Debunking Five More Top Fundraising Myths

It's amazing to me how much time and energy nonprofits waste on fundraising strategies that have no basis in fact - and quite simply don't work. Here are five more common myths about fundraising and why they are incorrect:

Myth: Philanthropy comes from rich people, so your best strategy is to solicit rich strangers.

Fact: Just because someone is wealthy doesn't mean they are philanthropic, or that they will give to your particular nonprofit. In fact, rich folks are often financially comfortable because they don't give money away. On the other hand, people with modest incomes can surprise you with substantial gifts if they are dedicated to your nonprofit cause. A recent study by the Chronicle of Philanthropy indicated that middle-class households earning $50,000 to $75,000 give an average of 7.6% of their discretionary income to charity, compared with an average of 4.2% for people who make $100,000 or more. People don't make charitable contributions because they have lots of money; they donate because they know you, they care about your cause, they value your organizational work, and they want to help out.

Myth: Men give more money than women.

Fact: According to a study by the Women’s Philanthropy Institute, women age 50 and older give more than men – much more. In the highest bracket, women donate sums that are two times more than men at a similar economic level - for every $100 given by affluent men, women give $256. In fact, at every giving level, women are more likely to donate plus they give a bigger share of their income.

Myth: You don't know anyone who has money to donate.

Fact: Actually, you do. Statistics show that 65% of Americans (7 out of every 10 people you know) make charitable gifts. You are surrounded by potential donors: you just have to ask.

Myth: A good strategy is to have lots of wealthy people on your board.

Fact: A far better strategy is to have people on your board who are committed to your organization, understand their roles and responsibilities as board members, readily volunteer their time and skills, and not only make substantial gifts of their own (whether that be $50 or $10,000) but also ask their friends and acquaintances to join them in supporting your nonprofit organization.

Myth: Boards just can't and won't fundraise.
Fact: Most people who join boards have no experience with fundraising and feel anxious about asking people for money – but this can be changed. It takes leadership by staff, appropriate training, teamwork, and a paradigm shift that establishes that fundraising is a central and honorable part of your work.

Debunking common myths is a good first step in making the organizational shift to what is now being called a culture of philanthropy. This means embracing the value of fundraising as an ongoing opportunity to build relationships, expand your community, strengthen your programs, and further your mission.

 

Top Tips for 2013

Happy new year! Here are five completely random tips that have caught my eye, all gleaned from clients, colleagues, newspaper articles, enewsletters, and the many blogs I read on nonprofit management:

• #GivingTuesday: Over 2,600 fundraising nonprofits from across the country participated in the debut of this national fundraising day on the Tuesday after Thanksgiving - and it was a rousing success! In fact, the online donation processor Network for Good experienced a remarkable 154% increase in gifts compared to the same day a year earlier. I suggest you put it on your calendar for 2013.

• MailChimp: The industry standard for enewsletters and email management has been ConstantContact, but many of my clients are starting to use MailChimp and really like it. It helps you design email newsletters, share them on social networks, integrate with services you already use, and track your results. Check it out at: http://mailchimp.com.

• Weebly: If you don't have a website and want to start one, or if you're looking to switch to a very user-friendly system you can manage without a lot of tech support, take a look at this free, easy website-building service: http://www.weebly.com. 

• Reply-to-All Monitor: Ever pressed the "rely to all" button and immediately regretted it? That button (along with our tendency to move too fast in this day and age) is the bane of email communication. For a mere $14.95 you can buy software that wisely asks you, every time you click that button, if you're really sure you want to reply to everyone. You can find information at: http://www.sperrysoftware.com/outlook/reply-to-all-monitor.asp

• Resilience: Sustainability is so yesterday; the new buzzword is resilience, with a focus on adaptability and how to bounce back in our nonprofit world of crisis and rapid change. Beat the rush, and start using the new terminology now in your grant applications and fundraising appeals.

And one last suggestion – be sure take the time to keep expanding your understanding and knowledge of nonprofit management. Join online networks, check out nonprofit blogs, subscribe to enewsletters (I recommend The Chronicle of Philanthropy at: http://philanthropy.com/page/Free-Newsletters-From-The/236/ ). And most importantly, take real time to meet, talk, socialize and learn from your professional colleagues. You don’t have to re-invent the wheel; there’s a wealth of valuable information and knowledge already out there for you.

Here's hoping for a productive and resilient new year for all of you and your nonprofit organizations!

5 Fundraising Lessons from the Obama Campaign

Did you know that the Obama campaign had an advisory group of unpaid academics whose research and expertise in psychology and behavioral science were used to aid the cause? Or that Obama's quirky fundraising emails raised ten times more online than their biggest SuperPAC?

Seems like nonprofits could learn a trick or two from this past election:

Lesson #1: Subject lines in emails make a difference. Campaign strategists found that a casual, familiar tone worked best - including mild profanity (such as "hell yeah"). They also did constant analysis of what raised money and what didn't. Their most successful subject line? Simply the word "hey." I'm not suggesting you use these exact words, but it's definitely worth your while to pay more attention to the wording of subject lines. And consider doing regular analysis of which fundraising emails raise the most money.

Lesson #2: Make your pitch personal. The campaign found that just identifying someone as a voter made it more likely that he/she would actually vote - because people want to be consistent with what they have done in the past. So be sure to do your own research before you contact donors, and acknowledge their previous support.

Lesson #3: Have people sign a pledge card. Research shows that people are much more likely to follow through if they have made a simple written commitment to do so. This made a difference for Obama's voting numbers, and my own experience confirms that these research results apply to donations as well.

Lesson #4: Ask them when and how they will contribute. I did some phone calling for the Obama campaign, and we were instructed to ask people when and where they would vote. One of the campaign's many emails said, "People do things when they make plans to do them; what's your plan?" Turns out making even a simple plan increases the odds that someone will follow through, whether it's voting for the President or making a charitable contribution.

Lesson #5: Use peer pressure. Psychologists have confirmed that people like to conform to standard behaviors. One well-known study showed that when hotel guests were told that a majority of guests reuse their towels (rather than putting the focus on environmental value), there was a 29% increase in reuse. So - consider organizing house parties where the hosts announce their contribution to your cause and ask others to join them.

New York Times science writer Benedict Carey quotes psychologist and Obama advisor Dr. Craig Fox as saying "little things can make a difference" in people's behavior. The Obama campaign used these little insights successfully - and so can you and your nonprofit organization.

P.S. You can listen to the NPR podcast about Obama's email campaign at: http://www.marketplace.org/topics/elections/campaign-trail/science-behind-obamas-fundraising-emails. 

And you can read the full article by Benedict Carey at:  http://www.nytimes.com/2012/11/13/health/dream-team-of-behavioral-scientists-advised-obama-campaign.html?pagewanted=all&_r=0