Tag Archives: fundraising

The delicate, peculiar task of promoting a charity’s gala

Leave a reply

A gala charity event is a sophisticated, upscale party hosted by a nonprofit. At a gala, guests dress up in formal clothes, enjoy what is supposed to be very good food, socialize and are entertained in some way. Gala guests pay a lot of money to attend and then are further solicited for donations or to bid on auction items, many of them high-end, with the money raised going to the nonprofit.

Most galas are considered successful if they break even financially – galas that raise large amounts of money after expenses are paid are quite rare. So why have galas if they don’t bring in much money? Because most board members and other supporters may want to socialize with each other and celebrate – they’ve sat through many meetings, they’ve shouldered a great deal of leadership responsibility, they’ve discussed and debated all year long, and now they want to have an enjoyable time. It’s a time to renew, reflect, and reward themselves for work well done. And it can also be an important social event in a community: this may be a chance for aspiring and current politicians to network and an opportunity for business owners to show they are interested in community affairs.

Gala events have been a mainstay of nonprofits for many generations. But galas have also always faced criticism from people who see them as inappropriate, especially for nonprofits focused on issues regarding poverty and inequity. And such criticism seems to be growing among younger people. As one article put it:

Why juxtapose calls to feed the hungry, house the homeless and cure cancer with champagne toasts and caviar hors d’oeuvres? As researchers who study charities, we understand why opulent bashes that raise money for good causes seem puzzling. These inherently contradictory events intended to help people in need double as vehicles for the rich and famous to show off their largesse.

Those feelings among at least some community members can make marketing a gala difficult – something I have been facing as I promote the annual gala for a small nonprofit focused on affordable housing and housing equity. I want to make sure I reach people beyond the board who might attend, but I also don’t want to do anything that reminds this nonprofit’s clients or thrift store patrons that we’re holding an “opulent bash” they probably can’t afford to attend.

Market a gala the wrong way and you could end up with not just a poorly attended event that costs money instead of earning it, but also a public relations problem.

The gala will happen, the board members and others attending will have a fun time and, hopefully, feel re-energized about their volunteering with the organization. We might even manage to introduce some new people to the organization. And we certainly hope to at least break even financially.

While galas may eventually be abandoned, for now, they still have an important role at many organizations, including the one I’m supporting. That’s undeniable.

That said, here are two comments about galas worth considering.

A gala is not major gift fundraising, nor does it really have anything to do with philanthropy… in rare cases, it provides enough net revenue to justify having one. A gala is almost 100% transactional in nature. In other words, it’s not about connecting a donor’s specific passions and interests with the need you’re addressing. To be honest, it’s creating an avenue for you to invite donors and their friends to, for one night, feel good about what you do.
That’s not Philanthropy.
Can it be useful for cultivating major donors? Yes, in some cases. Can it inspire some folks to become donors? Yes, in some cases. Is it possible to make more net revenue by doing a gala than by cultivating major donors? No.
From veritus group.com.

Use your galas as a chance to continue showcasing your work, but be mindful that they may not be the centerpiece of your fundraising strategy forever… Don’t let the changing landscape around events catch your organization off guard. Galas may not be going anywhere in the next few years, but they’re likely to lose importance as millennials take on a greater share of our donor bases. Now is the time to rethink your plan and get ready for those changing dynamics.
From Team Kat and Mouse.

Also see this article, Nonprofits turn to tech to court younger more diverse donors.

Are you also facing difficulties in promoting a gala? Do you face challenges in marketing at a nonprofit because of how certain activities could be, or are, negatively perceived?

And speaking of fundraising:

If you have benefited from this blog, my other blogs, or other parts of my web site and would like to support the time that went into researching information, developing material, preparing articles, updating pages, etc. (I receive no funding for this work), here is how you can help. 

two exceptional resources re: donor cultivation

Leave a reply

There are two sites that I think are exceptional in talking about donor cultivation and building meaningful, ethical relationships with donors that lead to long-term support. These two resources can help move your program’s mindset away from “Where is that magical list of people/corporations/foundations that might donate to my organization” – which, by the way, does not exist – and, instead, move to creating much more effective, ongoing strategies for attracting support and new supporters. Taking time to read these free blogs once a week is as good as attending any conference or workshop regarding fundraising for nonprofits, non-governmental organizations (NGOs), charities, schools, community projects, etc.

One site is made up of excellent communications / outreach resources from Philanthropy Without Borders regarding donor site visits, empathy and ethics in fundraising and how to make the “big ask” during a site visit. Two of my favorite articles:

Another terrific resource: blogs by blogs by Mary Cahalane (Hands-On Fundraising). Mary has been a very successful fundraiser and believes strongly on cultivating relationships with donors, not just asking for money. She talks a lot about making emotional connections with donors and other supporters and about ethics in managing fundraising staff.

  • Mary also offers this gem from her Ultimate Guide on Donor Experience: We need to avoid focusing on the quick transactions and the shiny objects that are cropping up and begging for our attention. Without proper stewardship of both our donors and the data that represents them, we will never be able to perform our responsibilities and deliver on the promise of our mission.

Also see:F

Funding for Technology

Leave a reply

I just updated a web page I have on my own web site that’s meant to help nonprofits, charities, NGOs, schools and other mission-based organizations and programs to fundraise for technology needs – for hardware (like tablets, smart phones, laptops, etc.), software, a system to subscribe to, etc. The advice is focused on what information you need to have read to share with donors, how to frame your story about the need for this technology in human terms, and how to identify potential supporters.

I originally developed the page, and continue to update it, because I get emails from people who want to know where to find “the” list of foundations or corporate giving programs that fund software or hardware at nonprofits. And there really isn’t such a list – foundations and corporate giving programs are looking to fund program activities/causes, not equipment, specifically. Grants go to particular kinds of programs – those to help children, the environment, the arts, women experiencing domestic violence, a community in need of better cohesion, etc. But if you can show how technology is a program cost, how it helps you better serve people or your cause, it has a much better potential to attract funding. In other words: show how this is #tech4good. 

I say on the page:

Technology can help an animal shelter better track their animal in-take process and get animals ready for adoption more quickly. Technology can help make a professional theater better track ticket buyers who might be good prospects for donations. Technology can help a program supporting homeless teens to better identify trends and needs. Make your pitch for funding based on what technology will allow you to do regarding your organization’s clients – not so much about what the technology is. Again, a corporation doesn’t want to fund the purchase of 10 tablets for your organization – but a corporation would love to fund a resource that helps, say, homeless families, and if you can show exactly how the purchase of those 10 tablets will allow that, then funders will be much more attracted to such.

Have a look and share your thoughts in the comments below.

If you have benefited from this blog or other parts of my web site and would like to support the time that went into developing material, researching information, preparing articles, updating pages, etc., here is how you can help.

Also see:

Free guide updated: Basic Fundraising for Small NGOs/Civil Society in the Developing World

2 Replies

I’ve updated Basic Fundraising for Small NGOs/Civil Society in the Developing World for the first time in four years. I swore I wouldn’t anymore, and even said so on my web site… it’s quite the beast of a project, given that it’s entirely unfunded work. And I’ve been updating it since 2004.

But the continued pleas on sites like Quora from small NGOs in Asia and Africa, including very specific questions about crowdsourcing, a topic not covered in the 2015 version of the document, prompted me to spend oh-so-many hours updating it.

The PDF book is now 41 pages long and is available to download, for free, from my web site. It includes chapters on:

  • Fundraising: Some Things You Should NEVER Do
  • Networking & Establishing Credibility
  • Guidelines for Integrity, Transparency & Accountability
  • Using Social Media to Build Credibility
  • Absolute Essential Preparations To Solicit Donations
  • Finding Donors & Making Contact
  • Proposal Writing
  • Ethical Principles in Fundraising
  • Crowdfunding & Online Donations
  • Beware of Fundraising Scams
  • Financial Sustainability Action Planning
  • Individuals Raising Money in Another Country for Your NGO

The work of small community-based organizations (CBOs)/civil society organizations (CSOs)/non- governmental organizations (NGOs) in developing countries, collectively, is vital to millions of people. There is no group or institution doing more important work than CBOs / CSOs & NGOs. They represent local people and local decision-making. They often are the only group representing minority voices and the interests of those most-marginalized in a community. I call them mission- based organizations: they are organizations that exist, primarily, to fulfill a mission. They have a mission-statement that is supposed to guide all of their activities – in contrast to a business, which exists to make profits.

Financial support for their vital work, however, is hard to come by, and staff at these organizations, whether paid or unpaid (volunteer), have, usually, never had training in how to raise funds, what different funding streams can look like (individual donors, foundation grants, corporate grants, fees-for-service, government contracts-for- service, etc.), or how to maintain an accounting of funds.

I can’t solve this challenge with a book, but I hope I can give these NGOs the most basic information they need to secure funding. I hope it also helps consultants who are trying to help these small NGOs in developing countries.

Will I update it again? Not any time soon, barring the correction of some egregious mistakes, and maybe not at all. I need money too, folks. I need to devote my energy to projects that pay me. Please read more about my consulting services and let me know if you might like to work together!

vvbooklittleA resource that isn’t free but is very much worth your investment – at least I think so – is The LAST Virtual Volunteering Guidebook. The book, which I co-wrote with Susan Ellis, extensive, detailed suggestions and specifics about using the Internet to support and involve volunteers: virtual volunteering. It includes task and role development, suggestions on support and supervision of online volunteers, guidelines for evaluating virtual volunteering activities, suggestions for risk management, online safety, ensuring client and volunteer confidentiality and setting boundaries for relationships in virtual volunteering, and much more. The LAST Virtual Volunteering Guidebook is available both as a traditional printed book and as a digital book.

Also see:

Signs that a nonprofit idea is doomed – a blog inspired by the words of Anthony Bourdain

1 Reply

In honor of Anthony Bourdain, whose loss I still mourn, I read Kitchen Confidential: Adventures in the Culinary Underbelly for the first time. It’s a fantastic read – I highly recommend it. There’s a short section where he lists all of the wrong reasons to start a restaurant and a list of signs that a restaurant is in trouble, followed by a long narrative of his personal experiences at such failing restaurants. It got me thinking about what I’ve always considered the obvious signs of a nonprofit that’s in trouble and the wrong reasons to start a nonprofit, based on my what I’ve seen and experienced.

So I’ve spent several days thinking about it and making a list. Here it is:

The vanity project. This can be everything from I’ve always wanted to run a nonprofit, so I’m going to start one to my little precious snowflake got turned down from volunteering with a group he wanted to help so we’ve started a nonprofit in his name. These projects are all about the founder – the web site and any media articles are about the person who started the organization, how wonderful they are, or cute, or admirable – not about the clients served, the difference actually made. Many nonprofits are started by a dynamic someone with a particular vision, and I’m not at all saying that’s bad – it’s been my honor to work for some amazing visionaries. In fact, such a champion is often essential to a nonprofit getting off the ground. But when a nonprofit is mostly about the person who started it, you can bet that nonprofit isn’t going to be around long.

We have passion, not a business plan! A group of people feel passionately about trees. Or fish. Or homeless dogs. Or live theater. That’s terrific. That passionate group of people is essential for a nonprofit to be launched successfully and attract donors. But what’s also essential is an old-fashioned, text-to-paper business plan. What actual activities do you want to do in your first year and how much do you estimate that’s going to cost? How are you going to staff those activities? How are you going to ensure the safety of participants? How are you going to evaluate whether you’ve done what you said you would do and ensured you haven’t actually made things worse? What kind of facilities do you need to make all this happen? And you have to have at least a general plan for your first three years where you try to answer these questions as well.

We have a great idea that’s NEVER been done before! Yes, it has. In fact, there is a probably project like the one you are proposing already in your city or county, or online. You are so in love with your idea that you just cannot believe no one has thought about it before. So you announce it, launch it, and then are shocked when asked, “How is your project different from such-and-such?” Sure, you might get a lot of initial press over your “brand new” idea, from reporters who also didn’t do their homework and don’t know this initiative already exists somewhere. But those other established initiatives have an advantage over you: they were here before you, they learned from a litany of mistakes and misdirections you don’t know about, and they know how to avoid those now. They will be here when your idea isn’t so hot and new anymore and you go back to grad school. Here’s a better pitch: We have a great idea for something this community needs, and here is our extensive proof that it’s needed and how it’s different from other projects, along with why we can do this!

Our board of directors doesn’t give money, just ideas! Your board is fiscally responsible for this organization. The executive director reports to the board, who evaluates his or her performance. The board should know how to do that. Boards that don’t know how to do that are shocked when the executive director resigns and, whoops, the bank account is empty! The board should have a set amount of money they need to raise or give every year to the organization in order to keep their seat on that board. Also, how can your nonprofit ask for money unless your board members are showing leadership in donating themselves? If you just want their ideas, put them on an advisory board. If your board of directors isn’t providing a good percentage of your operational funds, either out of their own pockets or via their network of associates, your nonprofit isn’t going to last long.

Our first step: a high-profile fundraising event! So many nonprofits start with trying to find a celebrity to endorse their idea or trying to organize a big concert or even an entire music festival to launch their initiative. The organizers think that all you have to do is get your heart-wrenching letter or energetic pitch in front of some big movie star or music celebrity and, poof, that person is going to be calling you to say, “I have to be a part of this! How can I help?!” It doesn’t work that way. The landscape is littered with failed fundraising concerts – and even lawsuits that resulted from such. One of the parts of Loretta Lynn’s autobiography that doesn’t make it into the film based on that book is one of her early attempts at organizing a fundraising concert for a cause that she cared about – it was a disaster because organizers – people with a lot of great intentions – didn’t have a business plan or a budget. Money was lost, hearts were broken, reputations harmed. See also: NetAid.

Our main message is: give us money! I am not going to follow you on Twitter or Facebook or anywhere else if all your nonprofit is going to do is hit me up for a donation. Show me photos of your volunteers in action, of your happy box office staff taking reservations for your next show, of actors acting in your current show, of someone happily adopting a dog from your shelter, of your staff getting ready for your next farmer’s market, of your executive director talking to the Rotary Club or, if its appropriate, of your clients. Tell me success stories, tell me stories of the challenges your clients face, tell me something funny… don’t just tell me, or beg me, to donate!

We have an angel! It’s not just Broadway producers that dream of a wealthy person that falls in love with an idea and is willing to put up major bucks to fund it – a lot of people that start nonprofits dream of it as well. And like most Broadway producers that want to rely on such, they get their heart broken. But sometimes it DOES work out, and a nonprofit gets the attention of that wealthy someone who gives half, or even the bulk, of the money needed for the first year of operations. Or maybe its a foundation. Hurrah for you! But here’s a spoiler alert: that gift will disappear some day. Maybe not next year. Maybe not the year after that. But it will happen: the angel will get other interests, or die. A nonprofit or NGO that is not constantly cultivating a diversity of funding streams – other foundations, lots of individual donors, fees for service, contracts for service, etc. – is, sooner or later, going away.

GIve us money or volunteer with us or we’ll have to close! Then maybe you should close. Because if this is what it’s come to, it means that, even if you get the money you need to stay open this month, you will be making the same desperate plea next month.

That’s my list. What do you think are the signs of a nonprofit or non-governmental organization (NGO) doomed from the start? Share in the comments.

Also see:

14 simple things to do to your web site to attract more donors

Leave a reply

Quit looking for the magic app or crowdfunding platform that will attract online donations for your organization. Attracting online donations is NOT a software challenge: it’s an information challenge.

Here are 15 EASY things your nonprofit, non-governmental organization, charity or other mission-based organization can do right now via your web site that will make your organization more attractive to online donors, who may be current volunteers, new volunteers, family of board members, someone across town or across the country:

  1. Make sure your organization’s full name appears as text on your home page and your “about us” page (not just in the graphic of your logo). This will make your organization’s information easy to find online. Many times potential donors will look for you online based on your organization’s name – you want to make it easy for them to find.
  2. Make sure the location of your organization is on you home page and your “about us” page. You don’t have to give the street address if, for some reason, you don’t want to make your physical address easy to find (such as in the case of a domestic violence shelter or home for foster children) but you do need to say the city, the state or province and the country where your organization is based. Many times I have looked for a particular nonprofit in a particular place and I cannot tell on the web site if the nonprofit is the one I am looking for because it never says what region it’s in – and there are so many nonprofits and NGOs with similar names.
  3. You need to have as much information on your web site about what your organization has accomplished as you do about it needing funds. And don’t just talk about activities: talk about RESULTS from those activities. People want to fund organizations that make a difference, not organizations begging for money, especially organizations that have dire messages about soon closing their doors.
  4. Note what your organization’s costs are. If I make a donation, what is that donation paying for? If most of your funds go to staff salaries, that’s okay: talk about the expertise of your staff, the hours they devote to working directly with those you serve, what they do in their work, etc.
  5. Make sure your web site is free of misspellings and grammar mistakes. If your web site isn’t a good representation of your organization’s work, why would I donate?
  6. Make sure your web site has no outdated information. If I click on “upcoming events” on your home page, and the first item is about an “upcoming” event that actually happened nine months ago, I’m not going to be inclined to donate, because if you cannot maintain an up-to-date web site, perhaps you struggle delivering your programs or managing money as well?
  7. Make sure your web site is mobile ready – it should work on a smart phone, not just a lap top.
  8. Do not say on your web site that you involve volunteers to “save money” or list a monetary value for volunteer hours, because as a donor, my reaction could be, “Why should I make a donation? They should just get volunteers to do the work for free.”
  9. Make sure your web site has everything it needs to attract new volunteers. Volunteers often become donors.
  10. Have a page that describes the history of your organization, who founded it, where it is located, why it was founded, etc. This establishes credibility for your organization.
  11. List the board of directors. This further establishes credibility for your organization – it shows the people willing to be fiscally-responsible for this organization.
  12. Get a group of family members or friends of staff to bring their laptops or smart phones to your organization. Ask them to find your web site online, without using the URL – using only the name of the organization, or something about your mission and your location, like “Help animals in Henderson, Kentucky.” See how long it takes them to find your organization’s web site using various methods and find out how they search for it. Note any problems they have in finding the site and address this accordingly.
  13. With this same focus group, ask what the site says that would make them want to donate. Listen to what they say and make improvements based on that.
  14. Offer a way to donate online. Even if just 10% of all of your donors choose to donate online, that’s money you would not have gotten otherwise, and the number of people that switch from donations by postal mail to online donations rises every year. There should be a way for people to donate using a credit card and Paypal.

And here is a non-web site specific way to increase donations to your organization: Put a notice on every fundraising event or fundraising activity that says that a person doesn’t have to participate in the event or fundraising activity in order to donate to the organization. “You don’t have to attend our black and white ball to donate to our organization! You can make a donation anytime via our website…”

By the way: much of this is the criteria I use when reviewing a site for an organization I think I might donate to – and many times, I have NOT given to an organization because it lacked the aforementioned info.

Also see:

Mission-Based Groups Need Use the Web to Show Accountability

Crowdfunding for Nonprofits, NGOs, Schools, Etc.: How To Do It Successfully

Web Site Construction & Content Suggestions for Nonprofits, NGOs and small government offices

Design Standards and Tips for Nonprofits, NGOs and small government offices

Required Volunteer Information on Your Web Site

Marketing Your Nonprofit, NGO or small government office Web Site

Don’t Just Ask for Money!

Nonprofits & NGOs: you MUST give people a way to donate online

Basic Fund-Raising for Small NGOs in the Developing World

the first steps for a nonprofit dream

Leave a reply

Some years ago, I worked with a very specific community – I prefer not to say which one nor where it was – that wanted its own cultural center. The community members envisioned a place where they and their families could celebrate their unique culture, host activities that could help address the needs of community members (job training, skills development, counseling, etc.), host events that could educate people about their culture’s history and challenges, offer low-cost childcare for pre-K children, offer after-school activities for teen members of their community, offer activities for elders in their community, offer legal clinics, and on and on.

The challenge I faced in trying to help this community reach their goal is that, in talking about the community center, they wanted to focus only on what the building would look like. They wanted to talk about the kinds of rooms it would have, how it would look on the outside, the murals that would be drawn inside, etc. They even spent time talking about what the logo would look like. And, indeed, those conversations were important, but what was so much more important in starting to talk about the center was their answering these questions:

  • What documented data do we have that shows who makes up our community, in terms of their ages, their backgrounds, their most critical needs and their desires regarding the programs offered via a cultural center? What data do we still need to gather and how might we gather that information?
  • What programs might we launch at first, and which might we want to have later? What data do we have that shows we are prioritizing our initial programming correctly?
  • How do we envision the staffing for our initial programs – by volunteers? If so, what tasks might these volunteers do? Could the tasks be divided into different roles: leadership roles, one-time group activities, short-term individual roles, online volunteering, university classwork, etc.? And what might the costs be to involve such volunteers (recruitment, screening, support, etc.)? Or will we staff these initial programs by paid employees or consultants? If so, what might these roles look and what would the costs be?
  • What will the decision-making and leadership of the center look like? How will the board of directors be chosen? How long will each member serve? How will their fiscal responsibilities and other oversight responsibilities be defined? Will there also be an advisory board?
  • What could we do in terms of programming without our own physical space? Could we leverage church fellowship halls, library meeting rooms, other cultural centers, arts spaces and other existing facilities to offer our own programming until we get a physical space of our own?
  • What would success look like in the first year of our operations? How would we collect data that proves our success?
  • How much would all of the above cost for the first two-five years?
  • What would we need to have in place to get fiscal sponsorship or become an independent nonprofit, and how would we get those things in place? What would the timeline look like?
  • When would we be ready to start accepting financial donations for our efforts and what avenues could we accept those donations (how would we accept and track checks, online donations, even cash donations)?

Altogether, the answers to these questions create both a business plan and all of the information a group needs for a funding proposal. All of these activities create a cultural center without anything having to wait for a building to be built or a rented and, at the same time, make funding an actual building all the more attractive.

Sadly, the cultural center, as a building, didn’t happen, and efforts to offer these programs in other spaces have come and gone over the years. I think community members still dream of a magical mega donor descending into the area and offering them millions of dollars to make this happen.

I think about this situation frequently as I am asked by so many people, “How do I start the nonprofit of my dreams?” The steps are all neatly listed in my blog, but the reality is that it’s messy in execution. None of these steps are easy, but I regularly see new nonprofits flourish after diligently completing each.

If you have an idea for a new organization, a new program or a new project, I recommend you have a look at this UNESCO project planning tool. It’s developed for youth and the projects they want to undertake, but it’s something that a lot of adults could use as well. This can be a good tool to use in a group exercise with the core leadership of your effort to establish a new program or organization.

Also helpful is this free NGO Capacity Assessment Supporting Tool. It can be used to identify an NGO’s strengths and weaknesses and help to establish a unified, coherent vision of what an NGO can be. The tool provides a step-by-step way to map where an organization is and can help those working with the NGO, including consultants, board members, employees, volunteers, clients, and others, to decide which functional areas need to be strengthened and how to go about to strengthen them. Share the results of your using this tool in your funding proposals – even on your web site. The tool was compiled by Europe Foundation (EPF) in the country of Georgia, and is based on various resources, including USAID – an NGO Capacity Assessment Supporting Tool from USAID (2000), the NGO Sustainability Index 2004-2008, the Civil Society Index (2009) from CIVICUS, and Peace Corps/Slovakia NGO Characteristics Assessment for Recommended Development (NGO CARD) 1996-1997.

Also see:

17 year old successfully fundraises, learns lifetime lesson

Leave a reply

A colleague’s question reminded me of when I got my first grant. It was a government grant. I was 17 years old and in high school – it was the late 1980s. My best friend and I formed a theater group with friends to produce a children’s play for the community. We bought the rights to the play, cast the show, rehearsed and looked into booking the high school auditorium for an evening. Then we presented a scene one night to the arts council in my hometown in Kentucky – the council acted on behalf of the city to make grants – so we could rent costumes and pay other fees.

We got the money! I was stunned! We were “just kids”! Was this government agency REALLY going to give us money, even just a few hundred dollars? Later, I learned that the council had been blown away by how organized our group of teens were – not only asking for money, but knowing exactly how much was needed and proving we were capable of pulling of the production. They were particularly impressed because, before we went into the meeting room, another arts nonprofit, one run by adults, had walked in and said, “We need money.” No documentation, no formal proposal, no budget, no list of how the money would be used – just a demand for support.

I have never forgotten that early lesson in making a proposal for support. We had no experience doing anything like this, but my co-founder – who went on to make The Blair Witch Project – thought carefully about how to sell our idea, to make it look worth funding. I thought it was audacious and doomed to failure – and I was wrong. In fact, our production was so successful that, the next summer, my co-founder and I produced another play for community children, one we co-wrote, this time in the central park.

Since then, I have never had any hesitation in writing a funding proposal or talking to any foundation, corporation or government agency about why a nonprofit I’m working with deserves support.

The name of our company, by the way, was the Henderson Audubon Repertory Company – HARC. Our first production was The Prince Who Wouldn’t Talk. There were three wizard characters in the show – I played all of them.

Also see:

If nonprofits were brutally honest with funders

Leave a reply

How will the community be transformed as a result of this grant? 

Hahahaha, that’s a good one! This grant is for $5,000! And people say funders don’t have a sense of humor! 5K will allow us to pay for six weeks of rent, which means we can stay open, and who knows what awesome stuff we’ll accomplish during those six weeks, am I right? Please add three zeroes if you really want to see transformation.

This is from a hilarious article from Nonprofit: Adorable Festive by Vu Le, Executive Director of Rainier Valley Corps, and is something every nonprofit, NGO and government program will have a hearty laugh about – it’s something every foundation and corporate philanthropy program manager should read as well.

Read it, have a laugh – and, seriously, think about how you could say some of these things diplomatically in a funding application. Because it needs to be said.

Also see:

Nonprofits & NGOs: you MUST give people a way to donate online

4 Replies

fundhuntingThe following quote is from a blog in 2013 by Sue Gardner (hi, Sue!!) of the Wikimedia Foundation, which administers Wikipedia. The quote is about how the many-small-donors-instead-of-a-few-big-ones works so well for Wikimedia, a nonprofit:

We don’t give board seats in exchange for cash… people who donated lots of money have no more influence than people who donate small amounts — and, importantly, no more influence than Wikipedia editors… We at the WMF get to focus on our core work of supporting and developing Wikipedia, and when donors talk with us we want to hear what they say, because they are Wikipedia readers. (That matters. I remember in the early days spending time with major donor prospects who didn’t actually use Wikipedia, and their opinions were, unsurprisingly, not very helpful.)

It’s not only that they have many, many donors of small amounts, rather than a few donors that give huge amounts of money, it’s also that their donors are users of their initiatives, primarily Wikipedia – in fact, many are volunteers for these initiatives.

This isn’t a new model. I worked in professional, nonprofit theater for many years, and this was their model as well; each theater had hundreds, even thousands, of donors that gave, for the most part, small amounts, and the vast majority of those donors were also performance ticket buyers. I learned that a healthy nonprofit theater has at least half of its expenses covered by such individual donors.

Of course, the many-small-donors models wouldn’t work for every nonprofit. But if your nonprofit had at least 100 clients, volunteers and/or event attendees in a year, you MUST have a way for those people to donate via your web site. There is absolutely no excuse for NOT having this way of giving, and no excuse for NOT encouraging such donations.

How about this: at least once a year, I have been ready to donate to a particular nonprofit, I’ve gone to the web site to do so, and, ta da: no way to donate online; the only way to donate is by sending a check or money order. And so, I end up not donating at all.

This happened to me last month regarding a nonprofit right here in Forest Grove, Oregon, where I live. I was going to say something to the nonprofit, but instead, decided to turn my thoughts into a blog for small nonprofits in particular. I hope they notice. I don’t have lots of money: when I donate, I’m giving up the price of a movie ticket and popcorn. Most nonprofits would claim that they would not say no to any amount of cash someone wanted to donate, including that small amount. Yet, that’s just what they do when they don’t have a way for people to donate online.

According to Blackbaud’s 2015 Charitable Giving Report, 93% of funds given to nonprofit organizations came from traditional means in 2015 – major gifts, annual funds, fundraising events, checks, snail mail and by phone. Only 7.1% of donations to nonprofits came in online. HOWEVER, online giving has been steadily growing over the last few years, up 9.2% from 2014 to 2015, and 14% of online giving in 2015 originated on a mobile device. I’ve no doubt the numbers are just going to keep going up. A good summary of the Blackbaud report is here. In addition, a study of younger supporters (age 20-35) found that 56% preferred donating online via an organization’s website.

The excuse I hear by most nonprofits for not having a way for someone to donate online?

We don’t want to have to lose some of the donation to processing fees. 

Let me be clear: you are losing ALL of the online donation by not having a way for people to donate this way to your organization. Those people that go to your web site and can’t find a way to donate online don’t say, “Oh, I’ll write a check then.” Nope – they just don’t give at all.

As of the time of this blog’s writing, Paypal charges 2.2% + $0.30 per transaction on any donation ($0 to $100,000) to a registered nonprofit with 501(c)(3) status. Wouldn’t you rather get most of a donation than none of it?

There’s no service that doesn’t have some kind of processing fee for donations to nonprofits, at least not in the USA. Some services, like Paypal or Google Wallet, just charge a transaction on every donation, but don’t provide any features, like a customized web page. Services like First Giving charge more, but also provide more services, like tracking and managing donor information and easily integrating into whatever donor database you are already using. Which should you use? That depends on the size of your nonprofit’s budget, how many donors you are expecting to donate online and how much information you need from those donors. Have a look at what other nonprofits in your community are doing in terms of allowing for online donations, and don’t hesitate to pick up the phone and give them a call and ask for advice (we need nonprofits collaborating together MORE!). Also, talk to your financial institution, the bank or credit union where you deposit your organization’s funds – they may have options as well.

And if you are looking for a magical third party crowdfunding site that will bring in lots of donations for your organization merely by your inputting all of your information and asking for money, forget it – that’s not how successful online fundraising works for 99% of nonprofits. Rare is the donor who goes to a third party web site with no idea of who he or she is going to give money to.  Most nonprofits that raise money through online means are raising that money through their own web sites, and raise that money from people in their communities that are familiar with their work and want to support them, from people that have attended the organization’s events, or from people that have seen an ad on TV or radio.

More: 

Excellent advice from someone else on how to encourage donations online to your organization

More advice for what should be on your organization’s web site

Also see Survival Strategies for Nonprofits