Thursday, September 04, 2008
Still worrying over the current economic situation and how it may affect your ministry? We understand the needs many people are facing so we have compiled some basic steps we would recommend that you look into to help sustain or even strengthen your fundraising.
1) Consider how you can use the latest technology to your benefit.
Online giving continues to increase in popularity. Want help on getting started in the online world? Check out our article New Fundraising Tool for Nonprofits
2) Look for ways to increase and improve your communication with donors
Donors give first and foremost because of a relationship. They continue to give because you keep and pursue after that relationship. For more ideas and resources on communication visit www.ephilanthropy.org
3) Find different sources for income
Auctions? Major donor program? Non-cash donations? There are so many options that you could look into. Meet with your board and other trusted advisors and talk about different ideas that would benefit your organization. For more information on the exciting and growing concept of non-cash donations, visit www.iDonate.com
4) Stories still hold incredible power
Stories touch hearts- this connects you on a personal front with your donors. It also shows your donors that their funds are being used wisely, strengthening that relationship.
5) Pursue after lapsed donors
Everyone says to lessen your requests for support so going after donors who haven’t given to your organization in awhile may seem like an even bigger “don’t”. However, this is not necessarily true. Look to recapture their interest. For more information on steps on regaining these donors, look over our blog post Recovery Letter for Lapsed Donors
Still have more questions? Want to know how Christian Foundation Grants can help get you started in the search for foundations to support you? Shoot us an email at info@christianfoundationgrants.com
--Jessica High is a Research Assistant at Christian Foundation Grants (www.christianfoundationgrants.com) which is subscription database of foundations that provide grants to faith based organizations. iDonate.com is a website (www.iDonate.com) that allows ministries to receive non cash gifts online.
The Internet has made donating to charity more convenient for donors and also has reduced nonprofit operating costs. However, one must be careful as there are risks associated with using a credit card online and there are scams appearing to be charities. The American Institute of Philanthropy (AIP) gives the following five tips for donating online.
Know the Nonprofit. Research the charity before giving to it. Look at their mission statement and their annual report. AIP says a nonprofit should not spend more than 40% of their income on administrative expenses. Also, at least 60% of your donation should directly support the cause. Finally, the charity’s website should clearly state the organization’s location and how you can contact them – both on and offline.
Make Sure the Donation is Secure. Whenever you use a credit card, verify the website’s security. Make sure there is an “https” in the address bar, as well as a padlock or an unbroken key at the bottom of the page. If the charity stores your information online, make certain they use current security measures to protect your information, or else request that the charity delete your information after the donation is processed.
Protect Your Privacy. Read the privacy statements before sending any personal information over the Internet. If the terms are hard to understand or you cannot agree to them, send your donation through the mail. Be watching for opt in or opt out choices on the online submission form. Usually, there will be a checkbox saying, “Yes, I would like to receive more information…” Checking this box will almost certainly lead to spam. Instead of marking this box, you should visit the charity’s website for updates on their ministry.
Give Directly. Do not donate through third party websites that give donations to hundreds of charities. Many of these donation sites will either take a percentage off the top or will keep your money for a little while in order to earn interest. You do not need to use these third party donation websites because most charities allow you to donate directly through their own website.
Print a Record of Your Donation. A confirmation screen or an email should appear once you have donated. Print this page for your records. If a confirmation does not appear, contact the charity immediately to ask if they have received your donation and then ask them for a receipt.
Protect yourself and the charities you support by following these five steps. For more information on donating to charity, visit the American Institute of Philanthropy at www.charitywatch.org.
Information taken from: Meg Massie. “Five Tips for Giving to Charity Online.” www.walletpop.com.
-- Ashley High is a Research Assistant at Christian Foundation Grants (www.christianfoundationgrants.com) which is a subscription database of foundations that provide grants to faith based organizations. iDonate.com is a website (www.iDonate.com) that allows ministries to receive non cash gifts online.
Friday, August 29, 2008
Many nonprofit websites lack one essential thing – information on staff and organizational employees. Employees are very diverse and vital part of the organization, but they are often neglected or relegated to a community that is separate from the donors, volunteers, and board members. However, employees must be engaged in order to build a strong nonprofit. Employees must become a part of the organization’s community.
Below are several ideas on how to make employees a part of the organization’s community”
Let the staff tell their stories. On the “Contact Us” page, do not let the staff members just be names, numbers, and email addresses. Allow employees to write about why they work for the nonprofit and what they enjoy in life. This will give donors a chance to connect with the employees.
Do not use stock employee pictures when there are real ones available. The happy, perfect employees in stock photos do not connect with their viewers. Use real pictures of the staff performing jobs that are important to the organization. Put these pictures in relevant places on the website. Donors want to see passionate individuals working for a cause.
Engage the staff as ambassadors. Create ways to allow staff members to speak about the organization. Feature these articles on the website. Encourage employees to share about their successes and best moments.
While the organization’s website should not be completely staff focused, it should still reflect the everyday community of the organization.
For more information on engaging employees, visit www.baileyworkplay.com.
Information taken from: Chris Bailey. “Bring Your Staff into Your Community.” www.connectioncafe.com.
-- Ashley High is a Research Assistant at Christian Foundation Grants (www.christianfoundationgrants.com) which is a subscription database of foundations that provide grants to faith based organizations. iDonate.com is a website (www.iDonate.com) that allows ministries to receive non cash gifts online.
Thursday, August 28, 2008
U.S. Senators Charles Schumer, a Democrat from New York, and Richard Burr, a Republican from North Carolina, have created a Senate Philanthropy Caucus to find ways to aid foundations and charities.
Late in July, these two men sent a letter to Congress members asking them to join the caucus to “support the long tradition of good works by the philanthropic and nonprofit sectors.” The letter goes on to applaud philanthropy for bettering American society through education, clean water, public health, public libraries, and by allowing towns to research and experiment with new ideas. The letter said, “The work done by private foundations, nonprofit groups, and individual philanthropists plays essential roles in each of our states and it is increasingly important for Members of Congress to be informed about developments in the philanthropic sector.”
The Council on Foundations has encouraged the House and the Senate to set up caucuses to discuss matters that affect nonprofit organizations.
Over a year ago, the House organized the Congressional Philanthropy Caucus with Robin Hayes, a Republican from North Carolina, and Stephanie Tubbs Jones, a Democrat from Ohio, as the chairpeople.
This caucus, which currently has 44 members, held one official meeting the in the spring when an official from the Council on Foundations held a session explaining how foundations work.
Hayes and Tubb Jones also sent letters asking House members to be involved in “District Days,” a project that encourages foundations to meet with members of Congress while they are in their home states during August break. More than 100 meetings have been scheduled thus far.
The Council hopes to arrange another briefing on foundations for both philanthropy caucuses sometime this fall.
Information taken from: Suzanne Perry. “U.S. Senate Creates Philanthropy Caucus.” The Chronicle of Philanthropy. http://philanthropy.com.
-- Ashley High is a Research Assistant at Christian Foundation Grants (www.christianfoundationgrants.com) which is a subscription database of foundations that provide grants to faith based organizations. iDonate.com is a website (www.iDonate.com) that allows ministries to receive non cash gifts online.
Friday, August 22, 2008
Worried about fundraising with all the economic predictions? Worried about losing donors? It is a crucial time to consider how to truly connect with your donors. However, you can set your worries aside. By simply taking a step back and evaluating the needs of your donors and working on acting on those things, you can successfully continue in your fundraising.
First, you need to understand why your donors contribute. As statistics and hundreds of interviews emphasize, donors contribute because of a relationship first and foremost. That relationship can grow deeper by continuing to pursue after the donors as people. Make your mission really stand out to them, not just words but by actions. This gives them a better picture of how their donation is helping.
So how do you go about doing those things? The easiest way to get started? Tell a story. Explain why you are fundraising, why your work is important, or how their donation will make a help. Statistics may be impressive, but knowing that you are genuine in your passion matters more to donors.
Want some more easy tips? Consider these things:
State a fundraising goal- We all love to see things accomplished, goals met. It provides a challenge for people to step up to. Donors want to see your success.
Use pictures- To go along with stories, this gives your donors a visual that they now can connect your ministry and heart with.
Thank your donors- To know that they are genuinely appreciated is important to your donors and to all people. Besides, it’s just common courtesy.
Use social media sites- If you aren’t already using some of the sites available, look into Facebook, MySpace, or Twitter. Use these to promote to your donors the latest happenings or post stories.
Set up a blog- The power of using a blog continues to increase. You can promote your ministry, link to your fundraising page, share your ministry’s latest pictures, and connect with various donors.
Information taken from Team First Giving Blog 8/20/08
--Jessica High is a Research Assistant at Christian Foundation Grants (www.christianfoundationgrants.com) which is subscription database of foundations that provide grants to faith based organizations. iDonate.com is a website (www.iDonate.com) that allows ministries to receive non cash gifts online.
Wednesday, August 20, 2008
Looking for more information on developing impactful giving? Inspired Philanthropy would be a great resource for you to pick up. It provides information on a wide range of topics from partnering with nonprofit leaders, questions to ask organizations, to building values that impact your giving.
Statistics are updated. Current happenings in the nonprofit world are discussed. More resources on youth and different areas are available. Worksheets and other resources are available on the CD that comes with the book.
This book is available on Amazon or local retailers.
--Jessica High is a Research Assistant at Christian Foundation Grants (www.christianfoundationgrants.com) which is subscription database of foundations that provide grants to faith based organizations. iDonate.com is a website (www.iDonate.com) that allows ministries to receive non cash gifts online.
Tuesday, August 12, 2008
A lapsed donor can be defined as a donor who has not made a contribution to your organization with in the last 1-3 years, while those who haven’t contributed in 3 years can be classified as former donors. There is value in pursuing lapsed donors because they are not unfamiliar with your organization’s mission – they cared enough about it to donate at one time, after all. Kent Dove, author of Conducting a Successful Fundraising Program, says that the typical rate of response from mailing to lapsed donors is 11%. As you are creating your appeal letter to recapture their attention (it’s known as a “recovery letter” in the fund development profession), there are a few keys to keep in mind:
· You probably do not know why any one donor has stopped giving. Possible causes include forgetfulness, loss of interest, distractions, or opposition to some aspect of your organization. The most likely way to rebuild a connection with lapsed donors, whatever their reasons may be, is to write to them in a personal, sincere way.
· The point that you want to make in your letter is that you miss the donor, not just their donation. The following are some possible wordings of this point:
-- “We have not heard from you since ________. We miss you! We are counting on your renewed support this year for . . .”
--“We miss you. We miss your moral support, and we miss your financial support.”
--“We sure have missed hearing from you these last few years.”
- Encourage the donor to renew their support by citing a specific project that you need help with. Get them engaged by offering a subscription to your free newsletter.
- If you can, make the letter customized to the individual. If you know that the donor gave at certain times of the year or supported a specific aspect of your work, include that in your letter. Appeal to their interests and let them know that they are more to you than a name.
- Statistics show that the longer the donor has lapsed, the less likely they are to come back. It could be helpful to section out your database into segments of 1-, 2-, and 3-year lapsed donors and send each group a different appeal, with language tailored to their lapse. With newly lapsed donors, the wording can be more relaxed, but with those who have not given for 2 or 3 years, your language should be markedly more forceful. Here are some examples:
1-year lapsed
“Your financial support in ____ made a difference. Your gift at the end of this year will have a positive impact on the people, which in turn will lead to better health, hope and confidence for humanity."
2-year lapsed
"Your financial support in recent years was a great help to us. Now I'd like you to renew your support by joining with me and the volunteers at . . ."
3-year lapsed
"We have not heard from you for quite sometime and yet your past support has made a difference for populations in danger. I think you can help us overcome this crisis."
· Some individuals will have been one-time donors, and some will have been faithful givers – you can’t address both groups the same way. Each donor needs a different letter with different language. If a donor was once faithful, they need a more individualized letter with a more personal ask amount. With one-time donors, you could request the specific amount they gave before. For a longtime donor, you could ask for the same amount as their smallest or average gift.
· Remind lapsed donors of your mission. Address any reasons you know of for their lapse. The most important thing is that you let the donor know that you miss them and that their support made a difference. Stanley Weinstein, author of The Complete Guide to Fundraising Management, sums it up this way: “A carefully crafted appeal that lets past donors know they are important, appreciated and missed almost always produces a net income."
Information taken from www.fundraising123.org
--Kelsey Luffman is a Research Assistant at Christian Foundation Grants (www.christianfoundationgrants.com) which is subscription database of foundations that provide grants to faith based organizations. iDonate.com is a website (www.iDonate.com) that allows ministries to receive non cash gifts online.
Monday, August 11, 2008
Although fundraisers tend to attribute their success to their techniques and methods, there are deeper motivations that also cause donors to give. In order to understand why people give and why Americans are so generous, one must look at the religious, psychological, marketing, historical, and cultural factors.
First, all of the world’s largest religions teach the importance of all living things on the earth and about the necessity of good deeds. The love of mankind, which all major religions promote, encourages philanthropy.
There are also other factors such as fear, elitism, guilt, anger, and greed. Below are twenty-four reasons that fundraiser Mal Warwick found motivate people to give:
1. Because you ask them to.
2. Because they have money available to give away.
3. Because they’re in the habit of giving away money.
4. Because they support organizations like yours.
5. Because their gifts will make a difference.
6. Because gifts will accomplish something right now.
7. Because you recognize them for their gifts.
8. Because you give them something tangible in return.
9. Because you enable them to “do something” about a critical problem - if only to protest or take a stand.
10. Because you give them a chance to associate with a famous or worthy person.
11. Because you allow them to get back at the corrupt or the unjust.
12. Because you give them the opportunity to “belong”- as a member, friend, or supporter -and thus you help them fight loneliness.
13. Because you enable them to offer their opinions.
14. Because you provide them with access to inside information.
15. Because you help them learn about a complex and interesting problem or issue.
16. Because you help them preserve their worldview, by validating cherished values and beliefs.
17. Because you allow them to gain personal connections with other individuals who are passionately involved in some meaningful dimension of life.
18. Because you give them the chance to release emotional tension caused by a life-threatening situation, a critical emergency, or an ethical dilemma.
19. Because they are afraid.
20. Because you allow them to relieve their guilt about an ethical, political, or personal transgression, whether real or imagined.
21. Because you give them tax benefits.
22. Because they feel it’s their duty.
23. Because they believe it’s a blessing to do so.
24. Because they want to “give something back”
Research on human needs by psychologist Abraham Maslow helps explain the psychology behind generosity. At the bottom of the hierarchy is the need for food and shelter. The next level up is the need for safety, followed by belonging, which is only possible if the more basic needs have been met. The last level is self-actualization, a place where emotionally developed adults understand their interdependence with the world around them.
The basic levels of Maslow’s hierarchy are concerned with personal needs. Philanthropy, the love for others, comes later. Some suggest that since America is the wealthiest nation on earth, philanthropy is easier since the population’s survival needs are met. However, a better explanation is given by Claire Gaudiana in her book, “The Greater Good.” She writes that Americans are generous because it is a cultural norm. Even Founding Father Benjamin Franklin encouraged philanthropy.
Mal Warwick points out that the following American cultural and historical factors have added to the growth of philanthropy in the United States:
· Our do-it-yourself, frontier mentality
· Our emphasis on community self-reliance
· Our deep distrust of government
· The widespread acceptance of religion in America
· Our consistent rejection of socialism and social democracy
· Our tax structure, which favors givers and giving
The do-it-yourself culture helps explain the 1.6 million non-profit organizations in the United States. The distrust of the government and the rejection of socialism leads Americans to want fewer social services from the government because they trust non-profits to assist them. The religious heritage of many Americans encourages charity, as studies have shown that religious people tend to be more generous. Finally, the American tax structure encourages philanthropy.
Almost anyone in the United States can be a donor. But in the end, Mal Warwick asks, "Even after our journey through the realms of religion, psychology, marketing, history, and culture, are we any closer to understanding why so many people are donors, and why they're so generous? Probably not."
Information taken from: Mal Warwick. "Why Are Americans So Generous?"
www.onphilanthropy.com
-- Ashley High is a Research Assistant at Christian Foundation Grants (www.christianfoundationgrants.com) which is a subscription database of foundations that provide grants to faith based organizations. iDonate.com is a website (www.iDonate.com) that allows ministries to receive non cash gifts online.
Thursday, August 07, 2008
There has been a lot of debate surrounding the new 990 changes and charities are anxious to understand these new forms. Many groups have released information and tips on how to comply with the new regulations. Now, the IRS will offer a preview of the new 990. By August 15th, the complete revised instructions will be posted on their website.
One of the major changes is a redefinition of “key employees”. This was one of the items that received the most criticism from various groups. To correct an overly broad definition of this term, the IRS has come up with a three-part test to determine key employees. This definition is important for the purpose of detailing executive compensation, transactions with charity insiders, and other items
There have also been complaints about the incredibly detailed reporting requirements. The new instructions “will lay out how charities can prove they have made a reasonable effort to obtain relevant information about the family and business relationships among their trustees, officers, and key employees,” says the Chronicle of Philanthropy.
Changes were also made to information that hospitals must fill out and the part of the form about tax-exempt bonds.
All these changes were the result of numerous reviews and comments after the release of the form’s instructions in April. An update from the IRS’s website says that, “the upcoming release of the amended instructions will be accompanied by background documents intended to explain the changes.”
We highly encourage nonprofit organizations to continue to follow the development of the new form 990. For more information on this situation, you can read our previous articles: Help With the New Form 990 and New Form 990
--Jessica High is a Research Assistant at Christian Foundation Grants (www.christianfoundationgrants.com) which is subscription database of foundations that provide grants to faith based organizations. iDonate.com is a website (www.iDonate.com) that allows ministries to receive non cash gifts online.
Wednesday, August 06, 2008
Steve Meyerson, a Washington fundraising consultant, asked a recent audience of fundraising professionals to think about how their non-profit would handle hard economic times “if [they] knew for a fact that there’d be no recovery until 2010.” That answer, he said, should dictate their non-profit’s planning now.
At this fundraising conference in Washington, Mr. Meyerson offered several fundraising tips for raising money during a recession:
- Tell donors how the non-profit changes its client’s lives. “Donors are not that interested in numbers,” he said. Donors want to know they are making a difference in the world.
- Be open. Donors will become even more cautious during a recession. The only way to handle that is by disclosing all the information to them – fundraising ratios, budgets, and other details that charities are often afraid to reveal.
- Have flexible options for donors making a gift. For example, let a donor fulfill his pledge over six years instead of five. Know that some donors will give smaller sums because they cannot afford to give as much. Offer donors other options.
- Take good care of donors. Many charities have trouble following up with donors to let them know how their donations are being used.
- Create extra warm appeals. Tell stories that will appeal to and move a broad audience. Ask the marketing department for help in constructing these human-interest stories.
The Washington conference Mr. Meyerson made his comments at was sponsored by the Direct Marketing Association of Washington and the Association of Fundraising Professionals’ Washington chapter.
Information taken from: Elizabeth Schwinn. “Tips for Raising Money in a Recession.” The Chronicle of Philanthropy. http://philanthropy.com.
--Ashley High is a Research Assistant at Christian Foundation Grants (www.christianfoundationgrants.com) which is subscription database of foundations that provide grants to faith based organizations. iDonate.com is a website (www.iDonate.com) that allows ministries to receive non cash gifts online.