Thoughts on Leadership in Philanthropy

By Jim Donovan

Where and when did you learn to be generous?

Believe it or not…like the saying goes…charity begins at home…it was at home as my dad worked three jobs so my mom didn’t have to work except as a homemaker and he wanted us to have the necessities of life.  Our neighborhood was a rough one and it really was about survival of the fittest so I really appreciate those, who through no fault of their own, need a helping hand and I am so pleased that now I am able to lend that assistance.

How about your work ethic?

My parents made it clear — get an education or try to survive in the neighborhood. I managed to get into, attend and graduate from Cornell University, did my basic training at Ft. Bragg, home of the 82^nd Airborne, served as an officer in the US Army in Korea and Germany.  Then I got a job at the Waldorf Astoria, spent two years with Hilton, then got a job at Disney, left after two years to buy my first hotel, worked 15 hour days from cleaning the bathrooms to checking in guests at the front desk, cooking breakfast, slicing meat on the buffet, and gardening, etc.

When do you begin to think about giving back, philanthropy?

I was sitting at my desk twenty-five years ago in the midst of building my fifth hotel and planning a sixth.  I had an epiphany and said to myself– what are you doing all this for, I’m now married in my early 50’s, Dear God how blessed I have been and it is time to show appreciation and start giving back.  Two decades ago we established the Rosen Foundation and since then we have made hundreds of grants totaling some $ 40 million.      Our focus locally has been education especially in the Tangelo Park neighborhood.

Now we have the Little Haiti House Project recently featured in the Orlando Sentinel.  I see this as a model program to help build self esteem and getting the whole village working.  The hurricanes there were devastating, which I saw firsthand.  So many families are homeless.  We are making progress but I am impatient with the pace.

How can those reading this interview help?

Go to: http://www.rosenhotels.com/haiti/

Is your philanthropy hands on or hands off?

Very much, hands on.  We don’t just write a check, we work with those we are assisting to empower them toward self-sufficiency.

What do you find most rewarding about giving?

The letters I get from those we have assisted.  Recently a college student wrote and said her dad passed away and she was about ready to leave college due to lack of funds.  Then, just in time comes a scholarship from our foundation. She said that enabled her to finish college at a difficult time.  And then there are the letters from kids in Tangelo Park.  It is so touching and rewarding.  I just love their little hand written notes and stories.

What advice do you have for nonprofit board members and their fund raising staff in regard to raising more money these days?

First, be realistic, it is a tough economy.

Second, be patient.  Make sure there is a legitimate need you are trying to address and keep all of your actions above board.  Try to keep your expenses/overhead to less than 10%.  The Rosen Foundation has zero overhead.

Encourage discussion of new ideas and share them.  Don’t be afraid to suggest radical but practical new ways of addressing age old problems in the social sector.  Encourage the board to look out on the horizon and ask what the organization could and should look like five years from now.

How about when asking for money, any tips. 

Appeal to the donor’s heart. Ask the donor what he or she hopes to accomplish with their personal gift to your organization’s work.  Share the success stories, letters and testimonials of the how your organization made a transformational difference in the life of one person.  Keep the request simple and to the point. Do more listening than talking.

Cash Crunch — Clearly this started with local government which became cash strapped due to lower tax collections, less funding from the State and huge cuts in Federal funding – a perfect storm.  Nonprofits from the arts to zoos had to dip into cash reserves, conduct emergency appeals and in some cases invade their endowments.  The social service sector saw demand for its services reach record levels.  Social media, like Facebook, kicked into high gear at many organizations.  Special requests for additional major gifts from longtime individual donors spiked.  It was a dash for cash.

Collaboration — In some situations, nonprofit leaders turned to grant making foundations for a special one-time grant to make it through the tough times.  A few succeeded.  However, many were quizzed by foundation executives as to why they hadn’t done a better job of seeing the cash crunch coming and were told they now need to consider collaborating with a similar agency if they expect a grant.  Collaboration is here to stay.

Consolidation — Those that did not give serious consideration to collaboration, found themselves facing consolidation of programs and services due to dwindling resources.  In other words, more focus on the core mission.  In some cases, even layoffs of staff.

Lessons Learned/Suggestions for Success in 2012

• Don’t let your organization get caught in a similar cash crunch in the years ahead. We have heard from dozens of board members during this recession and they are quite burned out and can’t wait until their term is up.  As they verbalize their experience to others, this will make enlistment of new board leaders a real challenge in 2012 and beyond.  The most common remark, “If only we had done a better job of strategic planning and building up our endowment to weather such ups and downs in the economy.”
• Follow the money.  Keep in mind 85% of all giving in the U.S. is from individuals.  It’s so easy to become dependent on that county grant of $100,000 each year and not have to organize a donor club of 100 friends at $1,000 each.  We call this kind of donor club a Living Endowment, as the 100 friends are giving $100,000 or the equivalent of the earnings from a permanent endowment that can generate this amount.  At today’s interest rates it would take an endowed fund of several million dollars to generate $100,000.
• Update your case for giving. Make it more compelling, urgent and relevant.  Test it, tweak it with donors, potential donors and friends. Make sure your case is about worthiness, not neediness.  Explain why your organization is worthy of the donor’s gift.  Donors respond to the former.

Call a Time Out

Step back and reflect. If there ever was a time to assess the past and think strategically about the future, now is the time.  No matter how busy your organization is keeping up, struggling to survive, there is always time to hold a retreat and ask these five key questions:

1. Where do our philanthropic resources come from now?
2. Where must they come from in the future?
3. What is our plan to keep the donors we’ve got, upgrade them and to obtain new donors?
4. What human and financial resources do we need to attract increased philanthropic support?
5. Where can we get assistance in securing those resources?

Consider Outside Assistance to:

• Conduct prospect research, a screening/wealth analysis of your current donors
• Conduct a Rapid Organizational Assessment to determine what is working and what needs fixing
• Plan and facilitate a day long board retreat to set strategic goals
• Conduct an Online Donor Satisfaction Survey
• Conduct a study to test the feasibility of your plan to increase philanthropic support
• Train volunteers and staff on how to solicit major and donor club gifts
• Ratchet up your planned giving efforts to take advantage of the trillion dollar transfer of wealth

All the best for a prosperous 2012.

          Jim Donovan                                                             Bill Carlton                                                                                                                  

Collaborating To Bring a Half Century of
Best Practice Experience to the Nonprofit Sector

For a free no obligation consultation, call or email us:

In Florida Jim Donovan at 407-321-0024 or email us at:  dmimgt@aol.com

In Colorado Prospect Screening, Barry Donovan at: 303-346-9001 dmimgt@aol.com

In the Northeast/New England Bill Carlton at: 1-800-622-0194.  Wlcarlton@aol.com

Nonprofit Financial Stability in Tough Times

Interview / Insights

Joe Bert, President & CEO
Certified Financial Group
Co-Founder of the Donor Motivation Program
Altamonte Springs, Florida

Q.  Board members of nonprofit organizations are struggling to keep money flowing in this economic downturn.  Many can’t wait until their term is over and will leave the strategic question / solution to financial stability to new and fresh board members.  After all, who wants to go through another cycle like this one?  What advice do you have for the new board?

Bert:  First you have to recognize that nonprofits are divided into three categories – those with sufficient staff, limited staff and no staff.  The first group has the luxury of thinking strategically and looking out on the horizon for several years and saying, “We aren’t going through this again.”  The others are challenged with keeping the cash flowing, and if they can find time, to engage in strategic planning.  In the latter group, that has no staff, everything is driven by volunteers.

Nonprofit boards must make plans to be here tomorrow to fulfill their mission. Otherwise they will go out of business.  This means making plans for long term financial stability.

Q.  What is the key to long term financial stability?

Bert:  Recognizing the financial impediments in tough times.  Too many nonprofits are in the “business as usual mode”.  They rely on special events, government grants and direct mail donors.  In tough times sponsorships for events dry up, governments cut back and some donors give less.  This causes what I call the SPS — Shortfall Panic Syndrome.  What makes matters worse is that most organizations in Central Florida never do get around to focusing on the long term.  That’s where planned giving comes into play.

Q.  So the key is having an endowment?  But if so, how can that help given the low interest rates today?

Bert:  At today’s rates, say 1% return, it would take $10 million to earn $100,000 in an unrestricted endowed fund.  As rates go up, so do the earnings.  The question is, when does an organization get serious and start building up that endowment in anticipation of better rates of return in the years ahead?  Again, it is a strategic board issue.  Frankly, I think the former chairs of the board would be a good group to convene to start this process as they have organizational history and insight.  And, they can devote the time to the strategic planning process because they aren’t attending monthly or quarterly board meetings.

Q.  What is the key to getting started on building up a financial cushion, reserve or unrestricted endowment that can fund unplanned, unmet and unanticipated needs of the organization?

Bert:  Focusing on the donors you have now.  They are the best prospects for future and planned gifts.  Put them first.  Make their financial planning goals first and foremost.  Discuss with them how they want to take care of their spouse, their family and then leave a legacy of giving through a planned gift to your organization.  Most folks will not give to their capacity until they are assured that they are not jeopardizing their family’s financial security.  This is why comprehensive financial planning generates far greater planned gifts.

Q.  How can nonprofits do this with limited or no staff?

Bert:  They can’t.  It takes an investment of time and money.  It also requires letting go and working with professionals in planned giving.  Too many groups think they will lose control of the donor once they are working with an outside professional. They say they will run their own planned giving program.  Trouble is, they don’t get around to it because of too many distractions.  Sometimes this means their donor becomes a prospect for a competing organization which is doing planned giving.  You want professionals that put the donor’s interest front and center, period!

Q.  What does a good planned giving professional do for the donor?

Bert:  Review ways to increase their income and not assume present investment strategies are the correct ones.  Second, provide future income for their family.  Third, define their giving legacy goal. Last — give less to Uncle Sam.

Q:  What programs do you offer to help nonprofits with their donors?

Bert:  The Donor Motivation Program^TM offers to planned giving/development officers and nonprofit organizations, a qualified and charitable-minded catalyst for motivating individual donors to meet community needs while achieving their charitable goals.

We offer a series of presentation services to educate and inform potential donors to view their wealth as a conduit for leaving a legacy based on ‘fingerprints’ of their life values. Our donor motivation team speaks with authority on the impact of philanthropy using insightful examples based on the knowledge and experiences of well-known authors, industrialists and wealthy families from America’s past.

Using layman’s language and illustrated concepts, donors can easily understand how taxes paid under the U.S. Tax Code can be redirected as voluntary social capital instead of as involuntary taxes, and how supporting charity during one’s lifetime leaves not only a legacy, but wealth to future generations.

For more information contact: 

Joe Bert, President & CEO
Certified Financial Group & Co-Founder of the Donor Motivation Program
Altamonte Springs, Florida
407-869-9800 / 800-393-9900
www.FinancialGroup.com

A main benefit of being a consultant in philanthropy is that you get to meet a wide range of major donors across the nonprofit spectrum – literally from A to Z, arts to zoos.  Oftentimes it’s in the context of an interview for a campaign feasibility study.  For more than 25 years our firm has conducted dozens of studies and interviewed hundreds of major gift donors.  Here are some insights/quotes from these donors on how fundraising staff and leadership volunteers can do a better job of asking them for a major gift.

“Spend time with me.”

In other words — make an effort to get out of the office and be with the donor and/or prospect.  Facebook is not engagement.  Face time is.

“Encourage me to give at a level my peers will approve of.”

Donors seek the approval of their peers and do not want to give less than they are capable of.  Aim high.  Their friends read the Honor Roll listings at your website and in your newsletters.  Donors often ask me where they should be on a gift chart used in the study so they are not embarrassed by giving less than what is expected of them.

“Ask me before the Holidays.”

Most major donors give at year end for tax purposes before getting busy with family and company holiday parties.  Fall is the best time of year to ask for a renewed and/or increased major gift.

“State your case to me in a concise manner and allow me time to ponder it and ask questions.  Fundraisers too often talk too much.”

Ouch!  People are busy today, more so than ever with so many ways to communicate – e-mail, Facebook, Twitter and so much information via so many 24 hour news channels.  Donors are bombarded with information.  They don’t have time to cut through the clutter.  Those who keep the case concise and to the point help donors understand the need for their gift and appreciate their time not being wasted.

“Send me my gift receipt for tax purposes right away and then stay in touch. Don’t be a stranger until same time next year.”

Staying in touch, we have been told by donors, means by phone and in person.  E-mails won’t cut it.  When I was working at Clemson University, I had a list of donors that needed a lot of attention.  So I would give it to them.  Actually, I would tell them the President of the University wanted me to be sure to check in with them and thank them for their support.

For other tips check out our publication, Take the Fear Out of Asking for Major Gifts by clicking here.

Jim Donovan, President /CEO

Jim Donovan, President, DMI

1. Donors primary concern is usually their FAMILY not the charity. Most donors are worried about making a planned gift, because their fear is that a gift to charity will reduce what they are able to leave their family.  Recognize this concern and approach planned giving from a donor- centric position.  The largest planned gifts come when you can show donors how they can actually increase both their annual income and the amount they can leave to family through proper planned giving.

1. Don’t be the Grim Reaper. Face it; no one likes to talk about death or think of their own demise.  So when a planned giving professional calls to say “Please consider making a gift to our charity in your will” what donors HEAR is “Hey, we’ve come up with a savvy way to profit from your death, so we are just waiting on pins and needles for you to kick the bucket.”  Is it any wonder why donors are hesitant to take action?  Go beyond testamentary bequests and focus on what donors can do during their lifetime to start leaving  “LifePrints” (but don’t forget #1….donors want to make sure their family is taken care of first and foremost!)
   

1. Send a consistent message. When a donor is considering making a substantial gift, they want to know that the charity will be around for the long haul.  The best way for a charity to communicate this is to send a consistent message with your marketing and planned giving efforts.  Don’t try to reinvent the wheel.  Those organizations who constantly try out new methods, end up with a start-stop-start-stop approach.  If you decide to give planned giving seminars, do them regularly (we suggest once a quarter).
   

1. Don’t limit your outreach to just your “A” donors. Due to time and budget constraints most planned giving officers direct their attention to the donors on their “A” list.  However, this approach overlooks those donors on the B or C list, who may be the millionaire next door.   The well known book “The Millionaire Next Door” by Thomas J. Stanley reveals that the median annual income of millionaires was $131,000. These millionaires accumulate their wealth by living below their means.  It would be consistent with the demographics frugal lifestyle to refrain from making large annual gifts to a charity.  However, they could be prime candidates for planned giving.  So don’t ignore those donors who make smaller or sporadic annual gifts!

1. Donors want to leave a legacy. Create a lifelong connection with your donors by showing them how to leave a legacy beyond their financial wealth.   Planning encompasses three distinct dimensions: financial, personal, and social.  Focusing only on the financial dimension ignores the most important dimensions to the donor, family and social.  Planned giving is the most effective when all three dimensions are skillfully blended.   Some tools that will help you integrate the personal and social dimensions include ethical wills (“Legacy Letters” by Jodi E. Murphy, J.D. is available upon request) and Priceless Conversations (recorded audio conversations on specific topics that will assist your donor in gaining clarity on what their vision, priority and goals are).

To learn about the free Donor Motivation Seminars, call 800-393-9900 or contact Barbara@FinancialGroup.com or go to: www.donormotivation.com .

To view a PDF with information on the June 23, 2011 DMP Seminar, click here.

My Word: Racing for charity dollars

What do the recent Kentucky Derby and philanthropy have in common? They each have a lot of money at stake in regard to the outcome, and both attract a special kind of person.

The derby is about the fastest horse crossing the finish line in the shortest time. Philanthropy is competitive as well, as nonprofit organizations are chasing millions of dollars in contributions at the fastest pace in decades due to the recession.

Clearly, the derby draws horse lovers, of which there are thousands right here in Florida. Philanthropy, according to the Greek definition, philos (loving) anthropos (man), attracts lovers of mankind.

Today, nonprofit organizations in pursuit of philanthropic support are in stampede mode as they try to replace the cuts in government funding at all levels, keep the donors they have and find new ones to help close budget gaps. Those organizations that obtain a majority of their income from special fundraising events are far back in the pack. They have seen many of their sponsors dry up. Other groups dependent on government grants are racing to find new donors.
The combination of declining sponsorship donors, government cuts, donors worried about their declining portfolios and organizations expecting the same results from their special events is forcing nonprofit leaders to reconsider their fundraising strategies.

How can they do better? By riding a horse I call Best Practice. He has been a winner every time. He competes and wins despite recessions, a declining stock market and negative news. Best Practice deploys three key strategies to win.

First, he creates and researches a sufficient pool of individuals who not only have the ability to make major gifts to his nonprofit organization, but have a passion for the mission, be it to wipe out cancer in our lifetime, rescue an abused dog or clean up the Everglades.

Second, he leads by example. He makes his gift first. Then he invites others to join him by making the case for giving in a clear, concise and convincing matter.

Finally, Best Practice surrounds himself with competent and disciplined fundraising staff that can support the volunteer-driven fundraising process by emphasizing the importance of face time with major donors and prospects rather than Facebook time.

There is no shortage of money to be given despite the present economic climate. People are generous. They just have to be invited to take a few laps around the track and experience the joy of giving to a winning cause to help people, pets or the planet.

James A. Donovan of Sanford is president of Donovan Management Inc., which assists organizations engaged in philanthropy.

By Gino Santilli, CEO of Personal Touch Mailing Services, Orlando

1. USE A LOCAL MAIL HOUSE AND SAVE ON POSTAGE: The Post Office gives discounts for some local zip codes if mailed locally. Using internet and out of area mailing facilities may be costing you valuable postage….usually the highest cost in your direct mail campaign.

2. USE A BARCODE ON YOUR RETURN MEDIA: If you do not place a barcode on your return envelope or card, the Post Office will not allow your mailing to be processed at automation rates resulting in higher postage.

3. BE SURE YOUR MAILER IS THICK ENOUGH: A mail piece, whether it is a folded flyer or oversized postcard, must be at least 9/1000 of an inch thick or may be subject to much higher, non-machine postage rates.

4. TOO SQUARE MEANS HIGHER POSTAGE: If your mail piece does not meet the Post Offices rigid aspect ratio guidelines, you may be subject to much higher non-machine postage rates.

5. WATCH YOUR STAPLES: Staple placement is critical and could dramatically affect your mailer’s classification which could result in added labor & postage costs.

6. PROPER DESIGN AND FOLDING SAVES MONEY: The direction in which your mail piece is folded will dictate the number of wafer seals needed as well as whether the mail piece is machine or non-machine assembled which greatly influences your postage rates.

7. ADDRESS PLACEMENT & AREA SIZE: Label placement is very important for both letters and particularly flat sized mail and the size of the address area that you provide must be large enough to accommodate all postal endorsements for the lowest possible postage rates.

8. HIGH GLOSS COATINGS: If your mail piece or postcard has a finish on the addressing side such as a Varnish, UV or Aqueous coating, your mail house may not be able to inkjet the addresses onto your media which may result in higher labor cost and affect the integrity of your design.

9. DON’T PURCHASE A POSTAGE PERMIT Why pay the Post Office a large annual fee for your own permit when you can use a mail house permit at no cost? Whether you require a standard, non-profit or first class permit imprint, a mail house can supply them at no cost, you just pay postage.

10. DO I NEED A RETURN ADDRESS ON MY MAIL PIECE: The Postage Payment Method of your mail determines whether or not you should place your return address on your mailer. For example, most Standard Mail does not require a return. First Class, though not required, is recommended so as to receive your address corrections, a free service provided by the Post Office. Non-Profit Mailings MUST have the return address printed on the mail piece exactly as it is on file with the Post Office.

11. READABILITY OF YOUR AUTOMATION MAILER: If your return address is printed along the OCR read area of your mail piece and any of your mailing addresses are undeliverable, the Post Office’s OCR reader may read the return address instead and mail this media back to you. This can cost you in wasted printing, processing and postage.

12. MAILING IN-HOUSE COULD COST MORE: Many nonprofit organizations try to keep costs down, as they should, by utilizing volunteers and/or employees to process their mail. As the Post Office continues to tighten their budgets, they are turning to high tech automation to lower their labor costs. This automation can offer deep postage discounts for mailings. However, this savings can only be achieved through constantly updating your software and equipment. Most mail houses keep up with the changes in technology and can save you money by using their equipment.

A final note — Since the U.S. Post Office regulations continue to change at a rapid pace, the information presented here should be used as a starting point to assist you in your quality control process and not taken as the final rule.

Mr. Santilli has three decades of experience in direct mail marketing and advises nonprofit organizations on how to efficiently implement an effective direct mail campaign while adhering to tight budget restraints. You can reach him at 407-857-900 or by email at: ptms@cfl.rr.com or at www.personaltouchmailing.com

Three Steps To Increasing Philanthropic Giving In Today’s Economy

• Step I               Update your fund raising plan.
• Step II              Follow the money.
• Step III             Get face time with prospects.

Step I   Update your fund raising plan.

If your fund raising team of staff and volunteers is experiencing a steady increase in philanthropic gifts, grants and pledges, keep working your plan.  On the other hand, if giving is down you have to replace one methodology with another.  For example, if in the past you relied heavily on special events and in the past six months you have had to cancel events due to a lack of sponsors, why not try an in-home donor/prospect cultivation event?  Mix current donors with potential donors, socialize and then discuss the gap in giving and how vital it is that individual donors help close the gap as 85% of all giving is from individuals.  Pick the right host, allow guests to mingle and keep the “pitch” to a minimum.  The best way is to have a donor give a two minute testimonial.  Don’t ask for a gift on the spot.  Have information available as they leave that explains the gap in funding and how after the party guests will be contacted by a member of your fund raising committee or they can go ahead and give before they are contacted.  Be sure to point out giving options, especially online giving.

Step II  Follow the money.

Forbes just released its list of The Richest People On The Planet and over two dozen are from Florida.  Between the super wealthy and high income earners, there is plenty of money out there for the asking.  The challenge is researching those individual current donors and prospects on your list to determine their financial capacity to give.  That’s twice as important in this economy, locating the wealth.  We do this for clients with our eZ Screen Prospect Research Service and it helps clients segment their database from greatest to least financial capacity to give.  Pinpoint the wealth and you will be able to raise those funds to close any funding gap this year.

Step III Get face time with prospects.

You hear a lot about the use of Facebook in fund raising today.  It works and has provided a new stream of funds to many nonprofit groups.  On the other hand, most fund raising departments are understaffed and more time spent on Facebook, means less Face Time with major gift donors and prospects.  Again, in a tight economy staff and volunteers have to focus their time where they will get the greatest results.  As Peter Drucker would say, “time management isn’t about getting things done, it’s about getting the right things done.”

Be sure to equip your volunteers and staff with key talking points on how to make the ask.  Our publication, “Take The Fear Out of Asking for Major Gifts” can help.  Here are a few highlights from it.

Always answer for the prospect four key questions – where your organization has been, is today, where it wants to go in the future and what philanthropic investments are needed to get there?  Don’t presume the prospect understands your funding gap.  Your progress on keeping the gap narrow is one way to win over the prospect.  Let the prospect know that if he/she makes the gift, that inspires others to give and puts you that much closer to your goal.

One closing thought – I have been raising money since my days in high school, in college and since graduation from college.  It’s all I know.  What I have learned of late is just how many donors feel they are ignored by the organizations they give to.  How do I know that?  Because donors tell me and our Associates that when we interview them for studies and assessments. Make the centerpiece of your fund raising efforts, the faces of those donors who provide your philanthropy.  Showcase them in your newsletters, in ads and online.  Make it about them, not your organization.

All the best for continued $ucce$$.  If we can help you in advancing philanthropy for your organization, give us a call at 407-321-0024 or email dmimgt@aol.com.

Jim Donovan

Twenty-five years ago, when I started my consulting business with other partners, we held week long classes on successful fund raising techniques.  At the end of the week each participant received a certificate of completion and then Lee would give closing remarks to the class.

Lee was so exciting and animated that he made Steve Martin of a Wild and Crazy Guy fame, look dull.  After being introduced he would sprint to the podium, raise his hands and start yelling, “Five seconds on the clock, fourth and goal, score tied 7-7, let’s go!” His enthusiasm was more contagious than measles.

Well, I caught up with Lee recently and he was kind enough to let me ask him what advice he would give fund raisers in today’s economic climate, especially with year-end giving. Here you go.

First- Be passionate about your cause.

Whether you are working to preserve the planet, save wildlife, cure the sick, preventing abuse, caring for the elderly, feeding the poor — you must be passionate, says Lee.  He asks, “If you can’t be excited about the mission you are on, how do you expect others to be?” Don’t be afraid to show your emotions.  After all, most donors give out of emotion rather than reason or logic.

Second – Focus on the fundamentals. According to Lee, “the close games in college football are won by coaches and players who stick to the basics.” In a tight competition or tough fund raising climate, don’t try to get fancy.  Stick to what works.

Third – Do your homework.  Before every football season starts Lee heads to a little fishing village on the west coast of Florida and studies dozens of pages of statistics, charts and pre-season team rankings so he can be prepared on College Game Day to predict the winner.

Fourth- Get out of the office and in front of donors. Lee says, in doing so “use the three P’s of successful football — persistence, practice and patience.” Be persistent about getting the appointment, practice the ask, be patient when the donor needs more time before making a decision.  Don’t rush the process.

When Lee’s fellow commentators are making their predictions about who will win the game, he is fond of saying to them — “Not so fast my friends.” Good advice. Don’t be too fast to keep fund raising the way you have.  Heed Lee’s advice.

If you live in Central Florida, you might run into Lee in Heathrow where he serves in the off season as Director of Business Development for Dixon Ticonderoga, a pencil manufacturing company.

In 1985 Lee Corso was the head coach for the Orlando Renegades.  Born in Cicero, Illinois, he was quarterback for Miami Jackson Senior High and went on to play football for Florida State University where his football roommate was Burt Reynolds.

As always, your comments are always welcome.

All the best for success.

Jim

P.S.   Our books, Take the Fear Out of Asking for Major Gifts and 50 Ways to Motivate Your Board, make great holiday gifts. Learn more click here.

In an informal poll of fund raising clients it was not surprising to learn that a major challenge in the current economy is donor retention.  In addition, this is the #1 question we get in emails and telephone calls each week.  Here is what we have learned from donors we have interviewed over the years, and of late, in recent studies about their continued giving.

We have classified the donors as follows:

Activists – these are younger donors, 30-40 years old who spend a lot of time getting their news from the internet and want to do something about the latest crisis somewhere around the world.  They are very emotional about earthquake victims in Haiti or China.  They thrive on the immediacy of sending their support so they click and give.  They love the online eNews updates. Traditional charities do not appeal to them.  “My parents gave to the American Red Cross,” is a typical response.

Loyalists – they are just that, loyal year after year and inclined to keep giving provided there is frequent communication to them from the organization. “We always hear about how our gifts are being used and that is important to us,” is often the way Loyalists describe their reason for being so.  Most loyalists are college and university donors, as it has been drilled into them to “give back.”

Traditionalists – are the opposite of activists, as they are not internet savvy, prefer direct mail requests and support long established American charities and nonprofits like the American Red Cross, Big Brothers & Big Sisters, The Salvation Army, UNICEF or the YMCA.  Many traditionalists served in World War II, experienced the depression, know hard times, lived in the same community for years and don’t believe there is a need for so many new nonprofit groups.  And, they don’t trust online giving.

So, how does one retain these donors?

Let me suggest three ways that cover all three categories and the rationale.

1.  Increase your communication about how the donor’s most recent gift was used, made a difference and how grateful your organization is to them for helping to meet your mission.

Why?  The number one complaint we hear in study interviews is, “I give and never hear anything back, until it’s time for another contribution.”

2.  Ask donors why they give to your organization and what they think.  When is the last time you did a mail and/or online survey?  Surveys are a great engagement tool.  They send a message when you send them out that you want to do a better job and that the input from your donors is a top priority in doing that.

When facilitating a board retreat I often conduct a pre-retreat survey to identify in advance the issues/concerns facing the board.  I get more candid opinions this way than if I did this in an open session.  In addition, it saves time at the retreat and allows me to begin with a discussion of the issues facing the organization as they see them.

Why? Look at the Five Star hotels and how over the years they have perfected this.  As many a hotel executive has told me, “We live and die by those surveys.  Some get fired over them.” Sure many folks do not take the time to complete the survey.  However, you were given the opportunity to chime in or sound off.  And if you are like me, I say to myself, “They can’t fix it if they don’t know about it — complete the survey dummy.”

3.  Tweak your case by emphasizing worthiness rather than the neediness of your organization. In this competitive and tight economy, you have to stay sharp.  Donors can drift away to organizations that appear more appealing or timely in their mission/work.  Are you tying your case to the times?  Does your organization help those most affected by the tough times?  Can you give examples?

Why?  Dozens of new nonprofits are being established every day.  A businessman who watched the evening news had an idea on how to help the poor and created the water brick.  Now he is featured on the national news demonstrating his unique plastic brick that holds water and food and when emptied serves as an actual building block to construct a home.   Check out: www.waterbrick.org.  When was the last time you tweaked your case AND got press coverage of it?

Finally a word about mission drift – nothing will hurt your chances of keeping the donors you’ve got more than drifting away from your mission.  Donors know that without their money you have NO mission.  Money follows mission.  Too often nonprofit groups fail to constantly communicate their mission to their constituency and in a concise way.

Regardless of how precise your mission statement, nothing enhances it more than a great theme right after it.  Of course, my all time favorite theme is from my former employer of years ago — The United Negro College Fund – A Mind is a Terrible Thing to Waste.

If you would like us to help you keep the donors you got or engage your board more in fund raising, we would be happy to discuss a seminar with you or click on our publications at our web site.

As always, let us hear from you about this most recent Blog.

All the best for continued $ucce$$.

Jim Donovan, President, Donovan Management, Inc.