About 8 years ago while boarding a flight from Oklahoma City to Tucson I found myself standing next to an Executive Vice President from Sonic, the drive-in fast food company. Knowing that Sonic was among the first fast food outlets to test using credit cards I took the opportunity to ask how that had worked in a notoriously profit thin industry. 

Smiling, he said. ”Our average ticket went from a little less than $3.00 per ticket to almost $8.00 per ticket!” 

Remarkable evidence of 2 key points:

•  More and more people are carrying less and less cash 
• A striking example of the business axiom: Make it easy for your customers to give you money! 

What does this have to do with Why Nonprofits being Square? 

Square is a postage stamp sized adaptor that plugs into a smart phone and allows you to accept credit card payments on the spot! 

I saw this nifty little device in action recently in a local park. The Lupus Foundation of Southern Arizona was holding their annual “Loop the Loop for Lupus” walk and selling raffle tickets for a new car. The car raffle tickets cost was $25 each. More cash than many people carry especially at a walk! 

More than 75% of the raffle tickets sold was via credit card avoiding lost sales because of a lack of cash. Now with the swipe of a credit card, approval code, an approval signature written by finger tip, and a receipt sent to the buyer’s smart phone - all at internet speed. 

While visiting www.square.com I learned that simply by signing up Square will send you the postage stamp sized card scanner AND the software application all absolutely free. The cost per transaction is nominal considering the portability and the opportunity to increase ticket/event sales in remote locations. 

Early in my career during a conversation about seeking big gifts a veteran fundraiser once told me “picture a rocky riverbed filled with softball size river stones as far as you can see,” he said. 

“Each stone represents a gift prospect and all you have to do is go to a stone, pick it up and turn it over. If there is money under it great – if not, then put it down and pick up the next one.  You never know what you will find under a rock until you turn it over. Just keep turning over rocks. It really is pretty simple.”

That example has stuck with me over the years for several reasons. Most important among them is that it serves as a reminder of two important yet often overlooked facts;

• Successfully seeking of big gifts is not rocket science
• seeking big gifts, in its basic form, is a systematic process.

Surveying the many stones filling the riverbed they all look the same. The sheer number of stones that must be turned over creates a huge mountain of work.  So many stones, where to begin, which stones to turn over, what direction to take, do you work your way back and forth across the bed of rocks or up and down?

But, what if you discovered that the brown ones have more money under them than the red ones, the red ones more money than the tan ones? Then the task would be simple – turn over all the brown stones first!  Then the red ones and save the tan ones for last.  But, how do to discover where the money is? 

To discover where the money is you must take intentional action! Intentional action is a conscious and thoughtful plan with a specific goal in mind, executed deliberately to achieve the desired goal.  In this case the goal is to discover a method to identify which stones are most likely to produce big gifts.

Next topic: Screening & Rating Donors

“I have another $1.6 million in other places” he said.

My heart leapt at his words. Quick mental math told me this could be a gift worth more than $3 million!  

We have all heard of really big gifts that come “over the transom,” out of nowhere. I even have a couple of stories myself.  However, the truth is, really big gifts from “over the transom” are too few and too far between to hang your hat on or even worse – your budget.

Really big gifts don’t happen every day.  But, big gifts can happen more often than you may think. The steps leading to big gifts include;

• Identifying prospects
• Donor cultivation
• Qualifying the donor
• Making the “ask”
• Gift design 
• Stewarding the gift 

Circumstances of time and place can make the specifics of each step vary, but make no mistake about it big gifts are the result of intentional actions, keen listening and good fortune (No pun intended).

What is intentional action? Specific actions designed to accomplish each of the 6 steps listed above in a organized, managed process. Considering that about 85% of all philanthropy in the USA comes from private individuals - NOT corporations like many people believe, an anonymous survey respondent to the Nonprofit Research Collaborative, Summer/Early Fall 2011 may have said it best: 

"I used to have four people working for me and all of them have been laid-off. This means that our board has had to take on greater responsibility in fundraising. We have limited resources for fundraising so asking for major gifts is the most time-efficient way to do fundraising." 

It is clear that big gifts should be on the radar screen of all donor supported nonprofit organizations. Intentional action, some call it "moves management,"  is the proven path to "big gifts." Regardless of the name, when more than 80% of charitable giving comes from 20% of the donors or less - asking for major gifts is the way to go.

Common barriers to establishing major gift programs involve "I don't know ...... who to ask, how to ask, when to ask, how much to ask for, and on and on and on...." 

Learning from your peers is a great way to go. By joining your local AFP chapter, low cost or no cost training may be available.  Another more focused approach for your organization to establish a major gift program can include exploring gaining specific training, knowledge, and guidance designed for your organization.  

Next topic: Talk to your donors

Knock'Em Dead

Gary

President & Head Coach

 Why is one of the most difficult decisions a non-profit board has to make is when to bring in a paid outside consultant?  For many non-profits it is the desire to funnel every dollar to support mission and programs. Understandable, after all that is why the organization exist.

 However, with a well defined scope of work a consultant can suggest streamlining and added efficiency and/or methods to increase your income. Either way the result is more money for mission and programs - not less. 

There can be a variety of good reasons to consider hiring a consultant. Most of these reasons can be summed up in the 6 reasons listed below. 

  Organizations consider the services of consultants when:

 

ü They have no expertise in the area of need.

(Board Education & Training, Feasibility & Capital Campaigns/Planned Giving)

ü Previous attempts to meet needs were unsuccessful.

(Re-engineering Annual Giving, Major Gift Programs)

ü Disagreement about how to meet the need

(Board strategic planning facilitation)

ü Leadership wants an objective view of the organization

(Organizational Effectiveness and Development Audits)

ü Time of need is short, e.g., less than a year.

(Interim Executive / Development Leadership, Development Staff Training)

ü To do work that no one else wants or has time to do.

 

If you see your organization in one or more of these situations perhaps you should consider hiring a consultant. 

Finding a consultant is easy. The difficult part is to find the best consultant for you and your organization. On the surface this task can seem daunting. However with forethought, preparation and candid conversation the task can be accomplished. You can request a checklist of things to consider when seeking a consultant by sending an email here. 

Next topic: "Where do big gifts come from?"

Knock'em Dead

Gary

President & Head Coach

PS. Don't forget to share your thoughts below. Inquiring minds want to know!