Feed your donors first to instill giving

Tip #4: How to raise money for your nonprofit in 2011

Have you heard the saying, “The more you give, the more you get?” When reaching out to expand the number of donors who give to your organization, “feed” them first. I’ll touch on three ways to do this.

The first is through information they can digest. Present the need in a compelling manner. Many nonprofits do this with an appeal letter. Consider year-round efforts through a quarterly e-newsletter or print newsletter to keep your donors informed of the need and how their contribution will help the cause.  Bulletins or updates can be done online when there’s a deadline looming – typically to boost donations at year-end or before the start of a major program.

A second way to “get more” from donors is to host an informational session at the point of interest (where the donor funds will do the most good). Whether it’s the opening of a new hospital, a new park for under-served kids, or the wing of an art museum, invite prospective donors and longtime supporters to the actual location. You may need to erect a tent – but that adds to the festive atmosphere.

Painting a picture of “before” and “after” cements the reasons for giving. If it’s before, have a rendering of the building or wing on a poster and handouts. More often than not, donors need to see the end result rather than trying to envision it when they consider making a major gift.

The informational session can be packaged as a presentation, tour or seminar. Make a video of the event and post it on your website for those who couldn’t attend. Use the video as a reference for new donors.

The third point is to feed your donors. Refreshments make the “ask” more palatable at an informational session.  It’s a time-honored tradition to take wealthy prospects out to lunch or dinner and discuss your cause. Widen the net and include more mid-range donors and new prospects at informational events. They may be just the ones you need to increase planned giving and special gifts to your nonprofit.

By feeding your donor base regularly, your organization is fostering larger gifts and loyal supporters. Please share your experiences and other ways to feed donors.

Find bigger donors through social media

Tip #3: Follow and Link In with potential donors online

It’s no secret that fundraisers keep dossiers on people of high net worth when they are cultivating them for a major gift. To speed up the time frame between collecting information and getting to the “ask,” it pays to link-up with or follow some high net-worth individuals online.

It’s true that many high net-worth individuals have staff or assistants who do their social networking for them. You may need to go the circuitous route: follow their companies, their spokespeople, their foundations. They’re online somehow.

For universities, alumni are a major group of supporters. If you are a fundraiser at a college, join your organization’s alumni group on LinkedIn. Glean information from alumni about their allegiance to their alma mater, find out how many received scholarships and frame a question about whether they would support a student through a scholarship. Make the initial “ask” in a conversational manner rather than a formal request. Then follow-up offline. Don’t put someone on the spot on a visible communication stream.

Get creative about finding your supporters online. Do you follow prospective supporters and funders? Have you made a successful “ask” based on social media? Share your story.

Empower volunteer efforts

Tip #2: How to raise money for your nonprofit in 2011

Does your organization have volunteer groups that host events or challenges to raise funds? If so, draw up a list of ideas that they can use to raise funds. These smaller fundraisers may generate $5,000 or less, but it all adds up and can fund low-cost necessities that make a difference to the people that you serve in your nonprofit. Some examples are providing textbooks to low-income students; transportation to uninsured patients; outings for kids in foster homes; or household repairs for seniors struggling to stay in their homes.

Here are some ideas for your volunteer groups:

1.     Host a comedy club. If you’ve got friends who are the life of the party, invite them to use their jokes for a worthy cause. We all need a good laugh. Secure a hall rent-free (their contribution to your nonprofit). Have vendors come in and sell their food, giving your nonprofit a percentage of the sales.

2.     Go one better and stage a talent show, like they used to do in middle school…except use adults. The more outrageous, the better. Not to say that many of your friends and associates don’t have legitimate talent. But if they did, they probably would be in show business.

3.     Sell on Ebay. Collect items from people who want to get rid of “stuff” and auction it off with proceeds going toward your nonprofit.

4.     Silent auctions remain popular. Live auctions are even better because they build excitement and feed off each other’s bids. Plus, the auctioneers have a way of getting you to bid on something you otherwise might not want or need. Peer pressure reigns supreme at these events.

5.     Food cook-off. Select good cooks who are willing to prepare their favorite meal for a large group. Add in some great bakers who are willing to donate cupcakes, cookies, breads and cakes and you’ve got an event. Add some fine wines or specialty drinks by area bartenders and it will be an afternoon or evening to remember.

Five Ways to Boost Donations in 2011

 #1 Get more donors through social media

As philanthropy (advancement) professionals at healthcare systems, universities and nonprofits plan for higher levels of giving in 2011, it’s a great time to assess where new funds will come from and what these new donors need to know.

This series of five blog posts will review a range of appeals and report on best practices, based on news, my views (professional and personal) and research.

Social media will increasingly become the way to raise funds among donors who don’t need “cultivation” by development (advancement) professionals. These gifts typically are in the range of $5 to $50 and are generated through stories and appeals made to friends, family members, colleagues, alumni and neighbors on various social networking sites (Facebook, Twitter, YouTube, LinkedIn, etc.) Survivors tell their stories about overcoming breast cancer, colon cancer, heart disease, leukemia, addiction or other illness. Supporters become actively involved by registering for a rigorous walk, bike trek or mountain climbing adventure to help fund a cause.

Based on these personal appeals, motivated readers are directed to make a donation to the organization’s online fund. If the site also offers the option to mention the donor’s name and gift amount, that provides donor recognition and spurs additional donations from those who view the list and recognize friends, family members and others. The utility of using PayPal or credit card payment for online giving is a must. An automatic “thank you” receipt generated online is a great finish to this program. The whole process is fast, efficient and effective.

As an organization, make it easy for your supporters to use social media to tell their story. Include a widget on your website, develop an app, seek followers for your social media sites and conduct online surveys to elicit stories from beneficiaries and supporters. Go beyond the “like” button. Ask for input. Invite questions. Engage potential donors by asking them to take one action (then another and another) toward support of your organization.

Who does this best? In my view:

• Leukemia & Lymphoma Society  - compelling patient stories via e-newsletters
• Susan G. Koman 3-Day (for the cure) - sponsor sign-up & participant registration

Share your thoughts on these or other organizations that know how to harness the power of the web to draw in more donations.

Create an entrepreneurial spirit at your firm

Innovation is vital to professional organizations 

During these tough times, innovation is key. Take the best of what you do and embed it into new products or processes. If you produce something of quality (product or service), can you also transfer that element of quality to another aspect of your business to increase sales or ease the cyclical nature of a product or service?  

I recently interviewed a retired V. P. of a large snowmobile manufacturer. At one point, the company's assembly line only worked six to seven months out of the year producing snowmobiles. When the new management team added ATVs to the line-up, sales grew and the production became year-round. Sales did so well that the management team took the company public five years later and the V.P. took an early retirement with his stock proceeds.

In my business as a writer and marketing consultant, when print items such as brochures and newsletters are chopped due to budget cutbacks, the same content can be delivered in more cost-effective ways: websites, blogs, presentations or slivered into social media “key messages.” With my expertise at producing large-scale print projects, I'm now offering memory books for loved ones. These mini biographies tell a person’s story from many different viewpoints, complete with photos. 

If you work at a law firm, create a profile of your ideal client and find ways to reach that audience. Doing pro bono work also opens new doors. Since most lawyers have a specialty, penetrate the markets that could use your legal knowledge and advice. Get the word out by sending e-newsletters detailing successful case resolutions to those market segments.

My marketing adventures included working with a podiatrist who also offered orthotics and diabetic shoes, thereby supplementing office visits with products. I also worked with an internist who added nutrition supplements and nutrition counseling to expand the office practice. These are natural extensions of one's expertise. How can you expand and supplement your professional services?

Entrepreneurs may be the economic game-changers

I attended the Michigan Emerging conference for small business at the Ford Conference and Event Center in Dearborn on Nov. 17, 2010. It was an energizing event, chock full of information and motivation. Naively, I asked the registrar if today was Nov. 11, since I was writing a check for the conference (trying to save the sponsors a credit card fee.) She politely told me that it was the 17^th.  Okay, so I was a week behind the times. But the conference quickly brought me up to date.

The business climate in Michigan is electric. People are buzzing with ideas, plugged into the community and depending on social media and phone apps to launch new programs and spread the word about existing services or products.

I met several other entrepreneurs whom I have known over the years. I mentioned to one that this meeting truly embodies a sense of “We can make this work.” vs. “This business climate is dismal; let’s just wait it out.” He agreed that the tide is turning and greater prosperity may be right around the corner.

The conference was electrifying and I believe that Detroit is on the forefront of an entrepreneurial revolution (take off on Chevy’s “American revolution” campaign”). Henry Ford and his good friend Thomas Edison launched successful ventures in decades past. Maybe fellow Michiganders can follow in their footsteps.

The conference ended on an upbeat note. The owner of five Subway shops in a town that fronts Lake Huron is visiting 200 Michigan cities and running five miles in each to promote small business. He asked the audience to say in unison, “We believe in Michigan” as it was video-taped. It only took two takes to get it right. Make no mistake, we, as entrepreneurs in Michigan, are enthusiastic about our endeavors and will work relentlessly to make our goals a reality.           

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.