Assuring the Special in Special Events

Not all nonprofits are in love with the concept of special event fundraising. For larger nonprofits with "significant" staff (including a fundraiser and a communications specialist) and a development committee that works from a well thought out plan, events can be pretty great revenue sources for your organization. All nonprofts, great and small, can make events work.
And it does start with a plan.

• The event should fit the mission: it should be clear to participants what the money is for, how it's going to be used, and the NPO gratitude for hard work to raise $$ for mission.
• There should be a mini-business plan with a timeline, job assignments, and a budget. Members of the event committee should know their assignments and commit to get them done to keep things moving along the agreed-to timeline.
• If it's a run or walk or bicycle deal, building in a pledge component will leverage your $-raising capacity significantly. If you've got an event that's been going a few years, it's hard to convert it to pledges if it hasn't been. Time to think of a new event.
• Expect to earn a few net dollars the first year, but realize that the best events grow because the committee is smart, it learns-by-doing, and is committed to continuous improvement: how are we going to make this better?

Events can be a great source of substantial net dollars for your nonprofit mission. In the 1980's, we (American Lung Association of NH) morphed a canoe event that raised $10,000 to a bike trek that raised $80,000 in the third year. How did it happen? The stars and moon were aligned: we were lucky we hired a great event planner, and we were first NPO out the gate in NH with a big time bicycle event. Over time, MS and others caught up with us.

Strike while the iron is hot! Interested in a conversation on how we could work together to make an event work for you? The conversation only costs a cup of coffee. s.p.99smith@gmail.com.

Catching the Boomer Wave

I've written here about how nonprofit boards of directors can engage their networks to benefit the mission of their organization. And I've offered recommendations on how to put a system in place to convert donor prospects into donors, and the value of focusedcommunication with your donors and your prospects.
Today I want to zero in on trends you can apply to your approach to more effectively raise money to advance the mission near and dear to your heart.
in the Chronicle of Philanthropy (Vol. XXII, #10, April 8, 2010) Holly Hall writes about big demographic changes on the horizon that will impact how development staff and board members need to prepare for the wave of Baby Boomers who will reach age 65 in 2011. And that wave will only grow as the number of Americans 65+ will double in the next two decades. At the same time, the number of Americans in their 50's will decline. Generally, folks in their 50's are in the prime of disposable income capacity.
What can the nonprofit do to prepare for the Boomer wave to retirement?

• Sharpen up the Database. Can leaders get useful reports on trends that respect individual donor confidentiality? Don't have a relational database? Search sources to recommend one for you. Start with Nonprofit Tech Network http://bitly/9kOFBA to learn about Open Source Donor Management Systems. Proprietary systems can be costly, but check them out, too. Without useful data to drive development decisions, you're guessing.
• Add Tech Savvy People to Team. Every nonprofit needs a staff member and/or volunteer up-to-snuff on application of current technology. Thought leaders in development are saying the art of the schmooze is not enough in building donor relationships. Beyond managing the database, there's also potential in social media, particularly Facebook and Twitter.
• Board Adopts a Development Plan. Outline a road map indicating where you need to go to successfully raise the $$ to deliver the mission. The map should include "how:" direct response, special events, annual campaign, major gifts. And "who:" role of development committee, role of board in giving and getting. And "what:" data that will be used in decision-making.

It's spring, and summer is just weeks away. If your pace slows down a bit in the summer months, this can be a good time to do some research on database options, and to begin outlining a development plan. Get ready for action in fall so when you're annual appeal gets underway (most often November-December in the nonprofit world) you've got your tools in place to elevate your approach to fundraising.

Need some help addressing these needs? I'm just a phone call or e-mail message away.

Steve Smith is Principal of It's The Results, a consulting company specializing in board development, strategic planning, fundraising. s.p.99smith@gmail.com. 781-334-4915.

Effective Fundraising Through Relationship Building

"Asking someone you know for money in person is the most effective way to raise funds." Kim Klein, author of Fundraising for Social Change, 5th Ed., leads off her chapter on "Getting Comfortable with Asking for Money" with this sentence. Right on target. Ms. Klein captures the essence of fundraising effectiveness: Knowing the person you're asking is more than half the battle in raising money for a community benefit nonprofit organization.
Board members and other volunteers will frequently tell the executive director or development director that they just can't bring themselves to "make the ask." Why? I believe it's primarily due to fear of rejection. But it's also about concern with invading another person's pocket book. When it comes right down to it, "What right do I have to ask another person to fork over some cash?"
Well, friends, this is how we successfully advance the mission of a cause that's near and dear to us. If we don't ask, we likely won't get. It takes an ask, and there's no one better to ask than a person who knows the donor prospect.
And getting into that comfort zone starts right at home: at the board of directors. We need to get members of the board thinking about investing money to accompany the very generous contribution of time these individuals already are giving. And the person to ask one board member to give is another board member. One who knows the person to be asked. There's a relationship there. This connection makes the ask easier. It also makes the decision to give for the first time easier.
I experienced this situation first hand when I was executive director of the American Lung Association of New Hampshire. Until we launched our first major gift campaign, few of the twelve board members donated. There was not a sense of urgency, nor a sense of importance of investment. Leaders of the board, however, were clear about the need. They decided they wanted their colleagues on the board to get some training, to "get" the concepts of urgency and investment. That if those closest to the community benefit organization didn't feel the urgency of needed funds to advance the mission (in this case, to get No Butts About It into elementary classrooms) how would they sell others on this program's importance?
We recruited a volunteer, experienced in Republican party fundraising, to chair the Development Committee. I knew her well, as our paths crossed (even though our politics were different) in work we were doing on smoking prevention and clean air advocacy. And for the honor of leading our campaign, the chairperson made a lead gift of $5,000. That step by that friend of the Lung Association's mission made the campaign happen. And made the campaign a success.
Ken Burnett writes in Relationship Fundraising (Jossey-Bass, 2002) that the #1 essential to effective fundraising is grasping the concept that it's about "people giving to people." When we get the message, when the focus of the nonprofit mission becomes embedded in each individual on the board, and as board members grow more comfortable with bringing in money to make the mission that they believe in happen, the dollars come.
It's clear that these are simple concepts. As they say, "it's not rocket science." But: it's hard work nonetheless. Getting board members to buy in, and getting a nucleus of board members to work at asking after they have made their gift, the snowball becomes an avalanche. But over time.
Relationship Fundraising starts with two people. And it grows from there, if we thoughtfully invest in starting to roll that snowball down the hill. Soon, it gathers momentum. And before we know it, we have effective fundraising happening because the relationships we build make it happen.

A Shot of Red Bull for the Board Meeting

Here we are, counting down to the first day of spring, looking for that energy boost to get spring cleaning underway.
Coming out of our winter hibernation, it's a good idea to check in on the energy level for our board. Are meetings lacking some zip? Are our financial numbers not quite where we'd like to see them, but in need of some constructive attention?
It's tough. Rumor has it we're moving out of recession and recovery is just around the corner.
Right.
For the moment, we have some work to do, some tough decisions to make and, we're struggling to find the energy...to get all members of the board out, at the meeting, coming ready to engage in what can work for us to get us over the hump.
Cans of Red Bull probably aren't really what will do the trick.
But what the heck. Maybe have a few cans on the refreshment table to perk some interest, get a chuckle, maybe provoke a lecture on healthy diet from the board scold.
Here are some tips that can provoke a needed jolt:

• Put a story on the agenda. Ask a person or volunteer who benefits from the service you provide, share a story about the value you deliver.
• Shake up the line-up. Oral reports at the board meeting? Keep these at a minimum. But if there's one or two that will be requiring board action, ask the committee chair to designate a member on the board to give the report, or augment the report. Engage more members in the process of the meeting!
• Sweeten Up the refreshments. Ask a member if they'd bake or pick up from a bakery a special treat for the members to enjoy. A bit of sugar can add energy. Something special can add a smile, share some appreciation.
• Allow for some "Generative" time. Set aside a fifteen-to-thirty minute discussion time. No Roberts Rules. A conversation around something real happening in the community or the economy that'll be good for all to know, that impacts decisions, adds to the board's knowledge base. Get into the habit of asking different members of the board to come prepared to lead discussion time.
• Did someone say fundraising? What can the board do to stimulate revenue? It can't always be about cutting expenses. There needs to be some creative, new effort by members to devise a way they can add to the treasury. Will someone step up, propose an idea with some forethought/planning, and solicit members to pitch in?

So, let's find some energy sources to stir things up a bit, leave members thinking as they head for the door following adjournment, "Now that was a good meeting!"

An Act of Inspiration

I don't know where you were Super Bowl Sunday about 9:00 when CBS Sunday Morning came on. It's among my two or three appointment TV times. On that Sunday, I was blown away by a segment entitled, "Selling Your Home for Charity." Yes, you read that right. The Selwen family of Atlanta, Georgia sold their home and donated $800,000 of the proceeds to charity.
Hannah is the daughter in this family, and she couldn't reconcile seeing homeless, hungry people around her while living in the lap of luxury. So, she got the ball in motion.
Americans are generous. On average, we give 2.2% of what we earn to charities of our choice, including our church, synagogue, mosque...wherever you may go to worship. In 2008, our charity accounted for $307 billion (Giving USA, 2009).
The Selwen family has written a book, "The Power of Half." They took half the proceeds from the sale of their home and donated it to the Hunger Project; specifically, to build a mill in a town in Ghana. They used the other half to buy a home for themselves a few blocks away from where they once lived that occupies about half the footprint of their first home. In their book, they describe how the came to this act that goes beyond our understanding of "generosity." A twist on the saying, "build it, and they will come."
This Act of Inspiration came from a personal experience. Hannah Selwen had a philanthropic urge, and recruited her family to act on it. I wonder if there was some deep-seated sense for doing the right thing that drove her to act.
Stories like the Selwen's are good to hear.
I advocate nonprofits I work with to find their stories. How the program services they provide have changed peoples' lives for the better. How, if they could do a bit more, they could reach and serve a few more people. So the mission and the services provided can tap into the philanthropic spirit that lies within each of us. Well, at least 75% of us.
Henry David Thoreau said, "What is the use of a house if you haven't got a tolerable planet to put it on?" Indeed.
In the same segment, CBS also interviewed Willie Mae Dorsey, a checkout clerk at an Atlanta supermarket. Willie Mae told CBS she makes $25,000 a year and gives 10% of what she makes to charity.
Willie Mae is an inspiration.
We have lots of inspiring stories. Find them. Tell them. They bring out the best in people. They give people good reason to want to join you in making a difference in the lives of people you serve.
Use this link to see the CBS Sunday Morning segment: http://bit.ly/bx1eHd.
To check out my consulting practice: www.itstheresults.com.
To follow me on Twitter: @STEVENETWORK.
e-mail: s.p.99smith@gmail.com

Work It! Making Our Case In A Disaster Relief Environment

In recent weeks, I've been writing here about basic elements of fundraising: the annual appeal, follow-up to the appeal, and thanking donors. These are basics for nonprofit organizations building a revenue base. The base on which the donor pyramid is constructed.
Today, I want to write about the world outside your niche: the environment in which we live, work, recreate. Your nonprofit...your public benefit organization...is not an island unto itself. And the people who volunteer for you, donate to you, advocate for you likely have two to five other nonprofits they care ardently about. And, sometimes circumstance draws these supporters' attention to bigger picture issues: witness the January 19, 2010 5:00 PM 7.0 level earthquake that struck Haiti, causing devastating death and damage to Port au Prince, dislocating and maiming and "orphaning" millions.
There are many fine public benefit organizations that have been in Haiti doing God's work (will you allow me that reference?): World Vision, Red Cross, Doctors Without Borders, Partners in Health, UNICEF. Lots of fine people doing hard work for the people of Haiti. And now hundreds of millions of dollars, including $25 million via texting to Red Cross at Michelle Obama's recommendation, have piled up as have millions of tons of supplies at the Port au Prince airport.
I read Katya Andersen's nonprofit marketing blog http://aCalDE and learned that the tidal wave of support is starting to slow down, as the data from Network For Good clearly shows. What we learn, too, in these horrendous natural disasters (like Hurricane Katrina) that Americans get in a giving frame of mind, and don't limit their support to the current crisis. Actually, natural disasters seem to stimulate the propensity to give to causes beyond the crisis-helpers.
Sometimes board members, seeing all this attention to disasters, come to the conclusion that the nonprofit with a mission unrelated to the disaster should tone down the appeal. Maybe forgo the event or appeal or campaign because of "donor fatigue." My experience tells me otherwise. And Terry Axelrod, founder of Benevon (www.benevon.com) has advised a nonprofit I was associated with back at the time of 9/11 that we should proceed with our fundraising campaigns and special events. I would classify 9/11 as an unnatural disaster. The destruction of the World Trade Center was a different situation, obviously, than Katrina or the Haiti quake. But what we learned was that in trying times, people look for a ray of hope...something to support in the community or in a broader arena that will do good. There is a need, a drive to bond with a group or organization that's delivering something of value to people.
So, all this is to say: Work It! Keep telling your story, communicate with your supporters including volunteers, donors, stakeholders so they know what you are doing to deliver hope. To do good.
Noah Cooper wrote recently in Connection Cafe (http://bit.ly/8TdF6v) how advocacy groups used their networks, including social media, to influence the Obama administration to give temporary protected status to Haitians, whose immigration status might be not kosher, a break. Mr. Cooper (Convio) cited that as an example of how public benefit organizations with a humanitarian mission can use social media to make a difference. Some will argue that helping illegals is bad policy. Perhaps they're right. But right now, sending thousands more people to Haiti who will need vs deliver services would make zero sense.
My message to you is, keep telling your story: ask for support of all kinds: donations, volunteers, advocates for your cause. Engage and channel the energy for public good. Even in their personal malaise, a significant pool of people are looking to do their part to make the world better. Help them connect with you. There is room in people's hearts and wallets for your mission, if you help them make the connection. Sitting in silence, riding out the current financial storm, won't get you where you need to go.

How Many Ways Do I Thank Thee? Let Me Count the Ways

Last time we met, I wrote about the art and craft of follow-up: things to keep in mind after a year-end appeal, following up with donors who "lapsed:" who did not give as yet to the fall-winter campaign.
Today, lets consider how we thank our donors. What's good protocol to follow to express our appreciation for financial support of our nonprofit organization's mission?
All donors should be thanked. I recommend that you use a post card for donors who contributed modest amounts via mail. If your budget allows, have an attractive card designed with some color and original art work that will get your donor's attention.
Donors in the $50+ or $100+ range should get a hand-written note. I recommend that the CEO sign these notes, which can be -pre-addressed if there are lots; hand-written is definitely preferred. Most folks, especially those in the baby-boomer cohort or older, appreciate the thought, the personal nature of such a note. Good thing to do.
Those who gave on line might receive an e-mail thank-you note. If you can, have something nicely designed so it's attention getting. Also, it should be sent from the CEO or a board leader, and not in a group mailing, but individual. You can do this in an economical (time) way by having all recipients appear in the "bcc" field.
Larger gifts ($100+, $250+, $1,000+ depending on how you define it at your organization) should receive a written note and a call. This can be a good way to engage your board of directors in the fundraising process. Some may be reluctant to ask. I hope they would not be reluctant to thank. A telephone thank-you at work during the day, at home in the evening can be very much appreciated. I hope you keep track in your database of the preference of your donors as to how they prefer to hear from you. Please do this in a manner consistent with your donor's wishes. This can be part of your relationship-building plan: a way to learn something about your donor. Whoever thanks the donor, should listen for cues: is someone sick at home? Are they indicating difficult financial times? Is the donor telling you something about why he or she loves and supports your mission? Are they leaving on vacation? Have a child coming home for college break? Listen for this information. It's not helpful to pry. It will be very helpful to you when you're working on a major gift campaign to know things about your donors should they volunteer it.
And don't be surprised if you're invited over for a visit. Friendliness invites friendliness. Your tone on the phone, your interest if personal information is offered are generally appreciated, particularly by older donors.
Do you have special techniques you use in thanking your donors? Please tell us. We all appreciate good ideas, things that can become best practice.
If I can be of service in planning, organizing your next fundraising effort, please let me know.
My company is It's The Results, LLC, based in Lynnfield, MA.
You can reach me via e-mail at s..99smith@gmail.com. Or by phone: 781-334-4915.
And I welcome new folks to follow on Twitter: @STEVENETWORK.
Facebook can be useful, cluttered with what appear to be stickers (are we back in elementary school?), but I haven't given up on it. How about you?
Steven P Smith, Principal, It's The Results, LLC

Follow-up: Best Fundraising Practice

I hope your 2010 is off to a good start.

Did your holiday season annual appeal do well? Was your 2009 campaign better than 2008? It's not to soon to start looking at the numbers, comparing your results for the past three years. Hopefully, your results are in a database and you can track particular donors, their response each year, and maybe even trends by age, sex other demographics. This is good information to have...and maybe you have someone on your staff who loves to analyze numbers who will look for trends and bring that information to the team to discuss and figure what the trend is telling you. Don't have such a geek on your team? Call me!
Database or no database, it's time to follow-up with non-responders. Count on the fact that some of your donors may have overlooked you back in November and December when they were swamped with appeals from every nonprofit in kingdom come. But please don't be discouraged! Following up on your year-end appeal is one of the best things you can do to generate additional income.
As you prepare this appeal to donors you haven't heard from, remember these tips:

• Remind them about your mission, and what your nonprofit is doing right now to serve the mission
• Thank them for their past support
• In a short paragraph, tell your donors about a recipient, or a member, or a subscriber to put a face on the value of your service

In your follow up, please do not make your nonprofit the focus. Shine the spotlight on your clients, the people who benefit from your purpose in life. Generally speaking, donors don't respond well to "help! we just had our worst deficit!!" nor to "we'll have to lay off staff". Even in bad times, donors hear this variety of message as "do I want to support a failing organization?"

So...get cracking on that follow up. And if you're ahead of the game and your appeal is already out the door, that's great! Please write a note below, telling us how you do your follow up and the return you get. We'd like to learn from your experience!

Thanks for your attention. If I can be of any help in advising you on your fundraising approach, I'm just an e-mail or phone call away!

Steve Smith, Principal, It's The Results, LLC. s.p.99smith@gmail.com. 781-334-4915.

A Choice Donors Can Believe In

How often have you seen a letter or e-mail from a nonprofit/community benefit organization giving you multiple choices of what you can support? I've seen lots of them, and early on in my career, I probably wrote lots of them, too.
Intutively, it makes sense, no? Give the prospect or donor lots of options to support. They'll gravitate to one, right? They'll pick their favorite from the list and write their check to support that program or service.
Unfortunately, that's not the way it works, according to principles of direct response research. Fact is, if you give most donors a laundry list of services, they won't be able to focus. In most instances, these donors or prospects will get confused by all the options. And when confusion sets in, the prospective donor will frequently opt out.
Barry Schwartz wrote Paradox of Choice for the Freakonomics column of the NY Times. @jhusson tweeted about this recently. The link: http://bit.ly/6k3SN5. The bottom line: too many choices discourages choice. The research shows, if you give a small number of options to consumers, this can work in your favor; if you give a wide array of choices, headache and decision-avoidance will follow. In my view: less is more.
So, when you're making your pitch for a donation, keep this in mind:

• Keep it simple and make the pitch direct and uncomplicated
• Limit the number of choices you're asking the donor to support
• If you're suggesting a gift amount and the donor has a history with you, indicate last year's gift as an option, and offer graduated increments upwards...with a ____ at the end
• Connect the appeal with people receiving your service
• A story about a person receiving the service is the best approach

By the way. A tip of the hat to Jim Husson, Senior Vice President of University Advancement at Boston College, for posting this on Twitter. Jim has a solid perspective on what makes donation work.

Oh. And the more you practice, the more you look at what "the competition" is doing, the more you meet colleagues in this business and share ideas, the more effective you'll be. And your board will love you!

If You Got the Money, Honey, I Got the Time

Nothing vexes nonprofit boards more than fundraising. It's a never-ending battle, to generate the revenue to get the mission done. Why is this the case? How come there is so much frustration over raising bucks?
True, we're in some challenging times. Supposedly, we're emerging from what may be the worst recession since the Great Depression. And we're learning, daily, that unemployment continues to rise and new job creation lags behind a recovery. How can we deal with this misery and get some energy to raise the money we need to do the work that needs to get done?
Here are just a few tips that come from my days as a fundaising executive with the American Lung Association, including three-time Gold Award winner (in New Hampshire) for fundraising achievement:

• Tell our story. In our holiday appeal, in our newsletter, on our website let's tell our story about what we're doing for our clients. Be sure to make the appeal focused on those we serve, not "poor us." When we whine about hard times it sounds like we want the $$ for the organization, not for those we benefit with our service. Keep it simple, and ask.
• Check out our website. Have information (more stories!) that make the site attractive for return visits both for our clients and our supporters (donors!). Use Flash Player and have video, changing it weekly so there's fresh new material to bring people back. Post a weekly blog with fresh material on what's up with the benefit you bring to the community. Is it easy to donate? Are you using PayPal or credit cards?
• Re-tool event to raise more $$. Events raising under $10,000 should be evaluated for their capacity to raise significant $$. Your development committee needs to formulate a plan that'll get you step-by-step to the goal you need to reach. All folks connected to you need to engage their networks to help somehow raise appropriate amounts that'll get you where you need to go. A sound plan well executed will go a long way to getting you there!

There are lots of folks out there looking for organizations like yours doing good work in your community who they want to support. Times may be tight, but particulary at the holiday season most people will find a way to help their community at the same time they do their best to make Christmas merry for family and those nearest and dearest.

It's do-able!

The Board Role in Marketing: The Plan and Its Execution

Nonprofit boards of directors can learn and become very helpful in applying principles of marketing to advance the mission of the nonprofit they pledge to support.
The concept of "marketing" is in transition as people gain comfort and experience employing social media (blogs, Twitter, Facebook LinkedIn, YouTube, and more). Fortunately, marketing is not rocket science: it's built on some pretty common sense concepts.
When I write or talk or consult about marketing, I'm thinking about this:
A set of strategies designed to influence behavior of target audiences by preparing beneficial exchanges that will build a relationship between the individual and the organization (Alan Andreasen, Strategic Marketing).
I advise noprofit organizations to formulate a marketing plan that coincides with the strategic plan. And I advise that the strategic plan be rooted in the primary customer(s) of the nonprofit: the people you serve whether you're prividing education, health care, or a direct human service; or, if you're an arts organization running a community theater or any creative arts program. When your nonprofit organization is clear on whom you serve (primary customer) and the thing or service you deliver that has value to that customer, and you can measure the impact you're having, your nonprofit has taken the basic steps in executing a marketing plan.
The Marketing Plan addresses components of the marketing mix and how your nonprofit will apply it. The marketing mix includes Product, Placement, Price, Promotion. If we're lucky, we have a Marketing and Communication Committee among whose members are professionals who know how to apply the mix to bring maximum benefit to te primary customers, bring recognition and supporting customers (donors!) to the nonprofit, and advise the nonprofit on how to measure results in a low-cost way.
A tool I like to use when training boards in their governance role in marketing is Gary Stern's booklet, Champions With a Cause: The Nonprofit Board Member's Role in Marketing (First Nonprofit Education Foundation). Among other things, Gary points out that the board needs to

• Root all marketing decisions in the mission
• Develop Governance policies that guide marketing
• Use care and diligence in developing the nonprofit brand
• Develop clear marketing roles for board members, collectively and individually

Developing this Marketing Plan will help keep everyone strategically focused and mission focused.

Board members are not always fond of having to do this kind of work. If you have one or two members with professional marketing or communication experience, they can create and reinforce the kind of message you're reading in this blog. Enlist these volunteers to help lead the effort and coax the kind of behavior out of the board that will put your nonprofit on the map in your community. It's a challenge to get the energy together to move the board in this direction. Think of these words of Eleanor Roosevelt as you embark on this effort: Do what you feel in your heart is right, for you'll be critized anyway. Better to take the "damned if I do" approach. "Damned if I don't" is the road to nowhere.

Steve Smith is Principal of It's The Results, LLC, a consulting company focused on board development, strategic planning, fundransing. Learn more at www.itstheresults.com. Follow Steve on Twitter @STEVENETWORK. E-mail: s.p.99smith@gmail.com.