You wouldn’t waste time trying to convince somebody they needed something if their heart just wasn’t in it. But too often, we ignore that logic when soliciting donors. While it’s impossible to know for sure who will give and who will dodge your attempts, you can make educated decisions about where to spend time.

According to Marc Pitman, founder of The Fundraising Authority, here is where you should focus your time with donors:

Planned Gifts

For planned giving, focus on loyal, small dollar donors who have given consistently over the years. Avoid getting distracted chasing people with the appearance of wealth. Stay focused on those loyal supporters.

Major Gifts

For major gifts, spend time with those who have both the capacity to give at a major level for your nonprofit, and evidence that they actually give at that level for other causes. Don’t waste time on those with capacity who don’t exercise it.

Unassuming Donors

Treat all donors with equal respect and appreciation. Major gifts sometimes come from small, dedicated givers that go under the radar. Wealth is about how much people save, not how much they spend.

Rely on Data

Avoid assumptions – do the work to find the hard data on giving history and capacity. Money doesn’t tell the whole story. Use metrics like Pitman’s CPI rating system to evaluate capacity, philanthropy, and interest.

Beyond where to allocate time, here are some key strategies for efficient fundraising:

1. Develop a Clear Fundraising Strategy:

• Set clear fundraising goals and objectives.
• Identify target donor segments (individuals, corporations, foundations, etc.).
• Determine the fundraising methods that best suit your organization (events, online campaigns, direct mail, etc.).
• Create a timeline and budget for your fundraising efforts.

2. Build Strong Relationships:

• Cultivate a genuine and personal relationship with donors. Make them feel valued and appreciated.
• Communicate regularly through personalized messages, updates, and thank-you notes.
• Tailor your interactions based on each donor’s preferences and interests.

3. Segment Donors:

• Categorize donors based on their giving history, interests, and engagement level.
• Prioritize major donors and those with a higher potential to contribute significantly.

4. Use Data and Analytics:

• Utilize donor management software to track interactions, contributions, and preferences.
• Analyze data to identify trends and adjust your fundraising strategies accordingly.
• Use data to personalize communication and tailor fundraising appeals.

5. Plan Effective Fundraising Events:

• Organize events that resonate with your donors and align with your organization’s mission.
• Leverage events to create opportunities for donor engagement and connection.

6. Leverage Online Platforms:

• Utilize social media, crowdfunding platforms, and your organization’s website for online fundraising.
• Create compelling online campaigns with clear calls to action.

7. Showcase Impact:

• Clearly communicate how donors’ contributions are making a difference.
• Share success stories, case studies, and data illustrating the impact of their support.

8. Provide Multiple Giving Options:

• Offer various giving levels and options to accommodate different donor capacities.
• Provide recurring donation options for consistent support.

9. Respect Donors’ Time:

• Be mindful of donors’ time constraints and commitments.
• Schedule meetings or interactions at their convenience.
• Keep communication concise and focused.

10. Automate and Delegate:

• Use automation tools for routine communication, such as thank-you emails and updates.
• Delegate tasks within your team to ensure efficient donor management.

11. Continuously Evaluate and Adjust:

• Regularly assess the effectiveness of your how to fundraise strategies.
• Adapt your approach based on donor feedback, changing trends, and results.

12. Invest in Stewardship:

• Allocate time and resources to stewardship efforts, including donor recognition and engagement initiatives.

Remember that successful how to fundraise and donor relationship management require ongoing effort and dedication. By implementing these strategies and continuously refining your approach, you can how to fundraise effectively and optimize your time allocation with donors.

With ongoing effort and refinement, you can optimize your fundraising strategy and time spent with each donor.

This article was originally published in the Nonprofit Hub Magazine.

Updated: August 2023

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If ethics were cut and dry, there wouldn’t be ethical dilemmas; we wouldn’t have to use our moral compasses. Unfortunately, life is a little more complicated than that. In the nonprofit sector in particular, there are various ethical and moral dilemmas that could creep in and bog down your goal to do more good.

At the AFP Mid-America Conference on Fundraising, Robbe Healey spoke to seven ethical dilemmas nonprofits will face. Healey is a member of the Association of Fundraising Professionals Ethics Committee, Vice President for Philanthropy for Simpson Senior Services and Founding Member of Aurora Philanthropic Consulting. Healey has worked in philanthropic fundraising and nonprofit management for more than 35 years.

The number one reason donors said they don’t give is because they don’t trust the sector. Choosing the right path could help change that perception. Let’s take back the trust that good organizations deserve by brushing up on the top ethical dilemmas facing the sector.

1. Tainted Money

A nonprofit can’t turn away money, right? After all, any gift helps you get one step closer to your mission. But the truth is that not all gifts are created equal. It’s a difficult situation when somebody is trying to offer money that may have a conflict of interest.

For example, you wouldn’t accept money that has been stolen or embezzled. You might think twice before accepting money if it were coming from somebody who goes against everything your mission stands for. Always consider where the money is coming from and whether there would be a conflict of interest because of your mission.

2. Compensation

Never, and we mean never, connect the amount of funds raised to compensation. The motivation for fundraisers should be to help further the mission, not to make more money. Instead, the focus should be on building and nurturing relationships with current and prospective donors. Don’t make personal gain the driving force.

3. Privacy

Privacy is important. Only keep the information that is necessary for your donors. Never get more than you need or use it for anything other than what you told donors you’d use it for. Be especially mindful of lists that you collect for email marketing pieces and more. Make sure the opt-in option is clear and that unsubscribe options are accessible. A small number of unsubscribers won’t hurt as much as mistrust from your entire audience.

Furthermore, make sure your information is stored safely and securely. If your nonprofit uses the Google Suite, make sure personal and sensitive information is housed somewhere else. Having an understanding of basic cybersecurity best practices will help you avoid potential dilemmas.

4. Appearance of Impropriety

Sure, it’s not illegal; but that doesn’t make it right. There are various activities you’ll need to be aware of that could come across to your constituents as shady even if they aren’t considered illegal. For example, AFP lists the example of a fundraiser directly benefiting from a benefactor’s estate gift. While not illegal, the sector would look down upon ethical dilemmas like this type of behavior. Be wary of certain situations that might be perceived in the wrong way.

5. Stewardship

Donors want to know that you’re using the funds for what you said you’d use them for. Don’t promise donors one thing and then turn around and use the funds for something else. If you must change the usage of your funds, check with the donor first and abide by their wishes. Sometimes donors have certain requests for estate gifts following their passing, in which case it’s critical to use the gift appropriately. When you do what you say, your supporters will appreciate the honesty and be more likely to continue giving.

6. Honesty

Remember what you learned as a kid—honesty involves telling the whole truth. That means leaving out specific details will inevitably blow up in your face (we’ve all been there). Tell the whole truth to your staff, donors and constituents, and nothing but the truth. Honesty goes a long way.

7. Conflicts of Interest

A conflict of interest could arise from multiple aspects of your organization. It could involve financials or the interests of members on your board. Be aware of situations where someone has more at stake than the best intentions of the organization. Do what you can to avoid conflicts of interest and maintain a credible reputation for your organization.

Remember, ethics require always listening to your moral compass; not just when it’s convenient for your organization. Not all ethical dilemmas will be apparent and some will be harder than ever. If you have ethical dilemmas you aren’t sure how to handle, seek outside guidance from somebody who can give an unbiased opinion. Also, check out the Code of Ethical Standards from AFP.

*Originally published May 2016

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That’s the way many nonprofits think, but it’s not necessarily true.

The secret is this: you shouldn’t feel bad about spending money. Well, unless you’re buying yachts and sports cars with money that should go toward your mission, but that shouldn’t have to be said. Should it? Don’t do that.

At Cause Camp a couple years ago, Vu Le made a bold statement about crappy chairs (yes, you read that right). Are you really doing anybody a service by sitting in a crappy chair? Spend the money on a chair so that you’re comfortable while trying to save the world. Makes sense, right?

“We cannot be sitting on crappy chairs while we are helping the world,” Le said. “It’s counterproductive. We need to stop this scrappiness mentality that we have. We have this martyr complex where we have to be saving and we have to be suffering as much as our clients are. It does not work.”

Although you shouldn’t have to be scrappy in every aspect, you can make sure that you’re being cost efficient where it matters.

Necessity vs. want

It comes down to determining the difference between necessity and want. Just because your nonprofit would like a state-of-the-art facility with all new technology and the works doesn’t mean it’s possible from the get-go. I wholeheartedly agree with Vu—spend money on your chair. But maybe not one of these chairs.

Make sure your technology is good enough so that you can do your job to your best potential, but that doesn’t mean everyone in the office should have three screens.

Educate people with purchasing power

People who have purchasing power in your organization shouldn’t be left to wonder what they can and can’t spend money on. If your staff is scratching their heads and constantly asking for approval before purchasing anything, you need to reevaluate your training procedures. Staff members that need to make purchases should know their limitations.

Overhead shouldn’t rule

When it comes to overhead, you shouldn’t have to spend your time minimizing costs to save face with donors. We’ve talked at length about the overhead myth and how it paralyzes nonprofit organizations from feeling like they can’t spend money. Set yourself free. Help by demonstrating the necessity of your purchases and being transparent with your donors.

In short, when it comes to being fiscally responsible at your organization, it varies based on the budget of your organization and what you’re willing to spend. If you aren’t sure about your organization’s budget or when it’s okay to spend, simply ask for some parameters.

Originally posted 9.28.15 — Updated 7.20.18

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This concept is true for real houses and card houses alike. Plus, in the grand scheme of your nonprofit’s structure, let’s just say the people you rely on most need to be rock-solid. You wouldn’t want the winds of nonprofit turmoil to huff and puff and blow your house down.

At the forefront of your structure are the leaders of your organization. Strong leadership will have the personality and characteristics to invoke and ensure a lifelong pursuit of doing more good.

Let’s take a look at some of the characteristics a strong leadership team will possess. See if your leadership team is stacking up or if it’s time to invoke some change.

Personal Characteristics

Eric Douglas, Executive Strategist for Leading Resources, Inc. recently outlined four personal qualities necessary to be a successful leader on LinkedIn.

Douglas’s mentioned traits pertained to Franklin Roosevelt, but can be translated to any great leader. The specific traits Douglas outlined included:

1. Honor
   Following moral and ethical codes creating earned trust among peers. This is especially important in a sector built off of doing the right thing.
2. Heart
   Having a passion for the task at hand. This shouldn’t be difficult to find in the nonprofit sector.
3. Humility
   Putting aside your own ego to build the best possible culture of your organization.
4. Humor
   Rolling with the punches and seeing the humor in life’s challenges. Trust me, there’s plenty of humor to be found if you look for it.

These four building blocks are a great starting point of what your leaders should possess. Let’s dive in even further to explore leadership skills that will help your organization in the quest to achieve your mission.

Somebody Who Isn’t Afraid of Change

A fearless leader is also fearless with change. A fearless leader is open to new ideas but supportive of the tactics that they’ve elected to keep in place. Change is the only way to make a difference. Think about it – if you constantly stay the same, your results will stay the same. That doesn’t mean you always have to make huge changes, but sometimes those big changes are necessary. Stay curious and constantly challenge if you can be doing something in a more productive way.

Somebody Who Puts the Organization First

It’s one thing to think about what’s best for you. “Seemingly good” (but mostly fake) leaders can make it seem like they’re doing what’s best for the organization as a whole while still keeping their own motives in mind. Don’t be fooled by those types of “leaders.”

Great leaders are selfless. They would do anything to make sure their organization’s future comes first. Keep in mind, that doesn’t always mean what’s best for the short team. It involves thinking about the longevity of the organization. Great leaders don’t think about themselves, they always have the mission in the back of their mind.

Somebody Who Knows Their Stuff (or Can Figure it Out)

This is perhaps the most obvious thing to look for in leadership. However, we listed it last for a reason. Yes, knowledge is one of the most important aspects of great leadership. You wouldn’t want somebody who isn’t qualified running the show.

Keep in mind that knowledge alone is not enough to lead. You’ve got to have the charisma to inspire and the personal skills to invoke major gifts. Knowing how to do something and being able to be a leader are two different things.

Let’s say you have two candidates. One knows the organization like the back of their hand, but everybody in the organization despises that person because they don’t know how to communicate with peers. The other has a passion for the mission, is not as-qualified but still meets the minimum job qualifications and has the leadership experience to figure out what they need to learn. I’d go with the second candidate on any day, and make sure to incorporate the knowledge of the first candidate at a higher position while cultivating the skills of working with peers.

Remember that it’s not always what’s on paper that matters as a leader.

_____________________

If these descriptions sound like your leadership team, don’t forget to go out of your way and thank them for a job well done. It’s not easy being tasked to lead a nonprofit. We’ve been blown away by the countless individuals that are making the world a better place, whether we’ve interacted online or in person.

Added Bonus: Retreat! Retreat!

Sometimes the best way to dissect your current leadership and how to make your tactics better is to take a little retreat. Get out of your normal work space and go somewhere with a change of scenery. You’d be surprised at the creativity that can flow from new surroundings.
Write down everything you feel the organization has been doing right and everything you want to do better. Even getting it out on paper will make a world of difference.

The post How to Hold the Keys to Strong Nonprofit Leadership (And Use Them!) appeared first on Nonprofit Hub.

I can already hear the resounding sigh and mutters of, “forever on a budget.” Trust me, I get it.  Money will never not be tight when you’re in the nonprofit sector. Maybe someday though… a girl can dream, right?

Luckily for you, until we’re all swimming in the dough, Nonprofit Hub has some ideas on the best way to invest your marketing and donor communications dollars. Come with us on a journey to understand how your organization can figure out the best method for investing that hard-earned money.

Donor Communications vs. Marketing Communications

First of all, how do donor communications and marketing communications differ and how are they similar? The donor communications include any communication where you’re getting the people who are already invested in your organization to be even more invested. You want to keep all of your donors in the loop with how you’re spending the money they donated and general changes at your organization.

Marketing communications, on the other hand, serve to convince people who aren’t already on board to get on board with your organization.

But most likely, you’ll be reaching out to them using the same types of promotional and marketing pieces and the same platforms. Think direct mail, email marketing, word of mouth, etc. That’s why we’re talking about the two communication channels in the same vein. Simply remember that the content and delivery style can differ.

5 Steps to Determine a Good Communication Investment

Step One: Establish the “What”

Luckily for nonprofit organizations, the “why” is the simple part. You’ve already established the mission and you know why you’re working toward your goal. However, in this case we’re talking about what you want to achieve. What is the end goal? Pick a measurable goal such as a specific percentage of fundraising dollar increase or a specific volunteer retention rate for the year. Goals should always have a measurable so that you can track progress. What is it that you want your marketing or donor communication piece to achieve?

Step Two: Pick Your Priorities

What type of marketing ventures would your money be best spent on this year or even this month? Different organizations will have money delegated in different ways. Some have a budget for each month and flex depending on the type of marketing needs are present at the time. Others have an overarching budget for the year.

Consider some of the biggest ventures you’ll have throughout the year and how much those ventures have cost your organization in the past. Brainstorm the aspects of those ventures that you can live without, or that you can change.

Maybe it’s a huge priority this year to print attractive flyers to hand out at your events. Or, maybe it’s important that you try to attract an entirely new crowd through a creative direct mail campaign.

Step Three: Evaluate What You Have To Offer

If there’s one thing I’ve learned in the nonprofit world, it’s that our staff members and volunteers come with all different skill sets and backgrounds. I’m continually surprised when I hear the past-life or the side-hobby of one of our staff members. Come up with a list of tasks that you’ll need to have done for any given marketing piece, down to every last detail. Put names next to the tasks you can handle and stars next to the things you’ll need to outsource.

Step Four: Think Thrifty

If you operate on a smaller budget, we don’t need to tell you to be smart about your money. You know better than anyone, operating with fewer resources is a huge challenge, but that doesn’t need to mean less quality of work. Allocate your dollars where it benefits your mission and save where you can, but don’t skimp on the important details just because of a price tag.

Step Five: Seek Experts

Some marketing ventures deserve to be left to the professionals and there’s a specific key to knowing when this is possible. There are certain marketing aspects were you can’t “fake it ‘til you make it.” Always ask yourself, “does this marketing piece make me want to donate?” Insert whatever end goal you have. If it doesn’t, figure out a way. You might need to seek outside help at this point.

You need the marketing campaign to provide a return on your investment. When will investing your organization’s money into a marketing venture be worth it? When you’re raking in more fundraising dollars than the amount you put into your marketing efforts. Return on Investment is determined as a percentage.

                                      Money made from marketing/donor communication – cost spent

Return on Investment = ————————————————————————————

                                                          Cost spent on marketing/donor communication

Technically, any percentage of return is good. However, it’s up to your organization to determine if the effort is worth the amount of return you receive.

Inventive Ways for DIY Marketing

As promised, we understand the need for marketing ventures you can do in-house with what you have. Here are a few suggestions to get the ball rolling.

• Invest in the Talent You Have
  Don’t pat your lead volunteer on the head and tell them you’ll leave marketing to the professionals when they tell you they were the marketing chair of their sorority or the likes. Maybe that person doesn’t know how design works from start to finish, but they could have a general understanding of marketing and be able to contribute what they did learn. That individual might know how to make minuscule design edits to your marketing piece so that you don’t have to send it all the way back to the original creator.
  
  In the words of Theodore Roosevelt, “Do what you can, with what you have, where you are.”

• Learn a New Talent
  Yes, there are certain things left better to professionals. But you can constantly attend events, seminars or webinars to learn more about how you can be doing these things yourself. Have you checked out our list of completely free Hubinars? nonprofithub.org/hubinars
  
  There’s a concept pitched by Seth Godin about making yourself a linchpin. The simplest version of that means you make yourself indispensable. This isn’t just business talk. Learn a new talent to make yourself indispensable for an organization. There’s a ton of free training to make yourself better in every aspect, so what are you waiting for?

• Find the Good in Donors
  Your current donors have already established that they’re feelin’ the love from your organization. Keep in mind that most of them aren’t working for you full-time—they have day jobs and other hobbies. If you can make super believers out of your constituents, they’ll be happy to help out in any area they can.
  
  Maybe one of your constituents is a marketer for their day job and they love your organization so much they’re willing to help. Don’t be afraid to ask. The worst that can happen? They say no. I can almost guarantee that your most loyal donors will be willing to help out with whatever they can. Maybe that even means a specifically targeted donation for a specific marketing campaign.

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Since it’s on the horizon, we’ll use Memorial Day as an example. However, you can apply the same concept to any holiday. With a little creativity, you can think up ways to launch a fundraising campaign around any occasion. Here’s how.

Why Online Donations Are Great During Holidays

• People have time off to devote to what they love (we’re talking about your organization here!)
• There’s an increased mood for giving around holidays (most notably winter holidays of goodwill, but can also be increased giving during any holidays)
• People are around their family and friends, catching up on new developments or interests. If you take the proper marketing techniques during the holidays, you could be on the forefront of their minds as they gab about what’s new in their lives. The holidays have easy sharing power.

So, how do you get started?

1. What’s the holiday’s purpose? Ask yourself, what’s the main reason for the holiday? Then, how can you tie your mission into whatever’s going on? Sometimes you may not be able to find a correlation between your organization and the meaning of the holiday, but you could still play off of traditions to connect.

Example: Memorial Day was created to remember those who have lost their lives serving in the armed forces. If your nonprofit works with Veterans or somehow ties into the military, this holiday was made for you.

Have a Memorial Day parade? Perfect. Join in and hand out stickers, magnets or pens that direct people to your organization’s website. If the site is designed correctly, they’ll be driven directly to a page that allows them to donate.

If you don’t have a correlation with the military or memorial day in any way, there are still ways to put your online giving into motion. Go to plan B. What else does Memorial Day signal? For many, it’s the unofficial start to summer and a time to enjoy outdoor barbecues or picnics. Voila, you’ve found an angle that any organization can use, and everyone can relate to.

2. And now for the fun and creative part of online giving. Create a campaign. It could be a simple picture and slogan, it could be a particular story that you want to highlight or anything few and far between. Get creative here, and make sure to tie in the theme.

Example: Since my organization doesn’t have a direct correlation with Memorial Day, I’m going to try to relate to the unofficial start of summer. Let’s say my organization is an animal shelter. We’re going to use pictures of our animals who need adopted with the words, “Grilling out this Memorial Day? Is something missing from your backyard barbecue? As summer kicks off, more pets than ever need shelter just like Buddy the dog. Read more of his story by visiting our website XXXXX.”

I know what you’re thinking. “But Lyndsey, you didn’t even ask for a donation!” True, but we did get their attention with a cute photo of Buddy the dog and asked them to check out our site to read more about him. Once again, it’s all about getting people to your website and seeing that donate button. Give them a reason to donate, don’t just ask.

3. Now, it’s time to spread the word. You need to plant the seed in order for online donations to grow. In other words, it’s time to create the buzz. You could do this through multiple channels.

Example: My campaign with Buddy the dog can be utilized in multiple online channels. I can send out the story and pictures in my newsletter to peak Memorial Day interest, I can make posts via social media, I could have volunteers help spread the word and much more. Do anything and everything to create a buzz around your campaign.

4. Remember that consistency is key. Simply throwing up a campaign at the last minute before the holiday won’t give your organization effective results. Like all good things, planning is key. Consider an editorial calendar to plan for each holiday and how you’ll get the word out.

Example: I will make sure to follow up with any questions, comments or posts about my campaign on social media. Also, I will make sure to do more than just send out one email campaign close to the date. I will plan ahead.

5. Make it private. No matter what time of year the online giving occurs, people want to know that their information is protected and secure. If constituents can’t find the proper authentication, they won’t donate.

Example: For the Memorial Day campaign, our organization will make sure to highlight the privacy policy when giving online donations. It will be front and center when people go to our site to click ‘Donate’ so that no donors will be turned away.

Also, I will make sure that my organization is verified through a site like Guidestar.

Now, you’re ready to get out there and start creating. Remember that each holiday brings an opportunity for your organization to increase online donations. 

The post How to Boost Online Donations with Any Holiday appeared first on Nonprofit Hub.

1. Allocate Resources Wisely

Sometimes, the risk is worth the reward. When you think about resources that your nonprofit needs, I challenge you to think about what will have the best return on investment.

“For your organization, return on investment refers to how much you’re helping your cause for what you’re putting into it.”

For a business, return on investment refers directly to their profits. For your organization, return on investment refers to how much you’re helping your cause for what you’re putting into it. Maybe something feels like it’s a lot of money, but it might directly impact your cause so much that it’s worth it. While for nonprofits it’s not always cut and dry, ROI is something to think about.

2. Productivity Hacks

When you’re feeling like there isn’t enough time in the day to get everything done, it’s time to simplify. Check out these productivity sites that can help streamline your communication and processes.

If you’re really feeling strapped for time, set boundaries for yourself. Only allow yourself an allotted time for certain tasks, then move on no matter what. Learn to prioritize what needs to be done.

3. Roll with the Punches

Quite simply, sometimes events are out of your control. The sector is changing constantly and maybe your cause is, too. Make sure to set aside time to reevaluate. Have vision meetings where your board or top execs can think about the future of your organization. If you’re not looking proactively towards the future, nobody will be. That’s a dangerous slope to go down.

“If you’re not looking proactively towards the future, nobody will be.”

4. Hire (or Recruit) Strategically

There’s this saying that I’ve always loved that goes,

“If you want to go fast, go alone. If you want to go far, go together.”

In a world that’s hell-bent on getting to the top alone, stop to embrace the people around you who are also working toward the same cause. Hire people who have multiple talents and attributes they can give to your organization. Where some lack, others are plentiful and vice versa. We all have special talents, we just need to work together for the common good. Don’t be afraid to delegate to volunteers who are willing to help. If you have trustworthy volunteers, put them to use.

__________________

By identifying the reasons we’re failing as a sector at follow-through and being cognizant of how to combat those issues, we’re giving a fighting chance to completely transforming the sector for the better. It only takes a few small steps, and then a few more to start adding up to big change. By wisely delegating your organization’s resources to the right places and taking the time to finish your tasks, you could improve fundraising, donor retention and so many more aspects or your organization.

Sound off in the comment section below — how will your organization improve the follow-through?

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