Tag Archives: nonprofit growth

Habits of highly effective giving

 

Like in business, charitable organizations require revenue to not only exist, but to provide support, growth, and opportunity to the beneficiaries they serve.

Billions of dollars are contributed to organizations each year. Some donors may question is this enough or is their contribution needed? However, the more appropriate questions might be “Am I giving to the right organization” and “How effective is my donation”? The answers lie within each donor’s personal path to philanthropy.

For the most part, when donors make a charitable donation, they want to know that they are giving to a good thing and that the money will be used the right way. But, how do donors know this? How can they be assured or satisfied that their donations will be well spent? In our opinion, effectiveness equals donor satisfaction combined with impact and utilization of each gift.

No matter the size of the donation or from whom it is being contributed (business, foundation or community resident), here are our habits of highly effective giving.

Identify the ideal organization

When looking for the right organization to support, start by taking a good look at your interests, connections, goals, and influences. These will help narrow the list of local, national, or global organizations from which to select the one(s) you’ll eventually support. If you need help, contact a nearby leader (such as NPcatalyst), who has access to multiple directories.

Understand the organization’s needs

When you have narrowed the search, take a good look at each organization’s reason for existence, mission, programs, and goals. As you do this, you’ll become more familiar with the organization and, more importantly, identify and understand their needs. If you’re having a difficult time identifying their need for donor and volunteer support, give them a phone call or send an email.

Assess the organization

A critical step of the process is analyzing each organization’s operations and performance. This is where you determine the soundness of their best practices. Be sure to assess the percentage of funds being allocated to programs or services; take a look at the strength of their leadership; and check to see if their policies, procedures, and management practices are up to par. If you would like assistance, contact companies like NPcatalyst, which analyze and rate charities on a regular basis.

Establish a relationship

There’s no finer way to understand an organization than by direct contact. This can be accomplished by sending an email or calling a staff or board member to ask questions, request a meeting, register for a special event, or offer to volunteer. As in business sales, the ideal “transactions” take place as a result of mutually-beneficial relationships. It is a great way to watch the effect of your donation.

Leverage the contribution

Once you have made the donation(s), the fun does not need to end there. No matter the size of the gift, sharing your goodwill should help compel others to duplicate your act of kindness, as well as create greater awareness of the organization. For businesses, it is a great way to illustrate a business’s role in community growth, not to mention its effect in generating new business. By simply updating your “status” via social media (Facebook, Twitter, etc.) or sending a press release to media or mailing a letter to friends, there is a good chance your gift will keep giving.

Measure the contribution

Similar to assessing the organization (Habit #3), be sure to confirm how the money was allocated within the organization. Whether the contribution was unrestricted or restricted (given for a specific purpose), it is vital that you recognize that the donation was distributed toward its intended purpose.

The significance of each charitable donation is escalated when a donor has a deep understanding of the cause, the organization, and the program(s) being supported. In a very similar approach to building personal relationships, the more familiar a donor is to the beneficiary of the contribution, the more significant and rewarding the gift.

If you have not applied these habits to past contributions, imagine how your giving could have been different. By applying these habits, your future donations will have far greater impact, making your community, country, and world a better place.

 

Seven tips for fundraising success

 

Raising funds for charitable organizations can be difficult; certainly time-consuming. It’s a patient process, requiring considerable research, planning, and organization. The word “development” is a perfect fit to the process an organization goes through to generate a meaningful contribution.

When it comes to raising funds for your organizations, here’s a handful of tips to consider adding to your overall fund development strategy. They have represented the centerpiece of our success. They’re not listed in any specific order, but you’ll quickly recognize where and how they fit in your strategy.
   
Identify strengths and weaknesses

Understand the organization – from operations to personnel to policies to financial management. Recognize the causes and implement solutions to each. Be sure to dot every “I” and cross every “t”.

Offer innovative giving

The one constant between most non-profit organizations is the ability to accept cash contributions. Every donor knows this. However, savvy donors (charitable investors) seek greater information, transparency, accountability, and results from their contributions. A strong percentage of them seek unique and innovative giving methods.

Create solicitation strategies

Know your constituents. An engaged leader is a gem and, as nonprofit leaders, it’s our obligation to strive for their full potential. One great way to really get to know supporters is to design solicitation (or engagement) strategies for each. Start by creating a Prospect/Donor Profile for each, used to document their interest, involvement, willingness, and capability. Mapping a solicitation strategy will force you to be strategic about cultivating each constituent’s involvement. This one act involves and is influenced by the other six tips offered here.

Engage constituents

From prospect identification to board leadership to donor stewardship, your benefactors are your organization’s greatest vehicles of success. Engage them through key steps of the fund development process. You’ll be amazed at their ideas, insight, and perseverance.

Generate active awareness

Tell your story to the world. Shout it regularly through local media and through your social media avenues. Be sure you focus on strengths and opportunities and that any weaknesses are addressed. Distribute clear messages and keep your messaging timely. Encourage staff, volunteers, and donors to share the messages through personal, personable, and electronic means.

Network

It’s a seven-letter word that, for many non-profit leaders, is more like a four-letter word – work. There’s no better way to prospect new supporters, whether they’re future volunteer or donor leaders. It involves stepping out of your routine, forces you to fine-tune your 30-second elevator speech, and smile even if you’re having a difficult day. Ask any business leader, networking produces results. Get out there and make friends and share your organization’s story, needs, and opportunities.

Steward donors

Perhaps the most detrimental cause of recent organizational failure might not have been solely the economic crash. Is your organization at fault for not properly recognizing donations and, more importantly, developing strong relationships with its donors? Stewarding donors strengthens the lifeblood of non-profit organizations. Pick up the phone, send an email, direct a tweet, say hello in the store, high-five at a ballgame, and send a card. These are the little ways that magnify the “engage constituents” tip into truly rewarding alliances. Make each donor feel as if he/she is in the middle of the game.

 

Perhaps one that should be listed is “have fun”…development and non-profit leadership should be exciting, rewarding, meaningful, challenging, and fun. Make the most of it!