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In 1899, Howard Carter was appointed Chief Inspector of the Egyptian Antiquities Service. He was only 17 years old. For the next six years Carter made a name for himself through his innovative approach to Egyptian historical artifacts; but his heart was in “the dig” and in 1905 he resigned to return to what he loved best. In 1907, Lord Carnarvon employed him to supervise exaction of the nobles’ tombs. In 1914, Carter was appointed to lead the digs in the Valley of the Kings. This was his dream job. However, the job was soon interrupted by World War One and he spent the next two years as a courier and translator for the British government. Finally, in 1917, he returned to his work in the Valley of the Kings. Season after season his digs failed to produce. Finally, in 1922, Lord Carnarvon informed him that the 1922 season would be his last.There was no more money. Imagine his discouragement! But on the 26^th of November,Howard Carter opened a hole and saw the tomb! By February 1923, Carter and his team opened the burial chamber and made the greatest discovery in modern archaeological history—the tomb of Tutankamen.

When I reread that story again recently, I realized how much archaeology and development work have in common. In this blog, my advice is simple: DIG, DIG, Dig! In my experience, it seems that the treasure is often buried right in front of our eyes. The data base manager holds the key and should become your best friend. Most recently, I worked with the Raiser’s Edge data base but most reputable bases have the same abilities. Let me therefore get you started on your archeological dig of the data base by offering four simple starter questions:

1. What are the top ten gifts and the amounts the organization has received in your history? For each gift, has the organization maintained a relationship with the donor or the donor family? If not, is there potential for reestablishing the relationship?

• What is your “average” gift. I have used quotation marks because you must first pull your top five gifts and your bottom five gifts before deciding the “average”. Also, take out any one- time unusual gifts. This prevents skewing your results and giving you a false result.

• What is the range of your gifts and how many were received in each category within the range? Your categories may include $1-$50, $51-$250, $251-$500, $501-$1000 and $1001 plus. I worked with one non-profit that received over 8000 gifts a year but almost 75% of those were in the $10-$25 range. That’s important information.

• Finally, ask your data base manager for a list of persons who have made a gift five years in a row. That listing has donors who have already demonstrated organizational loyalty and may be ready for a personal thank you visit and an increase in their annual support. When was the last time these people had a personal thank you for their loyalty?

What other reports can your data base manager suggest that could be helpful in your archaeological dig? Remember, Howard Carter dug in the Egyptian desert for seven years before he saw the fruits of his labors. Get digging—the treasure is there.

DIG, DIG, DIG!!!!!

(In our next blog we will discuss the importance of donor retention in reaching your goals)

For more information on how 4-Dconsulting can help your development efforts, please visit our web site and e-mail or call. We want to make you successful.

 

 

Every non-profit is asking the question. We are all living in era of fundraising uncertainty. What will be the effect of Covid-19 on our fundraising.? Our advancement visits have come to a halt. Our offices continue to debate the best strategies as we move through troubled waters. With this as my backdrop, I spent the last few days reading articles and blogs from respected sources who know philanthropy the best. While not being discouraged by the latest trends identified, advancement offices and CEO’s should be taking notice and increasing their efforts to become outstanding communicators.

The Chronicle of Philanthropy lists a few trending patterns which should be noted:

        15% of donors have paused their giving

        5% of donors have decreased their giving

        (Giving USA suggests that 47% of donors are giving less!)

        Donor retention rates dropped again in the first quarter of 2020 (1)

If these statistics don’t cause the advancement office to take notice, perhaps the following will sear into your mindset the importance of donor retention:

          “Over time, the impact of donor retention rates is devastating. Consider a non-profit with 1,000 donors. Even if the organization beats the national average and maintains an annual rate of retention at 60%, its donor base would fall to 600 in year two. After five years, the organization would have only 78 donors left!” (2)

So, what can the advancement office do right now to retain its donors? It seems we repeat this in every blog: COMMUNICATE, COMMUNICATE, COMMUNICATE

Digital communication carries no germs

In a June blog, Bloomerang lists five things the advancement office should be doing right now to address donor retention:

1. INFORM  We have written on transparency before. The advancement efforts must do everything possible to insure the donor identifies and continues to identify with the organization, its mission and the people who are laboring in the trenches every day.
2. EMPATHIZE  Remember, donors are not your personal ATM machine. They are flesh and blood, as confused and as quarantined and as frustrated as you are. You must think of them as your partners who also may be hurting.
3. ONLY ASK IF YOU NEED IT NOW  Some non-profits have expended all their resources and any reserves as they serve the dying or as they feed the hungry. Others have simply ceased the mission until we return to the new normal, whatever that may be. Craft your story well and only ask if it is critical.
4. POSTPONE EVENTS AND DO NOT DO ONE ONLINE  Virtual baby showers on ZOOM may be fun for a time, but now is not the time for celebrations and fun events as fundraisers. Do nothing to minimize the seriousness of the pandemic.
5. ENGAGE DONORS AND VOLUNTEERS  What, beyond providing timely information can you do to engage your donors and your volunteers? I received a letter from a CEO of an organization who suggested a book that had an impact on him and related to the mission of his organization. I received a list of prayer requests from an organization who simply asked that I include their ministry and the needs in my prayers. How can you engage donors?

Yes, all the clichés apply…we are in uncharted waters…change is inevitable… etc.etc.etc. It’s exciting, isn’t it?

1. Special Report, philanthropy.com/specialreport/covid-19-coverage-fundraising/237
2. Jessica Browning, The Winkler Group, “A Smarter Easier Way to Raise Money:Donor Retention, April 29, 2020
3. Bloomerang, July 2020

Presently, it seems we are all asking, “What does the future hold?” Just as we began to emerge from the Covid-19 viral nightmare, the lead story has become rioting in our cities and the ugly national underbelly of racial injustice (both perceived and real). How in the world does one make sense of fundraising for organizations in the midst of such a troubled time? Today, I share with you a primary step (first step) to insure your non-profit continues to receive the funds necessary to remain a strong stable organization.

When I consult with Boards of non-profits, I always begin with the following: “If your organization (XYZ Non-Profit) did not exist today, would there be a reason to create it?” As simple as this question first appears, I have seen Boards struggle with the answer. One Board came to the conclusion that there were plenty of other non-profits who are accomplishing the same mission. Ask yourself therefore, “How do we stand out as leaders?”.

In reviewing your reasons for existence, and your community standing, you should ask and struggle with three questions:

1. What has the organization done well and been successful in doing in previous years? (THE PAST) . Are you alone in this area of excellence at this time? Can you continue to build in this area?
2. Given what may be a difficult fundraising environment (the social climate and the economic climate), what can your organization do well this year to benefit the community? Will this require a refinement of your original mission? Are the tools and resources in place for this? (THE PRESENT)
3. Where should your organization be positioned for the years to come?  (MOVING FORWARD)

You have worked diligently and hard to meet your goals. Your organization has a stellar name in the community. Congratulations. Now we face disruption! The booming economy has disappeared. Unemployment has skyrocketed. Where do you go from here? Perhaps the story of the village blacksmith will open your thinking.

Many years ago, there was a highly successful blacksmith in the village. He was known as the best of the blacksmiths and was justifiably proud of the business he had built. His product and service was the best and he saw no need to change. After all, he had a strong and excellent customer (DONOR) base. Some say that he was still proud of his product when Eisenhower opened the Interstate highway system in the 50’s.

Your organization has been strong in the past. What will your donor base support in the future? What does your future look like?

Don’t be caught raising funds for horseshoes in an electric car world! Disruption may bring change but “BE NOT AFRAID”. Change may bring a new strength to your non-profit.

                                             GO FORTH AND TELL YOUR STORY

Last month we discussed what effects the Covid-19 virus might have on charitable giving. I suggested in the article that the fruits of our labors in the advancement office will be seen in the coming months and even longer. I said that those organizations who had built strong personal relationships with their donors will be able to continue to make successful asks, whereas those who have relied on “pretty publications” and two or three times a year mailings a year may see a decline in giving. Mailings are nice – and necessary – but they do not establish relationships.

Now comes the CARES Act of 2020. So much has been said about personal stimulus checks and small business rescues that the act’s provisions for charitable giving have been lost in all the discussion. The Charitable Giving Incentives section of the act creates a new above-the-line deduction for total cash contributions up to $300. These can be claimed next year!

“People do business (become donors) with people because they choose to, not because they have to. We can always find others doing the same thing or selling the same product. It’s the personal connection that makes the difference.

–unknown

By now, most organization advancement offices should be producing a printed piece (approved by your accountant) for mailing to donors. Those advancement offices most concerned with building relationships with their donors and having them as partners in the mission , however, will not resort to just another mailing or just another post on the web site. The CARES Act provides one more opportunity to make a personal call. I envision a conversation which goes like this:

            “Hello Jim. This is XXX at your favorite non-profit. You may not realize that Congress recently passed the CARES Act and there is a special provision for non-profit contributions which may benefit you. I was wondering if you had time to meet me for coffee so I can share the provisions with you.”

You can use this coffee time to not only share your new printed piece, but to also thank the donor for their previous support and to provide updates on your organization. Share any current needs that might fit with the donor’s abilities. Remember, even if you don’t get the coffee appointment, you made a personal contact which will probably insure that the mail is opened and read (along with your thank-you note for their time).

NOTE: As I write about best practice fundraising, we are under a SOCIAL DISTANCING order from our state and federal governments. Best practice fundraising in this climate might stop at the phone call. Remember, however, in a time of social isolation and with many donors being in older age groups, we can hypothesize that we will see answered phone calls skyrocket. This is especially important for those of you working from home right now.

“You’re just one relationship away from 10X-ing your goals.”

                —Michael Banks, Real Estate Investor—

Time’s wastin’ —make those calls!