The Excitement and Anxiety of What Big Data Could Mean to You

by David LawsonNo Comments
I was thinking of ways to describe the challenges of Big Data adoption, and I remembered an incredible video of a woman hearing her voice for the first time. Her reaction was an overwhelming mixture of joy and fear. When you fully embrace Big Data you will experience the joy of seeing all your data, and the fear of what it might mean. [embedplusvideo height="200" width="350" standard="https://www.youtube.com/v/WlSOtH9BrRk?fs=1&hd=1" vars="ytid=WlSOtH9BrRk&width=455&height=283&start=&stop=&rs=w&hd=1&autoplay=0&react=1&chapters=&notes=" id="ep3456" /] For years we have dreamed of being able to bust through the silos and bring together all of the databases and documents into one place. More recently we have even dared to imagine bringing in all of the external data including the treasure trove of social media. Now this is actually possible, so what's holding us back? The easy answer is cost, but as companies roll-out more and more applications at lower and lower prices we will need a new excuse to hide the real reasons. Here are a few: What if the data...
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Time for a Mission Underwriters Laboratory

by David LawsonNo Comments
For returning readers you know I'm pushing hard to make the mission the center of the social sector universe and pushing back even harder on the idea of cost-of-fundraising. When you push you get push-back, and some of it has been around the challenges of measuring the mission AKA impact. The difficulty of evaluating impact may well be the reason the watchdog groups like Charity Navigator went for the easy math and created the whole cost-of-fundraising farce. Certainly the IRS 990 doesn't help. It tells as much about what an organization does as the 1040 tells about you and me. What if there was a place that looked only at the mission the way the Underwriters Laboratory only looks at products? The UL doesn't give a wit if the company is profitable. It simply wants to know if the product does what it says it does, and whether it is safe. Here is their mission statement:   Dedicated to promoting safe living and working...
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A Big Social World in the Cloud

by David Lawson2 Comments
I am off to the first of seven conferences, and one bootcamp, where I will be speaking between now and early August. Lori will be joining me for three of the events which makes the whole experience a lot more fun. As I look at the topics a couple of things are clear: Big data is lumbering its way into philanthropy; and social media is moving into the mainstream of fundraising. Even subjects like private company research are now incomplete without acknowledging the value Big Data and social media bring to the table. The noise of social media and the thumps of Big Data coming to life can drown out a topic that seems so yesterday - Cloud Computing. This is where all data will converge. This is where data becomes Big. This is what connects the internal and external social worlds. Not surprising to see Salesforce out in front of this with their moves into social analytics. Yesterday Blackbaud announced its...
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Donor Retention Begins at Home

by David LawsonNo Comments
Reading Underdeveloped: A National Study of Challenges Facing Nonprofit Fundraising was a sobering event. I have heard all of these complaints over the years, but seeing how truly pervasive they really are transformed them from anecdotal stories into systemic problems. It was certainly disturbing to learn how many development directors want to leave their jobs:   But this chart was downright terrifying:   Even in high performing organizations a culture of philanthropy is only present in 36% of organizations, and for everyone else 12%. It looks like we have created a culture of unhappiness, and it’s coming through to donors as they stop giving, or don’t start at all. No matter how good you are at compartmentalizing your life, if you are unhappy then your donors (and prospective donors) will pick up on it. This is why we included a special session on the topic at our upcoming Donor Retention Bootcamp: It’s Coming Through!  Politics, silos, dysfunctional teams, and demanding donors are just a few of the reasons...
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What Would Make the Rich Give More?

by David LawsonNo Comments
A recent study by SEI Private Wealth Management revealed insights into what would make U.S. Ultra High Net Worth Individuals (average wealth of $11 million in this case) give more. Before we get to that, let’s first look at the potential upside:   The average increase across all segments is 63%! So how do we make that happen?   The first two items are out of our control, but the next two are right in philanthropy’s wheelhouse – passion and impact – or at least they should be. One would think given their wealth these individuals are being approached by a number of organizations and their alma maters, so what’s missing? With all of the need in the world (and all of the organizations saying they will meet those needs), hearing people say they are not able to find something to be passionate about and want to more clearly see the impact of their giving, is frankly depressing. We have the greatest product in the...
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Cost-of-Fundraising is the Kryptonite of Philanthropy

by David Lawson2 Comments
When the conversation turns to cost-of-fundraising I can almost hear the collective sigh of missions across the globe. It is a knowing sigh, one that understands when the focus is on quantitative measures, the qualitative aspects of missions suffer. The cost-of-fundraising madness is truly the kryptonite of philanthropy. It turns the mission from a bold and daring venture into a meek shadow which only comes to life as a photo in direct mail or a website surrounded by copy extolling the virtue of how little was spent to send the photo or to receive an online donation. If you have been reading this blog lately you know I’m on a bit of a rant about the need to move away from the transaction-based culture of giving to a mission-based culture of philanthropy. Making this move will require that cost-of-fundraising be encased in lead and buried in the cave with other ideas which seemed good at the time, but not so much on...
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Donor Retention – All You Need Is Love

by David LawsonNo Comments
At some point during the 9 WOW Institutes I was a part of my great friend and colleague Jay Goulart would say, “It’s all about the love.” A lot happened during those 4 day-experiences in beautiful Henniker, New Hampshire, but when all was said and done it really did come down to love; loving your donors; loving your mission; loving what you do; and equally important is for you and your team to love being at your organization. If you nailed the love, then you had the opportunity to create a culture of philanthropy that turns donors into lovers of your mission. But how do you measure love? Is it money? Time? Those certainly can be indicators of commitment, but people can, and do, give of their time and treasure without so much as a smile on their faces. Rather than love, fundraisers can use guilt, peer-pressure, or a sense of obligation. Do any of those warm your heart? There are a number...
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The Mission Demands Fundraisers (of All Persuasions) Come Together

by David LawsonNo Comments
When your father is a fundraiser, and that fundraiser is Doug Lawson who wrote Give to Live, you are definitely going to have a bias towards major gifts. I don’t believe it is just pride talking that my father is one of the best face-to-face askers on the planet, and I’m sure as you read this he is either asking or on a plane to an ask. In this environment I grew up thinking if you needed a million dollars for your cause then you found a person with a million dollars to support it. This simple idea led me to create a series of donor profiling and screening companies the last 25 or so years. Early in my career I met Roger Craver who can write direct mail copy which almost puts the money in the envelope all by itself. For Roger if you need a million dollars get 50,000 to give $20 each. Then you have 50,000 supporters who...
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Creating a Culture of Philanthropy by Being Mission-Centered

by David LawsonNo Comments
A lot of ink – real and digital – has been expended on the topic of being donor-centered. After all the conferences, white-papers, books, and blog posts it boiled down to a simple message – listen to your donors and respect their individuality. This certainly seemed like sound advice which dovetailed beautifully with increasing the level (and quality) of stewardship in the fundraising process. Unfortunately as the idea of being donor-centered gained popularity, the level of donor retention fell. What happened? I got a clue a few years ago while presenting at the WOW Institute, an experiential conference of which I was part for a number of years. A well-known philanthropist, who was speaking about his experiences as a donor, commented that he did not want organizations to be donor-centered – he wanted them to be mission-centered. His comment got me thinking about how the donor-centered philosophy was part of a culture of giving where everything revolved around either asking for money or...
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So Much for the 90/10 Fundraising Rule – Time to Think in Tenths

by David LawsonNo Comments
The 90/10 fundraising rule of thumb has been broken (more like shattered) by my good friend Peter Wylie who provides some incredible data and insights on the CoolData blog. I was fortunate enough to receive an early look at the data, so I have had some time to ponder the implications. There is a wealth of data to explore, but here is the chart that really caught my eye:   This means that 1/10th of 1% of alumni donors to this school account for 60% of all giving (the top 1% represented nearly 96%). And Peter only looked at alums who gave. If he had factored in non-donor alums then the number would be even more dramatic if that is even possible. Before I continue I want to tip my hat to the amazing donors who are willing to underwrite such a large percentage of an institution's needs. I also want to say "well done!" to the fundraisers who worked with these philanthropists,...
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