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Fundraising Tips and Resources

Using Donor Data to Improve Future Fundraising Campaigns: 4 Tips

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Fundraising Donor Data

An abundance of moving parts comes into play each time you plan fundraising campaigns for your nonprofit. You must figure out your goals, determine which tools and solutions you’ll leverage, reach out to the right people, and push your campaign across the finish line. All in all, these campaigns can be tricky to plan and execute successfully.

If you don’t know where to start when planning your next fundraising campaign, you already have access to a valuable resource that can reveal a lot about how you should carry out future initiatives: your donor data.

The data you’ve collected on donors over the years runs the gamut, from their communication preferences to their giving frequency and history of involvement. Don’t just stuff this information in a dusty attic, never to be seen again! Take what you’ve learned and apply it to future campaigns to avoid repeating the same mistakes.

Here are several effective ways to use donor data to improve your fundraising campaigns:

  1. Collect donor data using your online giving page.
  2. Use your nonprofit CRM to centralize and sort donor data.
  3. Practice audience segmentation.
  4. Reach out to prospective major donors.

To make the most of your donor data, your organization needs access to a variety of tools — a constituent relationship management (CRM) system, marketing platform, and online fundraising platform are just a few. As we walk through each tip, we’ll dive more into how these tools can support a data-driven fundraising strategy.

1. Collect donor data using your online giving page.

Proper data collection is the first step in harnessing the power of your data to improve your campaigns. One of your organization’s most important tools to capture supporter information is your digital fundraising platform.

If your organization doesn’t already have an online fundraising platform, Donately recommends finding a solution that allows you to gather donor data using your digital donation forms. Robust fundraising platforms allow you to funnel data from your giving form to a centralized dashboard where you can view donor insights about your entire supporter base.

This feature grants you access to readily available donor information such as:

  • Who your most active donors are
  • What the most popular donation amount is
  • The effectiveness of a specific fundraising or marketing campaign
  • The most popular times of the day or days of the week for donating

Then, you can use this information to plan your fundraising efforts. For example, let’s say your most popular giving amount is $20. For your next fundraising campaign, offer suggested giving amounts of $20, $50, and $100 to give supporters a benchmark for how much they should give.

Or, perhaps you discover your most popular days for donations are Thursdays. For your next campaign, you should publish your most important or informative social media posts on Thursdays.

Once people land on your giving page, inspire them to follow through and share their information by ensuring your donation page offers a secure giving process with the help of a powerful donation processing tool. Be sure to look for an online donation tool that’s built with nonprofits in mind and can accept a variety of payment methods to make the giving process as convenient as possible.

With a comprehensive online fundraising platform, you’ll not only be able to efficiently gather donor data, but you’ll also be able to offer supporters a secure, professional donation process.

2. Use your nonprofit CRM to centralize and sort donor data.

Your nonprofit’s CRM is another essential tool for centralizing and reviewing donor data. This system allows you to record interactions with supporters, plan outreach campaigns, and review your fundraising progress through detailed reports.

As Bloomerang’s nonprofit CRM overview states, your CRM will record data such as:

  • Basic donor information like contact information, addresses, and names.
  • Information on donors’ past involvement with your organization, including donation history, volunteer experience, and event attendance.

You can gather this information using website forms such as your digital donation page, volunteer registration page, or email newsletter sign-up form.

As you accumulate these data points, you’ll need a way to keep them organized in your CRM system. Using proper data hygiene practices upfront ensures that when it comes time to plan future campaigns, your donor data is updated and readily available. These practices include:

  • Regularly auditing your database to determine inconsistencies, such as misspelled names or outdated addresses.
  • Eliminating errors, like duplicate entries.
  • Standardizing data entry procedures, such as determining guidelines for abbreviations and street addresses.

With these data management procedures in place, your team will be able to confidently craft a fundraising plan for future campaigns because they will know that your data is clean and accurate. You’ll also be able to see a greater return on your investment because you’ll only reach out to active and accurate email addresses, phone numbers, and home addresses.

3. Practice audience segmentation.

Your donor data reveals valuable insights about your donors’ interests, values, and preferences. Through website forms, surveys, and personal interactions, your organization gathers information on its donors all the time. When you store these details in your CRM, you can then use this information to group donors based on shared characteristics in a process called donor segmentation.

As you evaluate your organization’s donor data, look for patterns and trends. For instance, you might create audience segments based on donors’:

  • Demographics: Creating groups based on demographic characteristics such as age or geographic location allows you to speak to each group in ways that are relevant to them. For instance, you might send an email or direct mail appeal to your older audience members, while younger supporters may likely be more receptive to social media outreach.
  • Engagement type: Many of your donors aren’t just monetary supporters. They’re also volunteers, peer-to-peer fundraisers, board members, and advocates for your cause. By dividing supporters based on engagement type, you can send each group appeals that they’re more likely to engage with. For example, you can send volunteer opportunities to your volunteer group and lobbying opportunities to your advocates.
  • Engagement frequency: Not all donors give regularly, or even more than once. Your organization likely has donors that run the frequency gamut, including monthly, yearly, occasional, and one-time donors. By segmenting supporters based on engagement frequency, you can send more personalized messages to each group.
  • Matching gift eligibility: When you store information about audience members’ business affiliations, you can also gain access to crucial information about their eligibility for matching gifts. In corporate matching gift programs, businesses match donations that their employees make to nonprofits and other charitable organizations. You can use a matching gift database to determine your match-eligible audience members, create a segment of these individuals, and reach out to them with information on the impact of matching gifts.  

Consider your goals for your next marketing or fundraising campaign. How can you create supporter segments that best align with your campaign goals?

For example, perhaps you’re hosting a local fundraising event and planning to send out invitations to audience members. You can create a segment of local donors and send out the invites and driving directions to your event. Then, you can create a segment of donors who live further away and send them the link to your event’s livestream.

With these segmentation techniques, you can craft more personalized, relevant communications for donors. Your supporters will appreciate your efforts to appeal to their interests and take their preferences into account. This can lead to greater engagement with your marketing and fundraising efforts.

4. Reach out to prospective major donors.

Data can also reveal information about individuals who don’t already have an established relationship with your organization. You can use data to get in touch with prospective major donors who have the capacity and willingness to contribute a larger gift to your cause. This process, called prospect research, can give your nonprofit’s fundraising efforts an extra boost with the help of high-impact donations.

To conduct prospect research, your organization can use its internal supporter database along with external sources such as government financial records, nonprofit databases, and social media. As you browse through these sources, look for individuals who exhibit a combination of wealth and affinity indicators:

  • Wealth indicators include factors such as stock ownership, real estate ownership, and business affiliations. These characteristics all reveal information about an individual’s wealth, which lets you know if they can contribute a larger gift.
  • Affinity indicators are factors that demonstrate that an audience member has a personal connection to your cause and a strong willingness to give. These indicators include having a strong existing relationship with your cause or a history of supporting similar organizations.

Once you’ve identified prospective major donors through the prospect research process, you can start developing relationships with them using deliberate, consistent outreach efforts. Introduce them to your organization and mission, invite them to participate in volunteer events or your annual fundraising auction, and show them how their support can make a major difference for your cause.

Having the support of major donors gives your organization a leg up when it comes time to launch a major fundraising campaign like a capital campaign. Using your data to identify major donor prospects allows you to build these relationships in a natural, genuine way.

As you can see, the supporter data you collect over the years can magnify your future fundraising campaigns. You can assess your most and least effective strategies and move forward with what you know works best for your organization.

Remember, you’ll need a variety of software tools, such as an online fundraising platform, CRM, and matching gift database, to make the most of your donor data research. Be sure to assess your current tools and strategies to determine if you’re using them effectively, and conduct thorough research before investing in any new solutions.

5 Online Donation Form Mistakes Your Nonprofit Should Avoid

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Online Donation Form Tips

Though the COVID-19 pandemic has resulted in many challenges for fundraisers, it has also created opportunities for nonprofits like yours to assess virtual fundraising efforts and learn how to use important online tools more effectively. One of those tools is your donation form, which is a critical component of your fundraising.

Unfortunately, many times nonprofits aren’t aware of the mistakes they’re making when it comes to donation forms. Some organizations think that simply creating a generic form and throwing it on a website is enough to ensure that fundraising dollars will come streaming in. Really, though, this just means they’re fumbling an opportunity to, as this article on donation forms by iATS Payments puts it, “receive the generous gift and…[collect] vital supporter information.”

In reality, raising money for your cause isn’t that easy, and it’s even harder if you’re making mistakes with your donation form without knowing it. In this post, we’ll walk you through five common mistakes nonprofits often make with donation forms so you’re no longer in the dark: 

  1. Not making your form easy to find. 
  2. Using an insecure payment processor. 
  3. Asking unnecessary questions. 
  4. Not making your form accessible. 
  5. Not providing multiple ways for donors to engage. 

Along with these things to avoid, we’ll also give you some tips on how you should build your donation form. 

As you work to ensure your donation form is the best it can be, remember to put yourself in your donors’ shoes and think through what they need from your form so their giving experience goes smoothly. By simplifying the process for donors, you’ll be signalling to them that when they have money to give, your organization is the one to give to. 

Let’s jump in! 

Mistake #1: Not making your form easy to find. 

Some experts say you only have 7 seconds to grab your website visitors’ attention. That means you definitely can’t afford to bury your donation form deep in your website and then cross your fingers and hope donors will find it. Instead, try implementing these four best practices for making sure your supporters can find your form quickly and easily: 

  • Embed your donation form onto your site on a specific donation page. Sometimes a donation form hosted through a third-party site can look suspicious and untrustworthy to a donor, even if it isn’t. Avoid this problem by embedding your donation form right onto your site. This way, the experience of donating will feel more connected to your nonprofit as a whole, as the branding of the donation page and donation form will look familiar. Plus, you’ll keep your donors on your website longer, setting them up for further online engagement with your organization. 
  • Create an eye-catching button on your main menu that can direct your site visitors to your donation page. Placing a button in your menu will prevent your donors from having to dig through multiple pages on your site just looking for the donation page. Your button should stand out from the rest of the options on your menu so that it catches your donors’ attention. 
  • Use calls-to-action throughout your website that link to your donation page. A call-to-action is simply a statement that encourages someone to complete a task. You can include calls-to-action on your website in the form of buttons or brightly colored text links that can take your supporters to your donation page. Make sure these calls-to-action are well worded. For example, “Join the fight to save our oceans!” is a much better call-to-action than “Donate now.” 
  • Link directly to your donation page on your marketing materials when you can. Decrease the chances that donors will get lost along the way to your donation form. If, for example, you encourage donors to give in an email newsletter or social media post, link directly to your donation page so your donors don’t have to search your website for it. 

The main takeaway here is that locating your donation form should be easy for a prospective donor. Don’t make them work to find it, or you might lose them along the way, which means you’re not only missing out on a donation but an opportunity to cultivate a lasting relationship with a supporter. 

Mistake #2: Using an insecure payment processor. 

When a donor gives to your organization, they’re entrusting you with a lot of sensitive information, including their name, address, credit card or bank account routing number, and other information. If you haven’t invested in a secure payment processor, you’re putting your donors’ personal data at risk and staking your organization’s reputation on the off-chance that you won’t experience a major data breach. 

Don’t be careless with your donors’ data. Instead, invest in a nonprofit payment processing tool that is dedicated and secure. Here are some things to look for when considering which payment processor is right for your organization: 

  • Integration with your donation page and form: Keep the donation process simple by integrating your payment processor with your donation form and putting all data in one place.
  • Payment Card Industry (PCI) compliance: The PCI standards are a set of guidelines created to protect credit card users when they pay online. Choose a processor that follows these guidelines. 
  • Acceptance of all major types of payments: Ensure that as many people as possible can use your donation form by accepting credit cards, debit cards, and ACH payments. 
  • Protective measures for your payments: The best payment processors will allow you to customize your security features and give you access to fraud alerts, encryption and tokenization. 
  • Payment verification: Your processor should also offer a card verification code requirement capability (CVV2) and an address verification system (AVS) so you can investigate abnormally small or large donation amounts.

It might be tempting to view data security as trivial or unnecessary, but in reality, the security of your payment processor can greatly affect your relationship with your donors and your fundraising success, so it’s something to take seriously. Choosing a secure payment processor will help to set your website up as an effective fundraising tool and give you peace of mind as you collect donors’ payment information. 

Mistake #3: Asking unnecessary questions.

Even with a secure payment processor, your donors will be wary of your donation form if it asks for too much information. For example, some donation forms ask for unnecessary information like middle name or country of residence , either by default or because of poor planning. And while form fields like these may seem harmless, they might also be working against you. 

Asking unnecessary questions in your donation form can negatively affect your supporters’ donating experience in two ways: 

  1. Donors may see your donation form as untrustworthy and think it’s taking too much of their information and decide not to donate.
  2. If there are too many questions to answer or fields to fill out, donors may think the form will take too long to fill out and abandon their transaction altogether. 

To avoid these two problems, work with your team to identify what exactly you need to know about your donors. After all, you do need some information so you can contact your donors, set goals specific to them, and create effective marketing materials catered to certain demographics. But other information is just flat out unimportant to your operations. 

Aim to request only necessary bits of information, like names, addresses, contact information, payment information, and maybe helpful information that won’t seem too invasive to a donor, like preferred method of contact or how they heard about your nonprofit. Other non-essential questions can be marked “not required,” but still, you should limit those non-essential questions to just a few. And in most situations, remember that if you’re in doubt, you should probably leave it out.

Mistake #4: Not making your form accessible.

Another common mistake nonprofits make when designing donation forms is not considering all donors’ needs. This includes thinking of people of all abilities or people who use mobile devices. When your donation form isn’t designed with all your potential donors in mind, you risk not being able to connect with all the people who care about your cause. 

Here are two tips so that you can reach all of your donors and meet their needs: 

  • Ensure your donation page is in compliance with the Web Content Accessibility Guidelines. These guidelines include using a high contrast ratio, easy-to-read fonts, closed captioning and transcripts on multimedia elements, and alt-text on images for individuals who may be navigating your website with a screen reader. 
  • Optimize your donation page for mobile devices. Optimizing for mobile ensures that if your donors are looking at your donation page on a phone or tablet, the formatting, images, and text will all be readable. 

Being mindful of every potential donor will help your organization create lasting relationships with everyone who supports your mission. Plus, when you make your donation page and form accessible to all, you’ll get a reputation boost for being inclusive and thoughtful of your entire supporter base. 

Mistake #5: Not providing multiple ways for donors to engage. 

Collecting a one-time donation from a supporter is certainly helpful for your nonprofit, but finding ways to increase their engagement for the long-term will benefit your nonprofit even more. 

One way you can encourage supporters to engage with your organization on multiple levels is to use your donation form to offer different opportunities for engagement. These might include: 

  • Adding a matching gift database so donors can see if their employer participates in donation matching. According to 360MatchPro’s guide to matching gift databases, an estimated $4-$7 billion of matching gift funds goes unclaimed each year. This is mostly due to the fact that donors are unaware of their employers’ participation. An embedded searchable database can help solve that problem and give donors the chance to boost their donation right as they’re filling out your form.
  • Offer a recurring monthly donation option. Many donors would give on a consistent monthly basis if only their chosen organization made it easy for them. You can offer the option for donors within your form to turn their donation into a monthly gift, making it so they are billed monthly without having to put their payment information into your form each time they want to give. 
  • Giving suggested donation amounts. Suggested donation amounts prompt your donors to give more. For example, when a donor navigates to your donation form intending to give $5 and then sees suggested amounts of $10, $20, or $50, they’ll be more likely to increase their donation. Plus, suggested giving amounts are easy to select and provide an element of social proof, meaning they signal to your donor what is a typical or normal amount to give. 
  • Include an opportunity for donors to opt-in to email communication from your organization. Donors who care often want to be involved in other opportunities, like your planned giving or volunteer programs. Give them the chance to learn more about these opportunities by letting them opt-in to email communication from your nonprofit. 

Giving your donors more information about how they can engage with your organization will help you to find the “super” supporters in your donor base who can really help push your cause forward. Create your donation page with these opportunities in mind so you can identify those individuals who want to cultivate a relationship with your organization. 

Many nonprofit organizations neglect their donation pages only to see a slump in donations. By avoiding these five mistakes and working hard to optimize your donation form, you can become an organization that consistently retains donors and fosters lasting relationships with supporters. Get started today by working with your team to create a donation form that donors actually want to use. Good luck!

Funders Demand More Information About Outcomes. Time Management & Expense Reporting Answer the Call

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Nonprofit Funding

Nonprofits are under immense pressure as the prolonged pandemic significantly increased demand for their goods, services, and programs, while an uncertain economic environment has curtailed financial contributions in a major way.

This year, nearly 75 percent of nonprofits report declining contributions, and half of these organizations expect year-over-year donations to diminish by at least 20 percent. By the time the pandemic eventually subsides, The Washington Post estimates that one-third of nonprofits may permanently close, leaving vulnerable constituents without help and support when they need it most.

To meet the moment, nonprofits need to maximize their ability to retain existing funding and procure new opportunities, requiring a renewed emphasis on donor concerns. For leaders looking to develop more resilient, donor-friendly organizations, here are three questions potential funders are asking.

#1 Does the Nonprofit Organization Do Good Work?

Successful nonprofits have identified a problem, need, or challenge that their resources or expertise can address. Fundraising efforts tend to start there, engaging potential donors with messaging and advertising that conveys the problem and solicits their financial support.

However, donor trends indicate that potential funders require clear, comprehensive insights into organizational outcomes, not just mission, before committing to a financial contribution. For example, according to one report, 75 percent of potential donors are actively seeking information about a nonprofit’s impact. Meanwhile, an assessment conducted by Charity Navigator, a nonprofit assessment organization, and published by the Federal Trade Commission, found that only 2.5 percent of charities rated by the organization made outcomes-based results easily accessible on their websites.

Instead, nonprofits misconstrue activity, aspiration, and marketing with impact, creating a chasm between fundraising initiatives and donor demands. This presents a readily available opportunity for nonprofits to differentiate themselves, capturing and conveying outcomes for potential donors ready to support organizations that are doing good work and making a difference.

For example, the Nonprofit Leadership Center encourages nonprofits to identify and measure performance metrics that provide potential donors with clear insights into organizational outcomes, including:

  • How is your nonprofit changing lives?
  • How is your work creating positive change in the community?
  • What are the milestones that measure success?

Simply put, donors want to know that an organization is doing good work before committing financial resources to a nonprofit. Providing insights into outcomes will help answer that question.

#2 Is the Nonprofit Fiscally Responsible?

Many donors are using overhead expenses as a quantifier for impact and value in lieu of outcomes-related information. With so many potential charities and nonprofits to support, donors want to know that an organization will steward their financial resources responsibly.

Specifically, nearly 70 percent of potential donors seek information on fundraising and overhead expenses. In response, nonprofits should embrace unparalleled transparency, earning the supporters’ trust and confidence and relying on their continued financial support.

In this way, exceptional governance in the form of time and expense reporting can be a gateway to demonstrating fiscal responsibility, earning donors’ trust, and maintaining operational continuity. For instance, enhancing time and expense practices allows nonprofits to account for:

  • resource allocation. Let donors know how much financial and personnel resources are devoted to specific outcomes.
  • overhead projections. Demonstrate fiscal responsibility by transparently and comprehensively reporting overhead projections.
  • grant readiness. Many nonprofits don’t subsist on individual donations alone. Time and expense best practices position organizations to capitalize on other opportunities, like grants, that can support mission and outcomes.

High-performing, sustainable organizations are predicated on fiscal responsibility, which donors undoubtedly understand and assess when supporting nonprofits.

#3 Who is This Nonprofit Organization Helping?

To be sure, donor decisions aren’t purely data-driven. While anecdotes and individual testimonials can’t convey an organization’s big-picture impact, they are meaningful communication methodologies, allowing donors to connect with the cause in specific and interpersonal experience.

Nonprofits can enhance fundraising by connecting donor support with individual impact, combining outcomes and impact into a singular narrative. These efforts include:

  • Storytelling. Stories help donors understand the value of their investment, creating intimate connections between financial support and individual impact.
  • Data. Capturing and conveying the number of people served, outcomes reached, and lives changed can help donors appreciate the reach of their financial support.
  • Sustainability. Donors want to support sustainable causes, not bloated organizations. Combining incredible individual impact with a sustainable or scalable business model conveys value at every level.

Ultimately, nonprofits exist to help people, and potential donors want to know that their contributions are achieving this critical outcome.

Conclusion

As nonprofits are strained by surging demand and diminishing financial resources, some will reduce capacity, scale back initiatives, or close altogether. However, some will use this challenging moment as an opportunity to strengthen donor relations by refocusing their on-the-ground efforts and funder-facing efforts to respond to the latest trends.

By conveying their great work, fiscal responsibility, and individual impact, nonprofits can enhance their fundraising efforts, procuring the resources needed to serve their constituents at this critical time. 

2021 Fundraising Tips to Jumpstart the New Year

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2021 Fundraising Tips

The nonprofit fundraising landscape has changed, and nonprofits are now thinking outside of traditional signature, in-person-only events to stay relevant and widen their audience reach. Those that leveraged technology at the beginning of the pandemic quickly transitioned fundraising efforts online to connect with supporters, drive deeper engagement and maximize donations, while those that didn’t pivot online continue to struggle to move their missions forward.  

Technology investments and adoption of new and innovative trends in 2020 are enabling nonprofits to build greater resiliency in the new year. For those not-so-tech-savvy fundraisers, below are a few easy ways digital technology can be used to jumpstart fundraising efforts. 

Tap into Donor Data to Personalize Engagement

You don’t have to be tech-savvy to understand trends in donor giving. Start with your most loyal supporters and look into how much they gave over the last year, when and how. Tap into this insight to segment and target outreach based on donor engagement and giving habits. Personalized messaging makes donors feel recognized and appreciated, ensuring repeat and recurring giving.

To drive greater donor engagement in 2021, try creating more robust registration pages and post-giving surveys to capture additional donor data. Maybe the donor or someone they love is personally impacted by the cause, or perhaps the donor simply wants to help others. Understanding motivations to give will enable you to develop hyper-personalized messaging that resonates with each audience and creates life-long supporters.

Reduce Costs and Raise More with Donor Covers the Fee Opt-In

Most donors want 100% of their donation to go straight to the cause and data suggests that they would opt-in to cover any fees, such as credit card processing as an extra gift, if the option was available. Simply use your fundraising platform to give donors the option to cover the transaction fees and watch your fundraising dollars grow while inspiring and satisfying your donor base!

Enable Different Types of Giving Options, Including Hybrid Event Options

Technology enables a slew of fundraising options, so make 2021 the year your organization diversifies its efforts. In addition to enabling direct donations, recurring or monthly giving options, try adding a virtual event – such as an online auction, gala or peer-to-peer event – to your next campaign. Providing multiple giving options and hybrid event options enables donors to give the way they prefer as well as the opportunity to participate in multiple events, maximizing donations.

Industry surveys and data indicates that astute fundraisers will incorporate virtual elements to all in-person fundraising efforts in the future, leading to a rise in hybrid fundraising. One of the biggest benefits of hybrid events is that anyone can attend from anywhere. Expand your network of givers by reaching out to all donors, not just past event attendees. Expanding your addressable audience increases your overall network of supporters today and tomorrow.

Maximize Workplace Giving

A lot of companies provide matching giving programs as a benefit to employees. Utilize your fundraising platform and enable a corporate gift matching company search for organizations that participate in employee giving. Encouraging givers to look up their company in a donor matching database can help forge stronger emotional connections with donors and your mission by doubling their donation!

Think Outside Normal Business Hours

If you are targeting corporate donors, it makes sense to stick to traditional office hours for email sends, as you want to connect with those donors when they’re most active. However, if you’re targeting individuals and families, consider breaking out of the norm by sending emails, texts and social media posts during off-hours, including on the weekend. 

Use your fundraising platform to quickly schedule emails during off hours to maximize donations. Social media posts can also be scheduled ahead of time, making outreach a breeze.

The pandemic has severely impacted fundraising efforts for nonprofits around the world. As we settle into our “new normal,” the most successful nonprofits, regardless of size, will learn to adapt quickly and leverage tools to navigate an ever-changing fundraising landscape. From leveraging donor data and automating email outreach to tapping into social media and virtual events, the ability to meet revenue goals and enact positive change is far easier when backed by the right strategies. 

New Nonprofit Fundraising Guide -Top Tips for Raising More

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New nonprofits crop up all the time, yet there are still a lot of questions floating around surrounding fundraising from startup organizations. Can you solicit donations before receiving tax-exempt status from the government? What about grants? What exactly goes into incorporating and applying for 501c3 status? 

That’s why we’ve put together this quick guide for helping new nonprofits and the philanthropists behind their missions begin to explore fundraising in a new way. Specifically, we’ll cover the following:

  1. Fundraising before receiving 501c3 status
  2. Seeking grants as a new nonprofit
  3. Acquiring initial donor support
  4. Getting started with fundraising software

Are you ready to learn more about the beginning stages of fundraising as a startup nonprofit—and how to make your efforts as productive as possible? Let’s get started.

1. Fundraising before receiving 501c3 status

As a new nonprofit, you’re likely eager to get started fundraising as soon as possible. You don’t want to sit around waiting for some government official to approve your application. Luckily, you might not have to wait.

Nonprofit experts share that while it is possible to begin raising funds prior to receiving official 501c3 status, there are a few critical components to keep in mind:

  • You must disclose your uncertain tax status to donors before accepting gifts.
  • If your organization is denied tax exemption by the IRS, donors’ contributions will not be tax-deductible.
  • The rules and regulations can vary from state to state.

Make sure you look into the specific state and local laws where you’ll be fundraising to make sure you—and your donors—don’t end up in a difficult situation. Still, other organizations choose not to begin their fundraising until they’ve become an officially certified 501c3 nonprofit just to be certain.

2. Seeking grants as a new nonprofit

Grant funding is a fantastic way to supplement individual contributions and bankroll your organization’s mission—especially for startup organizations. This Grants Plus guide to nonprofit grant-writing stresses that a grant proposal should be clear, tailored, compelling, and persuasive. After all, it’s critical that you make a compelling case that your organization is the best recipient for the funding, as grant funding is limited and very competitive in nature.

If you’re seeing relevant grant funding for your organization, these are the most common sources to look into:

  • Corporations: Building partnerships with businesses and getting corporate sponsors is one of the best ways to raise support for your nonprofit. Corporate philanthropy is a win-win for all involved. The nonprofit receives critical funding while the business builds a charitable reputation among consumers and employees.
  • Government: Government funding is another great way to support your nonprofit as it’s beginning to grow. Specifically, there are federal, state, and municipal-funded grant programs in place to help charitable organizations pursue their missions. A great place to get started with federal grants is with the comprehensive database at grants.gov.
  • Foundations: Finally, there are also private grant-giving foundations that exist solely to financially support nonprofits looking to better the world, usually within the same community as the funder. These grants are typically more targeted, so it’s a good idea to search for foundations in the area that align with your own organization’s mission.

One thing to keep in mind when soliciting grant funding for your nonprofit is that while individual supporters might be willing to contribute to your fundraisers before you’ve received 501c3 status, most grant-giving institutions will not. Instead, you’ll likely want to wait to pursue grant funding until you’re an officially incorporated nonprofit organization. And in the meantime, you can begin building relationships with individual donors.

3. Acquiring initial donor support

Acquiring initial donor support for your new nonprofit can be an overwhelming task. After all, if you’re newly incorporated, it’s likely that you don’t have a lot of existing brand awareness in the community. When getting started seeking donor support, here are a few best practices to consider:

  • Explain the need. Why are you starting a new nonprofit in the first place? What need exists in the world that you plan to fulfill by creating this new organization? Before you can expect donor support, you need to make your community aware of the problem you attend to address—and how they can help.
  • Share where donations go. Be specific about where individuals’ donations will go and how they will be used. For example, can a donation of $X feed a family of four for a month? When you explain where funding is directed upfront, donors can see not only what their money is being used for (food), but who it is going to help (a family of four). 
  • Leverage your own network. More than likely, you have your own existing network of individuals who want to see you succeed. This might include family members, friends, colleagues, neighbors, and more. Try getting their support first, and encouraging them to share your campaign to their social media pages to garner even more traction for your fundraisers.

Then, be sure to begin the donor stewardship process to work toward building long-term relationships with your supporters. Although acquiring new donors will be critical at the beginning, it will be most cost-effective for your organization to begin retaining existing support rather than continually seeking new, one-time donors.

4. Getting started with fundraising software

Selecting your fundraising software is a critical aspect of getting your fundraising efforts up and running as a new nonprofit. Luckily, there are a ton of existing software providers to choose from.

Top donation software will prioritize aspects that enhance the donor experience and provide benefits to your organization, such as:

  • User-friendliness: Make sure your fundraising software is easy to use for both your nonprofit team on the backend setting up campaigns and your donors and supporters on the frontend contributing to your cause. Otherwise, you risk losing out on critical support due to a lengthy or otherwise complicated giving process.
  • Functionality: The features included will vary from provider to provider, but it’s a good idea to look for a solution that offers online giving pages, text-to-give, event and ticketing tools, and even mobile bidding software for fundraising auctions. The more functions your donation software encompasses, the more you’ll be able to raise for your mission using a single tool.
  • Affordability: Robust fundraising solutions can be great investments, but sometimes you just don’t have the money to shell out for new technology as a startup organization. Luckily, there are a ton of free and low-cost solutions available to help new and small nonprofits raise money without straining their wallets. Plus, if you invest in an easily scalable solution, you can add on new features and functionality as you need it. This way, your fundraising software is able to grow alongside your organization!

With the right fundraising software provider, you’ll be able to accept online donations and bring in online fundraising revenue for your new nonprofit. Then, additional fundraising software solutions (such as your donor database or CRM) can help you collect, organize, and leverage information about your supporters to build relationships and craft future campaigns.

As you surely know, starting a nonprofit organization is difficult—but it doesn’t have to be impossible. 

By launching your fundraising efforts as quickly as possible, exploring available grants, acquiring critical donor support, and setting up a foundation of high-quality fundraising software, you’ll be well on your way to fundraising success. And with that, you’ll be better equipped to pursue the mission that inspired you in the first place. Good luck!

Nonprofits and COVID-19: How to Strategize Beyond the Crisis

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Nonprofit Funding

When the pandemic first emerged, nonprofit professionals everywhere were caught off guard. At that point, the focus was on emergency funding, pivoting operations and simply responding to the crisis.

We’re now long past that point, and nonprofits everywhere are back to work with fundraising and other initiatives—after all, your organization’s mission is more essential than ever! But this period of uncertainty underscored the importance of a flexible, adaptable and informed strategy.

As we continue to work through unusual circumstances, it will be important to create a strategy that’s cognizant of the uncertain landscape while positioning your organization for success over the next 6 to 12 months.

When it comes to strategizing beyond the crisis, make sure to:

  • Fortify your internal foundation.
  • Revisit your planned fundraising goals and timelines.
  • Adjust your communications strategy.
  • Solicit gifts with care.
  • Turn to alternative methods of funding.

Are you ready to establish a strong foundation for success beyond the crisis? Let’s get started.

Fortify your internal foundation.

When the COVID-19 pandemic first hit the U.S., a flurry of stay-at-home orders and CDC social distancing recommendations sent citizens into their homes. Even many months later, many organizations are opting to extend these solutions to ensure staffers and volunteers are as safe as possible for the duration of the crisis. 

This is the perfect opportunity to revisit your impromptu work-from-home processes and internal structures to ensure everything is working efficiently.

As you begin refining your strategy, consider the following:

  • How can you improve your work from home policies? Consider which aspects of your organization’s productivity were impacted negatively in the transition to working from home. Can you create new policies around meetings, communications, scheduling, working hours, etc. to regain any lost productivity, or even to level up from your efficiency at the start of the year?
  • How can you improve any in-office/in-the-field procedures? Ensure your in-office/in-field staffers and volunteers are equipped with all needed equipment (and more!) to feel as safe as possible during this time. While the initial transition was quick, you should have more time and perspective now to address any issues. 
  • Would third-party consulting benefit your organization? Consider hiring a fundraising consultant to help navigate major strategy changes and challenges associated with COVID-19 operations. These advisors provide an unbiased view and nonprofit expertise to guide your organization to success despite the uncertain landscape.

Any of these improvements will continue to generate benefits for your nonprofit for years to come.

Revisit your planned fundraising goals and timeline.

While we wouldn’t advise taking on a large-scale capital campaign right now, avoiding fundraising completely is not an option. Your mission and the needs of your constituents still exist, and may even be more urgent due to the pandemic’s effects!

Instead of pausing, revisit your existing goals and timeline and make adjustments where needed to accommodate the current circumstances. Let’s break this down a bit further.

Timeline

Whether you’re in the middle of a campaign or you’re operating off a general 2020 fundraising calendar, you’ve probably set an overarching timeline for your organization’s upcoming efforts.

Revisit this timeline, paying close attention to benchmarks, campaign start/end dates and event dates. Then, consider the following questions:

  • Are there any deadlines that you’re not on track to meet?
  • Are there any upcoming events that must be moved?
  • Are there any benchmarks that you’ll have a better chance of meeting if they’re moved?

Making any needed adjustments ahead of time gives your organization the best chance possible to adjust and get back on course.

Goals

The challenges presented by the COVID-19 pandemic couldn’t have been predicted, even by the most observant, worldly nonprofit leaders. Because of that, it’s time to let go of any guilt associated with the inability to reach every fundraising goal you set at the outset of the year.

Of course, that doesn’t mean changing course with wild abandon! Instead, as the year draws to a close, consider each goal you set for 2020. Are there any that are simply impossible to reach, even if your nonprofit operates as optimally as possible from here on out? Brainstorm new challenging yet feasible goals— referred to as stretch goals in the world of capital campaign consulting— for your team to aspire toward.

Adjust your communications strategy.

Before you dive back into nonprofit fundraising, revisit and revitalize your current communications strategy. This is because the pandemic has created a few unique communications challenges, such as:

  • The society-wide stress that’s affecting many, whether due to economic challenges, health concerns or both.
  • The risk of sounding insensitive in the wake of such a societal downturn.
  • The physical distance separating nonprofits, supporters and the cause uniting both.

How do you greet all of these challenges when revitalizing your communications? We recommend starting with:

  • Training staff and volunteers to respond. Your staff members may be greeted with a new gamut of supporter responses, including eager support, ambivalence and even sad stories. Ensure they’re ready to respond in an empathetic manner regardless of how the conversations turn.
  • Recreating key communications materials. While you may have already prepared your fortified communications materials, including fundraising letters and your case for support, you should revisit these materials. It’s important that any physical materials you’re sharing with supporters acknowledge the state of current events.
  • Use technology to the fullest extent. To replicate the benefits of in-person communications, implement technology to further your cause. Consider using video conferencing software and social networks to stay connected despite social distancing measures.

With these tips, your staff will be better prepared to communicate with supporters during what is still a trying time for many.

Solicit gifts with care.

Many nonprofits opted against fundraising for their causes during the outset of the crisis to fundraise for the pandemic response instead. This isn’t exactly feasible, as your organization’s cause is too important to abandon for months at a time!

So, how do you begin soliciting gifts again as the pandemic wages on? Very carefully.

Consider the following tips for soliciting gifts during a crisis:

  • Check in with supporters before making an ask. Even though we’re well into a new phase of the pandemic, remember that the crisis is still in full swing for many! Begin any gift conversations with an acknowledgment of this, asking supporters first and foremost how they’re faring through it all. Further, only continue with the gift solicitation if the donor indicates they’re open to such an ask.
  • Offer creative giving options. For example, offer the opportunity to make a pledged gift now with the actual donation occurring later in the year. Or, offer a recurring giving program in which donors can give a smaller amount biweekly or monthly, rather than one large gift upfront.
  • Ask donors how you can best engage them. If a supporter is unable to give during this time, ask them how they’d like to be involved today and in the future. Would they be open to another gift ask a month down the line?

With these tips, you’ll be prepared to successfully secure donations to fuel your cause and continue stewarding those supporters that are unable to give at the moment. An empathetic and flexible fundraising approach will serve you well in the future, too. If fundraising during a crisis is unfamiliar for your staff, remember that you can bring in a consultant to help.

Turn to alternative methods of funding.

Donations to your organization may be less readily available than this time last year. COVID-19 kickstarted an ongoing economic downfall, with record unemployment rates that may be impacting your donors. You may encounter:

  • Previously secured major gifts being canceled.
  • A decrease in mid-tier and small gifts.
  • A pause of recurring gifts.

As we’ve covered, you should greet these situations with empathy and understanding. However, that doesn’t mean you should stop trying to fundraise for the cause! These recent circumstances have highlighted the importance of diversifying revenue streams.

Consider alternative methods of funding you may not have used in the past. For example, this is a great time to ramp up your efforts to seek donations from donor-advised funds (DAFs), grant funding and corporate sponsorships. 

Donor-Advised Funds

Donor-advised funds are specialized holding accounts in which major donors contribute funding, receive associated tax benefits and choose beneficiaries at a later date. These accounts are very popular with major donors, and there is a decent chance that some of your major donors have contributed already! 

Seek out these funds within your organization’s existing support base and externally from DAF sponsors, which include community foundations and wealth-management firms. Making allocations from a DAF is one way that supporters can give without actually donating any more during the crisis. Learn more through this DonorSearch guide.

Corporate Giving

In recent years, corporate giving has been steadily on the rise. While many industries have been negatively affected by the pandemic, others are still experiencing stability and even growth. 

While you should keep the sector of the company in mind (for example, now isn’t the best time to approach a travel-focused business), look to businesses as a potential source of revenue for your mission. You can solicit corporate sponsorships or look for opportunities to secure matching gift revenue or volunteer grants through the employers of your supporters.

Grant Funding

Many grantmaking organizations have vowed to make funding more readily available to organizations in response to COVID-19. This could mean simplifying application requirements or providing more unrestricted funds. Research existing and crisis-specific grant opportunities, and prepare your proposals.

Learn more about nonprofit grant writing through this guide, and don’t be discouraged if you need to seek fundraising consultant assistance with the process. After all, proposal writing takes a village!

While many organizations paused fundraising and forward-movement at the outset of the pandemic, it’s past time to hit “resume” on your nonprofit’s operations. Your essential cause depends on it. 

Incorporate these tips into your approach, and consider hiring a nonprofit consultant for a fresh perspective and seasoned experience. By following this guide, you’ll strengthen your nonprofit’s fundamental strategies in order to handle the challenges of the current landscape and thrive in the future.

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

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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.

Endowment Spending

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

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Fundraising During and After CrisisThe 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 your nonprofit content 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.

Donation. 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.

Estate Donations. 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 to connect with donors.

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

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Connecting with Nonprofit Donors 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 With Donoros – 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 Nonprofit’s 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 Nonprofit’s 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 Nonprofit’s 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.

Engaging with Donoros 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

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Fundraising Re-Engage Lapse DonorsIf 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” Donor

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

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

Fundraising is like an Onion

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.

Fundraising Campaigns, 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.

Lapsed Donors, 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!”

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