THREE WAYS TO RAISE MORE MONEY

As you probably know I enjoy reading articles, tips and hints from Market Smart, so here’s another one – I’m sure you’ll gain some insights from this.

 

THERE ARE ONLY THREE WAYS TO RAISE MORE MONEY

Every nonprofit organization needs more of two things: time and money. Okay, every organization (nonprofit or for-profit) could use more of those two resources. Hey, now that I think about, I could use more of those two myself…

Time and money are the most valuable resources in the world, and for nonprofits the impact of having more of either can be immeasurable. Of course, time is finite — we all are limited to just 24 hours in a day, but money (funding) is theoretically uncapped, and having more of it generally equates to having a larger impact on the world. That’s not to say that uncovering efficiencies, prioritizing activities, and increasing productivity are all for naught (they aren’t), it simply means that “saving time” plays a direct role in increasing funding. If I’m more efficient, I can raise more money.

Fundraising professionals power the financial engine that sustains millions of nonprofits across the globe, but they all face one common question: how do we raise more money? Of course such a broad question can’t be addressed in a blog post, nor should it be. Increasing the “growth in giving” is an issue worthy of industry boards and committees, not blog posts or ad hoc analysis.

Yet, as with most things, there is one simple answer to this question that can have a resounding impact and actually make a substantial difference on your funds raised. Yes, the answer to the “how do we raise more money?” question is incredibly complex, but no that doesn’t mean there isn’t anything you can do today to affect it.

Let’s start with a universal truth; there are only three ways to raise more money. Now, before you scroll to the comment section of this page and begin typing your, “there are more than three ways to raise money, bozo!” comment, please bear with me.

Any organization, nonprofit or for-profit has only three ways to increase the amount money they receive. They could:

  1. Acquire new donors/customers
  2. Retain existing donors/customers
  3. Monetize their donors/customers

It’s really that simple.

I’ve appended “/customers” to each of the three strategies above for a reason. As you continue reading this blog post we’ll address each strategy with both a nonprofit example and a for-profit example. You’ll quickly realize that for-profit companies are employing each of these three strategies on you every day.

 

Keep reading here

How Long Does It Take to Start a Major Gift Program?

Came across the following on veritusgroup.com and thought was worth sharing, some great insights/pointers.

It’s a serious dilemma.

The organization needs the money; they have the donors to deliver the money, but there is no major gift strategy in place to secure the money. This confluence of need, opportunity and planning usually results in a lot of impatient leaders.

Just last week I sat in a meeting where a manager was visibly upset at the slow pace of revenue generation. When I tried to explain that relationships take time, she brushed me aside and said: “Look, all you have to do is ask.”

And therein lies the organizational problem for many major gift programs. Management needs the money, and major gift people are told they need to deliver it “right now!”

This is a path to certain failure because the MGO, in this type of hostile and urgent environment, will focus on the money rather than helping a donor fulfill her passions and interests. And we all know that a focus on the money is a sure way to alienate a donor.

Reasonable managers and leaders know that good relationships take time – that you don’t just pounce on a donor and squeeze the money out of him. But these same managers often ask Jeff and me how long it should take to gain traction in a major gift program. “How long,” they ask, “does it take to have a fully functional program in place?”

We think it takes a minimum of 18-24 months to start a major gift program and have it become fully functional. Why so long? There are several reasons:

  1. The organization needs to hire the right MGO. This could take six months when you consider the time it takes to agree on the job description, get the proper authorizations, search for candidates, interview and vet the candidates and then finally hire them. I haven’t seen this process take less than four months. So let’s say it takes four months –although many times it takes longer.
  2. The MGO needs to qualify donors for a caseload. Why? Because only 1 in 3 donors who meet the major gift criteria will actually want to talk to the MGO. So the MGO has to go through a labor-intensive process to find 150 donors who will relate to him. This step alone will take 6-8 months. Let’s say six, even though that is being generous.
  3. Relationship building takes time. While the MGO will qualify donors early in her tenure with the organization, 8 to 10 months will have passed before she actually starts engaging seriously with donors. And building relationships (as you know) takes time – more time than most managers think it will take.

Keep reading full article here

Getting to the Decision Maker

Most of us hate having to go up the ranks to speak to the person we need to that is ultimately responsible for making the “decision”.

But, in reality going up the ranks can be a plus.

This article from Infinity Sponsorship is a great read How having to work your way up to the sponsorship decision maker can, in fact, be the best approach!

Take the time to read it, I’m sure you will gain some insights.

Are Charity Campaigns Good for Business

We see them almost every week some company pledging support for an organisation, or individual in the community that needs support.

But, what I often wonder is whether the support being offered s genuine or just some PR stunt; maybe I’m being picky but I do tend to feel that some of these “campaigns” are merely a PR stunt, as way a business can be “seen” to be doing good in the community.

Perhaps some are genuine, and I’m doing them an injustice by casting doubt on the authenticity of their support. If so, I’ll apologise.

But when we think about how a business can show support, it’s not just about the dollars, it’s about whether the business has bothered to ask their staff about what support (and who too) they would like to be associated with.

Remember Pay Roll Giving? This is a way that a company to show (and give) support, by allowing staff to select an organisation to support and have a sum deducted and paid directly to the organisation each pay day; and the business can also give support by allowing staff time off to volunteer.

If you’re in business and want to support organisations in your community, don’t treat it as an “add-on” build it into your business model.

A business should decide what they want to do by way of supporting an organisation or organisations in the community. A good way to start is by putting together a listen of what’s important to the directors, perhaps someone did something for you when you were younger, so you want to give back in a similar way.

Maybe someone close to you suffered from some ailment, perhaps you want to support those who gave this person the care and support they needed.

Perhaps writing a list of people, organisations that have helped you, your family that have had an impact on your life. Often a cause is that is close to you personally, the easier it will be to make a decision, but don’t forget those working with you, let them have some input before making a final decision.

See also Ask your staff before making that donation

 

 

 

Volunteering, Why?

Why do people volunteer? There’s a myriad of reasons people opt to volunteer in their community.

The reason can range from giving something back to the community, giving time to an organisation that has helped them either personally or may have offered assistance to a family member.

Others volunteer to feel valued and part of a community; or to perhaps learn new skills.

There are cases where people may be directed to offer service in the community; often this is something ordered by a court. However, there are also times when a person who is receiving a form of Government assistance (benefit) may be asked to give time to a community organisation; in this instance, it is more than likely so as the person can gain a new skill and to add something to their CV.

I have even heard that some people volunteer as a way to do something different, to give them a break from their job. There’s some in this group who volunteer to bring their business/career skills to an organisation (pro bono).

Some people volunteer because they feel alone in their life, so a chance to volunteer gives them the chance to meet new people and a chance to socialise. And, if they are new to an area it allows them the chance to get to know others in their community.

Volunteering has been seen too as a way to improve on mental and physical well being.

Do you volunteer, if you do why?

No Audited Accounts

Any New Zealand organisation registered with Charity Services must provide an annual return, which among other things outlines income and expenditure for the previous period. Most organisations provide this information in a timely manner, but there are others who delay, delay and delay some more.

What’s more there are some who don’t have their annual accounts audited, not just for one year but almost never.

Sure, it’s their ”right” to elect to have accounts audited or not, but does this have the potential to cast doubt over the authenticity, credibility of the organisation?

Would seeing an organisation you have a connection with not furnishing their returns in a timely manner and not providing audited accounts make you think twice about donated your hard earned money?

Should there be a limit on how many years an organisation canget away without providing audited accounts?

Does your organisation ”vote” not to provide full audited accounts, has this had any impact on the way you are perceived by supporters? Has it impacted on the level of grants, sponsorships etc that you may have tried to obtain?

I’d be keen to hear your stories, experiences.

Homeless Being Moved On

I’ve talked about homeless – rough sleepers – before, but what I have learned in the last few days has made me angry.

Everyday there is a group of homeless/rough sleepers I see and stop and have a chat with, but now I hear they are being moved on from the area they felt safe in, an area they respected – sure they did leave a bit off clutter – their possessions – while they were off doing what they do during the day.

But, it seems the powers that be have made a decision and have removed these possessions. Thankfully they were collected by the police and one would assume are safe.

Imagine, you get home and all your possessions are gone, you haven’t been burgled, but someone thought it was an “eyesore” – you’d be gutted. Imagine then how the homeless people who went back to their place and saw their things gone. I’d say they would have been devastated.

Yes, some – and I mean some, homeless people are a pain, but in the main those I have met and chatted with are really no different to you and me, they just don’t have a roof over their head – and yes, a job.

We need to be looking out for, and after, the homeless and rough sleepers in our community. Sure there are agencies out there, but if you take time to speak to even only a couple of homeless people you will soon learn that they have had little help – besides some kai, a shower etc from these agencies, they don’t see the advocacy, the need to know and see what these agencies are trying to do for them.

Every Monday Auckland Central Library runs a free movie session, and there’s tea, coffee and biscuits – I’ve seen independent counsellors etc there, but never once seen anyone from any other “agencies”, mmm.

There’s also a homeless reading group, again held at the Auckland Central Library, again from what I have been told there’s no one really from the social agencies at these to talk with people about their needs and what services are available.

What can we do? Shite, that’s a big question – we can stand up for our homeless, yes, OUR, they are ours, they are part of our community. They are, as I said really no different to you and me.

I can see you scratching your head, thinking “well they’re all druggies, alcoholics”. Sure, some are, but not all of them.

Get to know some of the bods on the street and you will begin to learn more about them, their situation and what they are really like.

Make it your goal this coming week to stop and have a chat with at least one homeless/rough sleeper.

Sponsorship Revolution

Thought I had shared and talked about this before, New Sponsorship Revolution (Abby Clemence), if you’re in the charity sector and you haven’t read it, click now.

I’ve often said there are better ways that charity and business can “work” better together. With the right business connection, savings can be made, other income streams can be opened and more.

Read New Sponsorship Revolution now.

As usual your comments, thoughts or other are welcome.

Old Pugilist beat up

It’s not often I rant about an issue per se here, but after reading what Bob Jones had to say in the media yesterday (Tuesday 17 Jan 2017) I just can’t hold my tongue, or should that be my fingers.

Bob Jones, said in a report to media, as reported in the NZHerald that homeless people were essentially scum and worthless lazy buggers, sadly he doesn’t understand the reality and perhaps before he rants he should take timeout and sat and talked with some of the people sitting on streets asking for money.

I’ve spent many an hour speaking with homeless and beggars, not all homeless are beggars and not all beggars are homeless, they each have their own reason (story) for why they are where they are.

People like Bob Jones, and others who only want to moan, rant and say that people sitting on streets asking for money are scum and, more recently that begging should be banned, need to get their arses off their leather seats, and walk a mile (ok, a few metres) in the shoes of some people living off the street.

Unless we understand the whys of why people are living on and “off” the street then we can truly know what’s happening and how we can help.

We can all help, even if it is simply saying hello – don’t judge lest thee be judged.

There are people living on the streets who want to work, but because they don’t have a fixed address they can’t get jobs, because they haven’t been able to get a job for a few years they can’t get a job … drugs and alcohol are not the only reason, race is certainly an issue, but not the issue they are where they are at, the reason they are where they are at where they are is because of their race .. sadly we are still a racist country.

Yes, I’m angry, I’m angry because people like Bob Jones get to vent about people less fortunate but less fortunate people don’t have a voice, we need to be their voice, we need to sit and listen to them, to hear their stories and help where we can, they’ve been beaten down enough..

We need, nay, we must help lift those in need, we need to put our hands out, open our hearts do what we can to help.

 

 

 

Donor Remorse

Your income isn’t where it was this time last year, you check donations, look at your donor database and see that you have a number of donors who haven’t given in the latest round of fundraising. Why?

It could be that you have several donors suffering donors remorse. Yes, this is a real thing, it’s akin to buyers remorse; something you’re probably personally aware of (did you really need that new pair of shoes, that new suit or that splurge on single malt whiskey?)

Donors give for a variety of reasons, and they stop giving for a variety of reasons; one reason some stop giving – is – donors remorse; yes it is a real thing.

Maybe you’ve experienced it on a personal level when you have given something, and almost as soon as you have dropped the donation in the bucket or envelope you have a pang of regret – remorse, and question why you did it.

There’s a few reasons for donors remorse, some people experience it after being prompted by a friend to support a cause, a relative was assisted by an organisation and asked you to make a contribution or, perhaps someone you know had a child selling something to raise funds for a school trip.

Donors remorse is a real thing, it’s something though that organisation probably don’t plan for but they should have some way to factor this into their planning. If someone gives today and later “regrets” it; the chances of them staying around and supporting in the future is very unlikely, yet they’ll still expected to by the organisation, the organisation will likely add them to the database, they’ll receive mailers etc – all at an expense to the organisation, with a very very low probability of a second or subsequent donation being made.

Quite likely the amount given initially will be less than what the organisation will expend to get subsequent donations.

Organisations spend considerable time (and money) on donor retention, but when a donor has remorse this expense is wasted. So a way has to be found to make sure the level of donor remorse is minimised.

Don’t be airy fairy in what the donors support will mean, give real examples of how it will make a difference, personalise how their giving will make a difference. If needed and you’re able to use real pictures and real names – “Lucy will have a better chance … “

When people are asked to support a real need has to be given, a picture painted; something that will stick with the donor – you want them to stick with you, so make sure the image you paint sticks with them.

All the training in the world won’t make a difference to how much you can raise – and maintain, if those making the ask are confident, competent and above all using all the tools you have given them.  Monitoring who information is used isn’t prying, it’s an investment, don’t be afraid to use “secret shoppers” – you’ll get real world feedback, not only on how your campaign is going but on how effective those making the ask are doing it and coping.

Are you going to let donor remorse hit your bottom line and impact on year on year giving?

See also Breaking the Silence Around Donor’s Remorse