Tag Archives: fundraising

What’s Your Policy?

Posted on August 26, 2013 | Leave a comment

www.saadandshaw.comMost people who volunteer with nonprofits are ethical and deeply committed to the organizations and institutions they serve. But sometimes in the midst of doing good there may be a tendency to sidestep best practices that build credibility. One way to ensure credibility is for the board to craft, approve, and implement fundraising guidelines, policies, and procedures. These should be clearly worded and should support the work of board members, volunteers, staff, and donors.

We advise our clients to take the time to identify the full spectrum of guidelines, policies, and procedures needed to support their fundraising efforts — before launching a campaign. Choosing to adopt policies on an “as needed” basis is choosing to be reactive instead of proactive. When policies and procedures are clearly communicated, the work of fundraising is made easier.

For example, if you do not have a pledge policy in place, it can be frustrating for a volunteer solicitor to learn that the three-year pledge she secured from a local business leader requires a signed pledge form. If she had known, she would have informed the donor at the time she solicited the pledge. Having to come back to secure a signed pledge form means reopening negotiations. It provides the donor with an opportunity to reconsider her giving. It sends the signal that your organization does not have its house in order. It can frustrate volunteers who are giving their valuable time.

Take the guesswork out of fundraising. Define your policies and procedures. If unusual circumstances arise, respond to them. But have the fundamentals in place and apply them consistently. Nothing can lose the goodwill of an investor or volunteer more quickly than a situation where the rules are changing constantly. Take time and work with your board, staff, volunteers, and donors to develop guidelines, policies, and procedures that are credible and in line with your mission and culture.

Here is a three-step process you can use as you put policies in place. Step one: the development committee of the board is responsible for drafting guidelines, policies, and procedures. They can work with your development staff, with a consultant, or with Internet resources to craft these. Step two: the documents created in step one should be brought to the full board for approval. Step three: once approved, the guidelines, policies, and procedures should be implemented by staff and referred to on an ongoing basis.

Details on policies and procedures for consideration are available from the Association of Fundraising Professionals (AFP) website www.afpnet.org. We also include examples of policies (and what they related to) in our recent book Prerequsites for Fundraising Success. Following the AFP Donor Bill of Rights and the AFP Code of Ethics are two items all nonprofits should review and consider adopting as part of their fundraising policies.

Mel and Pearl Shaw are the authors of “Prerequisites for Fundraising Success” and “The Fundraiser’s Guide to Soliciting Gifts.” They provide fundraising counsel to nonprofits. Visit them at www.saadandshaw.com. Follow them @saadshaw.

 

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Setting an annual fundraising goal

Posted on June 17, 2013 | Leave a comment

How do you set your annual fundraising goal?

moneyWe were recently asked what we thought about setting a fundraising goal for fiscal year 2014 by simply adding 10% to the 2013 goal. Good question. And of course we had questions of our own. The first of which was “did the nonprofit meet its 2013 goal?” The answer – and the reasons why – will be important to take into consideration when setting a goal for 2014.

Here are a few other things to take into consideration. What are the organization’s financial needs and how will these fluctuate based on changes in projected operating expenses and program costs? For some organizations the fundraising goal is set based on projected revenue from earned income, multi-year grants and other “secured” funding streams. These numbers are subtracted from the nonprofit’s expenses and the balance becomes the fundraising goal. That is one way to determine a goal, but it may or may not be a goal that can be met.

The time and attention paid to setting the goal can impact the extent to which you can meet it. Here are a few things to consider when creating a fundraising goal. Were there any unusual large gifts in 2013 that may not be repeated in 2014? (In order to sustain 2013 giving levels you will need to determine how these can be replaced if you believe they were one time gifts.) How many donors give annually, and how much do they give? What is your “donor attrition rate” – how many people who give one year don’t give the following year? (Knowing the attrition rate can help inform how many new gifts you need to maintain at prior year’s level.) Who are the prospective donors you have identified? What is the likelihood they will give in the coming year? What has been your organization’s track record in turning prospective donors into actual donors? How many donors increase their giving year over year.

Other issues to consider include, who will ensure your special events meet their revenue projections? Has event revenue been growing or declining? Who will solicit corporate sponsors and underwriters? Can your marketing team create awareness that drives giving? Who will ensure that direct mail and/or e-giving campaigns are produced on schedule? Which of the foundations that have provided support in the past might make a grant in 2014? Have you identified new sources of foundation or corporate support? Who will solicit these?

Finally, review your fundraising goal against your capacity. Consider how fundraising volunteers can positively impact (increase) funds raised. Compare the number of staff, board members and volunteers against what needs to be accomplished. Last but not least, compare 2013 fundraising revenue against 2014 projections.  We believe that taking all of the above into account is a better way to determine a fundraising goal. What are your experiences?

 

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Summer Reading Can Increase Revenue in the Fall

Posted on June 12, 2013 | 2 comments

Cynthia Hopson http://www.saadandshaw.comTo be the best, learn from the best – and in fundraising, Pearl Saad and her husband Melvin B. Shaw, have the creds to not just teach fundraising essentials but to literally “write the books” about it. In an updated version of The Fundraiser’s Guide to Soliciting Gifts, first published in 2008, everything you need to know is laid out in this small but powerful compilation in the form of how to’s for the novice and gentle reminders for the veteran.

These amazing 33 pages are a quick but empowering read from an accomplished couple with more than 30 years of experience in innovative fund development, capital campaign research, planning, design and implementation. Topics covered include the language and philosophy of the “ask,” how to cultivate, honor, recognize and involve donors, preparing for solicitation visits, and the importance of personal and meaningful interaction with potentials.

As someone who has to inspire gifts and investment into my cause, (I manage The Black College Fund which supports the 11 United Methodist Church-related historically Black colleges and universities) I felt better prepared, even inspired to go out and “win friends and influence people” to share. While I never try to sell anything I don’t invest or believe in, their “It’s an honor to be selected as the person who asks others to give” philosophy was refreshing and empowering.  I am all the things listed in the title of their new book, Prerequisites for Fundraising Success, 18 Things Every Fundraising Professional, Board Member, or Volunteer Needs to Know, so reading it was a logical next step.

Prerequisites, is a homerun, slam dunk and a touchdown! Whether you’re trying to figure out which way is up or down, this is the book you want to get this year. “Fundraising is a competitive endeavor” was my favorite quote and if you are ill equipped for the competition, get this book and then proceed. They cover funding your fundraising, the importance of teamwork and commitment to the cause, and every chapter has a checklist and action steps to keep you on course. If you’re serious about improving your fundraising success, and who isn’t these days, this resource will be a blessing for everybody who goes out in your name to raise money. Fundraising is an art and a science and those who excel at it must understand the processes and intricacies that lead to success. Again, this roadmap will enable the newcomer and provide additional tools for the pro—either way, you’re bound to learn something new.

Pearl and Mel are consummate professionals and they continue to impress and amaze me with their creativity, insights and extensive knowledge of all things fund related. With these two books, they take comprehensive fundraising, development and management to a new and more accessible level. Both are available from their website, www.fundraisinggoodtimes.com, and are economical enough to get one for each team member.

Cynthia Bond Hopson, Ph.D., is an author and assistant general secretary of the United Methodist Church’s Black College Fund in Nashville, TN. chopson@gbhem.org

Mel and Pearl Shaw are the authors of “Prerequisites for Fundraising Success” and “The Fundraiser’s Guide to Soliciting Gifts.”  They provide fundraising counsel to nonprofits. Visit them at www.saadandshaw.com. Follow them @saadshaw.

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Donor Research

Posted on June 10, 2013 | Leave a comment

Start by asking “why?”

Part three of three part series on transformational giving

Warren BuffetDo major gifts to nonprofits fall from the sky, or are they more typically the result of deep commitment, relationships, and the ability to use the tools and data available to nonprofits? We asked Barbara Pierce, founder of Transformative Giving, about how donor research supports transformational giving.

“Since a transformational gift is one that can move the nonprofit to a different level of operating, it will be a large gift by necessity,” she began.  “Donor research will identify those donors capable of such a gift so you can focus your cultivation efforts with an aim toward deepening relationships with a small number of top donors.  We are all limited by time so you need to prioritize.  Donor research allows you to make these choices based on data.”

We closed our interview with Pierce asking her to reflect on her experience and share what she has found to be the factors that influence major donor’s largest gifts.

“There is so much talk around evaluation and donors do want to know you have a method of determining progress.  Beyond these basics, donors making their largest gifts based on advancing the causes that mean the most to them personally and that express their most deeply held values.  They are not choosing the organization based solely on their metrics,” Pierce commented.

“The desire to leave a legacy beyond their financial success is what I have found influences donors the most. They have more money than they need according to their own standards and they want to make an impact on something bigger than themselves.  While it can be a planned gift, transformational gifts are often while the person is alive—the transformation goes both ways in that the donor is changed also through the process.”

She shared an experience of visiting with a very prominent venture capitalist who was known to be rather hard-edged.  She was armed with reams of data in anticipation of his questions.    “I was surprised he was taking the time to see us and I asked why he cared about this environmental cause.  He turned to a photo of his children and said, ‘all of this doesn’t matter if my children can’t enjoy the same beauty that I have been so lucky to know.’  If I hadn’t asked ‘why,’ we would’ve missed out on an opportunity to understand what drives him to make transformational gifts.”

This led to Pierce’s closing remarks and the topic of working with people who can give at the highest levels: “You need to start with the most basic question of ‘why?’  Otherwise, you may be making a lot of assumptions about what they care about most and gearing your pitch based on your thinking versus theirs.”

Visit Barbara Pierce at  www.transformativegiving.com.

Mel and Pearl Shaw are the authors of “Prerequisites for Fundraising Success” and “The Fundraiser’s Guide to Soliciting Gifts.” They provide fundraising counsel to nonprofits. Visit them at www.saadandshaw.com. Follow them @saadshaw.

 

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How to engage major donors

Posted on June 3, 2013 | Leave a comment

Part two of three part series on transformational giving

Giving Pledge

Photo credit: Fortune Magazine

Why does one nonprofit receive $1,000 from a donor when another receives $1 million? What is the difference between fundraising and the process of securing transformational gifts? To get some answers we talked with Barbara Pierce, founder of Transformative Giving.

Pierce got right to the point: “Transformational gifts come out of a partnership with a donor, built on a common goal that neither the donor nor the organization can accomplish on their own.   Fundraising is about getting gifts to meet a budget; transformative giving is about achieving a vision.  Without fundraising and the financial foundation it provides, you cannot engage in transformative giving.”

She elaborated further, sharing what it means to be “donor focused.” “Usually, nonprofits are driven by their own budget on their own timeline, i.e. fiscal year, solicitation cycle, board meeting schedule,” she began.  “To be donor focused is to focus on the donor’s timeline versus your own.   Most transformative gifts take more than a year to transpire but too many organizations forfeit a larger, more meaningful gift for a smaller, immediate one to fit their own calendar.”

“When you are donor-centric, you don’t think in terms of ‘they should give us X; they are really rich,’ which is something I’ve heard many times.   You also have an attitude of exploring common areas of interest versus believing you have to ‘educate’ donors on all aspects of your organization before they are qualified to play a meaningful role in your discussions.”

“Institutionally, it is an approach that says, ‘we want to understand who our donors are, what drives their decisions and what type of involvement is important to them,’ Pierce continued. “Any successful for-profit company takes a deep interest in understanding who their customers are and how they can be of service to them.  I see this as a critical gap in nonprofits engaging with those donors most able to make a transformative gift.”

Vision, leadership, capacity, stewardship. These are at the core of successful nonprofit fundraising. They are magnified and held to a higher standard when talking with individuals who can give at the highest levels. How donors are perceived and treated can impact if and when they make a meaningful investment.

“I believe one of the biggest factors that impede groups from attracting such gifts is their lack of interest or ability to see donors as partners versus a source of funds, Pierce advised.  “There are a lot of assumptions about ‘rich people’ among many nonprofit staff members, including the idea that a donor will have undue influence on the organization’s mission if they accept a large gift.  People don’t make transformative gifts to organizations that aren’t already embracing a vision they both hold in common.”

Next week: Part Three – Start by asking “why?”

Visit Barbara Pierce at  www.transformativegiving.com.

Mel and Pearl Shaw are the authors of “Prerequisites for Fundraising Success” and “The Fundraiser’s Guide to Soliciting Gifts.”  They provide fundraising counsel to nonprofits. Visit them at www.saadandshaw.com. Follow them @saadshaw.

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Transformative Giving

Posted on May 28, 2013 | Leave a comment

Philanthropy makes front page news with the announcement of large, transformational gifts. Think Bill Gates. Oprah Winfrey. Warren Buffet. With the news comes the question “What would it take for us to receive such a gift?” This three-part series seeks to provide insights that can help nonprofits begin a conversation that may itself be transformational

Barbara Pierce www.fundraisinggoodtimes.comWe recently asked Barbara Pierce, founder of Transformative Giving, to share her experience working with donors who give transformational gifts. Pierce works with local and national nonprofits who want to grow their major gifts programs. She has experience soliciting gifts ranging from $10,000 up to $10 million. Her comments can stimulate conversation and an examination of how your institution or organization approaches fundraising, and those who can make transformational gifts.

We asked Pierce what guidance she would offer to an organization or institution who wants to secure transformational gifts, and she got right to the point. “You need to be able to answer, without hesitation, what you would do if a donor gave you a million dollar gift. It is harder to answer than you might first think. If you don’t have a vision, don’t expect visionary gifts,” she said.

That’s a strong message. And we totally agree with Pierce. Those who can give at the highest levels want to know your vision, how you would deploy a major investment. Pierce continued, “You also need to have the organizational capacity to take advantage of such a large gift. I use the word transformative because such a gift will transform an organization and if you aren’t ready, it can take you off course, possibly in the wrong direction.”

She also highlighted the need to have your financial house in order before focusing on transformational giving. “You have to be financially sustainable before you can take advantage of a transformational gift. This type of gift allows you to move beyond “we’re surviving” to a point where you are thriving. As an organization, you have to demonstrate your capacity to steward a transformational gift. Nonprofits need to have the business knowledge of how to ramp up in terms of institutional capacity and implement a plan for the vision that the donor is funding.”

Transformational donors look closely at your institution’s leadership. “The first things to be satisfied before someone will consider a major investment in your group is a belief in the management of your organization. They want to know and trust your executive director or president and your board. These donors are people who have made smart decisions in earning and investing money. They want to know such a gift will make a lasting impact, and that means it will be well managed.”

Next week: Part Two. Are you interested in donors or their money?

Visit Barbara Pierce at www.transformativegiving.com.

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Preparing for your Capital Campaign-Asking the right questions

Posted on May 20, 2013 | Leave a comment

ChangeA capital campaign – or any other quantum leap in your fundraising – will pull at every fiber of your nonprofit. These are not “business as usual” activities. If you want to grow from one level of donated revenue to another you have to do things differently. It’s no different than a business seeking to enter a new market or release a new product. New, more and different thinking, actions and people are required for new, more and different results.

We know this means more work for nonprofits that are often already operating beyond capacity. But you have to find a way to operate differently if you want different results. We are not saying that everything has to change all at once, but the rate at which you engage potential donors and funders is the rate at which you will begin to see a change in revenue.

Change can begin with an honest assessment of the road ahead. Your institution may need to raise money for new facilities or technologies. Your nonprofit may need to replace a government contract or grant that won’t be renewed. In these examples the first step is to identify the amount of money that needs to be raised. This is the starting point for an important organizational conversation. For too many nonprofits, it is also the end point.

Knowing what you need to raise is not enough. What needs to take place is a conversation about “how” the money will be raised, and what it will cost. Fundraising costs include money, time, talent and resources. You can hire a fundraising consultant to talk with your leadership team, or you can begin the conversation on your own. Questions to discuss include: Where will the money come from?  Who could provide how much? Can we identify three-times as many potential donors as we will need to meet our goal? Why would a donor or funder want to give? Who would ask them to give? How will we organize ourselves? Who will manage and coordinate our fundraising? What resources will he have available? How will a capital campaign impact our annual fundraising? How will we sustain and grow our current donors while attracting new ones? What new policies are needed? What impact will new buildings or technologies have on our operating budget? How will we budget to maintain these?

Open and honest conversations can be both sobering and revealing. Most importantly they contribute to organizational and financial health. They are an opportunity to candidly assess your capabilities and options before launching into a major campaign. When successful a capital campaign – or any quantum leap in your fundraising – will have a major impact on the life of your nonprofit: you will have the funds you need to deliver on your mission and expand your impact.

Mel and Pearl Shaw are the authors of “Prerequisites for Fundraising Success” and “The Fundraiser’s Guide to Soliciting Gifts.”  They provide fundraising counsel to nonprofits. Visit them at www.saadandshaw.com. Follow them @saadshaw.

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How to brand your business & support a nonprofit

Posted on April 22, 2013 | Leave a comment

Women Business owners

Woman and minority owned businesses can benefit from well-defined relationships with select nonprofits.

Partnering with nonprofits makes good business sense for emerging and established woman or minority-owned businesses. Board service puts a human face on your business; donating goods and services extends your brand. Creating a culture of philanthropy helps your business better compete for well-educated potential employees seeking a meaningful career and the opportunity to give back. Building a brand that communicates “we” instead of “me” opens the door to new networks and relationships that can help you meet your business objectives.

Other benefits include increased exposure to people of different cultures, races, ethnicities, geographic areas and professions; and learning from diverse leaders in a most intimate setting: that of a nonprofit grappling with management, marketing, or budgetary issues.

People who are involved with nonprofits are civic-minded people who are willing to open doors for others, and to extend their network. They will have the opportunity work with you, get to know you, and refer your business. You can extend similar opportunities.

Be strategic about your involvement. Engage with nonprofits that impact or are supported by your customer/client base, and the community you operate in. Customers and clients are more loyal to businesses that engage with nonprofits they believe in. Find out which nonprofits resonate with your clients/customers; look for those with similar values; evaluate how they could help you meet your business objectives. Interview the leadership of potential partners to learn their expectations of your business, and the opportunities they could provide. Done right, nonprofit service, sponsorship, and underwriting are cost-effective ways to build, sustain and expand a brand.

Things to consider. Identify a specific nonprofit to support with time, talent and finances over a multi-year period. Make the selection in collaboration with your leadership and employees. Increase your impact with planning and preparation. For example, identify what you want to achieve for your business, the nonprofit and the community. Determine how much money and time will you invest annually. Where will the money come from? Who will give their time? How do these numbers match to your nonprofit partner’s expectations?

Encourage employee giving. Implement a “matching gift program” that matches employee giving dollar-for-dollar up to a set amount each year. Encourage “on the clock” volunteering by employees. Incentivize customers and clients to support your nonprofit partner with time and money.

Include your nonprofit partnership strategy in your business plan to help ensure your business follows through on commitments. Over-deliver on your promises. Attend meetings and actively participate. Make an annual gift. Purchase a table at all events. Take advantage of sponsorship and underwriting opportunities. Ask other businesses to “meet or beat” your contribution. You demonstrate leadership – and increase your impact – when you engage other businesses in the work of your nonprofit partner.

Mel and Pearl Shaw are the authors of “Prerequisites for Fundraising Success” and “The Fundraiser’s Guide to Soliciting Gifts.”  They provide fundraising counsel to nonprofits. Visit them at www.saadandshaw.com. Follow them @saadshaw.

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The Impact of Mobile Devices at meetings

Posted on April 15, 2013 | Leave a comment

An example of a Digital Conversation being run...

Who is more important: you or a group of your fellow nonprofit volunteers or professionals? What signal are you sending when you direct your attention to your mobile device instead of the group’s discussion? If you believe the work of the organization or institution is unimportant, say so and work with your peers to restructure meetings. If not, give your attention to the business at hand. Each of you has carved out time from your busy schedules to attend the meeting: make the most of it.

For many, time is now considered a resource even more valuable than money. Increasing demands on our time from work, family and volunteer commitments make it all the more important that time allocated for meetings be most productive. As nonprofit professionals are asked to take on more responsibilities the time dedicated to staff meetings becomes even more valuable. Checking your mobile device removes your attention from the discussion at hand. Your knowledge, expertise and insights are removed from the conversation. The opportunity for synergistic thinking, problem solving and strategizing diminishes as participants mentally enter and leave the group’s work with a glance at their device.

And then there’s hurt feelings. Some people are offended when they are talking and others are texting or checking email. The sentiment can be, “Why should I bother if they aren’t interested?” The result can be a process of gradual or immediate disengagement.

Observe your behavior and that of others in the next meeting you attend. How often do people check their devices? What is accomplished in the meeting? Ask reflective questions of yourself and others in the room: are our meetings boring? Too long? Are they structured to take advantage of the best thinking in the room? Are people coming prepared to meetings? When are people checking their devices and does that correlate to the discussion at hand?

Make sure your meetings are worthy of the time you ask each person to give. Develop a protocol for the use of mobile devices. One corporate board asks members to place devices in a basket upon entering the meeting, and provides breaks for the purpose of checking calls and messages. Your nonprofit is as important as a corporate board. Reach agreement regarding the use of devices and hold each other accountable. Remind people of the policy when meetings are being scheduled, and again at the beginning of each meeting.

You can use mobile devices to help advance the organizations you are involved with. Engaging and updating friends, colleagues, donors and supporters via Facebook, twitter, LinkedIn, Pinterest or Instagram increases the organization’s social media presence and reach. The same with calling and emailing to set appointments and provide updates. Mobile devices bring us together. Don’t let them drive us apart.

Mel and Pearl Shaw are the authors of “Prerequisites for Fundraising Success” and “The Fundraiser’s Guide to Soliciting Gifts.”  They provide fundraising counsel to nonprofits. Visit them at www.saadandshaw.com. Follow them @saadshaw.

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Preparing to Ask for a Gift

Posted on April 8, 2013 | 1 comment

Making the Ask-Part Two

Preparing to Ask for a Gift-Saad & Shaw

Fundraising provides nonprofits with the money they need to deliver on their missions. When you ask others to join you in giving you become part of the nonprofit’s success team.

In part one of this series we discussed how to prepare to solicit a gift. In this column we cover setting the appointment and what to say when asking.

Here’s what we believe: asking for a gift should be done in person whenever possible. Make an appointment to talk with your colleague, family member or friend about giving. Let’s use an example of asking Jesse for a gift. “Jesse, would you have time to meet with me about All In For Children? I am committed to working with them to raise money for their new programs and I want to share that information with you and explore how you would like to be involved.” All you want from the conversation is a time to meet. If Jesse says, “Oh, we don’t have to meet. Put me down for $100,” you can respond with, “I understand. Would you make some time for me just the same? You might want to give even more after we talk!” Keep the conversation light, but get that appointment.

As you prepare for your meeting, make sure you have brochures or online information you can share. Practice your presentation. You will want to talk about the organization’s history, current activities and vision for the future. You will also want to cover what specifically you are raising money for and how the money will be used. Be prepared to communicate using emotion and facts.  Talk about what the organization means to you and why you are involved.

During the solicitation be sure to ask for a specific, reasonable and challenging gift.  Know the amount you will ask for.  It shouldn’t be too small an amount, nor too large.  Remember to talk about the gift you made.  If your gift is similar to what you would like your prospect to give, state the amount you gave and why.

Always remember to make the ask. Be very clear and specific when asking: “Jesse, I would like for you to make a gift to All In For Children.  Would you be willing to contribute $___?”

Pause after you ask for the gift.  Do not rush to fill the silence.  Give Jesse time to respond, for he will. If he says “yes”, thank him and ask how he would like to make his gift. If he says “no”, ask what would be the right amount at this time. If Jesse says this is not the right time, ask what would be a good time. Regardless of the outcome, thank him for his time. After the meeting, send a thank you note.  You can do it! Your nonprofit depends on you.

Get all the details in “The Fundraiser’s Guide to Soliciting Gifts.” 

Mel and Pearl Shaw are the authors of “Prerequisites for Fundraising Success” and “The Fundraiser’s Guide to Soliciting Gifts.”  They provide fundraising counsel to nonprofits. Visit them at www.saadandshaw.com. Follow them @saadshaw.

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