Dear Charity Clairity,

We’re planning a fundraising event and want to make sure it actually raises money — not just attendance or awareness. We keep seeing so many different “fundraising event ideas,” but we’re not sure how to choose the right one or what really matters most in making an event successful.

What actually makes the difference between an event that raises meaningful money and one that doesn’t?

— Trying to Do This Right

Dear Trying,

Kudos to you for asking the right question, and doing so before it’s too late in the process!

You’re already ahead of too many organizations who begin with the format — gala, walk, auction, dinner, online campaign — and then move quickly into logistics — venue, catering, ticket price, program flow — before stepping back to ask what you’ve just asked.

And you’re also right to be cautious.

Because here’s something not talked about nearly enough:

Fundraising events are one of the most expensive and labor-intensive strategies nonprofits undertake.

They require significant investments of:

• Staff time
• Volunteer energy
• Upfront cash
• Opportunity cost (what else you could be doing instead)

Which means the real question isn’t just “How do we plan a successful event?”

It’s: “Is this event likely to produce a return — financial and relational — that justifies the investment?”

Start with a clear-eyed cost/benefit analysis

Before you go too far down the planning path, be sure the bang is worth your buck.

Take a step back and ask: What will this really cost us, and what is the realistic return?

Not just in dollars, but in:

• Staff bandwidth, and potential burnout
• Volunteer effort, and how it may dilute their attention
• Donor attention, and whether you’re trading ticket purchases for pure donations
• Other opportunities you may be foregoing

Events can absolutely be worthwhile. But compared to other fundraising strategies, they are rarely the most efficient way to raise money — unless they are designed with intention and the understanding they are part of a continuum of layered, complementary strategies.

If the primary outcome is simply getting people in a room, you may find you’ve invested heavily for a modest return.

Cover your costs before you count your revenue

One of the most important ways to improve your odds of success is to separate cost recovery from fundraising.

In other words: aim to cover your expenses before the event takes place.

This is where sponsorships and underwriting come in.

Think about:

• Sponsors to underwrite the overall event
• Underwriters for specific elements (e.g., reception, dinner, program, video, print materials)
• Leadership or challenge gifts that help offset costs

I’ve seen events transform financially with this one shift. Several organizations I’ve worked with secured a handful of sponsors to cover nearly all their fixed expenses. That meant every ticket sold, every auction bid, and every gift made that night went directly to the mission — not to paying off the party expenses.

That’s a very different outcome than ending the evening hoping you at least broke even.

Be intentional about who you’re bringing into the room

Not all audiences carry the same long-term fundraising potential.

So before finalizing your guest list — or your strategy for filling the room — ask:

Who are we trying to engage, and what might they do after this event?

Strong events are built around audiences with potential to:

• Increase their giving
• Become recurring donors
• Introduce others to your organization
• Deepen their involvement over time

If your room is filled primarily with people who already give at their maximum level, attend out of obligation, or have little connection to your mission — your ability to grow revenue will be limited.

On the other hand, when you intentionally cultivate a mix of loyal supporters, new promising prospects, and engaged connectors (table hosts, ambassadors), you create the conditions for both immediate and future giving.

Create mission moments that truly move people

People don’t give because they attended an event.

They give because something they experienced there made them want to help.

At some point during your event, you need to bring everything back to:

• Why your work matters (vision, mission, and values)
• Who it impacts (population and/or problem to be addressed)
• What is possible with support (specific impacts)
• When this support is needed (urgency)

This is not the time or place for broad overviews or long speeches.

It’s the time for something real, specific, and emotional:

• A story
• A voice
• A moment people can connect with emotionally

This could take many forms. For example:

• A short video featuring a beneficiary or volunteer
• A live story shared by someone directly impacted by your work
• Storyboards or photo displays placed thoughtfully throughout the venue
• Opportunities for guests to meet and interact with beneficiaries or program leaders during the reception or at their tables

What matters most is authenticity. People should feel like they’re encountering something genuine — not a performance, but a window into your mission.

And just as importantly, these moments need the right conditions: no distractions, no competing activity, and a clear signal that this moment matters.

When people feel something real — hope, empathy, inspiration, even urgency — they become far more open to giving.

Give people ways to act while they’re feeling inspired

In fundraising, timing matters.

If someone feels moved but has no immediate way to act, that energy dissipates quickly.

That’s why strong events don’t rely on a single way to give. They offer multiple, intentional pathways for people to respond in the moment:

• A fund-a-need paddle raise tied directly to your mission (e.g., “Let’s raise money tonight for a new food pantry!”)
• A thoughtfully curated silent auction, including several fund-a-need items (e.g., $25 buys dinner for a family of four; $50 buys a bag of groceries for a week; $100 delivers nutritious meals to seniors)
• A simple raffle
• Interactive elements like a wine wall or similar fun activity
• A “spontaneous offer” to buy a lunch or dinner with someone who just spoke or was featured in your video

These aren’t just add-ons. They’re extensions of the emotional experience.

The key is alignment and restraint. Choose the elements that fit your audience and reinforce your message. Too many activities can feel scattered. A few well-executed opportunities will almost always outperform a crowded agenda.

Plan your follow-up before the event even happens

Finally, remember this: the event is not the end of your fundraising. In many ways, it’s the beginning.

What you do in the hours, days, and weeks after your event will determine whether the value of everything you invested — time, talent, and treasure — continues to grow or quickly fades.

Plan in advance for:

• Prompt, personal thank-you outreach
• Clear communication of results and impact
• Invitations to stay engaged (give, volunteer, learn more, attend again)

The goal is to carry forward the feelings people experienced, and give them a way to act again.

Because events that truly raise money don’t do so only in the moment. The memories and emotions they create continue to motivate generosity long afterward.

So, what makes the difference?

It’s not choosing the “right” fundraising event idea.

It’s building the conditions where people naturally want to give — not just today, but tomorrow and beyond.

When you:

• Go in with a clear understanding of cost vs. return
• Cover your expenses up front
• Bring the right people into the room
• Move them with a meaningful mission moment
• Give them ways to act while they’re inspired
• And follow up in a way that deepens the relationship

…you dramatically increase the likelihood your event will be worth the investment.

That’s how events move from being costly obligations to becoming powerful engines for both immediate and lasting support.

Events that raise money don’t do so only in the moment. The memories and feelings they engendered continue to motivate generosity long afterwards.

So, keep trying. In fundraising, nothing is ever “a wrap!”

— Charity Clairity

The post How to Plan a Fundraising Event That Actually Raises Money appeared first on Bloomerang.

With an expensive Live Auction item, how do you get multiple people to bid together on one item they will enjoy together? For example, the item may be an Aruba trip in a 3-bedroom condo.

– Don’t Want to Waste Best Items

Dear Don’t Want to Waste,

Kudos for planning ahead to maximize the revenue you receive from the auction items you worked so hard to secure. It can be frustrating and demoralizing (both for the folks who solicited the items and the folks who donated them) when items don’t fetch top value.

But, many charities may not have constituents capable of making the types of bids that would cover the full value of, say, a $7,500 vacation. Or, perhaps they are capable, but haven’t been paying attention or are not particularly interested. Part of your job is to capture bidder attention.

Pique bidders’ interest early and often

Underlying your question is this truth: Most people don’t make spur of the moment “big purchase” decisions. If the night of the auction is the first time they’re presented with an opportunity to buy a big trip (or any other big-ticket item), they just won’t be ready to come to this decision. Here’s how to help bidders get over the decision-making hump – before and during the auction.

Make bidding easily approachable

Selling a trip can be tricky. Aside from the price, most Americans don’t have a lot of vacation time. They may be skeptical the opportunity you’re offering is worth their investment. They think about not just the immediate cost, but also the lost opportunity cost (in other words, other possible places to which they could have traveled).

Make the opportunity sound “one-of-a-kind” wonderful

Spend some time crafting an enticing description of the item. Use strong verbs and adjectives (e.g., indulge, discover, explore, savor, escape, luxurious, exclusive, handcrafted, limited-edition, award-winning). If it’s been donated by one of your donors, learn what’s unique about the property and destination so you can promote it on your website, social media and pre-event emails. Perhaps it’s only available once annually. Or it comes with housekeeping, an add-on chef and use of a car. Or it’s the only property in the area with a private plunge pool, hot tub and direct beach access.

Explain a bit about the location and sights

Emphasize moments, not just logistics. You might talk about what the donors have suggested the winner will want to do there. “Rent a car so you can go explore these amazing locations.” “It’s 10 minutes from the airport. You’ll be on the beach, in the sand, in just a flash.” “The famed Sunday market in town is a stroll away – a great place for fresh produce and local art.”

Make it sound easy as pie to get there

Use a map in your pre-event messaging, and on poster boards and slide shows at the event. “This is where Aruba is located. There are direct flights from several local airports, including X, Y and Z. You can easily take a day trip to…”

Prepare your auctioneer with some extra content tidbits

For example, you can check YouTube videos and online travel platforms to offer up some facts about native flora and fauna, traditional food, local shopping and other alluring details that paint a picture bidders will want to enter into. “And, they also have the most amazing scuba diving where you can go to see fish you won’t see anyplace else!” “They have a 3-star Michelin restaurant that’s a destination on its own!”

Use your auction committee to plant the seeds – for donations and purchases

The best auctions have the advantage of a great volunteer committee behind them. Make your committee large enough you have plenty of folks who can both offer and solicit items. Be sure to hold several brainstorming sessions in advance of the event so members can piggyback ideas off of one another.

Brainstorm items

A successful auction is all about having items that will (1) fetch a good price, and (2) resonate with your particular audience. For silent auctions, restaurants, wine, theater and sports events tend to do well. But for live auctions, your items should be something it would be hard to purchase anyplace else. Experiences do the best: a spectacular vacation property; dinner for 8 cooked by a celebrity chef; box seats for the World Series; the opportunity to conduct the local symphony, and so forth.

I can recall a meeting where one committee member suggested she could donate a meal cooked in-home by her private chef. Then two other members said they could offer the same thing! This was followed by another member offering up a flight on their private jet! Who knew?

Brainstorm selling ideas

Spend some time spit-balling how you’ll entice bidders. This is where you might bring up the notion of several bidders joining together on an item. It’s possible several committee members who are friends may jump on this idea. Or they may have friends or family members to pitch it to. The key is to get potential bidders thinking about this in advance, so they have a plan for the night of the auction.

Marketing strategies to prepare your guests for bidding

1. Email marketing

Rather than linking to all items simultaneously, big ticket marketing works best when you highlight live auction items individually. Use an enticing subject line to inspire opens (e.g., “Enjoy a once-in-a-lifetime getaway.”). Link to your amazing description with pictures, testimonials, and even a video. You can even suggest: “This would be perfect for a family or friends getaway!”

2. Social media works

Storytelling is the best approach. For example, you can tell how excited you are to have just secured the exclusive summer home of Mr. and Mrs. Generous, who are offering up their amazing (“and this is what you have to look forward to”) Aruba condo. The more you do in advance, the more time interested folks have to talk their friends and family into joining them!

3. Event displays and descriptions

Use poster boards, or an interactive video screen, with a sensuous description and images. This also serves as entertainment for guests. Make sure you also have a printed program or handout. Different sources suggest items sell for 30% to 50% more when there are written descriptions at your tables. When people can see, hear, feel, taste and touch the item, it helps them trust they are making a good decision to bid on it.

4. Video on stage

During the selling process, it helps when folks can visually imagine themselves on the beach, at the pool, or sitting around the firepit. It gets them to care, so they’ll want to bid more – and continue bidding until they win!

Hopefully this will help you not waste all the benefits your item has to offer!

P.S. See more about What Elevates A Live Auction From Good To Great?

– Charity Clairity

The post How to Encourage Group Bidding on Expensive Nonprofit Auction Items? appeared first on Bloomerang.

I’ve been working in annual giving and have recently been asked to help us diversify our funding by applying for grants. We have a handful of foundation funders currently. I need to reach out to them for renewed or increased support, and also find us at least as many new supporters. I’m starting to research funders, but am really not sure what a realistic ask amount might be for any of them. I could use a few pointers!

— Feeling at Sea

Dear Feeling at Sea,

It’s definitely scary when you’re dumped in the deep end without having first been given swim lessons! So, let’s go back to the shallow end for a minute and start at the beginning.

What to consider when asking for a nonprofit grant

The realistic ask amount depends on a number of factors, including the prospective funder’s mission, giving history, current giving focus and capacity, and your own organization’s relationships and past history with grant seeking and reporting.

Your organization’s grant history

If you have a history of receiving grants, and a reputation for excellent reporting and follow-through, you’ll be in a position to ask for more than if you’re a newbie.

Why? Because the foundation of grantmaking, and all philanthropic relationships, is trust. Foundations talk to one another. If you submit a proposal to Foundation C, and they see you’ve been funded in the past by Foundations A and B, they’re likely to contact A and B to find out a bit about their experience with you.

Your current funders can serve as “social proof” that you’re a good investment.

But what if you have little grant history?

Your organization’s community relationships

Your lay leaders can also offer social proof and put in a good word for you.

That’s why it’s useful to send a list of funders to whom you’d like to apply, complete with names of foundation staff leadership and trustees, to all your board members. Ask them to indicate if they know anyone on the list–and whether they’d be willing to reach out on your behalf.

Fruitful fundraising relies heavily on relationships and, when you have one, you’ve got a stronger likelihood of success.

But you can’t capitalize on relationships unless you know they exist! So, make it your business to find out.

The cost of the project for which you’re applying

Begin with clarity on your needs.

Sit down with program staff and interview them about everything that will be required–direct and indirect costs. Management, line staff, administrative support, supplies, travel expenses, and marketing, rent, utilities, insurance–you name it. Always include a percentage for overhead. It makes no sense to ask for less than you realistically need.

Sit down with finance staff for help crafting a budget. The budget is a microcosm of the entire proposal. In fact, often, the budget is the first thing a funder will look at in evaluating your proposal.

Generally, budget line items should include:

• Your project’s direct and indirect expenses
• How much you’re asking from this funder
• How much you’re asking from other funders
• Where the balance, if any, will come from (e.g., fundraising from individuals; earned income)

NOTE: After you get the hang of this, you can develop a template budget (including all the usual categories that constitute line items for you)–obviating the need to sit down with finance staff every time.

A budget narrative can be helpful in explaining each line item.

It also helps you to make sure your numbers add up (nothing will destroy credibility faster than a sloppy budget). For example, for travel expenses, add a note describing specific travel needs and costs; for staff, show the FTE multiplied by the hourly wage and hours worked. Besides checking and double-checking your math, you’ll also want to include a paragraph explaining how you’ll sustain this project once you no longer have foundation funding.

Your alignment with the funder’s mission and priorities

Most funders are quite explicit in their guidelines about what they’ll fund and won’t fund. You can also take a look at funders’ Form 990-PFs which give complete lists of grants awarded, including recipient names and amounts. Don’t rely completely on the past however, as priorities change.

When you send a misaligned proposal (either purpose or size), you undermine your credibility – both now and for the future.

So, be careful. If you have any doubts, place a phone call to the funder so you can talk out whether or not there is a good match. Funders are, after all, just people. Many will appreciate the fact you’re doing your homework. [Just don’t call them if they plainly state “no phone calls.”]

Hopefully these tips will help get a handle on next steps, so you find your land legs!

–Charity Clairity

The post How To Make a Realistic, Successful Nonprofit Grant Request? appeared first on Bloomerang.

Dear Charity Clairity,

For sustaining donors (monthly), I send a quarterly thank you. Is that sufficient? Do you have a better idea?

— Balancing Priorities

Dear Balancing Priorities,

Let us begin with something I truly believe: You can never thank donors too much.

Yes, it’s work. But the effort is well worth the investment. Because donors who feel appreciated give more and more often.

But, wait. You say these folks are already giving more often? True. But… they’re free to stop at any time. They’re also free to make a larger commitment at any time. That’s what you really hope for. Because a $50/month donor ($600/year) can easily become a $60 donor ($720) without batting an eye. If you have 100 donors doing this, you’ll generate an additional $7200. 1,000 donors? $72,000. That’s so much easier than trying to get one or two major donors to give you this sum.

So, yes, it’s work to thank a little bit more often. Yet it’s one of the most surefire ways I know to increase donor lifetime value.

A thank you is an opportunity to connect meaningfully

Why not reframe your approach from “chore” to “opportunity?” Researcher Penelope Burk has worked over two decades in assessing what donors want, and a prompt, personal, outcome-focused thank you is at the top of the list. In a Burk Donor Survey, 40% of respondents said they had received at least one thank-you letter in recent memory they would describe as exceptional. Its “warm, personal tone making the letter feel like it was written just for me” was cited most often.

• 45% of donors said it was an outstanding thank-you letter that inspired them to give again.
• 23% said they gave more generously because of the quality of the acknowledgement they received.

If your modus operandi is calculating how little you can get away with when it comes to donor acknowledgements, you’re missing the boat.  You’ll still have the original pledge, but you’re unlikely to get an upgrade or legacy commitment.

On top of that, your donors just won’t feel as good as they could. And isn’t part of the social benefit sector’s mission to spread joy – thereby making our world, and the people in it, just a little bit happier?  As the “Father” of modern fundraising, Hank Rosso, is famous for saying:

“Fundraising is the gentle art of teaching the joy of giving.”

Let’s talk a bit about simple ways to leverage the thank-you process to inspire greater happiness and loyalty.

6 keys to effectively thank monthly donors

There is a HUGE difference between thank you’s that fulfill the requirement of acknowledging gifts and thank you’s that inspire donor love and devotion. Don’t forget: monthly donors are some of your best bets for legacy gifts. So, keeping them committed and identified with your cause is tremendously important.

1. Flatter your donor.

People respond to compliments; in fact, they crave them. “You are amazing.” “You made this happen.” Flattery is a gift. When you help people feel appreciated and loved, you help them attain the highest goal to which most people aspire in their search for meaning.

2. Lean on impactful visuals.

A picture, indeed, is worth 1,000 words. Close-ups with captions work wonders. Here are two examples from Vida Joven, which sends something brief (it doesn’t need to take even an hour of your time) every month:

3. Focus on the outcome.

Put this together with the wonderful qualities the donor possesses (e.g., vision, insight, caring, understanding, generosity, compassion, remembrance). “Jimmy will go to bed with a full tummy tonight – because you cared.” “You remembered – because Gloria couldn’t.”

4. Stand out!

It’s critical your donor perceives they are being thanked. Don’t add in an ask. Don’t go on and on with your organization’s case for support – which can make your communication sound like another pitch. Keep it simple. Heartfelt. Pure gratitude.

5. Close warmly.

“Sincerely” is a bit formal and does nothing to build a relationship. A thank you letter is a place to gush a little. Instead, try something heartfelt or mission related: “In gratitude,;” “Warmly,;” “With appreciation and admiration,;” “For the love of theater,;” “In celebration of you,;” “From the bottom of my heart,” etc. Here’s another Vida Joven example:

6. Add a targeted, personal touch.

For those who give a gift that’s above your average, it’s worth acknowledging this special commitment with an “above average” thank you. After all, you probably thank donors of $1,000 differently than donors who give $100 or less, right? A $100/month ($1,200/year) donor should be treated similarly. Pick up the phone! [ Grab my free “Donor Thank You Calls E-Book + Script.”] Leave a pure gratitude voicemail if you don’t reach them. Send a personalized thank-you text or video. And make sure, when sending a newsletter or connecting in person, you offer opportunities for donors to get involved in other ways than just giving. Make them feel valued as people, not just wallets, and they’ll value you as well.

Bottom line: you’ve already done the hard part

One of the least acknowledged benefits of monthly giving programs, from the donor perspective, is that giving more frequently in smaller amounts can give your donor a recurring pleasure high.

This is a great argument for a monthly giving program as a way to offer donors greater rewards. Lean into it!  Think of “recurring gifts” as a two-way street. They keep giving AND you keep giving.

They’re doing it monthly. Maybe you should too?

Hope this seems like a balanced approach,

— Charity Clairity (Please use a pseudonym if you prefer to be anonymous when you submit your own question, like “Balancing Priorities” did.)

How often does your organization thank monthly donors? Let us know in the comments.

The post What’s the Best Way to Thank Monthly Donors? appeared first on Bloomerang.

We’re revamping our giving levels and rethinking the “perks” donors receive at different tiers—beyond a name on the website or in the program guide.

Here’s where I’m getting stuck (at least in my head): how do we handle tax deductibility when benefits get more experiential?

For example, we’re considering things like a 15% discount on festival and year-round ticketing (with an obviously unknown value), or a set number of free tickets (when ticket prices vary). I know the old rule of thumb used to be that benefits under $75 could be ignored—but it looks like the rules have changed.

Most of our giving levels would start at $1,000. Could offering a 15% discount on tickets throughout the year fall under the “insubstantial benefit” rule?

— Tax Deduction Confused

Dear Tax Deduction Confused,

You’re asking exactly the right questions. As nonprofits get more thoughtful (and creative!) about donor experiences, tax deductibility can feel like a maze.

Let’s break it down—starting with the basics, then getting into how tickets and discounts fit into the picture.

Quid pro quo rules: the basics

If a donor receives anything of value in return for their contribution—event tickets, discounts, gifts—the fair market value (FMV) of those benefits must be subtracted from the donation to determine the tax-deductible portion.

• The donor must be told the FMV of the benefits they receive.
• The nonprofit must disclose this information in the solicitation or acknowledgment.

Typically, this looks like: “Your donation of $X is tax-deductible to the extent it exceeds the fair market value of the benefits received, which we estimate at $Y.”

Where the $75 rule really fits

This is one of the most misunderstood parts of the tax code.

The $75 rule doesn’t mean benefits under $75 can be ignored. Instead, it means that if a donor gives more than $75 and receives something in return, the nonprofit is required to provide a disclosure statement showing:

• The value of the benefit
• The deductible portion of the gift

In other words, it triggers a disclosure requirement—it doesn’t eliminate the need to value benefits.

The de minimis (token exception) rule

There is a separate token exception for benefits of insubstantial value (IRS Rev. Proc. 90-12).

Under current IRS guidance, a benefit may be considered insubstantial—and the full gift deductible—if:

• The value of the benefit is the lesser of 2% of the donation or $125, and
• The cost of the benefit to the organization is less than $12.50

This typically applies to logo items (mugs, totes, calendars) or front-end premiums like address labels—not tickets or discounts, which usually have a measurable market value.

Special cases: tickets, discounts, and variable value

This is where things get more nuanced.

1. Free Tickets (with varying prices)

You’ll need to assign a reasonable FMV, even if prices fluctuate. Many organizations use the average ticket price or the highest general admission price.

If a giving level includes “two free tickets,” that value must be subtracted from the donation total—unless the donor waives the benefit in writing.

2. Percentage Discounts (like 15% off tickets)

Discounts are tricky because the value isn’t fixed. You’ll need to estimate the maximum reasonable benefit a donor could receive.

For example:

• Four $25 tickets = $100
• 15% discount = $15 benefit
• Multiply by how often the discount could reasonably be used in a year

You can be conservative—but you must be reasonable.

How to stay donor-friendly (and IRS-friendly)

1. Keep benefits within “insubstantial” limits

For a $1,000 gift, 2% equals $20. If the estimated FMV of a discount exceeds that amount, the gift is not fully deductible.

Discounts also scale quickly. For example, if tickets are $25 and a donor buys six tickets in a year, a 15% discount equals $22.50—already over the 2% threshold.

And remember: discounts are not token gifts. They represent real, recurring financial value.

2. Limit the scope of discounts

A year-round 15% discount will almost always exceed de minimis limits unless tightly restricted.

Instead, consider options like:

• “Up to four discounted tickets annually”
• “Valid for one festival event”
• “One-time 15% discount code”

This preserves the feeling of a perk while keeping the FMV manageable.

3. Allow donors to waive benefits

If donors can waive benefits in writing, their gift may remain fully deductible. Be sure this option is clearly communicated—otherwise, the IRS assumes the donor received value simply by having access to the benefit.

4. Separate perks from donations through membership

Many museums and zoos use a membership model. Under IRS rules, certain recurring benefits may be considered insubstantial if:

• The annual payment is $75 or less, and
• The benefits include things like discounted admission, gift shop discounts, or member-only events, with per-person costs within token limits

This approach can offer flexibility while keeping compliance clear.

And if this still feels confusing (you’re not alone), it’s always wise to consult a nonprofit-savvy attorney or CPA.

— Charity Clairity

The post Are Fundraising Ticket Perks Tax Deductible? appeared first on Bloomerang.

Dear Charity Clairity,
Our board doesn’t want to “fundraise” because they think asking is icky. What are some ways to get them involved that don’t (yet) involve asking, but that warm them up to the idea donors actually LIKE our organization and APPRECIATE the opportunity to get more engaged. I’ve been telling them this, but they don’t seem to believe me. Do you have any actionable tips for board members – like assignments I might make — that wouldn’t make them run for the hills?

— They Just Won’t Fundraise

Dear “They Just Won’t Fundraise,”

You’re not alone. “Our board won’t help” is easily one of the top three frustrations we hear from fundraisers and executive directors.

Here’s the plot twist: the number one complaint we hear from board members is, “Staff never give us anything to do.”

That’s a pretty big disconnect—especially when it comes to one of the most essential responsibilities of a board: making sure the organization has the resources it needs to fulfill its mission.

Like you, we talk about this all the time. (And yes, we’ve written about it here, here, and here.) Yet somehow, the gap between staff and boards persists.

So where does the disconnect begin?

We’ll be honest—it usually starts with staff.

In our very human attempt to be “nice” during board recruitment, we often skip the hard but necessary conversations. The result? Board members who care deeply about the mission, but aren’t prepared for their fiduciary role—especially when it comes to fundraising.

So let’s pause and ask:

1. Do you talk openly about fundraising responsibilities during the recruitment process?
2. Is fundraising included in your board member job descriptions?
3. Does your board orientation session clearly cover their role in fund development?
4. Do you offer ongoing board development to help members serve as ambassadors, advocates, and—eventually—askers?
5. Are you providing the encouragement, clarity, and cheerleading they need along the way?

Why are board members so afraid of fundraising?

Most people are afraid of asking.

To many board members, it feels like begging—and that’s uncomfortable. Add to that our cultural reluctance to talk about money at all, and suddenly “fundraising” becomes the thing they’ll avoid at all costs.

They’ll gladly help in a hundred other ways—just not with that “yucky” word that starts with fund.

What’s often missing is this simple truth: fundraising isn’t just asking. It’s a relationship-driven process that includes identifying supporters, nurturing connections, stewarding generosity, and yes—sometimes inviting someone to give.

The key is to start with what feels natural and build confidence from there.

How to take the “yuck” out of fundraising

First: Try reframing it.

What if, instead of “fundraising,” we talked about philanthropy facilitation? Same goal. Very different feeling. It replaces the dreaded four-letter word with something far more meaningful: philos + anthropy—love of humanity.

Next: Give board members options.

Create a menu of specific ambassador and advocate roles they can choose from. Ask them to indicate what they’re comfortable doing, then meet one-on-one to assign roles, answer questions, and set them up for success.

Here are a few easy, confidence-building ways board members can get involved:

1. Say thank you.
   Writing notes, sending emails, signing letters, or making gratitude calls (even leaving a warm voicemail) helps board members connect with supporters—and experience the joy of appreciation firsthand.
2. Open doors.
   Board members can introduce people from their networks who might be a good fit, often by helping schedule a friendly visit with the executive director or another leader.
3. Add personal notes.
   One of the simplest, most meaningful tasks: reviewing a donor list, flagging familiar names, and adding a handwritten note to an appeal, invitation, or thank-you.
4. Guide a tour.
   If you have a space people love to see—backstage, a campus, a pantry, a preserve—this is a no-pressure way to welcome supporters and share impact.
5. Bring a guest.
   Inviting friends to an event or tour is a powerful act of advocacy. It feels good, personal, and generous—because it is.
6. Host a house party.
   These gatherings harness the power of social proof. The board member becomes a trusted advocate, and guests get an up-close look at the mission—through stories, experiences, and human connection.

Finally: Check in.

This isn’t their day job. Don’t assume tasks will magically happen without a nudge or two. Ongoing encouragement and clarity go a long way.

Here’s the good news: board members will fundraise when they understand their options, feel supported, and aren’t forced into roles that don’t fit.

Your job isn’t to strong-arm them—it’s to help them feel good about helping.

When board members facilitate generosity, they’re not asking for money. They’re offering people the chance to do something meaningful, aligned with their values, and deeply human.

That’s not yucky. That’s joyful.

— Charity Clairity

The post How Do You Get Board Members to “Fundraise”? appeared first on Bloomerang.

Dear Charity Clairity,

What separates the “okay” live auction fundraisers from the great? Is it the auction items themselves? Or something like the food, speakers, or something else?

— Seeking the Secret Sauce

Dear Seeking,

Many people assume a standout live auction is all about landing the right big-ticket items. But in reality, the difference between an “okay” auction and a great one rarely comes down to any single component. The real secret is planning, planning, planning — thoughtfully designing every element well in advance so they reinforce one another and build toward a cohesive, high-energy experience. When an event is carefully orchestrated from start to finish, the whole becomes far greater than the sum of its parts. Items matter, yes. But their impact depends on the emotional arc, pacing, mission moments, and energy you’ve set up long before the auctioneer takes the stage.

The real driver: energy and engagement

The biggest difference between a mediocre auction and a great one is something you can’t put on a spreadsheet: the energy in the room. Great planning creates the conditions for that energy to build and stay high. This will dictate the final numbers far more than the specific prizes up for bid. A moderately appealing package can spark spirited competition when the room is buzzing; conversely, even a dazzling trip or once-in-a-lifetime experience can fall flat if the energy is low.

This emotional temperature is shaped long before the auctioneer hits the stage. Guests are forming expectations and readiness to participate. Strong events start priming attendees early — with engaging preview materials, fun teases of the top items, a warm welcome at check-in, mingling at the reception, and well-placed “teaser” moments that plants anticipation. “Okay” auctions just hope guests arrive in a giving mood. Great ones nurture and shape that mood in advance.

The auction as theater: flow, pacing, and production

A live auction is fundamentally a theatrical performance. The auctioneer is the narrator, but the nonprofit is the producer. And great producers understand pacing, tension, and release. Three ingredients matter most:

1. Curate a tight list of items

The first auction I ever held as a fundraiser had so many items, the guests were either asleep by the end or were completely tuned out and talking to each other. Nothing saps energy faster than offering too many items. Once you pass about seven or eight, the room’s energy dips and bidders fatigue. Great live auctions are intentionally brief and punchy. Keep them to no more than one hour to keep people’s attention and energy high. If you’re adding the auction to an already existing event, keep the live auction component between 10 and 30 minutes. Choose every item to appeal to your specific audience, not to reflect what donors happen to give you. So, think about what might do well with your audience. A flight on a private jet might appeal to only one or two in your crowd, whereas a private meeting, consultation or behind-the-scenes visit with a VIP (e.g., a teacher, doctor, actor, sports figure, politician or financial wizard) might engender lively bidding and big bucks.

2. Sequence for momentum

Order matters. The opener sets the tone—something light and fun is ideal. Middle items should be your strongest, because that’s when attention peaks. And closing items should either be communal and joyful (like a dessert dash or group experience) or serve as a bridge to a Fund-a-Need. Great auctions feel like a rising arc, not a series of disconnected moments.

3. Treat production like an investment

Lighting, sound, and staging play an important role. Don’t wait until the last minute to think about them! Guests must be able to clearly hear the auctioneer, see the screens, and understand the bidding increments. A strong professional auctioneer who knows how to read the room is worth their fee ten times over. Don’t skimp here. I once ran an auction using a lovely volunteer who was great in rehearsal, then had too much to drink during the event. It was a disaster, with the crowds’ energy shifting to simply be embarrassed for her. A volunteer auctioneer almost never has the professionalism, rhythm, timing, or room-reading skill required. Just make sure to prepare them so they can simultaneously elevate competition while staying aligned with mission messaging.

Mission moments: the heartbeat of the event

One of your most powerful planning decisions is where, and how, to place your mission in the program flow. People bid more generously when they feel emotionally connected to the cause. A well-crafted mission moment (e.g., a short video, personal story, or brief speech from someone impacted) can transform bidding from a “fun purchase” into an opportunity to make a difference. And when timed correctly, it sets up a successful Fund-a-Need conclusion to your event. When the mission is centered, bidders feel proud of their generosity. And proud generosity fuels bidding wars.

Food, speakers, and ambience: the amplifiers

These supporting elements matter, as they either support or sabotage your carefully planned energy arc.

Food

You don’t need a Michelin-star menu, but you do need efficient service. Long gaps between courses, slow wine pours, or awkward table logistics can deaden energy and cool the temperature in the room. Your seating chart matters too. Put people together who will enjoy each other’s company.

Speakers

Short is powerful. Long, wandering remarks drain energy. Great events coach speakers to be concise, heartfelt, and mission-focused. Give speakers a time limit, and rehearse them beforehand.

Venue and layout

Too much distance from the stage, too many obstructed views, or a long, cavernous room dilutes engagement. Lighting that feels too bright or too dim shifts the emotional tone. Small details accumulate into big effects.

The whole is greater than the sum of its parts

When a live auction underperforms, the reasons are usually predictable:

• Too many items
• Weak program flow or poor timing
• Lack of emotional buildup
• Volunteer auctioneers instead of professionals
• Mission moments that fail to connect
• Technical or production issues
• Guests who aren’t primed for generosity

The most successful auctions work because someone took the time to intentionally choreograph the entire experience. The thoughtful integration of all these elements is the real secret sauce.

— Charity Clairity (Please use a pseudonym if you prefer to be anonymous when you submit your own question, like “Seeking the Secret Sauce” did.)

How does your organization elevate a live auction? Let us know in the comments.

The post What Elevates A Live Auction From Good To Great? appeared first on Bloomerang.

Dear Charity Clairity,

My son and I want to start a fundraiser for two cancer-related charities. We tried to have an actual fundraiser event but sadly it did not work out. I’d like to now just do an online donation drive. Ideally I’d like to use an app or service to hold the money until we’re ready to donate it directly to the organizations. How can we best achieve this?

— In the Dark

Dear In the Dark

There are several ways to go about this. Your choice somewhat depends upon (1) whether your donors want tax deductions and individual tax receipts, or (2) whether they’re content to simply give regardless of tax deductibility. Let’s look at the pros, cons, compliance considerations, and practical steps for setting up your fundraiser under both scenarios.

1. If your donors care about tax deductions

When donors want or expect tax-deductible receipts, you must route their contributions through a bona fide 501(c)(3) organization, and not through your personal bank account, PayPal, Venmo, or any pooled holding account — unless that account is legally owned by a charity. U.S. law is very specific:

• Only the organization that legally receives the donation can issue the receipt.
• Donations made to individuals are not tax-deductible, even if you later give the money to charity.

You have two strong options here: fiscal sponsorship or charity-hosted fundraising pages.

(1) Fiscal sponsorship: The easiest way to pool tax-deductible donations

If you want to collect donations in one place, tally a total, hold the funds temporarily, and then distribute them to two cancer nonprofits, fiscal sponsorship is the cleanest and most professional approach.

What is fiscal sponsorship?

A fiscal sponsor is an established 501(c)(3) that agrees to accept donations on behalf of a project (in this case, yours). They legally own the funds until they grant them to your chosen nonprofits. Many people think of fiscal sponsors as “nonprofit umbrellas” that extend their tax-exempt status to projects aligned with their mission.

How it works in practice

1. You apply to a sponsor or set up a simple agreement (Memorandum of Understanding).

2. The sponsor creates either:

• A dedicated project account, or
• A simple donation page for your fundraiser.

3. Donors give directly to the sponsor.

4. The sponsor handles receipts, accounting, and holding the funds.

5. When you’re ready, the sponsor grants the pooled funds to the two cancer organizations you’ve selected.

Why fiscal sponsorship works so well for multi-charity fundraisers

• Donors receive tax-deductible receipts right away, with no ambiguity.
• No funds pass through you personally, which avoids tax complications and builds trust.
• You can pool everything and present a unified fundraising total, something donors may appreciate.
• Sponsors are experienced at managing donor-designated gifts, reporting, and compliance.
• Your fundraiser appears more official, which can increase giving.

What it costs

Most fiscal sponsors charge a 5–10% administrative fee. This covers accounting, monitoring, and processing donations. The fee should be part of your written agreement.

Who offers fiscal sponsorship?

• Community foundations
• Nonprofits focused on health or social impact
• Organizations listed in the National Network of Fiscal Sponsors or the Fiscal Sponsor Directory

If you have a nonprofit you already support who you think may fit the bill, it’s a good idea to approach them first and see if they’d be amenable to serving as your sponsor. If you’re already a donor or volunteer there, they may agree to a minimum fee.

(2) Charity-hosted fundraising pages: A simple, direct, low-effort option

If your two chosen cancer-related nonprofits already use modern fundraising platforms, they may create peer-to-peer or team pages for you.

How this works

• Each nonprofit creates a special fundraising page for your campaign.
• You share the links with your community.
• Donors click the page corresponding to the charity they wish to support.
• The charity receives donations directly.
• The charity issues receipts automatically.

Pros

• No admin work for you beyond promotion.
• Donors get automatic receipts.
• You’re not handling money at all, eliminating compliance risks.
• Easy to set up if the nonprofit supports peer-to-peer campaigns.
• Automatic tracking of total raised per page — the platform shows the running total and progress toward goals.

Cons

• You cannot combine totals across two separate fundraising pages automatically; this must be done manually.
• The nonprofits must agree to create the pages—and not all will.

2. If your donors don’t care about tax deductions

If your donor base is small, personal, informal, or simply unconcerned about deductibility, you can gather contributions into a single shared account and later donate the total to the charities of your choice. Transparency is essential to protect trust. Donors must understand their gift is not tax-deductible because they are giving to you, not a charity. You, in turn, pledge to donate the pooled funds to charity.

Saving the pooled funds in a segregated account

Alas, there are no good apps of which I’m aware that will accomplish this for you. A start-up called Braid looked promising, but dissolved in 2023. GoFundMe is an option if you’re raising for a single charity, but will not work if you have multiple beneficiaries.

The only truly compliant option is a segregated personal bank account (or sub-account) dedicated to this purpose. This works for bookkeeping, but the responsibility and risk fall on you. This approach works when:

• Donors personally know and trust you.
• The campaign is small and informal.
• No one expects a tax receipt.
• You are transparent that the money flows through you.

Directly encourage donors to give to the charities on their own

Another low-complexity path is simply to encourage donors to give directly to each charity via each of their official websites.

• You provide donors with the two official donation links.
• Donors receive receipts directly from each organization.
• There are no administrative fees

The only downside is you cannot pool the donations into one gift. And if you care about reporting back to donors regarding how much you collectively raised, the only way to accomplish this is to ask donors to self-report the size of their donation so you can track total giving. Realistically, a lot of your donors will want to keep the size of their donations anonymous.

Which path should you take? A simple guide

If donors want tax deductions:

Best choice: Fiscal sponsorship

• Pools funds
• Keeps everything compliant
• Sponsor issues receipts
• Most professional-looking
• Slight administrative fee

Good Alternative: Charity-hosted fundraising pages

If a charity uses a P2P platform, and you create a personal fundraising page under their umbrella:

• All donations are made directly to the charity
• Donors receive their own tax receipts from the charity
• You get a visible tally of total money raised
• You never touch the funds
• You can easily show your progress toward a goal

If donors don’t need or care about tax deductions:

Best choice: Set up your own segregated bank account.

• Easy to set up
• Lets you pool collected funds so you can report back on the total to your donors
• No tax deduction (true either for donors or you personally, as money collected from others, ethically, is not your charitable gift

Final thoughts

Whether your donors prioritize tax deductions or simply want to support a meaningful cause with no fuss, you can choose a structure that fits the scale, tone, and goals of your fundraiser.

• If your priority is pooling the money and presenting a unified gift, fiscal sponsorship is the most flexible, credible, and compliant option.
• If your priority is simplicity, charity-hosted pages or a segregated bank account may work best.

Hopefully I’ve been able to shine a bit of a light so you’re no longer in the dark.

— Charity Clairity (Please use a pseudonym if you prefer to be anonymous when you submit your own question, like “In the Dark” did.)

Have you run an online fundraiser for multiple charities? Let us know in the comments.

The post What’s The Best Way To Run An Online Fundraiser For Multiple Charities? appeared first on Bloomerang.

Dear Charity Clairity,

Right now, I am signing and jotting a note on the acknowledgement letter for every gift made by a donor in my portfolio of roughly 1,500 donors of $1,000-$9,999, as well as prospects (event attendees/invitees, some non-donors, and others who’ve been identified through research as having good potential). These are all folks whom I am attempting to build relationships with to some degree. While I recognize it might be more effective for the signer to be someone higher up in the organization, we are all geographically spread out and, even if we weren’t, nobody else has the bandwidth to be signing these. We recently promoted someone to Senior Development Associate/Board Liaison, and I’m wondering if we could have them sign letters? This would be mostly for gifts below $1k, with the goal of giving these folks extra attention to bring them up to, and beyond the $1,000 level. 

— Too Many Letters to Sign

Dear Too Many Letters to Sign,

You note your goal is to build relationships.

And the strategy you’ve outlined towards achieving this outcome is signing and jotting personal notes on acknowledgements.

Let’s break this down.

• The goal is spot on.
• Your strategy of special, individual notes is terrific – a great starting point.
• Getting personal is key to building and sustaining relationships.

But whether this works effectively will depend on what else you do. As well as what others within your organization do. Because philanthropy facilitation is a team effort.

A team approach to the gratitude game.

Ideally, everyone is part of your culture of philanthropy. Sometimes, the task of instilling this culture falls to a visionary development staffer. It begins with encouraging team members to come from a place of “love of humanity” in all their interactions – extending this both internally and externally.

The key is playing to each individual’s strengths. When they get personal, they should do so through an expression of their unique selves.

So, before assigning donor-facing, relationship-building duties to anyone, consider where their strengths lie. Are they good with people? Do they listen well. Are they curious? Would any of these adjectives apply to them: empathic, kind, generous, creative, optimistic, inspiring, collaborative, resilient?

How donor relationships blossom.

If they don’t put their best, most authentic self into the relationship then it’s not really going to become a relationship.  It will simply be a transaction. Transactions end. Relationships bloom.

It’s a mistake to get fixated on a single task (signing; note jotting) lest it become a mere transaction. One you simply check of your list, before planning ahead for the follow-through moves and touches that will result in a transformative journey for the donor – and, hopefully, for your organization as well.

Okay, let’s get to the meat of your question.

Here are some strategies I’ve found effective for acknowledgements:

1. Prompt response. This means 48 hours for snail mail and instantaneous for email or texts sent in response to online gifts. Note, I consider this the “official” response that lets donors know their gift was received and appreciated (i.e., it didn’t go into a black hole). This does not mean a subsequent thank you, from someone else, might not be optimal (see below).

2. Handwritten signatures. Some people will actually lick their fingers to see if the ink smudges off. They want to know someone took the time to personally sign their letter. And, yes, the more important the better. Because sometimes people care that the head of the organization knows they gave.

3. Adding personal handwritten notes. These are MAGIC – so keep doing what you’re doing. To me, a thank you letter without a personal note is like a Hallmark card with nothing but a signature.  It simply looks like you couldn’t be bothered to even try to connect. They’re best when you can refer back to a recent communication or meeting with the donor to show them you know them (e.g., “Great to see you at the Gala,” “Hope your daughter is enjoying college!,” “Seen any good films lately?” or “Looking forward to our coffee!”). But even something simple like “Your dedication means a lot!” or “You are our hero!” work well. 

• The note can be written directly on the appeal letter itself, or
• On a little sticky note you affix to the top (visible when the recipient opens the appeal).

4. Adding more personal handwritten notes. Whatever you do, don’t cut back on these. You likely won’t have the bandwidth to write notes on every letter, but you can definitely do so where it’s likely to give you the biggest bang for your buck.  There are two places where I’d suggest you focus:

• Donors who’ve made above-average gifts to you in the past. First, figure out what the average gift was to your organization. Second, run a report of everyone who gave more than this amount. Might you be able to add notes to these folks’ appeals? You can have a volunteer or staff person do this. Just something simple like: “Thanks for your support. It means a lot!” “You make all the difference!” “Your generosity means the world to those who rely on our support.” What’s important is you begin with you and you put it in handwriting, so the donor feels special. Because you took the time to single them out.
  
• Donors who have connections to your board and committee members, other donors, and volunteers. People give to people, not organizations. So, if someone the recipient knows adds a personal note, they’ll automatically pay more attention. It’s a form of social proof, one of the key principles of influence espoused by Robert Cialdini. If someone else thinks your organization is worth supporting, then the recipient is likely to agree. For them, the note acts as a decision-making shortcut.

5. Added thank you phone call. (See below)

6. Additional thank you letter or note. (See below)

Here are some relationship-building ideas for you moving forward:

1. Continue signing acknowledgements and writing brief personal notes for everyone in your current portfolio. (I’m assuming it’s mid-level, and you have someone else handling major gifts) If you have too many folks to handle, hand some off to your new Senior Associate. If there are a few who would benefit from a note from your senior leadership, select these out and ask your staff or board members what they can realistically handle.

• You might consider having the letters signed by a senior leader, while you then add the personal, handwritten note. It could be something like “You rock! All of us here are so grateful for your meaningful support.” If you know the donor is close to your Executive, you might even write: “Monika asked me to let you know personally how much we all appreciate your support.”

2. Create a mid-level portfolio for your Associate (starting with donors from $500 – $999). Prioritize those who’ve made first-time gifts at this level (this is a significant initial commitment, so special treatment is warranted) and those for whom your research shows additional capacity.

3. Make prompt thank you phone calls to targeted donors. Yes, this adds to your workload. But, research shows it’s well worth it.

• BONUS: For folks on your list who should really get a letter from senior leadership, you can make the prompt call, letting them know they’ll receive their official thank you later. Do leave a quick message, letting them know how to contact you should they ever have any questions. It’s so nice when people feel they have “their person” with whom to connect!

Having too many letters to sign is a good problem! If you can hire folks to help you, great. If not, identify others on your team who may be the right fit for this sort of task. Then, allocate a portion of their time to what I like to call your “Donor Love and Loyalty” program.

Hopefully, these tips will help you make the case to allocate more resources to this magical relationship-building strategy.

— Charity Clairity (Please use a pseudonym if you prefer to be anonymous when you submit your own question, like “Too Many Letters to Sign” did.)

How does your organization navigate stock donations? Let us know in the comments.

The post What’s the best way to acknowledge gifts if you hope to use them to build donor relationships? appeared first on Bloomerang.

Dear Charity Clairity,

My boss is totally on my case to make our end-of-year appeal our best ever. I am tearing out my hair, because I’ve no idea what to do to make it better. I already follow all the rules I’ve learned from reading fundraising books and attending webinars. I feel I’m pretty on top of best practices. Do you have any special tips, based on real-life experience, that might help us tip the scales?

— Flummoxed Fundraiser

Dear Flummoxed Fundraiser,

I congratulate you on your openness to considering tactics you may not have previously contemplated. It’s important to be able to think both inside and outside the box. So, allow me to suggest a few outside things – based on my experience working in this field for four decades – that really pack a punch.

These winning tactics I’m recommending are not the letter itself. It’s possible your letter is already perfect. In fact, by fiddling with it you may just make it worse!

Let’s look at four magic tricks you can do.

I say these tactics are magic because I’ve never seen them fail. And… the bonus is they’re relatively simple to do!

NOTE: Want to be sure, after the fact, these strategies were, indeed, the magic that really lifted your response rate and/or average donation? If you have a statistically significant sampling (enough people in your test to be confident the results couldn’t have occurred by chance), you can, and should, do a randomized A/B test. This way, every campaign can be a learning opportunity – which makes you look smart!

1. Change the outer envelope.

This takes almost no work at all.

And it’s a critical step too many organizations overlook. Think about it. Your letter is no good if the would-be reader never sees it! Boring envelopes get tossed before they’re opened (as do emails with boring subject lines, by the way). So, try one of these magic tricks to make all the hard work you put into crafting the appeal’s content doesn’t go to waste:

• Plain envelope.  No logo. Not even your name. Just a return address (and a place where a volunteer who is adding personal notes can hand write their own name).  The mystery is hard for folks to resist. Use for renewals and warm prospects for whom you’re mailing first class. Note: the post office won’t allow this unless you’re using a first-class stamp, so it’s for renewal and warm prospecting letters more than for direct mail acquisition.

• Colored envelope. This is something to test. I’ve had great success with brightly colored envelopes that don’t even match the design of the enclosed appeal.  They simply stand out in the mail box and do their job of getting opened.

• Oversized envelope. This is another trick to get folks to take notice. An oversized envelope stands out in the mail. Of course, it requires extra postage and this can backfire, making folks think you’re using money for the wrong purposes. It works best for event invitations rather than annual appeals.

• Envelope teaser. Direct mail fundraising guru Mal Warwick describes a range of needs that can be accomplished with a teaser, ranging from describing what’s inside to asking a question to starting a story. He also says “Often the best teaser is no teaser at all. Fundraising letters are almost always crafted to mimic personal letters, so teasers may well cheapen or undermine the effect the writer wants to achieve.” Use some judgment. And ask folks outside your office if the teaser would turn them on or off. Begin your own collection at home, noting which teasers get you to open the envelopes and which you’d be inclined to toss.

• Subject line teaser. The subject line of an email is much like the outer envelope for direct mail. It’s the window into your message – inviting you to open it, or not. Make it intriguing, urgent, exciting, compelling, emotional, shocking or funny. The more useful and specific it is the better. Read more on some great year-end email subject lines. And these days you can easily engage AI to help you craft these (there’s the free version of ChatGPT, or just use your browser to search — you’ll find plenty of free products)!

2. Add a personal, hand-written note.

This takes some coordination, but it’s well worth the effort.

I’m talking about a note written directly on the appeal letter itself, or a little sticky note you affix to the top (visible when the recipient opens the appeal). You likely won’t have the bandwidth to write notes on every appeal, but you can definitely do so where it’s likely to give you the biggest bang for your buck.  There are two places where I’d suggest you focus:

• Donors who’ve made above-average gifts to you in the past. First, figure out what the average gift was to your organization. Second, run a report of everyone who gave more than this amount. Might you be able to add notes to these folks’ appeals? You can have a volunteer or staff person do this. Just something simple like: “Thanks for your support. It means a lot!” “You make all the difference!” “Your generosity means the world to those who rely on our support.” What’s important is you begin with you and you put it in handwriting, so the donor feels special. Because you took the time to single them out.

• Donors who have connections to your board and committee members, other donors and volunteers. People give to people, not organizations. So, if someone the recipient knows adds a personal note, they’ll automatically pay more attention. It’s a form of social proof, one of the key principles of influence espoused by Robert Cialdini. If someone else thinks your organization is worth supporting, then the recipient is likely to agree. For them, the note acts as a decision-making shortcut.

3. Segment your mailing list using donor identity importance.

This makes your appeal more personal.

Sure, you can segment by donor/non-donor or small/mid-level/major. Or even by personas (e.g., “Suzy Soccer Mom,” “Wanda Widow,” “Busby Businessman,” etc.) you apply somewhat arbitrarily. Of course, any segmentation is better than nothing, because it’s difficult to write an appeal that seems personal (at least from the donor’s perspective) if you write to a huge, amorphous mass. The more you can show your donors you know about them, the better.

However, the real magic trick in segmentation is to segment by donor identity importance. For example, I may fall into the general “Suzy Soccer Mom” category by virtue of having a kid who plays soccer. But that may be just a teensy part of my identity. The tip of my iceberg. One teeny tree in my forest. Something I do, not someone I am. Maybe I identify with the “mom” part, but perhaps I connect more with being a “working,” or “gardening,” or “creative” or “activist” mom.

Get some tips on brainstorming donor identities here, and on mailing list segmentation here.

4. Send a thank you letter or email before your appeal.

This strategy incorporates more of Cialdini’s psychology of influence and persuasion. When you do something nice for others, they’re inclined to reciprocate. Plus, a thank you before an ask puts people in a satisfied, generous frame of mind. They’re essentially pre-suaded to respond positively to your appeal. In fact, the Centre for Sustainable Philanthropy researched this, and found in an A/B test that a group of Planned Parenthood donors who received the extra thank you touch outperformed a similar group who did not – resulting in a 67% increase in giving! The numbers renewing didn’t change much at all, but the average gift soared.

Try out these four outside the box magic tricks to get unflummoxed!  And just in case you’d like to double-check whether you’re engaging in all “the rules” (as you put it), I cover all the critical elements to consider in my Anatomy of a Fundraising Appeal Letter.

Good luck,

— Charity Clairity (Please use a pseudonym if you prefer to be anonymous when you submit your own question, like “Flummonxed Fundraiser” did.)

How does your organization navigate stock donations? Let us know in the comments.

The post When your fundraising appeal is already good, what else can you do to increase response? appeared first on Bloomerang.

Dear Charity Clairity,

How important is it to be set up to accept stock donations? I recently had a donor inquire about this, but I’m not quite sure how to go about it. Any advice?

— Taking Stock

Dear Taking Stock,

This is VERY important!

A groundbreaking study by Dr. Russell James J.D., Ph.D., CFP®, professor in the Department of Personal Financial Planning at Texas Tech University, found nonprofits that consistently received gifts of appreciated stocks grew their contributions six times faster than those receiving only cash.

The study shows:

• Received only cash gifts = 11% growth. 
• Received any kind of non-cash gift = 50% growth. Included gifts of personal and real property and deferred gifts.
• Received securities non-cash gifts = 66% growth. Massive difference from just this one strategy!

But if you don’t promote stock donations, they’ll likely happen very rarely.

Why you should promote stock giving

Aside from the data reported in the Russell James study, gifts of stocks have significant advantages for donors:

• The donor gets a deduction based on the full fair market value of the stock
• Capital gains taxes on the amount of the appreciation are bypassed
• Donors who want to keep their stock can simply buy new shares with the cash they would otherwise have donated – thereby wiping out all their appreciation/capital gains liability and increasing their cost basis from this day moving forward.

When you proactively share this information with donors, many will be appreciative they’re now able to give more than they’d thought possible – and at a lower cost.

Donors have separate mental accounts and keep track of expenditures based on the mental account it came from.

• Gift from Income (Small Bucket Wallet): When a donor considers a $1,000 contribution against other expenses, the gift may seem too large a percentage of disposable income.
• Gift from Assets (Big Bucket Wallet): When this same $1,000 is considered as a percentage of total wealth (cash savings and non-cash invested assets, personal property, real estate, etc.), the gift may seem a relatively small percentage of investment income.

Most donors would love to make an outsize impact if they could. And if they have appreciated assets, they can.

Set up a brokerage account

It’s a straightforward process. Often you can find a broker willing to offer discounted fees for nonprofits. There are also low-fee providers, and online stock donation platforms that streamline the process. Fill out the application form (usually they’ll ask for documents like your IRS 501(c)(3) determination letter, articles of incorporation, tax ID, bylaws, etc.).  Once donors let you know they’re willing to make a stock gift, simply send instructions telling them precisely what to do – here’s a sample:

Giving appreciated assets is as easy as 1-2-3!

1. Decide which stock and the number of shares you wish to transfer to (your organization’s legal name).
2. Provide written instructions to your broker to deliver those shares to the following account that has been established for (your organization’s legal name). [Include account number; direct transfer number; broker name and company; phone, FAX and email].
3. Copy your letter of instruction to [Name and contact information for someone at your organization].

Also let donors know if they prefer to use their own broker you are willing to set up an account with their preferred brokerage. Be sure to let them know, however, you use the broker you do because they give you a preferred rate and/or offer security and efficiency.

Actively promote stock gifts

Donors may never have considered giving from wealth rather than from spare income. Knowing this is not only possible, but easy, gives them freedom to be generous.

Many donors won’t think of this without a prompt from you.

Spell this out for them by keeping it simple. Here’s an example from the San Carlos Education Fund:

When website visitors click on, or hover over, your “donate” menu tab they should see “appreciated securities” as one of the “ways to give” options.

Remember, you’re the one that needs to plant this idea. If donors see this on other charity websites, and not on yours, they’ll assume you don’t accept stock gifts.

Once you’re set up to accept appreciated assets – i.e., take stock – you’re making giving more beneficial for both your organization and your donors – so, toot your horn!

— Charity Clairity (Please use a pseudonym if you prefer to be anonymous when you submit your own question, like “Taking Stock did.)

How does your organization navigate stock donations? Let us know in the comments. 

The post [ASK AN EXPERT] Is setting up stock donations really worth the hassle for a small nonprofit? appeared first on Bloomerang.

Dear Charity Clairity,

I am Program Chair of my board, and have been responsible for setting up lectures and workshops for the last five years. Last year, another board member set up another group of competing events without consulting with me. I reached out to her, the President, and one other officer and politely requested I be apprised of any workshop offers before they go out. They agreed to do so in the future. Incident closed.

It’s a year later and, a few days ago, the president sent out a workshop email without informing me first. I again wrote her a polite request to please let me know in the future. She became very defensive, accusing me of “reprimanding “the member who had done the same thing last year. Now she’s telling me the board will censure me! I have tried talking to her, but she’s acting like we’re opponents. I have great working relationships with every other board member, but she tells me they all agree! Can a President be reprimanded themself?

–Hurt, isolated and confused.

Dear Hurt, isolated and confused,

I appreciate your reaching out, and am sorry you are going through this. It can’t be easy.

Alas, what you describe is an all-too-common situation of people with different opinions, miscommunication, and a hardening of positions. It’s a people problem, not a fundraising problem.

Defuse the situation

At this point, everyone’s defenses are up. Generally, this will not lead to a good outcome. Try putting yourself in the other person’s shoes and ask: Why might this person be behaving this way? How might this make perfect sense from their perspective? Hopefully, they will do the same for you.

It’s important to guard against making assumptions. We get in trouble when we make guesses (e.g., “deliberately undermining” or “reprimanding”) about why someone is doing something, or what they are thinking. If you can reframe the narrative for yourself, you’ll be in a better position to move forward.

Open the dialogue

If you can, try scheduling a private conversation (no email) with the president to reset things. If the president remains unwilling, see if you can enlist a fellow board member to broach the subject and join you.

Generally, there is more than one side to a story, and everyone deserves the opportunity to calmly and respectfully tell their personal narratives. You each need to understand where this problem is really coming from, and open communication is essential.

Clarify expectations

It appears your understanding of your role as Program Chair may differ from that of the president and other members. Which brings me to the importance of setting clear expectations for board members, including their roles, responsibilities, and expected behavior. This is essentially a preventive measure, and can be achieved through written policies, job descriptions, and board orientation materials.

If you don’t currently have these in place, now is an opportunity to suggest creating them. If you do have them, this is a good time to revisit them together.

Mediate, if necessary

If a private conversation doesn’t resolve the issue, consider engaging a neutral third party to mediate the conflict. A skilled mediator can help facilitate open dialogue and guide you towards a mutually agreeable solution. The ideal would be to not have to censure anyone.

In terms of who can be censured or removed from a board, generally this is something that should be covered in the bylaws. It may also be covered by the laws in your state. Removing a board member can be a complex process, and any movement towards this resolution should be well documented (e.g., behaviors; attempts made to address the issue; etc.) and done in consultation with legal counsel who specialize in nonprofits.

Revisit your mutual commitment

I’m sure you’re all committed to the organization’s mission and are generally coming from a place of love. For now, try to open up the dialogue. Encouraging collaboration over competition helps minimize conflict. And a culture that prioritizes teamwork and mutual support creates a more cohesive and effective board.

I hope you begin feeling more positive soon,

— Charity Clairity (Please use a pseudonym if you prefer to be anonymous when you submit your own question, like “Hurt, isolated and confused” did.)

How does your organization navigate board member conflicts? Let us know in the comments.

The post [ASK AN EXPERT] Boardroom missteps: how do you navigate member conflicts? appeared first on Bloomerang.