How do you inspire a donor to make a transformational gift?

Find out what inspires them, from their heart.

And you might start with making sure you are clear on what inspires you and your organization.  Here are a couple of activities that you can do at an upcoming staff meeting or Board meeting.  Ask:

“What would the world look like if we were accomplishing our mission 100%?”

This is the kind of world that you really want.  Your organization was created to make an impact on the way the world is today so you can make it more like this ideal.

After taking some time to share everyone’s ideas about this amazing world where your mission is accomplished 100%, then ask everyone:

“If we could have it any way we wanted it – with unlimited resources – what would our organization look like and be like so that we could achieve the dream of our ideal world as effectively as possible.”

So now you have two dreams – one is a dream of the ideal world and the other is a dream of the ideal organization, which could help create that ideal world.

These conversations usually produce some very cool and inspiring ideas.

Next, engage one of your donors with these same questions.  Don’t tell them what you and your team came up with right away.  Let them answer first.  Ask them what they think of when they dream a world where your mission is accomplished 100%.  Then ask what they think your organization would look like ideally to make that happen.  The donor’s answers to these questions will give you clues to what inspires them.

Once you find what inspires the donor then you can build on these conversations.  How would they like to contribute to that inspiration?

Personally, I have seen these conversations convert a “never donor” who became a $50/year donor, then $1,000/year, and ultimately made a $6.4 million bequest to an organization that had an annual budget of $1 million.  That is a transformational gift.

Most transformational gifts have inspiration from the heart at their core.  Find out what inspires your donors and show them a path to transform your Mission Impact.

Regardless of their purpose, the needs of people and causes largely outstrip the funding they have to fill those needs and make even more of a difference.

Recent research in Harvard Business Review provides some suggestions that nonprofits can explore to raise more money for their missions.

*Turn Verbs into Nouns.  Instead of asking people to “donate,” ask them to be “donors.”  I know that it sounds like the same thing, but the research shows that asking people to be “donors” works better.  For example, they went to a school where some kids were asked “to help” and others were asked to be “helpers.”  More kids responded to being “helpers.”  The researchers say this is because you are giving people the opportunity to confirm an identity about themselves that they like.

*Give People a Choice.  I know this one sounds a little crazy, but I suggest you actually experiment with it.  The researchers did some work with the American Red Cross.  Rather than asking people to donate directly, they were given a choice.  They were first asked if they liked “chocolate or vanilla” better.  Then they had the opportunity to make a gift.  It seems to engage people more.  Or you can try asking a question, e.g. “Yes or No – Is it too early for Christmas Music?”

*Invoke the Power of You.  Instead of “the children and families at the Ronald McDonald House will appreciate your support,” try “the children and families at the Ronald McDonald House need you!”  Using the person’s name is even better, if you can do it.  “We need you, Rob.”

People want to support others and make a difference.  The way we communicate this can remove any barriers that might exist between what they care about in their hearts and what they actually do.  Try out some of these communication ideas and make even more of a Mission Impact with the additional funds you raise.

*Ideas for this blog taken from: Berger, J.  “How Nonprofits Can Encourage Donors to Give More,” Harvard Business Review online, November 30, 2021.

A “culture of philanthropy” is a culture where askers and givers know that they are seen as human beings.  “Askers” respect “givers” and want to know what they care about.  They are not interested in just “extracting funds” from another person.  Leaders in nonprofits can do a lot to model, and expand the opportunities for, that appreciation.

Here are three concrete steps that nonprofit leaders can take in the next month to promote a culture of philanthropy:

*Dream & Share.  Write a one-page summary of a growth initiative, new program, or wild idea that you want to tackle in the next year.  Ask board members to each call five supporters and say:

“We have a new idea that we’re excited about, but we’re not sure we got all the details right.  We would like to get your feedback because [you are a successful entrepreneur OR you have so much experience with non-profits OR you have had such good insights about this organization in the past].” 

At the end of those conversations, you will have a stronger plan, better understanding of your top donors, and a head start in asking each of them for a special gift.  And your board members will have done a valuable service that is not fundraising.

*Thank You Phonathon for Donors.  Ask each of your program leaders to set aside an hour to call top donors to say “thank you for your generosity.”  Everyone likes to be thanked.  If someone doesn’t answer, a message on an answering machine is great.  Your donors will be happy that they were noticed, and your program staff will be empowered by the understanding that there are people who care a lot about what they do.

*Thank You for Staff.  Take the fundraising team out for coffee.  Ask what you can do to make their jobs more successful. Ask what you can do to remove divisions between them and their colleagues.  Ask what extravagant success would look like.

Showing true appreciation of others – donors and staff – can help build a culture of philanthropy into something even much more – a culture of mutual generosity.

But “why” do you need it?  This is more than a “case statement” question.

Fundraising needs should be driven by an overall strategy for the organization’s future.  Here are some of the key questions a nonprofit should answer before getting ready to raise money.

What impact do you want to make?  What difference do you want to make for the planet and/or for others?

What are your dreams of the kind of impact you would make if you could have it any way you wanted it?

What programs and services do you need to make that impact?

What kind of staffing do you need to make that impact?

Use the answers to these questions to create strategic goals for your organization for the next three – five years.

THEN, finally, it is time to talk about how to fund the effort.

If you do this kind of preparation and put together a “case for support” that connects your dreams of impact to the funding you need to make it happen – you will capture the hearts and minds of those who have the capacity to make a difference with you.

Dream, strategize, and fundraise.  Yes – No Money, No Mission.  But, No Strategy, No Money!  And no Mission Impact!

This has been a major theme that we have heard this semester from numerous philanthropists and foundation executives visiting the graduate level Nonprofit Fundraising course that my colleague Dr. Bob Grimm and I are co-teaching at the University of Maryland this semester. The head of a family foundation who recently visited class said:

“We want a side-by-side relationship, where we both – together – have the same aim of making a difference in the world.  Your programs and our money.  We both need one another to meet our common goals.”

This means taking the time to get to know a prospective donor well before asking for a gift.

“Most fundraisers don’t think to ask prospective donors about their ideas or what they are trying to accomplish with their philanthropy,” says Ann Ziff who made a $30 million gift to the Metropolitan Opera.  “They miss an opportunity to gain potentially valuable input.”

The Ziff quote is from a book by Ronald Schiller, Belief and Confidence: Donors Talk About Successful Philanthropic Partnerships, based on interviews Schiller conducted with more than 50 major donors to various nonprofits.  Schiller says:

“Fundraisers spend way too much time strategizing about how to ask and far too little time on creating an environment in which philanthropists can become informed and deeply engaged partners.”

What else do donors want?  How about the little basic things, as pointed out in a recent article from The Chronicle of Philanthropy*, such as:

*Do your homework about the donor before your first meeting; and make sure you know how to pronounce their name!

*Be sure to plan to arrive well in advance so you are not late.

*Put your phone away and focus on the conversation with the donor prospect.

*Be a thoughtful listener.

*Send a written thank you note very soon after the meeting.

These are basics – but often overlooked!

Nonprofit leaders and fundraisers would be wise to keep all of these things in mind as they build relationships that result in collaborative opportunities to make a Mission Impact for the world.

*“What You Should – and Shouldn’t – Do When Meeting With a Donor,” Isa Catto,  The Chronicle of Philanthropy, January 23, 2018.

Invest More in Fundraising!

The theme of our course is “No Money, No Mission” – and I know we all agree with this.  But our student teams are finding that most of the nonprofits they have evaluated can do MUCH more to raise more money for mission if they devote more resources to fundraising.

More Staff.  There seems to be a reluctance to hire more staff and devote their efforts to fundraising.  Perhaps this is due to concerns for overhead.  If so, organizations should check out The Overhead Myth web site for ideas on making the case for this.  More time spent – especially on major gifts – can be a big payoff for most nonprofits.

More Board Involvement.  Based on the small sample of nonprofits, Boards can be much more involved in giving and asking for gifts – especially making personal asks.  Training, of course, will be needed for this.  But, we need Board members going out to the community to represent the cause and ask for support.

We are not going to make significant increases in the funding that nonprofits desperately need without investing the resources needed.  We simply cannot make more of a Mission Impact without the funding.

Many of us were very pleased in 2013 when the BBB Wise Giving Alliance, GuideStar, and Charity Navigator launched The Overhead Myth campaign – their effort to dispel the notion that nonprofits should operate with very low staff and infrastructure expenses.  I believe that slow progress is being made in this arena.  But now the Wounded Warrior Project controversy has come along to muddy the waters for the general public.

In late January, both CBS news and The New York Times published stories that criticized WWP for exorbitant spending on staff conferences/travel and that overhead that is too high.

I don’t know about you, but my Facebook page was on fire with so many people declaring they would never again give to WWP.  Even Gary Trudeau trounced WWP in his weekly Doonesbury cartoon. (And when he takes time away from mocking his favorite target, Donald Trump, you know you are in trouble.)

The WWP Board fought back by conducting its own internal investigation into the allegations.  They found that many of the accusations were not true.  However, they did report a need to improve staff travel policies.  And they announced that “the Board determined the organization would benefit from new leadership.”  The CEO and COO were removed from office.  But no further explanation was given.  Hmmm.

Soon thereafter, a report from The Charity Defense Council – a group which seeks to educate the public on the realities of nonprofit finances – issued a report that is critical of the news media coverage and also of the WWP Board not giving a full explanation of why the CEO & COO were fired.

But then, a few days after the CDC report, Nonprofit Quarterly reported in an investigation that WWP made a $150,000 grant to CDC in 2013-14 that was 85% of CDC’s revenue for the year.  And that the now former WWP CEO is on its advisory board.  What?!?

What is going on here!?!

First, there is clearly a lack of transparency, full disclosure, and accuracy on the part of a lot of people – the news organizations, WWP, and CDC.

Next, if you read all of the news accounts, there is a smack of arrogance from both the WWP Board and former CEO as they defend themselves.

This is not the way to build public trust!

The Point: as we seek to educate the public about the importance of adequate infrastructure (not overhead) and staffing, we need to understand and appreciate the general public perception that expenses in nonprofits need to be kept low.  We need to respect the view even as we engage it and work to change it.  We need to be transparent and cannot be tone deaf to public perception.

It is going to take patience and time and lots of work for us to educate the public on the value of appropriate salaries for quality staff and solid infrastructure for nonprofits.  If we do it with candor and transparency I believe we will get there.

Meanwhile, we shall see what comes of WWP.  All I know is that there are many, many wounded veterans in our country who need assistance. And we need to figure out how to appropriately serve them as they served us.

This semester I am co-teaching a graduate course in Nonprofit Fundraising with my colleague, Dr. Bob Grimm, who is the Director of the Center for Philanthropy & Nonprofit Leadership at the University of Maryland.  One of the books we are using for the course is The Generosity Network, which I highly recommend.

One of the themes of the book is that when donors are engaged as partners and time is devoted to developing relationships between the organization and the donor, amazing results can occur.  Rather than taking a more traditional “transactional” approach, the book encourages developing “transformational” relationships with donors.

One of the recommendations of the book is that organizational leaders should be prepared to share “stories” about the organization and those they serve in order to more effectively communicate the mission of the organization.  This did not come as a surprise to me as I think effective fundraisers have been doing that for years.  But it is a good reminder.

A bit more unique, however, is the book’s suggestion that we – anyone who does fundraising – should be prepared to tell our personal life stories of our connection to the nonprofit with donor prospects.  And we should ask our donor prospects to share their life stories with us.  Reading this made me realize that I tend to be more traditional and reserved when it comes to sharing my life story with others – especially a donor prospect!

But I think that the point is that we should stop thinking about donor prospects as donor prospects and more as “people” who happen to be donor prospects.  And we should attempt to engage and build a relationship first, as people, before we start talking about mission and money.

Certainly, developing relationships with donors takes time, and you won't have the time to do it with everyone.  But for those for whom you can put in the time it can lead to transformational relationships and transformational gifts.  And it starts with that human connection.  What’s your story?

This blog is dedicated to the first wave of Baby Boomers (born 1946 – 1964) who will turn 70 years old in 2016.  Are you ready for them?

Much has been written about the importance of organizations getting ready for the Boomers to retire – such as my recent blog.  But are you ready in other ways?

The Baby Boomers represent what will be the healthiest and wealthiest retirement generation that America has ever seen.  You need to be prepared for them as:

*Volunteers & Board Members. Once they retire, most Boomers will still be quite healthy and they are altruistic.  They can be exceptional volunteers and Board members.  But, you need to prepare the right kinds of volunteer opportunities for them.  Most Boomer retirees I talk with want to be given volunteer work of real substance.  These are not people who want to stuff envelopes.  You need to consider how they may serve your nonprofit as “quasi-staff” so you can tap into their talent and experience.

*Donors.  Nonprofits have the opportunity to develop real relationships with Boomers.  They will be less interested in just writing a check.  Let them get close to what you do, involve them, and take a long term approach to their philanthropy.  They will live for many years beyond retirement and your nonprofit could be their favorite new cause.  But you need to tailor your approach to them and their lifestyle.

*Service Recipients.   For the Boomers who are well off and healthy, nonprofits can look at creating special “fee for service” programs for Boomers – especially in the areas of the arts, education, and health.  Special exercise programs for Boomers are popping up in many places, for example.  For those who are not so healthy or well off, nonprofits can expect a surge in service needs in a variety of areas from hunger to addiction to transportation to health care.

Get ready for the Boomers!  There are a lot of them.  Their birth year will peak in 1957, so we have years to go until the largest cohort reaches 70.  The aging of this generation represents opportunity and challenge for making even more of a Mission Impact.

What common ground can a rabbi, an imam, a priest, and a minister find about philanthropy especially when the conversation is moderated by Washington Post super journalist, Sally Quinn? As it turns out – a lot.

The question posed to this 2015 Bridge Conference panel of clergy representing three of the world's great religions, Islam, Judaism and Christianity, was "What impact does faith have on philanthropy?"

The tone of the panel discussion boiled down to three words or phrases:

*Common ancestry

*Grace

*Giving as a sacred act

The Power of a Common Heritage: Rabbi Danny Zemel, Temple Micah, pointed out that Judaism, the root faith for both Islam and Christianity, encouraged giving more than 4,000 years ago.  In fact, "tzedakah" refers to teaching Jews the obligation, not choice but obligation, to give. Imam Yahya Hendi, Chaplain at Georgetown University, shared Islamic tradition that uses similar words, "zakat" and "sadaqa" that traces back to a powerful and timeless directive: "And remember we took a covenant from the Children of Israel (to this effect): Worship none but Allah; treat with kindness your parents and kindred, and orphans and those in need; speak fair to the people; be steadfast in prayer; and practice regular charity.”

Grace: "Grace" for Jews and Christians is that unmerited, unearned favor that gives us the ability to do good works, including philanthropy. Muslims also hold that our power to do good works is because of God's grace. What better example is there to describe grace than the panelists’ conversation around the question of whether they would support each other's causes. It was here that Mgsr. John Enzler, CEO of Catholic Charities, pointed out the generosity all faiths, Catholics, Muslims and Jews in providing financial and spiritual support to the National Cathedral after it suffered a devastating earthquake in August 2011.

The Sacred Act of Giving: The Rev. Dr. Dennis Perry, a United Methodist clergyman, reminded all that when we do those things that exemplify the best of life, the highest values of life, we call them "sacred" or "holy". Those are labels that elevate an action to the level of the divine. Philanthropy, giving, is just such an "elevator,” for when we give, when we favor others with love, we are emulating the best, the highest, the holy.

As we seek to raise philanthropic funds for our various nonprofits, it is helpful to keep in mind the various motivations that people have to give which may include (or not) philanthropy as an extension of their faith.

Our Guest Blogger today is John Wm. Thomas, my co-convener of this session at The Bridge Conference; retired as COO of Children's Hospital Foundation in 2008 and now consults for non-profits nationally and regionally.