Don't be guilt-tripped into changing your mission.

In an article posted to their website today, Philanthropy News Digest passes on the information that a report has found that family foundations lag behind in social justice funding.

Reports like this abound in every sector. In general they tend to reflect the bias or mission of the agency or organization that commissioned and compiled the report.

Most people and organizations know that and just will shrug this off and move on, but inevitably some will react by deciding that they are somehow in the wrong.

A few years ago, a client was profiled in a newsletter as being "unsympathetic" to minorities because they chose to focus on developing job skills and teaching low-income folks the value of having marketable workplace skills. The gist of the original article was that their programs didn't reflect  the national ratios regarding racial distribution.

Their programs were not defined by race or gender. The only qualifier to participate in the training was to be un- or under-employed and have an annual income below the poverty level.

Unfortunately for the NPO, the majority of the people that responded were white females. Not too surprising, since females are normally the caregivers in single parent homes and the minority population in their area was low, but it gave the group that published the newsletter ammunition for the presses.

After several weeks of heated social media back-and-forth, the board of the targeted NPO  met and decided to develop a minority-only program within the main program. They reasoned that would not only get the critics off their back, but open up new and perhaps better sources of funding.

It didn't work out very well.

First, they had trouble attracting minority participants. Since that had been a problem from the start, a disproportionate amount of time was spent to reach out to that segment of the population, and the main program outreach suffered accordingly.

Second, when they had to provide racial breakdown information for their program participants and graduates, i.e. their outcome results, they remained weighted toward white females. Hardly surprising, since the total minority population, i.e. all other races, of their service area was under 27%.

After struggling with the problem for three years and watching their funding fall by 35%, the board voted to resume operations as they had been prior to the bad press

The moral to this tale?  Do what you do and do it well. You can't please all of the people all of the time.

Political winds change constantly. If your programs are sound, needed and most of all effective, the money will be there.

Need donors? Think like a salesman.

One of the hardest concepts for me to get across to new nonprofits that want me to get grants for them  is the concept of producing what you might call a sales pitch when approaching donors. Nine times out of ten, when I produce a grant narrative for them I get it back with the words "we need" added multiple times.

For-profit companies have no problem understanding that while their motive is to make money, they have to create a product or service with market potential and then design a sales pitch to sell it.

Nonprofits, particularly new nonprofits, don't readily make that connection between the mission and the sales pitch needed to fund it.

What makes you decide to spend money on something?  You either need it, want it or both.

If you both need it AND want it, you are far more likely to haul out the credit card or wallet and actually cough up the cash. The trick is in determining which motive is driving your potential donors, and then appealing to that motivation.

That's the somewhat over-simplified reasoning behind approaching donors for money. They have a need, specifically a need to help someone or something, and you have the product (program) that will fill that need.

   

Impulse buyers initially react on the spur of the moment.  They are the ones that hear or see something that strikes a chord and pick up the product (program) and head to the check-out line. For them you need an emotional component to your appeal to get their interest in the first place. I call them Heart, Head, Hand donors, because that's the way they give.

   

Your job at that point is to convert the impulse to a sale. If they recognize your nonprofit's name and associate it with a record of good works, your can be fairly assured they will actually write the check. If not, you need to have resources available to them that prove your legitimacy.

Investor-type donors on the other hand have their own goals, and they expect a return on their money.  In the nonprofit world, that means actually improving a condition that corresponds to the donors mission objectives. You already have a common interest, so you don't need to sell them on the mission. I call them Head to Hand donors, because their hearts are already engaged.

For them, you need to produce a package that shows that you understand their mission, that your program is compatible with that mission, and  most of all that you are in a position to produce results for that mission. It isn't enough to make general statements like "we want to help low-income children" or "give goats to every woman in Africa".

Notice that at no point have I said this is about your needs. That's not to say that you shouldn't have goals for any money you raise, but the appeal can't be about you.

People give to benefit the end users of the money. They already know that you will receive the money, but they aren't primarily interested in supporting your organization unless they are specifically interested in organizational development.

Here's the difference.

When you say "WE need money to help feed children", you break their line of sight to the end result. They want to visualize a happy well-fed child, not your new office furniture.

When you say "YOU can feed little Johnny lunch this month for just $30.00" you are making the donor responsible for little Johnny.

See the difference?

Need help with your appeal?  Drop me a line at rightwords@ida.net. 

Making your crowdfunding appeal work.

Crowdfunding is a nonprofit (and small business!) financing option that has generated a lot of interest, both here on this blog and throughout the internet. For nonprofits in particular, it can bridge the three-year development gap before you can hope to attract significant grant funding.

"Joel" responded to my last post on the subject in an email saying he had tried crowdfunding and hadn't even met his modest goal of $500. He mentioned that he posted it, checked back just before it was due to close and only had eighty-five dollars in contributions.

That points out the reality of any type of fundraising, especially crowdfunding.

As Joel found out, making crowdfunding actually work isn't as easy as it sounds. One well-known site reports that less than 10% of the campaigns it hosts actually meet goal. Others report success rates of up to 55%. None report 100% success. Success isn't a sure thing.

Crowdfunding isn't a passive exercise.

To put it as simply as possible, your crowdfunding appeals are investor presentations. Small businesses tend to get the idea of presenting value for money, nonprofits not so much. This is especially difficult because the real value for donors is not quantifiable in dollars and cents.

Think about how you invite people to a party. Would you just tack a post-it note to your front door and expect to have a fabulous turnout?

A fully functional fundraising strategy is pretty much a necessity for success. That includes the usual elements of PR and marketing you would use if you were planning an in-person event. If you are just starting out and looking for seed money, you will need to do a whale of a sales job to convince donors of your legitimacy, so strong board bios, program descriptions, goals and supporter profiles are recommended.

Some sites allow, or even insist on promotional videos, but if they don't you might consider presenting a short (1-2 minutes max) video on your website or on YouTube or other social media and link to it in your appeal. They don't need to be professionally produced, but they do need to be relative to your appeal. You also need to have a link in the appeal to your website or at least your Facebook page.

Organize your campaign for success.

While businesses can offer a share of tangible profits and a return on investment, nonprofits (and here I mean 501(c)(3) organizations, not L3C's) are not able to do so, since all the money raised (less processing fees) has to go to fulfilling or supporting their missions. Since donors still have to be engaged, or to put it bluntly, enticed to contribute, another strategy is needed.

That is often done through the use of rewards. Those might be as simple as a nice thank-you email,  involve  merchandise like a blanket or cap, or  something more personal, like a photo-op with the board or a prominent supporter. That can mean forming alliances with business supporters who will donate merchandise or services such as printing. Use larger prizes for larger donations. Just be sure the rewards don't violate any IRS rules. You need to secure this support before starting your campaign.

Another pitfall for any crowdfunding hopeful is lack of understanding about how the process works. On one level it's still a sales pitch, but you still  need to create an emotional connection so that people will stick around long enough to actually donate. Having a strong statement of need is critical, so create that in advance. Have a concrete goal for the funds. General appeals with unspecified uses for the money don't do as well.

The truly nice thing about crowdfunding is that unlike a lot of grant applications, you can inject some emotion into the picture. Don't be shy about appealing to people's emotions. If you say "people are hungry" try to have some pictures or first-person stories that illustrate the problem available.

You need to have a strong network.

People you don't know don't just roll out of bed in the morning and say "I think I'll troll the web and find someone to give money to," and they certainly aren't going to put your name in the search terms.

Your network, i.e. your existing supporters and contacts have to help you get the word out as well as being your first donors. If you've ever been to an auction, you know that everybody sits on their hands until the first bid. You need people to start the ball rolling by getting a few donations posted. Also like an auction, most of your support will probably come in the last few days, provided that you really push for the support. Don't give up on the campaign too early.

If you have three people following you on Facebook, that's probably not going to get the job done. Somebody has to email, like, or tweet the message every day to people who will then do the same thing. You may have to use traditional advertising methods like flyers or ads to drive traffic to the campaign. Ask, ask again, and keep asking. This is grassroots networking at its finest.

You need to have good basics.

Some sites require that you  present a formal presentation to the website before they will even list you. That means you will need things like a business plan, program descriptions and a budget. Others require that you are able to respond to inquiries with those documents. Most, if not all the sites require that if you advertise you are a nonprofit, you have the paperwork to prove it.

A web presence is pretty much mandatory. You should have a website where people can get some in-depth knowledge of your mission and competency. A social media presence such as Facebook, or any of the other platforms can substitute, but if you are looking for really big dollars (and that's mid-five figures or more in this world) people are going to check you out. Be sure to add a link to your campaign and the start and end dates in any online copy or email blasts. Don't make prospective donors hunt for the crowdfunding site – they won't do it.

Read all the fine print.

Reputable crowdfunding sites will have a fully detailed terms and conditions section. Find out how much of the money you actually get, how and when it is transmitted, whether you have to meet minimum goals to get the money and what guarantees the site offers to assure that if your goals are not met, the money is returned to the donors. Find out if there are any limits on how often you can post a campaign. Look for reviews or complaints online.

Be realistic.

Your goal needs to be realistic for the phase you are in now. If you are new, asking for a million dollars isn't reasonable, and it guarantees that you won't meet your goal. If you are established, and have a good track record to show that you use donor money well, then you can be more ambitious. Crowdfunding can and has reported campaigns raising well over $100,000.

Crowdfunding might be the answer to surviving that period between initial start-up and the point at which you can compete for grants, but it isn't a simple, easy process. Before you click "sign me up",  do your homework.

Wondering if your crowdfunding campaign measures up?  Drop me a line at rightwords@ida.net if you would like an inexpensive review.