There is a message in the message

Posted on December 12, 2008 by Admin

While listening to the radio during a recent commute I got a feeling in the pit of my stomach. I could feel myself get tense as the subject of the economy was being debated. Like you, I have heard it all. We are at the bottom of the market. The worst is yet to come. Without the bailout we are doomed. With the bailout we are setting a bad precedent.

Who is to know? As I pulled into my parking space I paused and thought – what really matters at the end of the day is one human reaching out to another and lending a hand. The perverbial “we are all in this together” mentality. And suddenly I recalled an experience when pulling together had special meaning.

I was a junior in college. A fraternity brother of ours had just lost his mother to cancer. A battle she did not wage very long. He was from a very small farm community and like many residents did not come from great means. One the day of the wake we all loaded up and drove the two hours to be with our friend. Most of us had never met his mother.

During our time at the funeral home we overheard that his family would not have enough money for a head stone at the grave site. This was not acceptable to us. Over the next three days we “passed the hat” amongst our commrades until we had raised enough money for a small head stone. We gave our money to our good friend. You could not hear the thank you through his tears. We really did not even need the thanks.

Looking back I recall many of us putting in what we could. We all were on a tight budget, but we all dug a little deeper. We felt a strong bond to our friend and even if we did not know his mother it did not matter. He was in need…and in some way so were we.

When you listen to the experts this season remember their message holds a message. Our work as a sector will survive. It has to…we have a bond to those we serve, they are in need…and in some way so are we.

Out with the 80/20…it is now 20/60/20!

Posted on November 21, 2008 by Admin

My colleagues at Achieve recently gave a webinar entitled Fundraising in a Tough Economy. To be honest we have had some very spirited conversation about this. It has not been so much disagreement as empassioned agreement.

Here is what we agree on: Yes, times are tight and without a doubt the turbulent market is perhaps the most volatile ever. We also agree that historically giving is one area of growth in times like this…just look at giving in 1999 and 2000. It increased despite significant market change. We also agree that history is nice but unemployment concerns were not as high then. Our final point of agreement…we have no idea what will happen.

Based on client interaction we have developed a new way to view our current economic climate: the 20/60/20 Rule. We have seen that 20% of donors are simply paralyzed. They have pulled back from everything, including giving. Annecdotally, another 20% have made no change in giving. They are financially secure and are still able to make their charitable gifts. The middle 60% are taking a measured wait and see approach. They are still giving, perhaps less in many cases.

Our advice…focus on the 60% now more than ever! Your case still matters. Those you reach still need your services and one could argue even more now than ever! Why this view?

Imagine the nonprofit that is struggling right now with fundraising? Is it the economy or the result of a poorly formed fundraising program without the board engaged? If so, then the economy has only exposed the weakness.

What about the organization that is still raising money, but seeing a decline in overall giving? Well, who is giving less? What has the organization done to engage at a higher level the middle 60% of donors? Is giving down or is stewardship lacking?

Finally, we hear corporate support is shrinking! Wow, and to think, corporations in total are 5% of total giving. Perhaps this is a case of looking down the wrong well?

Again, we do not have a crystal ball. We do know that empahsizing stewardship and cultivation will ALMOST ALWAYS lead to bigger gifts.

In short, things will improve. They always do, so let this be a lesson for all…the needs of those we serve are why we exist and meeting the needs of our donors is the way we get there. We cannot control everything, we can control how our donors view our importance.

At least 60% need some reinforcement of that!

The Time is Now for Nonprofit Organizations

Posted on November 4, 2008 by Admin

I cannot predict who will be elected as our next president. I am no pollster and cannot seem to decifer the many views and predictions of news outlets and political pundits. I did however have a revelation regarding this election after hearing NPR Correspondant and FOX News Analyst Juan Williams give a speech recently.

His contention is that this election is more a reflection of society than one of politics. He makes his observations after reflecting on recent population trends in the US. Seems our population has grown in the last decade despite a decline in birth rates. The rise in population is a result of two major factors: Americans are living longer and there is an increase in immigration in the US. And these two small fact tells us plenty.

Mr. Williams observes that these statistics explain a culture clash. He described recent work he had done to examine the under 18 population in the US (which is now 25% of our population) the 65+ year old population in the US. What he uncovered is truly fascinating.

Those 65+ lived during an era when being an American meant being a hardworking, family oriented traditional America. These folks were decendents of those who helped shape the melting pot. These kinds of folks associate with more with John McCain.

Those 21-34 represent a new kind of America. One that is accepting of outside influences, differing cultures and committment to life rather than a “job”. This generation represents, as Mr. Williams describes, a salad bowl. Younger America more readily associates with Barack Obama.

In short, this election is a clash of those cultures, not so much one of politics. What do we want to become rather than how will we stay what we are.

As nonprofit organizations look forward we are lucky. We serve others and as such have the luxury to ask “what do we want to become” everyday. And it does not matter which candidate wins the White House. We serve all…every culture, every belief, every generation. We offer handouts and hand ups. We ask why and how. We transcend all that swirls around us each day. We are commited to those who vote for us everyday (our donors) and those who depend on us every minute (those we serve). Our time is now!

Fundraising and the Economy

Posted on October 22, 2008 by Admin

Fact is no one knows for certain. But the facts can be very instructive. This is not the first tough economic period the U.S. has experienced and it won’t be the last. To be accurate, giving in gross dollars to charity has risen nearly every year since 1955, with only one year seeing a decline. And during that time the economy has seen some struggles.

Many suggest that this is a particularly tough time not only because of the drop in the stock market but the rising unemployment rate. Together these are a bad mix and it would be hard to argue that. Some have hypothosized that we are also in an election year which will reflect negatively on giving across the sector.

Well, here are some facts…the USA Today recently published an article comparing YTD results of stock market performance since the great depression. The largest market drop measured by % decline in a 12 month period was 1999-2000 when the market dropped 49%. To date, 2007-2008 the drop is about 30%. In 2000 giving increased. Will it also increase in 2008?

In 1999-2000 there was also a presidential election. Giving increased. Will it in 2008?

Most Americans are not invested in the stock market, so does a drop really impact their wealth? Does a drop in the market decrease real wealth or decrease the overall gain made when investing?

Okay, you win there are a lot of questions leaving us to guess. I think giving will increase again, after all one thing we can agree on is this…if the economy is truly bad then the services we provide are more needed than ever and Americans can relate to that!

Your Special Event and the Internet

Posted on October 9, 2008 by Admin

I know. I know. There was a time when even the US Post Office did not exist. But for the purposes of this entry let’s compare more recent history. Can you believe that nonprofit organizations would host an event without using the Internet to get people to attend? Yes, it really happened (and still does). The challenge becomes having expecations of this approach that really are unfair.

How likely is it that your neighbor is going to tell you about the black tie gala he and his spouse are attending next week? Consider, how likely is it that you might recieve an email from a colleague with a link to information about the local “walk to cure something” and would like you to consider sponsoring their effort?

Use of the Internet is exposing us to new ways to reach the next generation of donors…like it or not! Think about how easy it is to send an email to your personal address book. What could be better than your trusted colleague sharing something they think might be important to you. It is not likely that yourfriend@myfriend.com is being filtered as spam. It is likely that your local Memory Walk or Race for the Cure is using this approach and it is no accident they have thousands of walkers 35 and younger.

As you prepare for your next event, stop and consider how the Internet can have an impact. Feel free to “send” your thoughts and stories to me.

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