ONEplace Blog

News, comments, resources, and more for nonprofits.

Retain for greater gain

The annual Giving Report from Indiana University’s Lilly Family School of Philanthropy is out. Once again, it shows that individual donations and bequests make up around 80% of total giving. It also shows that…

…giving was up 4.4% overall.

Recently, Gail Perry provided an overview of this report. (I hope you’re receiving her weekly email.) In her summary, she provides key data points and offers her insights. She notes that while giving is up overall, the increase was driven by major gifts from loyal donors. Her bottom line:

“Create a donor retention task force to ‘love on’ your current donors.”

Last week I referred to Penelope Burk’s research showing the startling impact of simply having board members make thank you calls. Place this basic activity within a strategic approach to donor retention and your program will take off.

You’ll also avoid what the Giving Report suggests may be a looming storm – a net loss of 12 donors for every 100 gained or retained since the Recession. How does your retention rate compare?

Why have I written on this topic for two weeks in a row? The cost difference between renewing donors and acquiring new donors is around one dollar for every dollar given. You read that right. According to data from the Association of Fundraising Professionals (AFP), renewal efforts cost around $0.20 for every dollar given while donor acquisition costs around $1.20 for every dollar given.

It may be time to evaluate your donor retention efforts. You can’t afford not to.

Best,

Thom

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Increase donor retention by 250%

Do you want to increase retention of first time donors from 20% to 70%? It’s easy.

Have a board member call the donor within 48 hours to say “thank you.” The call will take about a minute – half of the calls will go to voice mail (which is fine).

Not convinced? Last Thursday, I attended a workshop with Penelope Burk, fundraising consultant and President of Cygnus Applied Research (presented by Association of Fundraising Professionals – West Michigan Chapter). She has been researching fundraising practices and donor behavior for many years and has keen insights on what works and what doesn’t.

In a recent interview, she cited her research on first time donors who received a thank you call after their first gift:

We watched what happened with donors for two years, over six subsequent campaigns. They were never phoned again, but even by the end of the second year, the test group was still performing much higher — an average gift 42 percent higher than the control group — and they had a 70 percent retention rate from the first time they gave right through to the end of the sixth request. In contrast, the control group had an 80 percent drop-off rate [i.e., a 20% retention rate].

How much will it cost your organization’s budget to have board members make thank you calls? Zero dollars. What are the benefits? 42% increase in average gift, 250% increase in donor retention, and a more engaged board. That’s an incredibly huge ROI.

I know that some organizations already do this – Bravo! For those of you who aren’t doing this – start today.

Best,

Thom

P.S. Read the full interview with Penelope Burk from last summer (read now)

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ONEplace Peer Learning

We consistently hear from you (including our recent survey results) that you value discussion and interaction with your peers. This makes sense. As we work together on new information, we challenge each other’s assumptions, uncover specific insights, and learn from one another.

A recent study supports your feedback. Last year, the Johnson Center for Philanthropy did a study for Wilberforce University on effective capacity building strategies. This exhaustive study examined literature from 2008-2013, surveyed 236 foundations, and included 20 interviews. One key result of this study was that peer learning surfaced as the most effective capacity building approach.

Over the past several months, ONEplace has been piloting peer learning groups. In addition, we’ve interviewed persons who have benefitted from other peer learning groups. Now it’s time to move this effort to its next phase.

Soon we will issue an invitation for our ONEplace Peer Learning program. Participants will be gathered in small groups. Here are some details:

  • Groups will be approximately 8 persons
  • Peer groups will be defined by common position held and similar level of experience
  • Time commitment will be up to each group (suggestion is at least six monthly meetings)
  • All groups will be facilitated by ONEplace

We look forward to this new venture, and we look forward to your participating and helping it to grow into an effective way to learn, connect, and grow in your career.

Best,

Thom

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I am board

  • You want your board to be more engaged…how do we get them to focus? 
  • You’ve been on a board for years…is this really what we should be doing? 
  • You’re elected to a nonprofit’s board…now what? 
  • You’re considering serving on a nonprofit board…what am I getting myself into? 

This past year, ONEplace increased its assistance and training with nonprofit boards. One of the insights from working with almost 20 boards is that there often is confusion as to what is and is not the board’s role. We find this is true for experienced board members as well as newer members.

This is not surprising. As the world around us changes, the governance challenges shift as well. Concerns with funding, long-term planning, and public perception lead us into a labyrinth of ideas as well as stories of past successes and failures. As one person put it, “It’s easy to get lost in the weeds.”

To address this fundamental concern, ONEplace will offer a Board Membership 101 workshop three times over the next year. During this 90-minute workshop, participants will:

  • Learn the ten basic responsibilities of a board
  • Examine proven practices in meeting these responsibilities
  • Explore how these interface with your board
  • Discover the benefits of serving on a board

The next Board Membership 101 is scheduled for Tuesday, June 24 at 4 pm. Others are slated for October and April. Consider having two or more of your board members attend the upcoming workshop to see how this event may integrate with your onboarding and continuous improvement processes.

Best,

Thom

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Coffee with Bill Rose

This month we sit down with Bill Rose, President and CEO of the Kalamazoo Nature Center, as he talks about how he developed his approach to leadership.

Tell us how you got to where you are today (positions held, career shifts, etc)

I went to graduate school to work on my Ph.D. so I could follow an academic career path at a university. While completing my degree, I began to realize that I had a deep passion for conservation and environmental action. A friend of mine told me about a job opening as a plant ecologist with The Nature Conservancy that she thought I should apply for. She was right. I got the job and that started me down a path of working for nature and environmental private nonprofit organizations. While working as a plant ecologist, I began to discover a latent interest that I had in administrative and fundraising work. I started raising money so I could hire more people to do more work. When a job opening came up in The Nature Conservancy for a Regional Director position, I jumped at the chance. This gave me the opportunity to further my interest in the business and leadership side of nonprofit work. After a number of years in this position, an executive search firm contacted me about working for the Kalamazoo Nature Center. It looked like a perfect fit that would allow me to combine all the things that I had a passion for: nonprofit leadership in the area of environment/nature; opportunity to continuing applying my scientific training/education; and, be active in an educational organization.

What do you most love about the Kalamazoo community?

I love Kalamazoo for many reasons. It is a progressive and philanthropic community that embraces change which leads to so many good things for all people in our community. The cultural and natural features of this community bring richness and depth that is not often found in a community of our size. The institutions of higher learner present us with the challenge to stay fresh in our ideas about how our community continues to stay relevant.

What guides or principles do you rely most upon?

  1. Follow your passion.
  2. Have fun.
  3. Be a leader, not just an administrator.
  4. Define what the culture of your organization should be and continuously work to build that culture.
  5. Strive to exceed the “customer’s” expectations.
  6. Work toward constant quality improvements in every area of your organization.
  7. Society is constantly changing so you need to change too or you begin to fall behind

Who was one of your mentors and what do you carry with you from that relationship?

Bob Tower (retired from Tower Pinkster), he taught me to be a good fundraiser and helped me begin to develop my network of contacts. I learned how important it is to be a good listener.

What has been one of your biggest learning moments?

I attended the week long program on leadership at the Center for Creative Leadership in North Carolina in the mid-1980s where I learned many of the fundamentals of “leadership.” Another big aha moment came in the early 1990s when I attended Disney University’s program on high quality customer service where I learned the significance of establishing a positive culture in your organization.

What’s an average day like for you at work?

I’m constantly juggling a thousand balls while remaining focused on a few key strategic items.

What are the types of challenges/opportunities that keep you up at night?

Not much. I am really comfortable knowing that the Nature Center is a successful organization that can always do more but satisfied that we are making a difference.

How do you stay up-to-date on latest trends in your field?

Being engaged with professional support organizations locally and nationally. This includes: Meeting with peers; Constant continuing education; Staying up with the news, and; Always looking for ways to network.

What advice do you have for those wishing to have a long lasting career in the nonprofit sector?

Follow your passion, have fun and strive for a balanced life.

What do you geek?

For me that has changed over time. Now that I have adult children and grandchildren, on opposite coasts, I love to engage with them in any way that I can. I love to play on the water at our cottage. 

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Your Voice Guides ONEplace Planning

ONEplace exists to help you do your job better. So, when you talk, we listen.

Last year, you said that you wanted more interactive workshops and fewer webinars. We cut the number of webinars in half and replaced them with 60-90’ workshops/discussions, often supplementing these with ONEpage or video pre-work.

You also said you liked small group roundtables but wanted the group to be bigger and more targeted. This past year we discontinued the open roundtables and replaced them with targeted, short-term small groups. Look for our next small group invitations coming soon.

Overall, you find ONEplace to be meeting your training needs, but you wanted more time for chatting and connecting with colleagues. In response, we started the Kalamazoo Nonprofit Connection (LinkedIn group) and our quarterly Kalamazoo Nonprofit Connection – LIVE networking event. Your participation makes these valuable tools to strengthen our nonprofit sector.

A few weeks ago, we sent our semi-annual Training Event Survey. “Thank You” to the 95 respondents who participated.

At ONEplace, we measure our impact with post-session evaluations and a bank of semi-annual surveys. In the recent Training Events survey, we measure success on these questions:

  • Do you plan to return? If you find value, you’ll return for more.
  • Do you recommend ONEplace to others? If you find value, you’ll recommend ONEplace to others.
  • Do you see a benefit to your job, your organization, and yourself? You notice improvement.
  • Do you expand your network by attending? You feel more connected to your nonprofit colleagues

Our benchmark is 85%. Here’s what you reported:

  • 99% plan to attend future events at ONEplace
  • 97% have recommended ONEplace to colleagues or others
  • 99% agree or strongly agree that workshops benefitted their organizations
  • 99% agree or strongly agree that workshops helped them do their jobs better
  • 98% agree or strongly agree that workshops benefitted them personally
  • 91% agree or strongly agree that workshops expanded their network

Your comments also help guide ONEplace programs and activities. Here’s a summary of your 45 separate comments.

  • Twelve (27%) comments affirming current programming and approach
  • Eight (18%) requested evening workshops
  • Three (7%) suggested holding events at locations other than the library
  • Three (7%) requesting more small group opportunities with like positions
  • Two (4%) encourage more interaction & discussion time in workshops

In addition, there were several single comments sharing ideas for programs and improvements. Some we’ve already started on based upon comments gleaned from post-session evaluations. Others are still to be considered.

We know that ideas and concerns arise any time (not just at survey time), so please do not hesitate to send us your thoughts (oneplace@kpl.gov).

ThomA

Just ONEthing - June

Two workshops this past month emphasized the importance and value of planning ahead.

Audrey Randall (Paradigm Risk Management) and Adam Castle (American Red Cross) guided participants through emergency action planning. The key framework they outlined includes building a plan, periodic training and drills with staff, and clear communication protocols. The Red Cross has free online assessment tools and planning resources to guide you through your planning and preparation.

Chris Dilley (People’s Food Co-op) shared his story and insights into nonprofit financial management. He cited a key to successful financial management as building a reserve, i.e., having sufficient cash in the bank to handle small crises and the variations of cash flow through the year. Building a reserve develops community trust and allows you to take advantage of unexpected opportunities. One workshop participant’s organization has an emergency fund in addition to the operating reserve. The emergency fund is protected by several policies and procedures to ensure that it’s used only in case of an emergency. That’s planning ahead!

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What's in your grocery cart?

Mission, vision, values, strategic plans, purpose statements, case statements, and the list goes on. With so many ways to document our organization’s focus, it’s easy to be overwhelmed. Sometimes a good metaphor helps.

The Celery Test (from Simon Sinek’s Start with Why) puts organizational focus within a grocery metaphor. We ask for advice from outside experts and each offers their own ideas of what we should buy: Oreos, Celery, Rice Milk, and M&Ms. We go to the grocery and buy all these items. In the checkout line, our variety of items indicates nothing of consequence to onlookers. Furthermore, we know that some items will be more helpful than others.

However, if we were clear that our purpose was healthy eating, then what would we buy…celery and rice milk. At the checkout, someone may notice our healthy choices and strike up a conversation based upon our shared concern (a new supporter?). We know that our money was spent on items that will be helpful. Further, once I wrote that our purpose was healthy eating, you already knew what I would be buying. In other words, clarity of purpose provides organization-wide criteria for good decision-making.

It seems that I cannot visit LinkedIn, Twitter or the bookshelves without finding more and more evidence that having and articulating a clear understanding of your purpose, your cause, and the better world you envision is the single most unifying factor for your entire stakeholder universe (staff, board, volunteers, donors, community). It speaks louder than any talking points, advertising or appeal letter. It’s at the heart of organizational integrity.

If your organization needs to recapture its purpose or simply check-in on it, ONEplace can help. Do not hesitate to call (269-553-7910) or email (ONEplace@kpl.gov) – that’s why we’re here.

Best,

Thom

P.S. Check out this detailed explanation of the Celery Test.

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A time to remember

With Memorial Day fast approaching, we’ll hear much about times past and the benefits enjoyed today because of yesterday’s sacrifices. At times like these I remember a favorite maxim from a former professor: you can tell a lot about a movement by how it defines its history.

Do you know your organization’s story?

In our communications workshops, we often explore the power of stories. Generally, our focus is on transformative stories from patrons, clients, or volunteers and how their lives were improved. We use these stories to make our case and raise our funds.

But what about your organization’s story? How have you captured that story? In what ways do you tell it to the public?

Over the next week or two, find your organization’s story and spend some time with it. How does it inform what you’re doing today? In what ways are you contributing to its legacy?

A well-told organizational story melds with the community’s story, showing how we each play a role in making our home something worth telling others about.

Happy Memorial Day,

Thom 

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Can we talk?

A couple of weeks ago I sent (i.e., postal mail) a card thanking Marcy for her program leadership. In subsequent email conversations with her, she thanked me for the thank you card – twice! – saying how much it meant to her. This, and other similar exchanges, makes me wonder:

With all the communications we churn out,are we really connecting with people?

Connecting is our goal. We can blah-blah-blah all we want, but if we’re not reaching people then our efforts are wasted…or, worse yet, alienating. With limited time and capacity, we must ensure that our communications are focused and effective.

May is Marketing & Communications Month at ONEplace. We have a handful of workshops and events to help you make valuable connections.

Spend some time this month evaluating your communications. Use the upcoming weeks to plan and experiment, so that, come fall, you’re ready to roll-out compelling and engaging communications.

Best,

Thom

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