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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An Opportunity to Stop Doing (at least for an Hour) & Start Teaching About Prospect Research

by LoriNo Comments
Several months ago, Alyce Lee Stansbury (professor and fundraising consultant) asked me to be a guest lecturer for her FSU graduate level course called Fundraising and Fund Development, Askew School of Public Administration, to discuss prospect research. I've spoken to her class on this topic in previous years, and I was very much looking forward to another engaging conversation. Last night as I began, I, as I usually do, informed the class they should feel free to interrupt me with questions, especially if something I said did not quite make complete sense to them. This course tends to have a variety of students – some current practitioners within the nonprofit world, others just interested in the topic of the course, as it's an elective, so most students were likely rushing into class at the end of a long workday. Within the first couple of minutes, there was a question about the field of prospect research, "Is this a growing field?" and followed...
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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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Philanthropy – When Did It Become About Fundraising?

by David LawsonNo Comments
In the beginning there was a need and someone met it using their own time and resources. Then the need grew and became too much for one person, so they enlisted the time and resources of others. Out of all this activity was born a mission which served as the foundation for an organization to manage all of the time and resources. And so was born philanthropy. At some point it was decided a person needed to spend all of their time asking more people for more and more of their time and resources. And so the fundraiser was born. It was also when philanthropy began a long slow march away from its mission. Merriam-Webster defines philanthropy as: 1: goodwill to fellow members of the human race; especially:active effort to promote human welfare 2 a : an act or gift done or made for humanitarian purposes     b : an organization distributing or supported by funds set aside for humanitarian purposes Notice there is no mention of fundraising. It is about giving, not...
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Time for Vendors (and Fundraisers) to Be Big About Big Data

by David LawsonNo Comments
In January The Atlas of Giving provided fundraisers with an in-depth look at 2012 giving, and a forecast of what to expect this year. In February Blackbaud came out with their view of 2012 and 2013. For a sector that for years had to rely on Giving USA, who will not report their numbers until June, it is great to see two companies working to give us more real-time insights. Full disclosure, I am on the Board of Advisors of The Atlas of Giving. Even further disclosure, a company I founded - Prospect Information Network (P!N), is now part of Blackbaud. I also work and compete with Blackbaud, and have many friends there. I have no direct connections to Giving USA, but as a long-time social data geek I have used their data for many years. So fundraisers are pouring over this wealth of data right? They are excited to see they can now have not only more timely yearly reports, but also...
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Behind the Scores – The Untold Story of Data

by David LawsonNo Comments
APRA members — Register for the Upcoming Online Solutions Showcase Webinar May 8: Behind the Scores – The Untold Story of Data Level: Intermediate Time: 1:00pm – 2:00pm EST, 12:00pm – 1:00 pm CST, 11:00am – 12:00pm MST, 10:00am – 11:00am PST Speakers: David M. Lawson, Partner, TrueGivers, LLC, and Melissa Kwilosz, Assistant Vice President for Strategic Reporting and Analytics, Arizona State University Foundation Track: Prospect Identification This webinar will take you behind the scores where you will discover invaluable intelligence about your prospect's capacity, affinity, and philanthropic propensity.  David Lawson, a Partner with TrueGivers, LLC, will show you  how to identify and qualify prospects using over 200 data elements including home equity, household economic stability, discretionary income, buying behavior, lifestyle, personal interests, and philanthropic activities.  Melissa Kwilosz, Assistant Vice President for Strategic Reporting and Analytics at the Arizona State University Foundation will discuss how she has used the data to not only find prospects missed by traditional wealth screening, but also to better match the interests of their constituents with ASU's programs and projects. ...
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Best of Breed vs. Best of Vendor – Why Blackbaud Was (Sales)Forced to Buy Convio

by David Lawson8 Comments
The Blackbaud/Convio deal is not done (and in fact has been delayed for a third time), but it has sparked an increasingly heated debate about what the post Blackvio/ConBaud world will look like. The easy answer is less choice, less innovation, and higher costs. Based on previous Blackbaud acquisitions, those are good bets. What is harder to answer is the question of what is driving Blackbaud to make this very expensive acquisition which will saddle them with over $300 million in debt. Taking out a competitor; buying revenue (especially Convio's valuable subscription revenue); and obtaining clients they couldn't win with their existing products are all good possibilities and certainly have factored into past acquisition decisions. But I think there is something deeper going on. Blackbaud is a believer in the Best of Vendor business model which says that clients should buy all of their "solutions" from one company. The theory is that clients benefit from the vendor's ability to integrate multiple functions...
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