Category: Repeat

Nobody

Steven  |  Repeat
first

I have a message for all the young Fundraisers and smaller organizations out there.

Nobody gets their fundraising right the first time.

I say that because it’s easy to get discouraged.

As you start – as an organization starts – there is SO MUCH that you’re having to figure out. Not to mention, nobody got into this business because they desperately wanted to send letters and emails to people. 🙂

So, please know three powerful things…

  1. You’ve begun! That’s a LOT farther than most people get. Maybe they look the other way. Maybe they refuse. Who knows. But you started. From my perspective 30 years in, that’s a bigger deal than you think it is.
  2. Becoming effective is an iterative process. You start. You pay attention. You add another skill. You get better. You notice something else. You get a little better every month. That too is a bigger deal than you think it is.
  3. The whole way, you’re helping your cause and you’re helping your donors. You’re helping the cause by raising awareness, and raising money, so that more good gets done. You’re helping donors because they care – but they don’t have programs like you do, so they can’t do much by themselves.

That’s a lot of good. You could be spending your time marketing bags of chips. Instead you’re helping make change.

It’s not easy. (If it were easy, we’d all be raising tens of millions of dollars and have six-pack abs.)

So keep going. Keep iterating. Keep practicing.

And thanks for being a Fundraiser!

Feedback Loops

Steven  |  Repeat
experiment

Every time you send out of piece of fundraising, you’ve sent out a little experiment into the world.

Is your organization reviewing the results of your experiments?

For instance, your organization has done a lot of experimenting with email subject lines (whether you’ve thought about it that way or not). Have you looked at your open rates to see what types of subject lines generate the highest open rates? After all, the more people who open your email, the more people who read your email, the more people who are likely to give to your email.

Bigger picture – every time your organization completes a year’s worth of fundraising, that’s like sending out a slightly larger experiment into the world.

Are you measuring your “overall donor retention rate”? How about your “major donor retention rate”? Or – I love this one – your “major donor revenue retention rate”? (That one tells you whether your major donor management system is keeping and lifting your current major donors, or if you’re reliant on new major donors to hit your goal each year. Big difference.)

So… you’ve done a lot of experiments.

Is your organization looking at the results of your experiments? Is your organization learning from them? Is your organization getting better with each email, each letter, and each year?

Your Organization’s Habits – Are They Good?

Steven  |  Repeat
habit

Every nonprofit’s fundraising plan is a bundle of habits.

  • Some organizations habitually send out 4 appeals, 1 per quarter.
  • Some organizations habitually call all new donors.
  • Some organizations habitually send out a Christmas card to all donors. 

Think for a second about your organization’s habits. 

The big question is whether an organization has data to tell them whether their habits are helpful… or not.

Quick example.  I once served an organization that habitually sent Christmas cards to all their donors.  They were certain the cards helped with their year-end fundraising, but they had no data to back that up.  And they’d done it for so many years that no one around the table remembered a time when they didn’t send the cards.

So we divided their donors into two random-but-equal groups.  One group received the Christmas cards and the year-end campaign.  The other group did not receive cards, and only received the year-end campaign. 

In January we looked at the results.  The response rate, average gift size, and net revenue from each group was essentially the same. 

They discovered that their habit of sending Christmas cards did not increase how much money they raised.  But it did increase expenses. 

So the following year they dropped the habit. 

Please take a quick look at your organization’s habits.  Make a list of habits that have been directed by data.  By that I mean you’ve tried at least one alternative and the alternative was measurably worse. 

Then make a list of the habits where your organization has little to no information about how an alternate approach might work.  These are the habits that are likely to be personal preferences, or passion projects of an important stakeholder, or traditions that have been handed down from the past. 

The longer the list of habits without information, the more fundraising opportunity you have.

Easy Money: Ask Your Monthly Donors to Give a Little More Each Month

Steven  |  Repeat
Ask for more.

Have you ever asked your monthly donors to upgrade, to give you a few more dollars each month?

You should. Here’s why…

Your monthly donors are usually 3 things:

  • Your true fans. They are the folks who are really bought-in to your organization or your cause. They cared enough to make the commitment to be a monthly donor.
  • Able to give more. Most (but of course not all) monthly donors have the capacity to give more. You already know that they respond great when you send them appeals, and often send in 13th and 14th gifts during each year.
  • Pleased to give more. They are true fans. They love getting to help your cause, and they love getting to help a bit more than they normally do.

Put all that together and you can see that it’s a no-brainer to ask monthly donors to “give a little more each month.”

Here’s a quick summary of how we do it:

  • Once a year, run a mini-campaign to monthly donors that asks them to increase their monthly gift by a few dollars.
  • A direct mail letter tends to be the anchor of the campaign. Include email if you can. The best-performing campaigns always include telemarketing, but you don’t need it to succeed.
  • The campaign’s messaging thanks the donor for the good they are faithfully doing every month, tells the donor how either/both costs and the need are increasing, and asks the donor if they, “could give an extra $4, $7 or even $11 more each month to help” (or something like that).

Oh, and we usually run the campaign in one of two general timeslots: January 15 through February 15, or September after Labor Day.

You’ll be thrilled at how many of your monthly donors say “yes” and start giving more each month. And I’ve never seen the increase in their monthly giving affect their response to other fundraising efforts throughout the year.

The things you might fear will happen, won’t happen. You won’t have mass cancellations. You won’t get complaints.

I helped an organization with a thriving monthly donor program do this for the first time several years ago. They began raising an additional $60,000 every single month. Now they run the “monthly donor upgrade” campaign once a year, and they send it to every returning monthly donor who didn’t upgrade the previous year.

Now, that’s a big organization. But right now, many of your monthly donors could be giving your organization a little more money each month and would be happy to do it.

My recommendation? Prepare a “monthly donor upgrade” campaign and run it this September or at the beginning of next year. You’ll be thrilled you did.

Fundraising “Disasters” Are Rarely Fatal

Steven  |  Repeat
Crisis ahead.

Last Thursday’s post about mistakes got me to thinking…

Mistakes and disasters in fundraising are rarely fatal.

I’ve been part of a lot of mistakes and bad breaks over the years. (Which I think is true of anybody who has been in fundraising for any length of time.)

Just look at this partial list:

  • The Anthrax Scare of 2001 – When poisonous anthrax was mailed to random people that October, everyone in America was afraid to open their mail, and donations through the mail just… completely… stopped.
  • The Great Reply Card Swap – An appeal letter was sent out with a reply card for a completely different nonprofit. And that other nonprofit? Their donors received the reply card for the first nonprofit. Good times!
  • Awkward Typos – When tens of thousands of donors were supposed to be asked to help “fill the pantry” at the rescue mission, and instead were asked to “fill the panty.” And as mentioned last week, when donors were supposed to be asked to “sign the enclosed placemat and return it with your gift“ were instead asked to “sign the enclosed placenta and return it with your gift.”
  • The Host Who Eternally Lapsed – When the famous person you’ve hired for $50,000 to host the donor acquisition TV show… unfortunately passes away a couple months after filming. So you have to pull the shows off the air, reschedule the media buys, and reshoot all their portions of the program.
  • The Poorly Timed Acquisition Campaign – When you launch a national donor acquisition campaign with TV spots, direct mail buys and print magazine ads… right as the 2007 great recession/subprime mortgage started.

All of these left a mark… but none were the massive blow that the organization initially feared.

I think the lessons are to control what you can control. Know that mistakes are going to happen. Send out more fundraising (having fewer fundraising pieces is risky because you’re more reliant on the performance of any one piece).

Donors are generous – they want to give. And it’s inspiring to see how nonprofits are resilient on behalf of their beneficiaries or cause.

Seen, Known and Loved

Steven  |  Repeat
need

Brené Brown says,

“What differentiates humans as a social species is the need to be seen, known, and loved.”

This is true of nonprofits, too.  Each nonprofit wants to be seen, known, and loved.

And this, my friend, is part of why effective fundraising is so hard to create.

The nonprofit itself wants to be seen, known, and loved by donors, non-donors, staff, partner organizations, the community, etc. So the nonprofit creates fundraising that helps donors see the organization, and know how the organization does its work, and shares how compassionate and effective the organization is so that donors will love the organization.

But there’s a problem.  The humans (individual donors) who receive that fundraising also want to be seen, known and loved. 

In fact, those individual humans are more interested in being seen, known and loved themselves than they are interested in seeing, knowing and loving a nonprofit.

So, remember the fundraising that the nonprofit created to make itself seen, known and loved?  It’s not going to be relevant to most donors.  It’s not going to be as engaging to the donor, and it’s not going to raise as much money.

The big idea is for nonprofits to create fundraising that sees, knows and loves their individual donors.  (With boundaries, of course.)

Because here’s the magic… 

If a nonprofit makes the generous choice to create fundraising that makes its donors feel seen, known and loved, then more donors respond with more generosity. 

If an organization can first meet their donors’ needs, then the donors are more likely to meet the organization’s needs.    

Our Final Thoughts on Complaints

Steven  |  Repeat
complain

I had three main goals when putting this series together. I want organizations to:

  1. Not fear complaints
  2. Know how to respond to the complainer
  3. Have a right-sized internal reaction to complaints

But that’s not easy. Complaints are a scary subject for many organizations.

An organization doesn’t usually just “flip a switch” and become comfortable with complaints. It’s a journey with a handful of ideas on the way:

I hope it’s obvious that I’m not saying you should attempt to get complaints. It’s just that, in my experience, every organization that’s reliant on individual donors is going to get a complaint now and again.

So it’s better to have an understanding of what causes complaints, and to know how sophisticated organizations deal with complainers and their complaints.

Furthermore, as organizations grow they begin to see that the better an appeal does, the more likely it is to also generate complaints.

That’s because a great appeal or e-appeal tends to tap into peoples’ emotions. Most people will respond by sending in a gift. But the more people whose emotions you stir, the more likely you are to receive a complaint.

My hope is that organizations will realize that complaints are a cost of doing business for a growing organization. And that receiving the occasional complaint (or even five complaints) is worth it in exchange for raising more money, retaining more donors, and doing more good.

Read the series:

  1. Getting Used to Complaints
  2. Outline for How to Respond to a Complaint
  3. Not All Complaints are Equal
  4. Natural, But Not Productive
  5. The Two Times Smaller Orgs Get More Complaints
  6. So. Many. Reasons. To. Complain.
  7. The Harmful Big Assumption
  8. Turning Complaints into Gifts
  9. “Friendly Fire” — Complaints from Internal Audiences
  10. Our Final Thoughts on Complaints (this post)

So. Many. Reasons. To. Complain.

Steven  |  Repeat
complaints

Donors complain for all sorts of reasons.

To illustrate, I’ve compiled a list of complaints that we at Better Fundraising have seen firsthand.

For context, all of these complaints were received by nonprofits that were growing, raising more money, and achieving more of their mission work than ever before.

Let’s get to the list. All of these are real complaints…

  • The donor whose spouse had passed away a couple days before and they couldn’t believe the organization would send them a letter at a time like this.
  • A donor did not like seeing pictures of what a particular disease did to the people who have it.
  • The donor whose name was spelled incorrectly.
  • The non-donor who did not like that the organization had their home address.
  • The donor (and Board member) who didn’t like being asked to provide matching funds.
  • The email subscriber but non-donor who felt the organization talked about the need for funding too often.
  • The female donor who was annoyed that the organization always put her husband’s name first.
  • The donor who received an appeal the day before from a different organization.
  • The longtime donor who didn’t like that the growing organization is doing more fundraising these days.
  • The donor who didn’t like the way the appeal letter made them feel, so they sent in a complaint and included a gift.
  • The donor who wished the organization would emphasize the positive more often.
  • The donor who complained that they receive too much email from all the charities they support
  • The legacy donor who complained that the organization published her name
  • The legacy donor who complained that the organization did not publish their name

This list could be a lot longer. You’ve almost certainly received a complaint of some kind that isn’t on this list.

Some of the complaints are legit. Some are unique to the complainer’s particular situation.

And remember, all these complaints were received by organizations that were applying fundraising’s virtuous circle to ask people for gifts, thank donors, and reporting back to donors on what their gift helped accomplish. Their overall fundraising was going great.

The Lesson

Once you see a list like this, you begin to realize that many of the complaints organizations receive are unique to the person making the complaint at that time and place in their life.

Their particular set of circumstances + that particular moment in time + your fundraising = their complaint.

In other words, the complainer is speaking only for themselves. They are not speaking for anyone else.

Of course, all complaints should be responded to warmly, and with the right “internal level of reaction.” And of course you want to fix data errors, use people’s preferred salutation, etc.

But too often organizations will receive a complaint, not ask any questions to learn more, and assume, “well if this person complained there must be loads of others who feel the same way.”

If your fundraising is going well, that’s a massive assumption.

Our advice: assume that a complainer is only speaking for themselves until proven otherwise.

Read the series:

  1. Getting Used to Complaints
  2. Outline for How to Respond to a Complaint
  3. Not All Complaints are Equal
  4. Natural, But Not Productive
  5. The Two Times Smaller Orgs Get More Complaints
  6. So. Many. Reasons. To. Complain. (this post)
  7. The Harmful Big Assumption
  8. Turning Complaints into Gifts
  9. “Friendly Fire” — Complaints from Internal Audiences
  10. Our Final Thoughts on Complaints

The Two Times Smaller Orgs Get More Complaints

Steven  |  Repeat
complaint

There are two times smaller organizations get more complaints:

  • When they start to send out more fundraising. For instance, the organization sends out 4 appeals instead of their usual 2.
  • When their fundraising starts to include more details about what life is like for the people they serve. For instance, the organization includes a description of how a person suffers before the organization helps them.

What makes this situation emotionally complex is that – in both these cases – the organization also raises more money.

When organizations send out more fundraising, they receive more complaints and they raise more money.

When organizations send out fundraising that clearly shares the “need” that the organization serves, they receive more complaints and they raise more money.

This is when organizations realize that “receiving more complaints” and “raising more money” are correlated. They almost always happen at the same time. There’s something about powerful fundraising that causes both more complaints and more gifts.

Then the organization realizes it has a choice. It can raise a lot more money (and do more of its mission work) and, in return, handle a complaint now and again.

Or it can change its fundraising so that no complaints are generated, and raise less money (and do less of its mission work).

Each organization gets to make its own choice.

Read the series:

  1. Getting Used to Complaints
  2. Outline for How to Respond to a Complaint
  3. Not All Complaints are Equal
  4. Natural, But Not Productive
  5. The Two Times Smaller Orgs Get More Complaints (this post)
  6. So. Many. Reasons. To. Complain.
  7. The Harmful Big Assumption
  8. Turning Complaints into Gifts
  9. “Friendly Fire” — Complaints from Internal Audiences
  10. Our Final Thoughts on Complaints