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4 Ways Nonprofits Can Increase Donations and Multiply Their Impact

July 12, 2018
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4 Ways Nonprofits Can Increase Donations and Multiply Their Impact
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Classy CEO and co-founder Scot Chisholm delivers the keynote address at the 2018 Collaborative in Boston on June 12. Photo by Jean-Phillippe Angers
Each year, fundraising platform Classy hosts a conference to help top social enterprises master the changing face of modern philanthropy.

Maggie Farrand typifies many nonprofit executives.

She’s happy about the level of donations to Pathfinder International, a Boston-area reproductive-rights nonprofit where she is the senior officer of digital media. But Farrand knows that to keep the contributions coming, she must engage current donors in a meaningful way.

That’s why Farrand attended the 2018 Collaborative, a three-day conference in Boston hosted by Classy, an online fundraising platform for social impact organizations, in June. She joined more than 1,200 attendees who listened to talks, participated in workshops, and connected with other nonprofit leaders and peers. Their goal: to better understand how to increase giving and optimize operations so they can best handle sweeping technology-driven changes, as well as answer the call for more diverse and equitable workplaces. They’re contending with those matters at a time when donor retention is more challenging than ever.

“Eighty-two percent of donors are not coming back after their initial gift,” Classy CEO Scot Chisholm said in the opening keynote address. “We think things will get worse before they get better. More donors are giving on websites where the organization doesn’t have visibility or control over the relationship, and therefore not allowing for any kind of supporter allegiance.” But there’s hope, according to Chisholm: “One-third of donations on Classy are made from mobile devices, and we’re seeing that over 60 percent of mobile traffic to Classy campaigns is coming from social media.” If nonprofits can harness mobile and social, as well as explain their missions with clarity, joy and purpose, then they’ll be able to meet donors where they are, increase engagement and sustain charitable programs, he said.

As fundraisers navigate a changing philanthropic landscape, four defining themes emerged from the sessions and workshops of the 2018 Collaborative that can serve as a helpful guide: cohesion in the nonprofit workplace; diversifying fundraising methods; modernizing with technology; and establishing meaningful relationships with donors.

CREATING COHESION

As Black Lives Matter and other movements shine a spotlight on racial inequality, it’s safe to say many organizations still need to treat all of their employees equally. The conference session “Awake to Woke to Work: Building a Race Equity Culture” saw four nonprofit executives highlight their efforts to foster equality.

“White folks are having to deal with the issues of racial identity, which for them is a shocking experience but is what people of color have experienced for a long time,” said Chris Cardona, a program officer of philanthropy at the Ford Foundation. “White people don’t have a way to turn it into lessons of experience and empathy.” But Cardona and his fellow panelists offered several suggestions to put employees on equal footing.

For one, it’s particularly valuable for executives, especially white leaders, to be vulnerable, according to Building for Mission CEO Tamika Mason. Vulnerability leads to openness, which leads to a willingness to learn about race, she said. “It empowers an organization,” she added.

Kerrien Suarez, director of Equity in the Center, urged nonprofits to formally recognize the role of employees who are charged with diversity, equity and inclusion (DEI) in the workplace. “The emotional labor of this work is high,” she said. “The person in this role should be compensated; it requires funding. It’s best to have DEI as a line item in the budget.”

While equity inside the office means organizations must follow rules, dealing with donors outside the office can be trickier, said Brianna Twofoot, the vice president of organizing leadership for Leadership for Educational Equity. Her solution? She won’t let her Mexican-American heritage get in the way of fundraising. “I don’t have time for that problem to be solved,” she said. “I will figure out a way to react to that room, and figure out how to get that money.”

Janelle Coleman, director of the annual fund for St. Francis House, a homeless shelter in Boston, said the discussion panel validated the effort and nuance that’s necessary as her organization starts its DEI efforts. “The world is so divided, so we have to do everything we can to make sure we have an inclusive workplace,” she said.

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From left: Tamika Mason, Brianna Twofoot and Kerrien Suarez spoke about their efforts to operationalize equity in the workplace during a session called “Awake to Woke to Work: Building a Race Equity Culture.”Photo by Jean-Phillippe Angers

DIVERSIFYING FUNDRAISING

With donors able to choose from a slew of philanthropic causes, several conference sessions examined how nonprofits can vary their fundraising efforts to reach all types of donors, including socially responsible corporations and individuals who first want to see proof of good.

Elaine Martyn, vice president of relationship management for the Private Donor Group at Fidelity Charitable, stressed the importance of understanding the circumstances and ways of large donors so that nonprofits can personalize fundraising efforts. She recalled an instance when she had received a $100,000 gift from a donor who was worth $100 million, and Martyn asked the woman why she made her “work so hard” for the donation. “She said, ‘You’re the one organization I want to give this to, but I also want to make sure every gift has an impact.’”

Similarly, Ewing Marion Kauffman Foundation’s Public Affairs Vice President Larry Jacob recommended that nonprofits perform due diligence when seeking gifts from corporations. Nonprofits need to be clear, he said, about what the donation will do: where it will be earmarked and the intended result. (Disclosure: the Kauffman Foundation is a paid partner of NationSwell.)

Nonprofits should benefit from partnerships with corporations as millennials integrate their personal charitable values into their leadership positions at work, according to Danielle Silber, director of strategic partnerships at the American Civil Liberties Union. These companies want to demonstrate what they stand for, she said, and will work with nonprofits that best align with their goals.

Even though nonprofits work in a crowded field, it is possible to attain year-over-year growth by implementing the right technology, said Stephanie Herron, chief development officer for Shriners Hospitals for Children. A fundraising platform enables both small donations and the occasional large ones. Shriners Hospitals, for instance, has accepted multiple $25,000 credit card donations through Classy, she said. Martyn also urged nonprofit leaders to personally donate to their own organizations, enabling them to see how donors are treated.

MODERNIZING IN A TECH LANDSCAPE

Extending the conversation about diversifying, Box.org Executive Director Bryan Breckenridge said nonprofits should look differently at their relationships with the people behind technology. For instance, fundraising leaders should learn the names of their organization’s top three technology vendors so they can approach them about opportunities, he told attendees.

Katie Bisbee, chief marketing officer and executive vice president of partnerships at DonorsChoose.org, agreed, saying tech vendors have a “huge megaphone” that can easily amplify a nonprofit’s work and mission. Don’t be shy to ask the vendor to participate in a case study; the vendor can promote its technology and the nonprofit can illustrate its efficiency through the platform, she added.

And don’t be afraid to compare strategies with other nonprofits, Bisbee said. DonorsChoose.org benefits from her sharing data and success stories with organizations such as GlobalGiving, Kiva and Charity: Water, and she consults with 20 other nonprofits.

One such example of information sharing came at the Collaborative, when Jim Carter III and Hamse Warfa revealed their successes with the nascent technology blockchain. Carter, co-founder and vice president of engineering for Giving Assistant, recounted how a week after he established a bitcoin account for the education nonprofit Pencils for Promise, he was overcome with joy when learning the organization had received a $1 million bitcoin-only donation from an anonymous donor. His coding work for four other organizations has helped them collectively receive $4.2 million from the same donor.

“This isn’t a replacement for other payment methods,” Carter said. “I’m not saying ‘stop accepting credit cards.’ That would be ludicrous.” But by accepting cryptocurrency, nonprofits open the doors to a new world of donors who use only that form of money, he said.

Warfa, co-founder and executive vice president of BanQu, detailed how blockchain can empower farmers around the world by giving them an immutable financial transaction history that will improve their chances of securing microloans. On that same front, charitable organizations can take advantage of blockchain by having all of the data points — financial, health and education — of a refugee on one platform, instead of relying on several.

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Accepting cryptocurrency can increase a nonprofit’s donations, said Jim Carter III (center, with Sarah Sloat, left, and Hamse Warfa) during a session on the power of blockchain technology.Photo by Jean-Phillippe Angers

BUILDING MEANINGFUL RELATIONSHIPS

Technology, however, will have little effect if nonprofits can’t tell a convincing story about their work. Several Collaborative speakers espoused the power of storytelling, reminding attendees that a social media platform and marketing are only as good as the stories behind them.

Tyler Riewer, the brand content lead at Charity: Water, travels the world to hear — and later tell — the stories of the people who benefit from his organization’s work. He recommends that other nonprofit storytellers “create a sense of relatability” in their outreach to donors. The way that an organization solves a problem can “seem so far away” to donors, but if they see how the problem affects them, they will make that personal connection, he said.

A story also has to be authentic, according to Derek Hubbard, an external communications specialist at Southwest Airlines. “You have to tell stories from the heart,” he said. “It has to be true to who you are. People can see right through stories if they’re not authentic.”

Carilu Dietrich, chief marketing officer of Classy, said nonprofits often struggle with telling stories about people facing obstacles because they’re unsure if those details will make potential donors uncomfortable. But by taking an incremental approach — from detailing the obstacle, to relaying the potential for hope, to outlining the actual path forward — nonprofits will have a compelling story to tell, she said.

Nonprofits also have the ability to test campaigns by creating different story angles and sending them to different audiences, Dietrich said. Ultimately, donors have to believe they can add a chapter to an organization’s story, she said. “Make people feel as if they can do something.”

This article was paid by and produced in collaboration with Classy. Through the power of its fundraising platform, Classy serves customers who are tackling the world’s greatest challenges. Classy also hosts the annual Collaborative conference, a three-day immersive experience where today’s changemakers come together to co-create the future of social entrepreneurship.
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