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Not For Profit

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Not For Profit

“The future of fund raising isn’t a topic that usually conjures up visions of Star Wars. But that might be changing with two academic efforts testing robot solicitors on three continents.

Tim Pryde, a 21-year-old product-design student at the University of Dundee, in Scotland, built DON-8r – pronounced ‘donator’ – a small robot that travels through public spaces, relying on coin donations for charity into a slot on its back to keep moving.

Mr. Pryde, who built the project as his final-year project, says he got the idea by watching the often-negative attitudes people had toward street fund raisers who make face-to-face solicitations in busy pedestrian areas.

‘You often see people walking very, very far around them just so they don’t get caught,’ he says. ‘What I wanted to do was design something that people wanted to approach. That’s where the idea of it being a wee robot came from.’” Read More:

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Few events move the heart and pocketbook like a natural disaster. After the earthquakes in Haiti and Japan, millions of dollars began flowing to two local nonprofits on the front lines of disaster relief: Mercy Corps and Medical Teams International.

But what exactly happens to the donations? How much goes to relief, how much to expenses? And what kind of relief? The answers are more complicated than you might think.

Both Portland-based Mercy Corps and Tigard-based Medical Teams are highly regarded, and both pride themselves on using as much money as possible on the people who need it.

“They’re among the world’s two leading and reputable international relief organizations,” said Doug Stamm, chief executive officer of the Meyer Memorial Trust, which has given money to both.

The charities also shared numbers; transparency is a key indicator of a charity’s reliability — and the only real way to vet how an agency uses its money. The information is particularly relevant amid questions this week about how much money author Greg Mortenson’s charity spent actually building schools in Afghanistan and Pakistan.

Liz Grant, head of the charities division at the Oregon attorney general’s office, noted that the financial documents charities must file with the federal government provide general information, not details on every penny.

In Oregon, Grant said, nonprofits aren’t required to open their books to the public or even audit their financials. But if they do audit, they’re supposed to file the documents with the attorney general’s office, where the public can gain access through a records request. Read More/a>

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Thomas Wolf recently spoke with his publisher about the topic of his new book, How to Connect with Donors and Double the Money You Raise. GuideStar has published two excerpts from the book (see the links on the right), and we’re pleased to be able to share Dr. Wolf’s additional thoughts with you.
Many in fundraising aren’t extroverts. Can they be successful in connecting with donors as you prescribe?

When I started out, I was extremely uncomfortable trying to connect with donors. But it is a skill anyone can learn. Sure there are some people who are just naturally outgoing. But for the rest of us, knowing what to say, how to say it, and when is all part of the confidence-building process. And remember, so much of good fundraising is about listening. I have been in so many situations where donors do almost all the talking and then thank me for such an interesting conversation.

You mention in your book that when seeking a gift sometimes it’s best NOT to ask for money? That sounds contradictory.

The old adage is “ask for money, you get advice, ask for advice and often you will get money.” People like to think that their ideas and opinions matter. Showing respect for what is in their heads as well as what is in their wallets can be a winning strategy. There is a danger of course. Not all advice is good advice. But often, the advice can lead you to an understanding of where the donor’s interests lie and then following up with a request is simply the next logical part of the conversation.

Your book is all about shrinking the distance between yourself and the donor. Can getting too close be counter-productive when it comes to soliciting?

Absolutely. I remember several occasions when I simply felt I could not take advantage of a very close relationship and ask for money. But I had no problem briefing other solicitors and making introductions. In some cases I would joke that since both parties were a lot smarter and more interesting than I was, they would both enjoy the conversation so much more. I am also very clear with friends when I am going to ask them for money. Taking them by surprise is never good—for fundraising results or for the friendship. Read More

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Direct mail fundraising will be harder in 2011. Postage rates are increasing. Attention spans are decreasing. And discretionary income, which is to say, the money your donors use to support their favourite causes, is tighter. So, if you want to succeed at raising funds with direct mail letters, follow these five timeless tips.

1. Write About a Person, Not a Problem
Take your case for support and translate it into flesh and bone. Give it a name. People give to people to help people. Your donors don’t want to change the world. They want to change lives. Show them how to change lives by featuring one person in each fundraising letter. Tell your story through one person.

2. Tell a Story
The quickest way to grab (and keep) your donor’s attention is to tell a story. Follow the method novel writers employ: conflict > development > resolution. Start with conflict. Develop the conflict. Resolve the conflict.

3. Write as a Person, Not an Institution
At the bottom of your letter is a signature of a person, not an institution. That’s because fundraising letters are written by individuals, not by committees. Write your appeal letters so that they sound as though they are coming from a person. Don’t write “we, us, our.” Write in the first person. Just as I am doing right now. Read More

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Not For Profit

The historic health-care bill adopted by the House of Representatives Sunday night provides relief to small charities that offer health insurance to their employees — a victory for nonprofit leaders who fought for such language.By adopting the Senate version of the major health-care overhaul, the House agreed that both nonprofit groups and businesses could qualify for tax credits. The original House bill offered only income-tax credits to small employers, which would not have helped tax-exempt groups.

The final bill, set to be signed by President Obama in the next day or two, allows nonprofit groups to apply the credit to certain payroll taxes, like the money withheld from employee checks for Medicare. The provision applies to employers with no more than 25 full-time employees and average wages below $50,000. Read More

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It’s time to share the results of my 2009-2010 “What I Got When I Gave” Experiment. The point of this experiment is to see what kind of communications response I get in return for unsolicited donations to national charities. This does not include the automated email receipt that I get from the payment processor; I’m looking for communication from the charity directly.

On December 9, 2009, I gave $20 donations to 10 national nonprofits I had previously never donated to by converting credit card miles into cash donations through the Capital One Giving Site. I agreed to share my email address and my mailing address with the nonprofits.

I’ve confirmed with Network for Good, Capital One’s donation processing partner, that the donations were transmitted to the nonprofits on January 15, 2010. The delay has to do with how Network for Good bundles donations and transmits them to nonprofits once a month. So, while I gave in early December, I’m considering the donation date January 15 for this experiment’s purpose. Capital One covers the processing fees, so each charity received the full $20.Read More

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Not for profit organizations both large and small from wall street to main street are feeling the impact on donations and fundraising as a result of the national current economic climate.The financial pinch will only deepen in the coming months given the potential of a Global recession now taking shape.

The potential impact is just now taking shape, because 2009 grants from many philanthropic foundations are still being set and the end-of-year holiday giving season is opening. Although it’s difficult to draw broad conclusions from reports by individual charities, many non-profits say they are feeling an economic pinch.

“This is the worst fundraising environment I’ve ever worked in,” says Jeffrey Towers, chief development officer for the American Red Cross, which won promises of $100 million from Congress this month after 2008′s hurricanes, tornadoes and floods depleted the group’s disaster-relief reserves.

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Not For Profit

The current economic downturn is a bloated up financial crisis caused by the erroneous banking system. The banks refuse to take measures beyond the so-called ‘light touch regulation’. As their regulatory authority is being constantly challenged, they have begun to aggressively embrace newer methods of funding the failed mortgage lending. These complex financial instruments have been the core reason of the current economic downturn. As the banks all over the world are announcing their losses and the housing bubbles in America, Ireland and Spain are bursting, there has been a simultaneous escalation in the oil prices, more so following the impact of the September 11, attacks. With collapse of the Lehman Brothers, the crunch has manifested itself deeper and wider. The Federal authorities therefore are forced to raise the tax levels in order to meet the increasing costs.
Diversification of the donor base is one of the prime options for the not-for-profit sector. This will enhance their opportunities to leverage their present and future donors. When an economy slows down it results in a natural increase in the number of people who are in need of assistance. They require help for sustenance. The impact is largest on the not-for-profit sector since they are widely apprehended as provider of welfare services.
As the individual donations lessen, the endowments of the foundations that belong to the corporate sector also feel the impact as they cut their profit margins and reduce their degree of corporate social investment. Non-profit sectors who have managed to build a reserve might get through this period but not for long. They need to think of long-term sustainability. The secret lies in maintaining open communication lines and ensuring that those relationships that had helped them to raise funds are assured their due importance and trust.
It has been seen that even during the recessionary periods, the core supporters belonging to the typical Christian donor types do not abruptly pull back during this bumpy phase. They realize the financial challenges faced by the organization. As the organization effectively demonstrates that these donations are indeed making huge difference to the lives of the people, it helps in sealing their fundraising worries.

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Not For Profit