Fundraising Takeaways: Giving USA 2013 Charitable Giving Report

The good news is that Americans contributed $335 billion to nonprofit causes in 2013 - a 3% increase over 2012 - and the expectation is that this trend will continue in 2014.

The bad news is that most nonprofit organizations have struggled over the past six years since the economic downturn simply to raise as much as they did beforehand. Compared to previous recessions, this was quite a long recuperation period.

Wealthy donors were the primary source of this increase. These folks donate out of investments and assets rather than income; stock market gains over the past six years fueled the upsurge in charitable contributions. Their favorite causes - donor-advised funds and colleges - benefitted. Additionally, many donors cut back their giving to an average of five organizations during the recession; now this has bounced back to the more customary five to ten.

Here's a breakdown of how each nonprofit sector fared in 2013:

• Education: up 7.4%
• Arts: up 6.3%
• Public and society benefit: up 7%
• Animals and environment: up 6%
• Health: up 4.5%
• Human Services: up a mere .7%
• Religion: down 1.6%
• International Affairs: down 8%

And here are two new strategies that seem to be working around the country:

• Advertising specifically geared to younger folks: I particularly liked this successful fundraising slogan from the Communities Foundation of Texas - "You don't have to be a billionaire to be a philanthropist."
• Programs that appeal to a broader range of the community: The Philbrook Museum of Art initiated free admission Second Saturdays plus increased programming for kids including a special MyMuseum box of art supplies, resulting in a big increase in donations from folks making moderately-sized gifts.

And the fundraising takeaways? The fundraising climate has improved, but it remains challenging - so you need to think strategically and creatively. Reach out to new audiences, clients, and donors. Find out what's working for other similar organizations. Develop a plan that addresses fundraising, messaging, and programming holistically - it's all connected.

Whose Job Is It Anyway? Board vs. Staff Roles

Are you confused about how to determine Board vs. staff roles? Is there disagreement and tension between Board and staff in regard to who is in charge? Does your Executive Director feel that the Board is micromanaging implementation of organizational programs? Does your Board think the Executive Director is not doing enough fundraising?

You're not alone. Most nonprofits grapple with how to designate basic responsibilities, and want to know the "right" way to do it. But - there is no one correct model. Younger, smaller, more grassroots organizations typically have significant Board involvement in program management. Older, bigger organizations tend to move towards a model where the Board sets policies and oversees the work. As organizations grow and expand, Board and staff roles will keep changing. And conflicts frequently arise at moments when change is necessary. These moments - as hard as they may be - are often a gateway to positive and creative growth that can open new doors and build organizational capacity.

Here are some very basic guidelines that apply to most nonprofits:

The Board has primary responsibility for:

• Hiring, evaluating, and firing the Executive Director
• Understanding, analyzing, monitoring, and approving the annual budget
• Recruiting Board members
• Setting, approving, and reviewing organizational policies
• Ensuring legal compliance

The Executive Director has primary responsibility for:

• Hiring, managing, evaluating, and firing organizational staff
• Overseeing and managing the day-to-day program and organizational decisions.
• Providing accurate and timely information to the Board to support informed decision-making

That said, the Board should always respect and value the Executive Director's input, and the Executive Director should always respect and value the input of the Board.

Effective fundraising and public outreach go hand in hand - and require hard work from everyone. I am a firm believer that a strong, sustainable fundraising and outreach program requires active participation from both Board and staff. That means it's not okay for the Board to suggest, when money is short, that the Executive Director write a grant (or organize a fundraiser or find some new donors). And it's not okay for the Executive Director to whine about the Board's unwillingness to ask people for money without providing appropriate training and doing his/her part in making asks.

Scheduling an annual Board assessment, as well as using the annual Executive Director performance review positively and strategically, will help you to evaluate what's working and what's not. Your ongoing goal is a shared governance structure where the Board and staff work as a team, with an understanding that the balance of responsibilities will evolve and change over time.

Seven Easy Ways to Increase Your Fundraising Capacity

The very best way to raise money is simple - ask! But here are a few tips you might not have thought about that can help enhance your fundraising efforts:

1. Encourage monthly donations: Make sure your donation page prominently features an option to make monthly donations, either through credit cards or bank accounts. Actively encourage your board members and donors to participate. Monthly donations provide steady, unrestricted cash flow that is particularly welcome in the current economic climate.
2. Look into employer and bank giving programs: Research and publicize corporations that match charitable donations (a few local ones include Chevron, Charles Schwab, and Agilent). This is a great way to double your money. Find out which banks and businesses in your area have charitable giving programs. Ask your board, volunteers, clients and staff to participate and/or help with a solicitation.
3. Sign up for Amazon Smile: Everyone shops at Amazon - and each purchase can generate money for your organization when it's done through Amazon Smile. Amazon will donate .5% of eligible purchases to the charitable organization of choice, with no cost to the shopper. A good return depends on volume so the more people enrolled, the better; let your board, staff, volunteers and clients all know about this simple cost-free way to support your organization. Check it out at http://smile.amazon.com.
4. Personalize your asks: One of the easiest ways to increase donations - and to get board members and volunteers to help out - is to write personal notes on solicitation letters. Doing so will increase your chances of receiving a donation as well as increase the amount donated.
5. Steal ideas: All of us receive endless fundraising appeals via email, mail, and Facebook. Don't just trash them. Take a quick look, identify the ones that work and those that don't, and steal good ideas to use in your own fundraising campaigns.
6. Make your Donate button jump out: I can't repeat this enough - make sure your Donate button is visually appealing, prominent on every page of your website, and included on every email and newsletter you send out.
7. Make online donating easy: Try being your own donor. Is it straightforward and simple to make a donation? Are all donation options clear? How many clicks are required? How long does it take? You want your busy donors to be able to make a contribution without confusion and without wasting their time.

Got any other good tips about simple fundraising strategies? Email me at cjay@horizoncable.com or leave a comment on this page.