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Fundraising Tuesday: Is Your Nonprofit More Australian or American?

September 6, 2016 by Dennis Fischman Leave a Comment

Australia

Australia, where the target audience is the government

Does your nonprofit organization want to be known and respected?  Why, and by whom?

The answer may vary by country–and how you answer determines how you should communicate with your supporters.

Australian not for profits…

I recently spoke with Chris Gandy, a colleague and the founder of the Australian consulting firm Cause and Effective.  In Australia, it is common for not-for-profits to compete to receive funding from the government.  Few of these organizations obtain a significant portion of their budget by fundraising from the public.

That means that content marketing in Australia is aimed at a very specific audience.  The people that our friends Down Under want to impress with their organizations’ expertise are what we in the U.S. would call bureaucrats.  This audience expects subject-matter knowledge, well-substantiated claims, and detailed evidence that taxpayer money will be spent appropriately.

…vs. U.S. nonprofits

In the U.S., government is still the biggest source of funds for nonprofits, but its share is declining.  Over the last dozen years, I have seen nonprofits increasingly market themselves to donors, community-minded businesses, and philanthropic foundations.

These givers ask first, “What difference do you make?”, and only then, “How much do you know?”  And the rule of thumb in the U.S. is to win hearts first.  Once people want to support you, they will look for reasons to do it–and by providing those reasons, you clinch the deal.

Of course, it’s not a simple binary choice. Bureaucrats have hearts, and donors have heads.  But for your agency, getting the balance between the two right is crucial for your fundraising success.

At your nonprofit organization, are you more American or Australian?  Which is more important to you: your organization’s prestige in your field, or your brand loyalty among your supporters?

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Fundraising Tuesday: How to Turn Your Statistics into Stories

August 23, 2016 by Dennis Fischman 1 Comment

statistics vs. stories

Even true stats can’t match true stories

You’ve probably seen them. Maybe you’ve even written them. We’re talking about the fundraising appeal letters that are based on statistics.

“Last year we served 10,000 meals to 500 people at 5 different locations.”

“We delivered a petition to the White House with 49,000 signatures demanding action.”

“We raised $120,000 to give college scholarships to students in our community.”

These numbers matter to us…but not to our donors. They may not even read them. They will not remember them.

Why Statistics Don’t Matter

The problem with statistics is not that they don’t reveal enough. (Even though they don’t. For example: Is 10,000 meals a lot or a little? How many people stayed hungry?)

The problem isn’t that the numbers can be fudged, either.

The real problem is that statistics don’t touch the heart.

Donors decide to give because you engage their emotions. They feel the pain of a child going hungry, the pride of a community sending its brightest high school students to college. Without an appeal to the heart, they will not even pay attention. Once you move their hearts, you will get a chance to make them nod their heads, too. But not until then.

Why Stories Work

As a species, we crave stories. Like water, like food, like the air we breathe, stories are vital to us. We listen to stories to make sense of the world around us. We shape the events of our own lives into narratives to give our lives meaning.

Stories stick in the memory. Have you ever tried to memorize a grocery list? After a certain length, it becomes impossible. You can try singing the list to a well-known tune, or counting it on your fingers, or alphabetizing it, and still you’re likely to come home and realize you’ve left several items sitting on the supermarket shelves. But if you give it even a little bit of narrative structure–“We’re having pasta tonight, so I need tomato sauce and salad fixings”–it becomes so much easier.

Telling stories to your donors makes the work you’re asking them to support tangible, meaningful, and memorable. If you touch the donor’s heart, you can even make it compelling. The donor will want to give!

3 Steps to Turn Your Statistics into Stories

What if you’re used to writing fundraising letters that are full of statistics? You can learn how to take what you have written in the past and turn it into storytelling your donors will love.

Let’s take one of the sentences full of numbers I mentioned above and transform it.

“Last year we served 10,000 meals to 500 people at 5 different locations.”

Step One: Talk about One Person

Telling the story of one person moves the heart more than citing large numbers. Research has proved this again and again. So, forget those 500 people. Talk about one person, and perhaps her family. Who is this person who ate your meals? What can you tell your donors that will help them get to know her?

Example: “Maria and Joe moved to this community ten years ago to take care of Maria’s elderly mom, who needed help paying her bills and even remembering to take her medication. Joe is the friendly face behind the wheel of the Route 89 bus every morning. Maria is trained as a nurse’s aide, and she puts those skills to work taking care of her mom and her two daughters who have been born in our town.”

Step Two: Show the Challenge That Person is Facing

What changed so that your one person and her family need help? What would life be like for them without that food your donor is providing?

“In the ten years they have lived here, the cost of renting a small two-bedroom apartment has gone up and up. Joe’s wages have not increased at all. Any time they have an unexpected expense–a child who needs to see the doctor, or a new walker to help Maria’s mom get from her bedroom to her front door–then that month, they run out of food. Without the help that you provide, Maria and Joe would go hungry to feed their daughters. And there still might not be enough to go around.”

Step Three: Explain How the Donor is Helping That Person Succeed

How has getting the food for free changed Maria’s life, and her husband and children’s lives? What difference does a donation make, in tangible terms?

“Because you cared about Maria and Joe and donated to this agency, their two girls go to school every day well-fed and ready to learn. Joe doesn’t have to be an absentee parent, working extra shifts. He can drive his bus and come home to his family. Maria doesn’t have to worry about being too faint from hunger, and she can give her loving attention to her mother’s needs.”

 

You can turn any statistic into a story if you are prepared. Make sure you give yourself enough time to collect stories and bank them so you can use whenever you need them. And remember to make the donor the hero of the story. When you tell donors a tale of what happens “because of you,” you will touch the heart and move donors to give.

 

 

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Donor Retention Helps You Find New Donors Too

August 16, 2016 by Dennis Fischman Leave a Comment

If you have to put your time and energy into finding new donors OR renewing the donors you have, choose donor retention.

donor retention

Don’t just take it from me. “The old growth model is acquiring more new donors than we lose,” says Josh Whichard, a partner at Washington, D.C.’s DonorVoice. The old model, said Whichard, is like a leaky bucket, but one with more water and fewer holes. The new model is to plug more of those holes and need less water. In other words, renew your donors.

Why is it better to renew than to acquire? Lynne Wester of Donor Relations Guru Consulting points out that it’s “7 times more expensive to obtain a new donor than it is to keep the one you have.” Renewing one donor is as good as finding seven new ones!

And Kivi Leroux Miller, one of the leaders in the nonprofit field, tells us that nonprofits have to focus on retention to thrive in the long term, and she adds, “I certainly hope we will see retention grow as a priority in coming years.”

When You DO Need New Donors

Sometimes, though, you just can’t do without new donors. Maybe you’re a new nonprofit, starting out with a small circle of friends. On the other hand, you could be an old organization whose loyal supporters are aging out.

And no matter how many leaks you fix, some donors will always be one-time donors (like the majority of the people who give in honor or in memory of a friend). You need to replace the dollars they give, either by getting your existing donors to give more, or by acquiring new donors.

How do you do find new donors when you need them?

Communication is Key

In the for-profit world, companies are facing an uncomfortable fact. “Experts everywhere proclaim that people are 60% or more of the way through their decision process before they contact you or your company,” says sales maven Jill Konrath.

Nonprofits are in the same boat. Donors today do their research. They look up their favorite causes online, and they check out what you have to say about your organization–and what others say about you–before you ever hear from them.

So, if you want to find new donors, mostly they have to find you first! And when they find you online, they have to like what they see, or they will choose some other organization before you ever send them an email or a newsletter, much less an “ask.”

So, you will need to:

  • Create marketing personas, or profiles of your hoped-for donors
  • Use your communications channels to answer a question or solve a problem that’s bothering them right now
  • Tell memorable stories that move them
  • Make them feel as if you read their mind and knew what they wanted to hear

Introducing You

donors introduce friendsBut the best way you can acquire new donors is by having your loyal year-after-year donors introduce you!

Yes, we’re back to the importance of donor retention. Even for getting new donors, it’s vital to renew  your support from the people who have given to you already.

Think of it this way: Before they will give to you, people have to know you, like what you do, and trust you with their money.  What helps a person get to know, like, and trust your organization more than the word of a mutual friend?

Ways Your Donors Can Introduce You

  1. In person. Ask a thoroughly committed donor to set up a lunch date with one of their friends, to introduce the organization.
  2. Forward an email. Your donor can pass along your message with one of their own, “Kathy, I thought you’d want to read this because…”
  3. Share a post on social media. Again, it helps if they personalize it.
  4. Direct people to your website for timely, topical information.
  5. Just talk about you! “John, did you know that I’m involved with [your organization’s name here]? And I’m excited about it!”

If you don’t think your most loyal supporters will be happy and proud to introduce you to their friends, then your organization is a leaky bucket–and you may need to spend more time renewing your donor support instead!

But you may be underestimating the loyalty of your existing donors. Ask them. You have nothing to lose, and you may have a whole world of new supporters to win. Who are you going to ask for an introduction, today?

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