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How to Write a Letter of Thanks for Donations

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letter of thanks for donationsFunding 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!

 

Five Reasons for Nonprofits to Hire an Outsourced CIO

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Investing Nonprofit FundsWhen is it time to outsource your nonprofit’s investment management?

In the same way that a nonprofit’s size does not dictate its need for legal assistance, a portfolio’s size alone does not dictate the need for investment assistance.

The key role of a nonprofit organization’s trustees is to ensure that investment assets are protected and properly managed so that they can serve the organization’s mission. Regardless of the size of the investment assets, the investment committee seeks to balance the objectives of both long-term growth and ongoing funding of the organization’s grant-making activities. To fulfill their roles, trustees can and do seek guidance from objective third parties, whether for legal or investment advice.

At what point does the trustee determine if they should manage the assets on their own or hire an outsourced chief investment officer? The size of the investment portfolio may not provide a clear indication, but there are recognizable triggers that may require a closer look.

Here are five common situations when an Outsourced Chief Investment Officer (OCIO) can be the smart choice for an organization of any size.

Increased Complexity Overburdens Committees

Even savvy, well-intentioned professionals can feel overwhelmed by the number of decisions involved in maintaining complex investment portfolios — especially if they meet no more than once or twice a quarter, which is common. The growing number of managers in portfolios, complex alternative strategies, and increasingly volatile markets make it difficult for committee members to both keep pace and make thoughtful portfolio decisions.

The Uniform Prudent Management of Institutional Funds Act[1] (UPMIFA) provides trustees with the ability to delegate certain aspects of their responsibilities to an outside entity, if that can help them better meet their obligations as a governing fiduciary. Trustees retain responsibility for overseeing the OCIO service provider, who then acts as managing fiduciary and takes over the day-to-day responsibilities of managing the portfolio. The investment committee regains the time needed to focus on larger strategic decisions, while the OCIO becomes a co-fiduciary and shares the risk and responsibility.

Challenges in Continuity

Most nonprofit organizations have enjoyed strong investment returns over the last ten years. Yet memories of the 2008 crisis’s impact on investment-portfolio values and spending levels are vivid. In many cases, committee members have rotated since the last market downturn, and today’s members have not worked as a team through a similar market environment.

When committee membership faces regular turnover, each change introduces new perspectives, and new biases. Whether swayed by the dominance of a single member or by memories anchored to a single historic event, committees can become susceptible to difficult dynamics during periods of market volatility, when it is crucial to maintain a disciplined approach to investing.

An OCIO provides continuous institutional memory to the portfolio’s management and has the experience and perspective to adhere to a strategy appropriate for the long term.

Scale Impedes Growth

Smaller aspirational nonprofits with limited resources often find themselves at a disadvantage when competing with larger organizations for donor capital, whether for capital campaigns or ongoing fund drives.

With an OCIO managing their assets, small nonprofits can stand on par with larger charities by showing they have the resources of a large, professional entity, thus gaining the confidence of donors who are empathetic with their charitable mission. The larger the donation, the more sophisticated the donor, and having an OCIO is an advantage in these negotiations. When a large donor feels confident that their donation will be well-managed, the donor may even see an advantage in being a more meaningful contributor for a smaller charity. With an OCIO, even a small nonprofit gains the advantages of scale and expertise that are typically thought to benefit only large organizations.

Time Constraints Limit Strategic Focus

With limited resources, smaller charities often struggle just to meet day-to-day objectives and don’t get to spend the time needed to focus on larger organizational goals. Outsourcing the day-to-day workings of human resources, payroll, and accounting makes it possible for these organizations to develop and maintain a level of professionalism on limited budgets. Further, they can focus their resources on meeting larger strategic goals, such as growth, and on developing their missions.

With an OCIO taking care of day-to-day investment management responsibilities, boards and investment committees with responsibilities for endowment or foundation assets can free their time; instead of discussing individual investments and portfolio line items, they can focus on more strategic matters, such as reviewing their endowments’ broad strategic frameworks and aligning investments with funding and campaign goals.

In-house Costs Exceed OCIO Costs

Nonprofit Fundraising Investment ManagementThe larger and more complex an investment portfolio, the larger the amount of resources needed to manage the investments internally. Whether that translates to additional people in the finance department or the development of people and systems for an entire investment office, the costs of an OCIO can be assessed both in dollars and in the additional organizational complexity that would be required to maintain these resources internally.

For a nonprofit to continue its mission today and in perpetuity, it must weigh the long-term value of important financial decisions, from capital expenditures to whether and when to leverage external resources to enhance the organization. The cost-versus-reward calculation of an OCIO is as important as the calculation for new computers or a more effective donor-communication and -marketing system that helps professionalize and streamline operations. Most investment advisors should be able to share several return-on-investment scenarios, based on the risk tolerance of the charitable organization, to aid in this decision.

With the number of nonprofits growing and with all of them competing for the same donor dollars, it is beneficial to step back and review the needs, limitations, and aspirations of your organization. It may be that in developing internal best practices and long-range goals for your investments, there could be room for another form of contribution — one an OCIO can make.

About Canterbury Consulting
Canterbury Consulting is a leading investment advisory firm overseeing $20.2 billion for foundations, endowments, healthcare institutions, and families, as of December 31, 2018. Founded in 1988, the company designs and manages custom investment programs aligned with each client’s goals. Canterbury acts as the investment office for its diverse clients and provides objective investment advice, asset allocation, manager selection, risk management, implementation, and performance measurement. Canterbury Consulting strives to deliver performance and service that exceeds the needs and expectations of its clients. Learn more about Canterbury Consulting at www.canterburyconsulting.com.

[1] The Uniform Prudent Management of Institutional Funds Act is a uniform act that provides guidance on investment decisions and endowment expenditures for nonprofit and charitable organizations. UPMIFA and its predecessor acts were first approved by the National Conference of Commissioners on Uniform State Laws (NCCUSL) in 1972.

Selecting Fundraising Software: A Guide to Navigating Board Approval

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Nonprofit Fundraising SoftwareIn today’s data driven world, modern nonprofits are finding that fundraising software is a necessity to complete their mission. Yet justifying the expense for fundraising software to board members can prove challenging.

Determining which software is needed for your organization can prove to be an even greater challenge. There are many different types of fundraising software, including CRM, Event Management, Matching Gift, Donor Research, Online Auction, Mobile Bidding and more. When selecting fundraising software and presenting it to your board, there are a three key steps you should keep in mind:

  1. Conduct a NEEDS Assesment

The first step in selecting fundraising software is to identify your organization’s needs.   It’s important to know that whatever software you choose will fit your nonprofit’s needs now and in the foreseeable future.

Before you dive in and start researching software options, create a list of the common issues your organization is currently facing that software may be able help simplify.

There are several things you may want to consider when creating your list, including:

  • How are you managing donor records?
  • Are you finding challenges with planning fundraising events? Ticketing? Auctions?
  • What kind of data sources are available for donor research?

With this list in mind, you can make a more informed decision about which software is going to help you tackle your greatest challenges.

  1. Prepare Your Presentation

Now that you’ve evaluated your organization’s needs it’s time to start preparing for your presentation to the board. The best way to do this is to consider which question you think your board may ask and what objections they may bring up. They may ask:

  • What are the adoption costs?
  • How long until we start seeing results from this investment?
  • Why is software an improvement from our existing systems?

You know your board better than anyone else, so take the time to think of other questions they may ask and be prepared with thoughtful responses. It will probably be helpful to break down larger questions into smaller ones to make sure you really address the board’s concerns.

  1. Share your Findings with Your Board

Selecting the software is only half the challenge. Presenting your findings in a way that will best answer your board’s questions is essential to make sure your organization makes the right purchasing decision.

As you build your presentation make sure you address likely questions. Add facts, data and comparison charts so your board has a solid understanding of the costs and benefits of both keeping your existing system or purchasing new fundraising software.

Try to schedule one-on-one conversations with key board members before you build your presentation so you know which key points you should highlights and which issues you should avoid.

To make your presentation count, here are a few tips to keep in mind:

  • If you’re building a slide deck, focus on one key message per slide.
  • Use graphics and images to illustrate your message. The fewer words per slide the better.
  • Keep it short and simple.

Make sure you take time to practice your presentation beforehand. Have your team review your presentation with you before you present it to your board. If possible have a friendly board member sit in on your practice sessions and provide feedback.

Closing Thoughts

If you think your organization would benefit from fundraising software, it’s imperative that you take strategic approach with your board when securing funds for the investment. As long as you come prepared and provide a thorough presentation, you should be confident they’ll agree with you.

For additional information on purchasing fundraising software, check out BidPal’s guide on Best Practice for Purchasing Online Donation Software.

Technology Creates a New Giving Economy

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Crowdfunding for NonprofitsTechnology can be very good for the nonprofit world. While technology has fundamentally changed the way we do business, the world outside of the for-profit sector has just recently caught on to its benefits. Some tech phenomena have already successfully infiltrated the nonprofit sphere, including the use of Software-as-a-Service (SaaS) to improve donor relations and other daily business functions, or crowdfunding for fundraising purposes. While existing technologies remain useful for many, the next wave of using technology for good will be in the peer-to-peer giving model.

Becoming prime time in the corporate world in the early 2000s, SaaS took hold in the nonprofit space in the last 8-10 years. The very nature of SaaS made it ideal for the nonprofit sector: It’s easy to use, low cost, and avoids integration challenges that often come with on-premise databases. It was also readily adopted because of its ability to help groups manage donations and track individual donors.

For example, Room to Read, a global organization transforming the lives of millions of children in low-income countries by focusing on literacy and gender equality in education, relies on SaaS application Salesforce for project allocation, reporting and tracking. It helps their global teams track at scale for both the project and donor side, enabling them to make more meaningful connections and retain existing donors.

The next wave of technology modeled perfectly for nonprofit use was crowdfunding. Making its first appearance in the late 2000s, nonprofits quickly turned to Indiegogo and KickStarter to help fund their initiatives and programs. Crowdfunding caught on in the nonprofit world because it was an easy platform for anyone to access and donate to. With online payments becoming standard, it took the hassle out of mailing a check or donating in-person. Also, the collective community aspect allowed hundreds of people to work together to reach a common goal.

In 2014, Code.org launched its ‘Hour of Code’ program, with a goal of raising $5 million on Indiegogo to train 100 million students to code. They also created a viral video starring Mark Zuckerberg and Bill Gates for the campaign. It was the most successful Indiegogo crowdfunding campaign of its time, quickly surpassing its goal and showcasing the power of collective online donations.

While SaaS and crowdfunding have clearly made their mark on the nonprofit sector, the next technology that will be adopted in the nonprofit sector is peer-to-peer sharing. First emerging in the late 2000s and becoming mainstream in the last three years, the for-profit sector has already seen runaway hits in the peer-to-peer economy with startups like Airbnb, Uber and Zaarly. So what if this model was applied towards social good?

Elevating the sharing economy to the giving economy, nonprofits can tap this concept to allow donors to connect directly to those in need. Users are already familiar with peer-to-peer giving technology and it is easy to use and implement at a broad scale. Also, it is appealing to a millennial’s mindset who wants to help or receive help at the touch of a button.

Additionally, this model takes crowdfunding one step further by creating a meaningful one-to-one connection. Instead of being one of many, a donor can foster a direct relationship with someone in need and feel more satisfying for the donor. Donors who give in this way often receive immediate and direct feedback from someone they have helped, bringing a rush of emotions knowing they have impacted someone’s life. This is what turns random acts of kindness into a normal habit.

Out of all the nonprofit sectors, social services can benefit the most from peer-to-peer giving since it fosters a more dignified way for people to seek help. Because peer-to-peer giving is non-conditional and not predicated on paperwork, rules about sobriety, lifestyle, or impersonal prioritizations by well-meaning social agencies, those who need help can simply receive it from another community member. For instance, if a homeless person requesting a tent has to wait six months for social services paperwork to go through, it can mean they have to sleep outdoors, in the rain, in fear for personal safety, for another half a year. Peer-to-peer giving can drastically shorten the time to receive something critically needed for survival from months to days or even just hours.

The tech world isn’t just in a Silicon Valley bubble anymore. Technology has helped nearly every industry around the globe develop new product or services. With an ever-expanding influence, we have the opportunity to capitalize now on these innovations and benefit the greater good. Next time you spend 10 seconds requesting an Uber, imagine spending the same amount of time to help someone in need. Donating money, supplies or services to anyone, anywhere, with a single click.

Dos and Don’ts of Charity Auctions

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Dos and Don’ts of Charity AuctionsCharity auctions, run properly, are a tremendous fundraising opportunity with the right items and organization.  We consider auctions part of the evening’s entertainment … So make sure they are engaging and fun!  Auctions can make upwards of $1 million (this involved auctioning a Ferrari), but on average, you can expect to raise $10-20,000, a significant contribution to the cause.

If realtors emphasize “location, location, location,” we’d like to emphasize “merchandising, merchandising, merchandising.”  Here’s what we’ve learned over the years, from personally managing charity auctions ourselves (silent and live) and from shopping at many more.

 

Silent Auctions

#1 – If appropriate for your event, serve alcohol (‘nuf said).

#2 – It takes a village. Enlist the board, staff and members of your organization and event committee to collect donations. Set a goal for board members (at least one event sponsor and two auction items, for example). Encourage supporters to make requests of the proprietors of restaurants, hotels, clubs, spas, hair salons and retail stores they frequent or where they work.  Provide a deadline when donations need to be secured to give you time to create the presentation materials (see item #6).

#3 – Provide materials for volunteers to use. Sometimes people are overwhelmed about where to start … so they don’t.  Provide:

  • A template letter for requests, which briefly talks about your organization and the event, lists the types of donations you’re looking to receive and provides your 501(c)3 information.
  • A donation form, which requests a full description of the item, any limitations, such as blackout or expiration dates, etc.; retail value; who should be credited on the bid sheet for the donation; and contact information for questions (and, later, a thank you letter from the charity).

#4 – Auction items that do particularly well in our experience include experiential opportunities, travel and hotels (exotic locales as well as “staycation” spots), restaurants and consumables (wine and food). Also include items that are a value for activities in which people already engage.  For example, gift certificates to area spas and restaurants, tickets to local sporting events or concerts … even dry cleaning services.  What is a unique experience in your city that people would love to get the chance to do?  A private tour of a sports stadium prior to a game or entry into a private club?  A sunset boat ride, tee time at a local golf course or a river kayaking trip?  Consider lessons for tennis, dancing, painting or horseback riding.  How about a local caterer or restaurateur donating services to give a wine-tasting event or prepare a meal for four at the winning bidder’s home?  And donations from local artists.

Charity Auction Tips#5 – Organize donations into categories, so that people can shop items that interest them in one area. Popular categories include Travel & Entertainment, Restaurants, Lifestyle (spas, clothing, makeup, etc), Wine & Food, Memorabilia, Art and Sports.  Of course, your donations will also dictate your categories.  Provide signage so people can identify the groupings.

#6 – You need to “sell” your items much like retail stores merchandise their products.   Make the displays and descriptions appealing (You will need to re-write most of the copy provided to you … and be prepared to do some research).  Arrange them decoratively.  Bring floor and table-top easels.  Display photographs and other representational artwork in 8 x 10 acrylic frames.  Create gift baskets that combine like items, such as wine and chocolate or spa gift certificates with personal pampering products.

#7 – Make your silent auction akin to a shopping experience.  Invite a handful of local vendors who work charity events. We’ve had vendors with handsomely framed lithographs of the masters; estate jewelry; and more.  They make your auction more interesting, donate 20% of their sales to the organization and many of them will also provide a direct donation to your auction. Additionally, a reputable vendor will give 20% of sales that occur later, but resulted from initial contact at your event.

#8 – No matter how organized you think you are, have extra blank bid sheets that you can fill out by hand.  You may be missing one sheet … or someone will show up with a donation you didn’t expect. Also have additional sheets for popular items, where bidding goes to page 2.  Request their name, phone number (preferably cell so you can text the winner) and e-mail information.  You will need to track down bidders who have already left the event.  Make the barriers to placing a bid as low as possible, with the starting bid at a reasonable minimum and defined bidding increments.  Modest (though not incidental) increments encourage bidding wars.  Bid sheets should be on clipboards (or the budget clipboard of cardboard & paper clip) and pens should be plentiful.  Winners should not need to be present to claim their winnings.

#9 – It’s helpful to color code your item sheets by category with stick-on dots and to number items within the category for quick reference.  This makes check-out run much more expediently. Organize the gift certificates at the check-out (do not display them on the tables).

#10 – The auction should be staffed at all times to answer questions, encourage friendly bidding competitions, engage bidders (Do you have gifts you need to buy in the near future?) and, sometimes, to prevent theft. (Sadly, it happens.)  Throughout the evening, take the mic and create excitement, remind people the auction will be closing at [designated time].  Although you need to be conscious of when people may want to leave the event, schedule your closing as late as possible to maximize bidding opportunity.  Much like a birthday party, once the presents are opened, people leave the party.  Have the emcee announce that items will be distributed one-half hour after the auction’s closing to give you time to organize the check-out.

#11 – When the auction ends, have plenty of volunteers ready to collect bid sheets quickly (no cheating!), to help process payments and deliver items to the winners promptly. Organize the winning bid sheets by the same category in which they were displayed to make it easier to find.  Additionally, you can make a “winners” board with a chalk or dry-erase board.  Create a check-out line with at least two representatives to process credit card payments and one to handle cash/checks and hand out gift certificates.  If possible, set up a Square payment system for your charity. If that’s not possible, make sure you have a phone line available to your check-out station to process credit card payments.  If you are utilizing an old-fashioned, carbon copy imprinter, your credit card processing company may offer a slightly lower rate if you write their phone/address on the receipt (and it gives you recourse for any problems that come up later).  Stamp the bid sheet PAID and hand it off to designated “runners” who will track down the item and hand it off to the winner.

 

Live Auctions

If you have one or two extraordinary items (private jet travel, full vacation experience at a high-end destination, dinner with a local celebrity, etc.), you may want to consider holding a live auction.  Announce that the silent auction is closing soon, then have someone from your organization (who isn’t shy) take the mic and oversee the bidding.  Have volunteers help you identify who is bidding in the audience and escort them to the payment table.

We have also been at a few events where a professional auctioneer oversees a larger effort.  Project Angel Food in Los Angeles does this really well.  The auctioneer sells “opportunities,” such as “$2,500 will buy special Thanksgiving meals for X number of clients” … and so on. Frequently, they sell more than one across a variety of categories and donation levels.

Opportunity Drawings

Formerly known as a raffle (until the IRS regulated the age-old tradition), it’s another fun way to enliven the evening and we consider it icing on the auction cake.  But make sure you follow state and federal guidelines. If you’re willing to negotiate the red tape, here are a few ideas …

Have the item(s) merchandised at the check-in table.  Ask people to “make a donation” for tickets (rolls of dividable carnival tickets will do) as they check-in, then have volunteers walking around to offer them throughout the evening.

One gimmick that works extremely well is to suggestion a donation of $1 per ticket or “your height in tickets” for $20.  Have them put one foot on the end of the ticket roll and literally break off the length of tickets at the top of their head. (We always give shorter guests a few bonus inches).  It’s a great ice breaker.

While regulations chance drawings vary by state, you can review the federal guidelines regarding tax-exempt organizations and gaming at:  https://www.irs.gov/pub/irs-pdf/p3079.pdf

With the above tips, your silent auction should be a huge success and make a significant contribution to your organization’s mission.  Good luck!

3 Ways in Which Donor Data Helps Nonprofits Raise More Funds

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Nonprofit AdviceHow many times have you had the thought of whether the donations you make are being used efficiently? Nonprofits across the globe are now turning to data to make the processes much efficient and bring about transparency. They store and analyze data to not just improve their own logistics but also to be able to target potential donors the right way.

The data is available in the form of data stored in donor databases, blog posts, and social media posts and so on. All this data offers a gold mine of insights for the nonprofits.

NONPROFITS’s today are talking about when and how to tap into this data and what to do with it. They want to know how to sort, analyze and manipulate the data and put it to use. By leveraging analytics tools and solutions to analyze the wealth of donor information, Nonprofits can gain powerful insights into their donors’ behaviors and needs.

Especially small nonprofits are really struggling, and data analytics and social media strategy can go a long way in strengthening local nonprofits thrive in the competitive environment. If NONPROFITS’S figure out ways to merge the data across different channels and create a single view of the donors, they will have a competitive advantage in the following three areas

  1. Better retention/reactivation strategies: Nonprofits can develop better retention/ reactivation strategies if they have access to donor data, intelligent data mining can help in generating more donations through reactivation and retention than trying to generate new accounts. For Example. CRY foundation which is focused on child empowerment has donor data across continents. Understanding the mode of communication to which the donor responds best, they have been able to increase their donor retention rate every year. This in turn have only aided them in ensuring a deeper impact every year on wards.
  2. Better marketing decisions: Leverage history and response behavior to make better targeted marketing offers to donors increasing the chances of success. Nonprofits can connect their donor base and put up creative appeals intelligently better offers and increase the donation in response for their appeals.
  3. Better donor experience: If we know a certain nonprofit donors talks better to a certain agent – try and route calls to that agent. If they are online – display information relevant to them based on their web traversal history. Monitor social postings, and identify the opinion leader in a pack of friends to determine where to make an appeal. This will increase the awareness as well as increase donation. Another method to better donor experience is learning from what Akshaya Patra an India based nonprofit organization that focuses on providing mid-day meals for about 2 million Children in ten states of India. They collect data on feedback from Children in order to ensure high quality of meals every day. This data can be passed on to potential or current donors to ensure that their donation is making a difference to the lives of the children.

Even though just two examples have been mentioned in this article many other organizations that are also turning towards data to utilize resources effectively, save time & costs, and thereby increase efficiency of operation tremendously. Even though many organizations are not too optimistic about depending on data for driving their decisions, organizations that have done so has seen great improvements.

Co-Authored by Dheeraj Pandey & Danesa Thandassery

 

 

The Basics of Mobile Fundraising

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text to give fundraisingThe term “mobile fundraising” gets tossed around quite a bit. You’ll hear it at your nonprofit’s board meetings. It comes up in casual conversation. And it’s certainly all over the internet.

But in all of these instances, rarely does anyone offer any solid definition or actionable advice around mobile fundraising the way they do with other fundraising ideas.

That’s exactly why we gathered the basics of mobile fundraising right here: from A-Z.

First things first: what is mobile fundraising?

Mobile fundraising, simply put, is the raising of money using the technology that’s built or incorporated into smartphones and tablets.

It can include (but is not limited to):

  • Mobile email fundraising, which is much like traditional email marketing, except that it reaches donors on the move.
  • Learn about mobile fundraising and how to use itQR code promotions, which invite donors to scan a code using their smartphones. The code will lead the donors to an information or donation page.
  • Text-to-give campaigns, which allow donors to give using the existing texting app on their mobile devices.
  • And more!

What are some common mobile fundraising keywords?

  1. Mobile-responsive: A website that is mobile-responsive is one that works just as well on a mobile device (smartphone or tablet) as it does on a laptop or a desktop.
  1. Text-to-give: One facet of mobile fundraising, text-to-give involves donors texting a donation amount to a specific number and following the subsequent steps to complete their contribution.

Fundraising ideas for mobile phones

  1. Tokenization: While this term is not specific to mobile fundraising, it is an integral part of the process. Tokenization is the transforming of private information (credit card numbers and other identifiers) into a code that can only be read by the payment processor. It’s important to know about tokenization because it’s a large part of how mobile fundraising keeps donors safe.

What is the difference between mobile fundraising and text-to-give technology?

Mobile fundraising is the blanket term. Underneath mobile fundraising, you have:

  • Mobile donation pages
  • Mobile email fundraising campaigns
  • QR code promotions
  • Text-to-give campaigns
  • Mobile crowdfunding

Mobile Fundraising Ideas

As you can see, texting to give is just one small part of the whole that is mobile fundraising. Some nonprofits see them as interchangeable, but the truth is that mobile is so much more than texting.

Is your organization ready for mobile?

Now that you have some of the basics down, it’s time to start asking yourself if mobile fundraising is right for your organization.

It can be a great tool, but if you’re not ready to incorporate mobile fundraising into your overall strategy, you might not end up using it to its fullest potential.

To be sure, here are some sample questions to ask yourself:

  • What are my typical donors like?
  • Would they be open to donating on the go?
  • Do we have the necessary resources to launch a mobile fundraiser?
  • Who would be in charge of handling the fundraiser?
  • How could my organization benefit and grow from something like this?

These are by no means the only questions your nonprofit needs to ask before you get started. They’re merely meant to be a jumping-off point for more serious discussions.

What types of nonprofits use mobile fundraising technology?

Essentially, every kind of nonprofit can benefit from mobile fundraising.

But specifically speaking, here are the most common types of nonprofits that raise money on mobile:

  • Arts and culture nonprofits, like symphony halls, art museums, and historical preservation organizations.
  • Animal rights societies, from shelters to national agencies.
  • Disaster relief foundations, both international and local.
  • Educational nonprofits, from support groups to policy advocates.
  • Environmental preservation groups, from local efforts to global conservation funds.
  • Faith-based organizations, such as churches, synagogues, and mosques.
  • Health and wellness organizations, like hospitals, research funds, and awareness nonprofits.

As you can see, from A-Z, all different types of organizations tap into mobile fundraising.

 

There you have it! All the basics you need (plus a little extra info for good measure). The hope is that with a more solid foundation, you’ll feel more confident when it comes to thinking about launching your own mobile fundraising campaign.

 

How to Avoid Managing to the Numbers Ruining a Holiday

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Nonprofit AdviceAs the new economy forces nonprofits to act more like the for profit world, you should ask yourself this question: is your organization fooling itself by managing to a number?

Are you devoting this year’s donor initiative to prospects that should be given a longer nurturing period in order for your organization to gain a larger gift? Where else might short term actions detract from the best decisions for long term social missions?

To better apply this to the nonprofit world, let’s start with the more easily visible version of this issue in the for-profit world. By applying the following points to your organization, you may be able to improve its sustainability. Leaders of both public and private companies sometimes publicly single out specific numerical targets for net income. Once stated, those targets often become obligations.

So why is this an issue for them and you? Well, in those leaders’ zeal to consistently reach numerical goals, for-profit organizations begin to fall for the temptation to stretch some quarters to reach targets. Sometimes, they even slow down, lest they bring in too much income above the target number in another quarter. The result: in their ever-increasing attention to reaching short-term numbers, leaders can lose focus on making the best long-term decisions to build values.

Month end, quarter end, and fiscal year end personal activities can be taken hostage in this teeter-totter process of getting just enough income (but not too much) in the current period. This phenomenon can be likened to Goldilocks tasting the three bears’ porridge! (Having been part of year-end deal-closing crunches, I can assure you that inordinate amounts of time, money, and focus are required to to get deals closed in the desired period. Often those crunch times occur during holidays or when special family events had already been scheduled, inconveniencing and annoying the employees involved.)

When they have gone too far in covering shortfalls to reach arbitrary numbers, companies often hold “fire sales” to ensure they get the last few sales needed for target revenues. This practice can backfire and result in customers quickly learning to hold off on purchases until the regular desperate overture is made at period end. All of these complications result from a focus on hitting the sacred numerical targets. This ends up reducing margins as well as creating a spiraling impact as the company continues to try to make upcoming period results.

What does this this obsession with exactly hitting stated numerical results do to the sustainability of employee or volunteer commitment throughout the organization? Consider this corrosive environment with stress and pressure from the non-economic energies required to reach those targets. How much does that pressure detract from corporate responsibility to shareholders to consistently build economic value for the enterprise within risk tolerances and resources available? (Some of you should be starting to see parallels in your nonprofit world.)

At what point does this create a situation where the for-profit or nonprofit organization gets too caught up in the process and loses track of real balance sheet and operating information needed to make the best decisions? The closer to customer facing activities this incorrect data reaches, the more likely it creates operational inefficiencies.

As a result, the company owner, leadership team, or staff will likely devote holiday time to managing wasted energy needed to hit those numbers, when instead they should be looking at building equity and long-term wealth.

But fear not good fellows! For good news is at hand: Santa’s got 3 stocking gift ideas to help you reduce emotional cost and financial fallout. These three actions can help bring back the spirit of good cheer, and happier spouses, families and significant others in the form of restored holiday time:

  • Consider targeting a numerical range, not an exact amount. Why not set a number goal of, plus or minus 2 to 5 percent? Think of this concept sort of like a flex budget.
  • To encourage employees or volunteers to emphasize consistently reaching longer-term goals and objectives, change or adapt incentive programs. A balanced scorecard approach fits very well with tailored incentive plans. Plans that can be measured produce
  • Change the tone from the top to emphasize doing things right, instead of focusing on managing income. A number of experts suggest that an emphasis on doing things right does a better job of building long term equity or fund balance. This tone fits better with the mission and vision for most nonprofits, anyway.

And, in return, Santa only asks that you truthfully reflect on the possibility that this short-term income-oriented behavior runs deeply in your socially-concerned, mission-driven nonprofit. The fact is, you may need a fresh set of eyes to see where you are. Then, as you begin to eliminate non-economic activities, maybe the majority of your employees can enjoy their holiday time.

This concept can apply beyond the traditional holiday season to other holidays throughout the year like Valentine’s Day, Independence Day, Labor Day, Thanksgiving etc.

His Boardsource presentation and Roadmap to Sustainable Mission is available at http://www.boardsourceleadershipforum.org/session/boardroom-black-holes-and-taboos-2/


How to Get Started With K-12 Fundraising

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The children need erasers! And air conditioning! And teachers! The children can’t just sit there and be expected to discover how multiplication and division work.

School Fundraising IdeasFundraising for K-12 schools isn’t calculus. While fundraising, in general, may require some serious thinking, raising money for schools is simple math, and something that your school can and should do in order to have the funds to offer the best opportunities.

What is K-12 fundraising?

Educational institutions need to raise money for various expenses, such as student clubs, community projects, facility updates, and more.

K-12 schools receive local, state, and federal funds, but they tend to need more money in order to operate at full capacity. As nonprofits, raising money through charitable donations from parents, alumni, and community members is a great way for schools to accrue more revenue.

Why do schools fundraise?

For the same reason you go to work. They need money to pay the bills. Schools have to cover the cost of teacher salaries, field trips, educational resources, and more.

There are plenty of other common initiatives that schools fundraise for, such as:

  • Sports teams
  • Transportation costs
  • Extracurricular activities
  • Core classes
  • Educational programs
  • Facility renovations

K-12 schools can even emulate colleges and fundraise on behalf of charities. Many K-12 schools have clubs that support local or national causes. These clubs run fundraisers on behalf of their respective nonprofits.

Causes that student clubs and schools might support include:

  • Natural disaster aid
  • Military veterans
  • Homeless shelters

Using a school to fundraise is a great way for nonprofits to make their needs known to entire communities at a time.

How do K-12 schools fundraise?

Fundraising begins and ends with your people, who fall into two groups:

  • Fundraisers – Teachers, administrators, and students are your go-to people for organizing and executing fundraisers. Parents and community members can also help.
  • Donors – Parents are the most common donors, but school staff and members of the community can also give. Just don’t ask your students to fork over their lunch money.

Crafting fundraising events requires knowing your people. What fundraisers do the students want to run? Would parents be more giving if you ran events geared towards them, such as wine tastings? How much time and energy does your school’s staff want to dedicate to fundraising?

Asking for donations is the usual nonprofit method of raising money. If your school is going to request gifts, then it helps to use prospect research to learn important facts about parents that can help to make fundraising appeals more personal and more effective.

However, schools have the luxury of being able to get creative with fundraising. There is a plethora of events that schools can run in order to raise funds for big events like prom, homecoming, and student trips.

Test out one of these three fun, creative fundraising ideas to help your K-12 school get started:

  1. Penny war – Kids might not get naturally excited about fundraising. To encourage more enthusiasm, you can try an interesting, competitive fundraiser. Penny wars challenge students to bring in loose change. You can get tricky with the rules, but the goal is to make it a fun competition that helps your school raise money from spare change that might have otherwise been left lying around.
  2. Bake sale – While parents can obviously get involved by donating, you can build some goodwill by encouraging parents to help out and feel like they’re doing more for the cause. Bake sales are a chance for parents to work with their kids to cook delicious treats. Parents can also help to organize and promote bake sales, as well as oversee the sales. A big perk of getting parents involved as participants, rather than just donors, is that they might tell their friends that they’re part of a bake sale, which could mean that new people come and support your school.
  3. School sleepover – Parents love their kids, but they could always use a night off. Many parents will gladly pay for their kids to sleep at the school. This benefits the kids, too, as they receive a night full of games and snacks with their buddies. Make sure that your school has teachers and administrators willing to help out, as the burden of playing ‘babysitter’ often falls upon them.

The secret weapon of K-12 fundraising is the ability to host events that involve students, parents, and larger communities. Schools can have plenty of fun while raising funds, and there is an endless variety of fundraising events from which they can choose.

Once you’ve selected and hosted some fundraisers, learn how to make the grade with your events by testing their performance using success metrics!

Students in grades K-12 need great resources in order to learn. Don’t wait for the future. Kids are the future, and they need great schools now.

 

Fostering Empathy Online: An Important Piece of the Fundraising Puzzle

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Online Fundraising AdviceFostering empathy and connecting with donors online has the potential to influence giving and build long-term relationships and support – results any nonprofit would value. Unfortunately, many of them simply don’t have the time or resources to investigate the best ways to use social media and online resources within their organizations. As a result, marketing and development teams often continue to focus heavily on attracting and engaging donors using traditional fundraising models, which can lead to a frustrating disconnect with donors and less-than-stellar fundraising results.

However, nonprofits that have taken the plunge into online outreach are seeing increased donor engagement via social media channels, influencer networks and digital-centric campaigns. They’ve also benefitted from tapping the expertise of interactive agencies to improve their online giving outcomes.

The good news is that there’s a huge array of online tools and channels available to help nonprofits connect with their audiences successfully. If you’re about to dive into social media, here are a few tactics that can make your efforts more successful and rewarding.

  1. Get to Know Your Audience

According to a Cygnus Applied Research survey, 61% of donors would prefer both to receive communications and to give exclusively online. However, 49% said they’re likely to donate less if they feel over solicited. Knowing and respecting these preferences helps you not just connect with new donors, but make sure they become long-term allies.

First, take a moment to think about your audience. Where they are spending time online, and when?  Are you trying to reach moms? Dads? Young adults? CSR directors and other professionals? What are their habits, on and offline?

Thanks to the increased amount of time that consumers are spending online and on their mobile devices, nonprofits can access much of the data about their behaviors, preferences, transactions and affiliations. Turning that information into actionable insights can help inform a development team’s specific stewardship and engagement strategies, and can be used to tailor marketing messages to different donor segments online.

  1. Create a Campaign that’s Emotional

After you’ve identified your audience, it’s time to engage, remembering that not all donors are attracted by exactly the same marketing messages. Like any relationship, social engagement is a give-and-take proposition. Liking, sharing and retweeting others’ posts and activities online is always encouraged – but it’s also wise to have a proactive social strategy that appeals to multiple donor segments and generations. For instance, outreach that grabs the attention of Millennials may or may not speak to Baby Boomers or Gen X’ers. Similarly, write your marketing materials with different platforms in mind: a blog post describing your nonprofit’s current fundraiser should also be shared widely across multiple platforms such as Facebook and LinkedIn.

Another useful tool for building donor engagement is crowdfunding – especially platforms that enable you to publish a campaign quickly and easily. IndieGogo, Tilt, Classy and 121Giving are all examples that are being used successfully by nonprofits in different categories. In 2014 alone, crowdfunding campaigns raised $10 billion worldwide, making them an invaluable approach for nonprofits with time-sensitive fundraising goals.

Most of these platforms allow nonprofits to create a branded online environment with a landing page for engaging with donors. By posting updates, videos and comments on this page, nonprofits can engage supporters as involved partners, asking them to help fulfill the organization’s mission – rather than treating them as bystanders who have little say in where their donation dollars are going.

If you decide to go down the crowdfunding path, appoint a dedicated manager within your organization to help guide these campaigns for success. Crowdfunding requires preparation, monitoring and follow-up to make the most of the opportunity – but the results can be well worth the effort.

Here are a few social tips for crowdfunding:

  • When you’re ready to kick off your campaign, create a hashtag for your fundraiser. This is a great way to aggregate tweets from multiple sources and to make it easy for donors and supporters to find vital information (e.g., where to donate).
  • Before running with that hashtag, though, make sure you’ve researched it to be sure it’s original and strikes the right tone. The last thing you want is something that’s out of context, contains slang, offensive or off-color material, or tags someone else’s content.
  • Developing a Twitter chat about the campaign can also increase awareness and engagement – and significantly grow your following.

  1. Recruit Social Ambassadors

One of the easiest ways to ensure a successful campaign is to recruit social ambassadors for your organization. For example, at 121Giving we created a Social Impact Boss program to encourage donors to share information about current fundraising campaigns on our website. Donors can sign up to receive email notifications when causes they support launch campaigns, along with regular updates.

Create tweets and Facebook posts about each campaign, and make them available to your organization’s members (and newsletter subscribers) so they can help socialize your cause. Identify all possible social ambassadors and appoint an eager volunteer as the group’s lead. Designating a social leader outside of your organization lets others take ownership and assume responsibility for helping your nonprofit reach its fundraising goals. Others want to help, and you don’t have do it alone!

Last But Not Least…

Social media is much more than a tool; it’s a necessary piece of your marketing strategy that offers a significant opportunity not only to increase donations through online channels, but to attract long-term sponsorship dollars.

Creating an online presence that targets key players, developing a social strategy, creating social ambassador programs and using social media to promote crowdfunding campaigns are all efforts that, if properly executed, can deliver outstanding results with significantly less resources than traditional fundraising models.

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