By Mike Bacon, CFRE
Isn’t it ironic that we all tend to learn more from our mistakes than from our successes? Last month we took a look at five common fundraising mistakes and today we’ll examine five more that plague our profession. We all can benefit from reviewing these common mistakes are and thinking ahead about how we can avoid making them in our own offices.
1. Not asking for a specific amount of money – Prospects really do need a frame of reference when they are considering a gift. Whether you are contacting them by mail, phone or in person, asking for a specific amount gives the other person the chance to consider and respond. If I ask you to support our cause without a requested amount, you are considering the choice of yes or no. If I ask you to support us with a gift of $250, you are now determining whether that amount is right or not. I’ve moved you one step closer to making a gift because I suggested an amount.
2. Not thanking for past support before asking again – If you’ve ever made a gift to a nonprofit and then discover in the thank you letter/receipt a return envelope encouraging another gift, how does that make you feel? Does it feel like you haven’t been properly thanked? There’s a saying in the fundraising profession: The best cultivation for the next gift is how we treat you after your last gift. Did we send you a receipt in a timely manner (48 hours)? Have we told you what we will do with your gift? Is there a sincere gesture of appreciation on the part of the nonprofit?
3. Not using phone calls & personal visits to thank donors – In her book Donor Centered Fundraising, Penelope Burk shared the horrifying statistics that 94% of donors say that the charities they support hardly ever call them up without asking for another gift. Even worse, 98% of charities never or hardly ever pay their donors a visit without asking them for money. We are treating our donors like ATM machines and only visiting them when we want the next gift! Narrow down your list of top donors to your nonprofit. Ask your Board members to join you on thank you visits that do not involve asking for another gift. Or bring a list of recent donors to a board meeting and ask everyone to spend ten minutes making thank you calls. Trust me, your donors will be surprised and impressed.
4. Not realizing that special events are the most difficult way to raise money – This is a difficult reality to grasp. Every nonprofit does special events and many suffer from special events overload. Special event fundraising is the least efficient way to raise money. You can take a committee of 10 people, working for 10 months and raise $25,000 before expenses. Or you can take two donors out to lunch and raise $25,000. There are great reasons to do events, including engaging volunteers, showcasing your mission, and introducing people to your important work. If you’re doing events because you need to raise money, consider investing that same amount of time and energy into deepening relationships with your prospects and asking for specific gifts.
5. Not adhering to a code of ethics when you raise money – The field of fundraising is a noble and inspiring profession. But like any line of work, there are people who will take advantage of individuals and situations. That is why the Association of Fundraising Professionals (www.afpnet.org ) has carefully crafted a Donor Bill of Rights that helps fundraisers stay clear of ethical dilemmas. Many of us have been in challenging situations where the right choice is not always clear. Asking advice from experienced colleagues is a great way to learn. You must own your personal integrity throughout your career.