The Extreme Fundraising Blog

I’ve just tweaked my page at Squidoo.

Sorry. My “lens” at Squidoo!

If you use Squidoo, I’d love to hear the things you like most about it. Feel free to post a comment here.

If I had a nickel for every time I was asked if I’d work for a percentage of funds raised, I’d be a rich man. But fundraisers that have been in the field far longer than my measly 10 years have long been against this practice.

The idea appeals to the entrepreneur in me. There’s a great deal of common sense in getting paid for your performance. When I start a business, I’m only paid on what works.

But since 1964, the AFP consistently says it’s an unethical way to do fundraising. I’ve tried to explain it as a fear that I’ll take advantage of a little old lady, getting her to give more than she should, so that I can pay my mortage.

Not all fundraisers join AFP or agree that this is an ethical problem. But how many more stories of tele-fundraisers that keep 70% - 80% of the donations they take in for fraternal police organizations and other charities do we need to hear before we agree there are abuses?

Now, according to the blog Don’t Tell the Donor, the AFP is trying to get this percentage injunction banned by Congress. According to the post:

The AFP maintains that percentage based fundraising is unethical because:

• charitable mission becomes secondary to personal gain
  
• donor trust can be unalterably damaged
  
• there is incentive for self-dealing to prevail over donors’ best interests
  
• the very philanthropic values on which the voluntary sector is based are undermined.

What do you think? Should Congress ban this practice?

For the life of me, I can’t figure out how charities can in good conscience sign these 80% deals!

Liz Strauss has a great post on innovation at Brainless Business Bible: Customers want innovation.

She says a speaker at a conference emphatically said “Customers want innovation.” He even had a powerpoint slide with that on it.

But, as she points out, customers are people. Does the statement People want innovation stand up to scrutiny?

She goes on to say:

Do we? I suppose some folks put down hard earned cash for “innovation.” Personally, I’m not fully sure what innovation is.

When I go looking for something, when I buy something on impulse, when I spend my money on what I need, want, or desire, innovation is not on my mind. Solving a real or perceived problem is.

Solutions make my life, easier, more fun, more elegant. Solutions make me feel better about myself.

Innovation isn’t about me. It’s about the person who thought it up.

Solving a real of perceived problem. Isn’t that what motivates all of us?

So to with our donors. If we’re solving a real or perceived problem, they’ll more likely make a gift. The problem way be personal, like being seen as giving to the socially “cool” nonprofit. Or it may be more philanthropic, like increasing literacy in the community. In reality, it’s probably a combination of many things.

So the next time you think you need to innovate by changing your branding, or redesigning your letterhead, or recrafting your website so you can raise more money…DON’T.

At least not without asking, “How will this solve a real or perceived problem for our donors and the people we serve?”

It may sound harsh but they probably care less what colors are on the letterhead or what teaser is on the outside envelope. If they do, you may not want them.

What you want to find is donors that are excited about funding your organization because of the problems it’s solving. Those are the ones you should invest time in!

To help you jumpstart your 2008 fundraising success, I’m offering 20% off two of my most popular offerings: Creating Donor Evangelists and the Highlands Ability Battery.

Creating Donor Evangelists
The Creating Donor Evangelists program gives you easy to implement tools to help take your relationships with your donors to the next level. If you want to learn practical steps you can take to help move your donors from donors to raving fans of your nonprofit, you’re going to want to get this!

The Highlands Ability Battery
The Highlands Abilities Battery is a 3-4 hour assessment that helps identify your natural hardwiring. We usually get stressed out trying to do things we’re not naturally created to do, or trying to accomplish our goals in ways that go against our natural strenghts. This test helps you see how to get rid of stress and increase your fulfillment with work and life.

After taking the assessment and getting the long report, you’ll also get a 90-minute coaching session with me to help you take what you’ve learned and put it into practice right away.

This is my “Norelco razor” product: I liked the results of this assessment so much, I became educated in giving it!

The Highlands is normally $399 but I’m offering it for 20% off as well.

To take advantage of these specials, go to http://fundraisingcoach.com/store.htm. After you put the items in your cart, type the word yearend in the coupon space. That will ensure you get 20% off and get a jumpstart on 2008!

But hurry, this sale ends on January 7!

Whether your fiscal year is based on a calendar year or some other cycle (ours starts in October!), December is a great time to review your goals.

So often we’re running so hard and fast that we don’t take time to look up and see what direction we’re running in!

Years ago, I distilled all I’d learned and read about goal setting and created the MagnetGoals goal setting system. It’s amazing how powerful simply writing your goals down on paper can be. I’m convinced if you wrote down your goals and shoved them in a drawer, you’d be amazed at how many were accomplished by the end of the year. But this program helps you do more than just stuff them in a drawer!

To get the free course or a free PDF of the MagnetGoals workbook, go to http://fundraisingcoach.com/magnetgoals.htm. The workbook includes a description of the MagnetGoals process and worksheets to help you through the whole process including listing the 100 goals and mapping them out.

In the meantime, here’s a fun take on the oft used goal-setting acronym “S.M.A.R.T.” Most everything you read about setting goals encourages you to set S.M.A.R.T. goals, goals that are:

• “S” Specific | Simple | Single
• “M” Measurable | Meaningful
• “A” Achievable | Acceptable | Attainable | Actionable | Action-oriented | Adjustable | As-if-now | Agreed | Action plan | Achieved
• “R” Relevant | Realistic | Reachable | Rewarding | Results-oriented | Result-based | Reasonable
• “T” Time-dimensioned | Time frame | Tangible | Trackable | Time-boxed | Timely | Time-sensitive | Time-stamped | Time-bound

Let’s make 2008 really great!

In keeping with the fundraising secrets on using the PS and writing with blue ink, I’m offering Fundraising Secret #7: Don’t ask for money on a post card (or a credit card number on a postcard).

It’s amazing but some of us do it! I did it last year. It seemed like an inexpensive way to remind people to give.

But one of the most important things about direct mail is that we need to supply a response mechanism. That’s why we always put a return envelope in with our letter. With a postcard, there’s no way for people to respond. Unless you expect them to go through the effort of getting to a computer and making a gift online. (Like I did.)

You guessed it. Practically no response.

Worse is when we ask a donor to use a postcard as the response mechanism. Sometimes we try to make responding to an appeal so easy, and so cheap for us, that we lose common sense.

I’ve even seen organizations ask, not only for a pledge with a postcard, but even credit card information! Credit card information!

Here’s where a good case of PYITS–put yourself in their shoes–would really help us out.

Would you give your credit card information on the back of a postcard? Why not ask for their Social Security Number or their estate plans!

Postcards are like mini billboards. You wouldn’t ask you donor to put their credit card info or death plans on a billboard, would you?

Postcards are terrific for announcing events. Or getting the word out about a new initiative. But a postcard is an abysmal way to raise money!

Nancy Schwartz is hosting this month’s Carnival of Nonprofit Consultants.

Check it out to see what the three top things some of us are committing to in 2008.

It’s not to early to start thinking about your 2008 goals. Be sure to check out my MagnetGoals program!