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What a Seal of Approval Says about Your Nonprofit

July 15, 2014 by Dennis Fischman 2 Comments

“There are about a dozen charity evaluation and watchdog organizations that offer seals of approval” to nonprofit organizations, according to Janna Finch of nonprofit fundraising software evaluation company Software Advice. But do they mean anything?

Yes–to your supporters.

giving-increase

Donors look for ratings seals

Finch’s survey found:

  • 55% of respondents “always” or “sometimes” check for ratings seals on your website.
  • 32% say the seal would “greatly” raise the chance they would make a donation.
  • 40% say the seal would “moderately” or “slightly” increase their chance of giving.

Why it’s too bad

There are lots and lots of nonprofits.  As a donor myself, I understand why people want better information about what they’re giving to.  But I think the focus on ratings and seals of approval is misguided.

First: ratings are based way too heavily on financials, and specifically, on overhead ratios.  But the overhead myth is holding nonprofits back.  For every charity that spends too much on administration and infrastructure, there are probably ten who spend too little–especially compared with the for-profit world.

Second: the ratings system costs money that small nonprofits can’t spare.  To display the seal of the BBB Wise Giving Alliance, your nonprofit would have to come up with $1,000-$15,000 every year.  This “pay to play” system discriminates against small-budget organizations.

Third: it’s hard to measure the “program impact” of a social movement.  What was the impact of all that marching and praying, Dr. King?  Where are your measurable outcomes for the last six months?  When seals of approval are awarded like Boy Scout badges, they may trivialize real, important, even historic work that donors should want to support.

What you should do

In the end, though, it doesn’t matter what I think of seals of approval.  It matters what your donors think.  They like them.  So if you can afford the time and the money it takes to win them, you should have them and display them on your website.

Really, though, you should communicate well enough, and often enough, with your supporters that they don’t need the Better Business Bureau or Charity Navigator to tell them how good you are. What a seal of approval is less important than what you say…and what your supporters say about you.

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5 Lessons Moses Can Teach Us about Fundraising, by Michael Rosen

April 15, 2014 by Dennis Fischman Leave a Comment

In honor of the Passover season, I’d like to share 5 Lessons Moses Can Teach Us about Fundraising | Michael Rosen Says… http://bit.ly/Qalj10.

I’d also like to wish Michael a chag sameach (happy holiday) and a refuah shleimah (complete healing of body and soul).  And my wish for the rest of you is: read Michael’s article.  It’s a good one!

 

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What Kind of Communicator are You, Anyway?

April 7, 2014 by Dennis Fischman 4 Comments

So a nonprofit has hired you as its communications consultant, or maybe even its Director of Communications.  But what do they really want from you?

Do they want you to help them raise funds?  To promote their programs?  Or to engage the broader community?

It’s vital that you find out.

Raising Funds, or Building Community?

Author Kivi Leroux Miller says whether you’re a fundraising communicator or a brand-builder/community-builder affects everything you do.

If you’re a fundraising communicator, then most likely:

  • You work for a smaller organization that can’t afford separate staff for both development and communications.
  • You focus on people ages 55+, because they give more money.
  • You use print and email marketing, and you send out direct mail appeals.
  • You also use phone banks and events.
  • You may “be on” social media but you’re cautious about it and see it as a lower priority.

But if you’re a brand builder or community builder, then probably:

  • You work for a larger organization (at least a $1 million budget), and your organization has a written marketing plan.
  • You focus on people under age 55, for the life-long value of the relationship.
  • You see volunteering (including advocacy and fundraising with friends) as equally important with immediate donations.
  • You do more content marketing than asking.  You tell more often than you sell.
  • You use social media regularly, and you aim to engage your community–not just do outreach.

Why It Matters

You need to know which kind of communicator you are, so you know how to direct your effort.  And the client or the employer needs to know too–so they can define what counts as success.

But what if you’re asked to do both? According to Kivi’s estimate, about half of us are asked to do both.  She says:

These communicators are the ones I worry most about, because their jobs are much more likely to be poorly defined, and therefore they are much more likely to burn out and hate their jobs.  We need all the creative, dedicated people we can get in this work, so I don’t want this to happen!

What kind of communicator are you?  Have you been in an organization that didn’t make your role clear?  How did you cope?

 

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