The Annual Giving Exchange

Can a gift be “too small”?

Ask this question to a room of development officers and I bet half of them would say “yes” and half would say no.  While there may not be a right answer, consider the following questions to determine the best answer for your organization.

• Are you asking your donors to support your organization “because they can,” or are you asking them to invest in your organization because they believe in its mission?  I once asked a volunteer how he decided on the size of his annual fund gift.  He told me that he always gave “until it hurt” because it made him feel part of the cause.

• Do you want to make a statement about how many supporters you have?  Barak Obama’s fundraising strategy encouraged donations of all sizes and mobilized a large network in the process.

• What are you doing to establish long-term expectations for your donors?  Be careful not to set the bar too low.  Old habits die hard, even for the most generous people.

• Who is more important, a young $5 donor who is still defining their values or an elderly donor who has given $100 in each of the past 30 years?  Yes, getting someone in the habit of giving early can have a big payoff down the road, but keep in mind that loyal donors are often your best planned gift prospects.

• How important is efficiency in your organization?  Many (often smaller) organizations need to consider the cost of processing small gifts.  Long-term strategies mean nothing to a nonprofit that is forced to close its doors because it can’t afford to pay the rent.

Juniata College in Huntingdon, PA had fun with this question when some of its recent graduates produced a musical video parody called “Just Five Bucks.”  Click here to watch it.  Then ask yourself, what size gift is “too small” for your organization.

There’s a buzz surrounding Dartmouth’s new “wacky business model” video.  In it, the University openly accepts criticism of its inefficient business model arguing that efficiency is not the only (or best) way for a nonprofit organization to fulfill its mission.

In our annual fund appeals, we often focus on the needs of our organization without explaining why those needs exist.  Need by itself is insufficient.  We have to educate our donors so they understand what’s behind our needs and, more importantly, what is gained when those needs are met.  We shouldn’t be afraid to let our donors look under the hood of our organization at the financial engine that moves it forward – even if doing so reveals imperfection and inefficiency.

The nonprofit industry is sometimes called the “Third Sector” because it fulfills a purpose that the other two sectors of society (market and government) are not able to fulfill on their own.  To that end, nonprofits receive certain benefits (i.e., tax exemption) and are not expected to return monetary profits to shareholders.  But nonprofits can learn a lot from observing other sectors, just as the other sectors can learn a lot from observing nonprofits.  All three sectors are unique, but they are also interdependent.

Click here to watch Dartmouth’s video.  It hits home at the core challenge facing nonprofits today, which is how to fulfill a mission that isn’t measured in dollars and cents.  Value comes in many forms.  Money is just one way to quantify value.  You don’t need a great looking video to communicate this to your constituents.  Of course, it doesn’t hurt to have one either.

Knock knock. Who’s there? Charity.

Sometimes that’s where the conversation ends. Why? Because, in some people’s eyes, nonprofits only call or write when they’re asking for money. Part of our job in annual giving is to overcome that perception. Surveys can be a helpful tool.

While many fundraisers use surveys to better understand the interests, behaviors, and perceptions of donors and prospects, many overlook their added value. For example:

• Stewardship. Asking someone for their opinion (rather than their donation) lets them know they are invested in the success and direction of the organization.

• Data collection. Surveys can be an efficient and effective way to update donor contact information (address, phone number, e-mail, etc.) as well as demographic and biographic data (marital status, children, employer, etc.).

• Prospect research. When you’re looking for specific answers, don’t be afraid to ask specific questions. Surveys can help identify people who might consider including the organization in their estate plans, meeting with a gift officer, or serving as a volunteer.

There is a lot to consider when planning (or even thinking about planning) a survey. Timing, budget, audience, and method of data collection are important, but start by identifying your overall goals. Ask yourself if you’re trying to identify new donors or to learn about, steward, and cultivate current ones? Hopefully, all of the above.

A commonly overlooked opportunity for fundraisers exists in LinkedIn.

While it functions primarily as a tool for job seekers and employers, Linked-in is the most undervalued of the major social media websites – especially when it comes to annual giving. With 41 million members from 200 countries, LinkedIn adds a new member every second.

By organizing and expanding professional networks, LinkedIn helps its members find jobs and recruit talent to their organizations. Members can join groups within LinkedIn based on a common interest or experience. Group members are then able to communicate with one another by posting messages (questions, ideas, news, etc.) on a discussion board. These messages are sent via e-mail newsletter to group members on a regular basis.

Try this.  Find an existing group in LinkedIn that is representative of or related to your organization (i.e. Alumni of XYZ University.) If a group does not already exist, create one. Join the group yourself or find a group member who supports your organization. Then post a message on the group’s discussion board that promotes your annual fund.  For example:

This year’s XYZ Alumni Fund campaign ends on June 30th. Support your school today by making an online gift at http://onlinegivingpage.com

Be concise with your messages and promote something specific such as a gift challenge, an ambitious goal, or an approaching deadline for your annual fund. This tactic can serve as a great compliment to your other activities and marketing programs. And, it won’t cost you a penny.

This week marks the 20th anniversary of pro-democracy protests in China’s Tiananmen Square that culminated in a massacre in which hundreds of people died.  For many, this is a time to reflect on the idea of freedom, remember those who lost their lives, and consider the progress of human rights around the world.

Several days ago reports surfaced that government censors in China blocked the accounts of Twitter users leading up to the anniversary of Tiananmen Square.  Although these reports have not been confirmed, it raises some staggering questions about the power of social media as a way to mobilize and communicate with people.

Meanwhile, annual giving professionals struggle to understand how, if at all, Twitter can help them raise money.  Part of the problem is that many of us see Twitter as a wildfire.  What we should be doing is using it as a lighthouse.

The Chinese government was worried about the wildfire in Twitter, that it is able to rapidly and uncontrollably spread ideas.  What we, as fundraisers, should be thinking about is how it can help our supporters focus on what’s most important to our organizations.

Too often organizations use Twitter to update their constituents on anything and everything all the time.  This is overkill, no different than too much direct mail or too many phone calls.  Keep in mind that Twitter users are often following hundreds (if not thousands) of entities.  Too many updates can actually harm the very relationship you’re trying to build.

Instead, try to be a lighthouse.

Understand that your supporters have chosen to follow your organization because they want to be aware of its key activities and priorities.  Be selective and discrete about what you tweet.  Make your tweets stand out, so that your supporters are looking for them instead of looking past them. And, from time to time, use Twitter to remind them that you rely on their support…with a link to your online giving page of course.

What is being said is often less significant than how it is said.  Who is saying it, however, is the most significant thing of all.

Choosing a signatory for an annual fund appeal is one of the many important decisions that we make each year.  Too often, though, we make that decision based convenience (Who will sign this letter without giving me a giant headache in the process?) rather than who has the most effective voice.  The recipients of our letters and e-mails often look to see who it is from before making the decision to read on, so be sure to choose wisely.

In times of economic uncertainty (now is one of those times) the person speaking on behalf of your cause is critical.  Yes people want to support good organizations in need, but people also want to be part of something larger then themselves.  Uncertainty enhances this feeling in people.  Giving to your organization can provide them with the reassurance that they belong.

If you’re not already doing so, consider the value of having the chief of your organization (i.e. President, Executive Director) sign your next annual fund appeal.  Beyond being a solicitation, the appeal might provide them with an opportunity to speak about that state of the organization.  It could also serve as a good way to introduce your chief to those who might not otherwise even know their name.  That, in and of itself, can make someone feel that they belong to a group.

Involving your chief in an appeal will also force them to take a closer look at your annual fund program.  While that may not necessarily sound comforting to you as the program manager, the longer term benefits of their involvement will outweigh the headaches and heartaches it causes you in the short term.   You may find that speaking on behalf of the annual fund makes them feel responsible for its success.  That’s a very good problem to have.