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Establishing a Donor Base When You’re a New Nonprofit

March 14, 2016 by Dennis Fischman 1 Comment

Guest post by James Gilmer

New nonprofits have the opportunity to fill so many under-served needs in their community. But how do you communicate the valuable difference you will make to donors? How do you even find the sources of income your nonprofit needs to survive?

The foundation of your nonprofit’s success is its people, specifically your board and volunteers. In your nonprofit’s early stage, your board of directors will determine the organization’s direction, and members should be able to use their money, connections, and ideas to network and gain initial traction in the community. That’s means it’s extremely important to select a board of directors that will actually earn your nonprofit a return.

The next thing is to understand what your donors want from you. To you, your nonprofit’s mission may be the greatest idea since sliced bread. No offense, but your donors won’t see it that way. They need to feel connected to your cause before they give. When you’re speaking with prospective donors, foundations, and corporations, tell a story. Otherwise, you’re just noise.

Equally importantly, donors want to see your 501(c)(3) exemption from the IRS. This status makes your organization exempt from federal income tax and is the first step to fundraising legally. It helps your donors know that you are a legitimate charity. More importantly, they can get a tax deduction when they make a contribution.

Lastly, stay in touch with your donors. After they give, send a thank you note. Invite them to events. Send them updates. Most of all, show them how their contribution made a difference. In that way, you’ll not only earn a gift, but hopefully a life-long supporter.

 


Author Bio: James Gilmer is a compliance specialist for Harbor Compliance, which establishes 501(c) nonprofits and helps them stay compliant. Harbor Compliance assists charities in every state and several countries abroad. James serves on the Board for two nonprofits in Lancaster, Pennsylvania.


 

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TY Thursday: Here’s To You, Generous Donor!

March 10, 2016 by Dennis Fischman 1 Comment

toasting

Raise a glass to…your donor

What do we do at weddings to make the bride and groom feel extra special? We make a toast.

What can you do to make your donors feel extra special? Raise a glass and toast their generosity. (And you don’t have to wait for a party to do it!)

Salute & Say Thanks

The essence of a toast is not the liquid you drink. It’s the words you say.

A toast lets people know that you believe they’ve done a great thing. You’ve taken the time to be there and the thought to put together your speech. Both your time and your thoughtfulness lift the occasion out of the ordinary…and honor the person you’re saluting.

A toast shows that you know the person you’re honoring. That’s why the best man, the maid of honor, and the parents are logical choices to give toasts at weddings: they know what the bride or groom likes, and they have revealing stories to tell. The more you know about your donor, the better you can be at thanking them.

A toast reaffirms a relationship. When you speak publicly about what the donor has done, in a way that shows you value them as a person, you make them feel closer and more loyal to you in return.

That’s why, even if your organization is alcohol-free and you raise a glass of sweet tea instead, a toast is a unique way of thanking your donors.

Don’t Wait for the Gala!

Between the time you receive the gift and the time you hold an event, it might be months. Like a glass of bubbly that sits out on the counter, your toast might lose some of its savor if you wait that long. It will still be sweet, but a lot of the fizz will go out of it.

You don’t have to wait. Take out your camera and make a one-minute video toasting your donor. Then, post it on your website. Or send it through your social media.

If you think the donor is shy, email it to them. They will probably still share it with their family and the people closest to them.  They may even take it out and play it again from time to time, just for themselves. Like a wedding video.

 


 

You should plan to thank your donors throughout the year. But how? Every Thursday, I’ll share a different idea. Follow TY Thursday!

 

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Fundraising Tuesday: Get the Picture

March 8, 2016 by Dennis Fischman Leave a Comment

stand out

Photos make your appeal stand out

At the end of 2015, I went through all the appeal letters nonprofits had sent me. (Yes, yours too.) What I found was shocking.

People are becoming more visually oriented, and a photo helps your appeal stand out. Yet 40 of 90 letters I received were text only!

Another 24 included blurry black-and-white photos, or nice color photos that added nothing to the message.

What a wasted opportunity!

What a Photo Does for Your Fundraising Letter

Words matter–but only if people read them.

When a donor receives your letter, she takes about three seconds to decide whether to read it or throw it in the recycling. In three seconds, what can she see? Possibly:

  • Whether or not you called her by name
  • Text that jumps out at her because it’s bold
  • The first line of the letter
  • The postscript

invite meBut more than any of these, a photo with a caption invites the donor in.

<–See what I mean?

Time to Take the Photos

I’m a words guy. Like the candidate who shall not be named on this blog, I have good words. But they do my nonprofit no good if nobody reads them.

You have a camera in your pocket. Use it. Every week–every day, if possible–snap a photo or two that help your nonprofit organization tell its stories. Collect those photos in your storybank. When you write your fundraising letter, pick the photo first!

Then your fundraising letter will stand out like a penguin wearing shades. And your future will be bright.

 


Every Tuesday this season, I’m offering a tip on how to write better fundraising appeals. Find the rest of the series under Fundraising Tuesday.

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