Science, technology, and design: A new framework in fundraising

Is there anyone who doesn’t believe that our times—and the fundraising climate—haven’t shifted dramatically in the past year? And the return to a new normal will be anything but normal?

The good news: you don’t have to change anything to continue to secure philanthropic support from your donors and prospects. The bad news: your results will not reach the potential to transform your organization, solve a problem in your community, or get you recognition as a change master in the field of fundraising and development.

We need to do more, much more, to address the multiple fatigues in our industry.

Giving fatigue: Donors give, but they are tired of fundraising and fundraisers.
Solicitation fatigue: Staff and volunteers are exhausted (bored) by the endless appeals.
Attention fatigue: We simply cannot get anyone’s attention anymore.

The solution? Technology. Science. Creativity.

How often have you seen these three words as part of a comprehensive strategy for improving your fundraising results? Pay attention. I’ll make this easy on you—and for you.

Technology

“Identify and then eliminate the obstacles standing in the way of the desired behavior.”
—Kurt Lewin

We’re two decades into the internet era; why is it still easier to buy a book about hurricanes than help a storm’s victims? How many times do we go to online giving sites and give up?

Very soon technology will improve donor participation and retention by making it ridiculously easy to give. Imagine managing your philanthropic investments like you manage financial investments: your portfolio of all the causes you care about, addresses, and transaction information stored in one place. You’re just one click away from giving to all your favorite charities, generating and filing an instant receipt, and managing all your giving in a single location. Technology will allow donors to do what they want to do anyway.

Science

“A choice architect has the responsibility for organizing the context in which people make decisions.”
—Richard Thaler

People are inherently altruistic. Donors give away $1 billion every day. And people are irrational decision makers. It’s this irrationality that fundraisers need to better understand, and it is the science of behavioral economics they need to apply.

We are a generation into the era of behavioral economics, which explains and predicts how consumers make decisions (spoiler alert: less rationally than you might think). Yet the application of these profound theories has only started to be part of the fundraising (nonprofit) economy.

In one longitudinal study, people gave more for hurricane relief if the name of the hurricane started with the same letter as their own name. What???

There are so many opportunities for fundraisers to be smarter in our efforts. We just need to understand and apply known science of philanthropic decision making.

Do matching or challenge grants work?
Does a gender-match between the solicitor and prospect matter?
Why are giving days so successful?
Are people more generous if we suggest a larger gift?
How can one simple change in a solicitation increase the number of recurring donors?

Primary research in philanthropy and broader studies in behavioral economics and psychology can inform fundraising behavior that motivates donors and dramatically improves fundraising results.

Creativity

“Life is either a daring adventure, or nothing.”
—Helen Keller

Finally, we come to the greatest barrier to success: getting people’s attention. This is the most dramatic challenge in this new era in fundraising; solving it will demand our innovation, creativity, and imagination.

If you want your organization to be noticed, be daring. Take a risk in your message, your events, your ideas, your approaches. More than anything else, display your humanity every chance you get. Most fundraising copy is drab, corporate, and repetitive. Write a letter that your donor saves or shares with others.

To do this you have to believe in your imagination, learn how to be more creative, practice creativity, and nurture innovation. You’ll raise more money—and have more fun along the way.

As we enter this new era in philanthropy and development, discover how you can bring a new way of thinking to fundraising through technology, the science of giving, and creativity. Through this evolving way of understanding the fundraising behaviors of professionals and volunteers alike, nonprofits can ensure the loyalty of their donors and find ongoing inspiration this work.

Interested in learning more?

Join my workshop, “Delivering Extraordinary Fundraising in Extraordinary Times,” on Wednesday, June 16, 2021, to learn how technology, science, and design will reshaping the work of fundraisers right now and in the future. Register here.

The end of fundraising as we’ve known it

Even before the current coronavirus (COVID-19) pandemic, racial strife, economic downturn, and political maelstrom, our industry was changing. For many practitioners, we simply sensed that our equilibrium was off and something about our work was uncomfortable and changing. We just haven’t had much time to process or analyze what this is.

But in the past six months, we’ve had plenty of time to think. But before I describe one vision of fundraising, development, and philanthropy beyond 2020, let’s start with the trends that were already in motion before this all began.

Giving fatigue

People are tired of giving. This doesn’t include the intention or desire to give. They are tired of the act of giving—the endless solicitations, the poor quality of the solicitations, the unreciprocated gestures of generosity, and the insincerity of the messaging.

Don’t get me wrong. People want to give. People love to give. People need to give. Helping others is ingrained into our DNA.

We hold the door open for others. We do favors. We give charitable gifts. And on occasion, we jump into the water to save another. We are born altruists, and we will die altruists. It is programmed into our evolutionary biology, and we cannot survive without it. By helping others, we’re counting on that in times of personal need, others will help us.

And in good times or bad—regardless of what lies ahead in politics, health, and equality—Americans will give away $1 billion (yes, with a “b”) every day in 2021.

But donors are tired of saying no. They are tired of pledge forms—both paper and electronic. They are tired of not knowing the date and amount of their last gift to your organization, and yet, they still give.

How long do you think Amazon.com would last if it ran their online transaction processing like most nonprofits? There wouldn’t be a record of a last “purchase,” and there wouldn’t be a need to type in a name, address, and credit card information every single time.

But donors remain irrationally generous. They are simply not having much fun doing it.

Solicitation fatigue

Fundraisers are tired. Annual fundraising has become “regular fundraising,” and it seems like we’re running out of things to say and messages to convey. We’ve run out of time to build relationships with our donors. We’re always asking (or it certainly appears this way to the donors).

In a Chronicle of Philanthropy study last year, more than half of chief development officers wanted to quit their jobs within two years, and half of those wanted to quit the profession. This is not a flattering scenario. Former New York Congressman Steve Israel said one of the reasons he quit serving in government was that he did not want to ask one more person for one more dollar. We know how he feels.

And while the response to staff burnout is either quitting the profession or switching organizations, volunteer fatigue is equally pronounced. Board members resist solicitations, and volunteers are harder to find and harder to motivate.

Attention fatigue

In many ways, this is the most devastating and insidious problem: we cannot get anyone’s attention.

Letters, emails, and phone calls get no response. Invitations are ignored (this is the first generation when couples call guests to see if they are coming to their wedding). Board members do not acknowledge receipt of information. Donors ignore appeals. People fail to show up after sending “yes” RSVPs (maybe no one knows French anymore).

We know the reasons for this—distractions.

These include over 150 emails per day, two and a half hours watching video every 24 hours, and three hours staring at smartphones. A million other organizations doing what we’re trying to do—cheaply and frequently on the “free” internet.

All of us are hopeful that our messages, posts, and videos will “go viral,” but that’s like planning on picking a royal flush out of a deck of cards: possible, rare, and nothing we can control.

Solutions

And while this all sounds discouraging, let me remind you again that people are still giving $1 billion away every day. The question is whether they’re going to gift it to you or to some other worthy organization.

So here’s the good news. There are solutions, strategies, and tactics that combat these fatigues. They are not easy. Some require an investment of money and time. Some will depend on third parties to create technology for our industry. And importantly, some simply require us to be creative and take risks.

Without going into details here, we will respond to “giving fatigue” with better technology, thoughtful user experiences, and the employ of predictive data analytics. We will respond to solicitation fatigue by applying behavioral economics and psychology to better understand the workings of the donor’s mind and the irrationality of philanthropic decision making, which makes our efforts more productive and more rewarding for all.

For now, I’ll just focus on the third fatigue, which is probably the most important and the one we can address promptly: attention fatigue.

To get attention, we’re not going to turn off our constituent’s devices. We’re going to share bold, human, and motivating messages. If every pitch and appeal sounds like the last or if the tone sounds mechanical, or worse, repetitive, we will not get anyone’s attention.

When clients ask me, “What should my next letter or message say?” I review the progression of fundraising letter writing. It started with “give them statistics”—the number of lives saved, the number of students on scholarship, and the number of people fed.

Then the trend was storytelling. People get lost in statistics. They will relate to the journey of one student, one family, one mother. The brain relates to this and subconsciously puts the donor in the position of the recipient.

But I’m suggesting that when we write to our donors, when we ask them to help, when we ask them to act generously, we need a new approach.

Write so when the reader is done, they know that you wrote the letter, not someone else. Write so the reader feels they’ve been told a personal story or that they’ve been provided with your personal perspective. Write so that when the reader is done, they know the soul of the writer.

People seek empathy, they seek fun, and they seek meaning. If you are providing these through the mission and the work of your organization and through your communications, you will succeed, and our sector will succeed.

Interested in learning more?

Join my workshop, “How to Plan for Fundraising in 2021,” on Tuesday, December 8, to get an overview of the demographics, technology, and science that are reshaping the work of fundraisers right now and in the future. Register here.

What Do I Do Now? Fundraising and Covid-19

I've been asked the same question so many times by colleagues and clients: "What do I do now when everything seems to be about COVID-19 and social distancing? My cause doesn't seem to get any attention (should it?) when people are worried, people are getting sick, people are dying."

It is a tough time to fundraising when the world seems to be crashing in on so many. But it is a great time for "development." Identify new prospects. Do research on donors and potential donors. Cultivate current realtionships and steward the gifts you've already received.

Remember that successful fundraising is about building relationships over a lifetime. Relationships have their ups and downs. Sometimes there are periods when friendships seem to take a break – a natural "social distancing" that comes with almost all of our connections to others. But this is the time when you need to reach out, extending a "hand of friendship" to those who are important to you and your cause.

This is a time to think about reciprocity, giving, and gratitude.

Reciprocity: Your donors have supported you. This is a time when you can do something for them. Give something to distract them. A great story, a memory, an article, a video. Give them a gift. We all could use a new coffee mug (or shot class). A package of seeds with your logo and message on the outside. A t-shirt with a funny or moving message. A letter letting them know how you are doing and asking the same of them.

Giving: There is something you can do for them. Provide company and companionship with a Zoom™ video-conference call to catch up. A personal phone number to call if you can give them advice, provide a service, offer to network within your community if they need some help or information. Even if the answer is no, they'll appreciate the offer.

Gratitude: We've heard in the popular press than expressing gratitude is good for our own mental and physical health. Research shows that when volunteers express gratitude – think about how they have benefited from the kindness of others – they are more effective fundraisers. Say "thank you" and tell a board member, a donor, a colleague how much they mean to you. It's something you can do for yourself that helps you get through these times.

Don't go silent. Don't be afraid to reach out for help yourself. Make your case with compassion, creativity, and sincerity.

And make it personal. Appeals and letters should tell your donors something about the soul of the writer. Good luck. Please share your thoughts and your stories.

Why you should give on January 1!

The numbers are now familiar to most fundraisers:

Over 30% of all charitable giving is done in December. The last three days of the year account for 12% of the year's online giving.

But I have some wonderfully generous friends who make most of their annual charitable gifts on New Year's Day. Got me thinking about why this makes so much sense.

January 1 is absolutely the best day to give.

ONE: No matter how the coming year unfolds, they are starting out with a (very) good deed. Giving back. Helping others. Repairing the world. Not a bad way to ensure a worthy 365 days no matter what happens the remaining 364.

TWO: Their charitable dollars have a greater impact. First, charities have budgets to balance and payrolls to meet, and they cannot wait until December to keep the lights on, pay their staff, save lives. Also, when donors give first thing in January -- guess what? Fewer solicitations during the year. Twenty-four hours into the New Year and they're already on the year's new donor honor roll. Fewer of their dollars are spent to solicit them back!

Mission. Not mail.

THREE: Study after study shows that people intend to give more than they actually end up giving. Distracted. Hard to give. Uncertain whether they have already given. Do it now!

"How wonderful it is that nobody need wait a single moment before starting to improve the world." Anne Frank

I used to think that the "Two P's" of altruism were "Philanthropy" and "Procrastination."

I'm advocating for "Philanthropy" and "Promptness" in 2020.

I encourage you to start a new New Year's Day tradition this January 1st. For you and your family. And I encourage you to share this reflection with your fellow donors. And fundraisers.

A Happy Eleemosynary New Year!

Women and Millennials and (Big Red) Bears – Oh My!

Yes, the demographics and psycho-graphics of the alumni are changing, but human nature is not. On the flight home (Cleveland) from an Alumni Leadership Conference (Boston) of my beloved alma mater (Cornell), I reflected on the alumni affairs strategic planning discussion.

"Long overdue." First thought.

"Short on bold vision." Second thought -- probably an uninformed thought though, since the staff talent and passion on the Hill are embarrassingly abundant. But I couldn't help but reflect on 44 years as student, alumnus, employee, alumnus, volunteer, donor, college parent,...

I can keep this blog brief.

1. The power of alumni engagement is about Alum A connecting with Alum B, not reunion attendance;

2. The success of alumni affairs and development is in the hands of alumni not solely the staff; and

3. It's all about expansive information and data accessed independently by the alumni.

All the rest of my flight's musing are within the infographic below.

https://create.piktochart.com/output/36316203-alumni-2020-the-strategic-plan

Yes, the demographics and psycho-graphics of university alumni are changing, but human nature is not. [Women and millennials give to causes not institutions. Your messaging must be different.] This is a major shift in control, connection, impact – these are all that altruists want.

Your thoughts?

Daniel Mansoor '79 MBA '80 • GoodWorks Group • djmansoor@hotmail.com

Giving Tuesday; Holiday Scams; Most Treasured Volunteer

Giving Tuesday informally kicks off the charitable season, but is one day of fundraising the best strategy for non-profits? And is there a growing sense of giving fatigue among Americans?

The Cuyahoga County Department of Consumer Affairs is warning residents to be on the lookout for scams this holiday season, especially with the ease of online shopping.

And, we'll meet an area volunteer being honored by The Center for Community Solutions.

Dan Mansoor, President, GoodWorks Group

Sheryl Harris, Director, Cuyahoga County Department of Consumer Affairs

The Perfect Fundraising Letter

Daniel Mansoor is the founder of GoodWorks -- a fundraising and development consultancy that seeks to improve the performance of nonprofits and the rewards of giving.

"What makes for a great fundraising letter?" [No such thing as perfect!]

This question was posed to me at the completion of a three-hour workshop I led in Cleveland this past Friday. We'd spent time discussing the "science of giving" and the importance of creativity and design in fundraising work. But this question about the principal way we fundraise for charitable gifts (direct mail) got me thinking. For some reason, the answer came quickly: "Write a letter that when the reader is done they really understand the soul of the letter's author!"

"What about the message of the letter?" Yes, that's critical too, but in the end the reader must feel two connections to motivate their giving: (1) a connection to those who are helped through their donation, and (2) a connection with the author of the letter.

We give when we can imagine how those who benefit from our altruism are "like us" or similar to us. We give when we respect, admire, relate to the person who wrote the letter. Despite the appearance to the contrary, giving is a communal (or pro-social) activity. We respond when others we respect or who seem like us give. We also want to trust the person asking us to give.

Trust and authenticity must be conveyed in our solicitations - whether face-to-face, by phone, email or letter. So get personal when you write. Get emotional. And definitely be original.

At the Friday workshop, as I described my philosophy, I thought of the letter I wrote to my college classmates -- a letter I have been writing annually for 20 years to raise funds for the Class Memorial Scholarship Fund. So I quickly retrieved the letter and read it to the audience. I was grateful for their reaction. Please share yours and please comment on this blog.

Can a great fundraising letter not mention fundraising?

For the past 21 years I have authored a fundraising letter for my university class memorial scholarship. Ever-conscious of my atrocious verbal SAT scores (>200), over the years I have tried to find a literary voice – my voice. I've learned to write about what is on my mind, not in the donor's mind. I now know that the most powerful messages are not statistics on gift impact and not even storytelling about one particular scholarship student. It is about revealing the "soul of the writer." Today, that's me.

I have included this year's letter to my classmates emailed this week (we usually also mail a letter, but not this year). The subject is our beloved former President Frank H. T. Rhodes who passed away on February 3rd. Old news? Yes. But I wanted to share with my classmates the powerful feelings stirred by his death in February.

"I hope that zest for living, and for giving yourself to others, will accompany you on the continuing journey. For if you mortgage all your todays for some vague and gossamer tomorrow, you may find, in the end, that life's greatest joys and satisfactions have eluded you. That does not mean a life of hedonism, but it does mean a life lived in the present, which is the only time we have." Frank H T Rhodes

Pretty sure all my classmates knew about his passing. So I wanted to write about what Dr. Rhodes meant to me – and maybe make a connection to my fellow alumni, by articulating what he may have meant to many of them. [see below or here]

Recently, I saw a development office draft of a co-signed (bad idea) letter from a university president and the university's chair of the board. It was unoriginal, impersonal, and worst of all, boring. I know that many institutions are struggling with what to say or whether to ask at all during the COVID pandemic and, now, with the racial upheaval and riots in the country.

In January of this year the board chair flew with his daughter to England for the start of her exciting semester abroad. I assume she's back home, safe but unsettled. Write about that. Write about what if feels like as a parent to see the dramatic impact on your child's education, your family, and your community. Write about your fears and your hopes for your alma mater as its leader and alumnus.

Make people care about you, dear writer, and they'll care about the cause.

How did I do? Please share your comments and ideas. I am happy to respond to your comments and questions about fundraising in these times. Many fundraisers are concerned about appearing insensitive if they fundraise for non-Covid, non-tolerance/equity causes. Don't hesitate to reach out if I can help. We need to help each other help others. dan@goodworksgroup.com or 917.974.2325 (Eastern). Let me know if you'd like an invitation to my upcoming webinar: "What Do I Do Now?" Be well and be safe, Dan