How can a nonprofit make its second appeal work better than its first?

By Gloria Pugliese

We're two months into 2015 and hopefully you've been happily going about your business, taking it as it comes. It may seem a long way off now, but you know eventually you'll glance at the calendar and have the sudden realization that the end of the year is approaching, and it will soon be that time again.

And no, we're not talking about writing the family holiday card. We're talking about the annual donor appeal for your nonprofit, and unlike your relatives, nobody is obligated to give you a penny. So how can you make this year's appeal better than the last?

The key is to start now. If you wait until sometime in autumn to ask this question, you'll already be too late to answer it effectively. That's because planning an effective donor appeal is a year-round process, based primarily on responding to and analyzing the results of last year's efforts.

Donor appeals are about building momentum, and the only way to keep that momentum going is to keep your donors in the loop. Following an appeal, take the time to creatively thank those who supported your organization. Anything personalized is the gold standard, and it doesn’t need to cost money. We've seen very effective thank you letters that included handwritten notes from students who benefited from donations. A simple phone call works wonders, too.

Don't make the follow-up a one-way form of communication, though. Heed the saying, "If you ask people for money, they'll give you advice. If you ask for advice, they'll give you money." Donors — particularly major ones — love to give their feedback on the appeal and messaging, and by engaging them you'll receive important input on what hit home with prospects.

If your nonprofit has already been doing a great job thanking and garnering feedback from donors, you can start digging into the data from last year's appeal to look for ways to make this year's better. There are countless ways to analyze your results, such as determining what messages, media, demographics and delivery times work best. We've even seen studies showing that appeals featuring dogs instead of cats garnered more donations for an animal rescue nonprofit.

The key here is finding balance. You don't want to exert more time and energy than needed to analyze your appeal. It's easy to become hyper-focused on one approach, and lose donors to whom your new communications don't appeal. You also need to be careful not to make too many changes at once. That will make it difficult to determine what change made the difference in your results.

If your nonprofit doesn't have an expert in this field, consider bringing on a consultant such as Dunleavy & Associates before shelling out money for a robust CRM solution or placing the burden on your staff. You'll get qualified insights into what will work best for your organization, and the expertise to execute analysis if needed.

About the author: Gloria Pugliese is Director, Advancement and Capital Campaigns at Dunleavy & Associates. A Certified Fund Raising Executive with more than 15 years of experience in the nonprofit industry, Gloria formerly served as Director of Corporate and Foundation Relations for La Salle University and Gwynedd-Mercy College, in addition to Director of Advancement for the Delaware County SPCA. She shares her expertise with clients seeking to improve their communications, capital campaigns and development.

How much administrative support does a nonprofit board need?

By Kate Goffredo Dougherty

Time can be an easy thing to under-budget. A 20-minute drive into the city? Try 45. Half an hour at the grocery store? More like an hour and a half. A few minutes after dinner for a stroll around the block? Forget about it.

But time is the key factor when deciding how much administrative support a nonprofit needs to give to its board of directors. Over or underestimation of time commitments on either side can result in leadership breakdowns with ramifications throughout the organization. So how can this be avoided?

Follow this golden rule: Boards do not have a lot of time. Never lose sight of the fact that board members are almost always volunteers, with jobs and other commitments that will take priority over your organization. Even the most enthusiastic board member will at some point find themselves running short on time when life's other responsibilities come calling.

For this reason, you must treat your board's time with respect. Expect little of it, and make the most of what you do receive by giving extra emphasis to organization. When board meetings roll around, be prepared.

Don't use word-of-mouth to determine who should be attending or what will be on the agenda. Instead, send out an email a week in advance with all of the necessary materials and a list of who will be speaking. If neither your board nor your administration has its ducks in a row prior to a meeting, you'll end up wasting time or, even worse, arriving at crucial decisions based on faulty information.

Administrative support shouldn't conclude with the meeting, either. Although it can be a cumbersome task, have someone take thorough minutes and commit to spending a few hours after the meeting to cleaning them up and sending them out. You have your board's attention and the meeting is fresh on their minds, so follow up immediately. They can't be expected to jump back into the fray a week or two down the line.

Occasionally, board members can actually be the ones who underestimate how much of their own time is needed. We see this often with organizations that lose an executive and decide to temporarily shift responsibilities to the board. Board members optimistically believe they can divvy up the time, but they often fail to realize the extent of responsibilities: tax filing, banking deposits, invoicing, event organization, and even day-to-day communication with employees and stakeholders.

These responsibilities should rarely, if ever, be given to board members, because these situations can quickly degrade into disorganization and lost revenue. For that reason we always advise nonprofits to enlist administrative support services provided by a company like Dunleavy & Associates when faced with an absence, even if only for a short period of time.

About the author: Kate Goffredo Dougherty is Senior Project Manager, Operations at Dunleavy & Associates. With a background in nonprofit administration, Kate oversees the lion's share of Dunleavy's operations, and shares her expertise with clients seeking to improve their operational and organizational management. She also specializes in event planning.

How can our nonprofit cultivate donors who can make major gifts?

By Debi Hoxter

If only there were an easy answer to the question of how nonprofits can win big donations. Campaign managers would certainly be able to relax a little.

But while there is no easy way to solicit major donations, the answer is actually quite simple: Relationships. Cultivating big donors is all about developing relationships, and while that takes significant time and energy, it pays off in the long run.

The question then becomes, what is the best way to build relationships? Start by reaching out to your board of directors, and ask for their support and guidance. They're often well connected and may know people in their network who would be a good match for your cause. Ask your board member to make an introduction, preferably in person, but at least by having their connection take your phone call.

If there is a dearth of leads from the board, start looking at your own network and conducting research. Find out who your competitors' major donors are and see if you have any common connections. Perhaps you have an old colleague who now works at the same company as a donor, or maybe you share a mutual connection with a prospect on LinkedIn.

Once you've identified a target prospect and have made a connection, you can begin the four-step courtship process: Qualify, cultivate, solicit and steward.

• Qualify: Get to know the prospect and see if your organization is of key interest. Determine if he or she has the proper financial capacity by inquiring about and researching other philanthropic activity.
• Cultivate: Make the prospect feel a part of the organization. Invite him or her to meet your organization's leadership, visit its facilities and attend its events. Demonstrate why your organization is different from others.
• Solicit: The actual ask should not come as a major surprise. Like a marriage engagement, both parties should be expecting and comfortable when the question is popped.
• Steward: After a donation is made, don't disappear until the next appeal time. Thank the donor repeatedly, and continue the relationship by inviting your donor to activities that are of interest, from volunteer efforts to cocktail parties. Even better if they can bring a friend to an event who might also be willing to donate.

The key through this process is to take your time. The clock should not be ticking for you to land a major donation; rather, expect that it will take time to court the prospect and ask when the time is right. Although cultivating major donors is time-consuming, it will ultimately pay off and build as your network grows and strengthens.

About the author: Debi Hoxter is Director, Corporate & Foundation Relations at Dunleavy & Associates. Pulling from her prior experience as Executive Director, Corporate Underwriting at WHYY, Debi works with clients to build donor and corporate relationships and create strategies for meeting revenue goals. She began her career in advertising, working first at Ted Bates and Grey advertising agencies in New York before serving as Advertising Sales Manager at Philadelphia Magazine.

Does a change in nonprofit leadership require a new strategic plan?

By Carolyn Rammel

There are few things in the nonprofit sector that induce as much anxiety as a change in leadership. Whether it's an executive director or an influential board member leaving an organization, that individual holds influence that will leave a vacuum after departure.

While the shift may and often should prompt some soul-searching within your organization, there's no reason a leadership change in and of itself must change your strategic plan.

By design, a good strategic plan will be created through contributions from more than one individual. If created correctly, a plan collaboratively combines the ideas, perspectives and recommendations from various stakeholders. From volunteers to board members, staff members to external constituents, all voices carry the same weight. It is a leader's responsibility to execute the strategic plan, not to dictate the plan.

However, a change in leadership does present a great opportunity to revisit the strategic plan and ensure it is still functional and in line with the mission and organizational goals. Of particular importance is determining that the plan's design was not the reason for the prior director's departure, and that new leadership can still reasonably execute it.

Even if you determine the plan was created with input from stakeholders at all levels and is still executable, it may be time to revise. Strategic plans should be updated every three to five years, regardless of changes in leadership.

If your strategic plan passes review and does not require updating, it can actually be the best tool for weathering the stresses of change. As the plan is intended to be the guiding document of your organization, the individuals leading that strategic direction will be secondary to the plan itself. Even more, a completed strategic plan will offer clarity of direction for any incoming leadership.

About the author: Carolyn Rammel is a seasoned executive and consultant, with 25 years of experience in the financial services, travel management, not-for-profit and consulting services industries. She has executed numerous business, marketing and international joint venture initiatives in the corporate marketplace, and more recently served as the executive director of a Philadelphia nonprofit organization. As a consultant, she specializes in the areas of strategic planning, facilitation and leadership alignment.

How should a nonprofit talk to potential donors about overhead costs?

By Megan Lepore

In a world where everything is scrutinized, administrative costs (also referred to as “overhead”) have almost become dirty words in nonprofit fundraising. Everyone's heard some version of the following, usually from an uninformed friend or family member: "Can you believe [insert organization here] keeps a third of every dollar? They won't get a dime from me!"

With the budgets of even large, nationally respected organizations being targeted for criticism in recent years, the dilemma for small and mid-sized nonprofits is great. How much financial information should you openly offer to donors and prospects, and how can you best convey it? Is it best not to mention overhead costs at all, or perhaps speak in generalities?

At Dunleavy & Associates, we believe strongly in the importance of honesty and transparency. Leaving donors or prospects in the dark about where their money is going will eventually have negative repercussions, and you can bet they'll never donate again once their trust is broken.

What donors are really concerned about is not just confirmation of where their dollar is going, but whether or not it's being wasted. Donors by nature are considerate people, capable of understanding that yes, your staff must earn a salary in order to carry out your nonprofit's mission. And they (should) recognize that there are real costs involved to doing your work.

So, what is the solution? Use your organization's communication channels to talk about those costs. It’s okay to talk with prospects about the expenses associated with using current technologies to provide integral services to your constituents, the need to sometimes outsource services (such as graphic design), and the everyday cost of running a successful nonprofit organization.

At the same time, it’s not unreasonable for them to want to know how well you steward their dollars. Be prepared to share what percentage of donations goes to overhead costs. You can share how your organization has worked with vendors to make more cost-efficient decisions (bulk printing, shared resources, in-kind services, etc.) and how the staff and board have resolved to more closely monitor expenses to increase revenue in the new year. This type of information will help to build trust that your organization is careful with every dollar.

And don't be afraid to spice up your communications. Many organizations report their financials only at the end of the year, often in a large, dense report. Let your donors know how their contributions are making an impact in the community – in both big and small ways.

Send out brief recaps that utilize statistical infographics or photos of your clients and staff. Tell them how the campaign they donated to fed 300 families for a month, or helped 30 pups find forever homes. Highlight your top corporate or individual donors to reward them for their support.

And don’t just wait till the end of the year. Break with tradition and send a brief mid-year synopsis detailing the accomplishments of the first six months, as well as your capital and campaign goals for the next six. Not only will your donors feel more involved in the process, you'll keep up with your financials and avoid the end-of-year pileup.

Always remember, in a time when donors, prospects and journalists have access to your 990s at the click of a mouse, any effort to cloud your financials is a disaster waiting to happen. Instead, get ahead of the conversation and build trust with transparency through smarter, more engaging communications.

About the author: Megan Lepore is a Senior Project Manager at Dunleavy & Associates and has more than 10 years of development experience in the fields of healthcare, education and human services. She holds a Master of Science in Communication Management from Temple University, where she has also taught undergraduate courses in speech communication, public relations and news writing. Annual appeals, corporate sponsorship, grant writing, foundation relations and event planning round out her professional expertise.