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Why Nonprofits should be Square

Empty Handed Giving — Tue, 10 Apr 2012 16:30:00 GMT

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.

Nonprofit organizations be Square and make it easy for your donors to give you money!

Knock'Em Dead

Gary

President & Head Coach

GPB Associates LLC

Empty Handed Giving, when properly understood, is the essence of everything that I believe and embrace as a nonprofit fundraising consultant. GPB Associates LLC works everyday to share professionalism and ideas that work in nonprofit fundraising.

Road map to success: Screening & Rating of Donors

Empty Handed Giving — Tue, 13 Mar 2012 16:30:00 GMT

The previous blog, Riverbed Fundraising, closed with the concept of taking intentional action for specific purposes - knowing which donors to aproach first. Things don't suddenly become known because we want them to or by accident. Desired results come from planned actions designed to meet their intended purpose. Today we will explore screening & rating actions that can become your road map to fundraising success.

Generally speaking there are three methods of screening and rating donors. Broadly speaking these methods are:

Internal Information
Electronic Screens/Prospect Research
Peer Screening & Rating

Screening & rating based on your internal information that normally includes;

Giving History
Call reports/Anecdotal information
Personal Knowledge

All of this internal information is important to screening and rating donors and you can draw certain conclusions from the information that you have on hand. Most everyone in the community knows or thinks they know who are the more wealthy members of the community. However, the fact remains: " You don't know what you don't know."

To go beyond the internal information that you already have you may consider "electronic screening" or individual prospect research for addition information. You can visit The Association of Professional Researchers for Advancement website here to learn about the wide variety of professional services offered from prospect researchers. Personally I have used WealthEngine in the past and found them to be helpful.

If your organization is in a position to invest in electronic screening it is well worth the expense. However, if professional services are beyond your reach then consider Peer Screening and Rating:

Representative constituents meeting in small groups of 6-8 for the systematic examining each potential donor provided and the goal is to gain consensus on the estimated donor value to your organization.

Key to the process is a clear understanding of and the difference between the following:

A prospect is screened according to the propensity (an innate inclination; a tendency) to give to your organization.
A prospect is rated according to their capacity (the maximum or optimum amount that can be given) to give to your organization.

Create a screening scale similar to the one pictured below.

Use a rating scale like the one below. Use appropriate dollar amounts for your organization.

Using these scales you will yield screening and rating results that will look something like below:

Screening	Rating
A	2	Definite gift/ $2500
B	4	Very likely gift/$500
B	2	Very likely gift/$2500
A	1	Definite gift/$10,000+
C	3	Likely gift/$1000
C	3	Likely gift/$1000
D	1	Not likely gift/$10,000+

Using the screening and rating results will give you great information. Your approach can be ordered in such away to begin working. For example you may choose to begin with the A-1&2"s first then the B-1&2's, then C-1&2's, then A-3&4's etc. Eventually working with all of your potential donors in an ordered way designed to yield the greatest results.

If you have additional questions on peer screening post your questions here and I will be happy to answer them for you.

Next topic: Everyday Inspiration

Knock'Em Dead

Gary

President & Head Coach

GPB Associates LLC

Riverbed Fundraising

Empty Handed Giving — Thu, 08 Mar 2012 04:27:07 GMT

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

Knock'Em Dead

Gary

President & Head Coach

GPB Associates LLC

Talking with your Donors

Empty Handed Giving — Tue, 06 Mar 2012 16:30:00 GMT

Communicating with constituents and donors is considered a "must do" and rightly so. There is no substitute for keeping your constituents supporters well informed. Effective communication is a tie that binds.

The question is how to communicate in a way that is both meaningful and cost effective.

Because of rising postal costs many organizations are taking a fresh look at the effectiveness and "return on investment" of the long used "newsletter" and "magazine-type" mailing pieces. The rush to gather email addresses is underway to take advantage of the more economical email versions of newsletter. Some use vendors such as Constant Contact or Vertical Response (my choice) while still others use various forms of "home grown" solutions.

Another way to communicate with your supporters is to create a "Thank You Call Committee" (TYCC) staffed by several board members. Being a member of the TYCC is easy, fun, and affirming - it works like this:

1) Each TYCC member will be given a list of names and phone numbers of donors at certain level and above.

2) The TYCC member will call each donor, introduce themselves as a board member, and thank them for supporting the organization financially.

That's it! Be prepared - because your donors will be impressed and the TYCC members will be pumped up by the donor conversations they have. Everybody involved enjoys big, warm fuzzys on this one. If you want a free suggested talking points guide for the thank you calls request your FREE TYCC Talking Points here.

Now imagine, what if, as part of your digital newsletter, your supporters could hear your voice, the voice of a board member or a message delivered by a grateful recipient of your services?

Imagine their computer screen and your digital newsletter coming alive! A familiar voice! A thankful voice! Imagine the impact that voice and video can have on how your supporters know and understand your organization.

If you want to "talk to your donors" in a more personal, meaningful way take a look at these two websites. Keep in mind that these products and websites are aimed at for profit businesses. Look beyond words like "sales" and "customers" and mentally replace them with "gifts" and "constituents." The potential benefits for the non-profit world were immediately apparent to me.

Be sure to review them both, each of them can be powerful.

Audio can be easily generated and placed in your digital newsletter, emails, and other delivery systems with Audio Generator.

Audio and video can be easily generated and placed in your digital newsletter, emails and other delivery methods with Instant Video Generator.

I discovered Audio Generator and Instant Video Generator while I was investigating methods to add "sights and sounds" to my blog sight. The reason that I settled on these are a combination of cost and ease of operation. I'm a non-techie and if I can do it, I'm pretty sure you can do it too.

The Empty Handed Giving blog is dedicated to sharing ideas that work. You can get good ideas here by visiting, reading, and implementing. If you don't understand something simply ask here - these conversations are always free.

Next blog topic: "Behind the name Empty Handed Giving"

Knock'Em Dead

Gary

President & Head Coach

GPB Associates LLC

Where do "Big Gifts" come from?

Empty Handed Giving — Thu, 01 Mar 2012 16:30:00 GMT

“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

When to consider bringing in a consultant.

Empty Handed Giving — Tue, 28 Feb 2012 16:30:00 GMT

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!

Report Forecast Challenges in Fundraising

Empty Handed Giving — Thu, 23 Feb 2012 16:30:00 GMT

Welcome to my blog titled Empty Handed Giving.

From reading "The Nonprofit Research Collaborative" from September 2011 the following quote forecast the need to adapt to a "new reality":

“While the survey numbers may seem okay at first, the reality is that giving levels were

much higher in 2007 before the recession. With many economists predicting a flat

economy for several more years, charities face a very challenging environment in the

near future, with fewer funds available while the demand for services and programs

remains quite high. This is the new reality charities will have to address.”

Andrew Watt, FInstF

President and CEO

Association of Fundraising Professionals (AFP)

To deal effectively with this "new reality" charitable organizations must re-examine and make improvements aimed at greater results by;

Improving communication
Increased skill in fundraising
Improving program deliver and organizational effectiveness across the board

A self re-examination and assessment takes an investment. The investment can take a variety of forms including optimizing time (staff & volunteer), sharpening skills and acquiring new ones (again, staff & volunteers), and at times seeking outside advice.

Some investments require only time others require time and money. Both of which are in short supply in most nonprofits. Take advantage of "free" whenever you can. That means this is a good place to visit! It also means join your local AFP chapter or any other organization where you can learn from your peers at little or no cost.

Next topic: "When nonprofits should consider using a consultant"

Knock'Em Dead

Gary

President & Head Coach

PS. To be notified about new Empty Handed Giving blog post complete the subscribe box in the green banner to the left. Do it now.

Behind the title "Empty Handed Giving"

Empty Handed Giving — Tue, 21 Feb 2012 16:30:00 GMT

Several years ago I was having a conversation with the creative director of a print advertising company. After a few minutes the creative director mentioned how difficult it must be "to go hat-in-hand and beg for money." A description I dislike - a lot.

"No." I responded, "That's not how its done. When you have a good cause with a compelling need, delivered in a thoughtful, and professional way - there is no begging. My hands are always empty - and I never carry a hat."

My remark, granted a bit forceful, was met with a momentary blank stare, complete with blinking eyes, and followed by a quiet, thoughtful expression. A few more silent moments passed, cocking his head he remarked, "empty handed giving - an interesting concept."

That conversation provided the phrase that, when properly understood, is the essence of everything that I believe and embrace as a nonprofit fundraising consultant. GPB Associates LLC works everyday to share professionalism and ideas that work in nonprofit fundraising.

The purpose of this blog is to share my experiences and stories with ideas that work and some that don't work. Perhaps what is shared will ring true to you. I invite your thoughts, remarks and questions below. Sharing is key to learning. I learn from experience and others everyday.

Take a moment to check-out the green column to the left. There you will find links to information about me - link to become a Twitter follower - a place to subscribe to be alerted when a new Empty Handed Giving is posted and waiting for you. Sign up for one or all!

Next topic: "Report forecast fundraising challenges"

Knock'Em Dead!

Gary

President & Head Coach

PS - To be notified of new Empty Handed Giving posts complete the subscribe post to the left. Go ahead - do it now.