the annual fundraising gala because they like being a part of a marquee event.” There is no doubt that this aspect of their commitment is valuable to your organization, but it is valuable as community building and strengthening. If you have the staff, volunteers, time and funds to support these events, then, continue the event.
Then consider how to grow the relationships with the attendees. How many of those in attendance are major donors or have the capacity to be? How can you turn each one into a major donor? And how you can you deepen their involvement beyond the event?
Ultimately, the decision is yours as to whether to proceed or stop the event. Just make sure you know what the true benefits are for your organization.
A. The biggest problem with running simultaneous campaigns is the potential for confusion.
If a donor is asked to donate to 3 different campaigns from the same organization, he/she is unlikely to give to all of them – or at least not at a meaningful level. If you announce all of the options at once, are you asking the donor to pick the one that appeals to them most and just donate to that one? If you announce the various campaigns over a few months or a year, you are opening up the possibility that a donor gave a check last month for the new chairs initiative but would rather have funded the new organ drive that was just announced.
How are you going to handle the frustration of a donor who just wrote a 4, 5 or 6 figure check but now feels their money would have been better directed elsewhere? It doesn’t seem to be a long-term engagement strategy.
And the confusion has the potential to extend to staff. Not only does a staff person need to determine how and when to approach the donor, but for which cause. If they turn you down for one, do you offer up another potential campaign? By the third option, is the donor thinking you are wonderfully diversified or simply desperate for any money from them?
Where should the development office focus? Is there a campaign that is more or less important? If so, why are you asking donors to invest in a third-priority campaign that may never reach its goals?
Keep it simple, most particularly with the donor as the center of your attention. It will be easier—and, ultimately, far more lucrative—for everyone involved.