Tag: communication

What We Have Got Here is a Failure to Differentiate

Steven  |  Ask
communicate

With apologies to the famous line from Cool Hand Luke, I’d like to talk about differentiation.

Savvy Fundraisers are constantly differentiating as they create an organization’s fundraising.

As you create your organization’s fundraising in 2022, you’ll raise more money and keep more of your donors if you differentiate each piece of fundraising based on:

  • How you’re communicating with your audience
  • Who you’re communicating to
  • What you’re trying to achieve

Let’s look at each…

HOW You’re Communicating

How you communicate with a donor (or potential donor) affects what you can say and how you can say it.

Everyone knows that what you’d say in a long lunch with a donor is different than what you’d say in a two-page direct mail letter.

How you’re communicating in those two contexts is completely different.

But let’s take that even farther: what you’d say in a grant application is different than what you’d say in a two-page direct mail letter.

Even though both are examples of written communication, they are clearly different.  Grant applications are more likely to be pored over, while direct mail letters are more likely to be scanned.

Therefore, a grant application should be written entirely differently than a direct mail letter. 

The form that the communication takes place in should affect what you say and how you say it.

WHO You’re Communicating To

Everyone knows that you would say different things to a person who has a Ph.D. in whatever your organization does, than you would say to a person who knows next to nothing about your field.

We all know that we’d say different things to an involved Major Donor than we would to a person who has made their very first gift.

Who you are talking to should affect what you say and how you say it.

WHAT You’re Trying To Achieve

Everyone knows that you would say different things to a person depending on what you’re trying to achieve.

If you want to ask someone for a favor, you’d say different things than if you were praising them for a job well done.

What you’re hoping to achieve with a piece of communication should affect what you say and how you say it.

What To Look Out For

When I review pieces of fundraising that didn’t work well, I almost always spot a lack of differentiation:

  • The How: a direct mail letter that sounds like a grant application
  • The Who: a newsletter that was written assuming that audience is made up of Ph.D.’s
  • The What: a Thank You email that thanks me for my first gift to an organization and then (in the second paragraph!) asks me to give more and join a high-priced giving circle.

This failure to differentiate costs nonprofits millions of dollars a year.

The causes are pretty simple.  There are inexperienced fundraisers and organizations.  They just don’t know, and you can’t hold it against them because everyone was inexperienced at one point.

And there are people who prefer a specific type or style of communication and refuse to differentiate, using that type or style regardless of context. 

This post is an attempt to help both groups see how they are causing their organization to engage their donors less, and to raise less money.

Does Your Organization Need to Differentiate?

The more you can differentiate, the more money you’ll raise.

For organizations that need to differentiate, one question should become forbidden for anyone to ask.  That question is, “Do we like this piece of fundraising?”

Because liking a piece of fundraising is usually a function of it being the type or style that’s preferred – and isn’t an indication of whether it will work well, or not.

And then one question becomes mandatory – “What would work best in this situation?”

This leads to specific questions like:

  • Who is this piece talking to, and what do they know?
  • What form of communication are we using, and how should that effect what we’re saying?
  • What’s the purpose of this particular piece of communication, and is everything in it working to achieve that one purpose?

Ask questions that help you differentiate, and you’ll create fundraising that engages your donors and raises more money.

Your internal audiences might not prefer your new fundraising as much. But your fundraising should be judged more on how much it raises as opposed to whether internal audiences prefer it. 

Emotion Leads to Action, Reason Leads to Conclusions

Steven  |  Ask

As you start your fundraising work for 2022, let me give you a simple idea.

It’s from the Canadian neurologist Donald B Calne:

“The essential difference between emotion and reason is that emotion leads to action, while reason leads to conclusions.”

When you create fundraising, one of your primary goals should be to write and design to reveal the strong emotions held by your donors.

If you can tap into their emotions, you’ll cause more action.

If you cause more action, you’ll raise more money.

So. As you create fundraising this year, aim for the heart. If you or anyone on your staff finds yourselves trying to “convince donors to support us” … you’re most likely creating fundraising that attempts to “reason” donors into giving. You’ll absolutely get some gifts. But you’ll also get a lot of conclusions – which are hard to deposit.

If you want more gifts you can deposit and use to fund your programs, use stories. Talk about shared values. Talk about needs, conflicts and triumphs.

This fundraising thing we’re doing. It’s not hand-wavy. It’s science.

Please Don’t “Continue To”

Steven  |  Ask
To be continued...

When you ask a donor for a gift in an appeal or e-appeal, you will raise more money if you can focus the donor’s attention on the change that their gift will cause.

Unfortunately, organizations often accidentally emphasize the lack of change that a donor’s gift will cause – and they raise less money because of it.

This is happening every time you see the phrase “continue to” in an appeal or e-appeal.

Example Time

Here are three examples of how “continue to” causes an organization to raise less money from appeals that recently came across my desk…

“Your gift to the Annual Fund enables us to continue to provide the necessary support, programs, and services to our students.”

According to that sentence, will anything change if the reader gives a gift? Nope. If the reader gives, the “necessary support, programs and services” will continue to be provided. There will be no change if the reader gives a gift.

Here’s another example:

“Please join us in making a contribution so we can continue to do work like this…”

If the reader gives, the work will continue to get done. There will be no change.

“Your help is needed now more than ever, so we can continue to provide safe, stable and affordable homes to those in need.”

If the reader gives a gift, the work will continue to get done. No change.

How To Emphasize Change

Here’s how to emphasize the change, using two of the examples above.

Original copy:

“Your gift to the Annual Fund enables us to continue to provide the necessary support, programs, and services to our students.”

New copy:

“Your gift to the Annual Fund will provide necessary support, programs and services to our students.”

Even better copy:

“Your gift to the Annual Fund will provide necessary support, programs and services to a student.”

Compare the “even better” copy to the original. Doesn’t it feel stronger and more direct? I can more-or-less guarantee that it would raise more money.

Here’s the second example from earlier:

“Your help is needed now more than ever, so we can continue to provide safe, stable and affordable homes to those in need.”

New copy:

“Your help is needed now more than ever to provide safe, stable and affordable homes to those in need.”

Even better copy:

“Your help is needed now to provide a safe, stable and affordable home to a family in need.”

Every single one of those sentences is accurate and truthful. But the “new” and “even better” copy would help those organizations raise more money.

2022

In our experience, one of the qualities of successful appeals is that the change that the donor’s gift will make is obvious to the reader.

Your appeal letter is likely to raise more if it tells your donor that their gift will cause meaningful change, as opposed to funding the status quo.

So watch out for “continue to” in your fundraising this year – make sure you’re not accidentally downplaying the big change your organization makes in the world.

Because donors give gifts to make a change. To right a wrong. To stop an evil. To help a person. To advance a cause.

Ask donors to make a meaningful change with their gift and you’ll receive both more gifts and more meaningful gifts.

Long Emails vs Short Emails

Steven  |  Repeat
Many emails.

Here’s a bit of fundraising wisdom found in an unexpected place.

It’s from a musician named Gabe Anderson who is writing about emails that musicians send to their fans. But what he’s saying absolutely applies to a nonprofit’s email strategy:

Shorter emails, sent consistently, sustain connection much better than one long one every few months.

Packing an email with links and offers and stories and updates and discount codes is too much… all under the idea ‘we’ll make up for our lack of consistent communication by sending out an email that includes everything because it’s really important that they know everything.’

The solution is to send more emails… to people who look forward to getting emails from you… and then don’t overwhelm them with long paragraphs and links.

You don’t usually enjoy getting long emails either.

The lesson, as always: never go dark. It’s a generous act to show up regularly in your donors’ lives!

h/t to Josh Alcorn for the idea for this post.

The Fundraising IS the Relationship

Steven  |  Ask
Fundraising relationship.

When it comes down to it, fundraising is not that hard.

You treat donors and potential donors with kindness and respect. You try to build relationship with them.

We all “get” the relationship aspect.

But every organization has some donors that you are never going to be in relationship with. These are donors who don’t go to events. They are $25 donors and major donors who you’ve never met and won’t return your calls. They aren’t known by anybody on your staff or board.

But you still want a relationship with them. And believe it or not, it’s possible to have a GREAT relationship with them.

Here’s the secret…

Your Fundraising IS Your Relationship

You’re already in a relationship with them.

The way you communicate with them is you send them fundraising. The way they communicate with you is by giving a gift… or not.

So for your side of the relationship – the fundraising that you send them – the question becomes; “How are you going to show up?”

Take a look at a bunch of standard practices is mass donor fundraising, and think about all of these in the context of relationship:

  • Fundraising that talks mostly about the organization itself, and very little about the donor
  • Only sending out a couple pieces of fundraising a year, and going dark (ghosting) for weeks and months
  • Fundraising that, when sharing success stories made possible by the donor and the organization, focuses almost exclusively on the organization’s role
  • Fundraising that’s written to the organization’s level of expertise, instead of written to the donor’s level of expertise

You’d never put up with those behaviors from another human, would you?

It’s almost like we ignored the basic principles of relationship when we created mass donor fundraising plans and materials, don’t you think?

So is it any surprise those approaches don’t make for effective fundraising?

Your Side of the Relationship

Here’s how to hold up your side of the relationship, how to show up in your donor’s life and be the type of organization that she’d like to be in relationship with:

  • Fundraising that’s mostly about what she cares about (your beneficiaries and what she can do or has done to help), and less about your organization
  • Fundraising that regularly shows up in your donor’s life
  • Fundraising that focuses more on the donor’s role and less on the organization’s role
  • Fundraising that’s written to make it easy for a donor to understand

Follow those principles and you’ll build GREAT relationships with donors you’ve never talked to.

And over time, many of your donors will “upgrade” their relationship with you through attending an event, giving you a major gift, including you in their will, etc.

And it will have happened because you made the generous choice to show up in their lives.

You held up your end of the relationship in a way that made them want to get to know you better.

How Email Increases How Much Your Direct Mail Raises

Steven  |  Report
E-fundraising.

Savvy nonprofits use email to win the hearts of their donors in between the organization’s printed appeals and newsletters.

They use email to tell great stories. To report back to donors on the impact their previous gift had. To ask for a donor’s preferences. Email is how they keep their name on a donor’s lips.

Their donors become more familiar with the nonprofit. Their donors like the nonprofit more.

So when an appeal arrives, the donors are more likely to open the envelope, and are more likely to give a gift.

If your organization can become a familiar voice in your donors’ inboxes – a voice who tells wonderful stories of the impact the donor has had and is having – you’ll move onto their “automatic recall” list.

And not only will you raise more with your printed appeals and newsletters, you’ll also get more gifts out of the blue.

Because when a donor gets an inheritance from her Aunt and she wants to make a gift, or she receives a bonus at work and wants to give back, it’s your organization’s name she’ll remember first.

I know it’s hard for nonprofits with fewer resources to write and send out more emails. If that’s you, I’d remind you no donor out there is hoping for another professional-sounding email in a pastel-colored email template with links to everything.

But donors are absolutely interested in a personal, relevant email about things they care about. And because they’ve given a gift to your organization, you know they care about whatever your organization works on.

A simple, text-only email once a month from your founder or ED will go a long way to building relationship.

If you’re up for it: a simple, text-only email once a month with a short story about how the world is a better place because of your organization and the donor – this will go even further to build the relationship.

Keep it simple. Each email is not precious. Get into the habit of regular email communications with your donors and ALL of your fundraising will do better!

Four Times You Can ‘Break the Rules Like an Artist’

Steven  |  Ask
Break the rules.

There are best practices for direct response fundraising for a reason.

Smart Fundraisers and organizations, looking at patterns over the last 70 years, have noticed that some tactics in appeals and e-appeals work better than others.

But there are absolutely times you can “break the rules” and succeed. Sometimes succeed wildly.

“Learn the rules like a pro, so you can break them like an artist.”
— Pablo Picasso

Here are four instances when you can break the rules…

The Story, or Storyteller, is Incredible

My general rule of thumb is to ask the donor to give a gift, and tell her what her gift will accomplish, no later than the third or fourth paragraph.

But if the story in the letter is so dramatic and powerful that it’s a good bet the reader will keep reading, you can absolutely work the ask in later.

Also, some nonprofit leaders are so good at storytelling that their letters just draw people in. In that case it’s also OK to delay the ask. But that happens in perhaps 5 out of 100 organizations, in my experience.

Fiscal Year-End

I’m always banging on about how it always works better to ask donors to “help beneficiaries” than it does to ask donors to “support the organization.”

That said, a “Fiscal Year-End Appeal” is as close to a sure thing as you can get.

Each year I’m a little doubtful because asking donors to “help us end our fiscal year strong with a gift today” feels like it violates my core understanding of how fundraising works… and each year it works great.

As an aside, a “shortfall letter” that asks donors to “erase the shortfall” will also always work well. And you can do them more often than you think.

Writing to major donors

As a rule, a major donor is more likely to read more of what you send them than a mass donor is.

So you can take longer to get to the point. You can be more relational. Your letter or email can be more personal.

Don’t ignore the foundational truth that a significant percentage of people will scan, not read, whatever you send them. But major donors are more likely to give you the benefit of the doubt and read more.

The Situation is Extraordinary

The pandemic is a good example of this. The situation was so extra-ordinary that organizations simply could explain how their beneficiaries were being negatively affected, ask donors to help, and money poured in.

The asks didn’t need to be specific. Exactly what the donor’s gift would do sometimes didn’t even get explained.

But any time donors know that a situation is extraordinary and harmful, you don’t need to “follow the rules” as closely to get them to respond. This goes for most natural disasters, whether they are news globally or local in scale.

The Rest of the Time

In the meantime – when you’re not in one of the above situations – develop a practice. Learn as much as you can. Don’t treat any one piece of fundraising as precious.

Learn the “rules” like a pro, and you’ll know when to break them like a fundraising artist.

Donor-Centricity and Boundaries

Steven  |  Thank
Line island.

A quick post about donor-centricity…

Based on my understanding of donor-centricity, I believe most of the critiques are targeting what I’d call “donor-centricity taken too far.”

And anything can be taken too far. No technology or tactic has ever been invented that hasn’t been misused or corrupted. But that doesn’t mean the technology or tactic is bad.

What IS Donor-Centricity?

Donor-centricity is a marketing tactic. The principle is borrowed from advertising and is based on the first rule of human persuasion: you must meet someone where they are before you can get them to go anywhere.

This shows up in fundraising writing. A donor-centric e-appeal might start off with, “You know how important it is to have enough nurses during the pandemic.” Where an organization-centric e-appeal might start off with, “Our nursing program produces the most qualified nurses in the tri-state area, and we’ve grown 140% in response to the pandemic.”

Donor-centricity is also an organizational stance, a “leaning in” towards donors and their needs.

This shows up in how an organization spends its time and resources. A donor-centric organization might send a hand-signed thank you note to each new donor within 48 hours of their donation. Whereas another organization might send thank you notes but “batch” sign them at the end of the month when it’s easier for the signer.

Neither is right or wrong. An organization’s level of donor-centricity depends both on how much it adopts the approach and on how many resources are available.

Organizations have adopted donor-centric approaches over time because they tend to result in increased money raised and increased capacity for the organization to achieve its mission.

However, an organization’s “increased capacity” is not more important than the organization’s staff or beneficiaries.

Boundaries

Organizations should have boundaries around their donor-centric approach.

For instance, an organization can practice donor-centricity and absolutely say things like:

Donor, you are not welcome at our events any longer because you make the younger staffers feel uncomfortable.

I’m sorry, Donor, but we can’t accept your donation and its requirements because that would change our mission.

Staff Member, I see that writing the daily Thank You notes is one of the things causing you to burn out. Let’s change that practice because you are more important than a marketing goal.

Donor-centricity should never harm your organization, staff, beneficiaries, or ability to perform your mission.

Knowing what donor-centricity is (a marketing tactic, an approach) and knowing what it isn’t (“the donor is always right”) can lead to an organization having both the fundraising and relational benefits of donor-centricity AND a healthy organizational culture.

The Recipe for Recall

Steven  |  Repeat
Recipe.

My last post was a formula for how (and why) to get on your donor’s “automatic recall” list.

A formula is a concept – a helpful idea… but it’s not specific and actionable. And our goal here is to be specific and actionable.

So let’s get tactical. Here’s a “recipe” for smaller nonprofits for how to get on your donor’s automatic recall list.

The Classic Recipe

There’s a tried-and-true fundraising communications recipe used by nonprofits for 70 years that really works:

  • Regular relevant appeal letters
  • Regular relevant newsletters

The key here is the “regular” part. I’d say “regular” means at least six mailings over the course of the year, with more appeals than newsletters.

Today, organizations are layering in email fundraising in addition to their direct mail:

  • Regular relevant e-appeals
  • Regular relevant reporting stories

(Notice I’m not mentioning e-news. E-newsletters tend to be organization-focused and, while not negative, tend to be less helpful than Asks and Reports at helping donors reach automatic recall.)

The key, again, is the “regular” part. I’d say “regular” means about eight e-appeals and twelve reporting stories per year.

If you’re at a smaller nonprofit and those numbers seem overwhelming, please don’t worry. You can succeed with fewer communications. Plus, direct mail and email are only a part of your overall fundraising strategy.

That said, those numbers should give you a sense of what’s possible. Larger nonprofits communicate far more often than that, and they:

  • Raise a remarkable amount of money
  • Effectively identify new major donors
  • Experience the opposite of the mythical “donor fatigue” – they see high levels of donor loyalty

Every one of those bullet points is available to your organization. (Your donors aren’t any different from theirs.)

And if you’re sold on the idea of communicating more often, but doing so is a capacity / human resources issue, check out Work Less, Raise More. There are trainings that will help you create effective fundraising in 30 minutes.

Finally, know that the “recipe” mentioned above is a proven system in use today because it’s effective at helping organizations do two things:

  1. Raising money with each mailing (or email) so that you can do more of your mission
  2. Building “automatic recall” over time, which increases revenue over time by increasing your number of major donors and legacy gifts

You can communicate with your donors more than you think you can. It’s a habit you must build.

But it’s a habit you want to build, because donors in motion tend to stay in motion, and donors at rest tend to stay at rest.