First we’re told that the size of the gift is confidential.  OK, that’s not all that unusual.  The donor couple is identified by name.  Then we’re told that the gift is a bequest-expectancy—that is, the donor couple is still living.  As a result, there is no timetable for the new building and no planning—including municipal approvals and environmental studies—anticipated in the near future.

The institution has pinned its plans on a new library on a gift that may—or may not—ever materialize, at least from this gift.  Bequests can be revoked at any time.  Upon the couples’ passing it’s an open question whether there will even be assets available to fund the bequest.  Finally, as there is no date of construction or plans for the new facility, there is no cost estimate for what will really be needed.

This institution is currently in the midst of a capital campaign.  Presumably, this gift was announced now to motivate others to be generous.  One can only hope that the substantial future of the college isn’t being entrusted to other “gifts” that are of indeterminate date, indeterminate size and indeterminate certainty.

Larry C. Johnson
TheEightPrinciples.com

Care less? Are you kidding? But the world is in dire straits and needs our programs and solutions, pronto. Maybe—maybe not. That really isn’t the question. Donors give out of deeply held values and beliefs—at least the donors that keep on giving. They want to know that their beliefs are being acted upon. They want to be partners in your cause—in your success. They really are not interested in your programs or your machine.

If you can give your investors a sense of shared victory of being intimately involved in a shared struggle of heroic proportions, you’re on your way to sustainable fundraising success.

Larry C Johnson
TheEightPrincples.com

We offer our donors the realization of their most deeply held beliefs and desires.  That is something that cannot be bought or sold.

As you build your fundraising program, make a key objective that you will also give more to donors than you receive from them.  If you do so, you will discover that your donors will always be there when you need them.

Larry C. Johnson
TheEightPrinciples.com

Most donors—and I believe I am fairly typical in this regard given the research—really want to be asked to give.  Conversely, they don’t like being over-asked and asked in inappropriate ways.

There is a particular organization—one that I have supported in the past and genuinely believe in their mission—that regularly annoys me with their “fire hose” approach to solicitation.  I am annoyed for several reasons.  First, the sheer volume of the direct mail I receive from this organization is staggering.  There are times when I receive as many as five solicitations in one month.  I can only wonder what that costs.  Second, there is apparently no attempt to discriminate in their mailings or tailor to them to me—a sometimes regular donor with above average interest.  Thirdly, when I am solicited by this organization there is absolutely no tie-in or recognition of my past support. 

Despite all of this, the organization continues to raise money; although I’m sure not as much as they could were they to approach their donors differently.  The organization has a strong, compelling case.  Apparently, the decision makers at the organization believe that the urgency and gravity of their case outweighs any genuine consideration of their donors.  This is truly short sighted as well as not a little insulting to those of us on the receiving end.

The result is a virtual flood of solicitations that are timed to the organization’s perception of need rather than the donor’s inclination to invest.  I’ve actually received two or three additional solicitations after I’ve made a gift BEFORE that gift was acknowledged.  Oh, and by the way, they ALWAYS include another solicitation with any thank-you I receive.  Some never learn.

Larry C Johnson
TheEightPrinciples.com

Successful nonprofit organizations—those who achieve renewable, expanding fundraising success year after year—have discovered that it’s not about this or that, it’s about all of it.  Huh?  Being successful in fundraising—sustainable over the long-haul—is not about doing this strategy or that technique.  It’s about the synergy achieved by doing the countless little activities that, taken together, create the fundraising machine.  Such an undertaking takes consistent effort, ongoing financial investment and not a little patience.

It seems a day doesn’t pass that fundraisers don’t see in their email in-boxes another technique or strategy for successful fundraising.  Many—if not most—of these tidbits and suggestions have merit.  So, why is it that implementing these doesn’t seem to translate into lasting revenue growth and stability?

Successful nonprofit organizations—those who achieve renewable, expanding fundraising success year after year—have discovered that it’s not about this or that, it’s about all of it.  Huh?  Being successful in fundraising—sustainable over the long-haul—is not about doing this strategy or that technique.  It’s about the synergy achieved by doing the countless little activities that, taken together, create the fundraising machine.  Such an undertaking takes consistent effort, ongoing financial investment and not a little patience.

Many nonprofits simply don’t have the stomach for this sort of approach.  Those organizations are always focused on the immediate—today’s mail.  Unfortunately that is never where success lies, unless you win the lottery.

Larry C. Johnson
TheEightPrinciples.com

Those of us who have been in the fundraising profession for a while know that the most expensive donor—that is costly to the organization—is the new donor.  Many times the initial cost of acquiring a new donor is as much as or more than the initial gift received from that donor.

The rise of social media and the use of “friend” as a verb have led many nonprofits to believe that the cost of acquiring a new donor is becoming much less—even zero.  So the organization—thinking the cost is zero—puts most or all of their efforts into acquiring these new “cost-free” donors.  Therein lies the rub.

Yes, the internet has transformed the way we can communicate with our donors—even our friends.  It has dramatically reduced the cost of make that initial contact.  The rules of human nature still apply, however.  Relationships grow over time and through consistent, genuine interaction.  Getting large numbers of new donors to text you with a single gift or “like” your page will do just that—and nothing more.

The donors that provide renewable, expanding support are those you develop over time, whatever method you use.

Larry C. Johnson
www.TheEightPrinciples.com

I’m sure you heard it said—or perhaps you’ve said it yourself—that organizations that raise lots of money do so because they have lots of money.  This is true—but not exclusively.  For it to be so, begs the question of how they got to be “rich” in the first place.

The organizations that have healthy fundraising totals each year achieve these numbers because they have adopted the right paradigm toward their fundraising; and they have done so from the very beginning of their existence.  These organizations have taken the perspective that fundraising is investing.  Getting donors to invest takes time, both an initial and ongoing financial investment and consistency of effort.  Starting off modestly, these organizations have chosen to never see their fundraising as cash-in, cash-out.  They have been willing to put financial resources into a fundraising effort that measures success in years, not months.  As a result of the consistency of effort, these organizations have grown and expanded their donor bases and fundraising totals into an effort that truly has its own synergy and momentum.

Recently, USC announced that it is embarking upon the largest campaign in the history of American higher education–$6 billion.  To achieve this goal—at least five years away, they have undertaken a 100% expansion of their development staff—with its attendant costs—now.  This is nothing new for USC.  The university has always set bold goals for itself and then set out to achieve them.  It was the first to successfully break the billion-dollar barrier in a campaign.  It’s not about the billions, however.  It’s about the focus, determination and consistent investment—in time and financial resources—that have brought the university to this point.

So let it not be said that consistent, expanding fundraising success is only for the well funded and powerful.  It’s for any organization has the organizational courage and focus to obtain that status.

Larry C. Johnson
www.TheEightPrinciples.com

There are any numbers of charitable organizations that have lots of people “showing up” for service.  Although well-meaning, simply arriving and announcing, “I’m here” isn’t sufficient to add value.  I’ve met a sizable number of nonprofit board members that, unfortunately, do believe that their presence at a board meeting is enough.  For those organizations whose boards are principally composed with individuals of that mindset, the result is predictable.  No, the result isn’t over bounding success.  It’s something more like mediocrity.

“Showing up” is arriving emotionally engaged, and with support—yes financial—and also with skills that are critical to the organization.  It’s being focused on the essential board duties of advocacy, setting policy and fundraising.  Doing all this while going out of your way also helps.

The time has passed when effective board membership is simply showing up in body or lending your name and prestige.  Organizations are being judged by not by the glories in your past but by what can be expected from them in the future.  Leadership—the board—is the future.  How does your organization look from this vantage point?

Larry C. Johnson
Principal
M. E. Grace & Associates

Primarily at K-Mart stores, a number of individuals have arrived at the store inquiring about the availability of layaway accounts with up to a $250 remaining balance.  These individuals then offer to pay off or substantially pay down the balance—anonymously.  Usually, the donors inquire about accounts where the presence of small children seems to be a fair certainty.

When the account holders are notified that their balances are zero—or nearly so, the reaction is a mixture of astonishment and thankfulness.

Truly this is an example of the unbounded generosity of Americans.  With no tax incentive, professionally crafted solicitation or slick media campaign, these good citizens simply stepped up and did what they thought needed doing.

Perhaps you’ve already read some of these accounts.  If so, have you considered doing the same?  Admittedly, I didn’t think of this all on my own, but now that others have set the example I will making my own trip to pay off someone’s balance, and give a Merry Christmas to a family who’s not expecting it.

Merry Christmas to you and yours.

Larry C. Johnson
Principal
M. E. Grace & Associates

Fundraising scholarship estimates that if your organization could persuade 10 percent—just one tenth—of your new donors to give again your organization would increase its gifts by 200 percent. Yes, 200 percent.

The first-time donor presents an organization with a golden opportunity to build a meaningful philanthropic relationship. One that, over time, will yield greater and greater investments for the organization and returns for the donor.

Trouble is, many organizations treat first-timers like any others. You see, for some, the race is for money, not relationships.

Larry C. Johnson
Principal
M. E. Grace & Associates