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February 10, 2019 by royjones Leave a Comment

The New Normal for Year End Giving…

Roy Jones, CFRE, www.RoyJones.org

December has changed for most non-profits, we have just experienced the biggest decline for a December in more than a decade. Volatile stock markets at year end; combined with expensive, divisive political campaigns and new tax implications from one year to the next are forcing most non-profits to rethink the giving calendar.

Is this the new normal?

Most NGO’s saw an overall increase in giving, but the gains did not come as they had in the past. The 4th quarter was important, but the month of December and more specifically, the last week of December proved to be a tough time for most. This contrasts greatly from sharp late December spikes in giving seen by the non-profit industry for decades.

I have said for years that “half of all giving happens 4th quarter and half of that number happens in the month of December and half of that amount happens the last week of December and half of that happens the last day of December.” That statement was NO LONGER true for most NGO’s and it likely may never be true again.

FOCUS ON YOUR MID-MAJORS. Overall giving was certainly up for the nonprofit industry in spite of the December decline. The number of regular donor who give under $1,0000 (most give under $100) will continue to decline for most NGOs, but those with high capacity do continue to give higher amounts. Charities should now be creating more high level communications to the middle donors ($1,000 to $4,999) and working hard meet with those with capacity to upgrade them to 5-figure givers.

Mid-major donors usually prefer fewer direct mail appeals, 6 to 8 per year, compared to the industry average of 18 appeals a year. As importantly, mid-majors don’t like high color, glossy, expensive looking mailings. They like it “down and dirty”. They want it highly personalized but don’t want you wasting money on fancy printing and expensive postage. Once a donor starts giving $1,000 – $5,000 – $10,000 – $50,000+ they become an “investor” in your charity or nonprofit. They don’t like seeing you waste money on big color and a massive number of mailings. Most of the complaints your charity receives about the mail come from high capacity donors or prospects.

VISIT ONE-ON-ONE WITH YOUR MAJORS. How many $5,000+ donors do you have on your file? Do all you can to thank them in person. Decide how many visits you can do personally and then MAKE IT HAPPEN. Then reach out to key volunteers, staff, executives and key board members and ask them to help you visit the top supporters that you are unable to get to. You will lift giving by 20% just by saying thanking someone in person and if you are able to make a specific ask for support, you can increase giving per donor 50 to 100% or more.

GIVING TUESDAY IS NOW THE TOP GIVING DAY. December 31st may no longer be the crescendo of all your fundraising plans. Focus earlier and consider making Giving Tuesday the new focus for your yearend strategy. In 2019, Giving Tuesday is on December 3. You should role your marketing plans out to culminate on Giving Tuesday. Shift your yearend messaging around this date, not December 31. Expand the Giving Tuesday focus to your direct mail donors, and most certainly, your major gift donors. Don’t keep Giving Tuesday isolated in the digital and online giving segments of your file.

TALK TO YOUR YOUR MIDDLES WHO ARE “BUNCHING”. The new tax code gives a donor $12,000 in deductions whether they donate that much or not. Sounds good right? The problem is that financial advisers are looking for methods to enable their clients to itemize deductions. In order to do that the client (your donor) has to have more than $12,000 a year in deductions. Financial advisers are often recommending to your middle donors to give to charity every other year to reach this threshold. The technique is referred to is “bunching” or “bundling”.

Reaching out to your December “no show” middle donors in the first quarter of each new year is going to be increasingly more important. You need to find out if they are combining multi-year gifts. Encourage them to place their intentions in a written pledge to your charity. You may even want to create a special club, like your sustainers, for this unique group. In addition, you want to be careful not just to just lump them into your lapsed donor treatment because they did not make that year end gift. Remember, the more communication about this the better.

FOCUS ON YOUR EQ WITH DONORS. With the number of smaller donors declining, but the number of major donors making bigger gifts you need to be focusing your your “emotional intelligence”. Your EQ, not just IQ, is increasingly important to create emotional connections with your BIG donors. Donors who make larger gifts want to see transparency, authenticity and an emotional connection with the charities they choose to support.

Nonprofit EQ begins with your transparency with your 990 tax forms, your annual report, your annual audited financial statement and how accessible these documents are on your website and in sharing in print with key supporters. The successful charities in the future meet with key donors and answer questions about not only annual goals, but 5-year plans and long term goals.

    Filed Under: Uncategorized Tagged With: charity, major donor plan, major gifts, major giving plan, ngo, Roy Jones, Roy Jones Reports, RoyJones.org, year end fundraising, year end giving

    January 9, 2018 by royjones Leave a Comment

    Six Fundraising Steps for Planning Your New Year

    Roy C. Jones, CFRE
    Roy C. Jones, CFRE

    Unlike most people who call themselves “fundraising counsel” I am not one who wastes a lot of time with grandiose vision papers and colorful case statements.  Every January I encourage charities to spend more time on practical, actionable events rather than writing beautiful superfluous words about their organization and cause.

    Yes, case statements are important, but what has been said has already been said.  Do you really think that you will be more creative or more inspired than you were a year ago? Mission case statements do not come down from on high in a way that suddenly moves donors to give more.  It just does not work that way.

    Remember, donors do not give to case statements… they give to people. More specifically, they give to people who are listening to them and are able to identify needs that touch the donor’s heart.

    Spend your time over the next few weeks outlining actionable steps you can take to know your donors better this year than you did last year.  Better relationships with your donors will always translate into more money for your charity or cause.

    Set goals based upon your actual results from 2017.  While we all hope that lightening will strike, you have to be realistic.  Here are a few New Year’s guidelines for goal setting and planning that will make a HUGE difference on your bottom line in the new year:

    1. NEWSLETTER.  Plan for increases of 3 to 5% – with 6 to 10 issues a year.  First and foremost, make sure that everyone, regardless of suppression code, gets your newsletter.  If you do not produce a newsletter, start one immediately!  In addition, your newsletter should include a “lead letter” that focuses on a need presented in the newsletter and makes a “soft ask” for support. And yes, your newsletter package should have a reply device and reply envelope.
    2. DIRECT RESPONSE. Plan for increases of 7 to 10% – with 14 to 16 appeals a year.  (The average charity in America now mails 18 times a year. ) This would be for all of your direct response channels, such as direct mail, telemarketing and digital strategies using your website and social media, do not expect to see gains bigger than 10 percent. Of course, this is contingent upon your attrition rate and the amount you are spending on acquisition in these channels to offset attrition.  If you do not do enough new donor acquisition spending, only one thing is certain in direct response fundraising… attrition.
    3. MIDDLE DONORS. Plan for increases of 10 to 12% – with 10 to 12 appeals a year.  Middle donors are donors who began giving to your organization through direct response, but through systematic cultivation, volunteering and event participation have increased their giving past the $100 threshold.  Middle donor definitions vary by industry but it can range anywhere from $100 to $5,000+.  Personally, I like targeting $500 to $4,999 a year as the middle donor sweet spot and begin treating any donor with a single gift of $5,000 or more as a major donor.  It is critical that you begin encouraging middle donor giving through clubs or giving level recognition.  While it is not a driver to get them to give more, it is a tool that keeps them from giving less and renewing more frequently. The communications needs to be different for your middle donors than your standard direct response donors.  It should be consistent in the same style and tone from one month to the next.  Do not go back and forth between regular donor communications and middle donor communications.  Always have a “high value” copy version for your middle donors and major donor prospects.
    4. MAJOR DONORS. Plan for increases of 15 to 20% – with 6 to 10 appeals a year. All communications need to be in a “one-to-one” format.  Nothing which appears to be mass produced (excluding the newsletter, of course) should be sent to these VIP’s.  What does this mean?  Real hand addressed letters, actual overnight letters by FedEx or UPS, box packages with appreciation gifts (sometimes called dimensional mail), hand addressed post notes, paper clips, and real photos – even framed.   Yes, this is going to cost more per piece.  These types of packages can run anywhere from $3 to $5 per piece, but the ROI is HUGE.  We have seen response rates as high as 40% and average gifts of over $1,000.  Treating your top 100 to 500 donors special is worth the investment. Remember, in researching your top prospects that you are looking for not only wealth, but philanthropic intent.  Do they have a history of giving you large donations?  Do they have a record of giving to other charities major gifts?  Philanthropic intent the key to increasing major donor giving.
    5. DO YOUR RESEARCH.  The information is available through wealth overlays and donation recognition to identify and rank you donors from 1 to 100, 250, or 500+.  Rank you donors and begin meeting with your best prospects first.  Finally, have a moves management plan for each individual target.  I encourage folks to have a plan with timeline for each individual donor.   Here is a sample of what I have adapted and used over the last few years. It was developed by my friend, Dan Shephard, during his days at Virginia Tech.  Individual Donor Plan – Quadrant Analysis Template.   You can reach Dan at www.TheFrontline Fundraiser.com   Don’t be afraid to personalize it to your preference, but use it in 2018. 
    6. PLANNED GIFTS.  Plan for increases of 10 to 15% – with 2 to 4 touches a year, usually a April 15 survey and a year end reminder. Fund raisers should seize the opportunity in 2018 to talk to donors who are seeing huge gains in the stock market and investments.  Trust me when I tell you that estate planning support from not-for-profits is going to explode this year!  Donors will work with charities they trust.  I suggest a lead generation campaign that takes advantage of when tax savings are top of mind for donors: March – April and Nov – December.  A letter or two during these windows will generate a lot of interest.  A simple reply device to request a “free” retirement planning information will produce great results. Remember, you are targeting people who are between the ages of 60 to 80.  The sweet spot is around 70 years old.  If you have not done an age append on your donor file, do it.  Finally, remember you are looking for people who have written the most number of checks.  Frequency of giving is critical to determining the likelihood that the donor will make a planned gift or name you in their will.  You are not looking for BIG check writers or major donors.  You are looking for people who are likely between 65 and 75 years of age who have written 10, 25 or 50 or more checks.

    Filed Under: Fund development Tagged With: development, fundraising, Roy C Jones, Roy Jones, Roy Jones Reports

    December 1, 2017 by royjones Leave a Comment

    The Most Wonderful Time of Year

    Holiday Times are Critical to Development

    I know many fundraising professionals in the development industry that literally take the last six to eight weeks of the year off. They move into autopilot mode. They get off the road and nestle snug in the offices (and beds), with visions of sugar-plums dancing around in their heads…

    Christmas is the best time of the year to build real friendships with your supporters and board members. Instead of getting comfortable with “home for the holidays,” development professionals should use the season to demonstrate to their donors that they care about them and that they truly see them as friends and not a “mark” for the next big gift. Thanksgiving and Christmas should be a time of “ministering” to your donors.

    Rest assured of one thing, money always follows ministry. If your supporters, board members and major donors know that you care more about your relationship with them than you do their money, the gifts will flow to your charity or cause. However, if the holidays come off as some contrived marketing technique, donors smell it coming from a mile away. You may lift giving response rates with such approaches but rest assured there will be fewer zeroes at the end of each check.

    Cash gifts should be a natural byproduct of connecting with your friends. In order to develop donor relationships you have to listen and let the donor “tell you” how and what they want to give each holiday season. Knowing your donors giving priorities will successfully harvest bigger contributions by December 31st.

    A donor said to me last week something I have heard many times before, “Roy, you are the first person to ever ask me what my goals for giving are and how it may have changed from last year.” Drill down into our donors’ hearts and minds to understand their attitudes and desires. You can then match up your non-profit’s projects with the need the donor is feeling led to support.

    If you will spend this Christmas building real relationships with people who are your real friends, as the economy turns around, giving is going to increase exponentially. But be careful how you talk with your donors NOW. Christmas, this year, should be about ministering to them, appreciating them and caring about what their needs are.

    Donors are becoming more conservative in their giving. It is critical that you understand that the charity who gets the most money at year end is, most likely, the charity who spends the most time with the donor. To quote an old Southern Civil War general, “The one who wins always get there the firstest with the mostest…” Not good grammar, but a great year-end fundraising philosophy.

    Now people are giving to fewer organizations – AND only to trusted organizations. Use the holidays to develop real friendships and relationship with your supporters. Remember that credibility is essential for your fundraising now more than ever. How do you establish credibility?

    The most important aspect to boosting your credibility for year-end giving is that you cared enough to come see your friend at Christmas… while all the other charities and nonprofits were tucked in their beds with visions of sugar plums dancing in their heads.

    Push back from your desk, get in your car or get on that plane, go visit your best supporters and do one thing… say thank you and listen to their hearts at the holidays. If you do you will not regret it… money always follows ministry.

    Coach Ro Jo’s Top 10 Holiday Fundraising Tips:

    1. Start Baking Cookies: Hand deliver home made cookies to your top 100 donors and see what happens!

    2. Hand Addressed Christmas Cards: Don’t do a mass produced, laser-signed Christmas card. Take the time to hand address and write a heart felt message for each one.

    3. Call and Leave A Message In Santa’s Voice: I’m not kidding. Thank them for supporting your charity and then in your own voice, laugh and be joyful, tell them to have a great holiday and leave your cell phone number. SEE WHAT HAPPENS!

    4. Send a Table Center Piece or Wreath to Your Top Financial Partners for Thanksgiving or Christmas: Just say thank you… and make sure it comes from you and your spouse (not the charity). Make sure your home or cell phone number is on the card.

    5. Make Christmas Ornaments at Your Charity: Make it a staff or volunteer project. It teaches thankfulness and it will be very special when you send it to your donors and tell them how it was made. Send a picture along of the team making the ornaments.

    6. Create an iPhone video: Thank the donor by first and last name while standing in the middle of a project or area that reflects the work of your charity. Thank them by name. No fancy music. No words or banner adds. Just a gritty 30 second iPhone thank you message. Be sure to text it as well as email it.

    7. Mail a Christmas Present: Buy your top donors a small gift. $25 or less. Take the time to wrap it in beautiful paper and attach a heartfelt note about what their friendship means to you. I always mail it UPS because I like the driver knocking on the door. Remember, your relationship is NEVER about the money. Don’t talk about their giving in your note, talk about their friendship.

    8. Thanksgiving Day Texts: Send out 50 to 100 individual text messages to your top supporters thanking them on this special day. This isn’t a mass “Happy Thanksgiving Day” text. This is a personal thank you/wishing you a heartfelt day of celebration.

    9. Ask The Donor To Send a Card to YOU. If you work with children, seniors, the sick, those with any kind of need… Write and call you top donors and ask them to send a card or two to you that you can give to those your charity or ministry serves. Don’t mention money… see what happens!

    10. On Christmas Day send a short letter “counting your blessings” to your top supporters. Get personal. Be thankful for family, kids, and end the note with being thankful for lifelong friends… “friends like you.” Don’t mention money. Just be thankful on Christmas day!

    Remember, a major donor who invests in your charity must believe their relationship with you is NOT ABOUT THE MONEY. Use the last eight weeks of the year to prove it!

    Filed Under: Year End Giving Tagged With: major donors, Roy C Jones, Roy Jones, Roy Jones Reports, year end fundraising, year end giving

    June 22, 2017 by royjones Leave a Comment

    Footprint Donors…


    I traveled to a major city recently and met with a man who had given $25 million to charity over the last decade. The amazing thing was that he is in his 80’s and still working everyday. As a matter of fact he travels to China every month to oversee one of his new manufacturing companies. It seemed that the older he got the more he worked.

    Over dinner I thanked him for his support, for his tenacious hard work and most importantly, his special heart. Then I pivoted to listen, by asking him one simple question, “Why?”

    Why would a man in his mid-80’s keep working so hard, continue traveling and consistently logging in many 60+ hour work weeks?

    Why had he not retired, sold his company, slowed down and just managed investments?

    He paused and with a steeled resolve he explained…

    “Footprints…”

    I interjected, “Oh, you mean like that Jesus poster I’ve seen; one set of footprints when things get tough because Christ is carrying you?”

    He laughed and said, “You don’t get it.”

    “You see, when you get to my stage in life you begin thinking about your how little time you have and what you do with it,” he continued. “It is not about what you keep, but what you can give away… It is not about how much money you make, but how much you can invest that can keep impacting the world after your time is up… you have to leave some footprints. I want to see my footprints all over the face of this planet before my time is done.”

    This man refuse to retire today. Why? So he can expand his impact on the world! He continues to earn so he can expand his impact footprint.

    I walked away with a deep respect for this man.  He had made such an impression on me.  When he could have been retired like most of his peers, in the 4th quarter of his life, he has decided instead to “leave a few more footprints”. I had to ask myself how many other “footprint donors” were on my file. How many people are there who view themselves as vehicle to pass resources through in order to build a legacy… a footprint on the planet before they leave?

    When working with “footprint” donor it is critical to have your offer or case for support defined and the ask spelled out in writing. They are not just looking for their name slapped on a building. They want to know what impact the building is going to have… how many people the building will serve… how many lives will be impacted.

    They want to see the lives impacted. The want to hear stories of lives changed forever… enabling children to return to school, empowering a parent to work again and contribute to the success of their communities.

    Author Patrick Renn may have said it best in his book, Finding Your Money’s Greater Purpose, saying:

    “Each of us, through our contributions as volunteers and benefactors, holds the power to change the course of society for the better. We can leave our mark on this world with the time and resources that we dedicate to others. That is what becomes our legacy.”

    “Footprint donors” are looking to leave a mark on this planet that is distinctly part of their legacy.

    Filed Under: major donor, major gifts Tagged With: major donor, major donor plan, major donors, major gifts, Roy C Jones, Roy Jones, Roy Jones Reports, RoyJones.org

    May 6, 2017 by royjones Leave a Comment

    Do You Have A Heart For DONORS?

    I sat with another precious family today… I’ve met with more than 100 supporters over the last 12 months. I asked them if they knew how many consecutive years they’d been giving? They shook their heads no… I told them “27 years… thank you, you are so special to us!” I paused just to let the gravity of the number of years sink in and then ask them another question, “Do you know how many times you have sent a gift to help the poorest of the poor?” Again, they shook their heads no, I told them “327 gifts, you are truly heroes to our cause. You have changed so many lives forever. Thank you”

    Tears rolled down their cheeks. They cried and wept out loud and could only say we just didn’t know anyone knew. I thanked them again and again through the tears. I assured them of the many lives that have been saved over the last 3 decades because their sacrificial giving. There is a joy of giving… and finding the heart of your supporters.

    I have spent more than 30 years helping non-profits and conducted more than 250 donor audits for organizations of all shapes and sizes throughout my career. Of course, I don’t like the word “donor” and most “donors” do not like the word either. They are friends, volunteers, supporters, partners, investors, backers and sponsors.

    One thing has remained consistent for most non-profits today, they view their role as partners in service. They are not just people who give like an ATM machine when we push the button. They not only want to pay for specific programs, but want to partner with our volunteers, workers, staff and fellow supporters.

    Financial partners really want to see four key things from nonprofits they support:

    1. Individuality
    2. Integrity
    3. Involvement
    4. Impact

    Individuality is key to most givers. They want to do specific things based upon the kinds of services you provide that touch their own hearts. For some, it is helping women and children. For others, it is helping those with a problem they can relate to. Every donor has something that touches their heart to spark their ongoing support.

    Integrity is key. The transparency and integrity that governs your operation is critical to the ongoing support of our financial partners. Your annual report, your end of project reports, your project proposal and specific giving reports make a real difference to our supporters.

    Your donors want to be involved. They want to see and hear the stories from the front lines of your charity or non-profit. They want to see the lives impacted and the stories of how your work is transforming the lives of others. How does what you do impact entire families, enable children to return to school, empowering a parent to work again and contribute to the success of their communities.

    Most donors give from the depth of the heart, not from a spreadsheet. They give sacrificially. Our job is to minister to donors with the same affection and care as we do those our charity services. I truly believe caring for the hearts of your supporters is as important as the actual work your charity does. Success always comes to those that place a priority on caring for the heart of the donor.

    Filed Under: development, Fund development, fundraising Tagged With: development, fundraising, Roy C Jones, Roy Jones, Roy Jones Reports, RoyJones.org

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    • The New Normal for Year End Giving…
    • Six Fundraising Steps for Planning Your New Year
    • The Most Wonderful Time of Year
    • Is Your Charity About To Be Hit By A Hurricane?
    • Footprint Donors…

    Featured Post

    The New Normal for Year End Giving…

    December has changed for most non-profits, we have just experienced the biggest decline for a December in more than a decade. Volatile stock markets at year end; combined with expensive, divisive political campaigns and new tax implications from one year to the next are forcing most non-profits to rethink the giving calendar. Is this the new normal?

    Footprint Donors…

    I traveled to a major city recently and met with a man who had given $25 million to charity over the last decade. The amazing thing was that he is in his 80’s and still working everyday. As a matter of fact he travels to China every month to oversee one of his new manufacturing […]

    About Roy Jones

    Roy Jones has more than 30 years of relationship building, coalition development, marketing and fundraising experience. He is recognized professionally as one of the top relationship managers in the country.
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    • The New Normal for Year End Giving…
    • Six Fundraising Steps for Planning Your New Year
    • The Most Wonderful Time of Year
    • Is Your Charity About To Be Hit By A Hurricane?
    • Footprint Donors…
    • Do You Have A Heart For DONORS?

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