Spotlight Archives - Nonprofit Hub https://nonprofithub.org/category/spotlight/ Nonprofit Management, Strategy, Tools & Resources Tue, 09 Jan 2024 21:19:14 +0000 en-US hourly 1 https://wordpress.org/?v=6.6.1 https://nonprofithub.org/wp-content/uploads/2021/07/cropped-favicon-1-32x32.png Spotlight Archives - Nonprofit Hub https://nonprofithub.org/category/spotlight/ 32 32 Tips on Google Ad Grants for Nonprofits https://nonprofithub.org/ad-grants-for-nonprofits/ Thu, 20 Oct 2022 18:04:07 +0000 https://nonprofithub.org/?p=353783 The post Tips on Google Ad Grants for Nonprofits appeared first on Nonprofit Hub.

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Information and Tips on the Google Ad Grant for Nonprofits

The Google Ad Grant for nonprofits have provided free advertising for nonprofit organizations since 2003. This fantastic Google program grants each qualifying nonprofit up to $10,000 per month in search ads shown on Google.com. 

While this is an excellent resource for nonprofits, many organizations have not obtained the Google Ad Grant for their nonprofits yet. Some haven’t succeeded with their Google ads thus far. 

Let’s discuss some of the most frequently asked questions about the Google Ad Grant. We will also dive into how to see results from Google Ads. We want every nonprofit to get the most out of this free program!

Who is eligible for the Google Ad Grant?

To qualify for the grant, nonprofit organizations must meet the following requirements:

  • Your nonprofit is in an eligible country. Although the Google Ad Grant is expanding, it is not yet available in all countries. For a list of eligible countries and their requirements, click here
  • You have 501(c)(3) as a nonprofit. This status is required for all nonprofits to qualify in the United States. In other countries, nonprofits must have similar classifications to qualify (see the linked list above for details). 
  • Your organization is not a hospital, school, college, or governmental institution. Philanthropic arms of educational institutions may still qualify.
  • You must have an SSL certificate installed on your website if applying for the grant for the first time. This means that a lock icon appears in the navigation bar in Google Chrome. If you see “not secure” next to your website’s URL in Chrome, SSL is not installed. Sometimes, there is a configuration issue.
  • You have a high-quality website that is hosted on your own domain. For example, use “ournonprofit.org,” not “ournonprofit.weebly.com.” To understand Google’s specific requirements for your website, click here.

If you meet these criteria, you are eligible for the Google Ad Grant! For additional information and eligibility tips, check out our video and article, “Google Ad Grant Eligibility Explained.”

What are the steps to apply for the Google Ad Grant? 

1. First, become a member of Google for Nonprofits through TechSoup. 

  • If you have not previously registered your organization with TechSoup.org, sign up for an account here. TechSoup provides discounts and other services that you may find worthwhile. Most importantly, TechSoup provides a Validation Token that Google uses to verify your eligibility.
  • Use your TechSoup Validation Token to enroll with Google for Nonprofits.

2. Second, submit your nonprofit’s website to Google for review.

  • Then click “Google Ad Grants”>”Get Started” under “Request a Google for Nonprofits Account.”
  • Fill out the assessment by clicking the eligibility form link. Click “Activate” to submit your organization’s website for review.

Pro Tip: During the application process, you will be asked whether you wish to sign up for a “Smart Campaigns” or a “Classic” Google Ads account. Apply for the Classic version to access the full suite of tools and options available.

6 Tips for utilizing the Google Ad Grant to the fullest

While the Google Ad Grant gives nonprofits $10,000 in monthly ad credits, many organizations reach their goals without using the total amount. This is excellent news! However, these ad credits do not roll over from month to month. Therefore, you’ll want to develop a solid strategy to get the most out of this program. 

1. List your goals in order of priority. 

You have many goals, and figuring out where to start might be challenging. As a first step, list what you would like to accomplish with Google Ads. Do you want to grow awareness of your impact through your blog? Promoting your blog through an ad campaign would be a great start. Maybe your organization desperately needs volunteers to reach several important milestones for those you are helping. In this case, you can focus on an ad campaign that resonates with the values of your target volunteer audience.  

2. Select your top five goals for the first campaigns.

Start with 3-5 campaigns. You’ll get the best results by starting with your top 3-5 goals for these campaigns. While you can run more, managing more than this amount at once may be difficult. Since each campaign will require your attention to be effective, you should choose your campaigns based on what is the highest priority to advertise. 

3. Be intentional with your ad groups.

Be specific with your ad words for each campaign, keeping your goals in mind. It’s most effective to have a group of closely related keywords and ads that target various related phrases. See the image below from WordStream for a simple example of keyword phrases.

Image credit: WordStream

4. Prepare your website with your target audience in mind

Since your ad campaigns can potentially increase your site visitors considerably, you’ll want to increase the chances that visitors act while there. What does preparing your website for your target audience mean?

First, ensure that your website has a clean, modern, and user-friendly design. Use easy-to-read fonts and high-contrast color pallets. Keep visitor accessibility in mind as well. Also, test your website on mobile devices to ensure the layout is mobile-friendly. 

In addition to general design tips, we recommend this list of components to be included on your nonprofit website:

  • Have at least ten promotable pages with at least 300 words each. 
  • Include a blog with searchable posts that are 700-1000 words long. 
  • Install Google Tag Manager to count important button clicks. 
  • Keep call-to-action forms on your website. If using a PDF form, ensure that this is its own landing page on your site. 
  • Include “thank you” landing pages for all call-to-action forms.
  • Keep your website security updated and address any security flags.

Here, we have included eight recommended nonprofit website must-haves.

As we have noted, it is essential to have quality content on your website! This is important for Google Ad Grant compliance and increasing ad campaign success. When new visitors come to your website, you will want them to understand your mission and impact quickly. To learn more about how your content helps you to reach your marketing goals, check out our article, “3 Reasons to Use Web Content for Marketing Your Nonprofit.” 

5. Build and maintain your social media presence

Although this is talked about frequently, we can’t stress enough the importance of a nonprofit’s social media presence. Here is why: 

While the Google Ad Grant is a game-changer for nonprofit marketing, not every potential supporter will find you through Google. Consider the way that you browse online. How many times have you noticed an organization or business for the first time on social media?

Think of social media as a valuable asset in your marketing toolbox to utilize your Google Ad Grant. For example, you may receive website visitors from your Google Ad Campaigns that want to check out your social media presence from the icons on your website. If you don’t have your social media linked on your website or your social page on that platform is bare, your potential supporters may choose a nonprofit that shares more of its impact.  

Remember, your social media posts can tell stories in real time that new and existing supporters otherwise wouldn’t see. You can share your impact in regular updates, recognize a sponsor, announce an upcoming fundraiser, and provide frequent educational content about your mission. The possibilities are endless. Use niche-specific hashtags, keywords, and trending audio for the best results to reach a larger audience. 

Here are some quick tips for nonprofit social media growth: 

  • Post regularly at the times when your audience is most active.
  • Use multimedia, including video, text, and infographics. 
  • Engage with other accounts. This is one way the algorithm decides whom to show your content. Don’t “post and ghost.”
  • Write meaningful captions and be intentional with hashtags. Experts currently recommend that we go back to adding hashtags in the caption, not the comments. 
  • Make your social media icons easy to find on your site’s homepage.
6. Track your Google Ad performance

Naturally, you can’t improve what you can’t see. Like many tools, the Google Ad Grant’s success hinges on your nonprofit’s continuous evaluation and adjustment.

Through valuable data, Google is great about letting you know which campaigns are working and which ones aren’t. This prevents you from expending energy, resources, and ad-spend on the wrong campaigns. 

By taking the time to understand and adjust your campaigns as needed, you’ll streamline the process of seeing results with Google Ads. 

Maintaining compliance

Since you won’t want to lose the great benefits of the Google Ad Grant, you’ll need to ensure that you stay in compliance. Because the grant renews monthly, we recommend setting a recurring to-do for your compliance checklist. 

This is a list from Google of common violations that can cause suspension of the Google Ad Grant: 

  • Abusing the ad network or misrepresenting your organization
  • Losing your nonprofit status
  • Not keeping your CTR (click-through rate) at 5% or higher
  • Failing to meet Google for Nonprofits eligibility criteria
  • Needing re-verification (this is primarily for organizations who signed up with Google for Nonprofits before 2016)
  • Repeatedly violating Google’s Terms & Policies

How to know when you need help

In some cases, researching and seeking Google support can solve problems and keep your organization on the right track with the Google Ad Grant. However, we recognize that every nonprofit faces the challenge of not having enough help in some regard. You’re busy changing the world, so your plate might be full!

You might consider seeking help for the following reasons:

  • You’ve encountered an obstacle while trying to acquire the grant.
  • Your account has been suspended, and you need help with reactivation
  • Tracking progress is challenging because some data doesn’t make sense. 
  • You’re struggling to understand how you can improve your campaigns.
  • You aren’t seeing the results you had hoped for with the Google Ad Grant. 
  • Managing the Grant is entirely too time-consuming for your team. 
  • You find the Google Ad Grant application process or management overwhelming. 

We fully understand that while the Google Ad Grant is a fantastic tool, it can be challenging to figure everything out. 

Getting help with your Google Ad Grant

For general questions about the grant or your account, you can visit Google’s Ad Grants Help page. This page includes frequently asked questions and solutions to common problems. Also, they have provided links at the bottom of the page to “ask the help community” or to contact Google for assistance.

If you need additional help acquiring or managing the Google Ad Grant, you may be interested in partnering with Google Certified Professionals, like our team at Nonprofit Megaphone. 

Professional grant management saves you time, ensures the proper steps are followed, and helps you see faster results. At Nonprofit Megaphone, we were once shocked to learn that 75% of eligible nonprofits had either not heard of or were not currently using the Google Grant. Therefore, we set out to change that.

We now have a 100% success rate in acquiring the grant and currently manage more than 48 million ad dollars. If you are considering that your organization could benefit from our experience, feel free to connect with us for a consultation.  

Conclusion

The Google Ad Grant is one of the most under-utilized resources nonprofits have for growing their impact and awareness around their causes. Many organizations aren’t aware that they qualify or haven’t gotten the most out of the Google Ad Grant. We hope that this article has answered essential questions you may have had about applying for the grant, seeing success after acquiring it, and getting help if you need it. For more Google Ad Grant tips and nonprofit marketing strategies, check out our blog and Instagram

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Ten Tips to Write Winning Grant Proposals https://nonprofithub.org/10-grant-proposal-tips/ Tue, 18 Oct 2022 14:09:49 +0000 https://nonprofithub.org/?p=353745 The post Ten Tips to Write Winning Grant Proposals appeared first on Nonprofit Hub.

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Ten Grant Proposal Tips

As the competition for grants continues to grow, nonprofit organizations should always ask themselves how they can make their applications stand out. This article discusses ten ways to enhance your proposal writing to help you develop the best applications possible. Some grant proposal tips are about preparing or planning your applications, while others concentrate on framing up or writing your applications. Taken together, they should help you polish your proposals to perfection! 

Tip 1: Be Prepared

It is a great idea to have several projects sketched out so that you are ready to refine and enhance your proposals and not start from ground zero. The minimum information you want to have “shovel ready” includes data and statistics on the addressed need. You should know what you will do (your approach) and what changes you will make in the lives of those you serve. It would help if you also thought about your community (outcomes) and the budget. 

Write this information in a program planning framework, a logic model, or a simple worksheet or word document. 

Having an “arsenal” of potential projects will give you a competitive advantage in several ways. First, it will help you identify funders and funding opportunities that match your project. Before funding searches, know who the project serves, your solution, and what you will change. The resources you need so your search is as comprehensive as possible and uncovers a wide range of funders. 

Second, it helps avoid “mission creep.” This is the process of matching your projects to the funding source instead of the funding source for your project. You want to ensure you find solid matches between the funding opportunity and your project. Don’t change your approach to meet funding opportunities that do not align with your mission and vision. 

Third, most funders do not give you much time to develop your applications. So, this preparation will help you focus on improving, enhancing, aligning, reviewing, and editing your proposals to have the most significant impact. 

Tip 2: Involve Those You Serve in the Design of Your Programs

Involving your target population in the design of your programs is a great way to ensure that the work you are proposing to do (your approach) will meet the needs of those you serve. Nonprofit organizations address a wide variety of community challenges—and the root causes of these problems are multifaceted. Working with your target population helps you create impactful strategies that address the underlying issues leading to adverse outcomes. 

For example, let’s say your organization provides one-on-one tutoring to help adults learn how to read. You know the statistics and demographics of your target population—the percentage of adults not able to read past a fourth-grade level. When you examine the “why” behind the statistics (i.e., Why are 25% of adults reading below a fourth-grade class?), you may find several different reasons. It could be because there are no literacy programs for adults. Or perhaps there are sufficient programs but no transportation to the schedule. Or maybe there is so much stigma that adults needing services don’t come forward. 

Knowing the “why” behind the need leads directly to the approach you will develop. And engaging the target population in this discussion will get you the best answer. For example, if stigma is the reason, potential/past participants can share ways to reach out to the target population that are sensitive to their needs and reduce the stigma they face. Without their input, you may propose a strategy that does something but not the thing the target population needs to help them overcome obstacles.

Tip 3: Partners—You Can’t Be the Lone Ranger

Going hand-in-hand with the root cause analysis is the ability to identify partners to collaboratively address issues, using the skills and resources from several organizations/entities. Again, most of the problems nonprofits deal with have several root causes, and you will find other agencies to partner with to address the issue holistically. Using the previous example, there may be an existing program that transports individuals to job training or to access educational opportunities. Thus, you could partner with this organization to provide transportation for your adult literacy programs. Funders like to see scarce resources shared among programs instead of duplication of services. 

Tip 4: Write With the Reviewer in Mind

It is essential to understand that grant reviewers—the people who score and rank your proposals—are people too! They may be community volunteers who donate their time or staff at the agency or foundation. It is essential to write your application with the reviewer in mind and make their job of understanding and scoring your application as easy as possible.

First, assume that the reviewer knows nothing about your community or organization, the needs you address, what you do, or how you do it. Almost exclusively, the reviewer only uses the documents submitted in your application to evaluate your proposal. Therefore, if you want them to know something, you must write it out and explain it clearly. 

Second, reduce or eliminate jargon in your writing. It is easy to fall into the habit of using terminology and acronyms that make sense in your world. But most grant reviewers do not live in your world. Explain unique terms and concepts and spell out all acronyms.

Tip 5: Follow the Directions

Funders usually have application forms to complete and a list of instructions you are to follow. These instructions typically include questions to answer and attachments in your submission. These are called Application Guidelines, Grant Instructions, Requests for Proposals (RFPs), Funding Opportunity Announcements (FOAs), or various names. Regardless of the term used to describe the application instructions, follow them to the letter. Answer questions in the order they are listed, use the funder’s headings and terminology, and complete the forms they provide (if applicable). 

Tip 6: Highlight Your Strengths, Not Your Needs

How do you create an application that shows you are worthy of funding? A funder (or any donor) wants to hear about what you change, your impact on the community, and your solutions to community challenges, not what your organization needs. Having a laundry list of requirements (“I need a staff person,” “We need a building,” or “My organization needs equipment.”) is not a compelling argument to a funder who is looking to support community change efforts financially. All nonprofits can provide a list of what they need. 

You want to be solution-based, demonstrating your ability to effect change—not a needy nonprofit organization that will go out of business if it doesn’t receive funding. If you write from a deficit-based perceptive, make the shift to position yourself as a strong and viable organization that is competitive for a funder’s investment.

Tip 7: Don’t Underestimate the Time It Takes to Craft a Strong Proposal

Writing successful proposals takes time and energy. Creating a proposal writing schedule can help ensure you account for the time it will take to prepare, review, and edit a strong proposal. After identifying a grant you want to apply for, list all the documents that need to be submitted. Make note of tasks to complete, the people responsible for each job, and the due dates.

One way to submit the most robust application possible is to get input and edits from others. You want to schedule a time to get these reviews of your drafts. To ensure your application is straightforward, have someone completely unrelated to your organization read it and provide feedback.

Tip 8: Demonstrate That You Have Designed the Most Cost-Effective Solution Possible

In your budget narrative, communicate to the funder how you have leveraged other funds to support your project, used cost-saving measures, and maximized all available resources to show you are making the best out of the funder’s investment. Again, don’t assume that they know you have developed a cost-effective approach—tell them how you have done it. 

Tip 9: Increase Your Skills by Reading Successful Grant Proposals

Reading successful grant proposals helps you hone your proposal writing skills. You can dissect them to see what was clear, how information was laid out and presented, and other elements you can mimic in your proposals. 

Read through successful proposals to find ways to tell your organization’s story, study what makes proposals strong, and discover your proposal writing voice. It doesn’t matter if the topics in the sample applications are relevant to your organization. You’re just looking for the key elements that make the applications strong so that you can apply them to your writing.

Tip 10: Be Persistent

Proposal writing is a skill that can be developed, but it does take time and effort. For rejected applications, reach out to the funder. You can ask for feedback about how your application could have been more vigorous. Use your investment of time and energy put into the first application to enhance a second (or third!) effort.

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Federal Grant Checklist to Help You Win Funds https://nonprofithub.org/federal-grant-checklist-to-help-you-win-funds/ Thu, 29 Sep 2022 16:28:00 +0000 https://nonprofithub.org/?p=353331 The post Federal Grant Checklist to Help You Win Funds appeared first on Nonprofit Hub.

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Federal Grant Checklist to Help You Prepare

As you conduct grant research to uncover new opportunities for your organization, you may come across grants from federal government agencies. And as grant funding through federal economic recovery programs distributes, we’ll see even more competitive opportunities arise at the federal, state, and local levels.

Federal grants can be game-changers for nonprofits. It gives them funding for programs and improvements while also boosting their track record and reputation. However, applying for a federal government grant is time and resource intensive. They are highly competitive to win and demanding to manage if received. 

This means you must be prepared to compete effectively for federal grants. So how can you set yourself up for success?

This federal grant checklist walks through our recommendations for preparing to compete for federal grants.

☑Registration

First, ensure that your nonprofit registers in the federal grant system. Competing for federal grants will require at least these three steps:

  1. Receive a DUNS (Data Universal Number System) number to identify your nonprofit in the federal system
  2. Register with the federal System for Award Management at SAM.gov. This platform manages and reports on grants once you receive them
  3. Register your nonprofit at Grants.gov, where you’ll find and apply for federal grants

Depending on the opportunity you are pursuing, you may need to register in additional federal systems to compete. For example, several agencies like the Substance Abuse and Mental Health Services Administration require registration in a system called eRA Commons.

Most importantly, handle this process early. Registration can be complicated and involves a waiting period. You must renew your registrations annually. Begin the registration process (or double-check your renewals) at least six weeks before a grant application deadline.

☑Time and Capacity

Federal grants can have a turnaround time of only a few weeks between the initial release and application deadline. This tight window of time means that you’ll need the capacity of your team to handle everything required of the application. 

The steps to apply for a federal grant can include compiling lists of community partners, securing letters of support, detailing a program model, and developing budgets. You may also need to prepare other unique attachments, handle logistical upload tasks, and more. As soon as you identify a grant opportunity, sit down to objectively assess what your team can accomplish with its current resources.

These steps are easily overwhelming. You just can’t stop progress on other fundraising activities and grant deadlines while you are focused on submitting a federal grant. It can be a wise and fruitful investment to partner with a grants consultant with experience at the federal level. They can advise you and manage the steps of compiling a high-quality application.

☑A Collection of Standard Application Materials

If you pursue a federal grant, having a ready-made set of standard application materials can save your team time and stress. Most federal grant applications require these documents: 

  • Reviewed and audited financial statements
  • Organizational and program-specific budgets
  • Bios and resumes for leaders and key program staff

If you don’t have these materials on hand but want to begin pursuing more grant opportunities, create them early before you enter the time crunch leading up to a deadline.

☑Data to Illustrate Your Impact

Data is an integral part of any winning grant proposal. It completes the story you tell about your vision and goals. It gives more authority to your claims by illustrating your track record of success, the impact you’ve had so far, and the problem you’re seeking to solve. Effective use of data can make your proposal stand out in a crowded field.

But to see these benefits, you’ll need the actual data. Determine whether your organization is ready to quantitatively demonstrate a strong track record by considering these questions:

  • Do you have a record of data collection, evaluation, and successful outcomes with other programs?
  • Does the program you’re proposing have a compelling need and data to back it up?
  • Do you have internal structures in place for data entry and analysis, like a properly-configured CRM or database?
  • Are you prepared to engage an external evaluator to support the analytics and evaluation that may be required for executing and managing the grant?

Building a data and tech infrastructure is a worthwhile investment for growing organizations. It will allow you to craft more compelling grant proposals over time and continually assess and improve your strategies.

☑Partners and Supporters

Federal grant applications often require letters of support, sometimes referred to as Memorandums of Understanding. They prove that you have a network of supporters in your community who can vouch for your work and who may be directly involved in helping to achieve the proposed plans and goals. These supporters and partners might include other organizations, local foundations, corporate sponsors, public officials, major donors, and constituent organizations or individuals. 

Securing signed letters can be a lengthy process, so start as early as possible. Discuss your potential documentation needs with your key partners ahead of time. You want them to be ready to help if you are putting together a proposal for a new program soon. For funding opportunities for existing programs, documenting your partners’ current and planned participation will also simplify the application process.

☑ Grant Management Capabilities

Let’s say you win a federal grant—congratulations, and great work! 

But there’s still plenty of work regarding grant management and reporting. Federal grants have stringent post-award requirements to prepare. For instance, once you use the funding, most federal grants will automatically require an official financial audit. Specifically, you’ll need to ensure that you have these capabilities and resources:

  • A team to handle program execution, financial management, and compliance
  • Staff who can make grant-related work a top priority for the duration of the program
  • Time and resources to create detailed financial reports and the tools to manage and track federal funds separately from the rest of your finances
  • The infrastructure and staff to manage data collection, analysis, and reporting
  • The ability to effectively learn and use the required federal grant management systems
  • The team capacity to actively manage your relationship with your federal grant management officer and/or program officer.

It sounds like a lot, but it comes with the territory of competing for game-changing federal funds. If you currently have any gaps that would complicate these types of tasks, taking the time to build your internal capacity and infrastructure beforehand is likely the smartest move. A focus on development and capacity-building, expanding your network of partners and major donors, and improving your systems can yield dividends once you’re ready to compete.

Federal Grant Checklist Summary

Writing a compelling grant proposal is always hard work that requires careful thought, attention, and preparation, and federal grant opportunities are especially so. The points in this checklist cover the most important steps, resources, and capabilities that will help you stand out in a crowded field (and avoid biting off more than you can chew).

Key takeaway: There are many steps and components to preparing a competitive federal grant application. A federal grants consultant can help improve your chances of funding—and bring you peace of mind! But now you can get prepared with this federal grant checklist.

Your best competitive advantage will be an active grants program backed up with best practices. This will give your team experience, allow them to hone their skills, and prepare when the time is right. If you’re new to grant seeking, working with experts can help you build a robust pipeline of opportunities and show you best practices in action.

 

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6 Easy Steps to Boost Donor Acquisition https://nonprofithub.org/6-easy-steps-to-boost-donor-acquisition/ Thu, 04 Aug 2022 21:01:58 +0000 https://nonprofithub.org/?p=351765 The post 6 Easy Steps to Boost Donor Acquisition appeared first on Nonprofit Hub.

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6 Easy Steps to Boost Donor Acquisition

 

If you have been in the fundraising arena for any amount of time, then you know that donor acquisition is the topic that keeps nonprofit professionals up at night. The fact is only 20% of first-time donors become recurring donors. This leads to database decay if you don’t have a constant stream of new donors to fill those gaps. But how are fundraisers supposed to keep bringing in new donors and keep their database fresh? How can you effectively put your mission in front of those people who are most likely to become a donor and, fingers crossed, donate again? And better yet, how do you and your organization keep your costs at a minimum while maximizing your donations?

There’s a certain comfort in doing things as they have always been. You can’t deny that. But, the problem is that the old ways simply aren’t working as well as they could be. While charitable giving has gone up since the pandemic’s beginning, organizations are not retaining these new donors. They are losing money because of it. According to the Fundraising Effectiveness Project, acquiring a new donor costs $1.25 just to raise $1. Meanwhile, the typical cost to raise the same amount from a current donor is just .20 cents! So it’s time to look at donor acquisition and donor retention through a new lens in the hope of more effective and efficient fundraising.

 

Donor Acquisition Outreach Methods

 

The nonprofit fundraiser always had go-to tools in their outreach toolbox. Those main tools are often advertising, events, phone solicitation, and word of mouth. While these are all considered effective outreach methods, they could all be doing just a bit more in terms of acquisition. Let’s take a look at each of these. Then, we can explore ways to aid your mission in achieving higher donor acquisition and donation levels, all while elevating donor retention. 

Let’s start with advertising. This is a highly sought-after way of getting your message out into the world. However, it can be ineffective and extremely costly. Most advertisements are delivered to the masses in hopes that maybe, just maybe, the message will resonate with someone. No matter what, everyone gets the same information in the same way. The problem with this method is that people are different. Not everyone belongs to your specific target audience. Putting your advertising in front of someone who doesn’t align with your mission wastes time and money. This is because they have a very low chance of converting to a donation.

Fundraising events are also a staple of the fundraising guru’s donor acquisition toolbox. Every large nonprofit has its big events that are considered essential to yearly fundraising. However, it is vital to take a closer look at the actual profitability of these events. The truth is they historically aren’t very profitable. The high costs of planning and executing these events can take a huge bite out of the funds raised. Although it’s nice to see that you raised $50,000 during an event for your nonprofit, it is also imperative to understand your event’s true ROI. No one wants to talk about the $25,000 used on the event space, food, valet, entertainment, and the time your staff spent planning and executing these events. Some might even respond, “But we are raising awareness for our mission!” However, there are other ways to raise awareness without using a big chunk of your fundraising budget. There are even ways to yield a greater ROI for those staple events you host yearly.

Different Methods

Phone solicitation is yet another outreach method often utilized by nonprofit professionals. And it makes sense. It’s a low-cost way of getting your message in the hands –  or ears – of potential donors. Does it work, though? When was the last time you answered a call from an unknown phone number? With the advent of phone scams and the ability to block unwanted calls, phone solicitation took a hit in the commercial and nonprofit sectors. The ROI just isn’t there unless you really get lucky. 

The last tool in our fundraising toolbox is word of mouth. This always seems like a tried and true method because we trust our friends and colleagues to steer us in the right direction regarding where we want to spend our money, whether a planned donation or a large purchase. However, it often takes significant time and effort to spread your message. Honestly, there are only so many people you can reach this way. It’s not necessarily a tactic to eliminate, but nonprofits cannot rely on word of mouth alone to make a difference in their fundraising efforts. 

It might be disheartening to hear that many tools in your fundraising toolbox aren’t quite what they used to be.

So how can you supercharge your outreach while decreasing the time and effort it takes to reach fundraising nirvana? Here are six easy steps to help you boost your donor acquisition.

 

Step 1: Define Your Goals

 

You should always begin with the end in mind. Set an actual goal and make it measurable. Much like the KPIs you might set for your staff, you should set KPIs for your fundraising goals. For example, you can set goals for donor retention, average donor growth, and rate of donation growth. Meeting your fundraising goals and working toward your nonprofit mission becomes much more attainable by beginning with the end in mind.

 

Step 2: Find Prospects Who Care

To meet your fundraising goals, your organization needs to find prospective donors that care about your mission. Often, development and fundraising teams dedicate their time to prospect research to accomplish this task. They look into information like demographics, wealth, and past nonprofit work to determine who could be interested in giving to their organization. The truth is, this is a time-consuming process. It is often far more costly than anyone wants to admit. This is where you might want to look into purchasing or renting donor prospect lists from list buying services that are privacy compliant and can deliver affinity-driven donor prospects. By doing this, you can hopefully find many more prospective donors who have an affinity for your cause. In turn, you can convert them into lifetime donors. 

 

Step 3: Get to Know Your Prospective Donors

 

Once you have created a list of people you know will be interested in giving to your cause, you should dive deeper into understanding what will speak to them. Whether you are planning an annual gala, a direct mail campaign, or another outreach method, this is key to sending the right message to the right person and ultimately winning over that prospect’s heart – and gift. 

We aren’t just talking about intent or demographic details either. None of that shows affinity or immediate action potential. You need to get down to the nitty-gritty of who these people are. You should define characteristics such as preferred contact method, interests, and giving potential. Knowing more about your prospects will put you in the driver’s seat and make your campaign much more successful.

 

Step 4: Plan Your Asks and Segment


All prospective donors are not alike. Some can give a single high-value gift, while others can give more frequently in smaller amounts. So it becomes imperative that you know the appropriate amount for each individual to achieve the best results.  

The best way to prepare for the big ASK is by segmenting your list of prospective donors. In doing so, you can define the unique message received by each prospect to ensure that it resonates and yields a greater return. Doing this ensures that you reach them how they are most likely to consume your message and act. It may be direct mail, a phone call, social media advertising, or another preferred method. 

 

Step 5: Perform Targeted Outreach

 

Once you have your ready-to-give donor prospects segmented, you need to consider how you will perform your outreach. The good thing is that there are far more options available now than there have been in the past. Gone are the days of “spray and pray” marketing tactics. More targeted advertising methods are available for nonprofit fundraisers to reach their donor prospects and surpass their fundraising goals. This can include direct mail, social media, and digital ad placement. With this kind of advertising, you can be intentional about the viewing audience and share your mission with those most likely to donate. Even better, you can choose where your audience sees these ads. Social media, banner ads on websites, and even advertising on streaming services, such as Netflix, are new options to update your donor acquisition toolbox. 

 

Step 6: Track Outcomes and Measure Success

 

Last but certainly not least, track the outcomes of each campaign so you can truly measure success. Remember those goals we talked about a few minutes ago? This is where you determine if you’ve reached them. Or maybe you found that you haven’t contacted them effectively, and it is time to improve your message. 

This can be as simple as a spreadsheet or as complex as hiring a service to get real-time conversion data from your campaign. Either way, measuring your campaign results and knowing the fruits of your labor are of utmost importance. You will begin to understand what worked and what didn’t in the campaign. From there, it will allow you to make conscious changes and improve outcomes over time. 

While these steps may take some time to implement, remember that each little move counts. Make one or two simple changes to your campaign strategy at a time, and before you know it, you will be attracting new mission supporters destined to last.

 

This spotlighted blog is courtesy of our friends, boodleAI.

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Audit Committee v. Finance Committee: Do you need both? https://nonprofithub.org/nonprofit-finance-and-audit-committees/ Fri, 29 Jul 2022 00:50:36 +0000 https://nonprofithub.org/?p=351548 The post Audit Committee v. Finance Committee: Do you need both? appeared first on Nonprofit Hub.

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The Difference Between a Nonprofit Audit Committee and a Finance Committee and Why Your Nonprofit Needs Both

For nonprofits, deciding on a board committee structure can be a challenge. Often, the decision is solely based on the number of board members and their talents and expertise. However, proper financial oversight is essential to a nonprofit’s success because it ensures that the organization complies with applicable laws, acts with integrity, and is transparent.

You are ahead of the game if you already have an Audit Committee. Many nonprofits rely on the Finance Committee if they have one, or the Executive Committee to also serve as an Audit Committee. An Audit Committee that operates separately from the Finance Committee provides checks and balances on financial decision-making. It helps to ensure that the organization’s fraud risk is minimized.

Read on to learn the specific roles of each committee and why having an Audit Committee and a Finance Committee is best practice for nonprofits.

Nonprofit Audit Committees

The Audit Committee serves as the Board’s liaison with the external auditor. The Audit Committee selects the auditor, meets with the external audit partner and team pre-engagement. A nonprofit audit committee is also the first body to review the preliminary audit report and meet with the external audit team after the engagement is complete. The Audit Committee brings audit concerns to the Executive Committee and recommends accepting and approving the final audit report to the Board of Directors.

Monitoring the annual financial audit is just one type of risk assessment that an Audit Committee may be concerned with. Other types of risk resulting from competition, revenue uncertainty, or data security, for example, should be reviewed by the Audit Committee and the risk mitigation strategies developed.

The Audit Committee provides the first level of review and approval of the organization’s Accounting Manual. This ensures that the organization and Finance Committee complies with the internal controls and policies laid out in the Manual. The Audit Committee provides oversight of the Finance Committee to ensure that they exercise proper stewardship of the organization’s accounting and finance function.

Audit Committees ensure that all tax forms, including the IRS 990, state and federal employment taxes, property taxes, and unrelated business income tax, are filed on time and are disseminated appropriately.

On an annual basis the Audit Committee should:

  • Engage the auditor and oversee the audit process
  • Review recommended edits to and approve the Accounting Manual
  • Meet with staff leadership to review organizational risk and mitigation strategies
  • Meet quarterly with the Treasurer to review the activities of the Finance Committee

Finance Committees

The first role of the Finance Committee is to regularly review the organization’s financial statements. Typically reviewed statements include the Statement of Financial Position, the Statement of Activities (compared to the same period for the previous year and the current year budget), and ideally, a Cash Flow Projection. The Treasurer should review monthly and quarterly financial statements and the Finance Committee.  The Treasurer should report any concerns regarding the organization’s financial health to the Executive Committee and Board of Directors.

The Finance Committee should also ensure that the organization follows the internal controls and policies outlined in the Accounting Manual. A review of the preliminary budget and presentation of the final budget to the Board should be performed by the Finance Committee in advance of the beginning of the next fiscal year. If the organization faces financial challenges, the Finance Committee should work closely with staff leadership to evaluate various scenarios and courses of action and present viable options to the Executive Committee and/or Board of Directors.

During each fiscal year, the Finance Committees should:

  • Regularly review financial statements
  • Review annual budget preparation
  • Ensure proper financial recordkeeping
  • Notify Board leadership of significant financial concerns
  • Meet quarterly with the Audit Committee

Understandably, not all nonprofit boards have enough board members to support both an Audit and Finance Committee. In that situation, it may make sense for your Executive Committee to assume the responsibilities of the Audit Committee. For those nonprofits that can support both, these committees will act in tandem to ensure the financial stewardship, compliance, and transparency that stakeholders and funders desire.

For more resources and free content for your organization, please visit us at: https://bit.ly/3zg0pX9

 

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How to Beat the Sunday Scaries https://nonprofithub.org/how-to-beat-the-sunday-scaries/ Thu, 21 Jul 2022 21:55:59 +0000 https://nonprofithub.org/?p=351433 The post How to Beat the Sunday Scaries appeared first on Nonprofit Hub.

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How to Beat the Sunday Scaries

Picture this: it’s Sunday and you are relaxing after a gratifying weekend. You had a fun-filled Friday night. Saturday was full of your favorite activities and hobbies. Maybe you finally prioritized running those errands that have been on your to-do list for way too long. But then, your phone dings. It’s an email from work, and suddenly, your mind is racing about the busy week ahead. You try to relax and push yourself to stay in the moment. You want to enjoy the rest of your weekend. But you can’t – the Sunday scaries hit.

What are Sunday scaries?

If you are unfamiliar with the term, the Sunday scaries refers to the looming feeling you get on a Sunday about the work week ahead of you. It hangs over you like a looming rain cloud. You can’t seem to stop thinking about your responsibilities. Feelings of anxiety and fear begin to take over. You are already worried about the unknowns that Monday morning may or may not bring.

Nonprofit Workers still get Sunday scaries

No matter what sector you are in, Sunday scaries still affect you – especially if you work for a nonprofit. Unique stressors come with many nonprofit positions. Some nonprofits serve individuals in traumatic, complex, or heart-wrenching situations. Employees might work in crisis centers, soup kitchens, or animal shelters. Therefore, individuals may be exposed to tense scenarios and distressful narratives. When you are in a position that provides assistance to individuals or groups in need, there is inherent pressure to perform well. Nonprofit workers may feel an anxiety around potentially letting others down due to stress surrounding the nonprofit’s mission to do good and help others. There can be a lot of heavy weight that comes with the job.

You might think, “If my work is rewarding and you love helping others, how can I prevent myself from feeling this way?” Well, let’s take a closer look.

5 Ways to Battle the Scaries

Instead of constantly fighting your work anxiety, we may find ways to reduce stress. Now, let’s walk through a few small ways to beat the Sunday scaries.

  1. Find the root of your anxiety. Think about what exactly is causing you to feel worried during the weekend. Did you not complete your work on Friday? Is there an issue with a coworker? Is there a conflict in your personal life? If  you identify the actual cause of your Sunday scaries, you can work to address those negative feelings.
  2. Prepare on Thursday and Friday. Try wrapping up your work weeks strong. While it may be unrealistic to finish all your to-dos week after week, be sure you complete the big tasks. By tying up those loose ends, you won’t be thinking about them come Sunday night.
  3. Set clear work boundaries. If your work emails continue into the weekend, try turning off notifications for the weekend. Change your Slack notifications to “snooze.” And, if possible, politely ask your coworkers to refrain from reaching out unless an urgent matter occurs. Setting clear boundaries will allow you to create a healthier work relationship.
  4. Fill your weekends with wholesome fun! What brings you peace? What can you do to relax and recharge? If you have a busy schedule, try penciling in one activity per weekend that you enjoy. Maybe it’s something as simple as cooking a healthy meal with your family or sitting in the park and reading a new book. Make sure to prioritize taking time for yourself so you can recharge during the weekend.
  5. Have a Monday morning routine that you enjoy. If you learn to make the most out of your Mondays, then the Sunday scaries may not be quite as daunting. This may look different for different people. Perhaps you avoid scheduling meetings for first thing in the morning, treat yourself to your favorite Starbucks drink, or wake up a little earlier to make breakfast and start your week on a positive, healthy note.

All in all, know that you are not alone in your feeling of work anxiety. Nonprofit workers are a community, and we have a special understanding what others within the sector experience. We all are faced with our own personal challenges inside and outside of work.

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How Nonprofits Can Get the Most Out of Contactless Fundraising Technology https://nonprofithub.org/how-nonprofits-can-get-the-most-out-of-contactless-fundraising-technology/ Thu, 30 Jun 2022 13:54:35 +0000 https://nonprofithub.org/?p=351022 The post How Nonprofits Can Get the Most Out of Contactless Fundraising Technology appeared first on Nonprofit Hub.

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How Nonprofits Can Get the Most Out of Contactless Fundraising Technology

Technology is undoubtedly one of the most exciting areas of growth for nonprofits and charities. Rather than simply shaking a plastic bucket, fundraisers have the tools at their disposal to engage donors and ensure the most returns on their initial investment. A fantastic example of these kinds of tools is contactless payment technology. While it’s taken a little while for the sector as a whole to catch up, more charities and nonprofits are realizing the potential of contactless technology. Here’s a practical guide on how to build a business case for contactless fundraising technology, and how to overcome challenges to make fundraising more engaging, effortless, and rewarding.

Beef up your case for contactless fundraising technology

Making big changes – especially tech-driven ones – is an exciting way to keep your charity’s operations moving and shaking. But it’s important to invest in the right tech at the right time. And, if you are interested in adding this new digital donation channel to your fundraising model, you need to make sure your organization’s decision-makers are as motivated and enthusiastic as you are. That means being able to solidly demonstrate how contactless payment technology will benefit your NPO. By understanding these benefits, you can build your case, engage your trustees, and future-proof your fundraising!

What makes contactless fundraising technology a no-brainer for NPOs?

Charities, like all organizations, are on a going on journey. However, there still may be some old-school stakeholders who are dragging their heels on organizational change. Since there often isn’t a lot of money to throw around, there can be an attitude of “if it ain’t broke don’t fix it.” That’s why it’s so important to make a compelling business case for investing in new technology. So, if you feel your non-profit is ready to embrace contactless fundraising technology, here are some points on how it can give you an edge.

Consumers love it!

Since contactless payments were introduced in 2007, more and more consumers have been getting on board with this incredibly convenient technology. In 2020, it was estimated that 51% of Americans are now using some form of contactless payment. More often than not people want to donate, but they simply don’t have the spare change. Now they can with just a tap of their card.

Cashless is king

Charities and NPOs traditionally rely on a flow of small cash donations, but cash usage has been plummeting worldwide. We seen this more often, especially in the wake of COVID-19. In the UK, for example, cash accounted for just 17% of all payments in 2020. With less cash in our pockets and purses, 70% of charities are reporting a drop in cash donations. Contactless payment technology is a natural way forward, replacing the need for pocket change.

Contactless is safe, convenient, and easy for collectors

Using a contactless payments system makes door-to-door and community fundraising simpler and safer. This is because there’s no need to carry or sort change, and no need to physically take large amounts of cash to the bank. All a person needs to do is tell you how much they want to donate and then tap their card or smartphone. It can take just 15 seconds or less to complete the entire transaction! Let’s face it, it’s nicer to tap a quick donation than sifting through the usual detritus the average person collects in their pockets!

Contactless is clean

These days, we’re all washing our hands and sanitizing like it’s no one’s business. And, if you haven’t realized it yet, cash is about as gross as your toilet bowl. Contactless payment systems are an easy way to keep bacteria and viruses at bay because the user doesn’t have any physical contact with the device and no one other than the user needs to handle the card. 85% of consumers feel that this is much healthier and more sanitary than handling cash and using other payment techniques. In addition, the World Health Organization also promoted it as a way to minimize the spread of COVID-19.

Secure, admin-free transactions

Contactless technology is very fast and secure – more so than traditional card payment methods. This is because there is a strong physical limitation on the machines that ensures they can only detect cards or virtual cards that are held close to the sensor. These terminals also use cutting-edge encryption to perform the transaction between the device and the bank. What this comes down to is that donations are processed quickly and safely while reflecting much faster on your records. This makes recording and tracking transactions much easier too. That way, you can keep abreast of donation trends and patterns without the excessive admin.

Pump up donation and subscription revenue

Charitable giving has taken a hard knock in recent years. A survey by CAF America found that nearly 68% of charitable organizations saw a decrease in funding. Bringing in secure, consumer-friendly channels for fundraising is a great way to offset this. You can even significantly increase revenue. Campaigns such as VISA’s ‘Tap to Give’ are trying to emanate the success of efforts in the UK, where contactless payments have long been the norm. For example, The Natural History Museum in London has raised over £1 million through the installation of contactless donation terminals.

Tackling the challenges of contactless fundraising

Although the benefits of this technology are impressive, digital transformation isn’t always easy. At the same time, making this investment is not as simple for NPOs as it is for businesses and corporations. Here are some of the challenges you may face and how to solve them.

Buying devices

While these fundraising devices are becoming more affordable, purchasing them outright can be out of reach for many NPOs, especially if you want enough to cater for events. To solve this, consider working with an organization that lets you affordably rent contactless fundraising devices. This is much more cost-effective and gives you the ability to easily scale up or down the number of devices as needed.

Donation transaction limits

The limits on contactless payments are entirely at the discretion of each bank. For instance, American Express sets a limit of $200 but this goes down to $100 for Visa, Mastercard and Discover. While this easily accommodates the average donation amount, donors will need alternative channels if they want to give larger amounts. When you are doing a big-ticket fundraising event like a silent auction or charity dinner, it’s better to have cheque or EFT facilities rather than contactless payment devices. We also recommend programming your devices with standard donation options. Using smaller options like $1, $5, and $10 can encourage people to donate more while staying within the limitation.

Capturing donor information

Contactless payments usually don’t involve the transmission of personal information. This is somewhat of a double-edged sword. On the one hand, it could encourage donations from people who are tentative to have their data in the hands of an organization (even a charitable one). On the other hand, most charities thrive on repeated engagement and donations. Therefore, one of the risks of relying fully on contactless technology is that you may see an initial uplift that then peters out over time. For this reason, try to be discerning about when and where you use contactless technology. This means segmenting your approach to donor engagement. For some events, you can focus on raising money whereas for others you’re looking to expand your network of committed patrons.

Training staff and volunteers

A lot of people have a good idea of how these devices work. But that’s as a consumer – not as someone gathering donations. A staff training program is important because these terminals work a little different to regular card terminals. Staff need to know where to place the card. They also need to know how to identify when the transaction has been successful. And lastly, they should understand how to deal with basic error messages. Fortunately, they are simple to master, and your provider should be able to supply training information for you to upskill your team. This will minimize errors and ensure the safest, quickest service for donors, and a stress-free time for staff and volunteers.

Tech support

As with all tech, it’s only as good as the support the vendor offers. If you don’t want to spend hours listening to “your call is important to us” and canned music, you need a partner that has cutting-edge tech, not to mention great service. A solid provider will make sure you get tech support and training, supply you with high quality and user-friendly devices and keep your software updated. They should have a proven track record and specialize in working with NPOs, recognizing that your values, practices, and requirements are very different to a business, and providing customized service as a result.

Final thoughts on going contactless for fundraising

Ultimately, we’re living in a world that is becoming more and more digitized every day. For NPOs and charities, digital transformation gives you that all-important connection with donors, making them feel comfortable and secure. Contactless payments are surging worldwide because they are fast, convenient, and safe – and your organization can reap these rewards and increase revenue through this investment.

 

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What Makes a Great Fundraiser? https://nonprofithub.org/what-makes-a-great-fundraiser/ Thu, 23 Jun 2022 13:12:16 +0000 https://nonprofithub.org/?p=350824 The post What Makes a Great Fundraiser? appeared first on Nonprofit Hub.

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What makes a good fundraiser?

Wait a minute, let’s raise the bar: What makes a great fundraiser?

For the sake of this discussion, we will focus on those in the profession who are on the front lines of making one-on-one solicitations. They’re raising support from the individual philanthropists who account for about 70% of America’s nearly $500 billion annual philanthropic enterprises. No matter the title — development director, development officer, major gift officer, rainmaker, etc., they share skill sets, passion, and grit that culminate in the development of significant sums of private resources.

While not exhaustive, here are some traits I believe make a successful fundraiser:

  •  Humility
  •  Enthusiasm for every ask
  •  Excellent skills in oral and written communication and active listening
  •  A broad set of interests
  •  Moxie

Before we dig deeper into these characteristics, let’s provide context on the talent drain and shortages facing nonprofits.

We’re Churning and Burning

According to an Association of Fundraising Professionals (AFP) study, half of the development directors expect to leave their current jobs in less than two years. As many as 30% are not sure they will remain in the profession.

A simple explanation: Too much aggravation and stress for too little reward. The smaller the nonprofit, the greater the pressure and the less the reward. Don’t forget that the overwhelming majority of America’s 1.5 million nonprofits are smaller. 88% have annual budgets of $500,000 or less. In an environment where the rich get richer — both staff-wise and organization-wise — there is a significant demand for proven development professionals, particularly major gift officers who have shown results in securing leadership gifts of five-, six- and seven-digits. The larger nonprofits can pay handsomely and do land such talented individuals. 

Let’s take a closer look at the five qualities of a great fundraiser: 

Humility: This is the foundation of realizing that no one knows it all. There are self-improvement opportunities all around us. Fundraising is the ultimate continuous improvement process. Whether the responses are yes,   no, or maybe, each solicitation has a genuine learning opportunity. Fundraisers are keenly aware of the need to keep their egos in check.

Enthusiasm for every askLet’s consider fundraisers as social entrepreneurs who live with the reality that reward comes with risk. In a genuine sense, the capacity to ask is like exercising a muscle. Do it regularly and well, and the muscle grows, don’t do it often, and the muscle trophies.

Great oral and written communication skills and active listening: Many people — especially those outside the nonprofit sector — mistakenly assume that live fundraisers can talk/persuade donors into making a gift. Not true. Laura Fredericks, the Expert on THE ASK, reminds us that during a productive meeting, the donor talks 75% of the time, while the nonprofit representative talks the other 25%. But they know how to make every second of their 25% count. Guide the discussion and ask the right questions; the donor prospect will tell you when, how much, and for what purpose they want to support.

A broad set of interests: People outside the sector also mistakenly think fundraisers are workaholics consumed by their work. That would work against them. Enjoying hobbies, culture, entertainment, and life, in general, empowers the fundraiser to relate more effectively to the donor prospect, no matter their age and walk of life. It also helps to read regularly and keep up with the news, which puts you in a position to have lively conversations and bond with others. (Be sure to avoid controversial subjects, such as politics.}

Moxie: Coming from Boston and being old enough, I remember drinking Moxie (one of the first mass-produced soft drinks) with an acquired taste. It is labeled “distinctly different.” Moxie also implies the admirable characteristics of courage, guts, and the belief that more is possible. It’s diplomatically asking and reminding influential people to take action and schedule essential appointments with donor prospects. Successful fundraisers aren’t afraid to dream big dreams. They believe every solicitation is a possible success, and you have a personal responsibility to give it your all-out best try.

How do we help them stick around?

Now that we’ve tried to define the DNA of great fundraisers, how do we keep them at our nonprofits longer than 18 to 24 months (an average tenure for the development officer)? 

For sure, salaries must be competitive, but the same AFP research indicates that this isn’t just about the money.

There are several non-financial factors at play: 

(a) Strong two-way communication. Fundraisers know they are heard and recognized for their accomplishments and invited to provide input on areas outside of fundraising. 

(b) Work-life balance has evolved into work-life integration since the beginning of the pandemic, with so many of us working remotely from our homes. Fundraisers often have events claiming their evenings and weekends and deserve the flexibility to meet the needs of loved ones that might come up during the traditional work week.

(c) Heart-to-heart discussion on a career path and growth opportunities. Professional development and robust interaction with peers are strongly supported. What are the options to move up? I am far from unbiased, but I fiercely believe that with some management training, development officers are well-suited to take on CEO or Executive Director’s responsibilities.

In Closing…

Losing a good fundraiser doesn’t make any sense. Experts estimate the cost of replacing, training, and transitioning new staff is well above the $100,000 level. Even more severe is the loss of relationship capital. Your top donors enjoy working with people that thoroughly know and appreciate their stories, preferences, and interests. Working with a new staff member can be a disappointment and loosen the emotional bond with the nonprofit.

Search and recruit development officers with a heightened sense of purpose. Work hard to orient them to the organizational culture and make every effort to keep them on board. Do all these steps with spirit, and the return on investment for your cause will be better than ever.

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Endowment Gifts for Nonprofits: Legacies of Giving and Sustainability https://nonprofithub.org/endowments-gifts-for-nonprofits-legacies-of-giving-and-sustainability/ Fri, 15 Apr 2022 20:14:00 +0000 https://nonprofithub.org/?p=349109 The post Endowment Gifts for Nonprofits: Legacies of Giving and Sustainability appeared first on Nonprofit Hub.

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Endowments: Legacies of Giving and Sustainability

Are you telling the right story and giving your supporters the right opportunities to give? Many high-wealth donors want to create endowment gifts for nonprofits. Endowments gifts for nonprofits can set up your organization to retain financial sustainability for years to come and showcase to donors that your organization to thinking about its future and growth over time.

The Harvard University endowment is currently valued at over 53 billion dollars in the fiscal year 2021, ending in the largest sum in its history. While an incredible school, if you are a small to midsize nonprofit (most nonprofits are, compared to this) you may be wishing that massive pool of funding was disbursed a bit differently.

In fact, most nonprofit leaders would wish that $53B was deployed more evenly. Many hope that some of these funds could be funneled into our organizations that are solving big problems within our local communities. 

Do donors want to give endowments?

One of the biggest hurdles to sustainability for small to mid-size nonprofits is the scarcity mindset and the false idea that donors don’t want to gift endowments. Remember Harvard’s $53B endowments? Do you know of Stanford’s $38B endowments? These higher education institutions (and many, many others) prove that high wealth donors LOVE giving endowments. They are a beautiful thing because endowments create a legacy of giving. It’s one gift that keeps giving for generations to come. It can be named and it can be added to It also grows and can give for generations to come. Donors know that their favorite organizations can count on income potentially everlasting.

The sustainability that endowment gifts could bring to established small to midsize charities in our local communities could be huge. But, what is the problem?  Unfortunately, not all nonprofits are telling the right story. Therefore, they aren’t giving donors the right opportunity to give. There are not many small to midsize nonprofits that have the infrastructure in place to accept endowment gifts which means weeks of accounting, legal, setup, and high fees. Because of this, it deters both donors from giving and nonprofits from accepting, and those gifts keep going to higher education while smaller organizations have to keep asking for the same thing year after year. Let’s change that, shall we? 

What is an endowment?

Understanding endowment gift for nonprofit doesn’t have to be as complicated as it seems! Some of you readers may be thinking, “That sounds easier said than done.” So, let’s break it down!

An endowment is a dedicated source of long-term funding, made up of donated gifts, which supports the mission and work of a philanthropic organization. Each year, a portion of the endowment is paid out as an annual distribution to fund the organization’s work. Any appreciation in excess of this annual distribution is retained in the endowment so it will continue to grow and support future generations. 

Micro-endowments are smaller funds that can still pay for salaries, programs, and scholarships year after year. There is a reason why higher education, donor-advised funds, family offices, foundations, community funds, and even our 401ks are invested – it works. We are simply encouraging more nonprofits to follow similar financial paths that are already in place and considered best practices by those around them.

This may surprise you but many high-wealth donors WANT to give endowment gifts! They want to create sustainability and a legacy of giving from their wealth. More nonprofits just have to tell the right story and invite them into the opportunity. Storytelling is so important to this giving and receiving process. It is essential that you take the time to have a strong mission and vision statement, an impactful story full of emotion and data, and a pitch that will wow your donors. 

How to get started

Not sure how to get started? Infinite Giving helps nonprofits easily create their own endowment and helps high wealth donors directly gift unrestricted miro-endowments (and stock shares) to their favorite local charity in about 20 minutes, with no setup cost. They can handle everything else.

Endowment gifts for nonprofits can help secure income that you don’t have to fundraise each year and they help donors create a legacy of giving for their families. Consider asking for the gift of sustainability with a micro-endowment.

This spotlighted blog post is courtesy of Infinite Giving. 

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