Nonprofit Bridge

This week’s installment of the Blackbaud webinar series Cultivating Lifelong Donors:  Stewarship and the Fundraising Pyramid presented by Lawrence Henze focused on how nonprofits have traditionally focused on entry level giving and major donors, but have not paid attention to mid-level donors.  Interestingly, I had lunch with a friend who is a director of corporate giving for a NYC nonprofit, and he mentioned the same issue.  A few takeaways from this session:

1. Identify what giving levels are ‘mid-level’ for your organization – will vary depending on your constituent base
2. Focus on patterns such as how long these donors have been supporting you, at what time of year, and what age or life stage they are at (there are ways to append this information from other sources if you don’t usually collect it)
3. Develop stewardship strategies to develop closer relationships with these supporters, e.g. personalized thank yous or opportunities to interact directly with organization staff.

To do this effectively, you must have a central database which everyone uses, and where you enter each ‘touch point’ you have with a constituent.  The product you select doesn’t have to be expensive, but you need to develop an organization mindset where staff are accustomed to tracking and sharing information.  This can sometimes be a greater challenge than finding the right product.

I asked these questions during the Q&A session:

• Who in development should be assigned to mid-level donors?  The first response was ‘whoever is willing to take it,’ but generally it should be given to those who work with major donors.  After all, the hope is that many of these mid-level contributors will eventually advance to the major donor level.
• What about having the same person work with a donor as she/he rises through the fundraising pyramid, providing continuity and allowing a solid relationship to be built?  Lawrence said that he hasn’t often seen this in over 30 years of working with nonprofits, and that it might be difficult due to the high turnover of development staff.  But he added that if it could be done, it would most likely be successful.

Think of how you feel when you get to know a salesperson when preparing to buy a software product, then as soon as you make the purchase, you have to deal with the normal support staff, who then have to learn all over about your organization’s needs.  Wouldn’t you feel more comfortable if you could continue to work with the person you started with?  Try this with your constituents and see if it encourages them to move further along the fundraising pyramid.

Attended two events this week on social media, one live and one over the web.  Bonnie McEwan of Make Waves presented ‘U R What U Tweet: Social Media for Career Enhancement‘ at the NYC Foundation Center.  Blackbaud‘s Frank Barry presented ‘Donor Engagement through Social Media.’

At Bonnie’s presentation, I replied to an audience question about how does someone show that they are  ’social media savvy’?  For an individual who wants to establish their professional brand, start with LinkedIn and then a blog – if you can maintain it regularly.  For an organization, Frank suggested selecting a few social networks to start with, preferably those where your constituents are already speaking about your organization and/or cause.  Don’t try to be ‘everywhere’ or by simply using the same messaging.

Should one try to maintain separate professional and personal profiles on sites such as Twitter?  Bonnie said no, that it’s better to ‘be who you are.’   I agree – but make sure that at least 75-80% of your posts are related to your brand.  Bonnie added that every nonprofit should have a social media policy – see this example.

How do you find out what others are saying about your organization.  Frank summarized these tools, only one which is paid:

• socialmention
• twitter search (my tip – use the advanced option)
• google alerts
• technorati (to search blogs)
• igoogle dashboard (can be used to summarize feeds from above sites)
• radian6 (paid, but provides more sophisticated options)

If you are on social media, you need to engage your audience in conversation, not just send out information.  Frank suggested several ways to enhance your Facebook presence:

1. use custom tabs
2. create calls to action (e.g. sign up for our enewsletter)
3. provide direct links to other social networking sites
4. customize your logo
5. take advantage of Facebook’s built in photo sharing tool (or use Flickr)
6. post updates on your events
7. use third party fundraising tools
8. allow others to post on your wall
9. use video to connect with supporters
10. include content from your blog

Here’s another perspective on designing social media engagement from Debra Askanase.

Don’t forget to learn from those nonprofits that are actively using social media to build their supporter base;  Patrick Kwan and Carie Lewis at the Humane Society;  Wendy Harman of the American Red Cross, and the National Wildlife Federation‘s Danielle Brigida.  (As Frank pointed out, it’s best to put someone in your organization in charge of your social media efforts.)

Is social media worthwhile?  In my view, it’s important to measure your success not only by the financial contributions your organization receives, but by the level of commitment supporters demonstrate to your mission.  By maintaining an ongoing conversation with constituents in social media, you will ultimately benefit by both measures.

This week I had the pleasure to be featured on Nten’s Facebook page (Thanks, Holly) of responding to some questions on implementing ephilanthropy strategies.  One commenter mentioned the difficulty of working in an environment with extremely limited financial and staff resources.  Most of us who have worked in nonprofit can relate, but this doesn’t mean that nothing can be done.  Using the Web, especially social media, is available to all, and often the smallest organizations have the most dramatic success.  Here’s a few simple tips that any nonprofit can take advantage of:

1. Hire people that are enthusiastic about your mission, and who can spread the word to their networks.  As Beth Kanter points out in her recently released The Networked Nonprofit, this also means recruiting those outside of your organization who are also willing to help.
2. Keep building your email list.  While it’s nice to have followers on Twitter and friends on Facebook, it’s still important to be able to directly communicate with supporters by email, and not only when you want to ask for donations.
3. Learn from what other nonprofits have done, such as the wildly successful Charity:Water, and don’t be afraid to ask others for help (try Progressive Exchange);  nonprofit professionals are usually very generous with their knowledge.
4. Read publications such as Convio’s Nonprofit Online Fundraising Guide and Blackbaud’s Index of Online Giving, as well as this recent publication focusing on grassroots environmental organizations, but which has ideas which can be helpful to all nonprofits.
5. If you’re not already a member, join organizations such as Nten, where you will be able to share ideas with colleagues, attend online trainings and keep yourself motivated.

When my wife and I moved to a smaller home last year, I was faced with the daunting task of reviewing a batch of papers that I had accumulated over the years, many which were articles clipped from magazines or printouts of web postings that relate to online fundraising and marketing.  To my surprise, some of these articles are still very much relevant.  A sampling is below:

Multi-Channel Fundraising: Tips of the Trade (2007) – David Lawson, then with Kintera (now part of Blackbaud) and now with DonorTrends, offered seven tips in how nonprofits can establish a multi-channel fundraising initiative:

1. ask constituents their preferences on how they prefer to be contacted and what they want to be contacted about
2. use web analytics to learn what constituents are most interested in and which channels are most utilized
3. add communication preferences as another way to segment the database
4. set up a social networking page (Most of us have done this by now but still struggling to prove its value)
5. create cross-functional campaign integration teams so that multiple departments within an organization are accustomed to working together
6. enable incoming multiple-channel communications – give constituents multiple ways to respond – e.g. phone, email, web site etc.
7. maintain consistent messaging so that ‘overall message the image the organization would like to convey remains consistent across channels.’

Tips to Energize Your Donor Newsletter (2009) – This article from FundRaising Success Magazine details what many nonprofit enewsletters do wrong:

1. focusing too much on organization and not enough on what donors care about, e.g. how did my contributions make a difference?
2. not using the word ‘you’ to further focus on the constituent
3. lacking emotional triggers
4. not making donors feel that they are essential to how you achieve your mission
5. including long articles instead of short paragraphs, bulleted lists
6. using statistics instead of anecdotes
7. lacking a strong headline that will encourage a constituent to read the content

Also provided were 15 ideas on what content to include in a enewsletter (many nonprofits still wait until the last minute and struggle with what to write about).

Accentuate the Positive: How to Bridge the Divide between Fundraising and Marketing Efforts (2007) (only accessible online if you are an AFP member) – As I’ve often suggested, Network for Good‘s CEO Bill Strathmann describes the roles of marketing and fundraising are “complementary,” explaining how in many nonprofits, marketing is fundraising since it exists primarily to encourage support of the organization.  Jo Sullivan, now with CDR Fundraising Group,  previously managed both functions at ASPCA and described how she successfully build a strong organization brand.

(On the same topic, see Nancy Schwartz’s 2008 post on how to Make Your Communications Planning a Team Effort.)

In an effort to be more ‘green’ – and to avoid the problem of clipping articles that I won’t easily find again – I eventually switched to saving articles on my computer and then to referencing in my blog and social networking sites such as Twitter.  This is much more satisfying since not only do I reinforce my personal brand in ephilanthropy, but am also able to share interesting information with my nonprofit colleagues.

Implementing the recommendations above is difficult because it may require us to restructure our organizations and change how we think about developing and implementing online campaigns.  Have you been able to do this at your nonprofit?

Blackbaud’s Steve MacLaughlin kicked off a Lessons Learned from Haiti webinar series today with an overall review of how many nonprofits responded to the recent earthquake in Haiti.  Some memorable takeaways:

1. After a disaster happens, there is a limited window to reach and engage supporters.   It’s critical to act quickly.
2. If you wait for an emergency situation to happen, it’s too late.  Be prepared with email templates, photographs and develop processes so you can quickly update web page / donation form content (this is not often the norm at many nonprofit organizations).
3. Emergency situations can impact any nonprofit, not just those that traditionally respond to disasters, such as the American Red Cross and Doctors Without Borders.
4. Online, social media and mobile are first response channels of choice in responding to a disaster.
5. Reliable people, processes and technology are critical
6. Follow-up!  Reaching out to constituents doesn’t end after you’ve sent an email appeal immediately after the disaster occurs.
7. Accountability is important;  make sure donors are told how their funds have been used.
8. Plan in advance – make sure your web site / donation forms can handle temporary spikes in traffic.

Upcoming sessions in this series will focus on mobile giving as well as mobilizing your supporters using social media.  Register now for these free events.  Nonprofits play a critical role in disaster recovery efforts.  As Steve reminded us today, don’t wait for the next emergency to prepare your organization to respond.

If you haven’t yet completed the 2010 Nonprofit Social Networking Survey, please do so now.  This initiative is co-sponsored by Common Knowledge, Nten and The Port, and results will be announced at next month’s Nonprofit Technology Conference in Atlanta, GA.  All survey participants will be entered in a drawing for an Amazon Kindle (don’t forget to include your email address at end) and will receive a copy of the report.

Can’t wait?  Below are recent reports on social media usage in nonprofit organizations:

• M&R Strategic Services - Nonprofit Social Media Benchmarks Study
• Idealware – Using Social Media to Meet Nonprofit Goals
• Blackbaud / Charity Dynamics – Successful Event Fundraising with Social Media
• Website Magazine (not nonprofit specific) – Social Media Survey

When you present, do you get frustrated with attendees who seem to be paying more attention to their phones / computers than to your presentation?  In her presentation this week on the Trainer’s Social Media Tool Box, Beth Kanter explained how to use social media to enhance your sessions by encouraging sharing of information.   A new book, the Back Channel, details this phenomenon in more detail.  (If you’re still waiting until the end of your talk to take questions, you definitely need to see Beth’s notes.)

Jeff Brooks also spoke on a Network for Good call on what not to do in online fundraising – slides are available here.  (Hint – if your figures are not growing, you’re missing something.)

Do you maintain a database for advocacy that’s separate from your main donor database?  Care2′s webinar on Connecting Advocacy to Fundraising showed how activists can also be top fundraisers, if you take the time to cultivate them.   Activists also consistently open emails more frequently than other supporters.

If you need help in selecting tools for your organization (who doesn’t?), take a look at Idealware’s just released Field Guide to Software for Nonprofits.  Laura Quinn’s organization has always provided great information through her web site, blog and enewsletter.  I helped with some edits for this book – it is definitely worth getting.

Now that there’s so many ways to communicate with constituents, are you taking the time to make sure your messaging is consistent and on brand across channels?  See notes from Kivi Leroux Miller’s talk this week on Integrating Your Website, Email Newsletter and Social Media Sites.  Also see Blackbaud’s tips on Multi-Channel Engagement.

Like most nonprofits, Idealist has having some challenging times and has asked for our help.  Ami Dar’s work has long benefited the nonprofit community.  Please help.

Finally, are you helping your constituents to run their own fundraising events, or do you only help with events run by your organization?  If so, you’re missing a huge opportunity. Read Independent Fundraising Events Bring Big Returns, which links to a recent white paper by Blackbaud and Event 360; you can also register for a webinar on Feb. 3 to learn more.

This week’s disaster in Haiti has again highlighted online fundraising, as well as an expanded role for text messaging to raise money.  Apparently giving through your mobile phone is now a viable option and doesn’t always involve large fees to carriers – see post from Tech Soup, interview with Katya Andresen and CARE2′s advice that it’s Time to Get Mobile.  How sad it is that logistics have made it difficult to get the help to those in need quickly (hopefully this will change shortly).   Whatever channel you prefer, please give to the charity of your choice.

Hopefully, it won’t only be disasters that sends donors online.  Network for Good offers 5 Trends That Will Affect Online Fundraising in 2010.

But please don’t throw out the old tools when implementing the new.  Direct mail still has its place but this doesn’t mean that we shouldn’t try some new approaches.  As Steve MacLaughlin writes, Direct Mail is Not Dead, but single channel communication is.

Thanks to Katya and Jocelyn Harmon for this week’s session on how to thank donors.   It’s amazing to me that some nonprofits still don’t always acknowledge gifts, other than a generic auto reply (and sometimes not even that).   And don’t only communicate with your constituents when you’re asking for money – this is a year-round dialogue.

Care2′s Frogloop surveyed some of our brightest stars to summarize the Best Nonprofit Strategies for 2010.   Network for Good’s  Katya Andresen and Blackbaud’s Steve MacLaughlin provide some early statistics on 2009 online giving.   Convio, which offers a a 2010 Resolutions Guide to help plan online initiatives, recently asked nonprofits what they most want to focus on in the New Year:

1. Reconnect with donors by giving new options of engagement
2. Increase fundraising for participant-led events
3. Use social media to reach the next generation of supporters
4. Improve multichannel engagement/integration
5. Evaluate website’s effectiveness

Some of my thoughts:

1. Despite the recession, online giving continued to be a strong fundraising source.  If you already accept online donations and regularly communicate with your constituents, congratulations.  But if you haven’t worked to optimize your forms and don’t analyze how well your email marketing is working, you’re probably leaving money on the table.
2. Don’t obsess about the ‘best’ tools to use for online fundraising.  It’s more important that you select a vendor / product that will likely be around for awhile (ask colleagues at other nonprofits for recommendations) and that you consider how it will connect to your other systems.
3. Social networking is not a fad.  Yes, it’s still better to make sure your web site, database and email marketing strategies are in place first, but don’t overlook tools such as Facebook and Twitter.  Remember that conversations about your cause and organization are going on all the time;  make sure you’re a part of them.
4. Fundraising is everyone‘s responsibility, not just the development department.  Ideally, marketing/communication and fundraising/development strategies should be planned together since one supports the other.
5. Still think that your constituents won’t respond to online fundraising initiatives?  Think again;  use all available channels and let your supporter decide which to use – direct mail recipients often choose to respond online.

Just getting started online?  Here’s a helpful online fundraising primer.

Today’s Nten webinar led by Blackbaud Internet evangelist Steve MacLaughlin offered a comprehensive review of online fundraising.  See Steve’s Connections blog for links to reports referenced in today’s session.  Some of my takeaways:

• While online revenue represented only 5% of total fundraising in 2008, online receipts jumped 44% over 2007
• Event fundraising emails (e.g. friends asking friends)  have an incredibly high click through rate – 57% in period covered by study
• Only 16% of event fundraisers send emails – imagine how much more successful these events could be if more participants were encouraged to fundraise!
• Donor retention is much worse for online donors than for offline acquisition.  More analysis is under way, but this may be partially due to donors having the ability to make ‘spur of the moment’ contributions without having a real commitment to the organization
• How to increase donor retention? It is critical to quickly respond to donors / event participants / those who take an action to solidify the relationship.  (How often have you not received an email confirmation, or have received a boilerplate document with no customization?)
• Senior management must drive integration of fundraising across channels – “We don’t live in a single channel world.”
• Facebook and other social networking platforms are still more useful as engagement tools than as primary fundraising techniques.
• Small organizations may be able to do as well or better than larger nonprofits since they don’t have the traditional infrastructure and can act more quickly

While most of these points weren’t a surprise, Steve’s summary provides a great overview for nonprofits that still need help in creating online fundraising strategies.

Addendum 11/5/09 – Hear me interviewed on Zonta Women’s Community Radio about how nonprofits should approach ephilanthropy and social media.  Thanks Roxanne Neilson, President, Zonta Club of New Rochelle for arranging.