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Fundraising Update

A weekly rundown of the latest fundraising news, ideas, and trends gathered by our fundraising editor Rasheeda Childress and other Chronicle contributors. You’ll also find insights from your fundraising peers. Delivered every Wednesday.

April 26, 2023
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From: Rasheeda Childress

Subject: Fundraising Advice From the Trenches

Welcome to Fundraising Update. This week, we look at some highlight from the Association of Fundraising Professionals’ annual meeting, including exclusive content. Plus, tips for improving your digital fundraising.

I’m Rasheeda Childress, senior editor for fundraising at the

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Welcome to Fundraising Update. This week, we look at some highlights from the Association of Fundraising Professionals’ annual meeting, including exclusive content for newsletter readers. Plus, tips for improving your digital fundraising.

I’m Rasheeda Childress, senior editor for fundraising at the Chronicle of Philanthropy. If you have ideas, comments, or questions about this newsletter, please write me.

Fundraising Advice From the Trenches

Last week, I attended AFP ICON, the annual conference of the Association of Fundraising Professionals, in New Orleans. In thought-provoking sessions, fundraisers offered advice from the trenches about the challenges they face in an uncertain economy and what they plan to do next.

Attendees were excited about planned giving, which involves donors leaving money to charities when they die, and gaining greater access to people who give through donor-advised funds.

High angle side view of watchful young man walking on green dollar signs against white background
Getty Images

Planned giving is an excellent option for middle-class donors because it allows them to make a huge gift — a home worth hundreds of thousands of dollars, for example — even though they don’t have a lot of disposable income or feel like they’re wealthy, Jeff Grandy, vice president of client development at Catapult Fundraising, told attendees.

“Individuals who are not high net worth don’t have a team of people guiding them through these conversations,” Grandy said. “When you share with them that they can help transform your organization, you are going to see their face light up. You are probably the very first person to tell them that.”

Another hot topic was the use of donor-advised funds. These tax-advantaged giving vehicles allow donors to put aside money that they can give out over a period of time in a way that’s similar to creating a foundation — but without all the legal and tax hassles, said Jeremy Wells, senior vice president of philanthropic services at the Saint Paul and Minnesota Foundation. DAFs are often available through community foundations or commercial firms with nonprofit arms.

While many fundraisers at the session complained it was difficult to get information about who had made a contribution via a DAF, Wells and his co-presenter, Nancy Brown, CEO of the Winona Community Foundation, noted that community foundation DAFs often do share the donor’s information with the charity.

Even when those DAF donors want to remain anonymous, it’s still possible to reach out to them, Wells says. “I had someone who got a $10,000 grant, and the donor wanted to remain anonymous,” he said. “[The recipient organization] said, ‘Can I send you a note to give to them?’ I said, sure. The donor called me back and said, ‘That was one of the most beautifully written thank-you notes I’ve ever received.’ So do take the opportunity to thank your donors.”

For tips on donor-retention strategies and ways to make things more equitable between staff who can work remotely and those who can’t, read the full story.

    Need to Know

    47.5 %

    — Share of fundraisers who disagree with the statement “donor stewardship is seen as everyone’s responsibility” at their organization

    All of us who attended AFP ICON recognize that it was a big event. So big, in fact, that it was too much to cover in one article. I wanted to share some of the extra tidbits exclusively with loyal readers of the newsletter.

    A session on the fundraising outlook for 2023 offered up some data from a joint study by the company Bloomerang and the Institute for Sustainable Philanthropy, “Fundraising Planning and Climate Report: Outlook 2023.”

    Conducted in November of 2022, the research found that many fundraisers find themselves on an island, without organizational support. Just under half (47.5 percent) agreed that philanthropy is embedded into the core of the organization. More people disagreed with the statement (47.5 percent) that donor stewardship is seen as everyone’s responsibility at the organization than agreed with it (42.5 percent).

    “Everyone needs to understand the role they play in fundraising,” said Rachel Muir, a consultant who was a panelist at the session. “Put that in everyone’s job evaluations. They need to understand the case for support and make the case for support.”

    Jack Alotto, a consultant from the Fundraising Academy who co-hosted a session on digital fundraising, agreed that it is extremely important to “create a culture of philanthropy in your organization.”

    Alotto and co-presenter LaShonda Williams noted that having a digital presence is necessary in today’s world. “Facebook, social media, email — this is how people start their day and why digital fundraising can be effective for you,” said Williams, associate director of alumni engagement and annual giving at South Texas College of Law Houston. “With digital fundraising, you can reach the masses and get ROI, when you do it properly with segmentation.”

    She added that when people have questions about the information they receive digitally, it’s crucial that any staff member be able to provide help to potential donors.

    “All you need is that one donor to call and for your staff not to have the answer to their question,” Williams said. “If they have to be transferred two times for an answer to a basic question, bye, bye. They’re gone.”

    ***

    At a session on how to build your donor pipeline, attendees expressed concern about losing important donors who are elderly. One person said her best donor was 102 years old.

    Destiney Patton, donor-relations manager at Second Harvest Food Bank of Middle Tennessee, suggested stewarding midlevel donors and trying to move them toward larger contributions. When Patton’s food bank was looking to secure $50,000 in matching funds, she went to several midlevel donors and explained the need for these funds, even though she knew there was a major donor who would probably put up the money if asked.

    “We had three donors who gave $10,000 each,” Patton said. “They gave significantly more than they ever had. It was a lot more work, and it’s so worth it. Some of those donors said to me, ‘If you can’t get that $50,000, let me know. I can do more.’ So I really challenge you to start looking at those next-level donors whenever you have campaigns like this.”

    Patton also advised organizations with a large portfolio of donors at the midlevel range to focus personal attention on those who are responsive to calls and emails and to use digital, automated messages to steward those who are unresponsive to the personal touch.

    ***

    Finally, at several sessions, fundraisers recommended using volunteers to help provide support for fundraising staff. For example, organizations that send mailings or offer facility tours can have volunteers stuff those envelopes or lead the tours so fundraisers can focus on other activities.

    Plus …

    • Digital Fundraising Tips. Several fundraising experts joined the Chronicle to discuss how nonprofits can use data to supercharge their online fundraising strategies in an increasingly digital world. My colleague Sara Herschander reported on the event.

      “A lot of past thinking around websites and online giving was that it was nice to have but not a need,” said Cherian Koshy, vice president of development at Merit America, a work-force development nonprofit. Now, he said, it’s become an essential tool in nonprofit fundraisers’ arsenal and one that can be refined and enhanced by data.

      It’s key that nonprofits make donating online as “easy and frictionless as possible,” said T. Clay Buck, a consultant who heads TCB Fundraising. He noted that any snag on a donation page, like a cumbersome form or a hard-to-find donate button, can make all the difference in virtual giving. “The more fields you have to fill out, the more friction,” Buck said.

      To learn more or to see the recording of the discussion, check out Sara’s article.

    Advice and Opinion

    Monthly Giving Can Help Nonprofits Weather Economic Uncertainty. Here’s How to Do It Well. Longtime monthly donors have shown they really care about an organization’s mission. Experts say groups shouldn’t be afraid to ask them for additional gifts.

    Donor-Advised Fund Holders Should Unleash Their Dollars Now — Not Wait for Government Action (Opinion). The co-creators of the #HalfMyDAF campaign are calling on more donors to join them as they launch two new rounds of matching funds to encourage people to grant 50 percent of their DAF dollars to nonprofits.

    What We’re Reading

    The Twitterverse Drama. Ever since Elon Musk begrudgingly purchased Twitter, the social-media platform has been mired in controversy. My colleague Drew Lindsay wrote about nonprofits’ concerns with the Musk-helmed Twitter, while Mashable wrote about LGBTQ groups leaving the platform after Musk deleted portions of the social network’s policy on hate speech.

    Just a few days ago, Twitter followed through on a plan that gave verified checkmarks only to Twitter accounts that had paid for them. Previously, a checkmark showed an account had been verified as belonging to the person or organization it purported to be. Now, it signifies the user is paying anywhere from $8 to $1,000 per month for the checkmark. According to the Associated Press, shortly after removal of checkmarks for users who refused to pay the fee, one imposter account claimed to be Pope Francis. Another imposter account claiming to be the official account of New York City sparred with the actual account of New York City that had lost its checkmark. Several nonprofits lost their verified checkmarks.

    This latest development speaks most directly to fundraisers because of the havoc it could wreak among supporters who get confused by a scammer. Having a new account with a name similar to your organization’s and a blue checkmark pop up on your giving day and tweet a link to a “donation” page that’s not affiliated with your organization would be a nightmare. Supporters could also take offense if a fake account purporting to be the nonprofit tweeted inappropriate content.

    After losing her blue verified checkmark, actress Alyssa Milano asked a question that Musk has not replied to but that I — and I’m guessing many of you, too — would love to hear the answer to: “Does that mean Twitter and @elonmusk are liable for defamation or identity theft or fraud?” Milano and several other celebrities who lost their blue checkmarks later had them reinstated, but, according to Variety, it wasn’t clear why — with several reinstated celebs saying they had not paid the fee.

    We’ll certainly be watching what happens over the next few months. If you have a Twitter issue due to the loss of verification or impersonating accounts, send me an email. I’d love to hear your story.

    Rasheeda Childress
    Rasheeda Childress is the senior editor for fundraising at the Chronicle of Philanthropy, where she helps guide coverage of the field.
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