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Fundraising Tuesday: The Right Tools Help

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Feel like a numberYour supporters aren’t numbers. Why are you keeping track of them with a spreadsheet?

A recent study by Software Advice, a consultancy that helps nonprofits find software, found that 52% of the organizations they studied currently use general-purpose software, such as Microsoft Excel or Google Drive, to manage data. That includes all the data on their donors and prospects.

I feel your pain, nonprofits. You’re strapped for time and short on money. That makes you use the tools you already have–especially if they’re free.

But free is not always the best price.

What it Costs You to Use Free Tools

Using Excel or Google for your fundraising database may be fine if all you want to do is look up what you know about one person. Suppose, however, that you want to:

  • Send a carefully crafted email to only those people who have given more than $100 as a donation and who live in the zip codes closest to your office.
  • Keep track of registration for a gala or other event.
  • Print call sheets for a phone-a-thon.
  • Automatically send a welcome message and a series of follow-ups to new members.

You can’t do any of those directly from free tools.

If you want to send a targeted email message, for example, you might have to create a distribution list in Outlook, export it to Excel, import that to an email marketing system like MailChimp or Constant Contact, compose and schedule the email, and then enter the results back in Outlook–all by hand. What a waste of time! Don’t you have better things to do?

Better Tools for the Personal Touch

“Nonprofits have always tracked donors and contributions, but increasingly, buyers are requesting robust constituent relationship management (CRM) systems and outreach tools,” says Janna Finch of Software Advice, the author of the study.

Why invest in that kind of tool? The paradox is that the more high-tech systems let you keep in touch with your donors and supporters in a more personal way. As Finch explains:

CRMs let nonprofit staff track information beyond a supporter’s name, address and contribution amount, including specific interests, professional experience, relationships, participation in activities, and more. Leveraging this knowledge, fundraisers can create a personalized message that targets a group of supporters that is more likely to turn a fence-sitter into an active donor, advocate or volunteer.

The Power of Personalized Asks

It’s a sad truth that big corporations like pharmacy chains and health insurance companies treat me more personally than the causes I support. Part of the answer is to invest in tools that will let you, the nonprofit, track your relationship with me, the donor, and let me know you care.

Quoting Janna Finch of Software Advice again:

“Here’s a comparison to illustrate the power of personalization. The first is a sample of a generic ask letter sent to all supporters; the second is personalized and targeted to past donors who are also teachers working in a school district the organization serves.”

Generic: Once again, we’re holding our annual drive to collect contributions to supply underprivileged students with school supplies for the upcoming school year. Since our organization relies on the generosity of individuals such as yourself, would you consider a donation to our cause?

Personalized: As a teacher, you are undoubtedly aware of how having the necessary school supplies impacts a student’s educational experience. Thanks to your $100.00 donation last year, 23 underprivileged students in your school district started the year fully-stocked with supplies. Would you consider another donation this year to ensure every student has all the supplies he or she needs?

Neither of these is the ideal appeal letter–but the personalized one will win every time. And you can only write the personalized letter if the data are ready to hand. A CRM tool will help you let the donor know he or she is not just a number to you.

Fundraising Tuesday: What Nonprofit Donors Want to Hear

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want to hear from youLast week on Fundraising Tuesday, we looked at seven reasons your end-of-year appeal letters didn’t bring in as many donations as you and I would like. One of the biggest of those reasons is that you are not telling donors what they want to hear.

Three-quarters of the appeal letters you sent to the Fischman household focused on your nonprofit organization. You bragged about what “we” accomplished. You told Rona and me about what “we” need. And in each case, “we” meant the organization…not the Fischmans or any other donors.

The bad news is that by saying “we,” you are putting the donors on the outside and making them less likely to give. Donors don’t want to hear that you’re great without them. Why should they donate if you’re already doing so well?

The good news is that you can tell donors what they want to hear–which is that they matter.

Let Donors Hear the Difference They Make

Do donors really need to hear that they matter? Don’t just take it from me.

To create compelling stories for your nonprofit marketing, consider ways to make the audience the hero of the story. –Khaled Allen

Your donors don’t care about your campaign goal! -Tom Ahern

So what do donors care about?  They care about themselves.  Not in a selfish way, but in how they help your organization succeed.  They want to know what difference their support makes.  The impact their donation has on your ability to fulfill your mission. –Chad Barger

Why do superheros keep on going? Because they know something bad will happen if they stop. Making your donors the superheroes for your organization helps them understand they need to keep helping your cause, keep fighting the bad guys, and keep making the world a better place. –Kivi Leroux Miller

How You Can Say “You Matter” so They Hear It

If you are using the word you more than the name of your agency, that’s a good first step. By itself, though, you won’t do the trick.

'We are a great agency, so you need to support us' is not making the donors feel they matter. Share on X

The key idea to express is “Because of you, the donor, this success story happens.” Draw a direct line between the donor’s decision to give and the lives saved, or the people helped, or the great work of art produced or performed.

 

It’s odd but true: the more you claim the credit, the less people feel inclined to give. But please hear this: the more you step out of the way, the more you portray your organization as the donor’s tool for doing what they want done, the more likely your donors are to give. And to feel proud of themselves. And to give again.

 

Fundraising Tuesday: 7 Reasons You Don’t Get Enough Donations

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Donations by mailFrom November through December 2016, I received fundraising appeals through the mail from more than 100 nonprofit organizations. About half the organizations sent more than one e letter to my wife and me asking for donations. I spent a morning looking through each and every one of them.

Friends, we have to do better. And we can.

If you didn’t get as many donations as you wanted to this year, here’s how to do better in 2017.

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

1) You’re starting your letter “Dear Friend.”  A third of the 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. Three-quarters of the 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.  42 out of the  letters I received told just the facts, ma’am. Another 32 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 44 of 106 letters I received were text only! Another 27 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: nine out of ten appeal letters used exactly the same language to me that they would use to someone who had never given them a penny! And this has gotten worse since last year–even though the software for tracking your donors has improved.

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! 90 out of 106 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 wrote by hand, “So grateful for your wonderful, longtime support!” You can count on a renewed gift from the Fischmans. Ditto to the Highlander Center, Community Cooks, the Jewish Labor Committee, and the Somerville Homeless Coalition.)

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 66 of the letter-writers realized that (even if their P.S. was a bit perfunctory).

As for the 40 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.

Want More Donations? 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 17! (And if you want professional advice uniquely suited to your organizations and its donors, email [email protected].)

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