Communicate!

Helping you win loyal friends through your communications

TY Thursday: Thanking Donors Like It’s Groundhog Day

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Should you send written thank-you’s to donors? Again?

Only if you want them to give again!

242 Cards for Groundhog Day

groundhog day cards

My wife, Rona Fischman, sends handwritten cards to every one of her past real estate clients for Groundhog Day.

Why Groundhog Day? Nothing to do with Bill Murray! It’s just that the December holidays are an emotional minefield, with some people firmly attached to Christmas, Chanukah, Yule, or Kwanzaa, and some who don’t want to identify with any of them.

Sending cards on Groundhog Day offends no one, and it tickles the Wiccans. It puts good wishes in the mailbox when everyone else isn’t flooding the recipients with mail. It also puts former clients in mind of 4 Buyers Real Estate just as the spring season is about to begin and they–or someone they know–is starting to think of buying a house (and needs a good agent).

The more important question is, why hand-written cards? That, too, makes Rona and her company stand out. It is on brand for them to show they care about each client individually, and remember their needs.

Do your nonprofit's donors know that you remember and care about them? A hand-written thank-you in the mail makes sure that they do. Share on X

Why It’s Worth Your Time to Send TY’s in the Mail

You may be saying to yourself, “We automatically email donors as soon as their check or credit card number hits our system. Why do we need to send mail, too? And is it really worth the time to personalize them?”

It’s only worth it if you want to hear from them again!

Nonprofits are having a hard time getting that second gift, according to the Association of Fundraising Professionals, “with recaptured donor retention falling almost 20% [in 2023] from an already low level.” You may be seeing that in your own database. You spend so much time and care crafting the fundraising appeal, and you get a donation from a person or household for the first time–and then, they ghost you. Why?

Okay, sometimes it has nothing to do with you. The donor lost their job and they have no money available for philanthropy. Most of the time, however, it’s because they didn’t feel their first gift was seen, or valued, or appreciated. You made your organization the hero of the story and left them out.

Here’s what you can do instead:

Will all that take time? Yes! Rona watched several episodes of her favorite police procedural while she was writing her cards. You can do something similar, if you like. Listen to music, or a podcast, if you don’t want to keep glancing up at the screen.

Will it be worth it? Yes! When you see the first-time giver become a loyal donor, with a lifetime value far higher than any one-time gift, you will be saying thank you to yourself that you took the time to thank them.

 

Fundraising Tuesday: How to Get Donors to Respond

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At the beginning of January, you heard from me about thirteen things nonprofits should STOP doing in their fundraising appeals. When you see a good example, though, please jump right in and do the same!

My first good example for you: RESPOND, New England’s first domestic violence agency and the second oldest in the nation. Both in their Spring and End of Year appeal letters, this nonprofit did things that are guaranteed to make their donors…well…respond!

RESPOND envelope

It starts with the envelope

RESPOND did three things that, before donors even opened the envelope, made it more likely they would read their message.

  1. Used a live stamp–a cute picture of a mama elephant and her baby–not a rubber stamp.
  2. Put their name, logo, and slogan (“Working to end domestic violence”) in the reply address. I knew who was sending me the message!
  3. Hand-wrote my name and my wife’s name in the address, and spelled the names right.

Last year, did your envelopes welcome the potential donors in to read your message? This year, could you borrow these three techniques from RESPOND?

The photos catch the eye

RESPOND Inc. Spring 2023 appeal letterBack in May, the letter featured the photo of a young mother cradling a newborn infant in her arms.

It’s touching. It’s beautifully composed: your eye follows the mother’s face to the baby’s, to her flowing hair, back to her face and then to the body of the letter. And it introduces the story that’s going to be told in that letter: about raising children in a safe space.

Respond End of Year 2023 appealThe letter that came out just after Thanksgiving shows the picture of a different woman, in her middle years, hugging herself, with a sad expression, but looking directly at you, the reader.

It, too, introduces one person’s story: a woman who had left her abusive husband but now faced the possibility of being evicted and out on the street.

(Notice that RESPOND didn’t try to talk about both women and their needs in one letter. They knew that a single story is more powerful, and they chose one story, one photo, at a time.)

These photos mattered. They didn’t replace the words, but they made me, the donor, want to read the words. Did you do that for your donors?

They had me at hello

If I think about it, I’ve never really had a safe place. I’ve been on my own pretty much from the beginning. I’ve had to raise myself.

If you saw the photo of the woman with the newborn baby and read these words, how would you feel? Would your heart go out to her?

The Spring appeal started with those two elements, that photo of a woman called Nicole and this quotation in her own words. As a reader, I wanted to hear her story. As a donor, I wanted to help.

“I thought I was doing everything right.”

When Priscilla walked into the RESPOND office this fall, her hands and her voice were shaking….

The End of Year appeal began that way, and again, it gripped me. Immediately, I was in the middle of the action, with a woman in trouble. I was looking for a way to help her–and RESPOND was right there.

Does the opening of your appeal letter make your donors want to know more, and to help?

Things get worse before they get better

Nicole married young. Her husband got laid off from work when the pandemic hit. He started to hit her. “And then, Nicole discovered she was pregnant.”

Priscilla made the hard, brave decision to leave her husband. He harassed her at her new place until she got a restraining order. Then, she came down with pneumonia. She was out of work for weeks, and the medical bills started to pile up. “She was holding a 14-day Notice to Quit–the first step to eviction proceedings.”

RESPOND made it clear just how bad things can get for women like Nicole or Priscilla. That made it urgent for me, the donor, to give.

Is your nonprofit showing the dire need for help and making the donor the hero of the story?

Don’t stop there

Research shows that your donors are more likely to look at their name, the first line, the photo, and the postscript than they are to read anything else. RESPOND knew that. They used the P.S. to call the reader to action.

P.S. Thank you for supporting RESPOND this Mother’s Day! Visit respondinc.org/donate (or point your smartphone camera at the square below) to get started.

Is your nonprofit getting the last word? Can you use a P.S. to get a better response on your next appeal letter?

Nonprofit Financial Management: 3 Frequently Asked Questions

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A guest post by Jon Osterburg at Jitasa 

If your nonprofit is like most, you focus most of your time and effort on two priorities: fundraising, and furthering your mission. After all, your organization was founded to make a difference in the community, and fundraising provides the revenue you need to achieve that goal.

However, there is an essential step that comes in between fundraising and mission-related work: financial management. A solid nonprofit financial management strategy allows you to carefully track the revenue you bring in through fundraising and allocate it to fund mission-critical programs and projects.

As your nonprofit gets started with financial management, you’ll likely have some questions. In this guide, we’ll answer three frequently asked questions about nonprofit finances, including:

  1. Why is financial management important for nonprofits?
  2. What are the core aspects of nonprofit financial management?
  3. How can my nonprofit get started with financial management?

1. Why is financial management important for nonprofits?

Financial management is essential for all nonprofits, whether your organization is just getting started or is well-established. Some of the advantages you can gain by developing and implementing a financial management strategy include:

  • More efficient operations. Keeping track of your finances allows your organization to fundraise more sustainably, make more informed decisions, and plan upcoming projects and campaigns with less stress.
  • Long-term strategic planning. In addition to mapping out your short-term strategy, effective financial management helps you make projections about your organization’s future and determine how quickly it can grow.
  • Legal compliance. Because of your nonprofit’s tax-exempt status, it’s subject to some financial rules and regulations that for-profit organizations aren’t. So, you’ll need to put time and effort into financial management to follow those guidelines.
  • Transparency. Donors want to know that your organization is using their contributions to make a difference. By showing them that you’re managing your finances properly, you’ll build trust and deepen your relationships with them.

Financial management and fundraising depend on each other to succeed. If you correctly handle the contributions your nonprofit brings in, you’ll attract even more donations that can be used to further your mission and fund future fundraising campaigns.

2. What are the core aspects of nonprofit financial management?

Similar to a fundraising plan, nonprofit financial management involves three major elements: strategy, execution, and evaluation.

  • Strategy = budgeting. Your nonprofit’s budget is a financial planning document that outlines all of your expected revenue and expenses for a given year. According to Jitasa, most nonprofits categorize their revenue by source (individual donations, corporate giving, grants, etc.) in their budgets. Expenses are budgeted based on whether the money is spent on mission-related activities (program costs) or operating needs (overhead costs) so you know how your funding is being used to make a difference.
  • Execution = financial policies. Creating a standard set of procedures ensures everyone at your nonprofit is on the same page about how to handle the organization’s finances as they go about their daily activities. Your financial policy handbook should include guidelines for gift acceptance, staff compensation, expense reimbursement, investing, and more.
  • Evaluation = reporting. Financial reporting provides the previously mentioned benefits of transparency and compliance, plus analyzing your organization’s collected data helps with internal decision-making. The most important report you’ll complete each year is the IRS Form 990, which allows your nonprofit to stay tax-exempt. Most organizations also include some financial information in their annual reports for their donors’ benefit.

Once your nonprofit’s budget is finalized, following your financial policies will help you bring in the revenue you outlined and cover all of your predicted expenses. Then, you can use that information to create thorough, accurate reports that you can reference as you develop your budget for next year.

3. How can my nonprofit get started with financial management?

If you run a small shop, it is possible to start managing your nonprofit’s finances on your own. There are a variety of resources available online, from budget templates to the IRS guidelines for filing Form 990, that you can use to understand your organization’s financial needs. Additionally, it’s important to set your nonprofit up with specialized accounting software that you can use to collect, store, and pull reports of your financial data.

However, the best long-term financial management strategy is to work with experts. There are two main types of nonprofit financial professionals, bookkeepers and accountants. Here are a few of the key differences between these roles:

This graphic outlines the differences between nonprofit bookkeepers and accountants, which are discussed in more detail below

  • Bookkeepers are responsible for your nonprofit’s day-to-day financial needs. According to NXUnite, some of their tasks include recording transactions, writing and depositing checks, and processing payroll. Because your bookkeeper doesn’t need to be a Certified Public Accountant (CPA), you can give this role to any staff member with financial knowledge or even a trained volunteer.
  • Accountants focus on financial analysis, reporting, and decision-making. Their duties include guiding the budgeting process, filing your Form 990, and reviewing your financial policies to ensure compliance. Your nonprofit’s accountant needs to have their CPA certification, and most of these professionals also have at least a bachelor’s degree in accounting or a related field.

Because hiring an in-house accountant can be expensive, many small and mid-sized nonprofits choose to outsource their accounting services. You can also look for an outsourced bookkeeper if your organization’s needs become too complex for your staff and volunteers to manage on their own. No matter which financial roles you choose to outsource, make sure the external professional you partner with specializes in working with nonprofits for best results.

Jon Osterburg has spent the last nine years helping more than 100 nonprofits around the world with their finances as a leader at Jitasa, an accounting firm that offers bookkeeping and accounting services to not for profit organizations.

 

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