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Atlas of Giving

Raising More Money Will Make You Better Looking

 

Well, maybe not.  But, you will feel like you are better looking.

As a fund raising practitioner or nonprofit manager, you are always trying to find new ways to raise more money and spend less money doing it.  There is a powerful free tool that gives you the benchmarks and forecasts you need to identify and expand productive promotions (like online giving) more quickly and reallocate dollars from declining promotions (like a special event past its prime). These improvements will favorably impact your cost per dollar raised.  This will make your organization (and you) more attractive to donors, prospective donors, and watchdog organizations like Guidestar and the BBB Wise Giving Alliance…

The Atlas of Giving reports that US giving is up 7.7% in 2011 through October. This benchmark gives you a good idea about how your results compare to 2011 aggregate results for the US.  The Atlas forecast shows that unfortunately, giving will be flat for the 12 months ahead – with some months being dramatically lower than the previous year.  April, 2012 is forecast to be down 5.5% from April, 2011.  But, September, 2012 is currently projected to be 5.9% better than September, 2011.  Pay attention to the monthly forecast, so that you can schedule mailings, events and other activities for times when they will have an optimal chance for producing successful returns.

Use Atlas of Giving forecast and benchmarking information to improve your credibility with your CEO, the CFO, the Board of Directors, and your staff. Use Atlas data to schedule promotions and adjust budgeting and staffing to prepare for upcoming conditions so that you can raise more money at less cost. Also use the information to sound the alarm to warn against making significant expenditures based on unfavorable giving forecasts – like the first 7 months of 2012.  

The current Atlas Insight and Analysis section points out that political fundraising is affecting charitable giving. Individuals and companies are redirecting contributions that would normally go to charity to political campaigns instead.  This phenomenon will increase as the campaign season heats up. Keep this in mind as you make plans for 2012.  You can subscribe at no cost to The Atlas of Giving Standard Edition at www.philanthromax.com.

If this sounds good, it can be even better… much more giving information is available.  Charitable giving benchmarks and forecasts for 8 sectors (Arts, Education, Health, etc), 4 sources (Individual, Corporation, Foundation, and Bequest), and for all 50 states is available every month with the Atlas of Giving Professional Edition (Atlas Pro).  Check it out atwww.atlasofgiving.com.

Keep your finger on the pulse of American philanthropy.

It's August; do you know where your donors are?

 

For more than 20 years I had my auto and homeowners insurance with the same agent – Greg.  I don’t remember how I started with Greg except that we went to school together and at one time attended the same church. 

In all those years, I never shopped.  I was loyal… and probably lazy.  It just seemed easier to renew.  

Two years ago, while doing the household budget I realized that I was insuring a nice house, 5 cars, and 5 drivers including 3 teenagers.  The annual total for this coverage was close to the Gross Domestic Product of Belize I think. 

Then it hit me – in more than 20 years, the only times I ever heard from Greg was when he wanted to ‘up sell’ me on something.  He never took me to lunch, sent tickets for an event or show, sent a handwritten thank you note, or just called to catch up.  Greg did not care about me.  My loyalty was ridiculously misplaced.  For years I had been paying more than I should and giving my business to someone who really didn’t appreciate it. 

Of course I shopped and got a much better deal and called Greg’s office to cancel.  I was stunned when he didn’t call me back to try to talk me out of it or find out why – proof positive that I made the right decision.  

It is 5 to 12 times less expensive to retain a donor you have than to acquire a new one. 

Many people in fundraising have never even considered measuring their donor retention rate.  Oh sure they may know about retention in the direct mail file but they are clueless about event donors, major gifts donors, and online contributors. 

How much of your annual budget is devoted to donor retention and renewal activities as opposed to acquisition activity?  What does your donor appreciation program look like?  How many of your loyal donors do you and your staff really know?  What is the lifetime value of your median donor?   What strategy have you developed to keep and upgrade the donors you’ve acquired?  Do you care? 

Do yourself a favor… Don’t be Greg.

Fire the do-gooders and shut down the pretenders

 

People who work for and volunteer for nonprofits are nice people… many of them should be fired.

I spent 28 years of my life working alongside these well-meaning folks in a variety of charitable organizations as both an employee and a board member.  But, I have a bone to pick.  Solid business practice and accountability is almost universally resisted in charities and churches.  It’s a lot like government in that way.  These people and organizations would rather defend themselves than really solving anything.

Hard work and zealous devotion to the mission do not excuse anyone or any organization or church from effectiveness or efficiency.  Results matter

Oh sure, I’ve heard the arguments that charities are not businesses and deserve to be dealt with differently.  And, I agree – on a few points, but not many.

Every charity and church owes it to its supporters and the taxpayers prove that it produces measurable results that benefit our society.  Similarly, every nonprofit employee should be expected to be held accountable for the job that they are paid to accomplish and every board member should demand that this occurs.  Can your charity or church prove a significant return on its investment?  Can you justify your salary and benefits based on your measurable impact on the mission?

I am in favor of a donor and taxpayer revolution.  Somebody, please start an effective movement that demands that charities, churches, and the people that work for them and volunteer for them produce real, measurable results. I’ve devised a suggested plan to start this process… it’s not perfect but it’s a start - see what you think http://www.philanthromax.com/blogs/rob-mitchell?page=3

We can learn a lot from business and we should.   Measurement and accountability is good and appropriate – embrace it and you and your organization will thrive.  Yes, ineffective programs and people will be eliminated… they should...sorry.  Nice people should sometimes be fired and replaced with people who are committed to accomplishment not tradition and hard work.  And, ineffective old organizations should fail.  Results matter!