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Fundraising Tuesday: Tell Stories to Funders AND Donors

May 21, 2019 by Dennis Fischman Leave a Comment

I heard this advice a lot when I was a Development Director: “Don’t let your grantwriter write your appeals to donors.”

Why? Supposedly, foundations and donors are two different species.

Foundations have deadlines. Donors give on impulse.

Foundations check to see if you meet their written requirements: what questions you have to answer for them, in how many words, with what documentation attached.

Donors spend three seconds looking at your letter before they decide whether to read it or throw it in the recycling bin.

It was well-meaning advice. But maybe it was wrong.

different species

Different species can love the same thing

The best advice might have been to let a storyteller work on both.

What Storytelling Does for Funders

Pamela Grow, the dean of direct mail fundraising for small nonprofits, remembers when she worked at a foundation. After reading thousands of proposals, there was one applicant she looked forward to hearing from every time.

It was the one who told her stories.

Edith was the impassioned founder of her organization, a faith-based nonprofit serving women and children.  Every grant proposal from their organization featured dynamic stories of their clients’ struggles, challenges, and most importantly, victories. Oftentimes, her stories read like magazine serials, and they really brought the organization’s mission to life.

“Remember Joan S?” Edith would write. “She’s now living in her own home, has regained custody of her children, and next June she’ll be graduating from college…”  

Pam tells us that the storytelling organization was funded for twice as long as the foundation’s guidelines allowed. (She can say that now, since she doesn’t work there any more!)

An Even Bigger Impact on Donors

Okay, so here is a major grantmaking foundation, with written guidelines and procedures, a competitive process, and a bureaucracy that included the President,  the Vice President of Administration, the Vice President of Programming, and the Vice President of Finance.

Those are supposed to be the hard heads at the foundation, the sticklers, the keepers of the gate.

And all of them wanted to read this particular grant application every time it came in. Because it told great stories.

The donors on your list aren’t professional funders. You don’t have to overcome their skepticism. You just have to touch their hearts.

It’s so simple: always tell stories to your donors. They’ll look forward to hearing from you, and they will give.

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Fundraising Tuesday: Nonprofits, Emphasize Donors

June 7, 2016 by Dennis Fischman 2 Comments

What your nonprofit organization can do depends on where it gets its money.

funding sources

How do your funders shape what you do?

So says Jon Pratt, executive director of the Minnesota Council of Nonprofits, in a classic article in the Nonprofit Quarterly.

“The way an organization handles decisions about funding sources sets in motion an ongoing chain of consequences, further decisions and compromises about what the organization will and will not agree to do.”

 

How Reliable is Your Funding?

Pratt tells us that generally you can judge how reliable your funding is by determining where it’s coming from.

Three levels of reliability:
High reliability: United Way support, rental income, advertising, small-medium sized individual contributions, endowments, memberships.

Medium reliability: Ongoing government contracts, third-party reimbursements, major individual contributions, fees for services, corporate charitable contributions.

Low reliability: Government project grants, foundation grants, corporate sponsorships.

Unfortunately, in my experience, small nonprofits depend mostly on low-to-medium reliability funders. That’s why so many of us are constantly scrambling for new grants and contracts…even if it hurts our existing programs.

How Much Freedom Does Your Funding Give You?

You can also judge how much freedom of action your funders are likely to give you.

Three levels of autonomy:
High autonomy: small-medium sized individual contributions, endowment, memberships, fees for services, foundation operating grants.

Medium autonomy: major individual contributions, corporate charitable contributions,

Low autonomy: Third party reimbursements, government project grants, ongoing government contracts, foundation project grants, United Way support.

Again, I think it’s unfortunate that even fairly large community organizations have to depend so much on  low-to-medium autonomy funding sources.  That’s why so many of us spend so much time on compliance and reporting–and when we want to start something new, it’s why we have to work extra hours to do it.  We can’t pay for new programs with restricted funds.

One Key Takeaway:

Individual contributions are highly reliable AND they provide a high degree of autonomy.  They’re the best of both worlds.

Nonprofits should be spending more time and money cultivating individual donors.  That means we need to invest more in communications with our supporters: in person, by mail, by email, and through social media.

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Do Your Donors Want Poetry or Prose?

December 15, 2015 by Dennis Fischman Leave a Comment

How should you raise money for your cause? Write grant proposals, send out appeal letters, hold events, use crowdfunding?

It depends whether your donors want poetry or prose.

My Book of Days cover

Raising funds with words that sing

My late brother Ron Fischman needed money. He had commissioned artist Debora Alanna to produce the beautiful cover illustration for his new volume of poems, My Book of Days–and he had to pay her for her work.

Ron set up a crowdfunding campaign on Pubslush. He went on to do all the things that would draw people in and make them feel they were doing something good.

  • He showed people the art they’d be supporting
  • He gave them several tastes of what the book was all about.
  • He made it personal. Debora “prepared [this cover art] out of faith that my friends, colleagues, Jewish and poetic worlds would make this campaign successful.”

Ron also offered premiums that would appeal to exactly the kind of person who would support his book.

And it worked! The crowdfunding campaign raised enough money to pay the artist, send out the premiums, and do a tiny bit of additional promotion besides.  (By the way, you can order a copy of Ron’s book if you wish. Just click this link.

Raising funds with ideas that matter

Ron needed less than a thousand dollars to make his dream come true, and he had something tangible to show as a result. His cause was made for crowdfunding.

Others, not so much.

My friend and colleague Robin Carton of Kayak Consulting Group was trying to raise money for a group that makes small, progressive organizations all over the Boston area smarter and stronger.

Her client wanted to send a direct mail fundraising appeal to the people who support those organizations.  The catch? They had no money for direct mail in their budget.

Can you imagine going public with the plea “Give us money so we can send out letters to raise more money?”  No, I can’t either!

Robin and I agreed that her client’s best bet was to submit grant proposals to foundations and businesses. Foundations have concepts for what her client does: “capacity building,” and “combined impact.”  Businesses understand “marketing’ and “return on investment.”

The language may not sing, but it may convince. And if they’re successful, Robin and her client will attract a lot more than a thousand dollars.

When you think about how to raise money for your cause, consider it a communications question.  Do the people you want to support you think in poetry or prose?

 

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