Are your funds going to stay the same?

Here's a new study from the 2011 Social Good Survey that suggests that donations to nonprofits next year will remain at 2011 levels.

I think many clients are not that optimistic - especially those who rely on private and public grants.  One client with 98% of funds from government agencies for its housing programs is just now beginning to think about other fundraising venues!

The survey, which polled nearly 2,500 people in the U.S. and U.K., found that 72% of U.K. respondents and 65% of U.S. respondents say they expect their 2012 giving will remain the same as last year. All respondents in the 2011 Social Good Survey were older than 18 and had given at least $10 to charity in 2011.

This is certainly not catastrophic news considering that nearly $300 billion dollars were donated to charity in 2010 (2011 numbers are unavailable but likely similar).

What’s most surprising is that despite the potential giving plateau, respondents acknowledged that non-profits were the most effective change-makers. Of those surveyed, 12% of U.K. respondents and 18% of U.S. respondents said they plan to give more in 2012.

The largest motivator for giving is still a personal connection. When asked what would inspire a donation, the two highest responses were “a cause they believed in” (44% in the U.K., 35% in the U.S.) and a personal connection to the organizations (24% in the U.K., 18% in the U.S.).

Less than half of the total respondents felt that non-profits and charities do a good job of spending funds and managing operations. However, the study showed that the more a person knew about the non-profit world, the more positive they were about the efficacy of non-profits.

Worlds Colliding

I love it when worlds collide, as George used to say on Seinfeld.

The two worlds are both related to higher education.  My son, who did not want to go to college after high school, attended community college. He was just accepted at a prestigious private university and I’m convinced it was the relationships he built with his professors that propelled him forward.

At his orientation, the welcome included advice from Making the Most of College by Professor Richard J. Light (Harvard University Press), based on a 10-year study of which factors were most likely to improve students’ learning and overall happiness.

• Get to know at least one faculty member reasonably well each semester, and get that faculty member to know you too. You’ll feel more connected to your school (and those letters of recommendation from faculty members will be helpful later on). For students at large schools or commuter campuses this may be more difficult, but it’s worth the effort. 

How can your student do this?  I suggest they visit each professor once or twice during office hours just to introduce themselves, show interest in the professor’s work, let them know a little about you and comment on the class. 

The second world emerged from the Texas Community College Teachers Association this week where I conducted a two-day workshop on relationship-building. It turns out that some of the colleges are working on professional development courses to help professors connect with students on a more personal basis to improve the rate of student success!

They are also using relationship-building skills to improve their networking with community and business leaders, to build consensus among their colleagues and peers in the state to initiate new programs.

Los Angeles feedback

I had a terrific time at The Center for Nonprofit Management's Executive Learning Program.  Working with these energetic and committed leaders is very rewarding.

What did they feel were their biggest lessons about relationship fundraising?

Here are some comments:

"These are timeless life skills. Relationships create safety and trust and build emotion. Fulfillment of your destiny does not come in a moment, a month or a year, but over a lifetime."

"Marshall taught me how to evaluate my communication style and how to adapt to connect with others. I like to direct.  Now, I'll tune into the others' style and communicate in the way they need."

"Just like the rest of our lives, life is all about relationships and now it's clear that in the nonprofit world, it's all about relationships! Learn to take time to build relationships, not because we want something, but it's the proper thing to do.

"I will get together with my Board and others just to know them better personally and for enjoyment!"

Thanks students, I couldn't have said it better myself!

Take the pressure off your fundraising

I always like to hear how my readers use relationship-building techniques.  One of the Boy Scouts of  America development teams is using "Let's Have Lunch" principles to establish stronger connections in their community. 

Here's what one of the development pros said of their new approach (building relationships). "It's liberating--I no longer feel pressure to walk out of first-time meetings with prospects with a tangible commitment for something. Instead, our focus now is to establish and build relationships, then engage the person meaningfully in the organization."

That's a great attitude.  It is definitely a longer-term view but one that has much richer rewards.  This approach will raise more money and, by forging a meaningful relationship, the donor will  help them reach out to a bigger community of support.

Making yourself a person before having to become a fundraiser - a lesson

We can all learn about connecting emotionally from Chris Christie, New Jersey’s Governor, who is a master of this art. Whether you agree with him politically or not, Andy Goodman of Free Range Thinking says Christie makes himself likeable by connecting emotionally, being a person first and telling stories about himself.

Here’s what we can learn: ‘ Human beings respond emotionally to incoming information even before their brains are fully engaged. If our emotions are negative (e.g., anger, distrust, fear), our brains will find ways to ignore or discount the incoming information. In short: we believe what we want to believe regardless of facts.’

New York Times political columnist Matt Bai wrote, “. . . Christie understands this.  He knows that his message has to be grounded in the personal. ‘If you’re asking people to do some really difficult things. . . ’ Christie told me, ‘I think they feel more comfortable doing those things if they know you.’

“So Christie makes a point of sharing things about himself first . . .’I have an Irish father, and a Sicilian mother. In my house, my parents left nothing unsaid.’  With this, Christie becomes a person, before he has to be a politician.”

In my work to inspire, motivate and engage boards, volunteers and staff, I too begin by revealing details about my life. I show them how to professionally do this on the phone, through email or in person.  I want to see where our lives intersect and what common interests we might share.

To break down stereotypes that people might have about you before you meet, you need to become a person first before you become a fundraiser. Like Christie, do you have some signature statements or icebreakers that help you connect emotionally?  What stories can you tell to connect personally?

Contact me through www.marshallhoward.com and let me know what works for you.

A Small Change Makes a Big Difference

I've been reading the blog "A Small Change" for some time and think Jason Dick, a Redmond WA major gifts officer has a great style.  His blog is well-written, timely and has great advice.  I'm very flattered he wrote the following about my book: 

"It was probably the best fundraising book that I’ve read in the last couple of years. The book is written in such a way that it benefits both the beginning and seasoned fundraisers," he wrote.  "I am a big fan of checklists that I need to do to be successful. Marshall has done a great job creating some great checklists with tools we can use to build relationships"  Check out Jason's blog. I'm a fan of his!

Six Relationship Secrets to Easily Raise Money for Your Charity

In addition to being the title of my new DVD training series, this is the title of a blog by Kristen Schultz of Crescendo Interactive.  We had a great conversation and this is what resulted!

I spoke this week with Marshall Howard, philanthropic trainer and author of “Let's Have Lunch Together.” Marshall recently released a training series entitled “Six Secrets to Easily Raise Money.” I asked him to share with me his vision of how charities can become more effective at raising gifts.

Marshall said that one of the biggest secrets is that relationship emotion is the most powerful emotion (more powerful than mission emotion) for compelling gifts. People decide emotionally and justify logically about just about everything they do. And yet, when a charity wants a prospective donor to help, they often become logical and informational rather than relational. Consequently, charities may struggle to connect emotionally with people because they are so focused on mission, as opposed to cultivating the donor relationship.

Over 75% of people who attend fundraising events are there because they cannot say no to the asker. Most of these persons have no relationship to the hosting organization, but they have a relationship with the person who made the “ask.” Facebook Founder Mark Zuckerberg made his $100 million contribution to Newark schools because he built a relationship with Newark Mayor Cory Booker. Zuckerberg reportedly had never stepped foot in a Newark school prior to the gift. Similarly, Warren Buffet gave $37 billion to the Gates Foundation because of his relationship with Bill and Melinda Gates.

Here are some of the take aways from Marshall on building relationships:

• First comes the relationship and then the charity’s mission message will be heard.

• You can build relationships in many ways – in person, on the phone or even by e-mail.

• Relationships are a repeatable, measureable process. The ability to measure a person’s relationship means you can better measure “when” to make the “ask.”

• If you can build the relationship, you will be able to discover a person’s resources and community and know “what” to ask for.

When you think of a relationship as a series of positive emotional connections between two people that produces trust, Marshall says that trust opens a huge door for giving. Where there is trust, the message about the organization and the “ask” is very different and the person will listen and evaluate it in light of their relationship with the “asker.”

 

To learn more of Marshall’s secrets visit http://www.marshallhoward.com/. For new ways to multiply your donor relationships through eMarketing visit http://www.giftlegacy.com/ or call 1-800-858-9154.  For more of Kristen's blogs, visit http://kristenschultz.blogspot.com/

Buzzwords

I love this - talk about the new buzzwords!

How is your philanthrospeak?

Here is a list from Lucy Bernholz of "10 Favorite Buzzwords of the Decade" in a recent opinion article in The Chronicle of Philanthropy.  Bernholz explains that, "looked at over time, buzzwords provide a useful rear-view roadmap of how we got here." .   

Here are seven of the 10 she selected with my comments below her list and glossary.

10) Donate-now buttons: Making a charitable contribution with just the click of a button

9) Prize philanthropy: Cash prizes offered for solutions to social problems

                Pepsi anyone?

8) Celebvocates: Celebrities who use their best asset - themselves - to promote charitable causes

                Okay, I'm near Hollywood and this is a big business for some "managers." Of course, like anything      else, if it's heartfelt, using celebrity to  raise money or awareness can't be maligned.  LIke all other good things, this may go overboard and present a big backlash.

7) Microvolunteering: "The art of donating time in 20-minute increments"

6) Philanthrocapitalism: Earning gobs of money through business for the purpose of addressing social needs

                I am seeing more of this as social service agencies try to figure out how to address government shortfalls.  Many are talking about charging fees for services for the very first time.

5) B Corporation - A "business with a social purpose"

4) Impact investing - Investing to generate social as well as financial returns

Link to the article to read more and find out the top three "Favorite Buzzwords of the Decade."

From my friends at CNP Chattanooga, here are a few of our their favorite nonprofit buzzwords that didn't make the list:

1) "Silos" - The concept that some nonprofits may exist in tall, windowless "silos," oblivious to other nonprofits who offer similar services, versus "collaborating" (makes a nice visual, if nothing else!).

               My clients who work in silos often don't share department to department resources that they uncover that can benefit the organization as a whole.

  

2) "Double bottom line" -  The simultaneous pursuit of financial and social returns on investment - the ultimate benchmark for a social enterprise or a social sector business

3) "New Normal" - Was there ever really an "Old Normal?" Anyway, we hear this one a lot, as in nonprofits must adapt to the "new normal," i.e. the realities of decreased funding and increased competition for donations.

                I agree - what was the Old Normal?  The economy is always a roller coaster if you take the long view. 

Do you have any favorite buzzwords to add?

Creating linkages

I do not often Google myself but my book has recently gotten a lot of press so I did.  Here's comment from a blogger that's still relevant now!

Donations Down

December 3, 2008 by eurlog- Bruce Logue, church planter, Merced, California

It was in the newspaper on Monday.  Contributions to non-profits are down because of the economy.  That is not good news if you are a non-profit and exist on the largesse of others.

I just attended a workshop on the subject of building relationships that will, in turn, result in a strong financial base.  Let’s Have Lunch Together was written by Marshall Howard who was the workshop presenter.

Marshall is right; philanthropists get weary with continued requests for money.  Give to this.  Give to that.  At some point they want to have a personal connection with the organization/s they assist—to be treated as something more than a paycheck.  That sort of involvement takes time.

Which as been making me ask the question, “How do I go about making people interested in LifeSpring Church feel really connected to it in a way that transcends their financial contribution?” 

I was reminded of the importance of that question recently when I got a fundraising letter from a friend.  Even though I know him, I don’t feel particularly connected to what he is doing.  So he has a problem; if he wants me to give to him, he must create a tighter linkage between me and his project.

The temptation is to spend my time fussing with things that make little difference in the long-term picture.  The key to successful funding is building sincere and effective partnerships.  There is no way to make a shortcut of that.

Advice to be more emotional

Here's a tip from Andy Goodman of Free Range Thinking.


He made a number of resolutions for 2011 and this one is a fundamental that I include in my relationship training.

"I resolve to be more emotional.
Don't get me wrong: I'm not suggesting you burst into tears like John Boehner every time you get in front of a microphone - nobody wants to see that. Just be more mindful of the fact that human beings are emotional creatures, and no matter how dispassionate we may pretend to be, our emotions are always in play, especially when we make decisions. A rational case supported by rigorously collected data may be entirely accurate, but it only speaks to half of the brain. If the other half is thinking, "I don't like his tone of voice," or "The other presenter made me cry," your audience may already have their minds made up against you. So keep collecting the data, but when it's your turn to talk, make sure you connect with your audience's emotions as well. "

Thanks Andy. You have to touch people (and not just with your mission).  You have to reach them emotionally to engage them to trust you and then they will listen to your message.