Nonprofit Donor Management Tips and Tricks
A comprehensive overview of nonprofit donor portfolio management, exploring the need for tailored approaches, technological investment, succession planning, and transparent reporting to ensure successful fundraising efforts.
With co-hosts Julia Patrick and Tony Beall, the discussion begins with a fundamental question: what is a donor portfolio? Tony explains that a donor portfolio is essentially a collection of data on donors, including communication history, gift history, personal details, and more. This data helps nonprofit organizations segment their donors, tailoring their approaches based on donor levels, relationships, and other factors.
Tony emphasizes the importance of tailoring portfolios based on donor gift levels, noting that higher-level donors often require more time and personalized attention. Julia highlights the human aspect of donor management, sharing an example where a development officer insisted on managing certain donors due to shared cultural ties.
The conversation shifts over to the role of technology in donor portfolio management. Tony points out that investing in technology is crucial for nonprofits, enabling them to efficiently manage donor data, track interactions, and segment their donors. He describes that while small organizations might rely on spreadsheets, investing in comprehensive donor management systems can greatly enhance their operations.
Succession planning is another critical aspect of donor portfolio management discussed. Given the high turnover rate in fundraising positions, Tony stresses the importance of maintaining detailed records and historical data, ensuring continuity and a smooth transition when new team members take over, and most importantly, preserving the organization’s relationships with its donors.
Finally, the hosts touch on the importance and sometimes internal dynamics of reporting in donor portfolio management. Tony advocates for transparency . . . . . . . . .
Nonprofit Grant Prospecting Playbook (finding grants)
Understanding the intricacies of grant prospecting for nonprofits with a peek into the challenges and strategies surrounding the grant-seeking process. Featuring special guest Rachel Fidler Cannella from Instrumentl.com
Rachel begins by providing insights into how Instrumentl’s platform simplifies grant management. She highlights the platform’s ability to consolidate various aspects of the grant process, from prospecting to tracking funders, which is particularly beneficial for small nonprofit teams where one person often wears many hats. “Instrumentl is an all-in-one grants platform management system,” she explains, noting its efficiency and collaborative tools that help nonprofits manage their grant-seeking efforts more effectively.
A big part of this informative discussion is the misconception that grant writing is a simple task. Rachel describes the need for a deliberate approach, saying how many organizations fail to consider whether they are truly a good fit for a grant before applying. She explains: “On average, 75% of grant writers spend 10 hours or more on a single application.” This statistic highlights the significant time investment required, making it essential for organizations to carefully evaluate each opportunity to ensure it is worth the effort.
The conversation also touches on the latest changes in grant writing, with a focus on the integration of new technologies, including AI. Rachel discusses how AI tools, such as Instrumentl’s grant rating feature, are helping grant writers streamline their work, allowing them to reuse and adapt content more efficiently. This innovation, she suggests, could significantly reduce the time spent on each application, ultimately allowing organizations to apply for more grants without increasing their workload.
Show host Julia Patrick, and Rachel, . . . . . . . . .
Donor Advised Funds And Donors (New research)
New research about the world of donor-advised funds (DAFs) and their significant impact on nonprofit fundraising. Mitch Stein, head of strategy at Chariot, brings a wealth of knowledge to the table, sharing eye-popping insights from a recent report that explores DAFs’ growing influence in the philanthropic landscape.
Mitch begins by simplifying what a DAF is, likening it to a 401K or HSA, but for charitable giving. He explains how a DAF allows donors to contribute assets, receive an immediate tax deduction, and then allocate those funds to charities over time. The key innovation from Chariot, the “DAF Pay” tool, integrates DAFs directly into standard fundraising processes, making it easier for donors to give immediately without the hassle of logging into separate portals. As Stein emphasizes, “It’s about meeting donors at the moment they’re inspired to give.”
The conversation describes the rapid growth of DAFs, which have seen a near tenfold increase in accounts and assets over the past decade. Mitch cites that this growth is not limited to the ultra-wealthy, as more everyday donors, including younger demographics, are utilizing DAFs. He dispels the myth that DAFs are only for the wealthy, pointing out that “The minimum gift size has come down to $50,” showing how this tool is being used by a broader audience.
Mitch continues this informative conversation, discussing the implications of this growth for nonprofits, particularly in light of their report findings. The report reveals that nonprofits have seen a median increase of 214% in DAF revenue over the past five years, compared to just 1% in non-DAF giving. Mitch conveys the . . . . . . . . .
Building The Infrastructure For Fundraising (60 minute guidebook)
You’ll enjoy this celebratory interview with Tracy Vanderneck, a nonprofit thought leader and now a published author. The focus is on Tracy’s newly released book, The 60-Minute Guide to Building the Infrastructure for Successful Nonprofit Fundraising. Tracy shares her journey of distilling years of nonprofit consulting into a practical guide that aims to demystify the complexities of fundraising infrastructure for organizations of all sizes.
Show host Julia Patrick, acknowledging the monumental task of writing a book, especially one as vital as Tracy’s, begins with asking about the significance of building a lasting fundraising infrastructure, particularly for small to mid-sized nonprofits, as well as those new to the sector. Tracy shares, “Even some mid-sized nonprofits who have been fundraising on a wing and a prayer all this time could benefit from actually going back and adding some of the infrastructural pieces to it.”
Throughout the conversation, the two talk about the disconnect that often exists within organizations about the role of fundraising. Julia points out that many people, from board members to staff, often have misconceptions about what fundraising entails, sometimes reducing it to just socializing and asking for money. Tracy points to the importance of educating all stakeholders about the strategic and infrastructural elements of fundraising, stating, “Fundraising isn’t just going out to lunch or trying different things to see what would happen. There is an actual infrastructure and a strategy around how we go about fundraising to support nonprofit missions.”
Tracy’s book is positioned as a manual for anyone in the nonprofit sector, offering practical tools and insights that can be implemented immediately. With . . . . . . . . .
Nonprofit Operational Efficiencies and Transformations
A conversation centering on the importance of efficiency in nonprofit organizations that serves as a reminder for nonprofit leaders to prioritize operational efficiency, not only to improve internal processes but also to better serve their communities and stakeholders. As the guest, Dylan Bassett, CEO and founder of Department One Solutions puts it, “It’s about making things better and faster so that more work can get done, and ultimately, more good can be delivered.”
Dylan Bassett, whose consultancy specializes in aiding small, community-based nonprofits, talks about the need for operational transformation. He explains that many nonprofits, despite their dedication to their mission, often suffer from inefficiencies that limit their effectiveness. “Nonprofits sort of forget that they are businesses as well,” he points out, a common oversight in the sector. This neglect can lead to what he refers to as “tech debt,” a situation where temporary solutions compound into bigger problems over time.
Dylan shares his experience working with nonprofits that often tolerate inefficiencies, leading to a less effective use of resources. He mentions, “When nonprofits have strong operations, they have a higher capacity for work and thus mission delivery,” which connects to the direct correlation between operational efficiency and mission success. This efficiency not only enhances productivity but also makes nonprofits more attractive to donors who want to invest in organizations that can deliver results effectively.
The fast-paced conversation also covers the importance of ‘digital maturity’ and the need for nonprofits to adopt better processes and technology. Dylan encourages nonprofits to view operational transformation as an ongoing process, rather than a one-time fix. He suggests . . . . . . . . .
Navigating Donor Relationships Long Distance
Explore the nuances of maintaining and nurturing donor relationships, particularly when donors are geographically distant in this episode of “Fundraisers Friday,” with cohosts Julia Patrick and Tony Beall.
Tony begins with his ideas on adapting communication strategies to align with donor preferences, whether through phone calls, video conferences, or digital communication like video clips and PDFs. He describes the importance of understanding how each donor prefers to communicate, with Julia agreeing that this understanding is essential for effective engagement. Julia also brings up the idea that video conferencing might offer a more personal connection compared to phone calls, especially in reading facial cues and emotions, which Tony supports.
Julia and Tony both underline the value of affirmation in donor relationships, with Tony suggesting that recognizing and affirming donors’ contributions can empower them and strengthen their commitment to the organization. Julia builds on this by saying that such affirmation is crucial, especially in times when fundraisers might feel isolated or uncertain about their efforts.
This fun chat between the two also digs into the evolving role of technology in fundraising. Julia and Tony share a common thread in their openness about using tools like ChatGPT to explore new strategies, demonstrating a pro-active approach to learning and adapting. They go on to discuss how even simple digital content, like video clips, can have a profound impact on donor engagement by showing the real-time impact of their contributions.
Julia raises point about engaging with donors on social media, cautioning that while some donors may enjoy public recognition, others might prefer a more private approach, stressing the need for fundraisers to . . . . . . . . .
Creating Impactful Nonprofit Cultures
The multifaceted challenges within nonprofit cultures and the threats that nonprofits face, particularly the dangers of siloed information and the reluctance to embrace change, with Sarah Quillen, Executive Director of the International Lyme and Associated Diseases Society (ILADS) Quillen, who has a background in fundraising and public relations. She shares the complexities of managing an organization focused on Lyme disease—a condition often misunderstood and underfunded, particularly in regions like the West where awareness is low.
Sarah begins by educating us on Lyme disease, explaining its severe and often debilitating effects on patients. She highlights the challenges in diagnosing and treating Lyme disease, saying that many patients go years without proper diagnosis, leading to significant health and quality-of-life impacts. Organizations like ILADS support research and medical education and advocate for better understanding and treatment of this and associated diseases.
This informative dialog then shifts to the concept of nonprofit culture. Sarah offers that nonprofits should be redefined as “for impact” organizations, which more descriptively amplifies the importance of strong infrastructure and strategic vision in fulfilling their missions. She notes that the nonprofit sector often operates under the misconception that minimal administrative spending is ideal, which can be detrimental to long-term success. “You exist to make an impact…when we all work together and all have one unified purpose, that is how we all succeed,” she says.
Sarah then shares with host Julia Patrick her experiences in leading ILADS through a significant cultural shift, particularly after succeeding a long-serving executive director. She speaks candidly about the challenges of bringing together a team that was previously siloed . . . . . . . . .
Going Digital With Donors (Donation research study)
An eye-opening discussion about an innovative study that Bloomerang has conducted to help nonprofits improve their online fundraising strategies. The study involves donating $25 to 500 different nonprofits across the U.S. and closely monitoring the donation process from a donor’s perspective. The goal is to evaluate how well these organizations handle donations, acknowledge donors, and ultimately engage with them to encourage future contributions.
Emily Kelly, National Accounts Manager at Bloomerang, shares their unique research approach, describing that the study is not about evaluating the organizations from a professional standpoint but rather from the perspective of an ordinary donor. This allows Bloomerang to identify areas for improvement in the donor experience with nonprofits. Emily points out that something as simple as ensuring the functionality of a “donate” button can make a significant difference. “The first thing that you can do when you go to your website is literally just hover your mouse over your donate button, make sure it works,” she advises, highlighting a common issue where some nonprofits’ donate buttons are not functioning correctly.
The results of the study reveal that many organizations have room for improvement in how they engage with donors after a donation is made. Emily notes that one of the most effective ways to retain donors is through personal engagement, such as a phone call within 24 to 48 hours of receiving a donation. She shares, “If you make a phone call to a first-time donor, they’re more likely to give another donation in the future… that likelihood increases by about 50%.”
By focusing on the donor’s experience, from the ease . . . . . . . . .
Nonprofits! Flex or Fade!
You’ll enjoy this compelling discussion centering around the crucial need for nonprofits to adapt and remain flexible in an ever-changing environment. . . . . . . a must-see for anyone involved in nonprofit leadership, fundraising, or board management, offering valuable takeaways on how to lead with purpose, adapt to challenges, and ultimately, make a lasting impact, with Amy Fass, the CEO and Executive Director of ShoesThatFit.org
Amy Fass, with her deep expertise and passion for the nonprofit sector, shares her unique perspectives on leadership, board management, and the challenges of nonprofit fundraising.
Amy begins by shedding light on the critical mission of Shoes That Fit, a nonprofit dedicated to providing brand-new, name-brand athletic shoes to children in need. She poignantly illustrates the impact of their work by stating, “Kids who don’t have shoes can’t go to school. They can’t join sports teams. They tend to hide and not feel like they belong.” This simple yet profound statement brings to life the real difference that ShoesThatFit.org makes in the lives of vulnerable children across the country.
As the conversation progresses, Amy delves into the complexities of nonprofit leadership, particularly the delicate balance between managing a board and leading an organization. She candidly acknowledges the inherent challenges in this dynamic, emphasizing the value of clear communication and shared understanding. “The executive director needs to really firmly realize that they are in charge,” she says, which shows the necessity for strong leadership and strategic vision in navigating these relationships.
Another big focus of the conversation, with host Julia Patrick, is Amy’s book, The Business of NonProfit-ing. The book . . . . . . . . .
Growing Your Piece Of The Fundraising Pie
Explore the evolving dynamics of the “fundraising pie” and how nonprofits can carve out a larger slice by embracing innovation and thinking beyond traditional methods. In a vibrant chat about the shifting landscape of nonprofit fundraising, host Julia Patrick sits down with Ben Erwin, CEO of Charity Buzz.
Ben is a seasoned expert at the intersection of technology, entertainment, commerce, and charity, and he talks about the need for new approaches in fundraising. “The charity sector has so much growth in front of it,” he begins. “It’s incumbent on all of us to figure out ways to incentivize innovation and raise more money.”
Charity Buzz stands out in this space by offering donors exclusive, money-can’t-buy experiences while raising funds for various charitable organizations. These experiences, ranging from intimate evenings with celebrities like George Clooney to luxury travel packages, appeal to a donor base eager for unique opportunities. Ben tells Julia, “What we do is increase the size of the pie by offering up customers, donors, and philanthropists really unique, in most cases, money-can’t-buy experiences—all in support of terrific charitable organizations.”
The informative conversation looks into the challenges nonprofits face in a crowded sector with limited resources. Ben points out that while the percentage of GDP donated to charity in the U.S. remains stagnant at around 2% for decades, the number of charities has skyrocketed. This situation makes it increasingly difficult for individual organizations to secure a meaningful portion of the available funds. “We need to think outside and innovate beyond just going out to our existing donor base every day, every week, every month,” he says. . . . . . . . . .
How To Incentivize Fundraising Staff
The often-controversial topic of incentivizing fundraisers. A pointed discussion revealing the complexities and challenges nonprofits face in retaining top talent in fundraising roles, where turnover rates are alarmingly high, with the average tenure of a professional fundraiser lasting only 16 to 19 months. Hosted by Julia Patrick, CEO of the American Nonprofit Academy, and Tony Beall, a renowned thought leader in the nonprofit sector
Tony starts with the comment that before even considering incentives, organizations must establish clear policies, processes, and measurements for success. He metaphorically refers to incentives as “the icing on the cake,” explaining that the foundational layers—such as well-defined job descriptions, performance metrics, and annual reviews—are critical to creating a meaningful incentive structure. Tony’s approach is rooted in practicality and experience, citing that incentives alone cannot solve the retention problem if these basic elements are missing.
A key takeaway from this enlightening chat is Tony’s focus on creating a “workplace of joy,” a concept often overlooked in traditional discussions about incentives. He highlights the importance of fostering an environment where employees feel valued, motivated, and happy, which can be a powerful incentive in itself. As Tony puts it, “Creating this workplace and just a place of joy is a huge incentive for folks.”
The conversation also explores the broader impact of organizational culture on fundraising success. Julia reflects on the disconnect between the board’s focus on revenue goals and the day-to-day realities of fundraisers, who are often judged solely on their ability to meet financial targets. This binary approach, where fundraisers either “win or lose,” contributes to the high turnover and dissatisfaction in the . . . . . . . . .
Working Through Cancer Treatment
A deeply personal and inspiring conversation with Alex Shwarzstein, a resilient nonprofit professional and cancer survivor. This conversation, titled “Working Through Cancer Treatment,” highlights the incredible journey of Alex, who has faced cancer not once but three times, all while maintaining her professional life in the nonprofit sector.
Co-host Julia Patrick opens the discussion by expressing gratitude for Alex’s courage in sharing her story. “I think you’re brave in just this part of your life. Just to actually witness to us what it’s like,” Julia remarks, setting the stage for an emotional and enlightening conversation.
Alex, a seasoned fundraiser, recounts her journey into the nonprofit world. At just 23, she realized her passion for championing causes and raising funds, leading her to a career in development. However, her path took an unexpected turn when she was first diagnosed with synovial sarcoma, a rare pediatric cancer, just shy of her 24th birthday. Despite the grueling treatment process, Alex’s determination never wavered. “I didn’t want to be treated like I was made of glass,” she shares, emphasizing her desire to maintain a sense of normalcy and strength.
The conversation takes a poignant turn as Alex discusses her subsequent cancer diagnoses in 2022 and 2023, and the transformative impact they had on her life and career. “I’ve come to a point where I’ve now accepted that cancer is an ongoing part of my life and, while at 24 I wanted it to have nothing to do with my identity, at this point in my life that is unavoidable and I’m just embracing it,” Alex states, reflecting her profound resilience and . . . . . . . . .