Got your attention?  Good. There’s something bad that’s happening in lots of nonprofits and I don’t want it to happen to you.

You see, lots of well-meaning people are making decisions for their donors instead of letting their donor decide.  They’re deciding how much their donors want to give and when they want to give, instead of letting the donor decide.  It’s rude and it hurts your fundraising.

Here’s an example.  Yesterday, I met with a wonderful, passionate woman who is Executive Director of a small nonprofit that is changing many lives for the better.  She was explaining to me how they keep in touch with their donors.  One strategy they use is to send gift summary letters out in January, but only to those donors who gave $200 or more during the year.

“Why?” I asked her.  I was shocked that they’d leave out so many donors and basically ignore them. She didn’t have a good answer.  Probably they do it to save money.  I explained to her that many of those “lower level” donors might be capable of giving much more if she spent a little time with them too.  She seemed to think that some of them had made a one-time gift.

I wanted to ask her “Since when are you all knowing?”  But I phrased it a little nicer than that. 

The point is this:  unless you’re a mind-reader, you don’t know WHAT is going on inside a donor’s head and heart.  Don’t make decisions for them.  Don’t assume that “the economy is bad and people won’t give.”  Instead, give your donors the opportunity to give when and how much they want.  When you cut them out because you think you know what they’ll do, you definitely won’t raise any money.

In 17 more days, we’ll be releasing the book that will answer many, many questions you have about raising money!  It’s “Get Fully Funded:  How to Raise the Money of Your Dreams” and you can get the entire scoop right here on the Get Fully Funded blog.

Happy New Year!

Okay, before you think I’ve gone batty, I mean Happy New Year to those whose fiscal year started July 1.  It’s a good time to think about how you’re going to do fundraising for the next 12 months.  And for those who aren’t on a July-June fiscal year, it’s a good time to check in and see how your fundriasing is going.

If you aren’t getting the fundraising results you want, here are 10 ways you can completely change your fundraising program and get the BIG results you want.

1. Spend more face time with your donors.  For some, it’s uncomfortable to be face-to-face with donors.  Maybe you aren’t sure what to say or maybe you believe your donor will think you’re just after their money.  I’m here to tell you that you need to work through and get rid of these negative thoughts because they are holding you back.  If you want to raise big money, you MUST get in front of your donors.  There’s nothing else like it.  You’ve got to stop hiding behind your computer and take your donors to lunch or visit with them in their home.  Nothing else has the same impact.

2. Increase the donor-focused communications.  Relationships are KEY in raising money and in order to build them, you have to communicate. This means you probably need to be sending more newsletters and more email updates about the work your nonprofit is doing.  We all have a friend that the only time we hear from them is when they want something.  Do you want to show up that way?  Of course not!  And the way you avoid that is by sending communications to your donors giving them an update on the work your nonprofit is doing. One caveat here – your communications MUST contain stories and information that is interesting to your donor.

3. Put more meat in your communiations.  Too often, newsletters and email updates fall to the bottom of the priority list and are hastily put together just to get them out the door.  I suggest you take enough time to prepare them to make sure they’re meaty.  In order for them to be effective, they MUST contain stories and articles that are interesting to your donor.  Put yourself in the donors’ shoes and ask “what would I be interested in?”  I’ll give you a hint – it’s NOT your new staff person or your new Board member or the industry award you just won.  Your donors want to know ahout the people whose lives are being changed by the work your nonprofit is doing.

4. Listen more, talk less.  As you spend time with your donors and get to know them, follow this simple rule – listen more, talk less.  If you do all the talking, how will you learn anything about your donor?  Ask open-ended questions and get your donor talking so you can find out about the deepest desires of their heart.  You want to find out why they care about your organization.  You want to know what motivates them to write that check.  When you learn a great deal about your donors and what makes them tick, you can better match them to needs your organization has.

5. Give your donors more ways to communicate with you.  Communication is a two-way exchange of information, yet too often, nonprofits fail to do that.  Information is sent one way, from the nonprofit to the donor, without an opportunity for the donor to give feedback.  So follow this rule: give your donors more ways to communicate with you. Invite them to call or email you. Offer a tour of your facility. Brainstorm about other ways you can give them to connect with you.  Even if they never take you up on it, they will appreciate that they have the opportunity to do so.

6. Help your donors feel special.  This is key!  Donors want to know that they made a difference. They want to be more than just “donor #5576″ on your list. So, help them feel special.  Thank them warmly and sincerely for their gift.  Respond immediately to any questions they might have.  Go the extra mile to let them know the impact their gift has made.  Communicate with them often.  Get to know them and what they’re interested in.  Donors who feel special become quite loyal to your organization!

7. Thank them profusely.  If you get this piece right, it will make everything else easier.  You MUST thank donors warmly, sincerely, and promptly every time.  No exceptions.  For VIP donors, call them to thank them for their gift.  Send a hand-written note expressing your gratitude.  Send a photo of your organization in action along with a thank-you note to your donor.  Get your Board involved in thanking your donor.  The bottom line here is that donors who feel properly thanked feel special and see themselves as partners with you in the work you are doing.

8. Give them a good experience.  Customer service is KEY.  Always be quickly responsive to your donors.  Return their phone call immediately.  Respond to their email right away.  Be honest and truthful with donors. The better job you do in giving them a good experience with you, the more trust you build.  And trust is the foundation of a good relationship.

9. Recognize them in ways that are meaningful to them.  It’s easy to look for shortcuts when you’re busy, but donor recognition is not a good place to take shortcuts. You MUST find out what would be meaningful to each donor you want to recognize for their support.  One size does not fit all.  I heard the story once of a donor who had received so many plaques from nonprofits that he started taking the metal plates off and building bird houses out of the wood!  Clearly, this method of recognition wasn’t meaningful to him!  What is special to your donor?  Get to know them and find out.

10. Ask them what they think. People LOVE to give their opinion!  So ask.  Ask your donors what they think about the work your organization is doing.  Ask them for their thoughts on your strategic plan.  Ask for their advice on your upcoming fundraising campaign.  See who they think you should be talking to in the community.  Just ask (and ye shall receive!).

You may notice that these 10 resolutions are all about individual donors.  That’s on purpose.  I believe that the greatest source of untapped potential lies in individual donors.  I also believe that for small nonprofits, the fastest path to cash is individual donors. I teach my clients and students that long-term sustainability in fundraising is about having a large donor-base and a strong donor-relations program. 

If you get serious about implementing these 10 resolutions, I think you’ll see the same results that my clients see – more donors, more donations, and less stress for you!  Best wishes and Happy New Year!

On our farm, we have 4 cats.  Each of them was rescued from a shelter and they are all a part of our family.  The fun part is that they are all very different from one another.  And none of them actually say “meow.”

I think when I was young, I learned that dogs say “woof” and cats say “meow.”  I guess my young brain thought that meant that all cats say “meow” and only “meow.”  But now I have all these kitties who speak a different language.

I don’t think I can spell the sounds they each make.  Each of them has a unique, signature verbalization which makes it easy to tell them apart from the other room.  Because I love my kitties so much, I’ve gotten to know them so well that I can tell them apart just by the sounds they make.

This all got me to thinking… how would fundraising be different if we got to know our donors so well that we understood their language?  What I mean is that they all have their own unique likes, dislikes, and things they like to talk about.  What if we took the time to know the specific phrases they use when they speak?  Or the stories they like to tell over and over?

I’m thinking that our fundraising would explode. If we took the time to get to know our donors so well that we speak their language, we’d be developing relationships that would last for years.  Our donors would feel important to us and would give to support our work over and over again.

So, spend some time learning the language of your donors.  Get to know them.  Learn what makes them tick.  You’ll raise more money.

I’ve been watching with sadness the controversy surrounding Greg Mortenson and the nonprofit he heads up.  I think it’s made my heart so heavy because I just read “Three Cups of Tea” which tells the story of how he got started.  I was very moved by the story and even wondering how I could help.  Then I started seeing news stories online about how money isn’t being used wisely, etc.  I hate it when any nonprofit has to face these kinds of situations.

Whether you believe in the allegations being made about Greg or not, it doesn’t really matter – the damage is done.  Lots of people will hear the accusations and believe them instead of digging in to find out what the real story is (by the way, the accusations never tell the whole truth).

There’s a HUGE lesson here for everyone.  Do EVERYTHING you can to protect your nonprofit’s reputation.  I’ve always said that your reputation is about all you have.  Once it’s damaged, it takes a lot of time and energy to repair.  Once it’s damaged, it makes a big impact on whether the community wants to continue to support you or not.  Once it’s damaged, fundraising gets a lot harder.

How do you protect your reputation?  Be trustworthy and honest and ethical. Be a good steward of the gifts donors have given.  Be willing to share your financial reports with anyone who wants to see them.  ALWAYS build trust with donors and the community.

Nonprofit leaders who don’t pay attention to this or gets complacent thinking “that will never happen to us” are asleep at the wheel and put their nonprofit’s reputation on the line.

It’s time to wake up! One person grumbling about how your nonprofit handles money can be the start of an avalanche you don’t want to be in. 

I was at a fundraising committee meeting recently and we were talking about growing the organization’s donor base. This is a common goal for nonprofit organizations, right?  Well, I’m always delighted when folks who don’t have formal fundraising training get it, as happened that day.

As we were talking about strategies for growing the donor base, we talked about how minimizing the loss of donors would help increase our overall number of active donors.  That’s when one sweet man said “we need to put our picture on their piano.”  We giggled immediately knowing what he meant.

I remember when I was little, my Grandma had lots of photos of family and friends on her beautiful upright piano.  That was her way of keeping them close and remembering them often.  The suggestion of putting our picture on the donor’s piano was a perfect way to describe the importance we need to put on relationships with our donors.  Our donors are so much more to us than just the check they write.  Their gift is a vote of confidence in the work our organization is doing.  It’s their way of saying they support what we’re doing and they want to see us succeed.  They, too, want to see the change we’re after in the world.

And that kind of support deserves our attention and respect.  Maybe we should put their picture on our piano, too.

Work rhythms are common. We all fall into ways of doing things that serve us in some way. We host the same special event each year or we submit the same grant application each year. It works for a while, but then attendance starts to drop off or our grant is no longer funded. But it’s a good idea to evaluate your work habits periodically to make sure they still work.

I was talking with a client yesterday and she was telling me about someone in her organization who has become a problem child. Every time others talk about changing things or trying something new, this woman says “that’s not the way we do it.” She’s not willing to hear a new idea. She’s so stuck in the old ways of doing things that she’s starting to impede the progress of the organization. In fact, she clings so tightly to the old ways, that she’s gotten quite negative with others and has lost sight of the mission of the organization. Others are now avoiding interaction with her because of her negativity. It’s become “me vs. them” and she’s determined to win.

I can remember working with a couple of people just like this. In one case, I came back from a conference with new ideas ready to implement, and she did her best to discredit me and squash my enthusiasm. I never could understand why she was so negative, unless she was terrified of change. Either that or she wanted to be the “Star of the Show” and I was stealing her limelight. Either way it was holding the nonprofit back from doing bigger and better things.

So, back to my original question. What happens when you do what you’ve always done? You get what you always got.

If you aren’t happy with the fundraising results (or any results for that matter) you’re getting, then you MUST change what you’re doing. Simple as that.

You have to find a way to get these negative folks on board with moving forward, or they need to be let go. I know that’s harsh, but it’s true. You have way too much important work to do in the world to be held back by someone who has their own agenda.

Have you had experience working with negative people in your nonprofit who were reluctant to change? I’d love to hear your story. Click on the comment link and share.

Missy is one of four cats that live here with us. We adopted her from a local shelter about 10 years ago and she’s a sweetie. She’s the oldest and the smallest of the pack and to help her keep weight on, we feed her canned cat food every afternoon about 4 pm.  She LOVES her “tuna” as we call it and eats every last bite.

Lately, I’ve been watching her and thinking that Missy might have something to teach us about fundraising.

She knows what her goal is. Missy knows what she wants and every afternoon, she waits in her usual spot for her dinner.

She’s hopeful. When anyone walks to the kitchen at any time in the afternoon, Missy goes too, just to see if she might get fed early.

She builds relationship. She gives out lots of love during the day to those who feed her.

She expresses appreciation. She purrs and gives out love to those who help her reach her goal.

This is all good, but sometimes she’s a pest.  In fact, we’ve started calling her “Pesty Cat” because she ALWAYS wants to be fed.  This is a danger for many nonprofit fundraising folks – always showing up with their hand out for money.

If that’s how you approach fundraising, your donors will likely get tired of it.  Make sure that you ask often enough for a gift, but not too often.  It’s a fine line to walk, but one your donors will appreciate if you can get it right. If you want to take it a step further, ask your donors how often and when they’d like to be asked for a gift.  It puts your donor in charge of the relationship and they’ll be much happier.  You’ll likely see your results go up and your expenses go down.  Wondering how to do that?  Survey your donors and simply ask them what they want.

Gotta go – Missy is ready for her dinner!

I’m a huge advocate of making things easy for your donors.  It’s part of relationship building and that’s what good fudnraising is all about.

Something you can do this month (January) is to send your donors a summary of their giving for last year.  Even if you sent receipts for everything they gave last year, they may or may not be organized enough to keep up with them.  A summary will save them time looking for a bunch of receipts.

I got one recently from one of the groups I support.  It came via email and is really well done.  I wanted to share part of it with you.

“Dear Sandy,

Thank you so much for all of your support in 2010.  It proved to be an amazing year for the families of The Restoration House and the organization as a whole. In 2010 we had three families transition from TRH into independence, we had two single mothers get their drivers’s license, we helped five families acquire automobiles, we helped four more mothers graduate from some form of post-secondary education, three more began new jobs, moms and kids alike donated many hours of community service to others, kids in middle and high school saw an improvement in their grades, and so much more.

It is because of people like you that these families are finding hope and doing everything they can to change their future.  We look forward to 2011 and are confident that you are right here with us.  It is wonderful to be partnering together.  This year promises to be one of exciting changes for The Restoration House as we roll out a new non-residential church-based program for single mother families, look to break ground on our new single mother family community, and much more.  Thank you again for your support.

This letter is a summary of your 2010 contributions for your income taxes.  If you have any questions, please don’t hesitate to call or email me.  Thank you so much.”

I love that there’s a summary of what the organization has accomplished during the year and a bit of what’s to come in 2011.  As a donor who really believes in this nonprofit, I’m excited to see what they do this year.  Knowing them, it will be awesome!  (Wouldn’t you like to have donors who think you’re awesome?)

Oh, here’s the ps for the letter:

“We will also be sending out hard copies of this letter,  but wanted you to be able to get a jump start on your taxes if you needed to.”

It’s all about making it easiy for your donors.  Are you sending out a giving summary letter for your donors this month?  I’d love to hear how it goes for you.

“78% of individual donors said they would definitely or probably give again to a charity  that provided them with prompt,  personal gift acknowledgement followed sometime later with a meaningful update on the program they had funded.

Penelope Burk

What can you do to provide your donors with a meaningful update?

Too often, nonprofits get the gift and then move on, forgetting the most important parts of fundraising.

Acknowledgement and stewardship are crucial for building relationships with donors. Acknowledgement you probably understand.  It’s about thanking donors and recognizing them for their support.  But what is stewardship?

First, here are some definitions of a steward:

• —An administrator for the property of others —
• A person put in charge of the affairs of others
• —A person morally responsible for the careful use of money, time, talents or other resources of a community or group

Stewardship is important because it builds trust.  When your donors know that you are using their gift wisely, they’ll be more likely to want to give again. And when you get a reputation for using donations wisely, you’ll attract more donors.

As I see it, there are two key pieces to effective stewardship:  1, you have to do it and 2, you have to communicate it to your donors.

The first piece is simple – make sure that the donor’s money is spent appropriately and wisely.  Make sure their gift is set to work as it was intended when it was given.  The second piece requires you to let your donors know that their gift was used wisely and had the desired impact.

How do you do that?  A simple update email or letter can accomplish it, or you can include something in a print or email newsletter.  The important thing is that you are letting your donors know how their gift is being used and you’re connecting with them.  You’re respecting your donors and pulling them closer to your organization.

Your donors are not ATM machines.  They want to be a part of the work your organization is doing.  So, treat them as partners.  Be a good steward of their gifts and build relationships with your donors.  You’ll be glad you did!