Tag - kim klein

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Which is Better: More Donors or More $$$?
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Donations as a Measure of Civic Engagement
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How to Ask This Giving Season

Which is Better: More Donors or More $$$?

The Minnesota Community Foundation has their second annual “Give to the Max Day” last week and once again it was a spectacular success.

The first giving day was last year. I had a chance to talk to the chief architect at the Minnesota Community Foundation, Jennifer Ford Reedy, a few months ago for my Social Good podcast for the Chronicle of Philanthropy.

It was a terrific example of a foundation forming partnerships with dozens of local nonprofits and a dozen other funders, creating an open source platform for giving (it was open source to enable and encourage other foundations to replicate the effort.) And at the end of the day, that first go round, the day generated 38,000 donors giving $14,000. I remember seeing those numbers on Beth’s blog and thinking that there had to be a typo. In the depths of the recession it was astounding to see that Minnesotans had given that much money to charitable causes. But, then, again, it’s Minnesotans, the most generous people in the world.

Jennifer posted a summary of this year’s event on the Council of Foundation’s blog last week. Jennifer outlined a key difference between this year’s event and last year’s. They decided this year to focus on increasing the number of donations not the size of the donations. They were successful in doing this, their bottom line this year was 42,000 donors pledging a total of $10 million.

As Jennifer writes, “we created an incentive system that rewards organizations for turnout.” The incentive were grand prizes of $20,000 and $10,000 to the nonprofits that raised the largest number of donors during the day.

This all raises a very interesting question: should nonprofits be aiming for more donors or more money?

Smart people like Kim Klein have been arguing for years that building a broad base of supporters is critical to long term sustainability for nonprofits.

But what if the needs are so great, winters in Minnesota are brutal after all, that losing $4 million hurts local people and communities in the most need right now?

I think part of the answer has to be what happens to these donors after they give on the big day? Blackbaud reports that donors who give online give more over time than their traditional counterparts. However, we reported that after the first America’s Giving Challenge sponsored by the Case Foundation that the winners didn’t know what to do with their online donors once they had them. That was three years ago, maybe we’re collectively getting better at learning how to build relationships with our online friends and turn them into long term donors now.

Maybe. At least I hope so! Katya, Kivi and Rebecca provide hopeful insights here on how to retain online donors.

This is, I suppose, the heart of our biggest challenge for the next few years; creating online friends, building stronger ties with a portion of them, asking them to give in real, authentic ways — and getting them to give again.

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Donations as a Measure of Civic Engagement

I saw a tweet this morning from Allison Jones from a presentation the amazing Kim Klein was giving in Detroit. The tweet read, “Kim Klein: more people donate $$ than vote or volunteer via @new_org”

I began to wonder whether we’ve been missing an opportunity to use donations as a measure of civic engagement. On land volunteerism and voting are traditional measures of local civic engagement. They are proxy’s for local social capital and stickiness. Here is a typical article on the connection between voting and local social capital and a blog post on volunteerism and social capital. But you won’t find articles or posts on donations and social capital.

The assumption is that writing a check is too passive to be considered engagement. In the same way that some folks think that clicking to raise awareness of an issue, such as clicking to support breast cancer, is too small, light, passive to be considered by some to be true participation.

I reject both of these arguments. I think any time someone does something for a cause, no matter how light, it is an opening and an opportunity for developing a stronger relationship with them.

Beth has illustrated this relationship in a diagram called The Ladder of Engagement:

The more interesting question than whether or not donations equal engagement is how nonprofits are being successful stepping people up this ladder of engagement. We wrestle with this a bit in our book The Networked Nonprofit. More to come on this in the weeks and months ahead!

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How to Ask This Giving Season

I’ve been so focused on the giving side of things lately that I haven’t spent as much time on the asking side.  Nonprofits are hurting.  Estimates are that giving was down 30% in October alone – I can’t imagine what November and December are going to look like.  Stories like this one about Goodwill Industries are becoming typical; basically donations are down and demand for services are up.

However, ironically, maybe even paradoxically, the Chronicle reports that while gift buying is down people still intend to give to their favorite caues this holiday season.

So, what gives — or maybe, more accurately, who gives?  I’m guessing (and really it’s just a guess) that people in their heart of hearst want to report that they will causes they feel passionately about, even when their wallots say they shouldn’t and when nonprofit spreadsheets say they aren’t. So, the real question isn’t whether donations are up or down, but how can we activate a lot of people who want to give to each donate a little this holiday season?

Part of what we have to overcome is the oversolicitation of donors who are turned of by being treated like ATM machines.  Indiana University’s Center on Philanthropy’s new report (this is only a summary, the full report is due out in early 2009) on why donors stop giving puts it more politely as, “no longer feeling connected to the organization.”

Connectedness trumps wizardy.  This is  always true but particularly relevant now when belts are being tightened.  It is the only way to make donors big and small feel welcome, appreciated and needed.  Katya Andreson reports on a presentation that the fundraising guress Kim Klein at Network for Good this week.  Kim’s suggestions for raising money in tough economic times were:

1. Encourage your donors to give the gift of charity.  It’s the holidays.  People are buying gifts.  Have them make that the gift of charity.

2. Call all your major donors.  She says, “The tendency right now is to think, “Oh, these poor people. They lost so much money.” So you don’t call them. What you actually wind up saying to them, even though you don’t mean to, you wind up saying to them, “All we cared about was your money. Now that you don’t have so much money, I can’t be bothered to call you.” And that is really,

really, really not a message you want to give.  You want to welcome them. You want to write to them and use a follow-up phone call to say something like, “We thank you for all you’ve done for us over the years. We are determined to hang in there and continue to do our work as best we can. We hope you will support us at whatever level feels acceptable to you.” Focus on the donor, not the donation!

3. Tell 70+ donors how to save on taxes!  She says, “You can transfer up to $100,000 in any given year directly from their IRA to a charitable organization and they pay no income tax on that. Normally if you withdraw money from your IRA you pay a tax, whatever tax bracket you’re in that year. And of course if you donate it, you claim that tax donation.  This is a very nice provision that allows you to avoid taxation and still claim the donation, so it’s kind of a double tax advantage.”

4. For smaller organizations especially, share a wish list!  She says, “Tell people, this is the stuff we need. We need four ergonomic chairs. We need 10 printer toner cartridges. We need 75 reams of paper. We need new filing cabinets.” And you just kind of list all the stuff, everything in your budget.”

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