by Ted Grossnickle

A few weeks ago we shared a link to a survey conducted by the Nonprofit Research Collaborative.  This survey and the resulting report are produced as a cooperative effort of the Association of Fundraising Professionals, Blackbaud, the Center on Philanthropy at Indiana University, the Giving USA Foundation, Guidestar, and the National Center for Charitable Statistics.

I wanted to share with you the some interesting findings from the resulting “Late Fall 2011 Nonprofit Fundraising Study,” published this month. 

Slow Recovery, Leaves Some Behind

In general the survey appears to suggest that charitable giving is in the midst of a slow recovery, but that the rising tide may not be lifting all ships equally.  A plurality (41 percent) of organizations reported seeing increases in their charitable revenue through the first three quarters of 2011.  In contrast,  28 percent saw their revenues decline and 31 percent reported that charitable revenues had stayed flat compared to 2010.

New Donors are a Bright Spot

Another series of findings of particular interest related to the number of organizations reporting increasing success in acquiring new donors.  Half of organizations reported that they had more success attracting new individual donors in 2011 compared to 2010.

More See Increases in Gift Size, Than Decreases

In addition, many organizations reported increases in the size of average gifts.  Though 46 percent of organizations reported that the average size of gifts from new and renewing donors stayed flat, more organizations reported seeing increases in the average size of gifts. 

More organizations reported increases in gift size from new donors (30 percent) and renewing donors (29 percent), than those reporting decreases in gift size.  Only 24 percent saw decline in average renewal gifts, and only 25 percent reported decreased average gifts from new donors.

Though we are clearly not out of the woods, and continued global economic instability may jeopardize the gains made both economically and in terms of charitable giving in the last two years, we continue to see indications that donors may be starting to reengage and once again expand the circle of causes which they support.   

It is our job as fundraisers and consultants continue to create opportunities that draw donors back into the fold and maintain the connections with existing donors that have weathered the financial storm.

 by Angela White

This week, more than 125 communities and over 50,000 people will be celebrating National Philanthropy Day (November 15^th).

These celebrations honor the donors who generously give billions of dollars and volunteer hours each year to feed the hungry, clothe the needy, save the environment, cure the sick, and fund systemic and long-lasting change.

You know these donors in your community, and I encourage you to send them a special thank you on National Philanthropy Day to acknowledge the difference they are making in countless lives each day. 

JGA is pleased to be celebrating National Philanthropy Day in two cities on the same day  — on November 17^th JGA will host a table to celebrate the honorees in Cincinnati, OH at a luncheon and in Indianapolis at a dinner that evening.

Check out the Indianapolis recipients and the Cincinnati recipients.

And, for all of us who try to emulate these philanthropy leaders, check out Change the World with a Giving – and Wise – Heart! and watch the video for tips on giving wisely, including:

• Plan your giving – create a giving plan that details how much you want to give, when you would like to give and what type of charities you want to support.
• Decide when you will give – some charities struggle in Spring and Summer when giving drops significantly.
• So many charities – educate yourself about the many charities looking for support
• Knowledge is power – thoroughly research those charities you identify
• Financial data is important, but doesn’t tell the whole story – review financial data, but don’t use it as the only metric to whether a charity fulfills its mission.
• Know your rights as a donor – review the Donor Bill of Rights and make sure you are treated fairly.
• Give from the heart – give to support those charities you truly believe in.

Happy National Philanthropy Day!

by Andy Canada

There are many steps an organization must take to build and maintain a loyal and sustainable donor base, and perhaps the most important and often overlooked is retaining your existing donors.

Not only is putting a stop to donor attrition important, it also pays dividends, according to a recent report from the Fundraising Effectiveness Project (FEP), a joint effort by AFP and the Center for Nonprofits and Philanthropy at the Urban Institute. The 2011 Fundraising Effectiveness Survey Report shows that for every $5.35 gained in new gifts by an organization in 2010, $5.54 was lost from the organizations current donors not renewing, resulting in an average net loss of 1.9%. Though the study did show improvement from 2009 to 2010, donor attrition is still a challenge that nonprofits need to address.

As we have all heard many times, it is more cost effective to retain and motivate your current donors than it is to attract new first time donors to your organization. However, often current donors are taken for granted as organizations go out searching for a new group of potential donors. Attracting new donors to your organization should never overshadow stewardship to your current donors.

Turnover of donors increases your overall fundraising costs and inhibits growth. With increased turnover, organizations struggle to build long term and sustainable relationships with donors, move donors to higher giving levels, or build a major gift pipeline for the future.

Here are some steps to assist in donor retention:

1. Focus on thanking your donors within 48-72 hours after they make their gift. Let them know the gift has arrived safely and that you appreciate their support.
2. Personalize your communications. Utilize your database system send personalized letters and notes.
3. Periodically touch base with your donors. A personal call is great but an email providing an update on the organization is also effective. Allow them to feel engaged with the organization.
4. Personally visit to say thank you whenever possible.
5. Explain how their gift has made an impact.

These are basic steps but they do require an investment of time and coordination from your organization. But, current donor relationships are an asset well worth the investment.

by Ted Grossnickle

I am honored to be a campaign co-chairman and trustee for my alma mater. This makes me think about the advice I am asked to give to clients in a new way.

When I talk with clients about what ought to be expected of trustees and other volunteers, I have a perspective as a trustee and volunteer in addition to that of a consultant.

It’s not that the two are mutually exclusive. They’re not. But they are different.

Certainly you want a consultant to be objective- even dispassionately so. You want a trustee and co-chairman to be passionate about the cause.

Both perspectives are required for success in a campaign. It is the blend of those two ways of looking at strategy (and tactics) that help (in this case) a College find its way with philanthropy in challenging economic times.

From these two perspectives, I recently shared in a short video what I believe are key questions a trustee should ask when they hear about a proposed campaign:

1.  Do you understand why a campaign is proposed and will it advance the mission of the organization? Will it help you help people? Will you do better work?

2.  Have the staff and the CEO thought through the campaign… thoroughly? Do they know what will be required of them? Can they support the effort? Are they ready to support volunteers?

3.  Are you prepared to be personally very generous to the campaign and also serve as an ambassador sharing your passion and explaining the mission of the organization to others?

4.  Has an objective set of eyes studied the campaign – and reported authentically on what will make it work— and what might derail it?

I’d be interested in hearing your perspectives about these key questions. Please let me know what you think. We’re all students when it comes to getting it right for our institutions…

by Andy Canada

So who is tired of hearing about credit ratings, a possible double dip recession and an up and down (mainly down) stock market?

It has certainly been a really interesting and unsettling few days in the financial markets. The recent news is coming on top of a slower than expected economic recovery and will most likely allow the seed of uncertainty to grow in your donors’ minds.  

So how will you and your organization deal with these ever changing times?

It is hard and most likely impossible to predict when the economy will improve, but you and your organization need to stay on course and continue executing your plan of action.

Stay in communication with your donors and continue telling your story. The recent economic news might make people slow down their gift decisions or make smaller gifts, but your donors will still want to hear from you and stay connected to the mission of the organization.

During the last economic slow-down, the non-profits that stayed in contact and maintained close relationships with their donors came out with stronger relationship and more loyal donors.

We don’t know what the recent events will bring or how long this uncertainty will last but we feel that the same principals will apply and that the time you spend with your donor base will have a long lasting impact on your organization.

by Dan Schipp

Conventional wisdom tells us there are two ways to raise more money from individual donors:

1. Get the donors you currently have to give more
2. Get more donors to give

But, new research indicates you may need to adjust your messaging based upon which group of donors you are approaching.

A recent study conducted by researchers at the University of Texas, the University of Chicago  and Sungkyunkwan University may provide insights on both counts.

The study evaluated responses to direct mail appeals and found that donors who identified closely with a cause were more motivated by a great need than they were by accomplishments. 

Conversely, they found that less connected donors were more likely to give and give more when they saw an organization had already made progress towards a goal, and were less motivated to give purely by a statement of need.

This research aligns with the standard wisdom in campaign fundraising. We encourage our clients to begin their campaigns with a silent phase during which they share their organizational needs and vision with their closest and most supportive donors. 

Once this early effort has reached a critical mass and a significant portion of their goal has been reached, an organization can use that success to spread the campaign’s message more broadly in the public phase of the campaign.

Beyond this affirmation of conventional campaign wisdom, this study also presents a blueprint for engaging new donors or upgrading your current donors outside of larger campaigns.  

If you are looking to expand your donor base, you should be keenly aware of milestones in your organization’s work, either fundraising or programmatic in nature, which could be used to show potential donors the tangible progress that appears to motivate them. 

Meanwhile, messages of need can be targeted specifically to those donors that you know identify closely with your cause.

by Andy Canada

Spend the day at your desk (or your favorite wireless hotspot) learning LIVE and interacting with leaders who are helping nonprofits engage the next generation. 

Can’t spend the whole day with us, don’t worry, your registration gives you access to the archived presentations for a full year.

This virtual conference will explore how to engage Millennials beyond the donation with real examples of activation, engagement and innovation; see fresh new uses of technology - from social media to mobile; and hear honest cross-generational dialogue about what works and doesn’t in organizations big and small.

Speakers include:

• Angela White, JGA
• Heidi Adams, LIVESTRONG
• Geoff Livingston, Zoetica
• Jacob Colker, Sparked.com
• Wendy Harman, American Red Cross
• George Weiner, DoSomething.org
• Erica Smith, Society By Design

And many more!

Our closing speaker Barbara Pierce Bush shares how she and her team at the Global Health Corps are leveraging the unique characteristics of Millennials across all sectors to address the global health crisis.

Click here to view the full agenda and read speaker bios.

Register Today! For only $75 per individual or $300 for an organization (up to 5 individual logins) your pass allows you to attend the summit, view the conference speakers online live, participate in conversations, and download the presentations anytime for the next 12 months.

by Angela White

Over the past decade, the concept of a giving circle has established itself as a growing and effective philanthropic trend among all wealth levels and backgrounds. The social aspects of giving circles, however, also make them uniquely suited for two rising philanthropic audiences – women and Millennials.

A 2009 report on giving circles, demonstrated their effectiveness showing that giving circle members give more, give more strategically, and are more knowledgeable about nonprofits in their communities.  

[You can download the full report and access tools to learn how to set up your own giving circle from start to finish at The Giving Circles Knowledge Center, hosted by the Forum of Regional Associations of Grantmakers.]

But it is their unique ability to combine social interaction and peer-to-peer fundraising that makes giving circles stand out as a trend for the future. 

In my work in women’s philanthropy and in JGA’s ongoing research on millennial donors, we have seen evidence that both of these audiences look for the ability to combine their giving decisions with their interactions within their community, family and friends. Both audiences seek to make philanthropy a social activity.

For example, in our 2011 Millennial Donors study with our partner Achieve, we found that Millennials want to engage with friends and family in volunteering, are motivated to give by friend or peer endorsement and are more likely to trust an organization if their friends or family endorse it.

I’ve also seen some interesting examples of giving circles working to successfully engage women donors.

First, there is the High Water Women group.  Founded in 2005 by senior-level women in the hedge fund industry, High Water Women provides funding to nonprofit partners while also sharing its members’ financial expertise with the nonprofits.  

Looking at the next generation of female donors, check out GirlUP (insert website here: girlup.org). GirlUp gives girls in the US the opportunity to raise money for U.N. programs that reach girls in other countries.

As you can see, giving circles are already being employed effectively with women and girls, but what about the Millennials?

It may be a case of lack of education. While in theory giving circles should lend themselves well to young donors who seek socialization with their giving, our research shows that 50% of Millennials were uncertain about the role of a giving circle.

To me this means we have a wonderful opportunity to engage Millennials in giving circles once we first show them how Giving circles can help them combine fun and philanthropy.

Do you have any examples of successful giving circles for women or Millennials you can share?

For donors ages 20-35, celebrity endorsements offer little sway and personal asks trump technology

INDIANAPOLIS (April 7, 2011) – While the Millennial generation has often been characterized as a self-centered, technologically plugged-in and personally disconnected group, a new survey reveals that people ages 20 to 35 are in fact diverse, human and ready to give.

The second annual Millennial Donors Study conducted by Achieve and Johnson, Grossnickle and Associates (JGA) finds that of the 3,000 people ages 20 to 35 who responded to the survey, 93 percent gave to nonprofit organizations in 2010, with 10 percent giving $1,000 or more.

One of the key factors contributing to that generosity is an organization’s trustworthiness. Nearly 85 percent of respondents said they would be very or somewhat interested in giving to organizations they can fully trust; on the other hand, nine out of 10 donors said they would stop giving to an organization if it somehow lost their trust.

This year’s survey echoed a number of questions from last year’s but also delved into new areas and offered more detail in an effort to provide new insights into the giving habits of Millennials.

To download the complete study, learn more about Millennials and register to participate in a free Webinar on April 21, visit www.MillennialDonors.com.

To further explore the next generation of donors, join us on June 22, as JGA and Achieve partner with the CASE Foundation to present a virtual summit you can attend right from your desk.  MDS11 will feature national speakers challenging the traditional modes of fundraising and engagement. Watch for registration information soon at MillennialDonors.com.