Enough Already – It’s Time for WOW Again
The last few years have seen a lot of whoa, and a lot of my friends and colleagues in the world of philanthropy have been through extraordinarily tough times. It hasn’t been the greatest time for me either but I am saying today it’s time for WOW again!
What we do is all about hope so feeling hopeless ensures failure. My great friend Jay Goulart says it well “no one ever says – here is my gift, your cause is doomed.”
Now I know we are not out of the woods or is it the valley or is it the ocean or is it perhaps just life. That last one you don’t want out of and it’s the one we all have to work with. Last time I looked around the need for what we do has never been greater. Down here in the Panhandle we look out at our beloved Gulf and see a need for environmental groups like Surfrider to come to the aid of our beaches, and we all know there are too many people who feel hopeless because they can’t afford food, shelter, education or health care. All of us who work every day to help those people must adjust our attitudes, pick up the half-full glass in front of us and be thankful we are in a profession where making a difference is our business.
If you are looking to get your WOW back then I invite you to the only Henniker on earth and a professional development experience you will never forget – The WOW Institute. A small band of brothers and sisters of which I am a very proud member is putting on the 10th WOW July 13-16.
Hope to see you there!
May 26, 2010
· 
dlawson · 
No Comments
Tags: Fundraising, Philanthropy, WOW Institute · Posted in: News of Note
APRA responds to WSJ article on the use of data and technology by charities
Every few years another reporter discovers that fundraisers utilize data and technology to help them do their jobs. The headline could read “Nonprofits strive for greater efficiency by using data and technology” or “Data and technology help organizations lower the cost of fundraising and increase the amount of your donations that go to their missions.” Unfortunately those headlines lose out to
Is Your Favorite Charity Spying on You?
As professionals who have spent our careers helping organizations spend their precious time and money working with the right people at the right time, we are saddened by an article that misleads and misprepresents what is actually happening. The very same data and technology that the WSJ portrays as spying is being used right now to sell us cars, jewelry, soap and every other consumer good. Fundraisers are using only a fraction of what businesses use, and they use it to raise money to feed, shelter, educate, and heal which seem like pretty good ideas to us.
We ask a lot of our nonprofits, and during the Great Recession we have asked them to do more while receiving less. I think it is time for publications like WSJ to stop writing sensational headlines and start writing about how organizations are working to do good better.
Here is the Association of Professional Researchers for Advancement’s response to the article. Well said APRA!
Anne Kadet’s recent article about research in philanthropic organizations (Smart Money: Is Your Favorite Charity Spying on You? (May 16, 2010)) misrepresents the scope and purpose of donor research, and as a result misleads Journal readers about its nature and use.
Like so many, we share a deep concern for and sensitivity to personal privacy and identity security. That’s why in addition to complying with all legal requirements, including legislation such as FERPA and HIPAA, professional researchers also adhere to thoughtful ethical guidelines about how information should be gathered and used. A deep-seated concern for individual privacy is also why we and our organizations are fundamentally committed to maintaining the confidentiality of personal data that our donors have shared with us.
The nonprofits we work for aspire to be as effectively managed as for-profit organizations, using technology, market research, and smart business skills to flourish when resources are constrained. Research and analytics help charities use staff, volunteer time, and marketing resources as carefully and effectively as possible. Information we gather and use is obtained from publicly available sources–sources accessible to anyone reading this article. Fundraising researchers can no more be considered ‘spying’ on donors than the Journal can be considered ‘spying’ when it analyzes an SEC document or reports on a public court filing.
We encourage those who would like to learn more about the profession, our work to serve the public good, and our ethical commitment, to visit the Association of Professional Researchers for Advancement (APRA) at www.aprahome.org.
Deborah L. Mueller
APRA President
Robert D. Scott
APRA President-elect
May 20, 2010
· LoriAndDavid · 2 Comments
Tags: APRA, Fundraising, Philanthropy, Prospect Research · Posted in: News of Note
The Canary has a heartbeat
A few months ago I was speaking at a conference and mentioned that Starbucks was the canary in the coal mine signaling the end of excessive discretionary spending. I was reminded of that yesterday when for the first time in over a year our local Bucks was filled to the brim. It was like a time machine taking me back to the year 2007.
For fundraisers, discretionary spending is everything because, let’s face it – giving may be something you need to be doing but it is not something you need to do. The news on discretionary spending has not been good and as this charts shows it is at its lowest point, in terms of percentage of overall spending, since 1959:
It is never good to be in the valley of a chart like this but what you need to focus on is the climb up which we may, Starbucks in hand, be about to start.
November 9, 2009
· dlawson · No Comments
Tags: Discretionary Spending, Economy, Fundraising, Future · Posted in: News of Note
Lowering Expectations
Have you noticed a trend towards lowering fundraising goals? Have we all decided it’s better to have bartered our mission’s goals rather than go gently into that good night? The last time we looked, the need had not disappeared. Students still need assistance to attend college; nonprofit hospitals still need grateful patients to ensure access to care for those less fortunate; the number of hungry families in the world, including America, keeps increasing. What’s a nonprofit to do?
Look at who’s winning and who’s losing – and who’s lowering expectations. There are nonprofits who are surpassing their unrevised goals. And there are those giants who are struggling locally. It’s not hard to find the differences in approaches. What are you doing internally to move your nonprofit forward? Try some of these tips:
- If you are a prospect researcher, find the pockets of prosperity in your prospect’s backyard – look into the local economy of your prospect for the signs of what’s doing well there.
- If you are on the frontline, soliciting, ask the questions which will provoke honest and realistic thinking on the part of your prospect or donor. If you don’t explain what is needed and how they can help, you will not get a gift. Period.
- If you are in outreach, use various methods of public awareness to build advocacy. People, especially now, want to hear how you are meeting needs and solving problems. They’ll help you if you make it easy to do.
- If you are in administration, and having to cut back on expenses, ask your staff to brainstorm on “stop doing” lists. Time is ever more valuable these days, and it’s best to be efficient, but only if you are doing so in the right areas. Ask yourself, “Where should our priorities lie?”
Please feel free to share comments on how we can all work to raise expectations and, most importantly, raise more money!
October 21, 2009
· LoriAndDavid · No Comments
Tags: Campaigns, Fundraising, Major Gifts, Philanthropy · Posted in: News of Note
The “Core Affluent” and fundraising
I read an interesting report the other day about how Swiss banks are targeting individuals with a net worth of $1 – $5 million, also known as the “Core Affluent.” The reason is simple – banks are finding that these individuals are easier to work with and more profitable than people with higher levels of wealth. One observation is that people in this wealth group are aspiring to be wealthier and see the private banker as a sign they are making progress. Wealthier individuals see private banking as more of a commodity and tend to shop around for the best deals.
Could the same be true for fundraisers? Is it possible that people who are part of the Core Affluent might be aspiring philanthropists who see the fundraiser as another sign of their growing wealth? If so, then fundraisers should be seeking out these individuals and creating giving opportunities that match their wealth and aspirations. Utilize your higher net worth donors in the cultivation and solicitation process so that the aspiring philanthropists feel part of their world even though they are not yet capable of making a gift at their level.
The bottom-line for both private bankers and fundraisers is that there are a whole lot more people worth $1 – $5 million than there are at higher levels so focusing resources here just makes good economic sense. Of course if you are fortunate enough to have too many super wealthy individuals and don’t have the time for the Core Affluent, more power to you and thanks for leaving these aspiring philanthropists for the rest of us.
October 12, 2009
· dlawson · No Comments
Tags: Economy, Fundraising, High Net Worth Individuals, Major Gifts, Philanthropy · Posted in: News of Note
Pardon the interruption
For the past few months we have been focused on creating new products and services for our sector, so we have limited our communications to 140 characters or less AKA Tweets (@workinglori and @lawson_david). Now that we have helped to launch DonorTrends, we are getting back to our blog.
While we enjoy the brevity of Twitter, and we will keep Tweeting, the blog gives us the freedom to say it in as many or few words as we want as well as include multi-media content when it makes sense. There is a lot of talk about the blog being passe but we believe it has a place in the conversation.
A very good thing that happened while we were away is the economy has started to show some signs of life. For fundraisers this is small beam of light towards the end of what has been, and continues to be for most, a very long, dark tunnel. We certainly hope you have continued to be out there asking despite so many experts saying wait wait don’t ask now!
Recently we talked with an old friend that works for a small non-profit in Florida who said she is having a great year and in part this is because so many of the donors she is visiting are not being visited by their Alma Maters and the large charities.
No rose-colored glasses here – we do know that all is by no means well and as we approach the all important Q4, the following chart from Nielsen Claritas will give you pause and remind you that it will take a great effort to make this a successful fundraising year. Nielsen asked quite simply, “At this moment, the time to buy the things you want and need is…” 81% answered either “Not so good” or “Bad”. You can click on the chart to read the full article.
We are glad to be back blogging and as always we welcome your comments. If you wish to hear from us daily, follow our tweets.
October 5, 2009
· dlawson · No Comments
Tags: Economy, Fundraising, Future, Philanthropy, Wealth · Posted in: News of Note
Fundraisers feeling blue need to think green
open source video, online video platform, video solution At the same time we are losing blue collar jobs we are starting to see more and more green collar jobs created. An example is NatureWorks, a company headquartered in Minnesota with a manufacturing plant in Nebraska. NatureWorks sells bio-degradable packaging:
“Ingeo™ biopolymer is the world’s first and only performance plastic made from 100% annually renewable resources. Corn-based Ingeo™ biopolymer offers the cost and performance necessary to compete with traditional petroleum-based materials in the packaging and serviceware markets. Clear and strong like petroleum-based plastic, yet Ingeo™ biopolymer can be commercially composted”
Simply put the packaging goes back into nature rather than polluting it.
Their latest client is Frito-Lay which plans to use the packaging for their Sun Chips brand. The plan is to launch the new packaging on Earth Day 2010. Sales are going so well NatureWorks is looking for a new manufacturing plant to meet demand. You can search for companies that use their products at NatureWorks Partners.
NatureWorks is a joint venture that includes Cargill, a company that has been cutting jobs over the past year and just released a quarterly report showing a 68% decline in earnings. What does this mean for fundraisers? It means there are going to be new companies (and products), and the jobs that come with them, to replace the ones being lost as our economy goes through another natural (albeit painful) transition.
April 20, 2009
· dlawson · One Comment
Tags: Corporate Giving, Economy, Employment, Fundraising, Green Collar, Jobs, Philanthropy, Wealth · Posted in: News of Note
Where’s the Money Now?
There has been a lot of focus on how much wealth has been lost over the last year and what fundraisers need to do to survive these tough times. Lori and I decided it was time to focus on where the money is rather than where it isn’t. On May 12th we are offering a webinar simply entitled Where’s the Money Now? Here are a few of the questions we plan to address:
- Where has wealth moved and how you can adjust
your prospecting activities to move with it? - What have high net worth individuals been doing to
protect their wealth and how is that affecting the way
they give? - Why will this recovery be different from previous
ones and what do you need to do to prepare for it? - Which of your prospects will benefit from the stimulus
plan and how can you find them? - How can you benchmark your fundraising data
against the economy so that you are analyzing your
fundraising results in the proper context?
To help you before the webinar, and after, we are including a subscription to our monthly newsletter on wealth and philanthropy – 15th & Lawson™. As soon as you register you can immediately access all 2009 editions which include an in-depth report on who is benefiting from the infrastructure spending and a look inside the CleanTech industry everyone is talking about.
If you are ready to start focusing on where the money is instead of where it isn’t, this webinar is for you. Visit https://www.workingphilanthropy.com/webinars/ for details.
April 16, 2009
· LoriAndDavid · One Comment
Tags: 15th & Lawson, Economy, eLearning, Fundraising, Giving, High Net Worth Individuals, Major Gifts, Philanthropy, Wealth, Webinar · Posted in: News of Note
How at-risk are your pledges?
A recent story in the LA Times, Donor’s legal troubles may force museum into bankruptcy, is a reminder that the multi-year pledge is a nonprofit’s version of credit and just like with a mortgage or credit card, sometimes that commitment is not honored. This particular story highlights another troubling trend which is how nonprofits have become entangled in the investment schemes that seem to be uncovered on a weekly basis.
Rather than wait for bad news, take a page from for-profit lenders and start evaluating your pledges in terms of the risk they will not be fulfilled. Here are three suggestions:
- For the majority of your pledges keep it simple by looking at where the person lives to determine if they are in an area with high unemployment and/or high foreclosure rates.
- For multi-year campaign pledges look for people who have not made their annual gift.
- For the top 10% of your pledges take a deeper look to determine who is working in high-risk industries like finance, residential construction and retail. Also highlight pledges which have been extended beyond the original agreement.
Getting through tough times requires a realistic assessment of risk. Understanding how at-risk your pledges are can go a long way towards ensuring that you are not unpleasantly surprised, and if done in a timely manner, may provide the time to prepare.
April 6, 2009
· LoriAndDavid · No Comments
Tags: Fundraising, High Net Worth Individuals, Major Gifts, Philanthropy, Pledges, Wealth · Posted in: News of Note
Is merger mania poised for a return?
The merger and acquisition market is showing signs that maybe just maybe we are going to see some real M&A activity by the end of the year and into 2010. I recently highlighted the IBM/Sun deal, but before that there was a prediction that steel companies will be consolidating as stronger companies take-over the weak ones.
For fundraisers this means it is critical to identify those prospects that are most likely to be involved in an acquisition now so that you can be sure your mission is top-of-mind. Look for companies that are cash-poor to be acquired by cash-rich competitors. The most likely take-over targets are those that are both short on cash and need credit.
This situation presents an interesting problem for fundraisers because the most likely beneficiaries of an acquisition may well be associated with companies that are not doing well. This causes the prospects rating to fall and worse of all may cause the fundraiser to avoid the person altogether.
I realize that everyone is strapped for time so one way you can try to benefit if the M&A activity does return is to include information about giving of securities involved in an acquisition in your general communications. A simple story in your newsletter about how you can quickly handle either public or private stock will go a long way to setting the stage for the real thing.
Sadly what is most likely to happen is for the donor to sell his or her stock, pay the capital gains, and then give cash later. The winner in that scenario is the IRS.
April 2, 2009
· dlawson · No Comments
Tags: Economy, Fundraising, Major Gifts, Mergers & Acquisitions, Stock Market, Wealth · Posted in: News of Note
