Showing posts with label charity. Show all posts
Showing posts with label charity. Show all posts

Monday, October 15, 2012

'Tis the season

....for charity appeals by the dozen in the mailbox. 

And I get to decide who has been naughty or nice.  

Nice means you tell me what you did with donors' money. I still read print, but a short email is also good. And if you tell me by email, do make it short. Like at least 53 percent of Americans, I use a smartphone, so I end up reading non-work emails while doing something else, like waiting in line at the grocery.

Naughty means you just keep asking for more (and more and more).  A study about Giving in Kansas City from 2008 found donors stop giving when they receive "too many appeals for more money."  Nearly 7 in 10 donors who had stopped making contributions to any one charity in the prior 12 months indicated that as their reason. Frankly, I was thrilled when one organization, after 18 months of unrelenting appeals and no gifts from this household, promised me in red on the outside of their envelope, "This is your last mailing from us!" Finally, they got it!  I didn't want to give to them.

If retention is THE number one issue now in giving, with 107 donors leaving an organization for every 100 gained, why are some charitable organizations driving donors away with too-frequent requests? 

Do computer systems only "recognize" the amount of the most recent contribution, not the cumulative total for a year? Or over a decade? Do donors of $250 at one time get three appeals a month?  Or only those of us who space our giving out? The "Donor Relations Guru" has some good advice about checking cumulative giving amounts.

Are organizations hanging on to practices I learned when I started in fundraising circa 1989 that might now need to change?  The work of Penelope Burk on donor-centered fundraising and others suggests that organizations must treat donors as valued partners in achieving goals, not as ATMs. So ask in more meaningful ways, not more often. Understand how donors read appeals and what they do.

Here is how one real donor, a valued partner, "processes" appeals. When I get the mail at night, I have these options for fundraising letters: I a) recycle immediately; b) set aside to review later, maybe while my computer warms up the next morning; or c) well....there is no c.  Many more fall in option A than in option B. 

Basically, if you sell your list to another organization, I'll never read that other organization's material and I'm likely to stop supporting you, too.  Pile A automatically.

For pile B, I use "found" time, like when waiting for coffee to brew. So, get my attention quickly. Use photos, make it short, tell me what my money will help you accomplish.  I like inserts -- not notecards and address labels (though I use those without ever giving a nickel back) but the mission-related content.  I'm more likely to read a colorful, short 'flier' than a long letter. 

If we decide to give, it is almost certain I'll set aside your material for the end of the month when I do all other household finances. So, maybe arrange your mailing to arrive just before then. And make it easy to do online or by having my bank send you a check. 

But I am a sample of one. And what works at organizations with a national donor base might or might not work for local grassroots charities. What inspires this married female Boomer might not appeal to a Gen X single guy. Practices in the US might not translate to Australia or India. Blackbaud is the only organization I am aware of that tracks fundraising practices internationally, so stay tuned to its site  for release of this year's State of the Nonprofit Industry, whcih will look at some topics in fundraising.

Thank you for reading.

Melissa



Tuesday, February 21, 2012

Butcher, baker, candlestick maker

From the time we start learning right from left (though I've never managed that), we start seeing the world in categories. Some groupings are not useful, but some are -- and the findings released last fall by GuideStar and Hope Consulting in their Money for Good II  report are definitely on the useful side.


The survey analysis revealed six groups of donor motivations, from "Repayer" to "High Impact."  




Donor motivations might even shift depending on the gift amount, who asks, and the nature of the recipient organization.  As a tiny example, my most recent gift (a small pledge to Girls Inc of Indianapolis as part of a "virtual" event this weekend) overlaps three of the groups above: Personal ties probably trumps all of them, but See the Difference is in there, as is Repayer.  


How can fundraisers act when motivations are complex?  Well, tough though it might be to swallow, we need to keep information (data) about our constituents, so we can track HOW they are connected, WHEN they give or volunteer (timing and in response to which request(s)), and WHAT they say about us. 


Sometimes, we even have to ask them why they support us and then remember and record the answer.  


However, as with anything, there is a potential downside. The cautionary tale in this past Sunday's New York Times Magazine about a major retailer and its use of data for marketing is important. 


When we have data, we must be responsible about how we use it.  Fundraisers must always "put philanthropic mission above personal gain." (AFP Code of Ethical Principles and Standards).

For me, the guiding question is: Does the information we keep about donors or prospective donors help us help those individuals connect more happily with the work our organization does?  If it isn't something the donor would be happy about, don't keep it.

Wednesday, February 15, 2012

The isty-bitsy spider went up the spout again.

Welcome back! Took a break after a welcome "rain" last fall of lots of work. Still have lots of work but am convinced by my good friend Kirsten Bullock that blogging again is worth the time. Thanks, Kirsten!

Some changes coming for 2012. I will write less about our family's giving, as our two oldest children head off to college so the "family" at home gets smaller. I will write more about my take on writings and research about giving. So, toward that new goal, here is the beginning of a review published last week by The Foundation Center. My take is a little different than many others....what do you think? Read the rest of the review and comment on it by following the link at the end of this excerpt.

From Off the Shelf, February 7, 2012
The Foundation Center

Giving 2.0: Transform Your Giving and Our World
Laura Arrillaga-Andreessen (Hoboken, NJ : Jossey-Bass, 2011)

By coincidence, the day I started reading Giving 2.0: Transform Your Giving and Our World, I also attended a presentation by Dr. Jen Shang, who argued that, for women at least, the charitable act brings the giver closer to her "ideal, moral self." Laura Arrillaga-Andreessen's book is a vivid illustration of that precept. Arrillaga-Andreessen wants you to give and volunteer, in part, to improve your sense of personal fulfillment and (perhaps) your standing in the cosmos. There's a lot going on in Giving 2.0. Arrillaga-Andreessen covers the gamut of ways to give, from volunteering, to "checkbook giving," to family foundations and donor-advised funds, to venture philanthropy. Each chapter combines stories from donors (including those who volunteer time and talent), insights from the author, and questions to ask as you begin to explore that type of giving.

But the book suffers from the very problem it tries to address: there are so many ideas packed between its covers that it's hard to assimilate all of them.

To continue

Thanks for reading!

Melissa

Tuesday, August 23, 2011

Nature or nurture?

Why does anyone give to charity at all, when they could keep money for themselves and be “better off”? This question puzzles scholars the world over. Surprisingly the results are remarkably consistent across cultures. Some people give everywhere research has been done, albeit sometimes more or less often.

Why does anyone give? Increasing evidence suggests that it is an important form of social bonding. A recent article in The Economist summarizes it like this: “The benefits and chances of future encounters ….. [show] that it pays to be trusting, even though you will sometimes be cheated.”

But some people are either naturally distrustful or learn to be wary of others. A study in Israel found that people who did not give or gave very little in a laboratory game had a genetic variation compared with those who did.

A Center on Philanthropy analysis of charitable giving in three different years by the same people found that 15 percent of folks did not give at all in those years. Households that did not give tended to be lower income, so genetic variation does not necessarily play a role there. But maybe … if genetic variations are associated with trust, perhaps people whose genes lead them to low trust also have a harder time than others learning skills for, then finding and keeping a higher-paying job? A good research project for someone.

So what besides a possible genetic predisposition is associated with a lack of social trust? Basically, recent or persistent bad experiences. Alesina and La Ferrara found with U.S. data that people with low trust were likely to report any one or more of the following: recent trauma such as severe illness, job loss, or divorce; identification with a group historically subject to racism or bias; a low level of education or earnings; or residence in a community that is racially very diverse or in a community that includes people with very high income and people with low income. (Side note: Riots in parts of the U.K. this year and in France last year make a lot of sense in this context: those rioting are among the poorest in their societies and are often the victims of systematic bias.)

Psychologist Dacher Keltner's research finds that as a species, humans are Born to Be Good. However, experience shows that some people have more opportunities to act good--happy, compassionate, mirthful, etc.--than others.

Gretchen Rubin at The Happiness Project offers all of us, no matter what our genetic make-up and recent experiences seven tips for how to be happier in the next HOUR. One of them is "Do a good deed."

What will YOUR good deed be? It could be a charitable gift, contribution of volunteer time, making an appointment to give blood (and keeping it), or helping someone you know accomplish their own goal. Whatever it is, all research shows: do it and you'll feel better, and the world will be a bit better, too.

Wednesday, August 10, 2011

The latest data

So this morning, I wrote 350 engaging words about research into WHY people give. If you want to read that, stay tuned for another day, because in the process of preparing that post, I discovered that last week the IRS released final data about charitable giving in 2009.

SO.....ta da. A quick look at what changed between 2008 and 2009 in the world of individual, itemized charitable contributions.

The short, short answer is that itemized giving fell -- as anticipated -- from 2008. The total decline for the amount claimed in charitable deductions was 9%.

Interestingly, though, tax returns with income UNDER $200,000 actually gave an AVERAGE amount that was 3% more than the average amount given in 2008. However, tax returns with income over $200,000 declined in number by 10%, saw a 20% drop in income overall, and reported 18% less in all itemized contributions -- and a 9% decline in the average charitable contribution.

The biggest drop overall, not shown on the table attached, was in gifts that count as "other than cash." Usually that means securities, and since the stock market in 2009 hadn't even started looking up yet, that isn't a surprise.

Word from my friends in fundraising is that many organizations have seen increases in charitable amounts received in the first half of 2011. What will happen with annual campaigns this fall? If you have thoughts, post them in the Comments area below.

Thanks!

Melissa

Friday, August 5, 2011

Horn of Africa crisis

Nearly 50 U.S.-based charities working on Horn of Africa crisis are listed at this site, organized by Interaction. Determine your priorities and use the links provided to give.

Thursday, August 4, 2011

Goosey Goosey Gander

Research shows over and over that women are more likely to give – and give more – than men after controlling for income and education. So imagine my surprise when twice last week, my spouse asked me to put gifts to organizations into our household budget. Typically, one of the kids or I propose the contribution.

It is said that men often expect something for their gifts. For some guys, it is football tickets….for my guy, it is free parking at an art museum. So, the gift goes out so he can go in.

The second gift was essentially a vote for his political perspective in a year without an election. The recipient is the research foundation associated with a partisan newsletter about public policy and shenanigans inside the Beltway. So, while this gift is not necessarily about impact or achieving meaningful change in our lifetimes, it satisfies his need to DO something already about the quagmire that Congress and the Executive branch are slogging through.

As for the four gooseys in this household, Ann asked for funding for an event tied to the start of school next week (yes, in Indiana, we start in early August!). Lia wants to keep supporting organizations that seek cures for AIDS and cancer. Elle is 17 and 3/4ths, so rolls her eyes and shrugs if I ask. I just made an admittedly token gift to alleviate some of my guilt at being an over-fed American when people in Africa and elsewhere (including here) are literally starving to death. The photo on the front page of a recent issue of New York Times was horrific to see. Sometimes, even if you know the drop is tiny in a huge ocean of need, you just have to do it.

Friday, July 8, 2011

Political gifts are not charitable, but charitable gifts can be political

Ants that our dogs chase on the driveway are part of a huge community that extends far past our lot. In a similar interconnectedness, our suburban lives link to an enormous system of trade and exchange within the U.S. and beyond. Just as our purchases are part of the global economy, our charitable gifts to U.S. organizations are inextricably part of the worldwide exchange, whether we are giving for international aid or not.

I’ve been wondering lately how to use our giving (in a small way) to help create jobs and grow the U.S. economy, just as I try to do by buying from local businesses and deliberately looking for Made in the USA labels. There are several approaches through which giving can stimulate employment. One is gifts to (re)training programs, so that people can develop skills in fields where hiring is on an increase. Another is support for projects like one-stop jobs centers that link people with existing skills to open positions.

But more important in the U.S. economy now than helping people find jobs is generating demand for goods and services, so that more companies and organizations need to hire. Nonprofits can help stimulate demand, too. One method is through nonprofit support for entrepreneurs, because new products and services create new demand (anyone buy an iPad or Kindle lately?) JumpStart, a successful Ohio program, recently announced plans to go national, with JumpStart America. The Ewing Marion Kauffman Foundation has many programs that support entrepreneurs, and many organizations, including universities, are setting up “social entrepreneurship” programs, to help create and market products or services that benefit people’s lives—things like micro-lending, water filters, safer cook stoves, “green” technologies, and so on.

Another strategy is to give enough to nonprofits that they can create jobs in their own organizations. However, in recent years, funding for new initiatives and capital projects has generally lagged giving for operations and immediate needs. With recent state actions and budget crises, plus proposed cuts in domestic spending at the federal level, nonprofit organizations are in a world of hurt that philanthropy alone will not heal.

Still, even small donations can make a difference, according Give A Little by Wendy Smith. The "butterfly effect" instructs us that even small acts in complex systems have consequences. In addition to thinking about a match between our values and a program's mission, the organization's capacity to address the issue(s), and its impact, I will be adding another criterion to our charitable choices: might it help boost demand in the U.S., leading in some tiny way to more employment?

Monday, June 27, 2011

WILL-O-THE-WISP*

This week’s mail included three direct mail appeals and three invitations to buy term life insurance. Do AAA, AARP, and TIAA-CREF know something about me that I don’t know? Or is June just a good time for this kind of sales to people in their early 50s?

I had already realized that I need life insurance before those offers arrived, so I actually opened these and read them. The plans are similar and the costs are roughly comparable, but interestingly, TIAA-CREF includes a “no cost” option to designate an educational or research institution as an additional beneficiary. That is, without paying extra for it, as long as I buy life insurance from them, I could make a charitable gift after my death to my alma mater, or my husband’s current employer, or some other qualified organization.

Kevin and I are already part of the 8 to 10 percent of adults that include a charitable bequest in our wills. The life insurance offers reminded me that it is long past time for us to review our estate plans. This got me to thinking about what charity or charities we might designate now and for how much.

We give regularly to six charities, plus to other opportunities that come up during the year. I’m not sure I want to make a bequest to each of those six. For a charity that I do want to benefit after my certain and eventual death, it would be good to “endow” our annual gift. A specific bequest equal to 20 times our annual gift, if invested, would allow the charity to withdraw 5 percent a year for at least 20 years, and longer if investment returns are high enough.

But how to decide the organization(s) to put in our will? Our alma mater is an easy choice: It is nearly 100 years old and will be around for decades and perhaps centuries longer. But we don’t make an annual gift there. However, Kevin’s professional library might be something a liberal arts college would be able to use. That, however, is probably a question we should ask before we put that in writing. There is no point in creating a gift that would be a burden. I mean, do YOU want to sort through 7,000+ history books to figure out which are of value to faculty or students these days, with iPads and e-books, etc.?

We support some local organizations that serve missions we care about, but the organizations themselves might not last forever. We could make a gift to the Central Indiana Community Foundation, but would a low four-figure endowment be large enough for them to bother with? And should I reward poor stewardship with a bequest gift (see Pay Day = Give Day)?

I want to arrange charitable bequests, but this will require more thought and discussion with Kevin and our kids. This is definitely not a gift to make on a whim, unlike Saturday’s $1 cash-register donation at our pharmacy to help find a cure for ALS/Lou Gehrig’s Disease


* According to Wikipedia, Will-o-the-Wisp is 'the folklore term for a ghostly light sometimes seen at night or twilight over bogs, swamps, and marshes. It resembles a flickering lamp and is sometimes said to recede if approached.'

Monday, June 6, 2011

Payday = Give Day

My family gives every month to four charities. Each gift is relatively small, but over the course of a year, we give more than 1 percent of our income. One gift is charged automatically to a credit card; three are paid by our bank after I set them up as recurring “bill payments.” Interestingly, only one charity regularly sends a gift acknowledgement.

Gleaners Food Bank sends a letter and an envelope for another gift each month. Thank you!

Doctors Without Borders sends “updates,” which include appeals for more gifts. They also sell or trade their mailing list to numerous other groups, which is a common practice.

Indiana Youth Group (IYG) sent a sort-of thank you at the end of 2010, which was really an appeal for more money. This is the first time we’ve heard from them since starting our contributions in fall 2009. Not even a newsletter in more than a year.

The executive director of Ensemble Music Society contacted us after our first gift, also in fall 2009, to ask for the full amount of our “pledge” to the capital campaign. Since the gift is unrestricted with no end date, I couldn’t answer his question.

So, you might ask, WHY do we keep giving to these groups. Mostly it gets down to mission and how these groups work toward goals that we hold as individuals. While research says giving is irrational, I see our donations as “votes” for our values.

As I’ve said before, we are committed to trying to assure better food security, so the Gleaners gift is a no-brainer for us. The gifts to Doctors without Borders reflect daughter Ann’s interests. Plus I like all of the address labels, gift wrap and note cards from the other groups that buy or rent that list! IYG ties to the other daughters’ volunteer work, first Elle and now Lia, with the high school Gay Straight Alliance. The Ensemble Music Society reflects my husband’s strong interest in high culture, even though he no longer attends their concerts.

Our secular giving is about average. American donor households give one percent of their income to secular causes. Households that participate in worship services give two percent of their income to religion, on average.

I’d love to double our giving to secular causes so that we could give 2 or even 3 percent of our income in total, going even further than the Foundation Beyond Belief. We’d probably add more charities, rather than increase the gifts we make now. The stack of requests just keeps growing – four more last week by mail.

Just writing this makes me realize that it is time we re-evaluate the organizations we give to. We set up those automatic payments more than 18 months ago. If we are “voting” for our values, we need to check in with each other about what might have changed since then. My husband will probably have the same choices, but the teens' preferences have likely shifted, and our giving should reflect those.

P.S. In addition to the automatic withdrawals, last week we wrote checks to Relay for Life for the June 4 event. This week, I’ll make our contributions by credit card in memory of Bob Payton, $88 to Center on Philanthropy Scholarship Fund and $22 to Payton Library, following the votes on the poll. Thanks!

Tuesday, May 31, 2011

One two, buckle my shoe

They are called micro-gifts, and they add up. We had requests at Costco, PetSmart, and our local grocery in the past week to add a dollar (or five or ten) to a purchase to give to a charity. There is even “an app for that,” developed by three teens, although it isn’t clear how they vet charities to fit the marketing line that they are "carefully selected service organizations”

I asked my teens Ann, Elle, and Lia what they think about this form of giving. They all said that these gifts are a good thing for the charities because they can raise more money from lots of small donations. They liked that the amounts requested fit easily within their income or allowance.

But they also said that such giving does not teach care for others. Instead, the donors are likely already people who give (two-thirds of households in the U.S. are donors) or are literally acting on impulse, like buying a bag of chips or a candy bar at the check-out line.

Ann said it was like an electronic version of the Salvation Army bell ringers – you drop a little money in, but you don’t really think about the needs. Elle wondered how the checkout personnel feel in the campaigns where they have to ask, “Do you want to give a dollar to….?” She wants to follow-up with her friends who work in retail because she is concerned that they might develop negative attitudes to charitable giving in general through a requirement of their jobs. Lia pointed out that people who do not like this kind of request might go shop elsewhere. I suspect there are no studies about that unintended consequence.

Our daughters thought that if someone acted on impulse, that was better than not giving, but it would be even better if they acted from principle, from knowing that giving was the right thing to do. Without coaching from me, these 15- and 17-year olds differentiated giving motives identified by Rene Bekkers and Mark Wilhelm in a very well-done study of motives. Basically, empathy is good but the “principle of care” is fundamental to helping others.

As for us, we picked up the card at the market to give to the food pantry, but we did not add a dollar for the local children’s hospital or funding for homeless pets. Basically, we used micro-gifts to support causes that we already support. I wonder how many others do the same.

Monday, May 23, 2011

One potato, two potato

Counting rhymes help determine who is “it” or whether to eat the apple chunk or the pear slice in the fruit salad, but they are not much help in deciding where to give charitable contributions. Because we think it is important to give intentionally, our three daughters started early to learn how and why to give.

The year Ann and Elle turned seven, adults in my extended family decided to give to charity instead of exchanging holiday gifts. We involved the girls, too: each could pick a charity, and we would give $25 to it. How do you help a seven-year old (or five–year old, as Lia was) pick a charity?

We played a game like Twenty Questions, turning it into a grade-school level, secular discernment process. First query: “Do you want to help people, nature, or animals?” Ann wanted to help people, Elle was interested in nature, and Lia said animals.

So we asked, “Do you want to help a group you belong to or a different group?” Here or somewhere else in the world? Something new that is being tested or an activity that people already know works? And so on.

Ann picked helping people who need food, starting our long-term commitment to Gleaners Food Bank. Elle selected the Nature Conservancy. For Lia’s preference to help horses, I checked GuideStar.org to find an organization that also met parental expectations for accountability. This led us to Days End Farm Horse Rescue in Maryland.

We gave our children choices about their giving early, and our money has followed. Now, even their own money follows, showing perhaps a little success from our methods. But our money still keeps following their giving preferences, and the process is not confined to December.

This week, as the academic year winds down, we have made a pledge to the Gay Straight Alliance, which advocates respect and tolerance. The local chapter just elected Lia as an officer for next year, so we want to show support for the social justice mission of this high school program.

We are also writing checks for the twins’ fundraising as part of the 24-hour Relay For Life to benefit the American Cancer Society. This engagement stems from multiple motivations—memorial and tribute purposes to honor people we know, plus a desire to bring about change so fewer children die. But also note that Ann and Elle will accrue hours toward community service, which is required for their academic program. This last is important for why we are supporting this cause right now.

Would we give to this organization at the beginning of summer, when my husband’s academic pay stops for two months, if our children were not involved? Probably not.

Our gift is one of millions, so it even though we give a little, it adds up. Yet, we are giving up something else to do this.

In the end, we decided that giving matters as an example, because of the good it can do, and because it forces us to consider our choices and how we express our values on a day-to-day basis. We can find flowers on sale later to fill the window boxes, but we will not have the same chance to be part of our children's promise to their team mates and themselves to do something good.

Wednesday, May 18, 2011

Baa baa black sheep, have you any wool?

Three bags full…..that’s what we’ve been asked for — bags of food, clothing, and money. To paraphrase lyrics from Smash Mouth’s “All Star” — the requests start coming, and they don’t stop coming.

We cannot give to everything, so we have to choose. In the spirit of blogs that share the path to happiness, how to be a better (or at least different) parent, or even how to write a blog, this blog is about how and why this family makes choices about charitable giving and volunteering. Not that we are especially important donors, but that thinking about the process, and sharing some of those thoughts, will have benefits for us and maybe for you.

First some background. Our five-person household is one of the two-thirds of U.S. households that give to charity in a year. Some of us are also in the roughly one-third of individuals in the U.S. who volunteer in a year. Plus, more than ten years ago, my extended family decided to stop exchanging holiday gifts and give money to charities instead. As further incentive to reflect on our giving, both my spouse and I are affiliated with the Center on Philanthropy at Indiana University. Perhaps more than many, we discuss the how and why of charitable giving at dinner, during “car time” with the kids, and even long-distance with our parents and siblings.

Now, back to those bags. This past week, after sorting the many appeals received, it took no effort to decide to clean the pantry and fill the plastic grocery bag for the Letter Carriers’food drive and sort through a closet to pack a parcel of clothing for Goodwill. These “gifts” cost us only a few minutes of time. These donations are also consistent with our on-going commitments to local organizations that meet basic needs.

The tough choice comes with the request to give money for homeless services provided by Volunteers of America. The appeal is clever, with the letter printed on a lunch-size paper sack folded as a “self-mailer.” The bag itself contains some printed information and a gift form and envelope. I like clever, so I am tempted to give to reward creativity.

However, this charity would be a new one for us—and that doesn’t work just now, as my business just begins. Further, except for tossing a little into Salvation Army red kettles in December, I feel like a traitor supporting homelessness services other than the Homeless Initiative Program, where I worked in the late 1990s.

We also very seldom respond to direct mail (or email) or telephone appeals. Even a clever appeal asks for an emotional response, rather than an intentional commitment to an organization whose work we’ve checked out (or know first-hand).

So, we gave two bags full, not three, to our household’s priorities for the most fundamental of needs on Maslow’s hierarchy: food and shelter. For now, we’ve set aside about a dozen other appeals received to consider someday soon. And the requests keep coming--there were six more in today's mail.