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Donor Cultivation

Do Your Homework, Sit Still and LISTEN

By | All Posts, Donor Cultivation, Fundraising, Major Gift Solicitation, News You Can Use, Organizational + Personal Development, Prospect Research, Volunteers | No Comments

Jeffrey D. Byrne, President + CEO

We know to do our homework on prospective donors. You’ve heard me say time and again “Don’t commit fundraising malpractice!” (See my blog piece on the benefits of prospect research here.)That means do your research – because it reveals information about the wealth and capacity of prospects as well as information about philanthropic giving history, community involvement, natural partners and connections. And your donor database should contain important notes about your prospects and interactions with them. Prepare for your visit.

Sitting still tells your audience you really care about what they should say. Don’t shuffle your papers. Don’t check your phone. Don’t fidget. Sitting still lets you hear what your prospective donor should tell you about their life story and experiences – maybe even how a single instance changed their life. You can learn why they are passionate about your organization and its mission.

I believe in order to be a great fundraiser, you have to be a good – if not great – listener. Human nature might urge you to fill quiet moments with a remark or an anecdote. Of course you are nervous, and anxious to impress. You certainly want to make a connection you can build upon later. But it is in those quiet moments that you, as a volunteer or professional, can learn the most.  Waiting for the prospective donor to share might result in hearing firsthand how your healthcare institution saved their life. You might learn a relative was a long-time volunteer. You might learn how an agency similar to yours provided their mother with safety and refuge from domestic violence.  Resist the urge to talk about yourself.  Ask prospective donors about themselves…and then listen to what they say. Some good lead-ins might include:

  • “Tell me more about that …”
  • “What did she/he say about that…?”
  • “What happened next …?”
  • “What made you decide to …?”

You get the idea. You can think up your own list of “conversation engagers” that will help you get to know your prospective donor and involve them in the meeting. The bottom line is this: regardless of with whom you are meeting, when you get your prospective donors talking about themselves – when you ask about them – your prospective donor will come away from the visit feeling much more satisfied and positive about you and your organization than if you had used the time trying to tell them the 50 wonderful things you are doing to make a difference.

However, all of this doesn’t mean you should not educate your listeners about your organization and your mission. I’d suggest you use the 80/20 rule. Inform 20 percent of the time and LISTEN the other 80 percent.

In training staff and volunteers to make major gift solicitations, we place considerable emphasis on setting the appointment, sharing the vision and asking for the gift. Think about all the times we practice the script for the call or role-play the visit.  But how often do we practice listening? If you have volunteers who are reluctant to go on solicitation calls, think about how can coaching them on listening style can help them overcome their jitters about making the “ask.”

And finally, care about what’s being said and commit it to memory. Make notes when you leave if you need to capture details. This kind of active listening and remembering stems from truly caring about the donor. Don’t let the lure of a gift keep you from truly caring and listening to the prospective donor’s words. If you are listening and caring (and, of course, remembering to ask for the gift,) the gift will come.

Is Your Ask Using the Right Emotional Messages?

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Editor’s Note:  We are pleased to introduce Grant Gooding of Proof Positioning as a guest contributor. Grant cut his teeth in the mergers and acquisitions world which gave him an uncommon, macro understanding of the hard and soft components of businesses and market transition. He took his knowledge of analyzing hundreds of businesses to consult with entrepreneurs, mostly inventors, to help them shape their brands relative to the market landscape. He then took this concept to the next level creating Proof Positioning in 2012 where he integrated consumer insights research into his market based brand process, allowing him to use statistics to show organizations what they can say to close more business.

When making an ask, taking into consideration the different emotional and psychographic idiosyncrasies of your audience can make all the difference.

Although we like to believe we are highly logical beings and use mostly logic when making decisions, neuroscience has debunked this once widely thought presumption and taught us that all our decision making, regardless of its subject and value, resides in our emotional brain.  The money and time that we give to charities and nonprofits is no different.  This being the case, understanding and measuring those emotions is especially important when considering asks to potential and existing donors.

This was evident in a study where our firm was charged with understanding minority population giving motivations for a fund.  We discovered clear trends that allowed our client to make gentle shifts that increased the emotional resonance and engagement of donors.  While there were many takeaways from this study, one simple, yet fascinating discovery was around the different emotionally resonant value propositions of male vs. female donors.  These are some high-level findings and recommendations from that study:

Women:

The data showed very high emotional resonance of three specific value propositions (i) the organization’s reputation (25% higher than men); (ii) the outcomes the organization has achieved (25% higher); and (iii) the transparency of administrative costs (15% higher).  Based on this data we suggested the organization segment its donor database and send separate communications (email, social, event, etc.) to men and women. Some of our recommendations included:

  • Highlight the reputation of the organization by including specific details around outcomes (either stories or statistics) the programs have achieved.  This was the most important thing to women and we recommended including these “micro-stories” into all non-administrative communication to female donors.
  • Be upfront and provide detail around organizational overhead, program costs and money that goes to the people.  They understand these costs exist and will not only appreciate the honesty but sharing this information will actually increase their emotional engagement.

Men:

The data indicated there were three very DIFFERENT value propositions that resonated with men (i) the organization helped other minorities (27% higher than women); (ii) programs increase quality of life in their local community (12% higher); and (iii) programs impact someone I know personally (8% higher).  We made some recommendations based on this data:

  • Start being more outward and explicit about the organization only helping minorities.  This was the most important thing to men, by far, regardless of the program details or the specific outcomes.
  • Use more donor-centric phrases such as “This will impact your neighborhood,” or “This will help someone that you might know.”  This strategy dramatically increased the probability of creating an ambassador out of a male donor.

The fact none of the top three value propositions were coinciding for men and women was not only shocking to us but to the organization as well.  Based on the data, they were able to make simple changes to their communication strategy and their asks to help better align their messages with the things their donors found most important.

While not every organization has dramatic differences between the sexes, variance exists in every donor population because we are emotional, human beings and we all value different things.  If you consider and measure the emotions of your donors and cater your messages to say the right thing to the right people you will have more successful asks and a more engaged donor population.

Grant Gooding holds a Bachelor’s degree in Business Administration from William Jewell College/UMKC and an MBA with an emphasis in qualitative marketing from The Bloch School of Business at UMKC. Grant also serves as a Board member to both for-profit and nonprofit organizations, including the UMKC Marketing Advisory Board, is an adviser to several startups and is a frequent lecturer, mentor and judge for the entrepreneur community.  Grant is passionate about educating in the areas of entrepreneurship and brand philosophy. You can reach Grant and Proof Positioning by visiting http://proofpositioning.com/.

Top Five Ways Nonprofits Can Use Giving USA

By | All Posts, Boards + Leadership, Capacity Building, Commentary, Current Events/News, Donor Cultivation, Fundraising, Giving USA, Insights, Stewardship, The Giving Institute | No Comments

Giving USA is a powerful tool:  it is the most trusted annual report on the sources and uses of philanthropy in the U.S., but it’s also a valuable resource in helping us improve philanthropy.  Nonprofit organizations can (and should) use Giving USA to help identify trends as well as opportunities to strengthen resource development efforts.

Here are my Top Five Ways Nonprofits Can Use Giving USA to improve their fundraising:

5. Understand the correlations between giving and economic factors
The stock market, personal wealth, personal income, GDP, corporate pre-tax profits and unemployment rates impact giving by all four sources (individuals, foundations, bequests and corporations). Trends are closely monitored by people “inside” and “outside” the philanthropy sector.
Be aware of changes in these indicators, anticipate how changes will impact donors and adjust fundraising strategies accordingly

4. Confirm or dispel myths about giving
Economic and political scenarios, complex societal issues, diverse giving platforms, wealth and capacity are just some of the drivers behind philanthropy.
Understand the context of these drivers, help manage expectations about giving and set realistic and achievable goals

3. Educate Board members, volunteers, donors and staff about the broad context of philanthropic giving
Help stakeholders better understand your organization’s funding patterns and potential

2. Be nimble in your fundraising and stewardship
Nonprofit fundraising must evolve as philanthropy evolves.  We are seeing an increase in the popularity of non-traditional giving vehicles (such as donor-advised funds and non-cash assets) and donors want more evidence of the impact of their gifts.
Listen to your donors and prospective donors – and tailor your strategies to match their needs and expectations

1. Recognize the “individual giving effect”
An estimated 87% of total giving in 2016 came from individuals, bequests and family foundations.
There are human beings involved in every gift; focus on developing and maintaining meaningful relationships

And remember:

Strengthen your case for support:  the best cases are realistic, relevant and compelling while being supported by the facts and clearly communicating the purpose, programs and financial needs of your organization.

Celebrate your impact: Americans give an average of more than $1 billion a day to help others.  Nonprofits and donors are doing great work.

Giving makes a difference, to both giver and recipient, but we can do more.  So spread the word about the good philanthropy has done – and the good it will continue to do.

I encourage you to download the two traditional pie charts illustrating 2016 source contributions and recipients and share with Board members, your CEO and development staff.

View JB+A’s recap of Giving USA 2017  findings here.

Check out key takeaways from Dr. Rooney’s 2017 Giving USA presentation in Kansas City.

About Giving USA
For over 60 years, Giving USA: The Annual Report on Philanthropy in America, has produced comprehensive charitable giving data that are relied on by donors, fundraisers and nonprofit leaders. The research in this annual report estimates all giving to all charitable organizations across the United States.  Giving USA is a public outreach initiative of Giving USA FoundationTM and is researched and written by the Indiana University Lilly Family School of Philanthropy. Giving USA FoundationTM, established in 1985 by The Giving Institute, endeavors to advance philanthropy through research and education. Explore Giving USA products and resources, including free highlights of each annual report at its online store at www.givingusa.org for more information.

About The Giving Institute
The Giving Institute, the parent organization of Giving USA FoundationTM, consists of member organizations that have embraced and embodied the core values of ethics, excellence and leadership in advancing philanthropy. Serving clients of every size and purpose, from local institutions to international organizations, The Giving Institute member organizations embrace the highest ethical standards and maintain a strict code of fair practices. For information on selecting fundraising counsel, visit www.givinginstitute.org. Jeffrey Byrne has the honor of Chairing The Giving Institute Board of Directors (2015-2017).

Donor Relationships: transform donors into partners

By | All Posts, Annual Giving, Donor Cultivation, Major Gift Solicitation, News You Can Use, Stewardship | No Comments

Bruce Broce, M.A., Vice President

 A Board member once asked me if I considered our philanthropic supporters to be “donors” or “partners.” I answered by saying they ideally should be both. Every nonprofit has donors, but the really successful ones expand their relationship with their constituents beyond the financial plane and nurture them as partners who can help move forward the organization’s mission.

When it comes to fundraising, nonprofits tend to allocate the majority of their time and energy on acquiring donors. But let’s be honest, not nearly enough time is spent thinking about how to retain donors, and that’s a missed opportunity. Being a donor has become part of our daily lives; think about how frequently you’re asked to support something. Whether it’s donating $1 at the pet store when checking out, or buying a begonia to help your neighborhood school, charitable giving is often reduced to a transaction instead of being a meaningful, participatory and ongoing experience. Oftentimes, what distinguishes a philanthropic experience is what happens after a donation is made.

Your organization would be well served to review what processes are set in motion when donors make gifts. Because donors can feel like an organization’s checkbook, use the stewardship phase to further educate and engage donors. This helps them better understand the impact of their gift and prepares the groundwork for them becoming partners the next time they enter the donor cycle. Impactful and transformational giving occurs when a donor sees a partnership as the natural outcome of your relationship and the basis for how their philanthropic investment will meaningfully impact your organization.

Keep in mind that the tools that were initially used to attract and cultivate prospects tend to be set aside once they’ve become donors. You would be surprised how a donor’s perspective changes once they understand how their gift has impacted your organization. I once gave a “thank you tour” of our program, which was essentially the tour we gave prospective donors at the onset of cultivation. However, because the donor now possessed a deeper understanding of our services being offered, she said she could better appreciate the work being accomplished by our staff. As a result, her giving increased and she became an advocate of our organization within the community, championing us to potential new donors. In other words, she transitioned from being a donor to becoming a partner who was vested in the success of our organization.

A comprehensive fundraising program is as strategic and genuine in its thanks, appreciation and ongoing engagement as it is in its solicitation. Make sure your organization has a carefully designed program of acquisition, retention, stewardship and ultimately involvement of your key donors. These elements are critical to strengthening relationships with the donors you already have, and ultimately, creating lasting partnerships from which your organization will benefit.

Just Ask.

By | All Posts, Annual Giving, Donor Cultivation, Fundraising, Major Gift Solicitation, News You Can Use, Prospect Research | No Comments

Saber Hossinei, Coordinator of Administration + Consulting

Have you seen those shirts with JUST DO IT across the front? It certainly makes for a catchy phrase, but the meaning behind it is so much more than that. It’s a message of action. Regardless of one’s condition, level of experience or ability, don’t forget what’s truly necessary: action. And with action, come results.

In my background with sales and sales training, the recurring obstacle for many of the trainees I worked with (rookie and veteran salespeople alike) was “making the ask.” How is it that most folks can be trained to do an excellent job with all aspects of the sales process, yet drop the ball when it comes to asking for the sale? Anecdotally, I can tell you that the best sales reps had the opposite problem. They weren’t great planners or polished presenters, but they asked for a sale with each and every visit, and as the saying goes, even a broken clock is right twice a day.

Recently, I had the privilege to serve on the silent auction subcommittee for a nonprofit’s annual gala fundraiser. It was my first time in such a role, and in fact it was my first time ever asking for donations. Armed with just a letter about the event and a donation request form, I hit the street and went door to door in a shopping center to ask for donations. Of course, I was very excited to receive a nice item from the first business I approached, and by the end of my walk, I had received not only merchandise and gift cards for the silent auction, but also referrals to other businesses to solicit for donations! The bottom line is, I might have felt poorly prepared, but by showing up and asking for donations, I received them.

I am certainly not making a case against proper and thorough preparation for solicitations. The qualification, cultivation and solicitation process with prospective donors is critically important, and today, we have many valuable resources readily available to help us develop strong strategies for relationship-building with our prospects/donors. (Check out Jeffrey’s article “Don’t Commit Fundraising Malpractice” about how nonprofits should “do their “homework” on prospective donors.)

But nonprofits suffer when leadership, staff and volunteers are reluctant to “make the ask,” or want to wait until everything is “perfect.” Don’t get “paralysis by analysis.” Your Boards, staff and volunteers should be taught that making an “ask” is not only the most important element in obtaining donations, but it is also the right thing to do. You owe your supporters action, your potential donors the opportunity to support your cause and you owe those who benefit from your nonprofit your best work! JUST ASK.

The “Case” for the Case for Support

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By Heather Ehlert, Vice President of Client Services

For most of us, speaking confidently about our organization’s mission comes naturally. But we can best respond to the question “Why should I donate or support your organization?” after we’ve gone through the process of developing a Case for Support.  Good advocates for any organization – Board members, Executive Directors, fundraisers and program and administrative staff – will not only fully understand the Case for their organization, but will be able to eloquently share it.  This is just one reason why a strong, well-developed Case for Support is essential to your organization’s fundraising success.

Case for Support – just what is it?

The Association of Fundraising Professional’s Fundraising Dictionary defines the case for support as “the reason why an organization both needs and merits philanthropic support, usually by outlining the organization’s programs, current needs and plans.”  “Case for Support” is also a broad term, often encompassing many different end uses. Variations of an organizational Case for Support can be developed for specific types of fundraising activities – such as a Fundraising Feasibility Study (concept paper) or Capital Campaign (campaign brochure). These pieces incorporate the general summary of the organization’s activities and purpose plus items that are specific to the fundraising effort in which it will be used.

What’s your “Case” for the Case?  

A Case for Support is much more than an informational brochure that you leave with donors. It should be required reading for every one of your organization’s advocates. This includes your staff, Board members, volunteers and anyone else who could be speaking on behalf of your organization.

Aside from functioning as an educational tool, the Case for Support is the foundation from which all marketing and development collateral is based. It could be used for developing materials for an annual campaign, special event or as supplemental information for government grant and foundation proposals.

The Case for Support should be used as part of the recruitment process for new Board members and other key volunteers, in staff orientations and training events, for internal committees who may be looking at expanding or changing the types of services offered to the community and as part of the strategy when educating public officials about the organization’s role in the community.

These are just a handful of ways that a Case for Support can enhance your organization.

What goes into a Case for Support?

Before you get started, ask yourself  – Why does your organization exist? What do you do? Whom do you serve? What makes your organization unique? Your answers provide the core elements for your Case that will define your role in the community. Some critical elements that should be included in the “Case for Support” include the following:

  • Your mission (or purpose statement) and how it creates passion in your staff, Board members and volunteers
  • Your organization’s vision, values and long-range plans; your goals
  • A history of your organization, including “founding families” and other milestones
  • A listing of programs and services that you provide to the community
  • Descriptions of your programs/services stated in terms of the impact they have had in your community over the last three years, and your projected impact in the near future (number of people served, outcomes achieved, economic impacts or impacts stated in other terms that are consistent with the mission and goals of your organization)
  • Your financial strength, or capacity to do the work you do – this demonstrates your financial stability and good stewardship of donors’ funds
  • A list of board members, other key volunteers, staff and donors

The first of JB+A’s Six Criteria for Success in fundraising is A Case for Support that is Realistic, Relevant and Compelling. A fact-based and compelling story will have urgency, significance and appeal.  An effective Case for Support is specific in scope and will clearly communicate the purpose, programs and financial needs of the organization.  It will explain why the organization seeks funding and will demonstrate potential benefits to stakeholders.

Facts are all well and good, but be sure to use these facts to tell a human story that moves people to get involved. Speak to a supporter of your organization and find out what they love about your mission. Interview an individual served by your organization – what does it mean to them to have this resource in the community?

A short, sweet and compelling Case is your key to success. Put yourself in your prospective donors’ shoes and ask yourself, “What would YOU want to know in order to drop everything and help them make a difference?”

Time, Talent, and Treasure: Part Three of a Three-Part Series

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By Katie Lord, Vice President 

In this series we have examined both “Time and Talent” as it relates to the “Time, Talent, and Treasure” paradigm in nonprofit donor management and cultivation.  This final segment of “Treasure” is often the one that we, as nonprofits, are most interested and influenced by because it affects our pressing financial goals.  It can often be to our detriment to focus too much on “Treasure” and, in so doing, approach our donor’s “treasure” in a transactional way, without respecting and acknowledging generational differences and preferences of how to cultivate the gift of “Treasure.”

When approaching our donors about giving their “treasure,” remember that in order to create lasting bonds and build solid, long-term relationships we must have conversations with our donors about their “time” and “talent,” which they may also be willing to give.  Research has consistently shown that donors who give treasure combined with time or talent are much more engaged for longer periods of time.  Through the combination of treasure, time and talent, it becomes easier to steward our donors through extended communication and demonstrations of their efforts and how it impacts the overall mission of our organizations.

What is Treasure?

“Treasure,” as it relates to the big three of “Time, Talent and Treasure,” often seems to be the easiest to define and measure by most common practices.  What is treasure, if not the dollars that our donors donate to us and invest in our cause?  Treasure is the easiest to track, as most of us have systems and processes in place to receive, acknowledge and report donations to our organizations and Boards.  It is important to note that the very experience of giving treasure can make or break repeat donations, but that is for another article.  As we take a closer look at “treasure,” the generational differences about how treasure is given are vast.  By acknowledging these differences, we are better able to meet the needs and expectations of all of our donors which ultimately benefits our organizations in the broadest and best possible way.

Generation to Generation: The Boomers

When beginning to examine the generational differences in the giving of “treasure” it is easier to look first at the Baby Boomers.  We have the most experience and data for this generation to date and their giving habits have influenced our sector greatly. However, the giving of this generation, and its long hold as our most generous treasure givers, has not prepared us for the shifts we are seeing in the giving habits of other generations.

Boomers often give their “treasure” first and their “time” and “talent” second.  This post-war generation grew up knowing about the sacrifices their parents made for the war effort.  Sharing their “treasure” with their neighbors and country was ingrained in them from an early age.  Giving was an accepted expectation and giving on any level was appreciated.  This is a generation that does not expect major fanfare for their giving efforts, but who do value the donor acknowledgement in a timely fashion

For many Boomers the motivation to give to organizations that matter to them is “because they always have,” often to the point they may not even know why they continue to donate years later.  A perfect example of this is my own mother.  My mother gives to an organization that was important to her mother and she has kept up the tradition.  When I asked her why she still gives to them, even though her own giving priorities are different, her answer is “because it was important to my parents and I just always have.”

Boomers have been your most loyal annual fund donors by focusing their “treasure” on annual gifts.  Many Boomers are past the prime of their peak giving years, but many continue to work and still have large amounts of “treasure” to give and share.  Boomers appreciate being “cultivated” for their gifts in traditional ways with personal visits, on site tours and communication from staff.  As Boomers are starting to age and to live on fixed incomes post retirement, now is the time to focus on planned giving and legacy contributions with this generation.

The Gen Xers

Gen Xers, on the other hand, are truly in the middle between Baby Boomers and Millennials and exhibit far more balance in their “treasure” giving.  They usually have three to five causes that are important to them based on personal experiences or interests.  They give to organizations not only their “treasure,” but also their “time” and “talent.”  Gen Xers are a generation where all of their treasures and giving work together to make the biggest impact they can in areas of greatest interest and need.  They saw the giving of their parents, but want to be less passive in the giving of their “treasure.”  Therefore, Gen Xers combine their dollars with time and board service; staying longer term with their organizations than the Millennial generation.  Your Gen X givers will want to see their impact of “Time, Talent, and Treasure” in different ways through annual reports, metric measurements against goals and objectives and how it all relates to a long term strategic plan.

The Elusive Millennial

Millennials, on the other hand, give completely differently than Baby Boomers or Gen Xers.  They first like to give their “time” and then, if they see an impact, their “treasure.”  This is partly because Millennials are not currently in their highest earning years, but also because they value their “time” as a commodity and therefore part of their “treasure” to give.  Through stewarding Millennials to give “time” and then a follow-up with a small gift solicitation, you have a better chance of slowly upping their giving over time with incremental moves illustrating their impact and value immediately, while simultaneously capturing their longer-term attention.

Another unique trait of Millennials is that they are very social in their giving; supporting causes of friends and expecting their friends to support them and their causes in a reciprocal way.  Thus, Millennials are perfect for peer-to-peer giving campaigns.  They usually have large social and business networks that they are comfortable tapping into and their competitive nature is a strong incentive.  When soliciting “treasure” from a Millennial, more weight is given by them on who is making the ask of them at the beginning of cultivation and how it makes them feel versus the facts and figures of a campaign.  Due to their lower disposable income at this time and their social giving tendencies, Millennials disperse their “treasure” to many organizations in smaller gifts.

A word of caution when working with Millennials; even though they are not currently in their highest earning years, they will be at some point.  Millennials have a short attention span, but a long memory.  They often devote themselves to organizations for several years and then switch causes.  It is important to show them appreciation through acknowledgement, an opportunity to become more involved through junior board service or the achievement of higher levels of knowledge and responsibility in service to the organization.

Conclusions

In closing, as with “Time” and “Talent,” the giving of “Treasure” differs among the three current generations and each has their own unique nuances.  By understanding and recognizing that solicitations and approach for each generation should be different, you allow your organization to cultivate and steward your donors by meeting them where they are.  Baby Boomers, Gen Xers and Millennials have differing interpretations of the nonprofit paradigm of “Time, Talent, and Treasure.”  We, as fundraising professionals for our organizations, must adapt to the expectations, current economic state, and personal interests of our multi-generational donor base in order to cultivate long-term, consistent donor relationships and financial growth for our organizations.

 

 

 

The Results Are In: 2016 U.S. Trust Study of High Net Worth Philanthropy

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ustrust_bulletinlogo_140820Editor’s Note:  The 2016 U.S. Trust® Study of High Net Worth Philanthropy, in partnership with the Indiana University Lilly Family School of Philanthropy, reports the giving patterns and priorities of America’s wealthiest donors and provides valuable insights into the strategies, vehicles and approaches that can make giving more effective. This Study is a continuation of the 2006, 2008, 2010, 2012 and 2014 reports. 

Results are based on a nationwide sample of 1,435 responding households with a net worth of $1 million or more and/or an annual household income of $200,000 or more. For the first time, the study includes a deeper analysis based on age, gender, sexual orientation and race.  The Study offers comprehensive information on the charitable giving and volunteering activities of high net worth households that will apply directly to our Kansas City philanthropic endeavors. 

This past June, JB+A partnered with U.S. Trust and the Indiana University Lilly Family School of Philanthropy to present Giving USA 2016:The Annual Report on Philanthropy for the Year 2015.  We are pleased to continue to share valuable information that complements Giving USA data and can be used by nonprofit professionals, donors, volunteers and others interested in promoting philanthropy.

What did we learn?
The Study reveals that giving levels remain high and the future looks bright, supported by several findings:

  • The vast majority are giving: Last year, 91% of high net worth households donated to charity compared to 59% of the general population of U.S. households.
  • They are spreading the wealth around: on average, wealthy donors gave to eight different nonprofits last year with donors over the age of 70 giving to an average of 11 organizations.
  • These households plan to give as much or more in the future: 83% of wealthy donors are planning to give as much (55%) or more (28%) in the next three years than they have in the past.
  • Time is also treasure: these high net worth households also demonstrated their commitment to charitable causes through volunteering.  50% of wealthy individuals volunteered their time to charities they support. This is twice the rate of the general population (25%).

Motivations to Give
While there is an assortment of reasons motivating high net worth philanthropy, the following were cited as the top motivators for giving in 2015:

  • Believing in the mission of the organization – 54%
  • Believing that their gift can make a difference – 44%
  • Experiencing personal satisfaction, enjoyment or fulfillment – 39%
  • Supporting the same causes annually – 36%
  • Giving back to the community – 27%

Only 18% of the respondents cited tax advantages among their top motivations for giving compared with 34% who cited this as a motivation in 2013.

What do high net worth donors want?
Donors have strong feelings about how their donation should be used. They feel that nonprofit organizations should:

  • Limit the amount of the individual’s donation that is spent on general administrative and fundraising expenses – 89%
  • Demonstrate sound business and operational practices – 89%
  • Acknowledge donations by providing a receipt for tax purposes – 88%
  • Not distribute their names to others – 84%
  • Send a thank you note – 61%

“This year’s Study reinforces that our wealthiest donors are engaged, willing and eager to give,” says Jeffrey Byrne, President + CEO of Jeffrey Byrne + Associates, Inc.  “with nearly half the wealthy individuals surveyed indicating that charitable giving has the greatest potential for impact on society, it is up to us – the fundraisers and nonprofit professionals – to connect, cultivate and steward these individuals.”

The study also highlighted several key findings regarding volunteerism amongst high net worth individuals.

“A significant finding from this year’s study is the correlation between volunteerism and giving” said Lewis Gregory, CAP, Senior Vice President, Institutional and Private Client Advisor for U.S. Trust in Kansas City.  “A high percentage of wealthy individuals give financially to the organizations with which they volunteer. They also give 56% more on average than those who do not volunteer. I hope this inspires nonprofits to appreciate and cultivate their volunteers on a whole new level.”

Other Key Takeaways
And the winner is:  basic needs organizations.  While many of the nonprofit subsectors benefited from increased contributions from high net worth donors in 2015, basic needs was the clear front runner.

  • 63% of high net worth households gave to basic needs organizations
  • Religion received the largest share of dollars (36%) – more than basic needs (28%), higher education (8%), health (7%) or the arts (5%).
  • The highest share of high net worth households also prioritized education as the most important current policy issue (56%) ahead of poverty (34.6%) and healthcare (33.8%).
  • New research: There’s no better time than election season to study the political giving behavior of high net worth individuals.  The study found:
    • One out of four wealthy individuals contributed to a political candidate in 2015 or planned to do so in the 2016 election cycle
    • Donors over the age of 70 (40%) and LGBT individuals (38%) were more likely to give to a political candidate or campaign
    • The top three public policy issues that matter most to wealthy individuals are health care (29%), education (28%) and national security (27%), closely followed by the economy (26%)

To access the full 90-page report, visit www.ustrust.com/philanthropy.

Growing Popularity of Donor-Advised Funds: Fidelity Charitable Gift Fund Tops Philanthropy 400

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photo_73754_landscape_370x247This year’s release of the Philanthropy 400 confirmed what many nonprofit professionals have suspected over the past few years – the way we give and the way we raise money is changing. In The Chronicle of Philanthropy’s annual ranking of nonprofits that raise the most from individuals, Fidelity Charitable Gift Fund claimed the number one spot collecting $4.6 billion in 2015. Fidelity Charitable Gift Fund is an arm of asset-management firm Fidelity Investments. In the 25 years since its launch, it has become one of the biggest grantmakers in the country awarding $3 billion to nonprofits in 2015. In the last year alone, Fidelity donors have recommended grants to over 106,000 charities, with over 220,000 nonprofits supported since its inception in 1991.

A year ago, as we celebrated our 15th anniversary of nonprofit fundraising success, JB+A hosted speakers Matt Nash, Senior Vice President of Marketing and Client Experience at Fidelity Charitable, and Debbie Wilkerson, President and CEO of the Greater Kansas City Community Foundation, in exploring the role of donor-advised funds in the powerful future of philanthropy.

Jeffrey, Matt and Debbie “unshrouded” some of the mystery surrounding donor-advised funds by explaining the dynamics of donor and fund relations, the benefits to donors who use donor-advised funds and the continued need for donor stewardship. (Check out the JB+A anniversary event here.)

Fidelity’s top standing in the annual ranking is significant:  it is the first time an organization that primarily raises money for donor-advised funds has held the top spot. It’s also worth noting United Way has consistently held the top spot and has been usurped only twice since the list started in 1991. This year, United Way saw a 4% drop in funds raised while Fidelity saw a 20% increase.  Fidelity credits its rise to the top to investments in technology, claiming its online platform has turned charitable giving into an easy digital transaction that allows for more transparency and easier record keeping.

But not everyone is celebrating this trend. Critics of donor-advised funds argue money can sit in these accounts for years, but could be used for critical causes now. Others say these funds look to the future by offering donors alternative ways to be charitable. Despite all the differing perspectives surrounding donor-advised funds, data shows they aren’t going anywhere and are quickly becoming an attractive option to the modern, busy donor.

Therefore, it is critical for nonprofit professionals to understand donor-advised funds, remain aware of trends and data and learn how to make this giving vehicle part of their fundraising efforts. For both donors and nonprofits to fully benefit from the powerful capacity of donor-advised funds, JB+A recommends focusing efforts in three areas:

  1. Creating a culture for investment.

The movement happening in local and federal government will affect what we do in daily practice. We need to carefully follow these happenings and advocate for policy that supports a culture of long-term giving.

  1. Providing donors with options.

By offering different mechanisms or vehicles for giving, we can encourage charitable giving and facilitate the process in a way that is comfortable for donors. We especially need to capitalize on new technologies that enable maximum giving potential such as the giving widget, which encourages giving on a nonprofit’s website through a donor-advised fund.

  1. Continuing to tell our stories.

As donor-advised funds grow in popularity, we must remember that behind these giving vehicles, there are people. In fact, 92% of donor-advised funds are not anonymous, so we must engage these stakeholders by sharing stories of all the good works nonprofits do.

#GivingTuesday: Is your organization ready to roll?

By | Donor Cultivation, Events, Fundraising, Social Media | No Comments

giving_tuesday_logostacked-2016Now entering its fifth year, #GivingTuesday is officially a global charitable movement. Celebrated on the Tuesday after Thanksgiving, following the consumer frenzy of Black Friday and Cyber Monday, #GivingTuesday is a day dedicated to giving back.

It’s a simple idea with an enormous impact. Fueled by the power of social media, #GivingTuesday brings individuals and organizations together online where missions can be shared and donors cultivated. Last year, 700,000 people donated over $116 million in one day through one medium – social media. It’s an innovative and creative way to kick off the charitable season and raise awareness for your organizations’ mission.

If your organization is participating in #GivingTuesday this year, then you have already started pushing this on social media and your followers are ready to go on November 29. You may have a specific project that has #GivingTuesday appeal, or you just want to raise general funds.

Here are a few tips to make sure you get the most out of this annual day of giving:

  1. Set Goals – Do you want to raise awareness?  Attract volunteers?  Raise dollars for a specific program?  Clearly defining your goals will help you map out tactics and plan your messages.
  1. Plan your Tactics/Messages – Write your tweets and posts in advance and work them into a timeline.
  1. Assign Roles & Responsibilities – depending on the complexity of your campaign, make sure your staff is in place to execute your plan and clearly defined roles and responsibilities are in place.

If you are just starting out with #GivingTuesday, be sure to read our #GivingTuesday Guide which includes great tips for building a plan from scratch. If you’re new to #GivingTuesday, set your calendar for November 29 and take this opportunity to observe how other organizations utilize this innovative fundraising opportunity. We’re sure you will come away inspired and ready to go for 2017.