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Fundraising Tuesday: Annual Reports, the Long and Short of It

March 14, 2023 by Dennis Fischman Leave a Comment

What’s the right size for your nonprofit’s annual report?

In 2021, an organization with whom I have worked sent out a very brief annual report: two sides of a sheet of paper, including photos, quotable quotes, and pie charts showing their finances. They mailed it to all the postal addresses they had, and they attached it to email and sent it to the rest of their list.

In 2022, that same organization prepared what I think of as the traditional annual report: sixteen pages including a cover, a letter from the Executive Director, descriptions of all their programs and statistics about how many they served, and a list of donors by name and level.

Which approach was better?

SHC annual report coverAdvantages of a Short Annual Report

  • A two-page annual report is MUCH more likely to be read than a longer version.
  • It can be snappy and to the point.
  • The eye-catching elements (photos, captions, bold type) are a larger part of a short report than a long one. You avoid the wall of text that signals “no entry” to so many readers.
  • It’s cheaper to print and mail.

Don’t think, however, that it will take a lot less time to prepare a shorter report. Collecting and choosing the right stories, photos, and quotable quotes is a painstaking process.

(It’s like the opening line attributed to Mark Twain: “Dear ___, here is a long letter. I would have written a short letter, but I didn’t have the time.”)

You will also need to take time with the layout, to make sure you use a large enough font for your donors’ eyes and leave enough white space to make it readable and attractive AND say what you want to say.

Advantages of a Longer Annual Report

While few donors or funders will read a long report page by page, many will find it impressive. Having a lot to say, and saying it in a professional manner, will build trust that your organization is doing something worthwhile.

This is particularly true if you’re going to use your annual report to accompany phone, online, or in-person visits to donors or funders. You can either go over it with them or have a more personal conversation, not worrying that you’re leaving anything out: it’s in the report you’re leaving with them!

Some funders, and a lot of donors, may wonder why you’re spending their money on a glossy publication, or on mailing a multi-page document, instead of on program. You will want to know your particular audience and get a sense of how they’ll react.

In fact, the answer to “Which approach is better?” will always be, “It depends on who your audience is and how you will share the report with them.” Let’s talk about that in a future post.

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6 Reasons Your Fundraisers May Be Underperforming

October 4, 2022 by Dennis Fischman Leave a Comment

A guest post by Bonnie Meyer of Meyer Partners

If you’re pouring your heart and soul into raising money for your nonprofit’s cause, it can be frustrating when the amount of effort you put in doesn’t quite match the money raised. Fundraisers underperform from time to time, but sometimes trial and error through testing is the best way to learn what works for your nonprofit.

Keeping up with fundraising trends can be hard to manage, but it can also keep your fundraisers fresh and make sure they appeal to donors. In this article, we’ll cover some of the marketing faux pas that can keep your fundraisers from reaching their full potential, and how to alter your nonprofit marketing strategy to best suit your fundraiser and create a lucrative campaign.

Follow along to learn some of the most common reasons fundraisers underperform, and how to fix them!

1. You don’t have a compelling story

Your organization was founded to support a cause using your core values along the way. According to 360 MatchPro, 90% of millennial donors are motivated to give because of  a compelling mission rather than wanting to support a specific organization. People want to hear your “why” and learn about the driving force behind your organization and fundraisers.

If your fundraiser isn’t tied to a specific project or doesn’t incorporate your core values, then you could be missing out on engaging a crucial audience. Your audience wants to learn about your cause, the work you’re doing, and the people you’re helping. Without those details, your donation requests will feel much less urgent and compelling.

Each fundraiser should have a story to engage your audience and inspire donors to give to your cause. Here are some ways to incorporate storytelling into your fundraising:

  • Include imagery of your volunteers in your promotional materials.
  • Create a fundraiser tagline that highlights your mission.
  • Show the people or places you’ll be helping.
  • Explain how your nonprofit was inspired to aid your cause.

Tie your fundraiser to a concrete project or initiative to give supporters a better understanding of who or what they’re contributions will go toward. If your next fundraiser is just a general fundraiser for your organization, consider planning it around a holiday, giving day, or a themed day related to your cause. This can help you create a message for your campaign that is tied to a story rather than just your nonprofit. Look for days of celebration that could be related to your cause, such as Mother’s Day for a women’s shelter or Earth Day for a climate change nonprofit.

Whether you’re fundraising broadly for your nonprofit or creating a short-term campaign, it is critical to weave storytelling into your strategy. This can help inspire donors and relieve any questions they may have about where your funding goes.

2. Donors don’t understand where their contribution is going

People donate to feel like they are a part of supporting the cause they care about. If they can’t figure out exactly how your organization will use their gift, they may feel less motivated to contribute.

Be specific about current initiatives or projects that your donors’ contributions will go toward. This will give your donors confidence to give and make them feel like your nonprofit is efficient and capable. Follow up with donors after their contribution about how the fundraiser went and the next steps in your project to grow this confidence in your organization and inspire them to stay involved.

3. You don’t show appreciation

Fundraisers without subsequent appreciation campaigns can be discouraging for donors. Without showing how meaningful your donors are to you and your organization, donors may just feel like a cog in the wheel.

Reach out to them with personalized messages to make them feel seen and appreciated. Avoid sending robotic automated messages, as this can make donors feel less valued. Here are some ways to connect with donors on a human level:

  • Include donor names in the communications you send them.
  • Have leadership call mid-size and major donors to personally thank them.
  • Remind donors of how they’re helping your cause and initiatives.
  • Tell them a story about someone who was helped because of their contribution.
  • Follow up quickly after their first donation.
  • Send branded merchandise gifts.
  • Send annual report newsletters highlighting their contributions.

You can also show appreciation for your donors on your website and social media platforms by spotlighting specific donors or providing updates on your projects and programs.

Donors want to feel like they’re making a difference, so be sure to keep them updated on the outcome of the fundraisers they participated in, where the money went, and how it was used. Then, they’ll feel like an important part of the community and will be more likely to give again.

4. Your fundraiser isn’t easily shareable

When potential donors can’t share your campaign or don’t have enough information to spread the word about your fundraiser, your audience may shrink. Reaching out to current and recurring donors can be a great place to start, but if they can’t share their involvement, their networks will be slow to catch on.

People are often excited to share with friends and family about their donation and how they are helping a cause they care about. Think about reaching donors where they are. Try to use communication channels that naturally encourage sharing when promoting your fundraiser, like social media, email, and text messaging.

You can still use traditional communication channels like direct mail and phone calls, but make sure the cost of these methods doesn’t outweigh the funds raised from them.

5. You don’t steward all levels of donors

If your fundraisers are focused on too narrow of an audience, you’re likely missing out on reaching potential donors. Your fundraisers should appeal to a multifaceted audience of donors at every stage of the donor pyramid.

According to Meyer Partners, the donor pyramid has nine levels, ranging from prospective donors to lead donors at the top. To be sure your fundraisers are lucrative, you’ll need to steward donors at each level of the pyramid. This involves the process of recruiting donors, upselling them, and fostering major donor relationships.

Here are some benefits of stewarding different levels of the donor pyramid:

  • Prospective donors. Recruiting new donors means expanding your network of supporters and reaching new individuals who are energized about your cause.
  • Recurring donors. Encouraging existing donors to increase their gifts helps your organization grow financially and increase your donor engagement.
  • Major donors. Creating a healthy dialogue with major donors shows that you value their involvement and want to maintain a strong relationship.

You won’t know when donors may be ready to make the leap to the next level of the donor pyramid if you don’t reach out to them. Whether this is because they’ve developed a stronger affinity for your cause or because of a change in their circumstances that increased their giving capacity, be sure to steward at all levels.

6. You don’t stay up-to-date with trends

Picking arbitrary dates and seasons to host your fundraisers is ultimately a missed opportunity for an otherwise successful fundraiser. Because nonprofits are always in the midst of an active fundraiser or the planning stages of one, you have ample opportunity to learn from each fundraiser. Record and track data about donor engagement, recruitment, retention, and communication. Leverage this valuable information by creating reports and analyzing the data to find donor trends.

Here are some trends to look for in your donor data:

  • Times of the year when donors are more willing to give.
  • Events dates that had more guests attend.
  • Donor response rates on communication channels.
  • Donor retention and donor upsell rates.

In addition to donor trends, be sure to pay attention to the latest nonprofit fundraising trends. Some of the tried and true methods of fundraising have started to fall by the wayside to make room for more convenient or cost-effective methods like online fundraising and corporate gift matching. Make sure your fundraising platforms are efficient and cost effective to truly maximize the potential of your fundraiser.

Regardless of how much time you take to plan your fundraiser, nothing beats knowledge of the industry. Train your fundraising team to ensure they are adequately prepared to speak authoritatively on behalf of your organization and identify the best avenues for fundraising.


Bonnie Meyer head shotBonnie Meyer

Bonnie brings to her role at Meyer Partners more than 30 years of fundraising experience, with a special emphasis in multimedia approaches to new donor acquisition and development. Her expertise encompasses several facets of direct response fundraising, including copy writing and creative direction, market research, strategic planning, and comprehensive results analysis.

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A Nonprofit Doing Donor Communication Right

October 15, 2018 by Dennis Fischman Leave a Comment

My wife and I have been proud of supporting MassCOSH for many years because they keep workers safe on the job. Now, I am proud of them because they’ve sent me two shining examples of how to do donor communication the right way.

Inform first, ask later. Share on X

The Nonprofit, in the News

MassCOSH has a great program called Teens Lead @ Work. If an adult tells a state legislator that a workplace is unsafe, sometimes the legislator wonders if that adult has a hidden agenda.

Teens are straightforward and believable. When they speak up, their voices carry a lot of weight. Especially when they combine research with personal experience and make a passionate presentation, they can be the best advocates for a cause.

MassCOSH mailed me an article showing how fifteen-year-old Josh Ramirez and his fellow Teens Lead advocates are spreading the word at their schools and preventing teens from being killed at work. Attached to the article was a sticky note, saying simply, “We wanted to share this with you!”

No request for donations. Not even a reply envelope. This time, they’re giving something to me.

The Summer Intern, in the Story

Abigail Barton came to MassCOSH as an intern at the beginning of the summer. I know because she wrote and told me so.

Throughout the summer, I heard from Abigail in the mail: about the skills she was learning and about the values that working at the organization was solidifying within her.

I am so excited to see what the future holds, but I also know that I have a responsibility to fight for a future that’s fair and just. I don’t take that responsibility lightly.

Again, no “ask.” No appeal letter. But when MassCOSH sends its year-end appeal, I will remember Abigail. Wouldn’t you?

In fact, if the organization doesn’t mention her in its appeal letter, I’ll be very much surprised!

Donor Communication Done Right

Before you ask your donors for any money, first ask yourself: what have I shared with them? Did I let them know the impact of their gift? Did I make the donor the hero of the story?

If not, take a leaf from MassCOSH. Send your donors something they’ll value right now.

See how much of a difference it makes in December!

 

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