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A Fundraiser's Newsy Letter November 2004
November 19, 2004

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Funding Tips & Trends 

Spread a little Joyaux in your program! Internationally recognized speaker, author, and consultant Simone Joyaux, ACFRE, can come to your community or agency to present workshops and seminars on fundraising and organizational development. Topics include strategic planning, fund development, governance, organizational development, social justice, and women in philanthropy. Presentations can be scheduled for 1.5 to 3 hours, or for a full day.

For more information, and to see Simone's current speaking schedule, visit Joyaux Associates online.

Tom Ahern, developer of the "Love Thy Reader" communications workshops, also is available to share his wisdom on developing a strategy statement, writing newsletters that donors love, and speaking to your reader's self-interest. For more information, visit Tom's website.

Americans remain distrustful of charities. Confidence in charities remains 10-15% lower today than it was in the summer of 2001 -- before the controversy surrounding disbursement of funds for victims of 9/11. Only 11% of Americans think charitable organizations spend their money wisely, even though most think charities do a good job helping people.

Donors and volunteers are increasingly strategic in their giving -- they want to see impact and accountability. Nonprofits need to embrace the call for reform, invest in core operating improvements, and police poor performers. That's how to win back confidence -- not by complaining about negative media coverage, worrying about legislative changes, or even investing resources in touting successes.

[Source: "Fact Sheet on the Continued Crisis in Charitable Confidence," Paul C. Light, The Brookings Institution, September 13, 2004. Full text can be downloaded free.]

"People are motivated to give because they value the cause, whether it is religion, education, health care, or international relief." So said Henry Goldstein, chair of the Giving USA Foundation, in announcing the results of the 2004 Giving USA report, which found a 2.8% increase in charitable giving from 2002 to 2003. Overall, Americans gave an estimated $240.72 billion to charity in 2003, accounting for 2.2 percent of the gross national product of the U.S. The increase in giving was the biggest seen since 2000.

55% of charities told researchers that they received more donations in 200; 37% reported a decline in donations. Gifts received through bequests rose more than 10%, despite concerns about the phasing out of estate taxes.

Giving to health organizations rose 10.7%, while giving to arts, cultural, and humanities groups increased 7.3%.

For more information, see "Giving USA 2004," available from the American Association of Fundraising Counsel.

[Source: AAFRC press release.]

Don't just be a fundraiser -- be an organizational-development specialist! The latter are change agents; they serve the entire organization and look beyond the immediate need for funds.

The development officer needs to be more than a great fundraising technician. You must be willing to adopt an organizational development approach to the work of philanthropy and fundraising. Then you can develop your capacity.

Don't forget: more than 75% of "fundraising problems" are not fundraising problems at all. They are organizational development issues that affect fundraising.

For more information, see the monograph on Organizational Development Specialists on Simone's website.

Volunteers -- especially young people -- see 'what's in it for me.' 57% of volunteers believe volunteering has helped their careers by providing new skills and the chance to network with other professionals. 13% said volunteering led to a new job or career change.

87% of 18- to 24-year-olds said volunteering had helped their careers. And nearly one in four had met a romantic partner by volunteering.

For more information, see the 2004 Lions Club International Volunteerism Survey, available free online at www.lionsclub.org or by contacting Ellen Mahon at 312-228-6956 or Mahon@ketchum.com.

[Source: "Volunteers Say Charity Work Helps Them in the Careers," Cassie J. Moore, The Chronicle of Philanthropy.]

Keep these tips in mind when writing a press release:

  • limit to 1-2 pages in length
  • double-space
  • use 1.5- to 2-inch margins
  • print on your group's stationary with logo
  • avoid bright or dark-colored paper
  • type "NEWS RELEASE" on top (centered or flush left) followed by a release date
  • type page numbers on top of following pages
  • start with an enticing headline that briefly summarizes the news in the release
  • Write in "inverted pyramid" style -- most important information first
  • include "who, what, where, when, how, and why" information
  • direct reader to website or person to contact for event photos
  • include full contact information (name, title, phone number, e-mail) of person to contact for more information
  • check spelling and grammar
  • type "-30-" or "###" at the end of the release
  • only one release per e-mail or envelope
[Source: "35 Quick Tips for Writing a Press Release," Catherine Franz, FundRaiser Cyberzine.]

Looking for grants to fund technology? Be sure to:

  • Build strong relationships with funders. As with any grant, getting funders to pay for technology means building relationships.
  • Incorporate technology into your annual strategic plan. This shows funders how your technology needs relate to your mission, and provides a "road map" for your development staff.
  • Focus on your mission and programs, not technology for technology's sake. Ask: "How will this technology help us better achieve our mission?" Will it result in new learning and knowledge-building? Improve project coordination and collaboration? Enable latent community energy to be put into action? Create new capabilities? Make your work more efficient or increase productivity? Improve the client experience? Improve marketing and outreach? Increase fundraising? Enable better-informed management decisions?
  • Budget technology expenses as shared costs, not overhead, in grant proposals. Most funders see technology as just another cost of doing business.
  • Target technology funders. Look for funders who support "capacity building" -- many are willing to invest in technology. "Technical assistance" grants also may be used for technology consulting, planning, or even equipment. Community foundations also may be more apt to fund technology than national foundations.
  • Maximize existing resources. Properly maintain the equipment you have. Back up, update virus-protection software, train your staff. This can limit the new technology you need to purchase. It also will give you a good idea of what you have and what you need.
  • Tap local resources. Up to 75,000 community technology centers in the U.S. can help you pool resources with other local nonprofits, and avoid reinventing the wheel.
  • Partner with others for joint grant proposals. This gives funders a way to stretch their dollars and have a greater impact.
[Source: "10 Tips for Funding Technology," Bennett Grassano, TechSoup.]

Is your website "brochure-ware" or "ePhilanthropy"? Too many nonprofit website are glorified brochures, containing information about the organization but doing little or nothing to enable visitors to support your group. A "brochure-ware" sit may have plenty for users to see, but an "ePhilanthropy" site has a lot for visitors to do.

An ePhilanthropy site should enable visitors to:

  • make cash donations via credit card or e-check; in preset amounts; as a one-time gift or recurring amount; to support a specific program or service; and in the name of a certain individual
  • make in-kind donations, including goods and service, either as a direct gift or by offering an in-kind item for sale or auction in the group's e-store
  • sign up as volunteers for one-time or recurring projects
  • provide feedback on your organization
  • make referrals
  • enroll as a member
  • search an events calendar
  • send an electronic greeting card to friends
  • look for employment opportunities
  • take part in opinion polls
  • sign online petitions
[Source: Allan Pressel, CharityFinders.]

Gather e-mail addresses to built a potent mailing list. Offline, ask for e-mail addresses at every interaction with supporters -- during renewal appeals, membership drives, event invitations, etc. At events, leave out a newsletter sign-up sheet. Do a giveaway where participants must leave a card with their name and e-mail address to enter.

Online, drive traffic to your website with every communication. List your web address wherever you list your mailing address, phone number, etc. Promote voluntary online registration on your site to gather key information on supporters.

Viral marketing -- such as "forward to a friend" e-mail campaigns and electronic greeting cards -- also can be used to build e-mail lists and build support. E-mail "appending" services can be hired to find the e-mail addresses of donors and supporters in your existing database.

When gathering e-mail addresses, overcome resistance by emphasizing benefits such timely communications and financial savings and reduced administrative overhead, which allows more funds to go toward services.

[Source: "Building an e-mail address file: It's easier than you think," Gene Austin, Philanthropy News Network Online, August 6, 2004.]

Make sure your e-mail gets through! Use a concise subject line to catch the reader's eye. Avoid capitalization and sensational headlines -- they look like spam. Choose a display name and e-mail address that clearly identify your organization.

Use graphics -- sparingly -- to liven up your message. Include calls to action and links ( a handful is plenty) to next steps. Provide a plain-text version for readers who want to download and scan quickly.

Time e-mails to arrive early in the morning, or just before lunchtime, when they're most likely to be read. Be consistent to avoid spam filters -- send newsletters on a regular schedule, and always use the same "from" address.

[Source: e-Mail Deliverability: Make Sure it Gets Through," David Crooke, onPhilanthropy.com, July 2, 2004.]

Don't give up on supporters who can't give cash. Create a "members resource list" cataloguing the talents and abilities of those who back your program so you can call upon them when needed.

Ask each member or supporter of your group to fill out a questionnaire on their abilities. Always include an open-ended question like, "Is there any other way you can help that had not been raised on this form?"

Compile your responses into categories like legal, public relations, computer, etc. Keep the list confidential.

[Source: "Fundraising Idea of the Month: Member Resource List," Doug Nash, FundRaiser Cyberzine.]

What women want differs from the desires of male donors. Both genders give because they want to make a difference and have resources to share. But women:

  • are less motivated by tax benefits
  • give because they identify with or are passionate about a cause
  • tend to support social services and health causes
  • feel a need to repay society
  • tend to give more cash as gifts
  • ask more questions than men, and want to be more involved in causes they support
  • value connections more than recognition
Women over age 70 control most of the wealth in America. Be sure to address their interests, need for giving, how they want to be asked, and how they want their money used!

[Source: Women and Philanthropy: The Power of One!," Lilya Wagner, Ed.D., CFRE, onPhilanthropy.com, Today's Fundraiser, September 3, 2004.]

Internet ...

www.civicreflections.org: Electronic resource library of recommended texts for facilitating "civic reflections" discussions around the topics of giving, serving, associating, and leading. Developed by the Maine Humanities Council and the Project on Civic Reflection.

Resources ...

Giving USA 2004, which provides comprehensive data on charitable giving in the U.S., includes an appendix that lists key studies on philanthropy and how to obtain them. For more information, see the website of Giving USA's publisher, the American Association of Fund Raising Counsel.

The 24th International Fundraising Congress was held in October 2004 in Amsterdam, and Simone Joyaux was among the speakers at this prestigious worldwide gathering of fundraising professionals. For information on the Congress, see the website of the Resource Alliance.

Third Sector New England's NonProfit Center. Located in Lincoln Plaza in Boston's Leather District, the new NonProfit Center provides shared office space for progressive social-change organizations. Third Sector New England offers services and information to other nonprofits to strengthen programs and management systems and improve adaptability to meet changing societal needs.

Life Cycle of a Public Charity. IRS publication on the forms, guides, and publications used by charities to interact with the IRS. Available free online.