Merry Christmas!

Christmas

Your work as a fundraiser is a very real gift to the organization you serve, and to your cause or beneficiaries.

Your work is also a gift to your donors! They can’t do the good they want to do in the world without you!

Thank you also for your time and attention this year – that’s a gift too. It’s an honor to be part of your fundraising journey.

So have a blessed day tomorrow. And tonight we’ll raise a glass to all the good you’ve done this year!

With gratitude for you and what you do,

Jim, Steven, and the entire Better Fundraising Team

Happy Thanksgiving!

Thanksgiving.

Thank you for the work you do! We’re grateful for you.

The work you’re doing makes the world a better place. Not only are you helping your beneficiaries and your organization, you’re helping your donors!

They don’t have the programs your organization has. They don’t have the ability to do good the way your organization can. So you’re giving donors a gift – and chance to make the world a better place – with all of your fundraising communications.

So, thank you! We love getting to be a small part of the great work you do.
Have a wonderful Thanksgiving!

~ Jim & Steven

Want to Help a Lot and Learn a Lot?

We're Hiring.

We’re hiring!

We’re currently recruiting for a Client Account Manager who’d like to accelerate their career by working with and learning from several nonprofits at once.

If you’re a good fit for the job, here’s what you’ll do:

  • Work with between 5 and 10 nonprofits around the country
  • Be the primary point of contact with each nonprofit
  • Project manage + help create fundraising content (appeals, e-appeals, newsletters, and social) for some of our clients under your management
  • Learn the approaches and best practices that are helping our clients regularly (and sometimes spectacularly) raise more money!

You can do this job from anywhere. Our team includes people in Washington, DC, Dayton, Portland and Seattle.

If you’re interested, get in touch with Jim Shapiro at jim@betterfundraising.com or see the full job description here on LinkedIn.

Things an Old Fundraiser Knows

Things an Old Fundraiser Knows

I just completed my 25th year-end fundraising campaign.

It made me think about the lessons I’ve learned over the years communicating to donors en masse. Not the ‘one major donor who likes this’ or ‘the foundation that likes that,’ but when nonprofits are communicating to everyone on their file.

So in hopes that this is helpful, here are a handful of big-picture things that this Fundraiser has come to realize are enduring truths…

It’s harder than ever to get and keep attention

Get great at getting your donor’s attention. And keeping it. This means more drama and less process. More National Enquirer and less National Geographic. This means louder, bolder, redder, and not that fricking shade of light blue that no older donor can see or read.

Mostly it means not assuming that your donor is going to read anything you send them, let alone the whole thing.

You have to earn their attention, my friend.

The way your organization does its work is rarely important

And I mean rarely.

Most organizations, most of the time, should be talking about the outcomes their work creates. They should not be talking about how the organization creates those outcomes.

So if you find yourself talking about your process, the names of your programs, the features of your programs … rethink what you’re talking to donors about.

The best-performing fundraising is usually about something the donor cares about, at the level at which they understand it, and about what their gift will do about it.

This is a hard truth. It saddens me to say that most small nonprofits never embrace this, and they stay small because of it.

Most small nonprofits have ‘untapped giving’ of 15% to 25% of their total revenue

This is based on applying best practices to a LOT of smaller nonprofits. They simply have a lot of donors who would like to give more money if they are Asked well and then cultivated correctly.

It’s a thrill to get to work with those organizations because the increase is real and immediate.

Most of the barriers to raising more money are self-imposed

The things that are holding back small- to medium-sized nonprofits are almost always fear-based barriers:

  • “We can’t talk to our donors more, we’ll wear them out”
  • “We have to share everything that we do, and that we are good at it”
  • “We can’t be so forward, we need to engage our donors/potential donors more before…”

If you’re willing to do things differently, an experienced fundraiser can help you start raising more money immediately.

Successful fundraising is a knowledge issue, not a talent issue

One of the biggest joys of my life is watching fundraisers become Fundraisers. And it almost always happens when they internalize an idea – like the ones I mention above – rather than learning a new tactic.

Donor generosity is amazing

Donors continue to surprise me, even after 25 years. Their generosity is astounding. They want to make the world a better place. They are looking for opportunities to do so.

And we get to tap into that. For a living.

Fundraisers have the best job in the world.

Happy New Year!

Happy New Year!

We trust that your year ended on a high note – both personally and with a rush of donations!

You and I both know that nonprofits, and great fundraising for them, are needed more than ever right now. It’s up to you, me and others like us to do what we can.

So here’s to a fantastic year of fundraising in 2019 – and doing more good than ever in the lives of beneficiaries and donors!

Merry Christmas!

Merry Christmas.

Merry Christmas to you and yours!

We hope today is a day of wonderful celebration, gift giving, and gift receiving!

You’ve worked hard this year, and you’ve made a difference. It’s a gift to be able to do this fundraising thing with you!

So have a great day today. And tonight we’ll raise a glass to all the good you’ve done this year!

With gratitude for you and what you do,

 

Jim, Steven, and the entire Better Fundraising Team

Happy thanksgiving!

Happy Thanksgiving.

We’re grateful for you!

The work you do to make the world a better place is a big deal! So Thank You, we love getting to be a small part of your work, and hope you have a wonderful Thanksgiving!

Jim & Steven

Make “The Leap” to Acquire a LOT of new donors

Make “The Leap” to Acquire a LOT of new donors

This post is about acquiring new donors.

But it’s for nonprofits at a very specific stage in their development.

Keep reading if the following three things are true for your organization:

  • You’re actively trying to grow
  • You realize that to achieve that growth you need more new donors each year than you’ve been acquiring
  • You know that your current ways of acquiring new donors won’t achieve your new goals

I’ll give you an example. We work with a handful of organizations that have between 500 and 4,000 donors. These organizations want to grow… but the ways they acquire new donors are labor-intensive and are hard to expand:

  • Tours of their facility
  • An event or two a year
  • Word of mouth
  • A major donor connects them to another major donor
  • Vision Meetings

All good things – but small nonprofits can only do so many of them each year.

So the organization is stuck: they want to grow, know they need more donors, but don’t have the staff to do more.

If That’s You, What Do You Do?

If that’s you, please know that you’re in good company. A LOT of organizations are in your shoes.

But your question remains: how do you begin to acquire significantly more new donors than you have in the past?

It starts with thinking differently about acquiring donors. The Big Idea is that there is a cost associated with acquiring new donors. You’re going to need to pay for the attention of potential donors via media like radio, the mail, Facebook ads, etc.

In my experience, most smaller nonprofits never make the leap from homegrown, labor-intensive methods of acquiring donors. These smaller nonprofits don’t want to pay (or don’t think they can’t afford) the costs needed to do this.

But if they really want to grow, they need to.

Making the Leap

Below are my tips for “making the leap” to a new way of acquiring new donors.

And I need to say right away that I’m not providing the solution to your donor acquisition problem. This is not “7 easy tricks to more donors than you can count!” (That post would probably get a lot of readers, but it wouldn’t hold water because there is no silver bullet.)

The Current Situation

Most small nonprofits have no line item in the budget for donor acquisition. They also really don’t know their current cost for every donor acquired, because those costs are buried in other expenses.

For example, they might spend $50,000 on an event that acquires 100 new donors. But the expenses are only looked at in relation to how much revenue came in, not how many new donors were acquired.

What’s needed is a dedicated budget for donor acquisition.

How to Grow

Smaller nonprofits basically have two options for growth. You can pursue either one, or both:

  1. Start a scalable Donor Acquisition program. This means doing specific activities like buying radio spots and/or mailing lists, upping your online donor acquisition game, etc.
    • For example: doing a radio share-a-thon for $15,000, getting 500 new donors, then doing that every year moving forward. And this is scalable because you could do two radio share-a-thons for $30,000 and acquire 1,000 new donors. Or 3 radio share-a-thons for $45,000 and acquire 1,500 new donors.
  2. Do more of what you’re currently doing. (For clarity’s sake, I would define what most smaller orgs are doing in donor acquisition as not scalable. Could you expand your event and get 250 more donors? Maybe. Could you add three more events and get 750 new donors? Probably not.)

In my experience, “doing more of what you’re currently doing” almost never results in the type of growth a motivated organization is looking for.

So they have to bite the bullet. They have to pay the costs to start up a donor acquisition program.

Ask a Good Question

The most successful organization leaders, when they want to grow, are asking one of these questions:

  • “I have $XX,XXX to spend on getting new donors in 2018. How many new donors could we get for that?”
  • “I need X,XXX new donors in 2018. How much is it going to cost me?”
  • “By 2020 I need to have our income be 50% higher than 2017. How many new donors do we need to reach that level, and how much will it cost?”

If you know how much you have to spend, we can estimate how many new donors you can acquire.

If you know how many new donors you want to acquire, we can estimate how much it will cost you.

If you know how much you want to be raising 5 years from now, based on how your current donors are performing, we can tell you how many new donors you’ll need, to reach your goals.

Helpful Big Ideas

For organizations who want to begin scalable donor acquisition, there’s a set of ideas that more-or-less must be present in your organization for it to work:

  • If your organization is serious about acquiring new donors, you’ll have a line item in your budget for Donor Acquisition.
  • Measuring the Cost Per New Donor is a sign of maturity for an organization. It means you’re running the thing like a business, with known (and measured) inputs and known (and predictable) outcomes.
  • Scalable methods of donor acquisition require an investment mindset. Usually in donor acquisition you lose money in the short term, but you make money in the long term. For example, you might spend $1,000 and get 10 donors who each give you $50. So you spent $1,000 to raise $500. BUT, if you do a good job retaining those 10 donors they’ll give you $3,000 over the course of their time with you. So you actually spent $1,000 to raise $3,000.
  • There’s no way to know exactly how much a new donor will cost for an organization without testing. But there are industry standards and deep experience for every media channel – even Instagram, believe it or not. Find somebody or some organization who is doing a lot of donor acquisition, and ask them. In my experience, people will help you.
  • The Cost Per New Donor is always higher when you first start scalable acquisition methods. That’s because you do not know what will work best. Over time, you figure out which messages and mediums work best, and the cost per new donor comes down over time. (This is another reason it’s so important to have an investment mindset when you start to scale your acquisition.)
  • There is a “minimum level of investment” to start a donor acquisition program. For instance, if a radio share-a-thon costs $20k and gets you 200 donors, you can’t buy half a share-a-thon for $10,000 and get 100 donors. And by the way, Dear Reader, I don’t think you need to hear this. But I share it because there’s always someone on a Board that says, “Could we just buy seven commercials and see if that works?” What you want to do is figure out what the “minimum effective test” is, and do that. Not half of that.

Moving to this type of donor acquisition is a great sign of growth and maturity for an organization. It’s almost always a sign of a nonprofit being run like a business – and I mean that in the best way possible. It’s being a great steward of the resources given to us by donors to maximize their impact.

Good luck out there – and get in touch if you’d like to talk about donor acquisition!

Six Helpful Ideas for Smaller Nonprofits

Some non-profits want to grow!

Recently I spent the day working with a bunch of smaller nonprofits who wanted to grow.

On my bike ride home that day – which is when I do most of my best fundraising thinking – I thought, “There should be a simple list of things smaller nonprofits need to know if they are serious about growth.”

When I got home I dictated the following list into my phone. It’s a little rough, but it’s my attempt to summarize what small nonprofits tend not to know – and the “upgraded” ideas that in my experience help them break through.

#1 – Small nonprofits don’t know what they don’t know

There’s a whole set of “best practices” out there that small nonprofits should make an organizational priority to discover and put into practice. Things like donor segmentation, a systematic approach to major donor fundraising, having a great fundraising Offer, to name a few.

My advice is to actively seek out best practices and to rely less on making decisions by finding out what the staff likes or doesn’t like. Case-in-point: nobody likes telemarketing, so small nonprofits rarely use it. But it works like crazy and is a fantastic investment.

#2 – Small nonprofits usually don’t know that their donors are not paying close attention

Small nonprofits tend to think that every donor reads every word of every piece of donor communication. That’s just not the case. What does this mean? You need to communicate to your donors more than you think you need to. And know that most donors won’t read every word of what you send them. They might scan it though, so make sure your message comes through even if they scan it!

#3 – Small nonprofits don’t know that they are going to have to talk differently about their organization if they want to grow

In a word, small nonprofits need to simplify their message if they want to grow.

Most small nonprofits assume that a person needs to understand the depth and complexity of the organization’s work before they will become a donor. In my experience, a potential donor is most likely to give when presented with a simple, emotional, powerful current need the organization (or its beneficiaries) is facing. Then, over time, the donor may come to understand your depth and complexity. But start with simple – you’ll get more people in the door.

#4 – Small nonprofits don’t know that repetition is a strength

They try to describe their organization in new ways each time – and as a consequence their message to donors is all over the place. Or they communicate to donors as if donors ‘read every word of everything’ so they only say important things once. (Remember #2 above.)

Instead, find out what message most of your donors are most interested in, then repeat that message to drive it home.

Take this lesson from the world of advertising: it’s a general truth that people need to hear a message three times in a short amount of time before they take action. So if you have two appeals a year, one in the spring and one at year-end, your message isn’t getting through to whole swaths of people.

#5 – Small nonprofits don’t realize they should be spending more time and money on their Major Donors

To be clearer, most small nonprofits do understand this – they just don’t do much about it.

And that’s too bad. Because major donors are more important to small orgs than to large orgs!

What a small nonprofit should do is identify and rank their major donors, then devote real time and energy to getting to know those donors, learning about their passions (why they give) and actively looking for ways the donor can exercise their passions through the organization. Asking, Thanking, Reporting on an individual basis to all Majors is a good idea, too.

#6 – Small nonprofits don’t know that what they say to donors matters more than what their materials look like

Another way of putting this is to say that an organization’s visual brand (colors, logo, typeface, website design) matters far less to donors than things like being donor-centered, having a good offer or Reporting back to your donors on what their gift accomplished.

Wrapping Up

If you’re a smaller nonprofit, I hope this is helpful.

If you know a small nonprofit that would benefit, please pass this along to them.

Jim and I firmly believe that helping small nonprofits raise more money is the biggest area of opportunity in fundraising today. There are just so many of them! More than a million of them in the U.S. alone.

So if we – you, Jim and me – can help the small nonprofit ecosystem get better at fundraising, we can make a meaningful impact on our culture and society. That’s the goal. Let’s get to it!

PS – And if you’d like to work on it together, drop us a line!