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Nonprofit Management
Article | July 29, 2022
It is crucial to keep a keen eye on what the significant figures imply for NGO’s and how they affect their operations. Learn more in detail in the 5 key lessons!
It's alluring to concentrate just on the significant figures that affect the non-profit industry as a whole. However, it's equally crucial to concentrate on what those significant figures imply for certain NGOs and how they may affect your day-to-day operations. The report can be used to learn the following five key lessons.
Lesson One: Small-Dollar Donors Are Being Left Behind
Around 84.1% of contributors give less than $500 yearly to the organisations they support, and just 19% of new donors are retained over time, according to the most recent Fundraising Effectiveness Project data. This indicates that the great majority of small-dollar donors are leaving non-profit organizations.
Lesson Two: There are Winners and Losers by Mission Type
Donors change the emphasis they give to certain missions every year. Donors' giving priorities clearly reflect the legacy of COVID-19 as well as the enduring influence of racial and social justice movements.
The number of non-profits with missions in the arts, culture, or healthcare increased significantly in 2020. Non-profits with an emphasis on foreign affairs, human services, and education, on the other hand, had slow growth or reductions in 2021.
Lesson Three: Corporate Giving is a Distraction
It will become more crucial to engage with people instead of concentrating on corporate ties as businesses modify their philanthropic alliances and employees try to support their preferred causes outside of their workplace's giving program.
Lesson Four: It’s Time to Modernize Bequest Giving
A warning sign that NGOs are not investing in highlighting the opportunities available with legacy gifts is the decline in bequests during 2021. Although any donor can establish a contribution through their estate to a non-profit they are passionate about, there is a frequent misconception that bequests must be customized for significant donors.
Lesson Five: Retention and Acquisition Benchmarks Are Critical
For its key revenue figures, the Giving USA report heavily depends on IRS 990 information. When examining giving trends throughout the sector, that data is helpful, but it is less helpful when attempting to comprehend the behavior of all donors.
It is reassuring to see that when discussing contributors' ongoing support of NGOs, the Fundraising Effectiveness Project's data on acquisition and retention of individual donors was recognised as the primary source. It's crucial to comprehend donor behaviour, and you can achieve this by comparing the donor behaviour of your own organization to benchmarks from the ‘Fundraising Effectiveness Project.’
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Nonprofit Management
Article | July 20, 2022
Barbara O’Reilly was recently featured on our Responsive Fundraising Podcast, where she discussed the three stages that follow an unexpected world event. First, the response phase, where we each find a way to contain the negative impact of the change. Next, comes the recovery phase, in which we all work together to find a way forward. Lastly, the resilience phase, in which we have recovered and emerge better than before. From the standpoint of COVID-19, we all have navigated the response phase, which triggered a far-reaching economic tremor. It’s fair to say that we currently live in the recovery phase, and probably will for quite a while. But even now, as we recover, our focus should be on the next phase: resilience. Of course, the resilience phase will look differently for everyone, and it is hard to predict exactly what it will look like for your nonprofit. However, there are ways for you to ensure that the work you do now will increase your annual revenue and improve donor retention while you recover and build resilience. Here’s how responsive fundraising can make that easier.
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Nonprofit Management
Article | July 14, 2022
Are you expecting all donors to be the same?
If you answered “no…well actually… kinda,” then you are not alone. It’s simple to send out the same fundraising message to everyone. However, you can transform your fundraising when you understand that there are many reasons why a person chooses to donate to a nonprofit. Once you understand the psychology of donating to charity, you can then best appeal to current and potential donors.
Why do Donors Give?
Along a spectrum, there are two extremes that prevent nonprofits from using donation psychology in their fundraising messages. On one end, the person making the ask – the Executive Director, Development person or Board member – assumes all donors have the same motivations for giving that they do. This translates into single-focused messaging that appeals to the person making the ask and to some donors, but not to others.
On the other end of the spectrum when a nonprofit neglects philanthropy psychology, the person making the ask becomes paralyzed. They fear offending donors by asking at the “wrong” time. They focus on external, societal crises, such as the pandemic, wars, tragedies, and make a decision for the donor that this is the wrong time to be asked for a gift. They assume that the donor would be offended if asked.
The Millennial Impact Project studied why donors across generations start giving. Unexpectedly, according to the researcher, Derrick Feldmann, donors first give because they want to belong. They desire to join their friends or be a part of a cause doing the good they wish to see in the world – this is before they understand what the cause or nonprofit is seeking to accomplish. As they gain that sense of belonging and begin believing in the cause, they can be motivated to continue to give when the nonprofit taps into their giving style.
The Seven Faces of Philanthropy was groundbreaking research published in 1994 that has been updated and is still relevant today. In summary, the researchers found that donors give for different reasons. Some donors give because they enjoy the act of giving, especially through events. More donors prefer to donate to local charities or make a long-lasting impact through their investments. Other donors desire to repay or pay forward in gratitude through their giving. Others give because of religious or altruistic reasons. Then, there are donors who see giving as a family tradition and, if applicable, to teach their children generosity. Understanding the donor’s motivations for giving guides a nonprofit in developing the right message, using the right fundraising methods and segmenting to the right group of donors.
How Can you Encourage Your Donors to Give?
Now that you understand the psychology behind making a philanthropic gift, you can implement this knowledge to customize your fundraising appeals.
First, you will need to determine why your donors give. This is done through discussions with Board members, personal conversations with donors, and through donor surveys. It begins with a simple question, “Why do you give to…?” The answers will assist you in creating donor identities; that is, the types of identities or groups where donors wish to belong. Sample identities could be “community leader” or “survivor” or “change maker.”
Next, based on what you learned from your current donors, pick the top two or three donor motivations and associated identities. Alter your current messaging and fundraising methods to these giving reasons. The messaging and methods that inspire your current donors will likely attract more donors.
Begin testing your messaging for these two to three reasons: Which message has the highest engagement in response and donation? This will be your primary message that you will rotate with the secondary messages. As you further explore your donor’s psychology for giving, you can advance to segmenting your communications based on what will motivate groups of donors to give.
Once you understand donor psychology, you will wonder how you missed the clues to why your donors give – and be ready to catch future donors by staying one step ahead of their giving habits.
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Fundraising
Article | December 17, 2021
I do not know about you, but I am now in a full-blown fundraising sprint to the end of the year! I am multi-tasking. Yesterday, I arrived in the office at 7 a.m. and the day did not end until I arrived home at 7:30 p.m. There is not a minute to lose. Beyond many job-related tasks, I spent time identifying, cultivating, stewarding, and especially soliciting individuals, corporations, foundations, associations, and organizations.
I also volunteered last week to help three organizations in their end of year fundraising activities. When you work in the world of social services, all you think about, especially in December, are the needs of others. Why should nonprofits sprint to the end of the year at this time on the calendar?
According to Neon One, there are major year-end giving statistics that show how powerful December is each year. One-third of annual giving occurs in December; 12% of all giving occurs in the last three days of the year; more than 53% of nonprofits plan their year-end appeal in October; November and December collectively represent 77% of the most popular months for making year-end asks; and 28% of nonprofits raise up to 50% of their annual fund from their year-end ask.
In addition, two-thirds of people who make donations do not research before giving; 80% of volunteers also donate to their organization; 60% of nonprofits make up to three touches for their year-end campaign; and direct mail is the most popular medium for year-end asks, followed by email, website, and in-person asks.
The Allegiance Group noted that there are essential things your nonprofit should do at the end of the year. These include holding an annual meeting, electing officers and directors, preparing financial reports, approving next year’s budget, filing IRS Form 990, filing your Secretary of State Annual Report, maintaining a registered agent, obtaining or renewing charitable solicitation licenses, reviewing solicitations and donor receipts, and updating your files and records. Strive to assess and make plans for the new year. Critique your operational results and strive to improve your operational model.
The Tapp Network published five fundraising benchmarks every nonprofit should know to double December donations. These benchmarks include 30% of fundraising occurs in December, 10% of all online fundraising occurs in the last three days of the year, 30% of donation page traffic occurs around Giving Tuesday and early December, and 200% more donations are raised by mobile-responsive as opposed to non-mobile websites.
Also, 52% higher donation values are attributed to December than any other time of the year. Be prepared for the December rush by building email lists and social media support now. Upgrade your sites to be mobile responsive and donation collective during December. Send reminder emails during the last week of December and continue to ask for financial support via social media.
For a Good Cause noted that for December fundraising efforts, which heighten a spirit of generosity, create a year-end customized donation page on your website. Double check that your website is optimized for mobile, so your page is user friendly. Brand your campaign, tweet about the campaign, and link the donation page to your Instagram bio. Because New Year’s Eve is the biggest day of the year for nonprofits, send out multiple appeals that day using all social media channels. Create a fundraising thermometer on your website and keep it up to date. Do not forget to thank your donors by telling them what they accomplished by giving your organization money.
Use December as a time to utilize creative Christmas fundraising ideas. An article by Donor Box provides you with wonderful possibilities in this regard. An estimated 43% of higher income donors (households earning more than $200,000 annually), donate more during the holidays.
Key December Ideas shared by Donor Box include the following:
Create a matching gift program.
Establish a gift-wrapping party to engage volunteers.
Create a soup party for volunteers, wrapped around a donor thank-you call event.
Hold an ugly sweater party where participants pay to enter.
Hold a polar plunge for your nonprofit.
Host a holiday gala dinner.
Establish a Christmas-themed fundraising day.
Invite donors to have a Christmas cookie bake-off.
Have a story telling campaign on social media.
Have volunteers create homemade Christmas cards.
Host a letter to Santa event.
Create a donate page on your website.
An article by National Giving Month noted that if 10,000 signatures from people who believe in charity are sent to U.S. Senators, Congressman, and the White House, a legislative resolution will be offered proclaiming December as National Giving Month. Last year, Americans gave $410.2B to charity, breaking all previous records. Our generosity demonstrates that even in divisive times, our commitment to charity is secure. So far, 10,194 supporters have signed the proclamation and counting.
There are three weeks left in 2021. It is never too late to try something new. See where you are in your fundraising goals. Engage your staff, administration, volunteers, friends and organizational family to help your organization sprint to the fundraising end of year. Everyone needs to own their responsibility for fundraising success, and it starts with your CEO. The sands of the hourglass are continuing to fall.
Use whatever motivates your prospects to give, including tax incentives, recognition, personal satisfaction, feelings of joy through giving, and sharing of organizational stories. You will have time for a brief breather next year. December is not the time to pull back your energy and efforts. Most people are in the spirit of giving now and you need to tap their brief feeling for total success to occur. Do not waste one second of your time on activities that do not produce solid ROI (return on investment).
Make every fundraising day count in December. It will be gone before you know it.
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