Nonprofit Fundraising Tips

I recently updated the official NPT blog with a story about MBA programs pairing up their students with local nonprofit boards. As recently as 2009, only 2 percent of board members were under the age of 30. That's why bringing in Board Fellows can be of great use to boards, especially when it comes to fundraising. Here's an excerpt from the story to drive that point home:

Bell didn't just attend meetings while serving as a Board Fellow; he also assisted the board's fundraising committee by analyzing the organization's five-year strategic plan. His assistance played a key role in developing a new evaluation system for students, which ultimately resulting in $275,000 in additional funding. All this was done at the end of his one-year term.

That's a whole lot of new fundraising dollars coming in for just a one-year term. Nonprofits should definitely consider getting involved with Board Fellow programs.

Just read a very interesting article from The Washington Post about how nonprofits are coming up with new ways to survive in an increasingly difficult economy. We just published a blog post on that article. Here's a sample from it:

The economic slowdown has made life tough for all Americans, and nonprofits have been especially hard hit. As a result, they have had to develop new, creative strategies to stay afloat. The Post article gives the example of Columbia, Md.-based Ulman Cancer Fund for Young Adults. The organization narrowed its operation from national to local to take advantage of the growing number of corporations that are giving locally rather than nationally.

As successful as the concept of the virtual walk has been for Help the Homeless Walk--it raised $6.5 million for 118 nonprofits in the D.C. area last year--there has been talk that Fannie Mae is planning to pull out of it in the future. As a result, a D.C. nonprofit called N Street Village is planning to run its own version of the event next year. Part of the preparation for this included using YouTube to recruit new participants. Stuart Allen, the organization's associate director of development, was quoted in the Post piece as saying that they wanted to start reaching out as early as possible so it won't feel as "shocking" for people who have already supported them using virtual walking.

Hispanics have accounted for 50 percent of the nation's growth since 2000. In addition, they have increased their population in the US by 37 percent between 2001 and 2009 and, according to the 2010 US Census, they make up 16.3 percent of the population. These numbers make it clear that nonprofits should do all they can to tap into this growing group. What are the best ways to go about acquiring Hispanic donors? The NonProfit Times recently wrote a piece on this topic:

*Spanish/Bi-Lingual Language Generates Lists -- When looking at this information, do not take "Spanish Language" in a title of Datacard as fact. It can be deceiving. In addition, research the list source, rely on usage information and understand the mailing cycle.

*Hispanic Affinity Lists -- These are lists from companies with Hispanic audiences and Hispanic influence, but include Hispanics as a subset or larger group they prospect. Look at the non-Spanish speaking/Hispanic names if a Spanish acquired list exists. Also, cross reference terms or words closely related to Hispanic culture.

*Enhanced DM-Sourced Lists -- When using these lists mail and evaluate multi-buyers generated from these sources differently. Also, be savvy about how the names were identified and ask questions.

Halloween is a time of costumes, pumpkins, scary sights and, most importantly, candy. It's also a great time for nonprofits. As a matter of fact, the holiday can be a prime fundraising opportunity for many organizations. [i]The NonProfit Times[/i] just put up a story about the different ways that nonprofits do fundraising on Halloween. Here's a sample from the piece:

While many of the nation's charities eagerly anticipate the holiday season as their peak time for fundraising, Halloween is prime time for some nonprofits. For Goodwill Industries International, Halloween has become a welcome opportunity to sell more merchandise and raise more money.

"Traditionally, October is our highest retail month," said Charlene Sarmiento, a spokeswoman at the Rockville, Md., headquarters. "People are always looking for affordable costumes and we're happy to give them that opportunity. In addition to people looking for costumes, we also get plenty of Halloween decorations and costumes."

For charities that operate thrift stores, October has become one their busiest months as Halloween enthusiasts look for a more creative touch than just buying a costume at a superstore.

In the past two years, October was the highest sales month for Goodwill, according to Sarmiento, representing about 10 percent of the year's total sales. Second to October is typically March, which earned about 8.5 percent of total revenue in 2009 and 2010. "We have really seen an uptick of people coming in the past five years," she said. "We have been trying to use social media to alert our friends and followers of various Halloween events happening at our stores."

Among the events that have expanded Goodwill's engagement with donors are "Ghoulwill Balls." Usually held the week before Halloween, these are costume parties that include auctions, dancing and "spooky entertainment."

***

Read the full article here.

Finding consistent streams of revenue can be a challenging task for a nonprofit. Donors come and go, and sometimes special events don't go as planned. Organizations must constantly find new ways to increase their revenue if they are going to survive in this competitive market. Here are some tips that were gathered at the 2011 Bridge Conference:

-Find creative ways to increase operating dollars. For example, the National World War II Museum offers free admission to vets. It is able to do this because it launched an online "$10 For Them" campaign, which resulted in more than $100,000 in one fiscal year.

-Go beyond Recency Frequency Monetary Value (RFM). Make sure you are getting donors who have responded in the past.

-Know what you have in your database(s). Run a quarterly merge/purge so that your messaging is reaching the biggest and best targets.

-Review your past results. What can you learn from your previous successes and failures?

-Don't try to beat your previous efforts. Instead, improve on them.

When you see the word "study," mostly negative thoughts come to mind. Studying for an exam means stress and little sleep. A government study means action will be postponed or prevented. In the nonprofit world, a feasibility study might be the best possible thing for an organization looking to start a project.

Feasibility studies aim to uncover the strengths and weaknesses of a proposal. These studies require the cooperation of all members of a nonprofit, including the board, CEO, and of any foundation being asked for financial support. The feasibility study consists of four steps, as outline on The NonProfit Times:

* Phase 1. Preparation: 30 days. Review all data, assemble names of potential interviewees, draft an invitation letter and schedule interviews. Remember to make reminder calls, finalize the list of questions and send thank-you letters.

* Phase 2. Interviews/Focus Groups: Five days. Conduct interviews and focus groups, outline the plan, keep development staff advised of the process. Strive for a minimum of 30 individuals, Identify prospective donors.

* Phase 3. Final Report Preparation: Two to three weeks. Review and organize all data, hold team evaluation and development of strategic conclusion, draft the report and submit the report.

* Phase 4. Report presentation: One day. Present report and assist with the next steps, questions and other support. The report should lead to a challenging and realistic goal.

One of the most basic rules of etiquette is to say "thank you" when someone does something nice for you. The same rules apply for fundraising. Donors are more likely to give to your organization again if they sense that their contributions were noticed and appreciated. There are many ways to conduct a successful thank you campaign, including:

-Sending personalized e-mails or letters to donors after the gift is received. It's very important to avoid sending automatic responses to gifts. Donors will not appreciate this.

-Setting up a phone-a-thon. These can take a lot of work, but the effort is usually worth it. Some people consider phone calls more personal, so these can be very effective.

-Send shout-outs on social media sites like Twitter or Facebook. Going online can combine the best of public praise and a personal contact.

-Create interactive thank you pages. These provide a more exciting and unique option than a traditional thank you note. Creativity is always appreciated!

-QR codes. These black-and-while graphics that look like bar codes can link people to a website using a smartphone.

Nobody likes "the ask." The fear of rejection or hostility is a very human trait, and it's something that fundraisers have to deal with almost every day. The best fundraisers know they have to have thick skin, but it doesn't mean the ask is any easier. Is there anything nonprofit employees can do to get over these fears? Thankfully, the answer is yes.

-Know what you want to ask and how you want to ask it. Sounds simple, but it doesn't always happen.

-Know what the needs of the prospect are. How can the gift meet or exceed their expectations?

-Time your ask based for the benefit of the prospect and/or for a critical project.

-Create a great solicitation team.

-Make sure you have multiple asks happening weekly. The more you ask, the more you will receive.

Nonprofits can raise funds through a variety of different methods. While a large amount of these funds come from direct donations, special events play a large part as well. These events can be concerts, galas, special speaking events, or other large gatherings. These can take a great deal of effort, but that effort is repaid well if it's done properly.

The backbone of a great special event lies in the strength of its volunteers. You are going to want to find individuals who are totally committed to the cause for which the event is raising money. If a volunteer is not enthusiastic about it, they will likely not put as much effort into making sure things go smoothly. That's why it's important to have a solid screening process when picking volunteers. One great suggestion is to create a questionnaire for potential candidates that might include questions like: "How many people are you comfortable working with?" or "What skills are you proficient in?"

All potential volunteers should also receive a document explaining, in detail, the goals of the event, and what you expect them to do. This last point is especially key. People don't like getting surprised with work they weren't prepared for, so make sure you list everything you want your volunteers to do.

These simple tips will help you pick out quality volunteers for your big special events. Feel free to leave more ideas in the comments section at the bottom of the page.

Among the goals of most nonprofits is to raise money, and that can include major gifts. The process of asking for one can seem like a big challenge. It can very intimidating asking a donor for more and more money. That's why it's so important to cultivate relationships with donors before you move onto the big dollars.

-One of the best ways to start this cultivation process is through education and outreach activities. By showing the value of philanthropic investments and by highlighting value-added benefits, you can quickly upgrade prospects to mid-level donors.

-Once you have acquired these mid-level donors, you will have to work on upgrading them further. This can be done by providing them with information that demonstrates mission impact, while giving them a multitude of monthly giving options.

-Finally, you must make these newly upgraded mid-level donors feel like they play an active role in your organization. Introduce your CEO to them, listen actively to their suggestions, and provide a high level of transparency.

This isn't exactly a tip, but I thought I would share this article that was just posted on The NonProfit Times. It appears that the United Way of King County, located in Seattle, was the highest-grossing affiliate in the nation. It raised over $100 million in 2010, making it the only United Way affiliate to top that number. Here are some of the other high-grossing affiliates:

* United Way of King County, Seattle, Wash.
-- $117,390,119, up 17.7 percent from $99,770,036
* United Way of Metropolitan Atlanta, Atlanta, Ga.,
-- $96,675,444, up 3 percent from $93,876,812
* Greater Twin Cities United Way, Minneapolis, Minn.
-- $89,215,904, up 1.1 percent from $88,205,538
* United Way of Greater Houston, Houston, Texas
-- $77,079,571, down 2.7 percent from $79,177,806
* United of Greater St. Louis, St. Louis, Mo.
-- $73,825,094, up 2.8 percent from $71,826,029

You can read the full story over at The NonProfit Times.