WGHA’s Agency (formerly “Party with a Purpose”) is an annual event targeted to Seattleites ages 25-34. Each year the party raises awareness and funds for a particular global health issue (different issues are chosen each year).  Kristen and Jessica and the Agency board have learned a lot about what makes young donors tick.  The biggest question to ask when you start thinking about attracting young donors: are you really ready to attract young donors? We’re a different breed than what you may be used to, and it may require a whole new set of strategies for your organization.

• We’re much more likely to get involved because of our friends instead of your mission. For a while, I happened to be the only 20-something I knew carrying a torch for circus in Seattle, but after bringing my friends to events like Circus Open Mic and SANCA (School for Acrobatics and New Circus Arts) trapeze shows, they can speak about the impact of circus on childhood obesity, and some are even on the heels of attending their first circus fundraiser (and first fundraiser, for that matter). Help us get our friends involved by creating a social aspect to your fundraising (and friend-raising) approach.
• Forget about snail mail. “If we get mail from you, we’ll wonder why you spent the time and money to print and stamp it. A witty email will catch our attention much better,” says Kristen. Email also gives us an instant chance to follow up with you by providing us with a link to register for your event, donate to your organization, or just learn more via your website or social media. Plus, you’ll earn major environmentalism points.
• Don’t expect major gifts—yet. Gifts of $25 or $50 are big for us: encourage giving at this level. If ten of our friends throw $50 your way at your event, you’ve earned what for many organizations is a major gift with almost no solicitation time. Remember, in the two years since this party started, many young donors have gone from interns to coordinators to managers, which means we have a lot more discretionary money than we used to. Keep us coming back every year and you’ll see a return on your investment.
• Entertain us. Agency had elements like a silent disco (where everyone puts on headphones and dances in a big group to their own tunes) and a red carpet photo booth. Mission-centric? Nope. Hilarious and memorable? You bet. Agency’s “purpose” in 2010 was diarrheal disease among kids around the world – not the sexiest topic, or the easiest to raise money for, but Agency made it work. The party sold out and was able to raise awareness for through lots of creative educational opportunities before and during the event, not to mention donate 100 percent of ticket proceeds to organizations that fight this disease. When’s the last time you saw an organization with enough moxie to get folks all dressed up and out for a night on the town to talk about poop problems?
• Appeal to our creativity. We’ll volunteer for your organization, but we don’t want to be licking stamps (see earlier tip on disdain for printed solicitations). Chances are we studied something really cool in college and are eager to trot it out: we might be experts on graphic design, or DJing, or underwater basketweaving, and you can bet we can help make your organization more innovative and get noticed with these skills. Spend some time getting to know us.
• Not ready for us yet? That’s okay. We can be a lot to handle when you start from scratch. But all nonprofits, especially organizations with a focus on arts, education, or with a membership base, may want to think about getting ready for us as your current donors and subscribers age out.
• Oh, and a really cool video never hurt anyone.

How does your organization approach young donors? Have you had successes (or utter failures)? We at TCG want to hear about it! Email me at blairf@collinsgroup.com, or, better yet, continue the conversation with TCG (@CollinsGrp) and me (@feehanbe) on Twitter.

You can read more about the 2012 Agency event here: it’ll be a shining example of throwing conventional fundraising out the window to make way for new and as-yet un-thought-of ideas about targeting millennials.

After two years at TCG, I recently had to put into practice everything I have absorbed as part of the fundraising consulting world to write a personal appeal letter for a cause near and dear to my heart: the annual Walk MS event for the National Multiple Sclerosis Society, Greater Northwest Chapter. I thought that I would knock that letter out of the park! I work with
fundraising professionals every day! I know how to do this. Then I stared at my computer screen for a really long time. I knew it wasn’t easy, but I didn’t expect how hard it would be to actually write my own letter versus the support I provide to our consultants every day on the same topics. Here are a few of my personal lessons learned.

Get specific

Explain clearly and succinctly the who, the what, the how, and the why. Who is the organization you are fundraising for? What they do? How does their mission impact people?  In
addition and, perhaps most importantly, why are you involved? Even though you are most likely writing an appeal to people within your social and professional networks, don’t assume they
are familiar with your organization or cause.

Make it personal

Donors respond to stories. They want to know the stories and reasons as to why you are choosing this particular cause to spend your time and energy on to raise money. If you connect a personal story to your case statement, it’s much more effective in reaching your audience.

Make it bold and true

Explain your fundraising goals clearly and often. Tell your potential donors exactly how much money you are trying to raise and why. My fundraising goal is a seemingly arbitrary $2,665,
but it’s not. This number represents my out-of-pocket medical costs for the year. By personalizing my fundraising goal and making it symbolic of a greater cause, I am asking my donors to emotionally connect. And, I’m proud to say, the MS Walk has been able to exceed our fundraising goals every year.

Cultivate those relationships

Your donors know you so you must tailor your appeal to each person so they aren’t put off by receiving a boilerplate request. Use your network and social media to broaden your reach. Thank your donors for supporting you and update them on the status of your fundraising efforts. Most importantly, ask your current donors to speak out for you. Last year, one of my team members
invited her good friends (whom I hadn’t met) to join the team. They had such a great time at the MS Walk that I not only got a shout out in their annual Christmas letter, but was able to cultivate repeat donors for future efforts. We’ll all be walking at the April MS walk together. Want to join us?

Year-end gift acknowledgments and tax receipts are going in the mail. For many development professionals, January is the time of year for shifting gears, perhaps from a winter appeal to an upcoming signature event, or from fundraising for operations to planning for a special purpose campaign. And while you know that major gifts fundraising is an ongoing, season-less process, this time on the calendar often challenges staff and volunteers to stay motivated and inspired.

Whether you just finished your fiscal year or are in the middle of one, here are six steps your organization can take to move your values-based relationships forward and further your mission in the coming months:

1. Acknowledge hard work. After summer planning, the fall frequently is the busiest time for staff and volunteers engaged in your development efforts. Now that it’s winter, take time to thank those stakeholders who have been cultivating, soliciting and stewarding relationships with donors and prospects. Recognize these efforts at your board and staff meetings and with a personal call or note before planning begins again this spring.
2. Engage your full board in thanking supporters. In a “perfect” fundraising world, all board members are involved throughout the major gifts donor cycle. Between now and perfection, ask board members to personally sign gift and tax letters during your next board meeting.
3. Devote time to data in order to evaluate progress and opportunities. Budgeting for philanthropic income often is based less on strategy and more on “the gap” between fees, membership, tuition, and other sources of earned revenue. Whether you met, exceeded, or fell short of your year-end target, analyze the donors who you acquired, who upgraded, who renewed, and who lapsed. What do the numbers tell you about where your development team should be spending their time this winter and spring?
4. Reach out to those donors who made a first-time major gift, and to those regular donors who didn’t. Use year-end results to “tweak” your prospect list. Sit with those prospects that made a new or upgraded major gift, and ask about their motivations. What other information would they like to learn about your organization? Who would they like to hear from, and how frequently? Would they like to get more involved, and if so, where might they fit in? For those supporters who did not give in 2010, invite further conversation about changes in their personal priorities or circumstances.
5. Refresh your case for support. The “new normal” means fundamental shifts in revenue sources for nonprofits in every sector. Make sure the story you are sharing reflects current realities, but always lead with the relevance, urgency and community benefit of your mission.
6. Remember why major gifts are a priority for your development program:
   • According to GivingUSA, almost 85 percent of charitable gifts come from individuals.
   • Research indicates that prospects are more likely to give, give again and give more when asked by a peer.
   • Donor-centered, face-to-face relationships will foster a deeper, mutual understanding and investment in your mission and vision than the most exciting event.
   • Retaining and upgrading current donors, vs. acquiring new ones, is good business. According to best practices, it costs $1.50 to raise a new $1.00. Investing in meaningful relationships takes time, but the ROI is well worth it.

After you have celebrated, acknowledged, and analyzed your year-end fundraising results, use the coming weeks to validate or shift your development priorities. Understanding your successes, challenges, and opportunities will reengage loyal volunteers and reinvigorate dedicated staff!

Looking for more ways to prepare for 2012? Join our webinar on January 24th for an interactive discussion on getting your shop in order: click here to register for this free webinar!

Research tells us that the primary reason new and loyal donors give, or give again, is because they understand the impact of their gift.  How can your organization communicate its impact effectively? As your holiday appeals come to a close, schedule time in January to see if you can answer the following five questions about your top donors. Then take the time to tweak or perhaps revisit your existing stewardship plans, or to make 2012 the year you formalize your stewardship efforts.

1. Why is your organization a philanthropic priority? From the Seven Faces of Philanthropy to newer approaches to different types of donors, research indicates that donors give for complex reasons, and that those reasons may vary within a household.
2. What does the donor hope to better understand from their partnership with you? Some donors may care about a specific program, while others may take a more holistic view of your mission. Still other donors may look to your organization to keep them informed about the sector or community context in which you work.
3. How does your donor prefer to receive information about your organization’s impact? Some donors may highly value regular face-to-face encounters; others may prefer a personal note they can read at their convenience.
4. With whom does the donor wish to stay connected? Some donors expect to develop a relationship with your organization’s professional leader; others may prefer the opportunity to meet periodically with program staff, or a board member.
5. When does the donor want to hear from you? Some donors welcome monthly contact; other donors may feel bombarded if you reach out to them more than a few times a year.

The Collins Group will be closed from December 26 – January 2. Watch for our Mid-Year Checklist in early January! It will include several tips for refocusing and recharging your staff and volunteers to get the most out of your organization’s fundraising efforts.

All of us at The Collins Group are also donors – somewhat picky and perhaps overly critical donors given the nature of our work, but donors nonetheless – and as it happens from time to time, we swap donor “horror stories.” With the holiday season in full swing, we felt it was time to share some of these true tales with you.  May your fundraising efforts never resemble these!

Assume the Best—and Follow Up

A staff member made a major gift to her employer’s capital campaign. A few years later, she accepted a job at another organization.  With one year left on her pledge, the staffer let the fundraising shop know that she was committed to fulfilling it. Fast forward another year: the donor and her husband are new parents. In the midst of this happy chaos, the charity sends the couple’s final pledge reminder, which disappears in a pile of diaper coupons, junk mail, and holiday letters. The sleep-deprived couple never noticed that they haven’t received the pledge reminder and are astonished to learn later that their pledge was written off.

Take away:  Assume the best.  We all get busy.  Most donors want to honor their agreements and fulfill their pledges. If someone misses a payment, it’s most likely an oversight.  If you don’t receive a pledge payment from a donor, pick up the phone. Too shy to pick up the phone?  Send a gentle inquiry letter, or ask the person who first solicited the gift to reach out.

A Lead Donor is Always a Lead Donor

A board member stepped up to lead a charity’s multi-million dollar capital campaign. Affiliated with the organization for 15 years, she made what was for her an enormous six-figure stretch gift in the form of a five-year pledge.  A year or so after the campaign successfully completed and with two years left to complete her pledge, the board member accepted employment at a related organization. From that moment forward, staff from her former organization froze her out. They made no attempt to remain in contact—no phone calls, pledge reminders sent unaccompanied by a personal letter, and a special invitation to her organization’s event was unceremoniously declined.  Will this organization ever receive another significant gift from her? No way. Have they lost tremendous good will and excellent word of mouth? Absolutely.

Take away: Unless your donor tells you explicitly that he never wants to hear from you again, he is your significant donor—no matter when the gift was made or what other organization he supports—and as such deserves your ongoing honor, recognition, and personal attention.

Timing is Everything

A young woman received medical care at a hospital for the first time. Three months after being treated she received a letter from the hospital.  Assuming it was a bill, she opened it, only to discover that she was being solicited for a gift to the hospital’s foundation.

Take away: Make sure your annual giving request could not be mistaken for a bill, and institute a rule—new patients are not added to mailing lists until at least six months after being treated.

Always Send a Thank You

A long-time former board member attended an organization’s fundraising event. She made an outright gift, noting on the gift card that she wished to be contacted about making another contribution.  Not only did she not receive a thank you for her gift, no one from the nonprofit responded to her note.

Donors, especially potential major donors, often test nonprofits to see how they respond to a gift. One donor’s rule: if she doesn’t receive a personal contact for a gift of $250 or more, the organization is dropped from her giving list.

Take aways:  A thank you note for a gift of any size is not only gracious good manners, but the foundation of donor retention.  Educate yourself on donor retention.

Keep the donors you have.  The easiest way to raise more money is to keep the donors you have, and one of the best ways to keep your donors is to make sure you honor and treasure not just their gifts, but their desire to support your mission.

Thirty-five nonprofit leaders and researchers came together to determine how we can increase giving, and what resulted was a report laying out 32 separate recommendations. You can find the report here.

Growing Philanthropy’s recommendations can be summarized into four key areas:

1. Enhancing the quality of donor relationships
2. Developing public trust and confidence in the sector
3. Identifying new audiences, channels, and forms of giving with strong potential for growth
4. Improving the quality of fundraising training and development

Reading through the report and recommendations, I almost feel like cheering. On the topic of tackling the high turnover rate among fundraisers, the authors of the report note the need to educate executives and board members on relationship-based fundraising, not the short-term, transaction-based method of getting the check in the door. Certainly, our organizations have short-term financial needs, but if we don’t look beyond the dashboard, we still won’t know where we are going.

In their advice to board members, report authors Sargeant and Shang caution that “holding the chief executive and his or her fundraising team to account on a range of short-term and ‘siloed’ metrics will only be counterproductive, damaging philanthropy and undermining the cultural shift that we aim to achieve.”

If we believe these recommendations will benefit the sector, we all have roles to play: advocating, educating, and challenging ourselves and those around us. As a consultant, I’m encouraged by this report and am looking forward to building trainings for boards and staff that don’t shy away from these bigger ideas for fundraising.

If you want a very readable, quick synopsis to share with your colleagues or boards, check out a manifesto for smarter fundraising here.

The common assumption is that fundraising is a field full of naturally gregarious types who thrive on social interaction 24/7. While there are many fundraisers in this category, the truth is there are many of us who deeply enjoy our interactions with colleagues, donors, board members, and volunteers, but also draw our energy from being alone to reflect.

For introverts (and sometimes extroverts, too), the thought of speaking to a large audience can be distressing. However, we are in a profession where we are regularly called upon to speak to large groups of donors, sponsors, community groups, or the media. While we may appear comfortable, it requires extra effort for introverted fundraisers to step into that space where we draw energy from the external environment (audience) instead of from within ourselves.

I’m currently enrolled in a Persuasive Communications class with Michael Shadow as part of the Masters of Nonprofit Leadership program at Seattle University.  He has been a speech consultant to United States presidents, corporate CEOs, and nonprofit sector leaders.  As someone who aspires to excel in an extroverted world despite my natural introverted tendencies, I hang on to his every word.

The bottom line is this: If we can harness the power of persuasive speech, where we fall on the introvert/extrovert spectrum is irrelevant. You can be confident the audience won’t discover your secret introverted personality because the speech will be well-delivered.

Here are some nuggets I’ve gleaned during class on how to “speak audience,” courtesy of Michael Shadow.

1. Don’t begin a speech with thanks or praise. Acquire and focus the attention through a story, example, quotation or lyrics.
2. Share universal stories. People need to perceive themselves within the stories you share during your speech in order to stay interested.
3. Don’t get lost in your notes. Leave the bottom third of each page blank so you can quickly glance down to prompt your next point instead of reading to the bottom of the page – this pulls your head down and distracts both you and the audience.
4. This is a speech, not an essay. Include only one idea per line and then leave a space and move to the next thought. It’s easier to remember your thoughts if you organize them in this way.
5. Prepare, prepare, prepare. Begin with your ultimate goal for the speech and work backwards. Think about who is in the audience, how they see themselves, and what their image is of you. The speech isn’t about you; it’s about meeting the needs of the audience.

The Chronicle of Philanthropy reported on a new survey that indicates two-thirds of donors plan to cut back on their charitable giving in the coming months due to economic uncertainty or personal circumstances. Considering many nonprofits receive 40 percent or more of their total contributed income between October and December, expect to see another challenging year for meeting revenue goals.

Below are some suggestions for bolstering fundraising plans to make the most of the year-end giving season:

1. Send an impact letter now. Before asking your donors for gifts during your fall or winter campaigns, send a stewardship letter thanking them for their last gift, and articulate how their gift helped further your mission.
2. Set meetings with your top donors. Face-to-face meetings with top supporters are critical for generating major gifts. It is hard to get meetings in November and December, so the time to schedule October meetings is in September (which means now).
3. Ramp up your online giving opportunities. The same gloomy survey referenced earlier offers a bright spot: nine out of 10 donors who give online plan to continue to make donations. Donors are much more comfortable making online transactions than they were just a few years back, so make it easy for them! Network for Good has a great Online Fundraisers Checklist, and the Social Media 4 Nonprofits blog is another great place to get tips to integrate and improve your on-line presence.
4. Secure a challenge grant to create a sense of urgency and leverage. As many times as this strategy is used, it continues to be effective. Donors love to know their gift is going further, and this goes for the “challengers” as well.
5. Thank properly. It goes without saying, but you never know when a donor who gave to your fall appeal will decide to give more before December 31. If your donors have a great experience, you may just end up at the top of their list.
6. Follow up requests to those who don’t respond. It’s a busy time of year so a follow-up letter or email with a link to give can be an effective reminder. Don’t convince yourself it will be received as an annoyance.

Are you trying new approaches, or have you found certain strategies particularly effective at year end? Please share!

The business of healthcare today is staggering. In a report released recently and reported by the Associated Press, the nation’s health care tab is on track to hit $4.6 trillion in 2020, accounting for about $1 of every $5 in the economy.

As impressive as the projection is, the level of spending today is already staggering. U.S. health care spending this year is projected to top $2.7 trillion, or about $8,650 per capita, roughly $1 of $6 in the economy. Most of that spending is for care for the sickest people and roughly half is paid for by public sources, primarily Medicare and Medicaid.

The Giving USA report released in June 2011 reports that an estimated $22.83 billion was given in charitable contributions to health organizations across the country last year. This was a slight decline from 2009, 0.3 percent adjusted for inflation, following a 4.4 percent increase the previous year. Healthcare makes up 8 percent of our total giving, about half as much as is given to education and only a fourth of what is given to religious organizations.

With giving to healthcare making up less than 1% of total healthcare spending, it’s a challenge for philanthropic services to convey the difference it makes. The message is important to convey to potential donors, and equally important to top administrators and governing boards. Total giving is far less than the level of uncompensated care provided in our country, not enough to make a significant difference in completing the major capital projects under construction at nonprofit and public medical centers across our region and country, and just a drop in the bucket of what is really needed to reform health care.

Yet, we see very successful emerging sectors within healthcare philanthropy that are effectively conveying the difference that giving makes.

Since the Great Disruption (aka recent recession) started in 2008, our firm has very successfully provided counsel to a number of community health and mental health centers throughout the Northwest. With federal funds investing in an expansion of access to primary care through community health centers and stimulus dollars available to “shovel ready” capital projects, our region will soon benefit from significant increased capacity.

The new health center for Anchorage Neighborhood Health Center will open next year, and serve as the healthcare home for nearly 20% of Anchorage’s residents.

Navos will soon open its new Mental Health and Wellness Center in Burien, moving its outpatient services from a converted elementary school now under Seatac Airport’s busy new 3^rd runway. The new 3-story, 45,000 square foot facility will continue Navos’ tradition of innovation and incorporate a primary care health clinic within the center.

Just a few months ago, Neighborcare celebrated the opening of its new Rainier Beach clinic, and has additional expansion plans in the works.

Each of these three new health care facilities are stunning in their design and appeal, and welcome residents of diverse backgrounds and incomes through their doors.

While we all may want to avoid a trip to the doctor until it’s needed, and are concerned with a bit of a loss of dignity as we disrobe for an exam or share our intimate concerns, it is with great pride that we can celebrate the difference philanthropy makes when the door that a patient enters conveys full respect for their right to quality care.

She made this significant gift because the organization invited her to have a voice in its future. Despite the organization operating in the red, she stuck around because her daily work was meaningful and was part of a bigger vision that she had helped to forge.

Some of our most dedicated flag bearers are sitting in the offices next to us, and we should be cultivating them with the same attention and gratitude that we give to our major donors. Like donors and volunteers, nonprofit employees are investing sweat, tears, and years of their lives to further the mission. If we neglect to notice this, we risk losing employees who have engaged deeply with our mission, have a braintrust of program, donor and organizational history, and could very well be donors.

Nurture your fellow staff members’ professional development yearnings and long-term investment in your mission while they are still staff members and you will be rewarded with passion, a sense of connection, and, often, financial support for your organization.

Three Simple Staff Cultivation Practices:

1. Offer a Place at the Table—Just like donors, employees can find renewed energy from generative, big picture conversations. Set aside time for intentional, regular (quarterly or monthly) conversations with your colleagues about how specific parts of their job make a difference in the success of the organization’s mission, ideas for how to improve operations, and what they need in order to grow in their roles at your organization.
2. Recognize and Celebrate Accomplishments—You write your donors handwritten thank you notes for investing time and treasure in your organization: why not do the same for employees? After the grant is mailed or a program concludes, take the time to publicly acknowledge the staff’s hard work as well as a personal expression of gratitude through a note or over lunch.
3. Identify Opportunities for Meaningful Engagement—We know the best way to develop a major donor is engagement. We populate our committees, work groups, and advisory boards with volunteers and donors. Why not invite colleagues to carve out some of their work day to devote to special projects that both engage them in bigger picture work and help advance the mission?