Steven, Author at The Better Fundraising Company

Almsgiving

Steven | December 26, 2023December 15, 2023Year-End

Today is Boxing Day, and also St. Stephen’s Day.

It’s traditionally a day of generosity:

In the Boxing Day tradition, in Britain, tradespeople received gifts from their employers.
For the Feast of St. Stephen, alms boxes in churches were opened and distributed to the poor.

In western culture, this time of the year is still a time of alms-giving: money is pouring in to nonprofits, and the biggest week of online giving of the year is just starting.

Almsgiving is known to foster a sense of community, empathy, and social responsibility. Perhaps that’s why many people feel just a little bit better during the holidays.

Yes, this week is also full of sales and conspicuous consumption. But it’s good to remember we Fundraisers are a part of a tradition with deep historical, religious, and cultural roots.

Remember those traditions this week. They drive this wave of giving; we just get to surf it.

Enjoy the week, and may your lockboxes and inboxes be full of gifts!

Helpful Assumptions for 2024

Steven | December 21, 2023December 15, 2023Repeat

Let’s make some assumptions about your fundraising in 2024…

You can assume that your donors could be giving you more.

You can assume that not every donor opens up every piece of communication you send.

You can assume that your communications don’t arrive perfectly timed with when your donors feel like giving gifts.

You can assume that your donors are adults and they can handle a little more fundraising from you.

All reasonable assumptions.

Now, if you assumed all of those things, what would you do?

You’d send more fundraising than you did in 2023. And you’d raise more money.

Almost Done, My Friends

Steven | December 19, 2023December 15, 2023Year-End

This is just a note of encouragement that you’re almost done with year-end fundraising.

All the sweat, and stress, and extra hours… they are almost over.

And they were worth it.

You created fundraising that inspired and encouraged your donors to give gifts. They did so joyfully. Your beneficiaries will be helped, your donors will feel more connected.

You didn’t manipulate anybody, you didn’t twist anybody’s arm.

Every gift that came in was an act of generosity. Some of them were acts of sacrifice.

And they all happened because you created and sent out your fundraising.

Well done, and good luck the next couple of weeks!

Fundraising to Individual Donors at Its Simplest

Steven | December 14, 2023December 13, 2023Repeat

In our experience, effective fundraising to individual donors comes down to two things:

#1 — Sharing why the work of your organization is needed. What is it that’s going on in the world today that needs to be fixed? Who is hurting that needs help? What could we be doing better if only there were more support?

Share this and donors remember why your work is so important.

#2 — Sharing with donors the impact of their previous giving. What change did the donor help make? What’s better now because of their giving?

Do this and donors feel like their gift to your organization made a difference.

When an E.D. wonders why the fundraising isn’t working so well, the first thing to do is look to see whether the fundraising comms are effectively communicating these two ideas.

When a fundraising plan or fundraising communications are not working well, it’s usually because these two ideas have been crowded out by information about the organization itself.

But if you build your communications plan to share these ideas, multiple times per year, you’ll raise more money than you would ever expect.

The success of the simplicity will astound you.

Looks Like There’s One More Step

Steven | December 12, 2023December 12, 2023Ask

Something happened to me pretty much as soon as we hit “publish” on last Tuesday’s post about “the 3 steps to using measurement to make you a better fundraiser.”

I was deluged with memories of people telling me that they’ve done all three steps and were now raising significantly more money… but somebody in the organization was requiring them to “change it back to the way it used to be” because the new way made them uncomfortable.

I even have a friend who two weeks ago was told, “I know we’re raising more money than we ever have, but as of today you need to go back to the way we used to do things.” (To add insult to injury, they were also told that a) they couldn’t send out the year-end appeal they’d prepared, and b) they were going to have to send out less fundraising next year.)

So it’s pretty clear that just the three steps I advocated for aren’t enough.

Here’s the 4^th step…

#4 – Trust That There’s No ‘Catch’

Maybe better said, “trust that the increased money coming in is not going to be followed by some ‘gotcha!’ in the future.”

Because here’s the thing – there’s no catch.

If the following three things are true:

The information in your fundraising is true,
You have consent to tell your beneficiaries’ stories,
You’re Asking, Thanking and Reporting during the year…

…then there are no hidden fees, no submerged rocks, no cliffs, no balloon payments. No mysterious “gotcha’s” are going to come due.

If you’ve developed new messaging that is driving more giving, it’s because you’re tapping into what motivates your donors better than you did in the past. Trust that the fundraising data (response rates, net revenue, average gift size, etc.) that led you to the new messaging will continue to lead your organization to greater and greater impact.

A Procrastinator’s Guide to Year-End Fundraising

Steven | December 7, 2023December 6, 2023Year-End

Just getting started with your year-end fundraising?

Here’s a quick list – my best tips – for what to do with your remaining weeks before the end of the year.

Make a Plan to Start Earlier Next year

First, the hard news: if you’re just starting now, you’ve left money on the table. You could have raised more.

That is a harsh truth. Many people won’t like to hear it. But it’s true. And for the moment, don’t worry about it. But right now, go set a calendar reminder to start earlier next year.

Seriously, set a reminder.

I’ll wait.

It’s that important.

The organizations that start their year-end fundraising earlier tend to raise more money.

What to Do Now

Do as many of the following things if you can. And here’s the order I’d prioritize them in:

Identify and contact your major donors who have not yet given a gift this year.

Don’t do what most nonprofits do, which is hope that their majors give a gift before the end of the year.

If you haven’t already, identify exactly which of your major donors have not given gifts. Then reach out to each of them to ask for a special year-end gift to help your beneficiaries (not to help your organization). Do it in person if you can; phone is the next best way. Tell them their gift is needed now, and tell them their gift will make a difference!

Write and send your year-end letter.

Send out a direct letter that powerfully asks donors to give a special gift before the end of the year. Tell them their gift is needed now, and tell them their gift will make a difference!

If you use a mail house and it’s going to take too long to get a letter produced, here’s what to do:

Figure out how many letters you could print and send using your in-house process.
Start sending those letters to your top donors, starting at the top of your file and working down.

Write and prep your year-end emails.

Be sure to have at least three emails prepped for the last three days of the year. Remember that you do not have to reinvent the wheel: the emails should be VERY similar to your letter, and the emails should be very similar to each other. Repetition is the most effective tool you didn’t know you have!

Tell them their gift is needed now, and tell them their gift will make a difference!

Update your website to ask for a year-end gift.

Make an update so that the first thing users see on your home page is a clear call-to-action and a large “donate” button.

And… wait for it… tell them their gift is needed now, and tell them their gift will make a difference. You will raise more money than you expect.

That’s it! Do as many of those as you can, starting from the top of the list.

Do a great job on each one before doing anything else.

And if you can only do three things, do the top three. If you can only do two, do the top two. You get it.

Remember: year-end is the easiest time of the year to raise more money than you expect!

Three Easy-to-Understand (but Hard-to-Do) Steps to Better Fundraising

Steven | December 5, 2023November 30, 2023Repeat

This post is meant to be a primer for how to use measurement to improve your fundraising.

The concepts are easy to understand, but it’s real work for smaller nonprofits to install the systems and track the results.

I’m sharing this because, at the beginning of the fundraising journey for a Fundraiser or nonprofit, these things are non-obvious. When you’re starting off in fundraising, it can feel like a situation where you “send a few things out and see which way the wind blows this year!”

But the more you know, the more you realize this fundraising life is a deeply-understood system.

OK. There are three main stages to this…

# 1 – Measure the Metrics

You want to measure the performance of each piece of fundraising you send out. This means tracking metrics like: gross revenue, net revenue, percent response, ROI, click-through rates, conversion rates, etc.

That list is not meant to be exhaustive. The idea is that there are standard metrics for email, direct mail, major donor proposals, radiothons, etc., and you want to figure out and track the standard metrics for the types of fundraising you do.

Organize your results. (We offer a free spreadsheet to help you get started.) You’ll quickly see that some fundraising activities are more effective than others.

#2 – Measure the Results Annually

If you think of each year’s-worth of fundraising as an experiment, you want to know the results of each year’s experiment.

Your results can be measured with metrics like: donor retention rate (overall and by segment), revenue retention rate, the “cost to raise $1” for each of your primary income streams, your total net revenue available for programs, etc.

Organize your results so you can see year-over-year trends.

#3 – Learn the Levers

The next step feels like magic: you look at the info from the first two steps and quickly notice which fundraising activities make the biggest difference.

You see things like, “When we do more of X, less money comes in.” Or, “When we do less Y, we keep more of our donors.”

Let me give you two real-life examples (both of which I’ve seen many times). I’ll share what the organization noticed when they looked at their results, and then what they found when they looked back at their year:

An organization noticed that they had raised about the same amount over the course of the year with what felt like less effort. The looked back and noticed that they had cancelled their e-news early in the year. Previously, they believed their e-news was a necessary part of their fundraising activities. Today they’ve realized that the time they were spending on their e-news could be better spent in other areas.
An organization was pleased to find that they had raised more year-over-year, and that their donor retention rate had increased from 55% to 60%. They looked back and saw that they had sent two more appeal letters, and four more e-appeals, than they’d sent in previous years. The organization realized they could be asking their donors to help more often, and that doing so would have a positive effect on their fundraising.

Once you track your fundraising activities, and review the effects of them each year, you see what works and what doesn’t. Do that for a lot of nonprofits, for a lot of years, and you build a depth of knowledge about what levers work best in different situations.

I realize it’s tough for people at the beginning of their fundraising journey to know what to do, let alone actually find the time to do all of it.

That’s exactly why this blog exists. We’re trying to share everything we’ve learned over the years about which levers to pull, and which levers to stop pulling, so that your fundraising journey is a little faster and a little smoother.

(Fun Fact: the original name for Better Fundraising was “Better Fundraising For All.” That’s because we believe that all of this information should be shared with all the small- and medium-sized nonprofits who can’t afford a big agency, instead of being kept as part of some “secret sauce.”)

For today, figure out which of these three steps your organization should be working on. And figure out the next actionable step you could take. Now, we’re all in the middle of year-end fundraising at the moment, so you might not get to it in the next couple of weeks. But write it down and set aside some time in your calendar to make it part of your plan for 2024.

Take just a few steps forward, and you’ll be surprised at how much more effective you’ll become.

The Antidote to Fundraising Fear Is…

Steven | November 30, 2023November 29, 2023Thank

So it turns out that the antidote to fundraising fear is a Swedish custom called “fika.”

Fika is pronounced “fee-kuh,” and it’s a custom of people getting together to have coffee and treats together.

One of our customers practices fika each day, and here’s their genius move: while they are together, they open the mail and have an intentional, shared moment of gratitude for each gift.

I love it. And, finding this out helped explain something I’d already noticed about this organization: the incredible grace and equanimity with which they handle complaints and pushback on their fundraising.

Now, fika and responding to complaints might not seem related, but they absolutely are…

Emotional Balance Sheet

You see, nonprofits tend not to emotionally acknowledge the generosity behind each gift that they receive.

Usually this happens for two reasons:

The sheer volume of gifts makes it easier to think about each day’s gifts as “revenue” instead of individual acts of generosity and sacrifice.
The people who receive and process the gifts are often different from the people who send out the fundraising. So the Fundraisers only experience the response to their work as a number on a spreadsheet.

For many people in nonprofits and in Fundraising, even if the balance sheet fills up, there’s little emotional experience of the gifts. The emotional balance sheet remains unfilled.

So when a complaint comes in, the organization is knocked sideways by the emotion. Suddenly they are dealing with a human with a complaint, not just “revenue” or a percentage point in the response rate.

You know what happens next – the complaint receives outsized reaction. There’s an immediate urge to change fundraising messaging or strategy to make sure this never happens again. Some staff members wrongly assume that the Complainer is speaking for more people than him or herself. Fears of the mythical “donor fatigue” are whispered. Flee! Run for the hills! (I’ve written extensively about this in our free eBook about complaints.)

But when an organization has more of an emotional connection with all of the gifts that have come in – and all the generosity and emotion and sacrifice they represent – then a complaint or pushback from an internal stakeholder is just one piece of negative data.

And it’s just one drop of negative data in an ocean of generosity and emotion and sacrifice.

In that case, the complaint is given the appropriate amount of attention. No more and no less. You’re so thankful for the 47 gifts that came in yesterday that you can easily respond to a complaint with warmth and compassion instead of fear.

December Goals

This is being posted on the last day of November. And you are going to receive a LOT of gifts in the next 31 days.

Each of us should spend time in gratitude for the gifts that come in. We should get a little emotionally closer to the generosity and sacrifice behind each gift.

I guarantee you that visiting the mail room each day (or even just scrolling through the names of online donors) will make the inevitable complaint or pushback easier to handle. Because somebody is going to say they don’t like one of your urgent year-end messages. Or a Board member is going to complain about how much fundraising you send out at year-end.

But if you and your organization emotionally feel all the gifts that have come in, those drops of negative feedback will dissolve in the ocean of generosity.

Emotionally acknowledging each gift will also bring you great joy at what you’re a part of.

Why I’m Bullish About Year-End Fundraising This Year

Steven | November 28, 2023November 30, 2023Ask

My mentor once said to me,

“I wish I would have noticed earlier in my career how closely overall fundraising results tend to mirror the economy.”

It’s such a simple idea. But knowing it helped me be a more effective Fundraiser.

There are four main lessons I took from his remark, and I hope they are helpful to you, too.

Takeaway #1 – When the Economy Is Good, Be Bullish

This is applicable right now, today. (As I write this, the S&P is up 19% since the beginning of October.)

“Being bullish” means adding another letter or email in your campaign, or even adding another campaign. It means expecting slightly higher results. It means asking Majors for a little more.

Because the economy seems to be rebounding, I am bullish on year-end fundraising this year.

Takeaway #2 – When the Economy Slows, Reset Your Expectations

When the economy slows, campaigns won’t perform quite as well. Response rates drop a bit, as do average gift sizes. Majors tend to give smaller gifts.

So when the economy slows, savvy organizations reset their expectations. If the goal and plan for the year was 5% growth, they think about reducing that to 3%. They let their Board know the revised expectations, and why.

Takeaway #3 – The World Affects Your Fundraising

If there’s a major natural disaster the week your appeal lands in homes, that appeal most likely isn’t going to do as well.

When Hurricane Katrina hit New Orleans in 2005, we knew two major campaigns that we’d just launched were going to underperform. A significant portion of Americans’ attention turned to New Orleans… which meant less mail was opened… which meant less money was raised by our campaigns.

You obviously can’t plan for natural disasters. But you can plan for times when you know in advance that the world is going to affect your fundraising. For instance, this coming fall is the 2024 Presidential election in the U.S. We recommend most organizations not launch an important campaign the week before or after the election.

Takeaway #4 – Always Keep Noticing

My Mentor was in his 70’s when he shared this observation with me. I love that, even in retirement, he was still noticing things about fundraising. It’s a good goal for all of us Fundraisers: keep noticing things about fundraising, keep trying to get a little bit better at this craft. It makes us a little bit more effective helping our beneficiaries, the organizations we serve, and our donors.