Sold Out! How to Annoy Your Donors

I recently received an invitation for a fundraising event that had the standard ticket prices already sold out. As a donor that supported the organization in the past, what do you think my response was? Not a positive one – that’s for sure. In fact, it made me feel unappreciated. I felt that as a donor, they did not value me enough to engage me at the level I was accustomed to. And it made me wonder: Who are the people who got the tickets first – and why was I not on the list? That’s not the type of response you want your donors to have.

WAKE UP CALL: Don’t isolate your donors and jeopardize your relationship with them. Show them that you value them and provide opportunities for them to give at the level they are comfortable with.

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Red Rooster Group is a New York based graphic design firm that creates effective brands, websites and marketing campaigns for nonprofits to increase their visibility, fundraising and communications effectiveness. Contact us at info@redroostergroup.com.

Empowerment Zones Channel Funds to Those in Need

Giving zones among suggestions in Community Foundation Network’s manifesto
Major donors should pay less tax if they make donations to charities based in disadvantaged regions, according to the Community Foundation Network.

The network represents charities that support local communities. The recommendation is one of 29 made in its Manifesto for Community Philanthropists, published this week. 

The manifesto proposes the creation of ‘special giving zones’, modelled on social exclusion zones, that would encourage investment in services to disadvantaged communities. Any individual or company giving to charities that work in these zones would get favourable tax treatment.

Other recommendations include the creation of bank-gifting accounts to simplify giving and a £30m philanthropy infrastructure investment fund to help smaller charities set up online donation systems.

Stephen Hammersley, chief executive of the network, said the manifesto was drawn up to promote grassroots giving. “Community charities need to receive independent and sustained funding,” he said. “The manifesto is an exploration of possible ways they can achieve that.”
Matthew Bowcock, chair of the network, said: “I strongly urge all political parties to take a long, hard look at our recommendations

This article from ThirdSector discusses a new concept in Britain to help channel more money to those that need it. This solution addresses a growing concern in the United States as well that lower-income populations are not being served well by nonprofits.

Call to give philanthropists tax breaks when they donate to poor areas

Major donors should pay less tax if they make donations to charities based in disadvantaged regions, according to the Community Foundation Network.
The network represents charities that support local communities. The recommendation is one of 29 made in its Manifesto for Community Philanthropists, published this week.Continue reading

Sponsor me on the Hazon Ride

Help me reach my goal of raising $10,000.

Sponsor me in Hazon’s fundraising bike ride by contributing to a great cause.

Hazon is creating a new dialogue about food sustainability and is creating awareness about where our food comes from, and creating and supporting farming and cooperative food initiatives to connect people with local farmers.

As you may know, I have supported this cause for several years. I am on the Steering Committee for the second year, I started Team Brooklyn, and have donated much time and money to Hazon’s cause of creating a more sustainable world. This year, I have personally matched $1,861 in donations.

Please support me in my goal of raising $10,000 to support Hazon’s important work by making a donation.

Find out more and make your donation here.

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Clients to Tell Their Stories in Direct Mail Cards

CLIENT: ProLiteracy

Direct mail packages that come in standard business size envelopes are identifiable as fundraising solicitations from a mile away. So the question is, how do you get the recipient to open the package, and once the package is opened, how do you appeal to donors?

When ProLiteracy asked us for recommendations to improve the effectiveness of their direct mail, we looked at their existing package. We suggested using a different size envelope that would stand out. And instead of a lengthy letter describing people’s stories, we suggested using cards that let the people tell their own story for more immediacy and a stronger emotional appeal. And since a picture is worth a thousand words, we suggested separate cards that feature the photo of the person on one side. They used our recommendations to create a package that stands out in the mail and gets their message across in a compelling way.

Fair Representation of Nonprofits Needed

A recent article in The New York Times, Charities Give to State Campaigns, Despite Law, described how some nonprofits had purchased tickets to fundraising dinners for elected officials, or had otherwise contributed to their campaigns, in violation of the law. Neither party seemed to care or take responsibility, pushing off oversight to the IRS. The article acknowledged that minor amounts entailed, and yet found it fit to disparage nonprofits on the front page.

I find this quite disturbing for a number of reasons.

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Staying Strong in Weak Times

EHL Consulting Group, fundraising consultants, share the following lessons and observations regarding the US philanthropic marketplace.

Four Important Lessons Learned
The combination of the severe recession, coupled with the Bernard Madoff debacle, has made headlines and brought fear and deep anxiety throughout the nonprofit sector. There are a number of critical lessons that should guide us all going forward:

1. Few individuals or organizations are immune from current difficulties. Reflect compassion and a commitment to move ahead strategically to maintain your place and position in the community.

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FUNDRAISING: Lessons from a Charity

Amidst all the recent financial gloom and doom, I thought it’s worthwhile to report a blip of good news on the fundraising front and relate the lessons that can be learned from it. The New York Times reported today that its Neediest Cases Fund has increased its contributions significantly over last year. The number of donors has jumped 53% from 2,955 to 4,518, and the fund is $500,000 ahead of where it was this time last year (a total of $3.7 million was raised so far). Apparently the heightened awareness of the needs of those living in poverty has touched the middle class, despite their own financial concerns.

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FUNDRAISING: Lift the Limits on Low Overhead Ratios

This entry is in response to an op ed piece by Nicholas D. Kristof in the New York Times on December 24, 2008: The Sin in Doing Good Deeds.

Easing our insistence on low overhead ratios for charities, will help them to co-opt the profit motive. One reason that nonprofits are not as effective with their own in fundraising is not specifically the profit motive, but the fact that the public insists on nonprofits maintaining low overhead ratios (such as 85%). On the face of it, it makes sense that donors don’t want to see their money spent on administration or fundraising costs – they want it to go directly into programs.

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Acknowledging Sponsors Names in Programs

How do nonprofit organizations address long sponsor names in their programs?

As more nonprofits turn toward individual and corporate donors, they face the issue of how to acknowledge these contributors often in contexts that do not easily accommodate long naming formats.

Red Rooster Group recently worked with a nonprofit organization that had multiple tiers of sponsorship naming — the entire building as well as specific wings of the building, its departments and individual programs, as well as a book series — all named after people.

Their series of brochures, are typically named for their respective programs. Given that these sponsors names, some of which were quite long, had to appear in the nameplates of the various publications, a plan was needed in order to handle them appropriately.

We identified the following three considerations for addressing sponsorship names:

1.  Political – how the name is treated based on the donor’s request balanced with the needs of the organization. The size of the donation, the clout and influence of the donor, and the need and fortitude of the organization will come into play.

2.  Relative – the size, nature and payout of the donation relative to other contributions for that organization. It is easiest to set up this hierarchy before soliciting contributions in order to set the standards for the appropriate recognition and treatment of sponsors’ names.

3. Logistical – the practical considerations that will determine how a sponsor’s name is treated. Each media will tend to have its own limitations. Building names, for example, may require a significant capital investment and have a fairly long lifespan, while links from an online recognition can provide quick means additional information.

TRENDS: The Grantmaking Gap

NEWS FROM GRANTMAKERS FOR EFFECTIVE ORGANIZATIONS

Most foundations are not making changes they and their grantees say are essential to supporting nonprofit success, but there is evidence of a gradual shift to more nonprofit friendly grantmaking practices, according to a new survey from Grantmakers for Effective Organizations.

The research, conducted by Harder+Company Community Research, was the second-ever comprehensive survey of the attitudes and practices of all staff ed grantmaking foundations in the United States. It builds on a similar study conducted in 2003 by the Urban Institute in partnership with GEO.

Principle Findings

There is a pronounced disconnect between the ways in which grantmakers are supporting nonprofits and what nonprofits say could contribute most to their success. Further, many grantmakers have not adopted practices that they themselves see as important for effective grantmaking.

In focus groups through GEO’s Change Agent Project and in surveys conducted by colleague organizations, nonprofit leaders have consistently pointed to two critical areas where changes in grantmaker practice can lead to better support for nonprofits:

  1. Improving the type of financial support grantmakers provide, and
  2. Building a more productive relationship among grantmakers and grantees. GEO’s survey found that while by and large progress is slow, there is evidence of a growing movement among some foundations to provide better support for nonprofits.
WAKE UP CALL: It’s time for funders to recognize the importance of supporting capacity building.

Also see the post: Valuing Intellectual Capital

Red Rooster Group IconRed Rooster Group is a New York based graphic design firm that creates effective brands, websites, and marketing campaigns to increase your visibility, fundraising, and communications effectiveness. Contact us at info@redroostergroup.com.

Doing More with 'Enough'

In light of current economic conditions, the nonprofit sector can’t afford to continue in a “business as usual” manner. This was the message that NYU Professor Paul Light delivered at the 6th annual conference of the Connecticut Association of Nonprofits. His keynote reflected the event theme of “Sustaining Nonprofits, Strengthening Communities.”

“We’re the first to go into a recession and the last to come out,” said Light, who is also Nonresident Senior Fellow at the Brookings Institution. To that end, he recommended the following paradigm shifts:

  • Greater state support. Grant money is appreciated, but state funds also need to help cover capacity building. Nonprofits can’t be expected to fulfill their respective missions with grants that don’t support training, marketing, and other critical areas.
  • Sector makeover. Many leaders in the nonprofit arena are getting older and retiring—and young people aren’t clamoring to take their places. The nonprofit world needs to shed its stodgy, ascetic image to attract innovative young minds.

As the global community prepares to tighten its belt, everyone talks about the need to “do more with less.” Light argues that it’s time that nonprofits have the opportunity to “do more with enough.”

WAKE UP CALL: What steps can we take to increase state support and to attract the fresh talent we need?