Fundraising Tips and Resources

Three Steps to Address Endowment Spending in the Time of the Great Pandemic

July 1, 2020 By Debashis Chowdhury

Much has been written of high market returns over the past few years, and the COVID-19 pandemic will certainly lead to higher volatility going forward. What hasn’t been written is that these data points have created a precarious situation for endowments and the organizations they support: Spend rates are up or at unsustainable levels, often beyond realistic expectations for real returns.

If real returns for most portfolios are unlikely to meet these increased spending goals, what should endowments do to adjust to this new market reality?

The resolution is not simply an exercise in math, in providing guidance for expected returns from a given portfolio, then backing out a realistic spend rate. Such an approach may avoid disaster, but it does not resolve a common issue connected to spend rates and to portfolio construction: a communication disconnect between the investment and operational sides of an organization.

This is not to say that the investment committee and operational management are necessarily at odds, but that they are often both working toward the best interests of their organization—using differing definitions for “best interests.” Operational management is fulfilling the daily work of an organization now and planning for the immediate future. This requires growth and thus increased expenditures, which stresses all sources of funding and may lead to a request for more endowment dollars. Meanwhile, the investment committee is ensuring perpetuity, funding part of the organization’s mission today, but not at the expense of its future. Those viewpoints are always going to be at least somewhat at odds.

To further complicate the situation, we are all human. Increasing spend rates have many complex justifications, but in the end, increased endowment spending is a direct result of human decisions made with human expectations: Returns have been strong for years; we can afford to spend more.

Optimism is a part of human nature, as is the desire for independence, which leads to the second reason for increasing spend rates: a desire to minimize reliance on increasingly uncertain sources of public funding given the fiscal pressures that states and local governments are facing during the pandemic.

That second reason is a valid desire. The market pressures that create lower expected returns long term can also depress public funding and philanthropy, putting even greater pressure on the endowment. How should a nonprofit’s investment committee manage this perfect storm?

Start with getting both sides together.

Investment consultants should do this at the start of a client relationship; in-house teams would be wise to put such a meeting on their next agenda. Have both sides bring short- and long-term goals and be prepared to talk about how they define the best interests of the organization. The goal is as great an understanding as possible about all aspects of the business that affect funding requirements: risks, needs, long-range plans, regulatory, donor community’s appetite to give, and non-financial market pressures; everything.

Have a candid conversation.

Identify consistencies and inconsistencies. Don’t stop there: Discuss how those goals and plans affect budgetary needs and all sources of income, not just the endowment. There are four primary sources of non-endowment funding for most nonprofits: philanthropic donors, public funding and grants, operational revenue for entities like colleges and hospitals, and current and future debt financing. A well-designed portfolio shouldn’t operate in a vacuum, as though it were unaffected by the business end of the organization.

It is part of an interrelated funding system that includes both operational and investment levers. The manipulation of those levers can affect how much pressure is put on an endowment, regardless of whether the manipulation takes place on the investment or operations side of the house. Too often, portfolio decisions and spend rates are set without a full understanding of the business pressures that the organization faces operationally. Businesses experience operational volatility; it’s an accepted part of the for-profit world and is no doubt a main concern of the operational management team at a nonprofit.

Market volatility is something that investment committees talk about often; almost daily in an uncertain financial market. But operational volatility is often absent in investment discussions. It should not be absent. A regular open communication session helps ensure that changing operational needs are part of investment decisions.

Revisit this collaborative planning session regularly.

It doesn’t need to happen annually; probably somewhere between one and five years is right for most nonprofits. Let your nonprofit’s unique situation determine the timing. Higher volatility than expected—for either markets or operations—may indicate that it’s time.

This approach may seem outside the scope of investment consultants to some. After all, we are not management consultants, paid to improve business operations. But this approach is critical to helping nonprofits make smart decisions. Our bias, always, is to ensure that investment committees and organizations make decisions grounded in reality, not grounded in hope. Excess optimism and excess pessimism both are not good for long-term investing, but reality is.

Client history #1 – a too optimistic spend rate

The value of this approach becomes apparent quickly for many clients, even when their situations seem to be strong. One community hospital engaged us just after the Affordable Care Act (ACA) took effect. They had a high spending goal for their portfolio at 5.5%, well above the national average of 4.4%, but attainable based on the previous three years’ returns. Going forward, however, 5.5% would be difficult for a hospital endowment—to achieve the long-term returns necessary to sustain it, they’d need to take on disproportionate risk for a hospital. Such risk may not have been unreasonable in the right circumstances, if, perhaps, other funding sources been solid.

But at that time, they—like all hospitals—were uncertain of how the ACA would affect reimbursements and revenues. Few hospital CFOs then held any confidence in revenue projections. Worse, the same market factors that weaken returns often cause donors to decrease giving. At the exact moment that they needed to throttle back endowment risk and spending, they were uncertain how or if they’d be able to meet future budgetary needs. It was a triple threat.

We had to have an uncomfortable conversation once we got both teams in the same room.

The hospital was still fiscally strong at that time, and was a valuable asset to its community. By bringing the finance team in and showing them the reality of the risk to the endowment—which was not on their radar because they were by necessity mired in day-to-day operations—we were able spur a review of overall budgeting, fundraising, and financing. We were the bearer of bad news—they couldn’t rely on higher endowment spending—but the result was a donor drive that used all the information we’d provided on future market returns and the long-term health of the endowment. That drive succeeded. It raised funds to bridge the gap and ensure that they could weather the expected and potential revenue changes. The negative became a positive.

Client history #2 – a too conservative approach

On the opposite end of the spectrum, another client faced an enviable nonprofit situation: Their operational revenue and donations were both excellent. They were a valued part of their community. Their spending rate was realistic.

Despite no apparent problems facing the endowment, we brought both teams together for a collaborative discussion. The investment committee still faced a dilemma: The operational side was conservative and had been building up cash reserves far beyond common standards for days cash on hand for health-care entities. They had about a year and a half of cash on hand, millions of dollars earning little interest or contributing to the long-term success of the organization. The investment committee was stunned.

We had to engage in a tough series of discussions about the point at which conservatism is no longer in the organization’s best interests but is actually detrimental to long-term independence. Those reserves were so strong that including them in the portfolio decisions allowed them to take more risks and provide more long-term returns and stability.

Had we not engaged those conversations, the portfolio would have been structured differently and the investment committee would still be unaware of significant cash reserves.

Communication is the key

While this holistic analysis is not a panacea, in our experience, there is tremendous value in connecting these two parties. In practice, the focus of each can be very different and in direct conflict with the other, leading to a divide in communication and collaboration. This is not a fault of either team; it is simply a result of the typical structure of nonprofits and their endowments. There is no one-size-fits-all investment strategy, but communication is a one-size-fits-all solution that can strengthen not just the investment portfolio, but the organization overall.

This eyes-wide-open approach leads to stronger decisions and a stronger organization over the long haul, able to manage both market and operational volatility. The focus of this communication and of portfolio structure should not be on predicting, but on preparing. A prepared endowment makes for a powerful future.

After the Storm… Post-Crisis Fundraising

May 20, 2020 By Melissa Biggar

The COVID-19 global health pandemic hit the U.S. harder than originally anticipated. More than eight weeks into self-quarantine and physical distancing mandates, many non-essential businesses across the country still wonder when and if they might reopen. The crisis has bumped unemployment to record levels. Economic forecasts are not optimistic for the near future, and across the nation individuals and businesses are rethinking investment and operational strategies. Even nonprofits that work with those directly affected by the epidemic are operating on Plan B, and many more whose work is considered peripheral to the health emergency are concerned their donors will be more focused on crisis-management philanthropies…if they’re thinking about philanthropy at all. Other than emergency relief fundraising, many think now is not the time to look for donations.

However, some fundraising experts say those nonprofits might want to reconsider; in the midst of a crisis – and immediately after, when the dust has begun to settle – there are tactful yet effective ways to seek support.

“It’s important to remain in touch with donors in times of crisis. Keeping supporters informed of your organization’s response tactics, as well as checking on their well-being, goes a long way toward good stewardship,” says Peter Hathaway, senior vice president of the Andrews Foundation in Boston, a nonprofit that supports the arts. “In traumatic times, unless your charity works with populations directly impacted by a crisis and you’re seeking aid for emergency relief, fundraising isn’t likely to be very successful or welcome. But that doesn’t mean your work isn’t important, and as the storm subsides there are creative ways to re-engage interest in your mission.”

Keeping relevant

An animal rescue and shelter might not be foremost in people’s minds when considering how to support charities during and immediately after a global health crisis. But the website landing page for New Jersey-based St. Hubert’s Animal Welfare Center contains a prominent link to the organization’s COVID-19 updates, as well as practical tips for pet owners to prepare for continued pet care should they become ill. Among the list of ways to help the organization, they’ve included animal safety advice, applications for animal fostering and adoption, a supplies drive, and direct contributions.

Save the Redwoods League, a 102-year-old nonprofit that works to protect and restore California’s redwood forests, offers visitors to its website the opportunity to send a free e-card to a loved one. The organization emphasizes the importance of human connection during this time of isolation, even though their focus concerns environmental issues. Although their mission isn’t directly related to the economic and social crises created by COVID-19, they’ve managed to stay relevant and show their concern for the emergency at hand while keeping on their donors’ radar.

Where there’s a will, there’s a way

Financial advisers and attorneys note the COVID-19 health crisis has spurred people to think about their plans for the future. California estate attorney George Gordon says his firm has seen an uptick in individuals setting up wills and end-of-life directives.

“As this crisis has progressed, interest in estate planning has steadily increased,” he says. “It may sound morbid, but it’s actually very responsible. People of all ages and income levels have been eager to put their finances in order. That includes philanthropic planning.”

Advisers like Gordon are currently working with clients remotely, but reports indicate that since the onset of the epidemic, business on self-guided online estate planning platforms has risen nearly 150 percent. Husband and father David Matthews of New York says the realities of COVID-19 motivated him to stop procrastinating and create a will.

“I was hearing about perfectly healthy people contracting this potentially deadly virus and realized I needed to be prepared to protect my family,” he says.

He turned to a free online will preparation program to put his estate in order, including bequests to the family’s favorite charities. Having donated to several causes for many years, Matthews wanted to ensure their ongoing support well into the future.

Leaving a legacy

By including legacy giving in a list of donation options, a nonprofit can plant the seeds for estate gifts now and revisit the concept at greater length with donors later.

Hathaway says, “No one wants to have a conversation about their mortality, especially at a time like this, but by subtly including planned giving in a collection of giving vehicles you can address the issue from the sidelines. As long as you approach it as one of several options, it’s easier to talk about legacy giving.”

The benefit of planned giving is that it can be done without touching any money today, so legacy gifts are painless, even for donors who feel uncertain about their income and investments. With thoughts of the future topmost in people’s minds, now is the perfect time to gently remind donors of your charity.

“It’s perfectly acceptable to send out informational pieces explaining ways people can lend support,” says Cara Bradshaw, who leads the development and communications division of Family Promise, a national nonprofit that serves families battling homelessness. “Suggesting people volunteer, help raise awareness, or make in-kind gifts are all worthwhile. And of course, it makes sense to encourage donations of cash, stocks, donor-advised funds, and planned gifts like bequests.”

No time like the present

Kenneth Alexo, vice president for development and alumni relations and president of the foundation at the New Jersey Institute of Technology, believes fundraising, including planned giving, shouldn’t be put on hold in times of uncertainty. He cites how nonprofits responded to past crises, such as September 11 and the economic crash of 2007-2008.

“The nonprofits that came out of the crisis more financially intact were the ones that said their mission was too important to stop fundraising,” Alexo explains. “They simply modified their approach. Maybe they halved their major gift solicitations or exercised more discretion about whom they solicited, but they still stayed in touch with donors. Once the crisis was over, these nonprofits hit the ground running without missing a beat.”

By contrast, he notes, many organizations that thought they were “doing the right thing” by halting fundraising efforts altogether discovered later that this tactic didn’t work and were often less successful when they did resume fundraising.

That said, Alexo acknowledges most nonprofits will come up short against the fundraising goals they set at the beginning of this year. With unemployment soaring, an unstable stock market, and an uncertain future, people will be more thoughtful about their money.

Some economic experts are cautious about how donors will respond to the COVID-19 crisis, in large part because the true impact on the economy has yet to be seen. History has shown that most donors who give prior to a recession continue to donate at approximately the same capacity during and after a downturn, though it may be harder to attract new donors unless a nonprofit is working directly with those affected by the crisis. For COVID-19, that’s the health and human services sector. But economists also caution that high net worth donors whose investments are currently in flux might want to sit things out for the time being until they know where the stock market will land.

Naturally, health and safety are the number one concerns in any emergency, and every charity must decide what approach works best for its mission and donor base. But nonprofits whose operations rely on individual donations should stay attuned to fundraising trends, especially if their organization’s work is tangential to the crisis at hand and not receiving much attention. Once there’s a light at the end of the tunnel and a return to ordinary life post-disaster seems imminent, fundraisers shouldn’t feel uncomfortable connecting with donors to explore ways to support their charity.

Staying Socially Distant – but Emotionally Close – to Donors During a Pandemic

March 22, 2020 By Jennifer S. Aniskovich

In times of crisis, our first thoughts in the nonprofit sector are for the men, women and children we serve – our clients, patients, parishioners and friends. Perhaps our next thought is for the welfare of our employees and volunteers. Third in our list of priorities, but in no way less important, is the well being of our donors.

In a global pandemic, how do nonprofits stay socially distant, but emotionally close, to our supporters?

As we cancel galas, restructure capital campaigns and rush to rewrite traditional appeals, many are struggling to know how to engage key supporters in meaningful ways. Here are a few tips for navigating these rough waters.

Be in Touch – Now

Let your key supporters know that they are among your first thoughts during in this crisis. By top donors, I mean the top 10 or 20, those who are key to your annual fundraising efforts. Let them know they are family. Call them and email them – personally, not en masse – to fill them in on how you are serving your clients, what’s happening with your staff, what your board is thinking. Let them know you’re concerned for their welfare.

Your supporters are, after all, people. They appreciate knowing what’s going on and being part of your early outreach. They are your closest friends – so be a good friend and be in touch right away.

Keep Your Values Center-Stage

It’s absolutely right to put your clients first. Their needs are your organization’s raison d’etre, even more so during a crisis. Tell your donors what you are doing to help your clients. Share how you are adapting, being creative and using technology to help your clients and keep them safe.

Your supporters will be proud of your work, inspired by your commitment, energized by your vision. Remember that list of values your team worked on at the last retreat? This is where you dust them off and put them into visible action.

Invite Your Supporters In

They may not be able to visit your organization (or even leave their house), but your supporters still want to help. Invite them to do something tangible to help you serve your clients. Something that doesn’t involve making a donation.

If your clients need home supplies, set up an Amazon list and invite donors to make a purchase. If one of your clients is having a birthday party or life event, invite your supporters to flood the client with emails of congratulations. If your clients are feeling lonely and shut in, arrange a phone call effort to brighten their day. Donors want to help and, like you, are feeling helpless at home. Invite them to be an active part of your bucket brigade.

Wow them with Your Ingenuity

There is always a silver lining. For nonprofits, the cancellation of life-as-we-know-it brings the opportunity to define the new normal. We’ve always done more with less. Why not lead the way in serving clients in inventive, original ways?

Unable to operate a soup kitchen? How about boxed supplies to go? Can’t open the diaper bank? What about patrolmen delivering in key neighborhoods? Show your donors that you have the spirit and resourcefulness to reach those in need. It’ll make your donors proud and deepen their commitment to your cause. Arm them with stories of your against-all-odds successes to share with others.

Cultivate with Care

It’s an international crisis….proceed with care. And this goes for direct solicitations. Right now – and for the immediate future – your supporters are getting their bearings. Yes, they want to help, but read the room carefully.

If the gala has just been cancelled, and you have a full website of online auction items to share, by all means have a virtual fundraiser. But keep the long view in mind. For many top donors, now is the time to invite them to strategize before investing. Which leads to the last tip . . .

Do Donor Engagement Differently

Here’s where you imaginative development professionals can shine! This is going to be a multi-month event – reinvent your donor outreach to fit the pandemic. Don’t scrap all contact until the curve flattens out. Develop ways that you can meet your donors’ needs – for information, social engagement, positive news – while promoting your nonprofit.

What does that look like? How about “Tuesday Teas” where donors get real-time, conference call updates regarding client outreach? Or Facebook Live tours of your under-construction new facility? Or Survey Monkey polls asking for thoughtful feedback about strategic questions?

Recognize what’s different that may be in your favor: donors have more attention to give; they may welcome a relief from forced family time; they are eager for upbeat news; they can absorb a greater depth of information; they want to help be part of your solution.

Bonus: A Few Practical Tips

Be brief – a 2-hour in-person meeting translates to a 30-minute facetime meeting.
Brand it – whether it’s an activity for a client or a cultivation communication, give it a catchy name and look so it sticks in your donors’ minds.
Be the first – set yourself apart from your peers by being the first to do it that way.
Bring it back to mission – every conversation, every activity, every interaction should bring your donor back to your clients, your mission, the dent you want to make – with their help – on the world.

Fundraising Tips to Re-Engage Lapsed Donors: Punt the Bunt

March 3, 2020 By Melissa Biggar

If you’ve worked in fundraising and development for more than five minutes you’ve probably come across the terms LYBUNT and SYBUNT. To those outside the field these fundraising acronyms may sound like Klingon, but for development officers they’re part of everyday conversation. Pretty self-explanatory – a LYBUNT (Last Year But Unfortunately Not This) donated last calendar/fiscal year but not this year, a SYBUNT (Some Years But Unfortunately Not This) made a gift in some previous year(s) but – wait for it! – not this year. Many fundraisers target these audiences on automatic pilot, but successfully re-engaging lapsed donors should involve a little more thought.

Here’s some advice to get you thinking outside the BUNT box.

Define “Lapsed”

A supporter who donated last year but hasn’t yet given a gift this year (LYBUNT) doesn’t automatically fall into lapsed donor territory or even the at-risk-of-lapsing zone. Until a full year has passed, and even for a short while longer, consider these folks current donors.

Think about it. Last August you made your first gift to an organization. They added you to their mailing list, maybe even invited you to an event or two. (This is assuming they’ve been properly stewarding you since you made your donation. More on that in another article!) Fast forward 13 or 14 months. You still feel passionate about the organization and its mission but for whatever reason haven’t gotten around to making another gift, or you simply haven’t been in a position to do so. You’d be surprised – and probably disappointed – to discover the organization already considers you a has-been.

Some nonprofits set specific parameters, say 13 months without a gift, after which they consider a donor lapsed. That works, but it’s also very limiting. It’s still early enough in the game to think of them as current donors whom you want to steward toward their second gift. No one wants to alienate supporters with language like “What happened?! We want you back!” when they still consider themselves engaged.

For a lapsed donor campaign I’ve been developing, I’m looking at donor giving history for the past five years. In my experience I’ve found that when it comes to lapsed donors, reaching beyond that point offers little to no reward, but every nonprofit’s donor base is different. I’ve identified a target audience that looks like this:

Donor Criteria for 2020 Lapsed Donor Campaign

Last gift between January 1, 2015 and December 31, 2018
Lifetime giving history includes at least two gifts
Lifetime giving totals at least $500

Onions Have Layers

To paraphrase Shrek, fundraising is like an onion – it has layers. “Some” years of giving (SYBUNT) is a pretty broad definition, and the last gift of a SYBUNT donor can range from two years ago to 10 or more. It takes a little work, but roll up your sleeves, pour yourself a strong cup of coffee, and settle in for some serious donor data review.

Once you’ve defined what “lapsed” means to your organization, you can begin reconnecting with these donors through targeted communications that clearly show the impact of their gift, followed by an appeal that expresses how much you value their support and your hope they will renew it, again emphasizing impact.

BUNDle, don’t BUNT

Implementing a unique campaign like this for every donor is impossible – donor lapse is an ever-moving target. Now that you’ve defined “lapsed,” you’ll see you have lapsed donors every month, maybe even every day!

For simplicity’s sake, you can use the calendar year to schedule an all-encompassing lapsed donor campaign, keeping in mind that you’ll want to exclude donors whose latest gift is less than one year old (remember that thing about alienating donors?).

You can reconnect with these folks through targeted communications during the first two quarters of the calendar year. For example, if their last gift was in December 2018 and it’s now March 2020, use the next few months to send a few donor touches that emphasize the importance and impact of their gifts and keep your organization on their radar.

Later in the year, perhaps even in Q4 as part of your year-end appeal, you can follow up with a customized fundraising campaign. As you prepare your campaign, reexamine your donor list in case your initial touches were so successful that you re-engaged donors earlier in the year. You don’t want to ask those people to “come back” yet again!

As always, once your campaign is complete, study the results to gauge its success and identify strengths and weaknesses. Fundraising campaign results can inform future donor communications and appeals, so a little number crunching now can go a long way.

Prevention is the Best Medicine

As all good fundraisers know, at the end of the day it’s about relationships and letting donors know how much you value their support. Retaining current donors and recovering lapsed ones is more cost-effective than acquiring new donors. And re-engaged donors can become your organization’s most ardent supporters, so taking the time to treat them well is in everyone’s best interest. It’s said an ounce of prevention is worth a pound of cure – in terms of fundraising, that means serving your current donors well to improve your donor retention rate and minimize donor attrition. With good planning and thoughtful communication, you can turn “We miss you!” into “Welcome back!”

How to Write a Letter of Thanks for Donations

June 17, 2019 By Giovonni Santiago

Funding can be one of the biggest single challenges of running a nonprofit. Without funding, programming becomes increasingly difficult. So what is the key to funding a nonprofit? Gratitude, of course! Writing an effective and heartfelt letter of thanks for donations lets donors know that you value them. And hopefully, this letter helps keep your nonprofit top of mind for future donations.

I started my own nonprofit to support transgender youth called Meta Center Inc in 2016. I had a big goal of creating an inclusive space for transgender youth to feel safe and supported. My goal was large but my funding definitely on the small scale. I dug as deep as I could into my own pockets. I also relied heavily on the kindness and generosity of family, friends and community members. A letter of thanks for donations helped ensure that my nonprofit started off on the right foot.

Over the years, I’ve worked on perfecting the art of gratitude. Here are my tips on how to write a standout donor-centered letter of thanks for donations:

Be Swift

You should send out your thank you letter within 48 hours. This means that you need to be prepared for a donation that could come at any time. Follow the steps below to ensure that your letter is ready to customize and send quickly.

Make it Personal

Avoid a pre-printed card you keep on hand. Personalization is the key to a memorable letter of thanks. Skip “Dear Donor” or “Hello Friend” and include your donor’s name. They took the time to donate to your nonprofit. You need to take the time to write a real personalized letter. If this is not their first donation, make sure you include: “Thank you for another contribution..” Return donors are so important to your nonprofit’s livelihood. This simple touch acknowledges in a personal way that you appreciate them thinking of you again.

Tell A Story

I start all of letter of thanks for donations the same way: I tell a personal story. This is the best way to grab the reader’s attention. Detail how the nonprofit directly impacted an individual’s life for the better. With permission, share that individual’s name and include a direct quote. Make it clear right from the beginning who directly benefited from their donation. For Meta Center Inc, a story might details an individual who was able to start their medical transition, find a gender-affirming doctor, buy their first binder and live as their true authentic self.

Include Statistics

Numbers, figures and statistics take the personal story and extrapolate that one individual’s experience to demonstrate the full reach of your nonprofit’s work. Did your nonprofit organization increase individuals served this year? Were you able to step up your programming efforts? You added an extra weekly support group? Share that with your donor! As a donor, they are champions of your nonprofit’s success. Brag a little!

What’s Next for Your Nonprofit

Once you’ve let your donor know how their funding has impacted your organization already, let them know what you plan to do next. If you haven’t completed a project, let them know where you stand. No one expects you to have everything together, but an update goes a long way! Stay transparent and tell your donor how their funds will be used.

Don’t Ask for Another Donation

This is a letter of thanks for a donation. This is not the time to ask for another donation. Asking for another donation 48 hours after you received the first one simply comes off as ungrateful. An effective letter of thanks for donations will ensure that when your donor is ready to give again, your organization will be top of mind!

Keep the Door Open

If your donor is local, let them know about your next event or invite them over to the office for a tour. Take them to coffee. Think of your donors as relationships. You nurture relationships, right? Donors are the same! Make sure the letter is written and hand-signed directly by someone on your leadership team.

Feel confident you can nail the letter of thanks for donations yet? Remember to keep it personal, tell a story and show that gratitude!

3 Ways Giving Can Help You Save

May 9, 2019 By David Anderson

When considering the option of giving, emphasis is often placed on the direct gains from tax deductible contributions. There are other, more indirect benefits of giving to charity that are important to observe.

Consider your financial goals and learn to plan wisely.

Donating to a charity can help you learn how to manage your finances more effectively, and actually increase the amount you save. By establishing a set of goals or priorities, philanthropic giving affords valuable skills and develops better financial habits. Understanding yourself and what you believe in will help you plan more wisely for the future. Identify what is most important to you, and assign a realistic number to what you could give over a period of time.

Charter change and make the world a better place.

Every little bit helps. Just a few U.S. dollars can go a long way in other parts of the world.

Studies show that charitable donations in the form of prosocial spending, e.g. money spent on others or the act of charitable giving fosters social connection and compensates the donor in many ways.

More specifically, generous behavior precipitates a more positive outlook, sweetens success, and promotes higher levels of happiness.

Claim Donations & Collect Tax Benefits

Charitable donations are tax deductible when made to qualified nonprofit organizations.

On the list of top 5 tax deductions, the benefits of donating to charity are well documented and should not be overlooked. When you make a cash donation to a registered nonprofit 501(c)(3) organization, the amount of the donation can be listed and deducted from your taxable income. This will reduce your overall tax liability.

Another way to save on your taxes is to donate old items to charity. Less common than cash, donating goods is a way to make use of items you no longer want or need, and receive a sizeable tax deduction. The Salvation Army provides a valuable guide for determining the value of your donated items. Always get a proper, itemized receipt to keep on record for the IRS.

With the balanced approach characterized above, engaging in charitable work in your community, or giving money to a cause is a way to invest in a more profitable future. In return for your investment in a better world, you will gain personal knowledge about yourself, your values, and how to save for a better financial future.

6 Ways for Nonprofits to Get Millennials to Part With Our Money

March 25, 2019 By Tatiana Morand

“I always thought once I secured my first full-time job I would just write a check to that children’s research hospital, but then my student loans kicked in and life just got so busy. And I don’t actually have a checkbook…”

Cassandra, 26, describes some of the barriers us millennials face when it comes to charitable giving.

And even the word ‘millennial’ may evoke an image of a self-absorbed, tech-obsessed youngster (even though the youngest of us are now in our 20s) who can’t afford a house because we buy so much avocado toast.

Yet contrary to this generalization, many of us do really want to help make the world a better place — a statement backed up by recent studies showing millennials are even more cause-motivated than previous generations.

In fact, whether we’re carefully choosing our next pair of jeans based on corporate social responsibility or sharing petitions on our Facebook pages, millennials believe we have a role to play in demanding and promoting good in the world.

However, I will acknowledge while we might be engaged on social media, it can feel difficult to get us to put their money where our mouths are.

That’s because, like Cassandra, many of us are racked with student debt and struggling to navigate record high rent prices… all while making entry level salaries.

(To all baby boomers: it’s really not that we’re lazy, it’s just that we can’t afford to move out of our parents’ basements.)

Plus, given the proliferation of cause campaigns on social media, choosing just one to support can also feel intimidating and exhausting in a way other generations haven’t had to deal with.

However, there’s good news: millennials still want to give, and we still do.

The 2016 Millennial Impact Report found that more than 50% of millennials donate to charitable organizations — and the 2017 report found that 35% of them have increased their donations since the 2017 election.

So, here are 6 ways to get millennials running for their checkbooks…I mean, credit card numbers…I mean, Venmo!

1. Make it Easy

Millennials are much more likely to engage in causes with online platforms. We check our phones an average of 75 times a day for work and leisure… so make it easy to access your campaign from them.

Why do we like donation websites so much? Clicking on a link and typing in our credit card number, or providing a money transfer app like Paypal, Venmo, or Cash, is 10x faster than digging in the junk drawer for our cheque books.

Plus, we’re busy — and we know you are too. In the long run, this kind of efficiency can help both of us!

2. Make it Personal

“It wasn’t until my friend posted a video on his Facebook page for a fundraising challenge and shared his own experience with childhood cancer at the hospital that I finally gave. It really moved me, and I didn’t even think twice about donating,” said Cassandra.

Millennials in particular have grown up with unprecedented access to the stories and realities of people all over the world. Some of the most successful online campaigns are those posted on crowdfunding sites like GoFundMe, Indiegogo or YouCaring.

These platforms allow individuals to share an intimate window into a very specific need or cause on their own terms and in their own voices. The rise of this type of storytelling means that all organizations need to make their campaigns rooted in the lived realities of those they’re supporting, and share those stories in new and interesting ways.

Wondering how this is done? Look through your recipient list or supply closet and demonstrate the reality of a real individual or real situation your nonprofit organization is facing, and tell that story and raise money for that cause. We might not be ready for a recurring gift, but they do tend to respond to a real, meaningful crisis.

3. Make it Shareable

C’mon, we all feel good after giving. Who doesn’t want to tell other people about it?

So, be sure to include an option for your donors to share how they’ve supported your organization on Facebook, Twitter, and Instagram.

And best of all: sharing doesn’t just boost your donor’s social standing, so you might even attract more new donors. It’s a win-win!

4. Give Us Other Options

While millennials do like to donate, that’s not the only way we like to engage with the causes that matter to us.

Recent research shows that 46% of us engage in some sort of volunteering — which can also be an opportunity for cash-poor millennials to feel like we’re still making a difference.

Creating volunteer opportunities for us not only helps you get some important projects completed, but deepens a donor’s sense of connection to your organization and to other donors — or helps us see exactly how our dollars would be used were we to donate, and makes us more likely to contribute.

5. Make Accountability a Priority

The days of sending off a check and forgetting about it until the annual holiday postcard from your favorite charity are over.

Just like millennials have come to expect efficiency, we’ve also come to expect accountability. With various websites like Charity Watch, where you can check the ratings and ethical history of thousands of charitable organizations, transparency matters. We’re sick of hearing about scandals — we just want to help you make a difference.

So, to keep us engaged, make sure you explicitly tell millennial donors where our money is going, and share tangible results at several points during the year. We’re not expecting miracles, but we do want to know if our funds are helping you do good.

6. Make It Clear Where You Stand

According to the the 2017 Millennial Impact report, 51% of American millennials believed the country was off track at the end of the year. So, we want to know: what is your organization doing to change that?

We’re more interested in political issues than ever before, and are more likely to put our money where our views are. So, hearing where your organization falls on the political spectrum and knowing that you’re engaging in advocacy for issues we care about makes us more likely to support you.

Despite all the negative generalizations you may have heard about selfish millennials, I can assure you they’re not true — or at least, not any more true than they are for any other generation.

So, although we might face barriers to donating past generations haven’t seen, that doesn’t mean we’re unwilling to do it.

If you can make it easy for us, give us options, and stay transparent with us, you’re sure to rack up millennial donations in no time!

Top Ten Things to Do When Beginning a Volunteer Fundraising Program

January 1, 2019 By Andy Reeher

Many nonprofits from colleges to boards and associations have dedicated groups of volunteers who help them meet their fundraising goals. What better way to increase engagement and reduce fundraising costs than to have volunteers solicit their peers with a personal appeal? Alumni groups, past president groups and foundation boards are all incorporating volunteer fundraising into their annual and campaign giving strategies. If you’re considering starting a volunteer fundraising program for your organization, here are ten things to do to get you started.

Start Small. Establishing a culture of volunteer fundraising in your group can take time. The key is to start small and grow your program over time. As you recruit additional volunteers, they can help you find and recruit even more volunteers. Consider starting with a single class of alumni or segment of your foundation. From there you can expand your program to include all alumni or segments of your group.

Decide How to Segment. Whether you want your volunteers to contact giving prospects from the same alumni area, current geographic region, profession or affinity, choose a method of segmentation and stick with it. It’s good to choose a method of segmentation where your volunteers are likely to have a lot in common with the people they are reaching out to.

Recruit Volunteers. Many times those that already contribute to your organization are prime to extend their support as volunteers. Take a look at those with a strong affinity to your mission. Many successful programs are able to retain their volunteers year after year, so your recruiting should be less time-intensive once you build up your initial team of volunteers.

Appoint Lead Volunteers. Enabling the success of your volunteers can be a challenge. You provide them with resources and training, but some volunteers still need on-on-one coaching to be successful. This is why lead volunteers are so important. They are able to provide more personal support directly to your volunteers, allowing you to focus on more strategic parts of the overall fundraising program. If you already have a program started, consider asking your highest performing volunteers to step into the role of lead volunteer.

Assign Prospects. One of the most effective ways for assigning prospects to volunteers is to let them pick based on who they know best. You can create the list of who’s available to contact, exclude anyone with any special restrictions, and allow your volunteers to pick whom they’d like to contact. We typically see volunteers contacting between 10-25 prospects, but you can also leave it open for your volunteers to contact more prospects if they’re willing.

Create Resources. It works well to have a welcome packet or volunteer guide to provide new volunteers. This is a good way to reinforce expectations and guidelines for your volunteers as well as let them know about current initiatives that may be of interest to potential donors. A typical outline for these documents include:
1. The role of a volunteer
2. Goals and expectations
3. Impact of volunteer fundraising for your organization
4. Tips and scripts for contacting prospects
5. Who to contact for additional help (include Lead Volunteers and Staff)
6. What’s happening in your organization – latest initiatives and milestones

Train Your Volunteers. It’s best to offer a variety of training options so that your volunteers can choose the one that best fits their learning style. In addition to the resources you have already created, you can offer in-person training or a campaign kick-off event, live online training, as well as recorded training for your volunteers.

Focus Your Volunteer Efforts. Since your volunteers are busy people, focus their efforts around 2-3 key times or initiatives per year. Pick a 1-2 week period and ask them to contact 10 or more prospects during that period. Time this around a key event – maybe they get early access to register for your annual convention by taking part, or it’s a lead-in to homecoming or a special giving day.

Analyze Results. One advantage of focusing your volunteer efforts over a few short 1-2 week periods throughout the year is it allows you time to analyze your results and make adjustments. Technology resources are available that can give you powerful analytics that allow you to easily identify your top performing volunteers, as well as those who are struggling.

Recognize Your Volunteers. Your volunteers make a significant contribution with all of the time and effort they invest, so it’s important that they are recognized for their efforts. List their names in your annual donor report or ask them to stand up at an annual meeting or fundraising banquet. Another great way to recognize their contributions is to offer them special perks, maybe exclusive access to a popular event or important stakeholder. Recognizing your volunteers is a great way to promote a culture of enthusiastic volunteers who stay with your organization year after year.

Volunteer fundraisers can be your key to success, but logistically can be challenging to manage. That’s why Reeher designed the first online and mobile tool to help organizations manage volunteers in your fundraising program. With Class Agent Fundraising, you can easily assign and manage volunteers, track their progress on tasks, provide the information they need to make the “asks” of their peers, and allow them to report progress and remain engaged with their team. You can view up-to-date campaign results at your fingertips – gone are the days of emailing spreadsheets and waiting for monthly reports to track your program’s progress. Visit Reeher’s website to try Class Agent Fundraising free for 14 days.

Want to Increase Repeat Donors? Just Follow the Rules

August 28, 2018 By Gary Smith

It takes a lot of effort to bring in new donors. That’s why hanging on to the donors you have—and getting them to donate again and again—is key for any nonprofit.

So how you do you increase your pool of repeat donors? Here are a few rules to get you there.

Rule 1: Remember, you’re only as good as your last interaction.

The interaction a donor will remember most is the last one they had with your organization, so offer the best service possible at all times to all of your donors. Make sure you keep the donation process easy and streamlined. Acknowledge donations in a timely fashion and don’t keep donors waiting for promised tax documentation.

Rule 2: Let donors “get their feet wet.”

Small donations can lead to larger ones down the line. Are you looking for products or supplies? Offer a “trial donation” where the donor only commits to a small amount. If that goes well, you can contact them to see if they would like to make a larger donation.

Rule 3: Spread good will.

Give donors the chance to piggyback on your public relations efforts. Sure, you may publicize their name in your lists of donors, but consider going one step further. Ask if they would like to talk about their donations in your press releases or promotional materials.

Rule 4: Ask for feedback and follow through.

It’s a good idea to send out surveys to your clients to ask about how the donation process went for them. Keep it short to increase your chance of receiving a response, and consider 10 percent a good return rate. Make sure you designate someone to go through the surveys and notify staff of any problems they need to address.

Rule 5: Honor your donors’ preferred form of communication.

To develop positive relationships with donors, nothing beats in-person meetings with telephone conversations the next best. But taking those steps can backfire if a donor prefers you contact them only by email. Find out how your donors prefer you contact them, and then honor that request. If you’re receiving product donations, set up a schedule for how frequently you should contact a business. Some companies may want to donate on a quarterly basis, others every six months. It’s best to set those parameters up front.

Rule 6: Remember to ask the next question.

If you call and a company says they have nothing to donate at that time, ask if you can call back in six months. A lot of companies have “gatekeepers,” so if you call in six months and tell the person answering the phone, “Joe asked me to call him back,” your call is more likely to go through. And if you’re lucky enough to schedule an in-person meeting with a potential donor, remember the next question you should ask is whether anyone else would like to join you for the meeting. The more people you know within a company, the stronger relationship you’ll be able to build and the better chance you’ll have that that relationship will continue if your main contact leaves the company.

Rule 7: Add value to those donations.

Give your donors value beyond the tax benefits they receive. Offer specifics on where their donations went and how your organization used them. Give them as much personal connection as you can to the good their donation is doing. Taking the time to do that is the best way to turn that one-time donor into a long-term giver.

DIY Fundraising 101: Everything You’ve Ever Wanted to Know About DIY Fundraising

June 18, 2018 By Gary Wohlfeill

Do-it-yourself (DIY) fundraising is one of the most exciting growth opportunities for nonprofits and is definitely one of the fastest growing types of peer-to-peer fundraising out there.

That’s why we thought it was time we gave DIY fundraising a good deep dive so that we can help nonprofits understand how it works and why it’s such a great tool to implement for those looking to grow and expand their peer-to-peer fundraising.

Here we go…

What really is DIY fundraising?

DIY fundraising is a new fundraising channel that empowers your community of supporters to raise money on your nonprofit’s behalf by starting a fundraiser of their own at any time —without cannibalizing any of your other campaign efforts.

The DIY part refers to the notion that your supporters have the flexibility to create an event or fundraiser that’s personal to them, not attached to a larger nonprofit campaign or event. Your supporters can get creative, have fun, and support you during a time that works best for them, and in any way that they want.

How is this different than peer-to-peer fundraising?

The peer-to-peer fundraising you might be most familiar with is usually organized around an event. Supporters are encouraged to start a fundraiser for an organized event (marathon, seasonal or themed campaign, bowl-a-thon, giving day, etc.) with all of the money raised by each individual rolling up to a grand total for your event.

This differs from DIY fundraising in that, with DIY (a subset of peer-to-peer) you are empowering your supporters to create a fundraiser whenever they want, based on whatever style of event they want to do. Maybe they want to do a birthday fundraiser, a memorial fundraiser, or get creative in the name of your cause. By creating a DIY fundraiser, they’re not attaching their campaign to an event you’re running at a specific time. Instead, they’re just starting a fundraiser whenever they want.

Both utilize passionate supporters to reach out to their network of friends and family in order to increase donations and awareness, but the main difference is in who organizes the event — the event is organized by your nonprofit vs. organized by the supporter themselves. (This also means that there isn’t the associated maintenance for your nonprofit that typically comes with running a structured campaign.)

Does DIY work in the real world?

I answer that question with a resounding yes (and if we embraced exclamation points we’d even add one here). Time and time again, we’ve talked to partners who’ve had incredible success when they’ve incorporated DIY fundraising into their overall strategy.

The Leukemia & Lymphoma Society is one example of how embracing DIY fundraising can make such an impact. With their Lifestyle program, LLS offers up encouragement and ideas on how you can create your own DIY fundraiser. The director of the program, Colby Marple, nailed it on the head when he told us recently, “People want to make a difference. Instead of keeping [ideas] regional, what we wanted to do is create a national platform that allows all these great stories, all these great ideas to come together in a single place. And that’s what CrowdRise enabled us to do with our Lifestyle program. It’s really about making it possible for anyone to start a movement to help us cure cancer. It’s about saying yes and just empowering people to get after it and make a difference.”

“It’s really about making it possible for anyone to start a movement to help us cure cancer.”

– Colby Marple, The Leukemia & Lymphoma Society

And that’s what it’s all about. Empowerment, encouragement, and in a way, letting go of control. As an organization, you have to allow your supporters to show their passion for your nonprofit in their own way. Your supporters are hungry for an opportunity to show they care, but they may not have an outlet that allows them to do so in the way they want. This is why DIY fundraising really can be important for your cause.

This all sounds great, but is it a ton of work?

The great thing about DIY fundraising is that it works well without a lot of hands-on activity from you, the nonprofit. Now, that’s not to say that it’s a ‘build-it-and-they-will-come’ type of idea. But rather, if you take the time to put the structure in place, provide encouragement along the way, and make your fundraisers feel like heroes during and after their campaign, you’ve got the makings of an evergreen fundraising push that will see repeat performance throughout the years to come.

As LLS thinks about it, “the theme across the board is any activity, any passion, any hobby, anything that brings people together can be a tremendous movement and a successful movement to help us cure cancer.” And, isn’t that what every nonprofit is ultimately trying to get to? Empowering movements that create real impact in order to create the change needed to get you to your goal?

Curing a disease, building shelters, rescuing animals… no matter what cause space you are in, passion runs deep in your supporters. And when you give them a platform to take that passion and run with it, amazing things start to happen.

How to get started

Show your supporters the possibility of DIY. Include inspirational stories or examples of fundraisers who gave up their birthday, ran their own race, or shaved their beard for your cause. Put together some best practices for your DIY fundraisers and set up a schedule of encouraging posts, emails, and reach-out opportunities for your organization in order to keep supporters motivated and excited. Also be sure to thank them at the end of their fundraiser so they feel appreciated and hungry to do even more. It’s also important to make sure you’re set up on a fundraising platform that allows for simple DIY fundraiser creation, as well as gives supporters access to your best practices and examples so that they feel encouraged and motivated to stick around and set up their campaign page.

With DIY fundraising growing at a rapid pace, with the right fundraising platform, and some up front strategizing, embracing and encouraging DIY can make a huge impact on your cause.