Steven, Author at The Better Fundraising Company

Before’s & After’s

Steven | March 29, 2022March 30, 2022Ask

Our last post was about how the distance between the “before” and the “after” shows the donor the power of their gift.

Speaking of this, I’ve noticed that there are four different ways organizations tend to handle “before’s and after’s,” and each results in different fundraising results…

Only the “Before”

Organizations that share only the “before” – the need that exists in the world before your organization has helped – will raise a lot of money in the short term.

But these organizations have troubles keeping their donors, because their donors never see or feel what their gift accomplished.

This short-term success can be extended to medium-term and even long-term IF the organization has a fantastic donor acquisition program and works on an issue with broad appeal. But it’s not a good strategy for smaller organizations – and I don’t think it’s particularly honoring to beneficiaries or donors.

Only the “After”

If organizations only share the “after” – the positive state after the organization has done its work – the organization will raise less money than it could be raising.

Some donors are motivated just by hearing the “after.” But a lot more donors are motivated by hearing the “before” and the “after.” When the “before” is never shared, a significant percentage of people don’t give, or give less.

A secondary consequence of only sharing the “after” is that organizations accidentally hide the need faced by their beneficiaries.

No “Before” and No “After”

If you share no “before” and no “after,” you also raise less money. This happens when a nonprofit tells donors that the work is happening now, that the work will continue, and asks the donor to “continue to” support the work. There’s no “before.” There’s no “after.”

These organizations accidentally communicate to donors that no change happens when the donor gives – so why should the donor give?

I hope it’s obvious that “why should the donor give?” is a rhetorical question, because the nonprofit is presumably doing good work. This post makes the case for why asking a donor to “continue to” support an organization’s work is one of the least compelling ways to ask for support.

“Before” AND “After”

The organizations where we’ve seen the greatest fundraising success share both the before and the after. They share the bad news and the good news.

When Asking in appeals and e-appeals, they share what’s happening now (the “before”) and what will happen if the donor gives a gift (the “after”).

When Reporting in newsletters, they share what was happening (the “before”) and what’s happening now (the “after”).

The constant contrasting of the “before” and “after” helps a donor see how big an impact their gift to your organization can make, or has made in the past. This is the best strategy, and it provides a strengthening blend of short-term and long-term success.

This strategy honors beneficiaries because it creates awareness of the current situation and of the hopeful future that’s possible. It honors donors by showing them the impact of their generosity.

The Distance

Steven | March 24, 2022March 22, 2022Ask

The graphic above is the best way I know to show why it’s so helpful to donors when nonprofits share “before and after’s” in their fundraising.

The distance between – the contrast between – the “before” and the “after” is what shows the donor the power of their gift.

Here’s how it works…

Appeals & E-appeals

When you’re Asking for a gift in appeals and e-appeals, you want to share the “before and potential after.” Describe the “before” – what’s happening now that needs to be fixed? Then describe the “potential after” that the donor’s gift will help make possible.

If the distance between the before and the potential after is large, the donor will feel like their gift will make a big difference. And when you make your donor feel like their gift will make a big difference, you’ll get more gifts.

Newsletters

When Reporting back to donors in newsletters, you want to share the “before and after.” Your newsletter story or E.D. letter should describe the “before” (what was happening that help was needed”) and then describe the positive “after” that the donor’s gift made possible.

If the distance between the before and the after is large, the donor will feel like their gift made a big difference. And when you make your donor feel like their gift made a big difference, you’ll get more future gifts.

More Important

When you create a lot of direct response fundraising, you quickly find out that donors care much more about the “before” and the “after” than they care about how your organization made the “after” possible.

So don’t spend time in letters and emails talking about your programs, or about how your programs work. That’s the “how you made it possible.” Save that info for grant applications and the small group of major donors who love the ins and outs of your programs.

For direct response fundraising, show donors the big distance between the before and the after. If you can get your donors thinking, “Wow, my gift can make that big a transformation?” or “Wow, my donation made that big a difference?” – they’ll loving giving to your organization because of the impact they can make.

Not All Good, Not All Bad

Steven | March 22, 2022March 22, 2022Report

Fundraising shouldn’t be all good news, and it shouldn’t be all bad news.

Your stream of fundraising communications should feature both.

Asking for gifts (appeals, e-appeals) works best when it shares the bad news: the problem or negative situation that your organization works on. That truth about what’s happening reveals the tension donors hold between what the world is like today and what they want the world to be.

That tension causes a lot of people to donate.

Reporting (newsletters) works best when it shares the good news: examples of how your organization made a difference. It brings real joy to donors to see the triumphs that their gift made possible – and many will want to give again to do more good and feel more joy.

Those triumphs will also cause people to donate.

Rules To Live By

Here’s what we’ve noticed…

If you share only bad news, you’ll raise less than you could raise. When we serve organizations who previously only shared the bad news, they raise more money when they incorporate Reports that share the good news.

If you share only good news, you’ll raise less than you could raise. When we serve organizations who previously only shared the good news, they raise more money when their appeals and e-appeals share the problem or negative situation their organization works on.

Finally, in the context of direct response fundraising, each piece of communication should focus on only one type of news. When we’ve served organizations who previously “mixed together” the good news and bad news in each piece of fundraising, they raise more money when their appeals and e-appeals share the bad news, and their newsletters share the good news.

We wish it weren’t that way, because it means that organizations must share tough needs and tough stories. And they must be disciplined about what they put in each piece of communication. But this approach helps the organizations we serve to raise a great deal more money.

How to Thank Your Donor So She Actually Feels Thanked

Steven | March 17, 2022March 10, 2022Thank

The goal of your Thank You and/or Receipt package is not just to acknowledge your donor’s donation.

Any organization can do that.

Any autoreply or receipt letter can do that.

Your goal should be to make your donor feel thanked, appreciated and important.

How?

When you thank her for helping your organization do its work, you’ve made it about you, about your organization.

What you want to do is make it about her. So, thank her for her generosity. Tell her what her gift is going to do (instead of saying what your organization is going to do). Tell her how important she is to your organization.

When you do that, you’ll find that most of your Thank You/Receipt copy is about her. And less of it is about your organization.

Less about You, More about Her

Donors are inundated with requests for support. In the United States, there’s one nonprofit for every 200 people. And almost all of those organizations talk about themselves. Endlessly.

But a very few of them have learned the secret: your donors are more interested in themselves – their lives, their values, their impact – than they are in your organization.

So if you talk to donors about their lives, their values and their impact, they will finally feel like a nonprofit “gets” them. They’ll feel that there’s a nonprofit that’s working on their behalf – trying to help them do what they want to do – instead of just another nonprofit trying to sound great to get their next donation.

Do you feel the fundamental difference? The posture of gratitude for what the donor did, not for what she helped your organization do?

If you can embrace that fundamental difference, and start communicating to your donors that way, you’ll begin to build a tribe of loyal donors who will give you more gifts, larger gifts, and will give to you for longer.

This post was originally published on May 21, 2019.

How To Get Matching Funds from a Major Donor

Steven | March 15, 2022March 10, 2022Ask, Major Donor Fundraising

Matching funds are the easiest way to make everything you do (appeals, events, newsletters, you name it) raise more money.

And your easiest source of matching funds are your major donors.

We’ve had great success helping our clients get their major donors to donate matching funds. When done correctly it engages the major donor, gives the major donor a chance to multiply their impact (who doesn’t like that?) and helps you raise more money towards your development goals.

Here’s how we go about it. And of course every major donor is different, but here’s the approach that’s worked for us . . .

Review your major donors for the right donor(s)

Look for a donor who either a) hasn’t given a gift yet this year, or b) you think has the capacity to give another gift at year-end. At year-end, I think approaching majors who haven’t yet given a gift this year is your best move.

Approach the donor with a question

Use the opening question of, “Would you like the chance to multiply your giving and increase the impact of your generosity?” You want to — right away — get the donor in the frame of mind that they can increase their impact by donating matching funds.

Share the stats with them

Make it clear to the donor that they will be multiplying the impact of their own giving. Here’s why: not only do they get their gift matched by the rest of your donors, but there’s additional giving that takes place because of the match!

Look at these stats from MailChimp. I would share these stats directly with your major donor, and talk about how their donation can make results like this possible:

Matching funds increase average gift size by 41%
Matching funds increase the # of donations by 110%
Matching funds increase revenue by 120% (and that’s not including the matching funds themselves!)

Do you see how a match does more than double the money you raise? You get 2x the original amount because you have the match, and the funds raised to match it. But then your fundraising performs better than average too! This is an instance where 1 + 1 = 2.5. THAT’s the opportunity you have to give your donor!

Give them a deadline

If your donor is interested but doesn’t commit, give them a deadline that’s reasonably soon. You want to make them feel like opportunities to multiply their impact like this don’t come around that often (which is true). Tell them that if they say “no” you are going to contact another donor because you need the match to increase fundraising results.

And if you haven’t heard from them by the deadline, contact them to check in. Then if you need to talk to another donor, talk to the next person on your list.

Having a match really is the easiest way to increase your fundraising results. And if you want those kind of increased results for your year-end fundraising? Figure out what major you should be talking to right now and approach them right away.

This post was originally published on November 6, 2017.

Give Complaints the Attention They Deserve

Steven | March 10, 2022March 10, 2022Ask

I’d like to suggest a process for how to give complaints the attention they deserve.

I suggest this because complaints, at smaller organizations, tend to be given outsized attention. And that outsized attention almost always guarantees that the organization won’t grow as fast as it could, and won’t achieve as much of its mission as it could.

In my experience, here’s how complaints are usually handled:

Vague information. No numbers are used, it’s always phrases like “so many” and “the front desk was bombarded with calls today” and “we had a scary number of unsubscribes.”
Super-emotional delivery. Complaints are reported breathlessly, or with trepidation.
Immediate escalation to leadership. Complaints don’t get reported through normal channels and departments, they are immediately shared far and wide.

Please don’t get me wrong: I think these responses to complaints are normal and understandable. Asking for money is hard, awkward work. It takes vulnerability. And vulnerability opens us up to being wounded by complaints.

All that said, these responses to complaints are unhelpful.

Here are my proposed guidelines for how smaller organizations handle complaints:

No vagueness allowed. Only hard numbers and actual counts, please. When someone says, “OMG so many complaints!” the appropriate response is, “Thank you, please tell me exactly how many, over what time period, and what they said. Then we’ll figure out how to respond.”

Share context about the Complainer. Are they a donor or non-donor? A major donor? A board member who we already know doesn’t like fundraising? Context matters; a complaint from a major donor is significantly different than a complaint from a non-donor who is on your email list.

Share context about the Campaign. When talking about complaints, the fundraising results of the piece of fundraising should also be shared. The complaint(s) and money raised are results of the same thing, and both need to be evaluated to understand the whole picture. If you’re told that 5 complaints came in, that sounds awful. If you’re told that the 5 complaints came in along with 500 gifts, the “5 complaints” is a completely different story.

Escalate appropriately. Complaints are reported to the Fundraising department or appropriate staff person – and no one else. Then trust the process from there.

Complaints are a fact of life for growing nonprofits as they communicate with more and more people. Complaints are a fee, not a fine.

Treat them appropriately and they come to be seen and felt as an unfortunate fee you have to pay – but a fee you willingly pay because the organization is raising so much more money and achieving more of its mission.

Complaints, Fees and Fines

Steven | March 8, 2022March 8, 2022Repeat

There’s a difference between a fee and a fine:

A fee is what you pay in exchange for something. You pay a fee, and you get into Disneyland.
A fine is what you pay when you’ve done something wrong. You drive too fast, and you pay a fine for speeding.

Most nonprofits think of donor complaints as a fine for doing something wrong.

I want to you to think of donor complaints as a fee you pay in exchange for raising more money and retaining more of your donors.

Most complaints happen for two reasons:

When you send your fundraising to more and more people – somebody is going to complain… because people will complain about anything.
- Large nonprofits have whole departments of people that handle complaints. Why? Because they have so many donors that there will always be somebody who complains.
When you share the truth about what’s actually happening in the world – somebody is going to be uncomfortable, and they are going to complain.

Sending your fundraising to more people and sharing the truth about what’s happening in the world increases the amount of money you raise.

At the same time, it increases the number of complaints you receive.

The complaints are a “fee” you pay in order to do more of your mission.

Trying to grow your fundraising without increasing the number of complaints you get is like asking the kitchen staff of a small restaurant to feed a lot more people but have the same number of spills or drips as before.

You wouldn’t ever ask that! You know that spills and drips are a “cost of doing business” in a kitchen that’s working hard and growing.

But nonprofit fundraising staffs are expected to grow without increasing complaints. Instead, complaints should be seen like a “cost of doing business” for a fundraising program that’s working hard and growing.

Complaints are like “fees” to make the leap to the next level of fundraising. In exchange for raising more money, you have to deal with a few more complaints.

Complaints aren’t fun. But they’re not a sign that “a lot of people don’t like our fundraising.” They are just the occasional fee.

And isn’t paying a few fees worth it in order to raise more money, retain more of your donors, and do more of your mission?

LIST of what to “repeat” to save time and raise more money

Steven | March 3, 2022March 3, 2022Repeat

I know the idea of “repeating” fundraising you’ve done before doesn’t make sense at first. And it can feel weird.

That’s why I want to talk about the secret of “repeating” – just think of it as a tool that savvy fundraisers use to save time and (surprisingly) raise more money.

What We Mean By “Repeat”

When we say you can “repeat” something, here’s what we mean in a nutshell: do the same thing again, but slightly differently.

Send the same letter again, but slightly reword it
Send the same email again, but slightly reword it
Run the same event again, but with a different beneficiary speaker
Send the same letter again, but with a slightly different design

Are you picking up what I’m laying down?

And in some cases you can send the exact same thing. Same email. Same letter. We’ve done both of them and they’ve both worked:

My podcast partner Jeff Brooks tells a story about an organization that sent an appeal every month. One month it accidentally sent out the exact same appeal that it sent the previous month – and it raised more money the second time!
I think about an organization that took half their donors and sent them the same exact email the last four days of the year. Those donors gave more than the other half of their donors who received four unique emails.

Because remember:

Most of your donors aren’t paying that close attention
Many donors need to hear something twice (or more) before they pay attention and really think about it

When To Repeat Letters And Emails

Here’s how to repeat your appeal letters and your emails.

If you are doing something that you did the year before, you can repeat it.

Say you send out a Thanksgiving appeal last year, and you’re going to do another one this year. The first thing to do is to look at last year‘s Thanksgiving appeal and its results.

If the results were better than the previous year, repeat it. Don’t write a completely new email. Don’t design a completely new letter. Make only the minimal number of changes you need to make.

The same is true for anything you do each year. Here’s a list of things we’ve repeated to great success, and I’m sure there are more examples:

Year-end / Thanksgiving / Back-to-School / etc. – letters & emails
Facebook campaigns
Events
Giving Tuesday
Renewal
13^th Gift
Sponsorship/monthly giving upgrade campaigns
Monthly giving recruitment

You name it. If you do it every year, you should be repeating it and making slight tweaks to make it better, not reinventing the wheel.

When You Repeat, Watch Out For…

Here’s what to watch out for when you’ve decided to repeat a fundraising tactic…

Any detail that was true last year, but not this year. You need to update anything that’s not true. New ED? Update the name at the end of the letter. This year’s “Thanksgiving Meal” costs $1.93 instead of $1.92? Update the letter. Your organization now rescues Wombats? Add “wombats” to the list of animals you rescue.
Does the story need to be updated? Many letters contain a story about a person that illustrates the need. That story should be swapped out and replaced with a new story. But the rest of the letter doesn’t have to change.
- Note: this is true for events as well.
Doing too much. Don’t make too many changes just because you’re in there.

Story Time With Steven

I used to write appeal letters and emails for The Salvation Army. They are a fundraising machine who has all of this down to a science. (You might read that they are a “fundraising machine” and think, “Well, that would never work with my donors.” Please be open to the idea that it would work. Many of your donors also give to the Army.)

Most of the time I would receive the following instructions when it was time to write a letter:

“Here’s last year’s letter. It worked great. Update it for this year and change only what’s absolutely necessary. Do not mess this up.”

Inspiring!

No, not really. At least if you’re a ‘creative type’ like me.

But that’s how you build a mature fundraising program that raises the big bucks. You take something that works. You repeat it. You refine it. You look for little ways to make it better. You watch the results closely and look for what donors love, as told through their giving.

Over time you build a money-raising machine that allows you to do so much good in the world that people come to learn fundraising from you.

Listen, a lot of people don’t like hearing this. They want to be creative. They want to love the fundraising they send out.

I’m the same way. I get bored writing the same emails for the second (or tenth) year in a row.

But over time, if you look at the results, it becomes really obvious that if you repeat what worked before, you’re going to raise more money.

Please trust me – I’ve banged my head against that wall enough time to have a small dent in the middle of my forehead. (Well, actually that scar is from my sister throwing a Hot Wheel at me, but it’s a better story if it’s a fundraising scar.)

You are going to be tired of what you’ve been doing. So will your boss and your Board. You’re going to want to do it differently. You’re going to want to ‘come up with a new theme for this year’!

Don’t give in. Keep doing what’s been working great. You’ll raise more money each year.

If you invent a new approach each year you’ll be causing two problems: #1, you’ll be raising less money; and #2, you’ll be taking a LOT of time you could be using to do something else. Like, you know, focusing on major donors, where 90% of your individual donations come from. Or acquiring new donors, who are the future of your organization.

But Whither Innovation?

I’m going to write a post later this month on ‘how to innovate when you’re in a culture of repeating what’s worked in the past.’ Because you have to innovate.

But you want to innovate in a way that minimizes your risk. And I’ll share how to do that. But here’s an analogy to tide you over…

If you’re Apple, do you decide to stop making the iPhone and replace it with something completely new? No. You keep on updating, tweaking the iPhone to make it better each year. And you keep releasing different versions of the iPhone to try out new ideas.

Sheesh

Enough rambling. I hope the concept of “repeating” is making sense. I know it’s not how normal nonprofits operate. But it’s one of the secrets that savvy fundraisers have discovered – and you should be using it. You’ll save time, and you’ll raise more money.

If you’d like to have me help your organization know what to repeat – or to tweak what you’re doing to make it even better – get in touch!

This post was originally published on June 7, 2018.

Two-Minute Survey

Steven | March 1, 2022March 3, 2022Ask

Hey, would you do me a favor?

Would you please take this two-minute survey?

Your answers will be completely anonymous.

I’m trying to figure something out. So that more organizations can raise more money. And you can help.

The survey is about appeals. You know, those letters and emails that raise tons of money but “nobody likes”? Yeah, those. I’m trying to figure out why fundraisers like you, and organizations like yours, don’t send more appeals.

Because sending a couple more appeals is the single easiest way to raise more money – especially for smaller organizations.

If you’ll share your thoughts with me, that would really help us as we work to increase the fundraising capacity of small-to medium-sized organizations.

And again, your answers will be completely anonymous. You can be as blunt and as honest as you’d like.

Please take the survey, and thank you so much!