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Study: D.C. Nonprofits Could See Better Days This Year
May 14th
Washington, D.C.-area nonprofits, which received fewer dollars in 2011, are bracing for better times this year, according to a new study by the Center for Nonprofit Advancement (CNA).
The study, as reported on by The Washington Post, showed that nearly half of the organizations surveyed report that their donors plan to maintain or increase contributions in 2012. This is in contrast to only 27 percent last year, and 15 percent in 2009. The CNA study canvassed nonprofits in D.C., Northern Virginia, and Montgomery and Prince George's counties in Maryland.
Another huge problem for D.C.-area organizations in 2011 was the amount of "rainy-day" reserves they had to use up as a result of the declined contributions. This practice appears to be fading in 2012, ad the CNA study found that the number of nonprofits dipping into reserves fell from 46 percent to 31 percent. In addition, organizations reporting a decline in revenue dropped from 48 percent to 40 percent.
Glen O'Glvie, CNA's chief executive, told The Washington Post that the reason for this comeback in giving appears to come from individual donors. He noted that it's much easier for one person to donate than for foundations and corporations. This notion appears to be validated because, as was reported in The NonProfit Times, corporate philanthropy is experiencing a sharp decline, according to a new study from the Council on Foundations.
Although the decline in donations seems to be slowing, CNA warns that it's not enough to quell the increasing demand for nonprofit services. 53 percent of respondents reported a higher demand for their services last year as a direct result of the economic downturn.
You can read the full story in The Washington Post.
The study, as reported on by The Washington Post, showed that nearly half of the organizations surveyed report that their donors plan to maintain or increase contributions in 2012. This is in contrast to only 27 percent last year, and 15 percent in 2009. The CNA study canvassed nonprofits in D.C., Northern Virginia, and Montgomery and Prince George's counties in Maryland.
Another huge problem for D.C.-area organizations in 2011 was the amount of "rainy-day" reserves they had to use up as a result of the declined contributions. This practice appears to be fading in 2012, ad the CNA study found that the number of nonprofits dipping into reserves fell from 46 percent to 31 percent. In addition, organizations reporting a decline in revenue dropped from 48 percent to 40 percent.
Glen O'Glvie, CNA's chief executive, told The Washington Post that the reason for this comeback in giving appears to come from individual donors. He noted that it's much easier for one person to donate than for foundations and corporations. This notion appears to be validated because, as was reported in The NonProfit Times, corporate philanthropy is experiencing a sharp decline, according to a new study from the Council on Foundations.
Although the decline in donations seems to be slowing, CNA warns that it's not enough to quell the increasing demand for nonprofit services. 53 percent of respondents reported a higher demand for their services last year as a direct result of the economic downturn.
You can read the full story in The Washington Post.
Why Do Donors Give?
May 11th
For years, fundraisers have been searching for the answer to a question that is the nonprofit equivalent of the Holy Grail: Why do donors give?
This is one of those questions that truly doesn't have a single right answer. Every donor who you talk to will likely give you a different reason for they decided to give money or other gifts to an organization. That doesn't mean people have given up trying to come up with a concrete answer to the question. Larry C. Johnson, author of "The Eight Principles of Sustainable Fundraising," thinks he has the answer: People give because they want to.
It may not be the profound answer that some in fundraising are looking for, but it does have some weight behind it. There is no denying that you can't force someone to give if they don't want to.
In a study by the Center on Philanthropy at Indiana University,
“Understanding Donors' Motivations,” the five most frequently occurring
motivations for philanthropy were listed. They are:
- To meet critical, basic needs;
- To give back to society by making the community a better place;
- A belief that those with more should help those with less;
- To bring about a desired impact or result; and,
- A request for money was made.
These reasons are sure to spark debate among fundraisers. Let us know what your thoughts are, and whether you have found a different answer to this intriguing question.
National Museum Of Natural History Gets Major Donation
May 7th
David H. Koch, executive vice president of Koch Industries, has made his mark on National Museum of Natural History by donating $35 million to the Washington, D.C.-based museum.
The major gift, which was announced by the Smithsonian Institute last Thursday, will be used to build a new dinosaur hall, according to a report in The Washington Post. It is the largest single donation the museum has ever received, and the fifth largest in Smithsonian history.
Koch, who might be best known for his support of conservative causes, has been a member of the museum's advisory board for the past 15 years. He told The Post that he made the donation because he believes the institution's current dinosaur hall is "obsolete." Many of the specimens included in the current dinosaur exhibit have been there since the museum first opened 100 years ago.
This is certainly not Koch's first experience with philanthropy related to dinosaur exhibits. He donated $20 million to the dinosaur hall in New York City's American Museum of Natural History in 2006. He also gave $100 million to the renovation project for the State Theater of New York at Lincoln Center.
The National Museum of Natural History's current dinosaur exhibit will close in 2014, with the renovated hall scheduled for completion in 2019. The total cost of the work is estimated at $45 million.
You can read more about this story in The Washington Post.
The major gift, which was announced by the Smithsonian Institute last Thursday, will be used to build a new dinosaur hall, according to a report in The Washington Post. It is the largest single donation the museum has ever received, and the fifth largest in Smithsonian history.
Koch, who might be best known for his support of conservative causes, has been a member of the museum's advisory board for the past 15 years. He told The Post that he made the donation because he believes the institution's current dinosaur hall is "obsolete." Many of the specimens included in the current dinosaur exhibit have been there since the museum first opened 100 years ago.
This is certainly not Koch's first experience with philanthropy related to dinosaur exhibits. He donated $20 million to the dinosaur hall in New York City's American Museum of Natural History in 2006. He also gave $100 million to the renovation project for the State Theater of New York at Lincoln Center.
The National Museum of Natural History's current dinosaur exhibit will close in 2014, with the renovated hall scheduled for completion in 2019. The total cost of the work is estimated at $45 million.
You can read more about this story in The Washington Post.
Oregon Nonprofit Could Help School’s Turf
Mar 19th
Two Millard, Neb. high schools are reaching out to boosters and donors to get the aid of a Salem, Ore.-based nonprofit that would help fund the cost of artificial turf for their fields.
The Omaha World-Herald reported today that the nonprofit, the Community Sports Development Council (CSDC), has been involved with a number of development projects for sports facilities and parks. It also uses the same material used in artificial turf in the locality of Millard North and Millard West High Schools, which are both trying to get turf fields.
The agreement with CSDC calls for $350,000, and the schools got a big initial boost when they received $50,000 from the Millard Public Schools Foundation, which is contingent on the two schools raising the rest of the money. All donations would go through an account set up with the nonprofit Mustang Booster Club, which will make them tax deductible. The cost of the project for each school would be more than $1 million, though CSDC has agreed to cover $700,000 of that. The deadline to raise the money is April 13.
Chad Zimmerman, assistant principal and athletic director at Millard North, told The Omaha World-Herald that he is optimistic they will meet their fundraising goal. His school has already received interest from potential donors: A baseball group has pledged a "substantial" amount of money, while a donor with ties to a football program is willing to match all donations.
The help from CSDC was needed because a $140.8 million bond issue was rejected by the city last November. One in four residents who voted against it did so because they were opposed to turf fields, according to The Omaha World-Herald. The bond issue, which was voted down 57 to 43 percent, would have funded school repairs, classroom additions, and technology and security upgrades in addition to the turf field, which accounted for 2 percent of the bond.
You can read the full story in The Omaha World-Herald.
The Omaha World-Herald reported today that the nonprofit, the Community Sports Development Council (CSDC), has been involved with a number of development projects for sports facilities and parks. It also uses the same material used in artificial turf in the locality of Millard North and Millard West High Schools, which are both trying to get turf fields.
The agreement with CSDC calls for $350,000, and the schools got a big initial boost when they received $50,000 from the Millard Public Schools Foundation, which is contingent on the two schools raising the rest of the money. All donations would go through an account set up with the nonprofit Mustang Booster Club, which will make them tax deductible. The cost of the project for each school would be more than $1 million, though CSDC has agreed to cover $700,000 of that. The deadline to raise the money is April 13.
Chad Zimmerman, assistant principal and athletic director at Millard North, told The Omaha World-Herald that he is optimistic they will meet their fundraising goal. His school has already received interest from potential donors: A baseball group has pledged a "substantial" amount of money, while a donor with ties to a football program is willing to match all donations.
The help from CSDC was needed because a $140.8 million bond issue was rejected by the city last November. One in four residents who voted against it did so because they were opposed to turf fields, according to The Omaha World-Herald. The bond issue, which was voted down 57 to 43 percent, would have funded school repairs, classroom additions, and technology and security upgrades in addition to the turf field, which accounted for 2 percent of the bond.
You can read the full story in The Omaha World-Herald.
Questions To Ask Lapsed Donors
Jan 16th
Donors come and donors go. But what do you about them when they go? Do you give up on them or do you try and figure out why they left?
Nonprofits have to deal with lapsed donors everyday, and how they handle them makes all the difference. It's easy enough to hang your head and move on to the next one, but that will be doing your nonprofit a disservice. Instead of giving up, put on your detective hat and find out why they went away. Getting feedback from donors is always a good way to find out what you can improve.
In their book "Wired and Dangerous," Chip R. Bell and John R. Patterson list some questions you can ask your donors to get a better understanding of how your organization can improve:
Nonprofits have to deal with lapsed donors everyday, and how they handle them makes all the difference. It's easy enough to hang your head and move on to the next one, but that will be doing your nonprofit a disservice. Instead of giving up, put on your detective hat and find out why they went away. Getting feedback from donors is always a good way to find out what you can improve.
In their book "Wired and Dangerous," Chip R. Bell and John R. Patterson list some questions you can ask your donors to get a better understanding of how your organization can improve:
- What is one aspect about our organization that you view as "very positive?"
- Complete this sentence: What I like least about what you do is...
- Complete this sentence: What I like most about what you do is...
- What are the first words that come to mind when you think about working with us?
- What area of our organization needs the most improvement?
- Was there ever a time when we left you disappointed? If so, briefly describe the incident and list ways that we could have handled the situation better (if at all).
- What would you like to see us do that no other organization in our industry is doing?
- What have we not asked that we should have?
Holiday Giving A Challenge For Some Nonprofits
Dec 14th
It may be the season of giving, but that doesn't mean nonprofits will be seeing a lot of that this year.
The holidays have traditionally been a major source of revenue for organizations and, in recent years, holiday giving has actually done fairly well. Yet giving suffered during the summer according to the most recent Blackbaud Index of Giving and, The Durango Herald, many La Planta County, Colorado nonprofits are already facing major challenges for the winter holidays.
Many of the nonprofits in this county make a big portion of their budget during this time of the year. Their success during the holidays could determine a years worth of work. And with donors' wallets shrinking because of the economic downturn, nonprofits in the area are competing for dollars. The situation has grown even more dire as the demand for the services of these organizations have increased. For example, the Southwest Chapter of the American Red Cross has seen holiday giving decrease significantly during the last few years. This is despite the fact that house fires erupt more frequently during the holidays due to candles and other lightings.
Despite all of this turmoil, some charities have collaborated. For example, Music in the Mountains raffled off 25-year ski passes to Durango Mountain Resort. So while it looks like this holiday season may be tough for some Colorado nonprofits, they are hopeful they will be able to get through the season intact. Make sure to read the full article on this subject in The Durango Herald.
The holidays have traditionally been a major source of revenue for organizations and, in recent years, holiday giving has actually done fairly well. Yet giving suffered during the summer according to the most recent Blackbaud Index of Giving and, The Durango Herald, many La Planta County, Colorado nonprofits are already facing major challenges for the winter holidays.
Many of the nonprofits in this county make a big portion of their budget during this time of the year. Their success during the holidays could determine a years worth of work. And with donors' wallets shrinking because of the economic downturn, nonprofits in the area are competing for dollars. The situation has grown even more dire as the demand for the services of these organizations have increased. For example, the Southwest Chapter of the American Red Cross has seen holiday giving decrease significantly during the last few years. This is despite the fact that house fires erupt more frequently during the holidays due to candles and other lightings.
Despite all of this turmoil, some charities have collaborated. For example, Music in the Mountains raffled off 25-year ski passes to Durango Mountain Resort. So while it looks like this holiday season may be tough for some Colorado nonprofits, they are hopeful they will be able to get through the season intact. Make sure to read the full article on this subject in The Durango Herald.
Student Philanthropists
Dec 12th
How's this for a homework assignment: Find a way to give away $100,000. If you were a student at University of Pennsylvania, it's not too outlandish of a proposal.
According to a report on NewsWorks.org, UPenn students who took a course covering the economics of the nonprofit sector in Philadelphia were given quite a shock when they were asked to distribute $100,000 given to the class by an anonymous donor. And this was only 10 days before the class even started.
Here's how it worked: The 30 students in the class were split into groups of five, each given $20,000. They students then had to create a mission statement, seek out local organizations that fit with the mission, and vet them as potential recipients. One organization that was considered by some of the students was Play On! Philly, an after-school music program. They were rejected by one of the student groups because they didn't think the organization had sufficient community engagement. On the other hand, one of the other groups gave them the money because they felt the nonprofit proved it had educational influence beyond music.
The decisions the students had to make highlight the challenges that nonprofits face raising money, especially during the Great Recession. NewsWorks notes that Greg Goldman, who has taught nonprofit economics at UPenn for 14 years, said that the recent economic downturn has affected nonprofits like no other recession has before. That doesn't mean it's impossible--especially when it comes to capital campaigns--but people do have to be more careful with money these days. And UPenn students learned that first hand during their philanthropic exercise.
Make sure to read the full article over on NewsWorks and let us know your reactions to it.
According to a report on NewsWorks.org, UPenn students who took a course covering the economics of the nonprofit sector in Philadelphia were given quite a shock when they were asked to distribute $100,000 given to the class by an anonymous donor. And this was only 10 days before the class even started.
Here's how it worked: The 30 students in the class were split into groups of five, each given $20,000. They students then had to create a mission statement, seek out local organizations that fit with the mission, and vet them as potential recipients. One organization that was considered by some of the students was Play On! Philly, an after-school music program. They were rejected by one of the student groups because they didn't think the organization had sufficient community engagement. On the other hand, one of the other groups gave them the money because they felt the nonprofit proved it had educational influence beyond music.
The decisions the students had to make highlight the challenges that nonprofits face raising money, especially during the Great Recession. NewsWorks notes that Greg Goldman, who has taught nonprofit economics at UPenn for 14 years, said that the recent economic downturn has affected nonprofits like no other recession has before. That doesn't mean it's impossible--especially when it comes to capital campaigns--but people do have to be more careful with money these days. And UPenn students learned that first hand during their philanthropic exercise.
Make sure to read the full article over on NewsWorks and let us know your reactions to it.
Donor Acquisition Strategies
Dec 12th
What separated the nonprofits that had their fiscal house in order during the recession from those that didn't? More often than not it was one thing: A solid donor acquisition strategy.
Acquiring new donors is key to keeping a steady stream of revenue coming into your organization. But you can't go donor prospecting on the fly; you need a plan first. During the 2011 National Catholic Development Conference (NCDC), Bryan Terpstra, VP of fundraising, and Robin Riggs, chief creative officer at LW Robbins, discussed some ways nonprofits could update their acquisition programs. The NonProfit Times was there to hear these tips, and they are:
Acquiring new donors is key to keeping a steady stream of revenue coming into your organization. But you can't go donor prospecting on the fly; you need a plan first. During the 2011 National Catholic Development Conference (NCDC), Bryan Terpstra, VP of fundraising, and Robin Riggs, chief creative officer at LW Robbins, discussed some ways nonprofits could update their acquisition programs. The NonProfit Times was there to hear these tips, and they are:
- Brand Positioning: Make sure your mission is described clearly through your direct mail. Donors who are hearing from you for the first time might have no idea what your organization is trying to accomplish. Never assume that someone has done research beforehand.
- Brand Awareness: Once you have defined your mission it's time to make sure it's promoted in as many channels as possible. Remember that potential donors use many different forms of media, so don't be afraid of diversity.
- Identify Your Best Prospects: Make use of lists to see which donors contribute to similar organizations. These will be some of the best prosepcts for your nonprofit.
Acquiring Hispanic Donors
Nov 2nd
Cross-Posted From Our Squidoo Page
Hispanics have accounted for 50 percent of the nation's growth since 2000. In addition, they have increased their population in the US by 37 percent between 2001 and 2009 and, according to the 2010 US Census, they make up 16.3 percent of the population. These numbers make it clear that nonprofits should do all they can to tap into this growing group. What are the best ways to go about acquiring Hispanic donors? The NonProfit Times recently wrote a piece on this topic:
*Spanish/Bi-Lingual Language Generates Lists -- When looking at this information, do not take "Spanish Language" in a title of Datacard as fact. It can be deceiving. In addition, research the list source, rely on usage information and understand the mailing cycle.
*Hispanic Affinity Lists -- These are lists from companies with Hispanic audiences and Hispanic influence, but include Hispanics as a subset or larger group they prospect. Look at the non-Spanish speaking/Hispanic names if a Spanish acquired list exists. Also, cross reference terms or words closely related to Hispanic culture.
*Enhanced DM-Sourced Lists -- When using these lists mail and evaluate multi-buyers generated from these sources differently. Also, be savvy about how the names were identified and ask questions.
Hispanics have accounted for 50 percent of the nation's growth since 2000. In addition, they have increased their population in the US by 37 percent between 2001 and 2009 and, according to the 2010 US Census, they make up 16.3 percent of the population. These numbers make it clear that nonprofits should do all they can to tap into this growing group. What are the best ways to go about acquiring Hispanic donors? The NonProfit Times recently wrote a piece on this topic:
*Spanish/Bi-Lingual Language Generates Lists -- When looking at this information, do not take "Spanish Language" in a title of Datacard as fact. It can be deceiving. In addition, research the list source, rely on usage information and understand the mailing cycle.
*Hispanic Affinity Lists -- These are lists from companies with Hispanic audiences and Hispanic influence, but include Hispanics as a subset or larger group they prospect. Look at the non-Spanish speaking/Hispanic names if a Spanish acquired list exists. Also, cross reference terms or words closely related to Hispanic culture.
*Enhanced DM-Sourced Lists -- When using these lists mail and evaluate multi-buyers generated from these sources differently. Also, be savvy about how the names were identified and ask questions.
Planning A Thank You Campaign
Oct 21st
Cross-posted from our Squidoo page.
One of the most basic rules of etiquette is to say "thank you" when someone does something nice for you. The same rules apply for fundraising. Donors are more likely to give to your organization again if they sense that their contributions were noticed and appreciated. There are many ways to conduct a successful thank you campaign, including:
-Sending personalized e-mails or letters to donors after the gift is received. It's very important to avoid sending automatic responses to gifts. Donors will not appreciate this.
-Setting up a phone-a-thon. These can take a lot of work, but the effort is usually worth it. Some people consider phone calls more personal, so these can be very effective.
-Send shout-outs on social media sites like Twitter or Facebook. Going online can combine the best of public praise and a personal contact.
-Create interactive thank you pages. These provide a more exciting and unique option than a traditional thank you note. Creativity is always appreciated!
-QR codes. These black-and-while graphics that look like bar codes can link people to a website using a smartphone.
One of the most basic rules of etiquette is to say "thank you" when someone does something nice for you. The same rules apply for fundraising. Donors are more likely to give to your organization again if they sense that their contributions were noticed and appreciated. There are many ways to conduct a successful thank you campaign, including:
-Sending personalized e-mails or letters to donors after the gift is received. It's very important to avoid sending automatic responses to gifts. Donors will not appreciate this.
-Setting up a phone-a-thon. These can take a lot of work, but the effort is usually worth it. Some people consider phone calls more personal, so these can be very effective.
-Send shout-outs on social media sites like Twitter or Facebook. Going online can combine the best of public praise and a personal contact.
-Create interactive thank you pages. These provide a more exciting and unique option than a traditional thank you note. Creativity is always appreciated!
-QR codes. These black-and-while graphics that look like bar codes can link people to a website using a smartphone.
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