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Giving Great Gratitude: Tips for Donor Appreciation

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Did you know that nonprofits receive nearly 31% of annual gifts during the month of December each year? In fact, 12% of all giving occurs in the last three days of the calendar year. And, were you aware that donors are more likely to give to your nonprofit again after they have received an average of three “thank you” responses?”

With all that is happening during this busy season, it is easy to choose to wait a few weeks to thank a donor for a gift. Doing so, however, could be costly. In many ways, how you respond to the donation you receive tomorrow will determine if you receive another donation this time next year.

Fortunately, giving thanks can be fun and creative; it doesn’t have to feel like a chore. To help inspire you to give great gratitude, we have compiled a few helpful tips:

The Balance, a financial management resource website, outlines the fundamentals of donor stewardship including quick, personalized thank you responses. One great idea explains how to use a postscript to catch your donor’s eye and better convey your key message. Read all the details here.

The fundraising platform Classy suggests designing a “welcome package” for first time donors and broadcasting short testimonial videos to offer meaningful thanks to multiple donors. Read Classy’s “Top 15 Creative Ways to Thank Donors” for more details on these ideas and other quick and easy ways to thank donors through websites and cultivation events.

In addition, last week’s issue of the Chronicle of Philanthropy’s article, “Do’s and Don’ts When Writing Donor Thank-You Letters by Timothy Sandoval includes the following suggestions:

1. Don’t send the same thank you letter to every donor. Donors will begin to catch on, ignore your letters, and the thanks you wish to express will begin to feel less sincere.
2. Keep your donor thank you letters short – no more than one paragraph, if possible.
3. Switch up your opening line. Most donor thank you letters start with “Thank you for your generous support…” Make your thank you letter stand out from other nonprofits by using an atypical opening statement that grabs your donor’s attention.
4. Embrace “snail mail.” As we become more and more overwhelmed with electronic communication, actual letters become rare – and appreciated.
5. Make sure someone prominent at your organization personally signs each letter.

We wish for your nonprofit lots and lots of opportunities to say “thank you” in the next few weeks. We hope these resources will offer you new strategies to do so more easily, meaningfully, and memorably!

Easier Solutions for Board Fundraising

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Lately, there have been a stream of nonprofit leaders – both board and staff – contacting Spokes and asking for help to engage their board members in their organization’s fundraising efforts. Conversations around the issue are stilted and awkward. Board meetings end with directors nodding in agreement to help raise funds, then leaving the room and continuing to be inactive. Resentments build. Fiscal goals are not met.

Sound familiar? Maybe painfully familiar?

The good news – and bad news – is that you are not alone. For many nonprofit leaders, nothing about fundraising seems easy. It’s a reasonable sentiment. After all, most important work is never easy. However, there are ways to make the work easier and more of a cultural norm.

Start by formally acknowledging that most folks find it hard to ask friends and family to make donations to the organizations they serve – not because they don’t believe passionately in the mission – but because they are uncomfortable requesting a favor. There is an underlying fear that a time will come when they need their friends and family to help them with a more critical issue, and they don’t want to feel that they’ve already asked too much on behalf of their favorite charity.

It’s time to stop asking board members to solicit their friends and colleagues and take a tremendous first step to shift their resistance to fundraising. Instead, ask them to focus on what they can do within their comfort level to contribute to your nonprofit’s fundraising efforts:
“Not comfortable asking for a gift?
o Can you invite potential donors to our next event?
o Can you use your Facebook page to share our client success stories with your friends and neighbors and advocate for our mission?
o Can you wear your board member nametag at your work-related events?
o Can you help us thank our current donors in a way that is personal and meaningful?”

It’s important to clarify to your board members how the friends, associates, and colleagues they introduce to the organization will be treated. Assure and demonstrate that all prospective donors are treated respectfully, with the intention of developing a long-term relationship. Define how donors are cultivated, asked, thanked, recognized, and protected.

Finally, remind board members that the organization will be more successful with fundraising goals if donors are asked to join the board in their giving. It’s far more difficult to encourage a new donor to make a gift if current board members are not willing to do the same. Ask your board members to conduct a modest board giving campaign with 100% participation. Then ask staff, other board members, and volunteer leaders who are comfortable with asking for donations to take the lead.

Read these two helpful articles for more information and inspiration on how to make fundraising easier and more successful for everyone in your organization.

The 5 Step Strategy for Getting Your Board Members Engaged in Fundraising by Joe Garecht

How to Run a Successful Board Giving Campaign by Joe Garecht

NOTE: Spokes member organizations have access to templates for board of director commitment forms and other policies to facilitate board giving campaigns.
Special thanks to Connie O’Henly, Executive Director of the Clark Center Association, for sharing these articles with Spokes!

Cannabis-related Contributions: Should you accept them?

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The growing and selling of marijuana is almost officially legal in San Luis Obispo County. In fact, the San Luis Obispo County Board of Supervisors is currently scheduled to adopt a permanent ordinance for cannabis land use regulations on October 3, 2017. In the next few months, marijuana promises to become very big business in our local economy – a potential challenge or an opportunity for many local nonprofits.

As the legal cannabis industry grows, is your nonprofit ready to accept or deny charitable contributions from cannabis-related businesses? If not, it may be time to have a board discussion on the topic. It may take several years before the legal regulations governing cannabis-related contributions – if there will be any – are fully defined. In the meantime, it would be wise to have a formal policy to guide your organization.

Here are a few points to consider: 

If the funds being donated were obtained from legal means, you may accept them. Never knowingly accept donations that come from revenues related to the sale of heroin or other illegal drugs or activities. Be sure to define a process for vetting donors before accepting gifts. The California Secretary of State’s website can be helpful in verifying legitimate businesses and personal references can be a resource for vetting individual donors you may not know.

And, speaking of legal parameters, there is some current confusion on this topic for nonprofits that receive federal funds. Most federal grant contracts stipulate that the recipient organization must not violate any federal laws and doing so will cause a forfeiture of the federal funds. However, while selling and using marijuana for recreational purposes currently remains a federal crime, there is no federal or state law prohibiting nonprofits from accepting gifts from cannabis businesses. As long as your nonprofit is not growing, selling, or distributing recreational marijuana, you will be in compliance with federal laws. (As always, be sure to carefully review and abide by all federal contract provisions as they may evolve and change.)

Because marijuana is being legalized in California, the debate to accept contributions from the cannabis industry is less a legal one and more an ethical one. It’s up to your board of directors to determine what are the ethical standards or expectations to which your organization will adhere. As an example, consider a tobacco business wants to make a donation to a cancer-related nonprofit. There are two schools of thought the nonprofit could employ:

  • The tobacco business is causing the problems we are trying to solve. Why shouldn’t it be held accountable and contribute to the solutions we are creating?
  • The tobacco business is causing the problems we are trying to solve. It is an enemy to our mission and we cannot be associated with it in any way without losing our credibility and integrity.

Both are points are fair and reasonable. Does the use or growing of marijuana negatively affect the work of your organization? Will accepting a contribution from a cannabis business cause you to lose the support of donors? Can you afford to lose those donors? Alternatively, if accepting a significant donation from a cannabis business will allow you to dramatically increase the number of clients you serve, do you have an ethical obligation to accept it in order to do more of your good work? Again, there is no single “right” answer that will serve all nonprofit organizations. It’s up to you to determine which answer best serves the men, women, children, plants, and/or animals who rely on your mission and programs.

Lastly, take steps to understand what is motivating a cannabis business to make a donation to your organization. Cannabis business are not recognized by the federal government. And, it is the IRS, a federal agency, which authorizes tax deductions for charitable contributions. Therefore, unlike other businesses, cannabis businesses will not be able to receive a charitable deduction for the gifts they make (at least until federal law changes). Is the cannabis business making a contribution in hopes of receiving brand exposure or awareness? If your nonprofit serves minors, promoting a cannabis business may present an ethical conflict. On the other hand, if the cannabis business is making a contribution in honor of an employee or friend who benefited from your program, no ethical conflict may exist.

If you decide to accept contributions from cannabis businesses, remember to:

Update and/or finalize your nonprofit’s gift acceptance policy accordingly. It’s hard to anticipate every unusual gift you may be offered, so be sure to outline conditions when legal counsel will be sought for guidance and to ensure legal compliance. Remember, Spokes has sample policies to help guide you.

Keep it in California. Only accept gifts from those recognized businesses that are incorporated and located in California. If a cannabis business located in Arizona (where selling recreational marijuana is illegal), or even Washington (where selling recreational marijuana is legal), wants to make a donation to your organization, be cautious and avoid the risk. Especially if you are exchanging any goods or services for the gift (e.g. tickets and advertising for an event sponsorship). Conducting business across state lines could place your nonprofit in the jurisdiction of the federal government and a tricky gray area.

Be consistent. Once you set your policy, stick to it and treat all donors the same. Borrowing from the example above, if you feel it is unethical to promote a cannabis business as a donor because your organization serves minors, you’ll need to hold the same standard for the many wineries and breweries that generously contribute to the nonprofit sector and also sell a product that is illegal for minors.

Follow your mission – doing so will always protect your organization. Various government agencies and the insurance industry are still grappling with how to define and protect the insurable interests relevant to cannabis businesses. To protect your nonprofit from a potential or emerging insurance risk, always use the donated funds received for clearly defined mission-related activities and expenses. Avoid accepting restricted gifts for new programs or activities requested by the cannabis business donor that are not closely aligned with your mission or current strategic priorities.

File IRS tax form 8300 when you receive more than $10,000 in cash from a single donor in a single donation or two “related” donations. For now, most cannabis businesses are unable to bank like other businesses and are forced to operate on a cash-only basis when paying for everything from rent to contributions. To protect your organization from unwittingly participating in illegal money-laundering activities, complete and file form 8300 within 15 days of receiving the funds. Ask a CPA for guidance, as necessary.

Continue your board’s discussion of the ethical concerns they may have regarding cannabis-related contributions (as well as all other types of contributions). Good leadership requires a willingness to make the best decision possible with the information that is currently available. As new information and understanding becomes available around the cannabis industry, new decisions may be necessary. Evolution is expected and responsible. Discuss, decide, and document your process.

We will continue to research issues related to cannabis-related contributions and look forward to updating you on new information and best practices we discover. If you have a related experience or story to share with us and the Spokes community, please contact us.

Ditching Technology (just this once) May Bring Your Nonprofit More Money

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It’s almost that time of year to start drafting your annual appeal. You may be debating about an all-email campaign or a written campaign. Turns out, a solicitation that is printed mail solicitation may be more successful. And, a phone call, may be even more so.
Yup. Technology may not be the solution for every potential donor you have. You may already know that Baby Boomers like to read their mail, but did you know that Millennials love to receive mail, too?
The Nonprofit Quarterly article, “The Case for Going Low Tech in Communications and Fundraising”, written by Sheela Nimishakavi offers some good advice:
Only use digital communication  AFTER you have already created a connection with a prospect or donor through other means (unless the prospect/donor has indicated a preference for receiving communications digitally).
Nimishakavi writes, “The golden rule of stakeholder engagement still applies – digital communication is good, phone is better, but in-person is the best.” Read her entire article here and consider making a few follow-up phone calls or visits after your solicitations are sent this year. Good luck!

An Easy New Way to Connect with Grantmakers…

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Spokes Members can now connect grant research and personal relationships through LinkedIn

The most successful grants are always the ones that come as the result of a personal connection with the granting organization. But, making a personal connection can be much more challenging than writing a compelling narrative. What’s a grantwriter to do?

Never fear! Foundation Directory Online has the perfect solution for you!

Foundation Directory Online just announced a partnership with LinkedIn that will allow you to quickly and easily identify personal connections between your board members and key staff members of granting organizations. Spokes Members can simply log onto Foundation Directory Online, select a foundation, view its profile, and look for the LinkedIn logo to see who in your network knows someone at the foundation.

In order to take full advantage of this new system, be sure to establish an organization profile on LinkedIn and connect each of your board members with it. That way, you’ll be able to immediately see any connections between your team and the grantmaker’s team.

Once you do find a connection, ask the connected board member to send an outreach letter to introduce your organization to the foundation. (This is a great strategy for reaching out to foundations that don’t accept uninvited grant applications, as well.) Find a sample outreach letter here.

Don’t know what Foundation Directory Online is? It’s THE premiere grants research database with more than 140,000 grant makers profiled, including many that don’t have websites and are challenging to find. Foundation Directory Online now also includes government grants, too! A one-year subscription to Foundation Directory Online costs $1,500, but Spokes members receive free access. Call our office to reserve one of our Foundation Directory Online computer terminals in San Luis Obispo and Santa Maria or see if you qualify for a remote pass and start securing new grants today!

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