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A Look at Post-COVID Fundraising for 2021

What is the outlook for post-COVID fundraising? There’s good news to share!

Giving is up – right now – across the board.

What’s more, the outlook for charitable giving in the next year or two is also looking very good. We predicted a number of positive trends for 2021, and are happy to see some come to fruition so soon.

Recent reports and studies are showing positive signs on the giving horizon.

First of all, here’s a look at recent trends from 2020.

Giving in 2020 was up significantly.

A report issued by the well-respected Fundraising Effectiveness Project (FEP) managed by the Association of Fundraising Professionals, showed that last year, overall charitable giving grew a whopping 10.6% in 2020 over 2019.  

This is really cause for celebration.

The Fundraising Effectiveness Project’s Growth in Giving database charts giving trends from 2,496 organizations that raise $100k – $10 million annually. Clearly this increase in giving was driven by donors reaching out to help those in economic hardship during the pandemic. But many charities of all types saw giving increases.

Small donors are back!

Some of the best news is that small donors, who provide much of the sustainable annual giving for many nonprofits, are returning. We’ve been very worried that small donor gifts had been declining over the past few years. Moreover, these smaller donors are the backbone of many nonprofit organizations’ financing.

Here’s the FEP data as reported by the Chronicle of Philanthropy:

Gifts of less than $250 grew by a total of 15.3% last year over 2019.

$250-$999 gifts increased by 8%.

Gifts of $1,000 or more grew by 10.4%.

But there’s worrisome news too: Donor retention plunged again to a low of 43.6%. (the lowest donor renewal rate since the FEP began tracking in 2004-05.) This means that less than half of the donors who gave in 2019 repeated their support by giving again in 2020.  

Donor loyalty continues to be one of the greatest challenges of many fundraising programs. Retention rates of new donors continue to decline.

Post-COVID fundraising outlook.

Looking ahead, there’s great news on the horizon. So, what can we expect from post-COVID fundraising?

Projections show an excellent outlook for fundraising in 2021 and 2022. The well-respected Lilly Family School of Philanthropy recently shared a report projecting total giving to rise 4.1% in 2021, and 5.7% in 2022.

When you look at individual giving, which supplies the majority of many organizations’ contributed revenue, the Lilly report forecasts a year-over-year rise of 6% in 2021.

This is great news for many nonprofits. 

Why the rosy forecasts for 2021 and 2022?

For decades we have seen giving levels follow the U.S. stock market. When the stock market rises, charitable giving also goes up. We find that when donors’ portfolios are growing robustly, then donors feel more wealthy. When your major donors are feeling wealthy, then their charitable gifts often increase. 

To quote the Lilly report:

“Individual and household giving is influenced by growth in the S&P 500, especially giving by those with median and higher levels of income. A large body of work demonstrates, with few exceptions, that as income and wealth increase, so do the amounts that households give to charity.”

Estate gifts are also projected to rise over the next couple of years.

This is, again, because of the robust stock market. It’s because the amount of an estate gift ultimately depends on the value of the estate’s assets. Many estates include substantial stock investments, which have appreciated nicely in the past few years. So any bequests your nonprofit is targeted to receive will be more highly valued than before.

The Lilly report bases its rosy outlook on several assumptions – namely that the economy will continue to stabilize and grow as people receive vaccinations and life begins to return to “normal.”

Ultra-high-net-worth gifts are also seeing an uptick right now, reports the Chronicle of Philanthropy. Billionaire William Ackman recently donated shares worth one billion, and other mega donors like Elon Musk recently made 9-figure gifts.

Bottom Line: Post-COVID fundraising outlook.

What does this robust forecast mean? It means take heart. Things are looking up. Keep a sense of optimism and possibility about your fundraising. You’ll likely see that your own donors are also primed to give. 

As always, it is a pleasure to share our weekly news and insights with you. 

If your organization is planning a capital campaign – we can help. We’re with our clients every step of the way, inspiring their teams and board, building confidence, driving action and measuring success. Send an email to coaching@gailperry.com if you’d like to schedule a strategy or consulting call with us.

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How to Start a Capital Campaign Plan: A Mistake-Proof Checklist

how to create a capital campaign plan planning preparation

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Many organizations are either planning a capital campaign, or thinking about one in the future.

It’s what happens early on in the capital campaign planning process that really lays the groundwork for success. This Checklist Tool will help you and your team evaluate how prepared you are for a capital campaign in the future.

In our work with clients to set up winning campaigns, we begin by evaluating their readiness based on these seven strategic areas.

It’s what you do ahead of time that makes all the difference in capital campaign planning.

Laying the groundwork for a successful capital campaign is like stacking the dominoes.  You take the time to carefully and strategically get organized, and line everything up.

Then, once the campaign begins, everything comes together quickly. Like the dominos, they all drop one after the other in perfect sequence.

Please know that very few organizations can say 100% YES to all these questions below. It’s the questions that you answer “maybe” that will point out your focus for the next few months.

This is a handy tool for the board and CEO to understand just how much additional preparation they need to do before moving forward with a capital campaign.

YOUR BOARD

In laying the groundwork, you want to prepare your board carefully for the campaign. You’ll want everyone to be in full agreement on the proposed plan and strategy to move ahead.

Can your board set the financial pace for a campaign?

Are your board members considered to be leaders in the community?

Is your board in full agreement on the proposed plan for a campaign?

Does your board have good fundraising connections?

Do your board members operate with business minded board practices?

Does your board have a good relationship with staff?

VOLUNTEER LEADERSHIP

Influential campaign volunteers can help your campaign gain credibility and momentum. If the right people are standing behind your initiative, then you can move forward quickly.

Do you have a history of influential people involved with your cause?

Can you enlist top leaders in your community who are well-known to help lead the capital campaign?

Do you have volunteer campaign leaders or campaign chairs already enlisted?

Can your volunteer leaders make major gifts to the campaign?

PROSPECTS

For a campaign to be successful, you’ll need donor prospects with leadership giving capacity. Run the numbers and evaluate your campaign prospect pool Your first step will be to renew and refresh your relationships with key funders and leadership donors.

Do you currently have a vigorous major gift program in place?

Do you think you have the donor prospects to reach your campaign goal? 

Are your donors well cultivated and involved?

Can you identify your leadership gifts up front?

Can you identify 15-20 potential sources of major campaign gifts right now?

DEVELOPMENT OFFICE and INFRASTRUCTURE

Often the factor that can make or break a campaign is the staff itself. You’ll want a strong, bold and experienced fundraising team that is highly motivated and raring to go.

Do you have experienced, capable staff?

Is the development office fully staffed now?

Is your administrative back office functioning smoothly?

Do you have a system for tracking pledges and policies for accepting gifts of stock and real estate?

Have you allocated funds to staff up and pay for campaign expenses? (the campaign will cost 8-10% of your overall dollar goal.)

Have you determined if you need outside expert guidance as Campaign Counsel?

YOUR PLAN/CASE

Make sure you lay out the need and justification for your campaign in plain, simple, and emotional language. Follow it up with supportive data.

Is the need well established, urgent and understood?

Do you have an updated strategic plan?

Do you have an updated master facilities plan with completed capital projections and budgets?

Can you convey the impact of your project in vivid emotional terms?

Do you have data to back up the need you are addressing in your case for support? 

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It’s important that your organization is well-respected in the community. For donors to make significant gifts, they need to have confidence in your leadership.

Is your organization well respected in the community, with a track record of success? 

Is there confidence in your organization and its leadership?

Are you communicating your results and your good work to the rest of your community?

Are you visible in the community?

TIMING

Clearly, you would like a positive economic environment to bolster your campaign. But don’t forget, you can still be successful even in uncertain times.

Is the fundraising environment good right now?

Are the economic conditions in your community good right now?

Bottom Line on Capital Campaign Planning.

If you have these conditions all set, then you are ready to embark on a capital campaign. 

If not, it’s time to get to work enlisting volunteers, identifying prospects, cultivating your prospective donors and sharpening up your case for support.

Let us know if we can help. We’re happy to provide a free strategy call to guide your capital campaign preparation and planning, anytime. 

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10 Fundraising Responsibilities of Every Board Member

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fundraising boards members fundraising | Gail Perry Group

What are the fundraising responsibilities of board members of a nonprofit organization?

Above all, board members carry the legal responsibility for the fiduciary care of their nonprofit. In that vein, it’s their responsibility to ensure that the organization has the funding it needs to carry out its mission.

Given that it is each board member’s job to support fundraising, here’s our list of fundraising activities that everyone on the board can help with. What’s more, these activities are easy, productive and fun.

1. Make a proud, personal annual gift.

Above all all else, board members have a moral duty to support the organization financially. It just shows that they are putting their money where their mouth is.

If board members (who hold the legal responsibility) don’t support the nonprofit financially, then why should anyone else?

The gift each person makes can be large or small. But it always needs to be a gift that each board member is personally proud of making.

Everyone needs to understand that, of all the fundraising responsibilities of board members, this is the most important.

2. Understand your organization’s fundraising program and strategies.

Many board members don’t understand how fundraising really works today.

Every organization has a different fundraising strategy. Some rely on events, others on grants or major donors to fund their mission.

As a board member, you need to understand your own organization’s specific fundraising program.

What’s more, you need to understand the profitability of various fundraising approaches. For example, why events are the least profitable way to raise money, and how seeking major gifts is the most effective and efficient way to fund your mission.

3. Help thank donors.

This is the easiest and most joyful fundraising job of all.  And, it’s one of the most important jobs a board member can do.

Why? Because when board members call or write donors to thank them, those donors will become more loyal. They are typically honored to receive a thank you from a board member.

Studies show that when board members thank donors promptly and personally, then future gifts from the donors who receive the call will rise as much as 39%. 

This is one of the most enjoyable, and easiest of all the fundraising responsibilities of board members.

4. Communicate with donors and tell them about your organization’s great work.

Clearly every board member needs to serve as a personal advocate for the cause.  You can share why you care about your organization’s work – with friends, on social media and everywhere you go.

As a board member, you need some interesting stories about your organization’s great impact in the community. Have a statistic or two that will get someone’s attention.

Ask for more training in messaging. It will help you spread the word in your community, gain more recognition for your nonprofit, and perhaps draw new donors to your work.

5. Help identify prospective donors and open the door with introductions.

When we ask nonprofit CEOs what they need most from their board members in fundraising, we usually hear only this:

“I just need my board members to open doors.”

And most board members would be happy to help. Often they just need a bit more training and support.

As a board member, it is your job to be on the lookout for possible new supporters. Look for opportunities to bring your friends in to volunteer, or attend an event or a tour.

You may be surprised: someone in your circle of friends may turn out to be passionately interested in your cause.

6. Help cultivate donors.

Many donors really do want to learn more about your organization’s work.

Remember, they often want to be involved and in the know. Donors would not be supporting the mission unless they were passionate and committed to your cause.

Board members can play a huge role in helping to bring donors closer. As a board member, you can host behind-the-scenes tours or small socials. You can also ask donors to share their personal stories about why they care about your work.

That’s the first step to a much larger donation.

7. Only when appropriate, ask for contributions.

Board members are great at some forms of asking.  They can:

  • Sell tickets and sponsorships for events.
  • Encourage their friends and colleagues to get involved and consider giving.
  • Ask current donors to renew or upgrade their gifts.

When it comes to major donors, however, the best role for board members is simply opening the door.

Master fundraisers take a slow, delicate approach to major donors. It’s important for board members to coordinate with staffers who are directing the overall strategy with key donors.

8. Support and encourage the fundraising team.

An acknowledged staff becomes a more productive staff.  Remember, nonprofit staffers are often working long hours for lower pay. They need the full support of board members for their work.

Board members can encourage not only the staff, but also their peer board members. Celebrate the fundraising team, and cheer them on.

When board members make fundraising important, everyone is more successful. And more dollars come in the door.

9. Ensure that fundraising has adequate resources and support.

When an organization invests in and fully staffs its fundraising operation, it raises much more funding  than organizations with poorly staffed and underfunded programs.

When fundraising is consistently staffed and funded – your organization enjoys long-term financial stability and success.

Above all, it’s important for board members to support the overall fundraising operation. Otherwise your mission will suffer from lack of funding.

10. Attend public events and bring prospects and friends.

Board members need to show up at important events. You have an important role – you are official hosts and hostesses – welcoming donors and attendees to your event.

Ask staffers what they need from board members at events – what’s essential and what’s optional? That way you can show up and help them be successful.

BOTTOM LINE: 10 Fundraising Responsibilities of Nonprofit Board Members

All board members can, and should, vigorously support the fundraising program. There are many ways to be involved, even if you are not directly asking for funds.

Everyone needs to join in and help make fundraising successful!

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Five Ideas That Will Make Asking Much Easier and More Successful

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We all know that major gift fundraising comes down to the moment of truth – when you actually talk with a donor about a gift.

So how can you make asking much easier and more successful?

Often, it can be an exciting, scary moment. But an asking conversation does not have to be always nerve wracking.

Remember these insights and you’ll be far more calm and successful when you are discussing a gift with a donor. 

We’ll be teaching these approaches to successful major gift asks in our Major Gifts Intensive, which starts next week. Find out more and join us here.

1. Asking is a process, not a one-time transaction.

You’ve got to remember that this is NOT a “make or break” moment.

Asking is not a single point in time. Instead, it’s a process that happens over several conversations. That’s why we call it an Asking Conversation.

At Gail Perry Group, we teach a donor-centered approach to asking that is completely permission-based. Following this approach, you would simply ask your donor:

  • If they’d like to learn more?
  • What about your work most interests them?
  • Would they like to know how they could help?

And ultimately:

  • Would they be interested in discussing a possible gift?

When you take your time, these preliminary conversations help you develop a trusting relationship with your donor. And it builds up to a generous gift.

2. Giving is an emotional act by the donor.

Don’t forget: The act of making a gift is an emotional act.

When a donor gives, they are often feeling warm and fuzzy about the difference they can make. 

It’s an emotional energy. And it connects them deeply to some memory, belief, or deep commitment – one of their closely-held personal values.

In all our planning, analyzing and scripting, we forget that our donor is a living, breathing human with needs, desires, interests and passionately held beliefs.

While we are focusing on dollars that will help us toward a goal, your donor is focusing on what’s going on in their heart – how do they “feel” about your cause. How do they “feel” about the difference they might be able to make?

We miss the mark when we focus too much on the logic and the numbers. (You do need the numbers to provide credibility but don’t lead with them.)

3. It’s not about money.

Yes, fundraising is about much, much more than money.

If you think what you are asking for is “money,” then you won’t be very successful.

If you think it’s all about money, then you won’t be connecting with the higher, altruistic purpose that lives in your donor’s heart.

You’ll instead be engaging in a sales transaction, and one at a much, much smaller level.

One of my great fundraising mottos is:

“Fundraising is not about money, it’s about changing the world.”

If you focus your conversation and your energy about what’s at stake, and how this gift could make such a huge difference, then you’ll be able to raise mega gifts.

4.  It’s not about you.

Many people are self conscious and focusing on themselves when they are chatting with a donor about a gift. Maybe it’s nervousness or awkwardness, but they are self-focused rather than donor-focused.

BUT it’s really all about the donor.  You should be thinking of him or her all the time, not about yourself.

You need to take your cues from the donor, and not be thinking about what you will say or do next.

We fundraisers have learned (the hard way sometimes) that the only way to be a successful solicitor is to let the donor lead the way.

Your donor is not particularly interested in what’s going on with you. What they are interested in is how they can help.

5. People give to an exciting opportunity with the HIGHEST impact.

When you are preparing for an ask, you must always, always remember that people want to give to a project with high impact and exciting potential.

Too many fundraisers focus on money. Or they will focus on the project. We recommend that you focus on IMPACT.

So when you are presenting your “Big Idea” for your donor, you’ll need to talk in the largest possible terms.

Here are a few examples to keep in mind:

  • For a kids’ soccer team: “Help these young people develop skills and experience of teamwork in sports to help them prepare for life.”
  • For a literacy program: “Help people gain self-respect, tools for better employment and become productive citizens. And you are also helping an entire family get on their feet.”
  • For an independent school: “Help young people get the best possible education so they will be prepared for life – they are our future.”
  • For a health clinic: “Our health infrastructure is a basic foundation for economic development in our community.”

And on and on. You can take any project and blow it up to its highest potential.

Bottom Line: These ideas about asking will help you be calmer, more confident and much more successful. 

Our Major Gifts Intensive is starting next week with orientation. We’ve got such a terrific group of smart organizations who are joining us to launch or expand a major gift initiative. We have spaces for two more organizations if you want to join at the last minute! Email anne@gailperry.com if you are interested. 

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(MG Series #7) Use These Three Skills to Close Major Gifts Faster

We thought you might be interested in hearing about three skills everyone needs in order to close major gifts much faster. So today, in the final article of our Major Gifts 2021 content series, we’re sharing the secret skills that the best fundraisers use to close mega gifts.

Here’s the challenge we often face: donors are people. Which means they are human – they can be ambiguous and confusing. Smart fundraisers can read their donors, decipher the implications of a donor conversation and move forward to a gift conversation.

Use the Artful Questions to Find Out Where a Donor Stands.

Often, mega donors don’t come right out and say things unless directly asked. They’ll share conflicting information about their financial position, their family and their giving intentions.

One of the great tragedies of fundraising is when we assume too much about a donor.

We may decide they are a serious donor prospect, based solely on a wealth screening report. Or we may assume they will not be supporting our cause for one reason or another. Either way, donors can – and will – surprise you.

One of the skills we teach in the Major Gifts Intensive program (join us this year!) is how to ask the Artful Questions to find out where your donor truly stands. You can politely, but directly, ask donors specific questions about their intentions.

There is a way to do this that is organic and natural, never pushy. Everyone who aspires to close major gifts needs the Artful Questioning technique that moves a donor toward a gift.

The best fundraisers master Artful Questioning – the hard but delicate questions that uncover their donor’s intentions.

Learn to Read Your Donor’s Cues.

Donors give you signals – some weak and some strong. The best fundraisers can “read” their donors, because they are constantly vigilant, scanning the donor’s communication and behavior for signs of greater enthusiasm or change.

Your major or principal gift donor is constantly giving you cues about where they stand, but alas, you and your team are missing them.

The problem is, you are not paying close enough attention.

Practice watching the things your donors actually do – such as their willingness to chat with you or their facial expressions. (Do they smile when you call?)

Donors will also say surprising things that will perk up your ears. They may ask about naming opportunities or ask to meet your CEO and learn more about your work. They may mention a recent inheritance or a financial situation. These are all classic signals that your donor is interested in deeper support.

  • Kathryn closed the largest gift of her career ($9 million!) when she picked up a side comment from a donor couple – that they didn’t have kids and were planning their estate.
  • Gail likes to tell a story of when she realized the donor was blowing her off, by just the flicker of his eyelid and posture shift. “I got the message quickly,” she says, “and I changed the subject to a more productive direction!”

Use Deeper Listening to Find Your Next Gift.

There’s an absolutely critical attribute of every smart fundraiser – including staffers, CEOs, deans and chancellors, leaders of all types who engage with donor prospects. They must learn the Deeper Listening skills.

Here’s the problem: your team members are too focused on the excitement of the meeting, including what they are planning to say next. If they tend to be talkers, they have a problem. Typically a dean, CEO or your president is going to expect to talk.

Not so. Your donor expects to do the talking.

Deeper listening will help you interpret your donor’s cues, and move in the direction they want to go. You’ll be alert to signs of readiness to give.

The best fundraisers know how to listen their way to a gift.

Bottom Line: The Secret Skills that Help You Close Major Gifts Much Faster.

Don’t wallow around just guessing. Learn to read your donor, listen and ask for clarification. You’ll save so very much time!

Major Gifts Intensive registration will close out next week!

If you and your team want to learn the secrets to locate and close mega gifts, then plan to join us in this year’s Major Gifts Intensive coaching program. This program only happens once a year and we are filling up quickly. But we would love to chat with you and make room. Find out more here and schedule a call with us next week.

We often receive questions about the return on investment of this program. Remember this: the Major Gifts Intensive course will PAY FOR ITSELF through increased gifts.

In fact, most members receive a 10 to 1 return on their investment. So not only does the program pay for itself, but it often brings a 1000% return – much better than the earnings from your endowment. Just think about the long term payoff of building up a robust major gift program for your institution!

Have questions about the Major Gifts Intensive? Email anne@gailperry.com and we’ll follow up shortly!

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(MG Series #2) How to Save Time Cultivating Donors and Move to the Ask Quickly

Happy Weekend! We thought you’d be interested in this topic today. And if you are interested in closing more major and principal gifts, then we have a great guide today for you to save time. 

It’s about all the time we waste cultivating donors. To us, it’s so frustrating to nurture a donor who never comes through with a gift. 

We have all been there. This particular donor loves all the attention, attends all our events, and enjoys our nice dinners. But they never make the gift that we surely think they will. 

You’ve probably been here as well. Have you ever spent months and months, even years, before you manage to get the donor into an ask conversation? 

How about all that time you are spent cultivating your donor? Is it wasted? Could you have moved more quickly?  Would your donor have been willing to give sooner??

How can you know? 

Wouldn’t it be wonderful to be able to move to an ask conversation more quickly? How nice would it feel to be able to find out early in the game if your donor wants to help NOW rather than later? 

It really is possible to find out where your donor stands.

 You just have to ask. But you have to ask skillfully. 

We’ve developed a cultivation process that we call the Skillful Conversation. It’s like a roadmap that guides you to find out what you need to know– and get the ask on the table as soon as possible so you can save time.

What’s more, it’s extremely polite and donor-centered.  This conversation process is never, ever pushy. (We’re southern, remember?) 

With the Skillful Conversation process, you’re never directly asking for a gift. You are oblique, inquiring, playing sleuth.

In our upcoming Major Gifts Intensive program, we’ll be training and coaching our members on how to implement the Skillful Conversation process. What’s more, we’ll be teaching them five different ways to get to an Ask Conversation. If you’d like to join us, check out the program here.  Applications close Feb 24th so schedule your call with us quickly!  

What you are really doing is simply finding out what’s on your donor’s mind. 

You can easily ask your donor:  

“How interested are you in our cause and our organization’s work?”

“What resonates most with you about our work?”

“Would you like to  know how you can help?”

These are such important questions! But so few fundraisers get around to asking about the important stuff. We are all too busy wining, dining and cultivating our donors. 

The end result – we postpone important conversations to the back burner. We beat around the bush, because we just don’t know what to say.  

Sometimes we probably feel awkward, a little nervous, and don’t want to appear pushy. We don’t want to sacrifice our relationship by asking too soon or too quickly – because we know that strategy can certainly backfire! 

Never assume. 

This is one of the great rules of fundraising – don’t assume you know what your donor wants to do, or when they want to do it. 

You can easily find out if your donor is ready to give now vs later. Don’t assume. Just ask. 

Ask them if they’d like to talk about supporting your organization. Or ask them if this is a good time to chat about support. 

It’s all based in permission. Step-by-step, you are asking your donor if they are interested in finding out this or that, or if they want to explore this or that. 

You can relax – just keep asking questions, and your donor feels like she’s in charge. 

Bottom Line: She who asks the questions, controls the conversation.

These tips today can take you right down the pathway to a major, principal and/or transformational gift. Don’t forget to use the Skillful Conversation process. Be polite, donor-centered, and gracious. Ask your donor directly how they feel and what they want to do.

Your fundraising totals will certainly go up! And you’ll save time. Remember the climate is excellent for major gifts right now. Donors are giving. Don’t shy away! 

P.S. Major Gifts Intensive 2021 is open for applications!

Would you like: 

  • A systematic, proven major gifts training and coaching program to expand your team’s success? 
  • To learn permission-based asking techniques that can close transformational gifts? 

The Major Gifts Intensive will help you lay down the systems, mindset, vision, structure and processes for a long-term productive major gift program that will deliver measurable results for years.

We’ll share the core highly successful strategies that we’ve taught thousands of people since 2000, from community organizations to the largest universities.

Find out more here. 

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Superpowers of Successful Major Gift Fundraisers

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Does it ever feel like some fundraisers have superpowers? You know, those ones who raise six, seven and even eight-figure gifts.

And you look at them and wonder, “what special qualities DO these talented major gift fundraisers have?”

“How are they so successful?”

“What is their secret?”

Well, today we will tell you a few of these “secret” traits. And, luckily, they are traits that you, too, can possess. If you want to learn how to build these traits, join us in our 2023 Major Gifts Intensive coaching program. You’ll come out of it a superhero – raising mega gifts in no time.

The Top Superpowers of Successful Major Gift Fundraisers:

Superpower #1: Successful Major Gift Fundraisers are Focused and Disciplined.

We have many distractions in our work. It’s very, very easy to to get sidetracked.

Master fundraisers need to always focus, focus, focus on their intention: which is to move toward a gift conversation.

It’s easy to get lost in all the socializing that comes with major gift fundraising – but that doesn’t bring in the gifts.

Social skills help you get your foot in the door, but as a successful fundraiser you always keep your eye on your goal. 

Donor conversations can wander all over the place. It’s important to bring the conversation back to your fundraising in indirect ways. Talk about your organization and its initiatives and goals.

Smart major gift fundraisers facilitate their donors down the path to a gift. They are always gently leading in a certain direction.

This way you won’t get lost forever in social talk. You’ll be able to move the donor toward a gift conversation.

In the Major Gifts Coaching Intensive we provide you with strategies to master this discipline and make sure we use role plays to practice so you don’t walk away unprepared. Join us!

Superpower #2: Successful Major Gift Fundraisers Actively Listen to Find Out Their  Donor’s Interests.

Too many fundraisers worry about what to say.

They worry that the donor will ask a question they can’t answer. They fret that they’ll run out of conversation topics.

Our advice is: turn around and head the other way. Stop talking!

Your job when visiting with donors is to do reconnaissance. You want to find out what your donor is most interested in. Most of all, how passionate are they about your cause? How motivated are they to give?

If you’re doing all the talking, then you’ll never find this out. It’s actually up to you to find out what makes your donor tick.

And once you know your donor’s interests, passions and hot buttons, you’re on your way to making your donor really happy – AND closing a major gift.

Conversation techniques are a critical skill for any major gift fundraiser. If you’d like to master these techniques – join our 2023 Major Gifts Coaching Intensive. We’ve just opened applications for our class. 

Superpower #3: Successful Major Gift Fundraisers are Confident.

Sometimes it may be easy to feel a bit like a supplicant when you are with a VIP donor. They may even intimidate you.

But confidence is a major superpower.

You have an important job to do, and the donor knows it. That’s why she’s talking to you.

So be open and direct. We never want to assume that we know what a donor is thinking. So you be bold and ask, “May I clarify what you just said?”

When you convey confidence in yourself and your work, then you show up as genuine and authentic.

Confident people have good manners, and they are gracious to everyone. They know their stuff. What’s more, they are calm and unruffled.

All of these qualities put your donor at ease. Then you build trust. Most importantly, you are creating an authentic human relationship with your donor.

Bottom Line: Having Superpowers Isn’t Out of Reach.

These superpowers are easier said than done, we know. We have been there. But we developed these traits and it has paid off in spades.

And we have helped hundreds of other major gift officers develop and hone these superpowers as well, through our Major Gifts Intensive Coaching program..

If you’d like to be a superhero fundraiser, be sure to consider joining! You can learn more about it here. Applications are open now and close February 24.

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Our Predictions: Fundraising Trends for 2021

With a new year comes a hopeful new outlook.  We’re all glad to see 2020 go.

What a year it has been: we suffered through a terrible pandemic, disruption of our lives, families, workplaces, a volatile political climate, and much more. What’s worse, these issues are not over. They will continue impacting our lives – and fundraising – well into 2021.

Yet there are some silver linings.

We saw immense dedication and dogged commitment on the part of nonprofit leaders and fundraisers. And, we saw creative fundraisers take advantage of new opportunities offered by the virtual environment.

Based on What’s Happened in 2020, Here’s our Forecast for Upcoming Fundraising Trends for 2021:

1. Giving is up.  And all signs are that it will remain up.

Many nonprofits experienced critical revenue shortfalls from reduced service fees, ticket sales, and admissions. As a result, donors responded with record amounts of charitable donations.

2020 saw a surge in the entire scale of giving – from small gifts to major donors to new estate commitments. More people than ever were giving and at greater amounts than usual.

The Fundraising Effectiveness Project of AFP found that the first 9 months of 2020 saw an impressive increase of 7.6% over 2019.

Big institutional funders and foundations also stepped up to increase giving in 2020. Through September, Fidelity Charitable grant volume increased 30% over the same time period in 2019.

In 2021, we expect that donors will continue to be interested, open to nonprofit messages, and willing to help.

2. Donor fatigue is a myth.

Asks were everywhere, and donors gave.

The successful organizations laid their cases for support out plainly. In addition, they explained their financial situations clearly. Even more, they pulled appropriate emotional triggers – and donors responded.

Again and again and again, donors responded.

Even with the vast amount of political fundraising going on all year, donors continued contributing to their favorite nonprofits – and new ones too.

Why do fundraisers complain about donor fatigue? It’s because of sloppy fundraising.

Fundraisers keep going to the same donors over and over, exhausting those donors. And fundraisers talk too much about the money, not about the impact.

We predict donors will continue to respond generously in 2021, if they are approached with finesse and skill. 

3. Organizations that continue to invest in fundraising will see solid returns.

Many institutions slashed budgets early in 2020, and furloughed their fundraising staff.

These organizations forgot an important point – their fundraising teams were nurturing generous revenue streams. So what happened when fundraising staff was furloughed? The revenue quickly dried up!

On the other hand, many forward-thinking nonprofits managed to keep their staff and continue operating their fundraising programs.

These groups were able to stay in front of their donors with solid asks. As a result, they were able to ride the surge in donations and keep essential revenue streams flowing in the door.

And, these nonprofits saw a very nice ROI on their fundraising expenses.

Organizations that invest in fundraising will see an even greater growth in fundraising revenue. This will be true for 2021, and will never change.

4. New respect for digital strategies in the major gift world.

The new virtual world threatened to upend major gift fundraising.

But our clients persevered. Surprisingly, we all learned that digital could be a highly effective major donor engagement tool.

What’s more, we discovered that donors were happy to engage with us on the phone or zoom. Even more, going digital meant we could save time while connecting with donors more deeply.

Now, fundraisers could no longer rely on donor parties, lunches and committees as engagement tools. In this new world, we had to personally connect with donors, and talk to them about what mattered.

We predict that major gift fundraising will never be the same. Donor engagement does not have to be face-to-face anymore.  

5. Capital campaigns can absolutely succeed in the digital environment.

We encouraged our capital campaign clients to keep moving forward and they did, with success.

Feasibility studies went smoothly in 2020. We found that donors were just as happy (some were happier!) to talk to us over zoom or the phone as they were in person.

We helped clients stage virtual campaign events. Even more, we delivered capital campaign training to board members. And we guided major asks  – all virtually, and all successfully.

In 2021 capital campaigns will now be organized and executed with a combination of virtual and in-person strategies. 

6. Fundraising continues to become more sophisticated.

New advances in knowledge are yielding helpful new advances in fundraising.

For example, artificial intelligence is just beginning to show us its benefits, especially in the area of identifying stronger donor prospects and saving us time.

And behavioral economics is revealing how to nudge donors toward a gift rather than turning them off.

We are all coming to understand donor psychology better: what really warms our donors’ hearts?  And what emotional triggers will encourage them to be generous.

We predict that these tools will help fundraising become even more successful in 2021 and the coming years. 

7. Giving Days just keep getting stronger and stronger.

2020 saw not one, but two Giving Tuesdays – and both were hugely successful.

In December, 2020’s annual Giving Tuesday yielded a whopping 25% more than the previous year, with 29% more donors participating.

In addition, many organizations and institutions are staging their own proprietary Giving Days with solid success.

Giving Days are successful because they:

  • Add a note of gamification and fun to the fundraising process
  • Reach new donors
  • Provide urgently needed unrestricted gifts

Since Giving Days are still somewhat new, they are gaining more and more visibility. They will continue to grow as important fundraising tools in 2021 and beyond.

8. Virtual events and galas can succeed nicely. 

We continued to be surprised by so many very successful virtual events and galas.

Several organizations in our Major Gift Intensive saw higher totals from virtual events than from previous in-person events.

Many unforeseen benefits occurred when pivoting virtual, including:

  • Event costs were slashed (no more flowers, food, venue, insurance or music)
  • Staff saved vast amounts of time
  • Loyal financial sponsors pulled through
  • Many more people could attend the event on a virtual platform

 

Thank goodness we may never see galas like before. Virtual events will become a reliable alternative moving into 2021.  

Bottom Line: Our Predictions on Fundraising Trends for 2021

There’s a lot of opportunity hidden within a disrupted environment. Smart institutions will be opportunistic, agile and creative  – and they’ll see tremendous success.

Follow these fundraising trends for 2021, and seize the opportunity!

 

As always, it is a pleasure to share our weekly news and insights with you. 

If you want to build and expand your major and principal gifts programs in 2021, keep an eye on your inbox. Applications will open soon for our 2021 Major Gifts Intensive.

Wishing you a prosperous and positive start to 2021!

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What Can Go Wrong with a Capital Campaign in a Pandemic?


You might be planning a campaign for 2021, or you may be in a major campaign right now. What can go wrong?

Capital campaigns, as we all know, are huge undertakings. They are full of risks, rewards and mega gifts, too.

And sometimes capital campaigns can offer breathtaking challenges. Add a global pandemic to the mix, and you have a recipe for stress, heartburn and anxiety.

Capital Campaigns in Pandemic Times

This year has been such a challenge! You and your team perhaps had a solid campaign plan. Your leadership was recruited and in place. Your lead gifts were identified. And everything was moving along smoothly.

But out of the blue came a global pandemic. Everything shut down. You could no longer visit your donors or see your key volunteer leaders. You might be concerned about your donors’ ability to give during this time. And you had to reinvent everything. You and your entire team shifted to juggle many balls in the air.

There really is a path to a successful capital campaign, though. You can still close major campaign asks, even virtually. Our clients are closing big gifts every day, and we want to show you how you can too.

If you’re interested, our new course, Capital Campaigns in Times of Crisis: 5 Keys to a Successful Campaign Even in Today’s Uncertain World will help guide you and your team to success – even in this virtual environment.

What Can Go Wrong with a Capital Campaign Today?

Where do we start? There are so many challenges! (By the way – You’ll find solutions to these challenges in our course – that will help you accelerate your success.)

Decision Making During Uncertain Times

Making major organizational decisions during uncertain times is scary. It can seem overwhelming at best, and may bring your organization to a standstill.

But not making decisions is just as dangerous as making the wrong decision.

First, you need to craft or re-craft a workable Campaign Plan in the midst of uncertainty. What can you control, what can’t you control?

How would it feel to be able to move forward vigorously with a revamped, realistic campaign plan? You’d see success on the other side.

Planning a Virtual Campaign and Feasibility Study in a Virtual World

Are you in campaign planning mode? If your campaign is on the horizon for 2021, we will show you how to take the right steps, now – so you can successfully move forward with lead gifts next year.

Managing a successful feasibility study – even in this environment – is very doable. We are actively working on some virtual feasibility studies, and they are moving along nicely. Donors are more available, and are willing to chat at length.

What is the Right Case for Support in This Environment?

How are you positioning your case in this competitive fundraising environment? You are probably struggling with the right story to tell for today’s donors. Yes, you do need a different story for today and tomorrow!

In our new course, we’ll share secrets on how to develop or refine your case for this environment. It seems more daunting than it is!

Nurturing Donor Relationships

We’re in a distant world now. it’s against everything we’ve gotten used to.

And are you exhausted by zoom?

Don’t be. We now know that donors are more available than ever. They are not traveling as much; they are focused on their community, they want to help.

Zoom means that the rules have changed. The future of your capital campaign depends on mastering a new set of discovery and qualification skills for the virtual environment. Let us show you how.

Staging and Closing Major Campaign Asks – Virtually

The biggest struggle of all? It’s how to manage a major campaign ask on zoom.

Yes, it can be done. Our clients are closing 6-figure gifts often, even in this environment.

There are a few strategic shifts you can make to ensure that your major campaign asks are successful, especially in a virtual world. In our course, we’re sharing five proven approaches you can use to set up and close major campaign asks. This is crucial for your successful capital campaign.

Bottom Line

The world is changing, there is no doubt. We are excited to share that your campaigns can still move forward, and be even more successful in this new world.

We have been helping our capital campaign clients reinvent, adapt and successfully move forward, despite the current climate. And it’s been going well.

This can be your success story too.

If you’d like to be prepared for the world as it is going to be, not as it was, please join us in our new course. We hope you’ll join Capital Campaigns in Times of Crisis so you can take your campaign to the next level of success next year.

If you are not in capital campaign mode, we wish you many major gifts flowing in from your generous donors.

 

As always, it is a pleasure to share our weekly news and insights with you. 

If you are planning a capital campaign, take a look at our NEW course which launched this week, Capital Campaigns in Times of Crisis:5 Keys to a Successful Campaign Even in Today’s Uncertain World. 

Hope you have a wonderful and safe weekend.

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Donors are Stepping Up! Giving Was Up 7.5% in the First Half of This Year

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Remember April, when we were all clenching our teeth and thinking “Oh wow, this is not the year for fundraising. How will we get through it?” 

Well, it turns out recent data proves that 2020 is actually a great year for fundraising.

So if you were one of those organizations who didn’t hold back and kept at your fundraising in the spring – Good Job! 

Why 2020 is a Good Year for Fundraising 

The Chronicle of Philanthropy recently reported that giving was up 7.5% in the first half of 2020 based on results from the widely respected Fundraising Effectiveness Project (AFP, 2020). This project works with over 25,000 nonprofits and donor software providers to track and identify quarterly gain/loss findings for the nonprofit sector. 

And what’s more, it wasn’t just the wealthy who were behind the rise. The Chronicle of Philanthropy reported gifts of $250 or less rose 19.2%, accounting for a big part of the growth (COP, 2020).

This means that donors are pouring out contributions to their favorite nonprofits – right now. This also means that your steadfast supporters are feeling generous – and they want to help. 

And, there’s more good news in this report: 

Major gifts are up by 6.4% compared to this time last year. And mid-level gifts are up even more – by 8.1%! 

“the number of mid-level gifts ($250 – $999) and major gifts ($1,000 or more) saw year-over-year increases of 8.1% and 6.4%, respectively, compared to 2019 data.” (AFP, 2020)

Wow. That is wild. 

What Does This Mean?

The fact that giving increased 7.5% over 2019’s first half is a huge indicator that donors are motivated and feeling generous. The giving climate for the 2020 year-end giving season is projected to be robust. 

All of the signals indicate that giving is still quite solid as we move into autumn. And even with all the noise surrounding the election and the pandemic, loyal donors are stepping up for the nonprofits they support. 

This is certainly a great time to be out there, in front of your donors. Remind them about the impact your organization creates, and invite them to contribute. 

Why are we seeing so much generosity now?

For some time, we’ve thought that donors are simply more motivated these days, especially as we watch new gifts flowing into the capital campaigns we counsel. 

Our interviews and focus groups with donors have solidified this thought, and it seems data is now showing this trend as well.

1. Donors want to do something positive

With all the disruption of 2020, not least of all the pandemic, donors want to take action and do something positive for their community, and the world. 

They are motivated to bring forward kindness and compassion. When they are aware of the needs, especially regarding causes they care about – they want to respond.

While many have been terribly impacted, both physically and financially, many other major and mid-level donors were less affected and are still quite well-off financially. For many, they want to reach out and help others who have been less fortunate, through supporting nonprofits. 

2. The stock market is up, which is good for year-end

The US stock market took a hit, but now it continues to soar. Donors with investment portfolios are feeling flush. In our opinion, when donors feel financially secure, they tend to be more generous. TIP: remind your donors they can donate appreciated stocks! 

Even when the stock market was low, many major donors did not feel the hit and were still donating. On top of that – major donors may have more to donate in 2020 because any  traveling or larger outings were most likely cancelled. 

Bottom Line: 2020 has Shown To Be an Enormous Opportunity for Fundraising – Backed by Data

I hope you have been making the most of this generosity this year. And if you haven’t, it’s not too late to start!

 

As always, it is a pleasure to share our weekly news and insights with you. 

If you are planning a capital campaign and would like to learn about our unique Capital Campaigns by the Numbers approach, let us know. You can also join our INSIDERS community for more fundraising training and content. We would love to have you! 

Hope you have a wonderful weekend.

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Board Chairs: How to Fire Up Your Board with a Call to Action

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Here’s a call to action for all board chairs!

You have a big job. Especially these days.  Many organizations are facing major decisions – about funding, staffing, service delivery – and everything else.

As we said two weeks ago, a small vision and a small goal won’t cut it in this environment.  If your board needs a wakeup call, here’s a format that will work!

Board Chairs: It’s Time to Rally the Troops.

If you need to motivate your board members and challenge them to take action, try following these guidelines. Here’s how to marshal your forces, encourage everyone to pull together, and inspire action.

1. Take the First Step Yourself

Be the first to step up to the plate. Board chairs need to personally take the first action that you are asking of your board members. Ask them to follow you.

Remind your board members that it’s really up to them. They also have a responsibility to lead by example.

2. Professional and Business-Like Tone

If you are writing to your board members, watch your tone when you ask them to take action. It’s easy to sound like you are lecturing or complaining.

Make a request that is professional and business-like –  no pleading or manipulating. Just make a request plainly and succinctly. Above all, treat your board members as the capable professionals they all are.

3. Call Them to a Higher Purpose

Rally your board members with inspirational thoughts. What’s the ultimate vision that everyone is trying to achieve?

Always remind them of their higher purpose and what they want to accomplish – in the biggest sense possible.

4. Clear Set of Actions to Take

Lay the problem out clearly. Then, point out possible solutions or steps the board can take to move forward.

By all means, give everyone clear actions they can take – and a choice of actions.

5. Ask Board Members to Personally Respond Back to You

When you write your board members, here’s a way to get their attention. Ask them to respond back to you directly – not to respond to someone else.

When you do that, you let them know that this is a direct and personal request from you, the board chair. And you can keep tabs on who is doing what.

6. A Deadline!

Absolutely, everyone performs better with a deadline. Why? Because it provides a clear time frame, and accountability to take action.

Board Chairs Can Make It Happen:

Once, our local AFP chapter needed an intervention. We were facing a major event – our National Philanthropy Day celebration, and everyone needed to jump into action.

Fortunately our chair was a skilled leader. She wrote us a Call to Action email, asking us all to step it up. With only a part-time staff person, we had to rely on our board volunteers to make it happen.  So, if we didn’t pull through, we wouldn’t even have an event.

Take a look at this professional and very specific note to her board members:

Good morning,

Our event committees have been working diligently to make this occasion a great success. I’m proud of their efforts and the incredible creativity they have brought to the event planning.

However, the ultimate success of our event will depend on the community’s response and we, as board members, must lead by example.

This week, I am asking each of you to consider how you personally (and your organization) can participate. Please consider these 3 opportunities to help your donors, volunteers, your cause, and AFP shine:

* Commit to a table of 10 at the non-profit, special rate of $400 to honor an outstanding volunteer.

*Nominate one, two or more donors and volunteers for an award.  It’s so easy and you can do it online.  My organization is nominating in two categories this year.

* Help secure a sponsor at the $500 or $1000 levels.  We have turn-key packets for you to personalize for your prospect.

I would like to ask each person to either reply to all or send me an e-mail indicating to what extent you are able to commit to one, two or all three of the above.  It will boost our “ask” to others to step up. It will also help us get an early snap shot of what our board participation will be.

I appreciate all that you do to make our chapter excellent and look forward to hearing back from you by the end of the week.

Warm regards, 

Bottom Line: Board Chairs – Try this Approach When You Need to Rally Everyone.

These difficult times need us all to pull together and make it happen.  If not us, then who? If not now, then when?

As always, it is a pleasure to share our weekly news and insights with you. 

If you are planning a capital campaign and would like to learn about our unique Capital Campaigns by the Numbers approach, let us know. 

Hope you have a wonderful weekend.

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