A New Year resolution could be to explore payroll giving. In New Zealand payrollgiving has been an employer opportunity for a couple of years but it hasn't reached the heights you might expect. More information on how it works are available from the inland revenue, Philanthropy New Zealand (generosity project),Charities Commission and various other official bodies.
The Inland Revenue keeps a track of the amount donated since the scheme started. However the scheme is a little more complicated than the several lines of enabling legislation would have us believe.
Firstly the scheme is purely voluntary on the part of employers, and this is first of all an employer scheme. Not an employee choice. If the employer is not interested, then that's the end of it. The second issue is that most significant employers use some brand of payroll software. If the software is not configured for the option of payroll giving, then it isn't going to happen. And thirdly the payroll officer of the company needs to be supportive because this is a job that they have to administer, and they may not want further workload. Nearly at the end folks. If all those other factors are positive, then the staff themselves have to be interested. They are the ones having their donations taken out of their payroll. Finally a word about the charities themselves. Some are resistant to encouraging payroll giving because they fear the loss of control. Their regular donors are in their sphere of influence. They know their names, and they know what they like. Payroll donors are probably anonymous. The charity has no means for communication unless the donor lets them know who they are. If they change jobs, the charity has no means to follow them.
So where does this leave us?
The actions are:
persuade employees to talk to their employers
make it easy for employers to choose charities
ask all payroll software companies to enable payroll giving
present a united front to the key decision makers
remove complicated obstacles
mitigate the barriers and the objections
There is only one player representing the charitable sector - the Payroll Giving Foundation. Other participants represent or advocate for the employers - the early adopters group.
So if you want to make payroll giving an opportunity for your organisation, take a look at the Payroll Giving Foundation or give me a call.
Saturday, January 7, 2012
Friday, January 6, 2012
Complaints, good news or bad?
Complaints, good news or bad news?
The fear of fundraising is often about the possibility of complaints. People are afraid of complaints, often because of their personal perceptions, and they forget that they are not the target audience of their communication activities.
Let's talk about a complaint and see it as a good thing, rather than a bad thing. First of all, someone who takes the trouble to phone you is actually your number one fan. They have read your communications. They have pondered the request and then they take time from their day to respond. If they didn't care, they wouldn't respond. The phone call proves they care about your organisation and want you to receive feedback about your activities. A complaint therefore is your number one way of having a dialogue with your most ardent supporters. Take the time to respond in a positive manner and then do something to action their complaint. Make sure you record the call on your database and that you diarise to follow up. Check their giving history following the complaint. Did they actually stop donating or did they actually donate more after your conversation?
A more positive way of looking at complaints is to see them as feedback or critique. Take them as something to celebrate. They read your communications after all! Make sure you take some action and follow it up. Respond to them in writing or by calling back a few days after the initial call. Next time you are sending out a communication, forewarn them and actively seek their feedback.
And whatever you do, use the opportunity to review their database entry. Double check their details. Make sure nothing is incorrect. Record your follow up actions and do them.
The fear of fundraising is often about the possibility of complaints. People are afraid of complaints, often because of their personal perceptions, and they forget that they are not the target audience of their communication activities.
Let's talk about a complaint and see it as a good thing, rather than a bad thing. First of all, someone who takes the trouble to phone you is actually your number one fan. They have read your communications. They have pondered the request and then they take time from their day to respond. If they didn't care, they wouldn't respond. The phone call proves they care about your organisation and want you to receive feedback about your activities. A complaint therefore is your number one way of having a dialogue with your most ardent supporters. Take the time to respond in a positive manner and then do something to action their complaint. Make sure you record the call on your database and that you diarise to follow up. Check their giving history following the complaint. Did they actually stop donating or did they actually donate more after your conversation?
A more positive way of looking at complaints is to see them as feedback or critique. Take them as something to celebrate. They read your communications after all! Make sure you take some action and follow it up. Respond to them in writing or by calling back a few days after the initial call. Next time you are sending out a communication, forewarn them and actively seek their feedback.
And whatever you do, use the opportunity to review their database entry. Double check their details. Make sure nothing is incorrect. Record your follow up actions and do them.
Thursday, January 5, 2012
Thanking you!
The power of the thank you.
There's no doubt we need to build relationships with donors but how much effort do we put into the thanking process? In our direct mail campaigns we thank supporters for their donation along with the receipting process.But what about on line donations and regular givers? How do you thank the donor and how often?
At a conference last year I heard a very captivating presentation from Chuck Longford, Blackbaud's Chief Scientist. Chuck is the company's database wizard and so can prove anything he says.
Chuck reported on a couple of experiments undertaken by charities. The concept is simple. Get volunteers on the phone thanking first time donors for their first gift and guess what happens? In year two the donations from those who had been called increased by about 25 percent.
That's an exciting result isn't it? Wow, you'd think we would have already tried it wouldn't you? Well we probably have tried it but perhaps we haven't done so systematically. Perhaps our database isn't good enough to measure the results. Perhaps we haven't shared this knowledge with our colleagues. Perhaps we haven't been around long enough to measure a campaign from one year to the next. Perhaps we aren't putting enough resources into relationship management! Perhaps we are more concerned with the numbers than with the people.
If you are looking to improve your fundraising results with very little financial input, try doing this experiment for yourself. And for the sake of someone coming in after you, test and measure everything!
There's no doubt we need to build relationships with donors but how much effort do we put into the thanking process? In our direct mail campaigns we thank supporters for their donation along with the receipting process.But what about on line donations and regular givers? How do you thank the donor and how often?
At a conference last year I heard a very captivating presentation from Chuck Longford, Blackbaud's Chief Scientist. Chuck is the company's database wizard and so can prove anything he says.
Chuck reported on a couple of experiments undertaken by charities. The concept is simple. Get volunteers on the phone thanking first time donors for their first gift and guess what happens? In year two the donations from those who had been called increased by about 25 percent.
That's an exciting result isn't it? Wow, you'd think we would have already tried it wouldn't you? Well we probably have tried it but perhaps we haven't done so systematically. Perhaps our database isn't good enough to measure the results. Perhaps we haven't shared this knowledge with our colleagues. Perhaps we haven't been around long enough to measure a campaign from one year to the next. Perhaps we aren't putting enough resources into relationship management! Perhaps we are more concerned with the numbers than with the people.
If you are looking to improve your fundraising results with very little financial input, try doing this experiment for yourself. And for the sake of someone coming in after you, test and measure everything!
Wednesday, January 4, 2012
Bequests, what to do with them
Bequests were in the news over the holidays. A well known and loved charity was concerned that over the last three years it had received less bequest income. I checked the figures to check whether this was a universal phenomena and it isn't. Bequest income has actually increased over the last three years.
However that wasn't what I wanted to comment on. It's about what you do with bequests that I think is worthy of comment. For many organisations the thought of receiving a bequest is a pipe dream yet it's probably one of the easiest fundraising tools to get started. You simply have to change your will to include a bequest then talk to your board members and supporters about why you have taken such a step. Easy, peasy.
But while you are getting that sorted out, you need to make a decision about how you will use the bequest money. There are two options. One is that you will use it to supplement your annual income. In other words spend it today. Otherwise you might establish an endowment fund which maintains its capital to generate income. Once you get to this point you are truly a sustainable organisation! Oops, Sorry, to get diverted. Back to the endowment fund! Personally I believe that an endowment fund would be attractive to your potential donors. Better that their support for you can continue to provide assistance over many years, than to be used up in one or two years. This doesn't mean that endowment funds can't ever be used. Your policy would probably determine what constitutes an emergency situation. A bequest is a legacy gift so it makes sense to keep it as a legacy.
Another issue for your bequest policy is donor recognition. I'm in the camp that says celebrate the gift while the person is around to appreciate it. You won't know for sure that someone has left you a legacy until their death but in the meantime you can presume that if they tell you they've done it, they probably have. Once you know they are making a bequest, you must do something with the information. You really only have one shot at this because if you miss the mark, the donor will go somewhere else.
However that wasn't what I wanted to comment on. It's about what you do with bequests that I think is worthy of comment. For many organisations the thought of receiving a bequest is a pipe dream yet it's probably one of the easiest fundraising tools to get started. You simply have to change your will to include a bequest then talk to your board members and supporters about why you have taken such a step. Easy, peasy.
But while you are getting that sorted out, you need to make a decision about how you will use the bequest money. There are two options. One is that you will use it to supplement your annual income. In other words spend it today. Otherwise you might establish an endowment fund which maintains its capital to generate income. Once you get to this point you are truly a sustainable organisation! Oops, Sorry, to get diverted. Back to the endowment fund! Personally I believe that an endowment fund would be attractive to your potential donors. Better that their support for you can continue to provide assistance over many years, than to be used up in one or two years. This doesn't mean that endowment funds can't ever be used. Your policy would probably determine what constitutes an emergency situation. A bequest is a legacy gift so it makes sense to keep it as a legacy.
Another issue for your bequest policy is donor recognition. I'm in the camp that says celebrate the gift while the person is around to appreciate it. You won't know for sure that someone has left you a legacy until their death but in the meantime you can presume that if they tell you they've done it, they probably have. Once you know they are making a bequest, you must do something with the information. You really only have one shot at this because if you miss the mark, the donor will go somewhere else.
Tuesday, January 3, 2012
Fundraising Gimmicks and new ideas
New Ideas and Fundraising Gimmicks
For the uninitiated, fundraising seems to be about gimmicks. For many there is presumption that somewhere out there is a new idea that will raise millions, preferably without the organisation itself having to spend a penny. In general the same people looking for the gimmick will also be looking for a freebie. Not only will they ask for the consultant to work on commission, but if the consultant is successful they will still complain about the size of the commission. Accept these types of job and you are on hiding to nothing.
A couple of years ago I was invited to meet with a CEO who wanted to raise a significant amount of money for a capital purchase. I explained the process of capital fundraising and suggested that the starting point was to grow the database of supporters and to communicate the need. The organisation had a clear target market so I suggested some face to face sign ups at an enormously well attended special event. The most significant costs would be securing a display stand at the event, some publicity material and the employment of one or two key people to direct the activity. Volunteers were available so it wasn't a huge human resource investment. The event was to be held six weeks into the future so it meant a quick decision was needed. And seeing as quick action was a requirement of the CEO I believed the solution was simple. Face to face asking is the preferred option.
Well we went backwards and forwards with meetings until I could stand it no longer, nor could my pocket. I'm happy to present ideas and discuss solutions with the client before charging but after meeting number three and missing the deadline for booking into the event, I realised that the job was turning into the impossible.
In exasperation I asked what was the problem with the strategy. "I want something different" he said in a plaintiff voice.It suddenly dawned on me. He didn't want to pay my fees for something that seemed so simple and mundane. At that point I said "if you want the tried and tested way of fundraising, with no guarantees, but plenty of evidence of success, then I'm the right person to help you, but if you want something different, with no proven process, then find someone else to help you!"
Nowadays, before I start work with a client who has no experience or exposure to fundraising, I fully explain the process of fundraising to the board and CEO and ensure I have their commitment to that process before I sign a contract. I explain that my role is about establishing the process rather than finding the gimmick. It doesn't mean that creativity is not important. It certainly is. But it's not the starting point for developing a sustainable fundraising plan.
And by the way, commission work is a no, no. I'll write a blog on that one another day.
For the uninitiated, fundraising seems to be about gimmicks. For many there is presumption that somewhere out there is a new idea that will raise millions, preferably without the organisation itself having to spend a penny. In general the same people looking for the gimmick will also be looking for a freebie. Not only will they ask for the consultant to work on commission, but if the consultant is successful they will still complain about the size of the commission. Accept these types of job and you are on hiding to nothing.
A couple of years ago I was invited to meet with a CEO who wanted to raise a significant amount of money for a capital purchase. I explained the process of capital fundraising and suggested that the starting point was to grow the database of supporters and to communicate the need. The organisation had a clear target market so I suggested some face to face sign ups at an enormously well attended special event. The most significant costs would be securing a display stand at the event, some publicity material and the employment of one or two key people to direct the activity. Volunteers were available so it wasn't a huge human resource investment. The event was to be held six weeks into the future so it meant a quick decision was needed. And seeing as quick action was a requirement of the CEO I believed the solution was simple. Face to face asking is the preferred option.
Well we went backwards and forwards with meetings until I could stand it no longer, nor could my pocket. I'm happy to present ideas and discuss solutions with the client before charging but after meeting number three and missing the deadline for booking into the event, I realised that the job was turning into the impossible.
In exasperation I asked what was the problem with the strategy. "I want something different" he said in a plaintiff voice.It suddenly dawned on me. He didn't want to pay my fees for something that seemed so simple and mundane. At that point I said "if you want the tried and tested way of fundraising, with no guarantees, but plenty of evidence of success, then I'm the right person to help you, but if you want something different, with no proven process, then find someone else to help you!"
Nowadays, before I start work with a client who has no experience or exposure to fundraising, I fully explain the process of fundraising to the board and CEO and ensure I have their commitment to that process before I sign a contract. I explain that my role is about establishing the process rather than finding the gimmick. It doesn't mean that creativity is not important. It certainly is. But it's not the starting point for developing a sustainable fundraising plan.
And by the way, commission work is a no, no. I'll write a blog on that one another day.
Monday, January 2, 2012
Volunteers - Help or hindrance?
Coporate volunteering in particular has traditionally been associated with team building and that means the charity gets an offer of a group of volunteers, often for a day or even half a day. Sometimes this is offered on one particular day of the year. Many charities don't like to turn down an offer of help, but usually there is little strategic thinking about how to use the help. Physical activities ae the norm - grab a paintbrush, hammer a few nails. What else can you do with 20 or 30 people who don't know anything about you and what your mission really is?
My suggestion of a New Year's resolution is to be more strategic. At least be more proactive. Create a strategy around volunteering. Prepare yourself for the day when 20 people come knocking. Instead of waiting - get yourself in front of the banks, the financial companies etc who do this sort of thing and make your requirements known. Set up a challenging activity for volunteers. Think outside the box. Can your volunteers train you with their expertise? Could they fundraise on your behalf? Could they do something that you currently pay for? Could they do something in the community rather than at your office? Could they sell something? Could they organise an event? What about speed teaching, one on one with your own staff or your clients?
The secret is to make it fun and achieveable in a short period of time. Consider carefully what the corporate partner wants to get out of it. Make a pitch, well in advance of the date. Create a special event and give it a name. Fun and exciting is more attractive than hot and heavy tasks. Make it relevant to their expertise. Ensure that the volunteers will go away with some great memories they can share with friends.
From your perspective you want it to be a lasting relationship with mutual benefits for both parties.
Whatever you choose to do with your volunteers, make sure the thank you is sincere and that their work is appreciated by the CEO and board. Make sure you get their names for certificates of appreciation. Get them on your mailing lists. Take photos and send a picture and article to their corporate communications team. Write a media release for your local paper. Do something unexpected for them and they will come back next year.
Coporate volunteering in particular has traditionally been associated with team building and that means the charity gets an offer of a group of volunteers, often for a day or even half a day. Sometimes this is offered on one particular day of the year. Many charities don't like to turn down an offer of help, but usually there is little strategic thinking about how to use the help. Physical activities ae the norm - grab a paintbrush, hammer a few nails. What else can you do with 20 or 30 people who don't know anything about you and what your mission really is?
My suggestion of a New Year's resolution is to be more strategic. At least be more proactive. Create a strategy around volunteering. Prepare yourself for the day when 20 people come knocking. Instead of waiting - get yourself in front of the banks, the financial companies etc who do this sort of thing and make your requirements known. Set up a challenging activity for volunteers. Think outside the box. Can your volunteers train you with their expertise? Could they fundraise on your behalf? Could they do something that you currently pay for? Could they do something in the community rather than at your office? Could they sell something? Could they organise an event? What about speed teaching, one on one with your own staff or your clients?
The secret is to make it fun and achieveable in a short period of time. Consider carefully what the corporate partner wants to get out of it. Make a pitch, well in advance of the date. Create a special event and give it a name. Fun and exciting is more attractive than hot and heavy tasks. Make it relevant to their expertise. Ensure that the volunteers will go away with some great memories they can share with friends.
From your perspective you want it to be a lasting relationship with mutual benefits for both parties.
Whatever you choose to do with your volunteers, make sure the thank you is sincere and that their work is appreciated by the CEO and board. Make sure you get their names for certificates of appreciation. Get them on your mailing lists. Take photos and send a picture and article to their corporate communications team. Write a media release for your local paper. Do something unexpected for them and they will come back next year.
Sunday, January 1, 2012
What's in a name?
It may seem supremely obvious but getting someone's name right is the first step in building a relationship with them. Getting the name right isn't necessarily going to increase the size of their donation but getting it wrong will certainly impact on your fundraising success.
Checking details like the spelling of the name, the address, the postcode etc will pay dividends if you do it systematically. Every time you have someone on the phone, check their details, correct them if necessary and read back the changes to your supporter to confirm.
Don't presume that a simple sounding name is a given. I've seen all sorts of strange spellings for the simplest of names. You will also want to check preferred names. People change around their first and second names and many people claim to know when a list has been shared around - their real name features in the mailing address, not the preferred name. Watch out for shortened versions of names. Rod instead of Roderick for example. Double check with your supporter that this is the preferred version. I once worked with Dr Roderick Deane and everyone in the company knew that you should call him Roderick. When I see him named Rod in the media I cringe. Perhaps he's changed his mind, but I would certainly check if I had him on my database.
A simple way of checking is to google names but a quick phone call is highly desirable. It makes a great impression with your supporters if you show you're taking the time to call up. For new donors you are always going to phone to thank them (it increases their giving in year two!) so while you are on the phone, double check details and preferences.
Checking details like the spelling of the name, the address, the postcode etc will pay dividends if you do it systematically. Every time you have someone on the phone, check their details, correct them if necessary and read back the changes to your supporter to confirm.
Don't presume that a simple sounding name is a given. I've seen all sorts of strange spellings for the simplest of names. You will also want to check preferred names. People change around their first and second names and many people claim to know when a list has been shared around - their real name features in the mailing address, not the preferred name. Watch out for shortened versions of names. Rod instead of Roderick for example. Double check with your supporter that this is the preferred version. I once worked with Dr Roderick Deane and everyone in the company knew that you should call him Roderick. When I see him named Rod in the media I cringe. Perhaps he's changed his mind, but I would certainly check if I had him on my database.
A simple way of checking is to google names but a quick phone call is highly desirable. It makes a great impression with your supporters if you show you're taking the time to call up. For new donors you are always going to phone to thank them (it increases their giving in year two!) so while you are on the phone, double check details and preferences.
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