Let Appeals Do the Asking & Newsletters Do The Informing

by Laura Huth, President & CEO, do good Consulting

I once worked with a group that was in great turmoil over their newsletter’s role in fundraising.

The board was convinced that this was the way their group should use to ask supporters for money. “It’s a ‘nicer’ way of asking for money,” said one member at a meeting. Their director knew better and requested funds in the budget to plan for two annual appeals each year. The funds were denied.

When I interviewed board members to find a solution to this impasse, I discovered two general opinions. One was, “The newsletter does a much better job at telling the group’s stories and appealing to emotions. Donors will feel inspired to give”. The other was the general thought that sending appeal letters was repetitive and rather direct.

Both of these opinions are right, technically. But what board members didn’t see was the overall role that their organization’s newsletter played in raising funds and inspiring donors.

Newsletters are a means to an end, not the end itself. They are a cultivation tool, not a fundraising tool. Although many newsletters come with giving envelopes saddled-stitched in, your newsletter should never replace mailed (or in-person) appeals at your organization.

When produced with care and sent regularly, newsletters help cultivate donors by telling them your organization’s stories, sharing inspiring photos, and demonstrating success and action. They are a tool to be used to “warm up” donors: to cultivate a sense of interest, belonging, and hope. But they should never be relied upon to fuel an organization’s fundraising program. Why?

First, when timed right, the one-two punch of a newsletter, then mailed appeal, appearing in supporters’ mailboxes can have a powerful impact on your organization’s bottom line. Such timing builds donor confidence and helps them remember the goings-on while staying focused on donations.

Second, your newsletter should focus mainly on storytelling, using real people as much as possible, copious photos, and strong layout. While some may feel inspired to give as a result of reading the newsletter, you rarely have the opportunity to grab their attention in a way to directly ask for money like an appeal letter will. It is perfectly fine to appeal for funds in your newsletter (I always advocate including an envelope), but never rely on newsletters for your organization’s bread and butter.

In short, your organization’s newsletter should be an overall part of your group’s fundraising and communication plans – research shows that donors like getting newsletters. Plus, the general rule is to mail to your list eight to 12 times each year, so mixing up newsletters and appeals works perfectly to attain this mix. Each newsletter should work in conjunction with your mailed appeals and major funds efforts. The timing of each newsletter should compliment your concurrent fundraising efforts, but never replace them.

In Parts 1-3 of this series, we talked about how to develop strong layout, content, and stories for your newsletters. A well-designed newsletter, filled with compelling content and motivating stories and photos is one of the most powerful cultivation tools you can put in a donor’s mailbox (or as a ‘leave behind’, like at a doctor’s office). In producing each one, always think about your last appeal and recent projects and the upcoming appeal and future projects. By subtly linking your newsletters’ timing, stories, and purposes with your fundraising, you will create a powerful giving program for your organization.

So, let your appeal letters do the asking and your newsletters do the informing.

Q&A: Does do good fundraise on commission?

Dear do good:
We are looking to do a fundraising campaign later this year. We know your consultants have a lot of fundraising experience, plus you know a lot of people in our service area. Can we hire do good Consulting to fundraise for us on commission?
- Eager to Get Started, Champaign

Dear Eager:
On its face, it certainly does look like a plausible idea. Our consultants are highly skilled and well-networked. However, there is more to it.

do good’s consultants, as with most other professional trainers or consultants, view fundraising not just as the pursuit of cash to serve immediate organizational needs, but a part of a critically important relationship-building (and therefore sustainability-building) process for organizations. For this reason, it is essential that members of the organization – those truly invested in its work and mission – be the ones developing the fundraising skills, forming those critically important relationships, and asking for financial support.

By having do good Consulting do the actual ask for money – on commission or not – you lose several critically important things:

• The passion and genuineness in your ask. The people best poised to present passion and sincerity in a request for financial support are your clients, board members, volunteers, and staff. While do good consultants are skilled at raising money, what we bring to your organization is the know-how in developing fundraising plans in partnership with you and your team members. Our passion for your work could never surpass yours. You are the ones best positioned to be asking for such support.
• The know-how to raise money once our contract with your organization is over. For our fundraising work to be sustainable and have a lasting impact on your efforts, your organization needs to learn how to do this once our work with you is over. If not, you will be returning to us each time you need money to help you again. This is certainly not sustainable! What we bring to you is help in understanding who gives and getting comfortable with why they give. We will work with you to plan efforts (timing, angles, etc.) and can work with you to craft language and materials. We will also help you analyze your contacts database for opportunities and trends to improve your efforts overall.
• The relationships that must be formed to develop a sustainable fundraising program for your organization. Having do good asking for money for your organization encourages donors to form relationships with us, not your organization and its work and clients. This jeopardizes the relationship forming essential to your group’s continued fundraising and sustainability. You want your donors as your contacts, not ours, and to do that you must be the ones asking for the money and forming relationships.

So, as much as do good consultants love to fundraise for their favorite causes, forming donor relationships must be something your group does, not us. We can – and will – help you form achievable plans to raise the money you need to run and grow your programs and will help to train and guide you throughout the fundraising process. From time-to-time we might even come along with you on a major donor visit as a training tool, but in the end you (and your clients) will thank us when your donors have made strong – and lasting – connections with you and your group.

Pension Protection Act: Implications for Donors & Organizations

by Laura Huth, President & CEO, do good Consulting

On August 17, the Pension Protection Act of 2006 was signed into law. This new piece of legislation comes with important changes regarding tax deductions that both donors and the non-profits they support need to know about.

This is a departure from previous record keeping requirements: for example, cash donations of less than $250 previously just needed some sort of reliable written record (including the donors own notes) of the event.

To make sure that you meet the requirements of the new law, here are some tips:

• Get a verification or thank you letter from the charity for all gifts. The letter should show the name of the organization and the date and amount of contribution. Save these letters (receipts) for tax purposes.
• It is also a good idea to maintain canceled checks, bank records, and credit card receipts just in case.
• If you donate through payroll deduction, you must have two forms of documentation to prove the tax deduction at the end of the year: 1) a pay stub, W-2 Form, or other document furnished by your employer indicating the amount withheld during the tax year for payment to the charitable campaign, and 2) a copy of your pledge card, or other confirmation letter prepared by the charitable giving campaign.

For organizations:

• If you already do a great job with donor recognition, little will change for you.
• Be sure to send verification (thank you) letters to all donors for each gift in a timely fashion (do good recommends under 72 hours), noting the date and amount of the gift. This allows you to thank donors at the same time you fulfill donors' substantiation requirements to obtain a tax deduction for the contribution.
• Don't wait until year's end to recognize gifts made during the year. While this can be done as a "year in review", all gifts to your organization, regardless of amount, should be recognized immediately for donor stewardship purposes. Groups not acknowledging all gifts from donors (or doing so in a tardy fashion), jeopardize future donor gifts as a result.

 Donors and organizations:

• Rules for donations of materials such as clothes, household goods, and other items also changed and will now only be accepted if in "good" or "workable" condition.

Group Profile: Champaign Urbana Theatre Company

by Jennifer Knapp, do good Consulting

“By day we are secretaries and veterinarians, and in the evening we come together to put on amazing shows.” From the lips of Wendy Harris, board member, this is what the Champaign Urbana Theatre Company (CUTC) is all about. “We provide opportunities for anyone to get involved in performing – front stage or back. Experience and age don’t matter. There is plenty to do, and we have room for everybody.”

As I learned more about the Theatre Company, Wendy’s comments proved true. The organization offers a wide range of performance options. Each year, they put on four “big-stage” productions (think Jesus Christ Superstar, Bye Bye Birdie, and Joseph and the Amazing Technicolor Dreamcoat, all of which are slated for 2008). Shows are acted, produced, and put together largely by volunteers in the community. As Wendy explained, “Everyone is involved because they want to be. People are willing to teach each other, and many learn that they can really do this. It is truly a give and take atmosphere.”

And the Champaign Urbana Theatre Company does not stop with these shows. They also offer interactive “Seven Corpse Dinner Murder Mysteries” where the audience takes part in determining “who-dun-it.” This February 10, 17, 24, and March 2 company volunteers will offer Dying to Win, an election-based murder mystery plot written by a Theatre Company board member and her son.

The Champaign Urbana Theatre Company also offers Singing Valentines on February 14 (more information to the right) for people who want to show loved ones how they really feel. They also have acting classes for all ages and experience levels.

The Champaign Urbana Theatre Company truly embodies the spirit of community participation, and they would love to have you become a part by attending or participating in shows and events. To learn more about how to get involved or to see the Company’s 2008 show line up, go to www.cutc.org.