COVID-19 fundraising principles

Response.

If you’re going to raise money for your beneficiaries and/or cause during the pandemic, follow these principles, and you’ll raise more money.

Note: Everything I’m about to say assumes one important thing – the current pandemic situation impacts your organization, cause, and/or beneficiaries. That could be the virus. It could be the economy. It could be travel restrictions. In other words, that there are “new or more needs” that you’re dealing with.

Here are the principles Better Fundraising is living by as we work with clients:

Speed matters. Sometime soon, several hundred thousand organizations are going to realize they’re in trouble and are going to send out e-appeals. You want to beat them to your donors’ inboxes. Don’t wait until the next vacancy in your communication schedule – cancel what’s coming next and replace it with something urgent.

Volume matters. Your donors’ attention is more fragmented than usual. That means your email open rates are going to drop by 20%. Your direct mail open rates will drop too. That means fewer people will see what you send out. And if fewer people see what you send out, you raise less money. So you need to send out more things.

Simplicity matters. You have less of your donors’ attention than you normally do. If your donor usually reads two paragraphs of your email before deciding whether to read the rest, for the next weeks, she’s only going to read one paragraph. So you have to get to the point quickly, and you have to keep it very simple.

Acute needs raise money. We’ve already seen this several times in the last five days. If your beneficiaries or organization is facing a critical need, share it with your donors. Donors LOVE acute needs.

So if your beneficiaries are short of rent money because their service industry jobs have been slashed, ask your donors to provide rent money. If you’re $1 million event was just canceled, ask donors to help erase your $1 million shortfall.

Make it clear – make it simple. Resist the urge to over-explain. Send it fast.

If you haven’t seen it, here’s a video I made with an 8-point outline for a successful e-appeal.

Good luck out there!

SPECIAL POST: Follow This Formula to Raise Money Right Now [FREE VIDEO]

COVID

If the COVID-19/Coronavirus is hurting your beneficiaries or your organization, your donors would love to help by sending in a special gift.

Here’s a formula we created to help organizations during this time of need. Follow this formula to create a simple email that works extraordinarily well:

  1. Quickly acknowledge that things aren’t normal right now
  2. Describe how the situation (COVID-19 or the economy) is hurting your cause / beneficiaries / organization
  3. Ask for a special gift to help (link to your donation page)
  4. Very short story to illustrate the need
  5. Show how the donor’s gift perfectly meets the need
  6. Show how the need from the story is not the only need
  7. Share that the funds needed are not in the budget
  8. Ask the donor to send an emergency gift right now (link to your donation page)

We’re sending this out as quickly as possible because this formula is WORKING. Every email that’s been sent out using it has been a big success.

If you’d like to watch a video of me explaining the formula in more detail, along with an example of an email that follows the formula, click here.

Resist the urge to over-explain. Keep it simple and get it in front of your donors as quickly as you can!

Then get in touch and let us know how well the formula worked for you and your organization!

“What should we avoid in our fundraising?”

Avoid.

Remember the Founder I told you about last Thursday?

The one who said that his organization exists “so that donors can help these girls”?

He also asked a question that I wish more non-profits would ask themselves:

“What should we avoid in our fundraising?”

When was the last time you heard a non-profit ask that question?

There are LOTS of things to avoid in your fundraising, like the non-obvious mistakes that cost so much money, of course.

But mostly I liked that he asked it because it’s such a good question.

Two challenges for you:

  1. Quickly jot down a list of all the things your organization currently avoids in your appeals and newsletters. It’s likely to be an interesting list because most organizations have a set of unwritten rules for what they can and cannot talk about.

a. I can almost guarantee you that there are some things on that list that you should be including, not avoiding. For instance, if “Avoid telling stories where the person still needs help” is on your list, you should take it off.

b. Follow-up question: are there some things you should avoid for some segments of your audience, but not others? For instance, there are some things you should avoid doing in grant applications. But if you avoid them in your direct response appeal letters, you’re raising a lot less money than you could be.

  1. Sign up for Free Review Fridays. At 10:00 AM Pacific each Friday, I review appeals, e-appeals, and newsletters submitted by your fellow Fundraisers (and you can submit yours, too). Watch a few examples, and you’ll quickly see what to include – and what to avoid – with your appeals and newsletters!

The Non-Obvious Mistakes that Cost You Money

Mistakes.

This post is a list of what I call “non-obvious mistakes.”

No one in your organization will ever notice them.

But they cost you thousands of dollars every time you send out an appeal.

Because these mistakes are the difference between an appeal that raises $40,000 instead of the $68,000 it could have raised. These are the difference between an appeal that raises $2,500 instead of $8,000.

Regardless of how big or small your organization is, these non-obvious mistakes are expensive:

  • Lack of clarity about what the donor’s gift will do. Saying things like “Please send a gift today to provide hope” are not clear descriptions of what a donor’s gift will accomplish. As Brené Brown puts it, “Clear is kind. Unclear is unkind.” (Want to know how to be clear? Have a great offer.)
  • Not printing your donor’s name, address, and suggested gift amounts on their reply card. The tests are clear: customized reply cards with customized gift asks will increase the number of people who respond, and increase the size of gifts they give.
  • Mailing too many people. You’re sending your mailing to all your past donors, even the ones who haven’t given in several years.
  • Making your appeal hard to read. These are things like type that’s below 13pt, too many words per page, too-small margins, too much reverse-type, etc.
  • Not including clear reasons why the donor should give a gift right now, today. Most nonprofit appeals and e-appeals share what’s happening at the organization and ask for support. But they don’t include any reasons that the donor should give a gift right now – and then are weirdly surprised when very few donors give a gift today.
    How many of those mistakes is your organization making on a regular basis?

These get missed because – somewhat rightly – we’re usually focused on the obvious mistakes that everyone knows about:

  • Messing up donor data. Like addressing mail to me as “Dear Seven” instead of “Dear Steven” and doing it for years. (True story.)
  • Print shop foul-ups. Things like half of your donors getting a reply card for a different nonprofit. (Another true story. Super fun!)
  • Lousy Links. When the links and buttons in your email don’t lead donors to the right place.

Everybody who has done direct response fundraising for any length of time has a couple of these under their belt. Things happen. But you can build systems and processes to eliminate most of these obvious mistakes, most of the time.

But it’s the other kind of mistakes that kill you.

It’s the non-obvious mistakes that stop organizations from “making the leap” to the next level.

It’s the non-obvious mistakes that keep organizations from ever reaching the scale they need to make a big difference.

The best thing you can do is learn. Read this blog. Follow people who have done this stuff at scale. For instance, follow Lisa Sargent on Twitter – she’s rocking it lately with great advice. As much as possible, do what experienced people recommend, not what know-nothing opinion-havers in your organization say they like.

And for those of you who can’t do what experienced people recommend because people in your organization won’t let you – hold tight. I’m working on something I’m calling the Convince Your Boss Kit. Stay tuned. And for now, do as much as you can!

The Choreography of Donor Attention

Donor Attention.

Superfast, three-part tip to help you raise more money with your appeal letters.

Part 1 – Here’s How Your Donors “Read”

This is what’s called a “heat map” – it shows where donors’ eyes go as they look at your direct mail letters.Heatmap.Your donors will scan your letter to decide IF they will read your letter.

And not everyone will decide to read your letter.

But you still want everyone to receive the message you’re sending, right?

Part 2 – So, You Need To…

Knowing where your donors are likely to look, you need to “choreograph” your letter to put the most important information in the places where a donor is most likely to see it.

Part 3 – And You’ll Raise More If…

So you might ask, “What’s the most important information I can share with my donor?”

Here’s what our experience says. The most important information to share quickly with a donor in an appeal is:

  • Why their gift is needed today
  • What their gift will accomplish

Note: this is just one of the reasons why having a great fundraising offer, and knowing how to Ask powerfully, are vital to success. Great offers communicate very quickly why a donor’s gift is needed, and what it will accomplish.

Once you know all this, you’ll make different choices about what you say in your letters, and where you say it. You move away from the demonstrably poor-performing “share a story of success and ask for support” approach, and toward a direct mail approach that raises lots of money.

Should You Mention Your Goal Amount?

Goal Amount.

Here’s a great question from a smart Fundraiser (and Free Review Friday watcher) named Jeff:

“I had a quick question: Is there an advantage to mentioning the overall goal in an Appeal? Yes, our offer may be $25 a week to help a kid in need, but what about telling our donors our overall appeal goal is $50,000? Have you found an advantage in telling this larger goal, or can it actually decrease giving from some donors?”

And here’s my answer:

Yes, I think it’s a good idea to mention the goal in the appeal.

However, what’s more important is to include multiple other reasons for the donor to give a gift today.

For instance, if you have five kids who are coming into your program next week, I’d mention that before I’d mention the goal.

Here’s why…

Your goal has far more meaning to internal audiences than it does to external audiences.

Insiders and stakeholders love mentioning goals because they know exactly what the goal means. They know the context, they know the scale of the amount, and they know how important it is.

But I’d wager that more than 95% of your donors don’t know if a particular amount is a lot or a little for your organization.

Note: there are times where a massive goal can get your donors’ attention and help motivate them to give. But those situations are outliers, in my experience.

Most of the time, your goal – by itself – is just not much of a motivator for your donors.

Give Your Goal Meaning

When mentioning a goal, I try to give it a meaning that a donor would value.

Here’s an example I gave Jeff: “We need to raise $50,000” is a LOT less impactful than “I need to raise $50,000 so that every child who comes to us can be welcomed, witnessed to, and see the love of Christ in action.”

In that example, I’ve turned a number with little meaning into a number that has a lot of meaning for Jeff’s donors.

The Context is More Important than the Amount

Here’s a data-driven finding that brings this whole idea home…

When an organization has a shortfall, the fact that they have a shortfall is more effective at getting donors to respond than the size of the shortfall.

That tells you something important: the context around an amount is more important than the amount itself.

So next time you have a goal, mention it!

  • A goal can be helpful, but you sure don’t need one (or need to mention one) to be successful.
  • What’s more important is to include multiple reasons to give today that have meaning to your donors.

More Good Reasons to Give Now = More Donations

Give Now.

I’m calling this a “quick tip.”

But in truth it’s a massive, foundational idea for fundraising success:

The more good reasons you can give your donor to give a gift TODAY, the more likely she is to give a gift.

I’ve included a list of “good reasons” below.

But in a nutshell:

“Your help is needed today and here’s why”

Will raise more than…

“Our programs are making a difference – please give to help continue this good work.”

I know it might feel weird. But it works.

And remember, I’m talking about direct response fundraising here. That’s your letters, your newsletters, your emails. I’m not talking about grant proposals or conversations with Foundations. This idea can be helpful in those contexts, too, but it’s not as necessary for success.

Good Reasons to Give Now

Here’s a list of “reasons” that are proven to increase the chances that your donor will respond to your direct response fundraising:

  • Any “multiplier” (like a matching grant)
  • Any beneficiary that faces a need right now (this can be starting to be helped by your organization, or the next step in their process with you)
  • A deadline
  • A budget shortfall
  • Any acute need like “14 new people will enter our shelter this month” or “There are 35 people on our waiting list”
    It’s a learned behavior to begin to focus your fundraising on “reasons to give a gift today” instead of focusing your fundraising on your organization, your programs, your successes, etc.

To help you make the transition to this new way of thinking, here’s some evidence that this works from last week’s GivingTuesday.

I’ve been helping an organization add “reasons to give today” to all their fundraising. Here’s the report I received for how GivingTuesday went: “The team and I have really been trying to focus on the reasons to give NOW. Wonder where I learned that? We smashed through the goal, so I’m thrilled!”

For your next piece of fundraising – maybe your year-end emails?! – be sure to include reasons to give today. You’ll raise more money!

Do NOT Start Your E-Appeals with a Thank You

Thank donors.

We ran a test that you should know about.

We randomly divided a nonprofit’s email file into two groups. We sent both groups the same year-end email with just one difference: the first sentence of one group’s email thanked the donor for their previous support.

The version that began with the Thank You raised significantly less money.

The Lesson: don’t start your appeals or e-appeals by thanking your donor for their previous giving

It seems like the right thing to do – but it raises less money.

So we now have a policy: do not start appeals or e-appeals with a Thank You for the donor’s previous giving.

My Attempt to Explain the Results

Always remember that most donors don’t read the whole thing.

Remember the “heat map”? The eye-tracking studies that prove most donors jump around, don’t read things from top-to-bottom, and certainly don’t read the whole thing?

Here’s my explanation: a number of your donors will read the first line of your emails. And if that line is Thanking them for their previous giving, they appreciate being thanked and then delete your message because they think nothing is being asked of them.

Another thing to remember: at year-end, your donors are moving even faster than normal. They have parties to go to, presents to wrap, etc.

And if a significant amount of your donors stop reading after the first sentence, you are going to raise less money.

So for your December and year-end fundraising emails this year, don’t succumb to the temptation of Thanking your donors right off the bat. It feels like it’s the right thing to do. But you’ll raise less money!

Ask Donors to Do Something Easy

There’s a fundamental truth that savvy nonprofits use to raise more money.

They craft their fundraising to make it easier for donors to say “yes.” And because they’ve made it easier for the donor, these organizations raise more money.

Here’s how smart nonprofits do it and how you can raise more money with your very next appeal, e-appeal, or event…

They don’t ask donors to “support our mission.” That requires a donor to find or figure out what your mission is. Then the donor has to understand it – which is often difficult because so many organizational missions are filled with insider jargon. Then the donor actually has to want to support the whole thing. That’s a lot of work.

They don’t ask donors to understand the whole organization. That requires a list of your programs and often a description of how you do your work. That’s super helpful for a foundation that requires that information, but harder work for a donor who’s giving your letter only a few seconds of attention.

Instead, they ask the donor to do something small and meaningful, often just to support one part of one program. Look through your programs to find powerful moments – places where one small action creates an outsized impact. Then ask your donor to fund that small action.

They don’t ask donors to do something grand (or even impossible). This happens all the time when organizations ask donors to do things like “Help us end poverty” or “Send your gift to feed 47,000 people this fall!” Those are big, hard things to do. Asking donors to do them doesn’t work as well. *

Instead, they ask donors to achieve small, believable outcomes. They work hard to create compelling and believable fundraising offers – that are absolutely aligned with those grand goals – but are packaged into smaller, bite-sized chunkslike “End poverty for a family by sending a young mother to school for a year for $48” or “Feed one person this entire fall for just $58.”

Most smaller nonprofits raise less money than they could because they ask their donors to do things that are hard to do and hard to understand.

Make it easy for your donor to understand and say “yes” and you’ll raise more money.

Remember the Context

The thing to remember – and to remind your bosses of often – is that when you’re sending letters and emails to your donors, you’re doing direct response fundraising. You only have your donor’s attention for a few seconds.

When you only have a few seconds, you don’t have time for complicated, complex arguments. You have time for small, easy-to-understand Asks.

(This is why good fundraising offers work so well, by the way. They keep it simple.)

When you have time, say at a 1-to-1 coffee with a donor, then you can go deeper into your mission and how all of your programs work together.

Or when you’re talking to a potential grantor, who requires knowing everything about your organization before they’ll make a grant.

But when you’re doing direct response fundraising and you have only a few seconds, keep it simple. It’s a proven way to raise more money.

* In my experience, grand statements like “End poverty in our lifetime” or “Eliminate malaria from Uganda” can be great taglines and vision statements. Used as taglines or to set vision, they can help your fundraising. But they tend to reduce results when they’re used as the specific Ask. For instance, an Ask like “Will you help eliminate malaria from Uganda with a gift today?” will raise less money than “Will you help eliminate malaria from Uganda by providing a bed net for one family today?”