Say “thank you” even when loyal supporters don’t give

Tip #5 – How to raise money for your nonprofit in 2011

As the nation struggles to regain its economic footing, donations from the middle class continue to wane. Michigan will no longer allow taxpayers to deduct charitable deductions on their state income tax, beginning in 2012. That cuts an incentive to give. Let’s see…should I pay more in taxes or give to a charity, where I know the money will help shelter, feed or otherwise assist someone in need? I trust that decision will be rescinded when times improve and our leaders see the benefit of this vitally important tax deduction.

Photo by Liz Cezat. Huntington Gardens, Calif.

Many people who have donated to food pantries now find themselves in need of basic assistance. With foreclosures continuing to mount, donors who previously had extra money to share at the end of the month are hard-pressed to pay their own bills let alone donate to worthy causes. What’s a charity to do? Get by as best you can with alternative support (foundations; corporate gifts – many are sitting on lots of cash these days; and collaborations with other nonprofits that offer similar or complementary services.)

In the meantime, don’t dismiss loyal supporters. If you keep them in the loop, they’ll return to support your mission when the economy improves. When people have jobs again and can hold on to their houses, they’ll want to share their good fortune with charities that do great work fulfilling their mission.

Thank lapsed supporters in low-cost ways: send an e-mail or a postcard, include a line in your print newsletter. Let them know that you are still counting on them and their support even if they can’t help you now. If you need a creative way to do that, hire a good writer. In fact, I know of one.

P.S. I started with good intentions to provide five tips in the first quarter. However, this series was put on the back burner as I attended to client requests for articles and publications. Did I mention that my middle daughter got married in March? That meant I was also busy being Mother of the Bride – one of the best times of my life. Yes, there’s always an excuse for why business owners (and writers) put off writing their own blogs. The truth is that I’d much rather be writing for clients.

Getting the donor list right in an annual report

Recognizing donors in an annual report is a seasonal highlight. Their generosity helps drive your nonprofit organization. Yet getting the list right can be a real challenge. Most organizations use software that tracks donors, the amount of their gifts and special categories, such as giving societies. Make sure that it also has a section for how they want their name to appear in print and whether they want to be recognized for their gift or remain anonymous.

When running alphabetical lists, if you have more than one anonymous giver, you may want to put the number after the word – Anonymous (10 gifts) – rather than repeat the word 10 times.

When a donor is deceased, consider putting a small cross after the name and designating it at the bottom of the page. You don’t need to do this for estate gifts, since that’s implied in the gift category.

Amounts of giving: start from the highest and work toward the lowest. It’s a good idea to list gifts of $100 or more. For gifts of $99 or less, consider listing the names of donors on your website. Make a notation of this additional list in the annual report. 

Business giving is often listed along with donors. In-kind gifts should be in a separate section. 

When running your list for publication, have a couple people in your organization go over it with a fine-tooth comb. Look for typos, consistency in titles and credentials: list Dr. (M.D., D.O. and D.D.S.) but not Ph.D.s (professors and researchers), MBAs, CPAs or JDs, unless the donor requests it. Double and triple-check the spelling of your top donors. It’s far easier to proof a cheaper printed list than it is to make changes at layout stage.

Add a statement at the end of the list requesting any changes or corrections to donor names. Follow up promptly: update your database; send the donor a note or call them to let them know the change has been made on your records and thank them for their continued support. Consider adding a “Getting it right” section on your website to indicate corrections to donor names. (Newspapers do this on a regular basis.) You don’t have to include how the name was misspelled in the report, simply list how the name should have appeared. Take care of your donors - they make great things happen.