October 2014

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A Halloween “trick” or “treat” for our donors is up to you

Haunted HouseWith tomorrow being Halloween, it’s likely a few parents will be helping their children dress up in costume, be it Star Wars, a superhero, or a princess, and taking them around the neighbourhood knocking on doors for the annual tradition of “trick or treat”.

In a way, every day is Halloween for charities. Where potential donors walk up to our doors, ring the bell, and when we answer the door instead of us handing out a “treat”, they hand us a donation. But it’s not as easy as sitting and waiting for that knock on the door. We have to work to get the donors to walk up, ring our bell and give their philanthropic support. Are we doing enough to get them to knock on our door or are they just walking by and going to the next place?

One year I was at home in my unit with a huge bowl of lollies waiting for the bell to ring. About 3 children came just as the sun was setting, but that was it. Not one more knock the entire night. When I investigated by going outside, I realised my neighbour was not home and had all their lights turned off, including up the walkway to both our units. It looked like no one was home at either place. A dark house is not too inviting to children on Halloween. And I was left with masses of leftover candy. It was very disappointing.

The following year, I did all I could to get as many children as I could to walk up and knock on the door. I made sure all the lights were on, I included coloured light bulbs, I played spooky music out the window and used a flashing strand of lights in an upper window. And sure enough, the number of families and children who stopped at my house went way up. But I also had great chocolates and candy to give away because I wanted the people who stopped at my house to tell other people “go there, it looks spooky and he’s giving away the best stuff.”

What can we do to make our charities look inviting to potential donors and not look like dark houses? We have great “goodies” to give them – stories of our great work and success!

First, what if a potential donor does physically walk through the door of our organisation? What do they see? Can they tell it’s our non-profit? Do we have appropriate signage? Is our logo visible? Is it neat and clean?

Are we ready to give them a tour of our organisation? Also, do we have printed material to give to them?

And are we ready to accept a donation from them if they want to give us a “treat”? Do you have a donation form ready to hand them?

Second, what if a potential donor walks through a ‘virtual’ door, by calling or clicking on our website? Does the person answering the phone know where to direct a potential donor? Does our organisation have a mission or purpose statement that is easy for all staff to repeat to potential donors? Or know examples of those success stories?

On our website, is it easy to make a donation? Is there only one ‘door’ for them? Imagine if children were “trick or treating” and they had to keep knocking on door after door to get their candy? They would leave and go to the next house with only the one door.

Third, we can make sure we have a coordinated effort with our direct mail and our electronic direct mail. Do we have all the elements we need to get that donor to walk up and ring the bell? I had inviting walkway lights, spooking house lighting, and eerie music together as a package. Not just one or the other.

Do we have the right content and message; layout and design; reply device with all the information we need to collect?

When we think about it, it’s scary how unprepared some of us may be for potential donors or how many donors just walk by our organisation because it’s too ‘dark’ and not inviting. Or we don’t have all the elements working together to make them want to stop and donate. Or the ‘treats’ are not good, so they tell others “skip that place”.

This year, let’s have “treats” for our potential donors and they have “treats” for us, too.

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Affinity credit cards – a nice way to support charity and rare in Australia

I visited McGrath FouMcGrath CCndation last week and saw an application for an affinity credit card – a McGrath Foundation branded card – in the lobby of the Foundation. I was very surprised to see this application.

Perhaps I should not have been so surprised to see the McGrath Foundation card – McGrath, like countless other breast cancer organisations, are the best at branding merchandise and, particularly, within the “Pink” cause. Likewise, McGrath Foundation is creative in their fundraising, has a strong brand and loyal supporters, and has great potential as an organisation. But, I was surprised because it is not a common occurrence to see any affinity cards in Australia.

Non-profit Affinity credit cards are very big in the US and the UK. One will typically receive such offers in the letterbox, as well as find the card offers across university campuses, hospitals, cultural institutions, and charities alike. Often the cards give a portion of the annual fee back to charity, as well as a percentage of the cards use and other perks.

McGrath CC BackThe McGrath Foundation credit card offers those who sign up an opportunity for a low interest rate, coupled with the fact the card issuer donates half the annual fee each year one holds the card to McGrath Foundation. The even more attractive value proposition is the pride you will have by carrying something branded McGrath Foundation in your wallet and each time you use the card you are promoting your affinity to the McGrath Foundation!

Does your non-profit organisation have an affinity credit card? Does it make sense for your organisation to investigate whether to develop such a relationship with a bank in order to offer one? What terms would your organisation expect should you negotiate a deal with a bank for an affinity card? What might we learn from our non-profit counterparts in the US and UK who have already embarked on such ventures? Better yet, perhaps we can use the McGrath Foundation as an Australian model?

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Professional development – an investment in your team and your organisation

professional-developmentSome non-profit organisations I work with invest heavily in their staff’s professional development, while others only invest in senior level staff (if they invest at all). Turnover is extremely high among charitable organisations and for a variety of reasons – compensation, stress levels, lack of appreciation and, yes, lack of growth opportunities. Lack of growth opportunities includes a lack of investment on the part of the organisation in professional development courses, conferences, webinars and similar activity. Simply put, staff become frustrated with the lack of investment and move on to more promising opportunities as a result.

How much does your organisation invest in the professional development of each staff member (not just senior level staff) on average across the financial year? Consider these areas:

  • Membership in organisations, such as Fundraising Institute Australia;
  • Conference attendance, such as the Fundraising Institute Australia 2015 Conference, Fundraising & Philanthropy Australasia Fundraising Forum, and others;
  • Fundraising education courses, such as Fundraising Essentials, the Certificate in Fundraising, Executive Fundraising Leadership, and others offered in the market;
  • Training on workplace tools, such as training on your organisation supporter relationship management (SRM) software; and
  • The ability for staff to participate in special interest groups, local committees and other sector volunteer involvement activities, which will expose them to other organisations and their counterparts in those organisations. This area has no direct cost with the exception of, perhaps, some staff time for committee work.

Managers who only invest in their own professional development, or who limit it to those who surround them at the management table, are doing a gross disservice to their organisation.

If you do invest in staff to attend a professional development activity, how does their experience get translated back to the workplace and how, if at all, do they communicate about the course with their team members? Some managers expect their staff to present at the next all staff meeting and to share knowledge gained. This does two things – passes knowledge gained onto others and also promotes the fact you, as a leader, have invested in your team members. In the end, it shows to your team, and your counterparts in the sector, you are a good manager and a solid leader.

I spoke with the CEO of a hospital foundation a few months back about the dollar figure his organisation invests per staff person across a financial year. He told me $1,000 per staff person per year is invested. He reminded me not every staff person uses the allocation and some use more than others (if they attend the FIA Conference, for example, and one or two FIA breakfast sessions).

I would venture to guess this particular organisation reaps the benefits of the investment made in staff professional development through areas such as staff retention, staff recruiting and, above all, fundraising revenue. This particular organisation has grown significantly over the last five years due to the leadership of the organisation and, it’s safe to assume, the investment made in colleagues who work at the foundation.

Many people do not realise the FIA awards scholarships to members to attend courses. Likewise, not all professional development courses cost money to attend or to participate.

The next time a staff person resigns or you have difficulty recruiting, take a look at what you have allocated for professional development and what you, yourself, have done in terms of professional development over the last year. Perhaps the lack of investment in professional development is causing you impact beyond some simple budget savings?

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Six degrees of separation – making it difficult for your supporters to opt out

opt-outLike you, I receive heaps of Email daily. I get a lot of Email. I find myself repeatedly deleting Emails each week from the same companies and non-profit organisations without reading the Emails. I needed to get the volume of unwanted, or unread, Email under control.

I thought, if I am deleting these emails each day, why don’t I simply opt out of the lists so I do not have to deal with the volume in my inbox?

I spent quite a bit of time trying to opt out of the Emails and found for some organisations, it is actually quite difficult, and time-consuming, to get to the end point. Many ask me reasons I want to opt out and others try to convince me to better state my communication preferences while trying to maintain me in the end.

I cannot blame these companies because they should be trying to keep me!

IMG_0807Take MSPCA Angell Memorial Hospital for example. Angell Memorial is a place where I used to take my pets in Boston and my animals were well taken care by this wonderful organisation. However, I do not live in Boston any longer. If I did, I likely would maintain contact with Angell. I went to opt out of receiving multiple emails from Angell and they first tried to get me to change my mind by offering me a multitude of options. Thereafter I was allowed to finally opt out and I was sent to a final screen where they suggested a way to get back on their list should my needs change in the future.

Take Travelzoo, a travel website in the US. I probably used Travelzoo once or twice in my life. Yet, this site too, sends me a multitude of emails throughout a given month.. I went to opt out of Travelzoo and faced a similar exercise as Angell Memorial.

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I have often times told non-profit organisations they should work hard to turn a negative into a positive and this is exactly what these two organisations, and countless others, have done as I have been opting out of (or trying to!) their electronic communications over the last week.

When I work with organisations, I suggest they work hard when someone rings their office to opt out of direct mail to turn those calls around by offering the caller a chance to receive just one appeal a year. I further suggest these organisations offer supporters who wish to opt out the chance to select which appeal to receive, as well as the channel. It is exactly what these organisations above did with me online?

What do you feel is best practice in regard to opt out procedures? What process does your organisation put supporters through? Are your online processes similar to offline processes?

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What’s in a Name? – A Response!

SalI would probably never wear a tuxedo to a BBQ or pool party. Nor would I wear a singlet and board shorts to a gala dinner. I am hopeful most of us know the appropriate attire for the different events and occasions we attend. In a similar fashion, we use different language and words in different settings and with different people. Do we speak the same in front of close friends and family versus someone we have never met? The setting and sometimes the communication method dictate our words. We might use different language in a written card or letter than we would in an email. And a text message or tweet would probably use even different words.

When we communicate with our prospects and donors do we change the way we salute and address them depending on the occasion for communicating with them?

If we’re sending them an invite to our awards dinner, does their name appear the same as on their donation thank you? Is it the same as our invite to our summer sausage sizzle?

The name you use for your prospects and donors is important for relationship building. Using the correct Addressee and Salutation could affect whether you get a response from them. For example, I have a friend named Patricia. She only goes by Patricia. She is never called Pat or Patty. If any organisation approaches her using either of the latter, she will not respond.

Your organisation should record the preferred, standard way a constituent wishes to be addressed and saluted. However, your organisation should also consider recording additional addressees and salutations for each of the ways in which you may communicate with them.

The following should be recorded for each person on your database:

  • Formal – Used for invitations or communication from your Board or head of organisation. It would likely include the person’s title
  • Informal – Used for more informal event invitations and other communications. It would likely not include any titles and be only a first and surname

But beyond these obvious ones, this is a great place to record other ways you will use your donor and prospect names. Here are a few:

  • Known by director/president/CEO – Used for correspondence sent with the signature of your organisation’s leader who might personally know some of the people who are receiving the communication
  • Family/Household – Used to address additional members of the person’s family such as their partner/spouse and their children. It can include the names of each person or simply be something like “The <Surname> Family”. This option is great to invite the entire family to school functions or for a holiday card.
  • Receipt Name – Used to indicate a different name for a tax receipt than you might use for regular communications
  • Recognition Name – Used for when you post or publish a list of donors or other type of recognition. For example, in your annual report an individual donor might want their partner/spouse also listed with them even though the donation came only from him/her.

Once you have recorded these Addressees and Salutations, you will be able to communicate with a majority of your constituents in way that builds a connection and relationship with them. Again, think of my friend, Patricia, and your own communications with people.

So please salute me as Mr. Bernstein, Daniel or Dan depending on the occasion and method of communication. However, one final tip, please don’t mix addressees and salutations on the same piece or I might show up to your event in a tuxedo with board shorts and thongs.

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Is your charity seeking feedback from supporters?

customerfeedbackSome charities never seek feedback from supporters. Other charities seek feedback from supporters once a year and that medium, typically supporter surveys, is used to update supporter contact details, gather information about the supporter, and determine information which will assist you to “speak” to the donor in a more direct fashion. Charities ask donors about their current address, mobile, and other contact details; charities ask supporters what interests they have philanthropically; and, they also ask the supporters whether they have included the charity in their estate planning.

Most charities do not ask the supporters what they can do to improve services, improve the way communications occur, or offer a supporter a chance to applaud a charity, vent about a situation, or offer constructive feedback.

This is an area where I think we can learn a lot from our corporate counterparts. Corporations typically ask for feedback to do one of two things:

  • To sincerely listen to the customer and to change the way a good or service is offered.
  • To offer a direct mechanism to give such feedback, so the consumer does not channel anger or frustration in a more public forum.

Why is it charities do not spend more time listening to their consumer (the supporter), gathering feedback, and acting on the feedback?

HiltonHilton Hotels, for example, leave a small card at the front desk of some hotels with a QR Code directing the customer to TripAdvisor where feedback might be left.

Harvey Norman 1Harvey Norman gives a similar sized card at cash registers with contact details to submit compliment or complaint. Many phone centres ask you to hold the line for a quick survey of your experience.

Yet, it is rare for a charity to seek feedback using any sort of creative examples. Additionally, the suppliers in the non-profit sector do not appear to seek feedback from those charities they call their customers.

What does all this mean? Do we believe we as a sector have it down to a science and we do not need to ask our supporters what they think? Do suppliers in the sector believe they, too, are serving customers well and there is no room for improvement?

In the end, charities and suppliers are dependant on supporters and non-profits to send comments rather than submit their views in response to a survey, a comment card, or some sort of response mechanism. Charities and their suppliers are leaving it up to a small percentage of people to serve as the voice for everyone. This means the comments received by charities and suppliers are typically from those upset rather than a balance of those providing constructive feedback and of those who believe the organisation is doing a great job. The end result may be business or fundraising decisions based on this very limited information.

Does your charity gain feedback from supporters? If so, how? Do your suppliers ask for your input? How do you provide feedback to suppliers?

Challenge gifts are a solid driver for charity revenue

Earlier this week I wrote about the opportunities to get your supporter’s gifts matched by their employers. Matching gifts are new to Australia because I believe your organisation is leaving money on the table. The fact is, when I worked in healthcare fundraising I launched similar programmes which raised >$100K in the first year and grew from there.

Another area more US charities are starting to promote is challenge gifts. Imagine this scenario – Joe Bloggs and his partner decide to give $200,000 to Charity XYZ if Charity XYZ raise $200,000 from the Christmas Appeal with the focus on:

  • Acquisition – Joe and his partner will match every dollar a new donor gives to Charity XYZ,
  • Upgrade – Joe and his partner will match every dollar a donor gives above the amount of their previous gift, and
  • Renewal – Joe and his partner will match every dollar a donor who is lapsed (18+ months) gives.

Snip20141009_1The challenge gift has become quite popular. Promotion of challenge gifts is all over my email and has been over the last week. In an email on 30 Sept, Room to Read gave me until midnight that day to get my gift doubled. On the same day, The Jimmy Fund sent an email to tell me about a generous donor who has offered to triple my gift if I gave to their appeal that today. And, there are countless others I received over the last week asking me to give and offering me the chance to get my gift doubled or tripled all because another supporter offered a lump sum of money to the charity and challenged the charity.

Snip20141009_2A couple of notes –

1) All of the challenge emails I received were from US charities. You and I know I am on hundreds of charity lists in Australia due to the independent mystery shopping study I have conducted over the last four+ years. It is likely I would have received an email from the charities if charities in Australia are creating challenge opportunities.

2) All of the challenge emails request I respond “today” or by “midnight” to take advantage of the opportunity. The sense of immediacy, as you know, in electronic direct mail works.

The question I ask is why aren’t Australian charities using the challenge gift angle to raise more funds and to attract new, current, or lapsed supporters to give again? Does it go in the “too hard” bucket? It’s not that difficult. Simply do the following:

  • Create a plan for a challenge prior to asking any donor(s) for the lump sum.
  • Find one or more generous donors to give a lump sum of money with some challenges tied to the donation.
    • Feel like your charity does not have one donor to give the lump sum? Ask a group of donors – those on the board, those who have given a nice sized gift each year, or those who you are trying to get over the line and you need something interesting to attract them. Find people who are already engaged in the organisation and who want to make sure the money they invest will make a difference.

Challenge gifts have been around for years in the US and elsewhere. There is nothing new about challenge gifts except few, if any, Australian charities are implementing the concept. Become one of the first. Take action today.

 

Double or triple the size of your donor’s gift – at their employer’s expense

MatchImagine Joe Bloggs gives $50 to his favourite charity. Joe works for ABC Company. Joe overhears some colleagues talking about a new program where the human resources department has created an initiative to match all employee contributions to charitable organisations 2 for 1. All Joe has to do it get a form from the intranet, fill it out, and submit it to the charity. Joe takes pride in the fact that he works for ABC Company and ABC Company believes in the charitable involvement of its employees. This has proven to be an all around win – a win for the company, a win for the employees, and an even bigger win for the charity.

Imagine XYZ Charity has done some work on its database and has spent a considerable amount of time tracking where their donors work. The charity has also done some research to learn whether those employers have existing matching gift programs. XYZ Charity proactively reaches out to their donors to seek matching gifts when contributions are made.

You don’t have to imagine. Both scenarios are plausible. Yet, both are not happening at the rate they should. Employee matching gifts have not yet taken off in Asia-Pacific in the way they have in the US or the UK. But, you have a chance to make that happen.

Develop a matching gift program to launch in the New Year. Better yet, get one going before your Christmas appeal by:

  • Track employers for all your donors as a relationship in your organisation’s CRM
    • Gain this insight direct from the donor via surveys, conversations and other channels
  • Research the employers to determine whether these employers match giving of their staff
    • Learn this information from company websites and from other sources
    • Multi national companies, in particular, tend to match gifts
  • Track the matching gift ratio and other details in your CRM
  • Add matching gift language to your organisation’s website
    • Check out US charities to see examples
  • Add language to your receipts and acknowledgement letters to ask donors whether their employees will match their gift
  • Proactively ask about matching gifts in your appeal letters

The above include easy steps to take immediate action.

Together, we can drive change to increase the number of employers matching gifts in Asia Pacific and, at the same time, increase the number of gifts matched!

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Passwords on Post-it notes…oh no!

PasswordI have been to multiple customer sites recently working in various non-profit organisations. Time and time again, I have seen Post-it notes affixed to desktops or laptops with user names and passwords. I saw a list of user names and passwords on a spreadsheet while seated at one person’s desk. Another person sat in a meeting with a series of passwords affixed to the top of her laptop facing four of us on the opposite side of the table.

We all have difficulty remembering passwords, especially if we have been on a long leave and away from our work computer for a while. This coupled with the fact that so many administrators and/or software require us to change our passwords on a periodic basis means we need to remember those “silly” passwords. Follow these best practices when creating passwords and create something that will be difficult for a stranger to guess but easy enough for you to remember (even after a three week holiday!):

  • Use strong passwords, which includes a combination of letters, numbers and a character, such as Tahiti?15. Some systems will not allow for a character such as a question mark or an asterisk
  • Do not use your name or your user ID repeated as your password
  • Never use the word Password as your password. You’d be surprised at how many people use this as an old standby!
  • Change the password set up for you by system administrators
  • Use the first letter of each word of a phrase you will remember. Msbi17Dec translates to My sister’s birthday is 17 December

Once you come up with a convention you will remember, keep it to yourself. Use your wall space for photos of your favourite fundraising consultant!