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Fundraising Letters HAVE to Improve in 2016!

January 5, 2016 by Dennis Fischman 4 Comments

Fundraising lettersSince Thanksgiving, I have received 90 fundraising appeals through the mail. I spent a morning looking through each and every one of them.

Friends, we have to do better.

7 Reasons You’re Not Getting Enough Donations (and what you can do about it)

1) You’re starting your letter “Dear Friend.”  32 out of 90 letters I received called me Friend or Supporter–or didn’t call me anything at all.  Wrong!

As fundraising expert Gail Perry says, “Your donor expects that you know her name and who she is, since she’s been sending you money for a while!”  Fix this by using a good database and adding a First Name mail merge field to your appeal letter.

2) You’re mainly talking about your organization. 47 out of 90 letters were in French: they said “we, we, we.” But that’s making your organization the hero of the story!

As Seth Godin has pointed out, in a good appeal letter, the donor is the hero of the story.  That’s why they give. Fix this by talking about how the donors are helping to right wrongs, save lives, or help people.

3) You’re not telling an “impact story.”  There are six types of stories that nonprofits should tell. In your appeal letter, you should tell an impact story, showing how the donors’ contribution makes a difference.  41 out of the 90 letters I received told just the facts, ma’am. Another 29 included a brief quotation from a client, or a general anecdote about a client, and how the agency helped them.

These letters blur on me. They all sound alike. Fix this by telling a compelling story about one person whose life is better because the donor helped.

4) You’re not including a photo. 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.

Fix this by taking striking photos of people in action throughout the year. Then you won’t have to scramble for a picture in December.

5) You’re not letting me know you appreciate what I already gave.  This, I find really shocking: 60 out of 90 letters I received–a full two-thirds–used exactly the same language to me that they would use to someone who had never given them a penny!

Fix this by segmenting your list, writing different letters to prospects, lapsed donors, and renewing donors, and acknowledging the date and amount of the previous gift.

6) You’re not personalizing your letters. It used to be a no-brainer for Executive Directors, Development Directors, or Board members who knew the donor to write a personal note on appeal letters. People, we are going in the wrong direction on this! 81 out of 90 letters arrived in my mailbox with no personal touches whatever–even when my wife and I have known the person sending the letter for many years.

Fix this by composing your appeals long enough in advance to add those personal notes…and doing so. (Kudos to the Davis-Putter Scholarship Fund, whose Director, Carol Kraemer, wrote by hand, “So grateful for your wonderful, longtime support!” You can count on a renewed gift from the Fischmans.)

7) You’re neglecting the power of the postscript. When people read letters, they look at the banner, the salutation, and the first line…and then their eyes jump to the bottom of the page. I’m happy to say that 60 of the letter-writers realized that (even if their P.S. was a bit perfunctory).

As for the 30 of you who didn’t add a postscript, you skipped doing the simplest thing you can do to increase donations! Fix this. Add a postscript unless there’s a really good reason not to.

Look for Tips on Tuesday

You may be wondering now, “What did our appeal letters look like?” Go back and check your letter. If you made even one of those seven mistakes, you probably left donation money on the table.

How do you write better fundraising letters? I can help.

Between now and Tax Day 2016, read this blog every Tuesday. You will get a no-nonsense, how-to, “do it today” tip on every aspect of your appeal letter, from the salutation to the P.S.

Some of them will be so easy you’ll kick yourself for not doing them before! Some will take a little work–but I will show you how to do them, step by step, with video when necessary.

Look for Tips on Tuesday beginning next week, January 12!

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Nonprofits, Many Thanks

January 4, 2016 by Dennis Fischman Leave a Comment

thank-you letter

Write the ideal thank-you letter

Are you sending out a lot of thank-you notes?  (I hope so, since that means you got a lot of donations!)  Here are some great tips on writing thank-yous that people will remember.

  • Caryn Stein of Network for Good gives us 5 Rules for Thanking Donors.
  • Pamela Grow shares A free thank you letter template you can swipe!
  • Beth Ann Locke advises us, “Start with appreciation. End with thanks. And liberally sprinkle gratitude in between.” Find out how in this great article.
  • Gail Perry of Fired-up Fundraising tells us How to Craft a Killer Thank-You Letter.
  • I’d be silly not to mention my own article, The Ideal Thank-You Letter Went Out Today. (It’s the sequel to The Ideal Appeal Letter Begins With You.)

My friend Ann Green has it right: we should be thanking our donors all year long.  In fact, she suggests we set up thank-you calendars the same way we set up editorial calendars.  Now, there’s a resolution to keep in 2016!

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Are You a Fundraising Outlaw?

December 29, 2015 by Dennis Fischman 2 Comments

Registering your nonprofit for fundraising sends a positive message to your donors. Guest post by James Gilmeroutlaw

A huge percentage of charities in the United States are raising money unlawfully, and don’t even know it.

Both new nonprofit founders and executives mistakenly believe that recognition as a 501(c)(3)–that is, being exempt from federal income tax–is a “golden ticket” to limitless fundraising. The reality is, forty-one states have an additional registration requirement, which if you ignore, can get your organization in some hot water.

This post is a basic introduction to the subject of charitable solicitation (aka fundraising) compliance. The purpose of the article is to get you thinking about your organization’s credibility, how to avoid penalties, and even impress your donors!

Registering with the State

“Fundraising registration” occurs at the state level, where you file information about your organization’s leadership, financials, and programs with the Attorney General or Secretary of State.

“Compliance” refers to managing  registration requirements in each state where you solicit, renewing your annual registration on time, and keeping up with additional corporate filing and registered agent requirements.

Why Comply?

There is a cost to fundraising registration, both in government fees and time, but those costs are easily outweighed by state and federal penalties. We’ve seen fines of over $5,000 for a single infraction in one state. How would a hit like that affect your organization?

Besides fines for failure to register or renew, states can revoke your organization’s state tax exemption, hold officers and directors personally liable for payment, and deny your right to solicit in that state altogether.

At the federal level, you disclose where your organization solicits funds directly to the IRS on your Form 990 tax return. Let’s face it: lying to the IRS isn’t a good idea either!

Fundraising Compliance: What You Gain

The purpose of all this work for you is a good one: to protect citizens of that state from unregulated or illegitimate charities.

Just as you do research on prospective donors before you ask them to give, experienced donors use state databases to look up your nonprofit before they make a contribution, especially if they’ve never heard of you. Many foundations and grantmakers consider state registration an important prerequisite to any funding. Being registered with the state helps reassure donors that they are making a good investment in your organization.

By investing in compliance, you demonstrate your credibility and commitment to the community you serve. To learn more about specific fundraising registration requirements in your state, visit this Fundraising Compliance Guide.

Happy fundraising!

 

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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