Nonprofits: Don’t raise a dollar unless you plan on keeping it

According to Ken Burnett, “Our nonprofit sector is bleeding to death. We’re hemorrhaging donors, losing support as fast as we find it, seemingly condemned forever to pay a fortune just to stand still. It’s time we stemmed the flow.”

It’s understandable why Retention Fundraising author Roger Craver chose Burnett to write the forward for this book. Burnett brings the right amount of warning to the issue. Burnett is right. Our social sector is in dire need of determined action to diminish donor attrition.


A few of the many reasons include the following: Attrition costs our organizations billions of dollars and effort. It suffocates the other mission-related work we’re trying to do. It undermines the sector as a whole. Unfortunately, many fundraisers accept low donor retention as a fact of life.

Roger Craver says it doesn’t have to be that way. Craver has unpacked the answers to many of the challenges nonprofits face with attrition such as shifting the fundraiser’s focus to what matters most to donors, overthrowing retention barriers, responding efficiently and more.

Thanks to a study of more than 250 organizations, Craver and his collaborators have introduced a framework for boosting retention and the lifetime value of donors. This framework is the foundation to improve each of the retention issues he presents, from redefining loyalty to understanding authentic engagement.pinterest-com

We asked Craver about how to make a case for retention activities if you need to enlist your colleagues and leadership in the process. We also had him share insights on the metrics you should measure:

CausePlanet: How do you convince nonprofit organizations that focusing on donor retention is worth the extra time, effort and expense?

Craver: Year after year for the past decade, donor-retention rates have been sinking. Today, they’re at an all-time low.  According to studies by the Association of Fundraising Professionals, every $100 raised from new donors was offset by $100 in losses because of attrition. All this despite the facts that organizations have

– a 60-70 percent chance of obtaining additional gifts from an existing donor.

– a 20 to 40 percent chance of obtaining an additional gift from a recently lapsed donor.bloomerang-com

– but less than a 2 percent chance of obtaining a gift from a prospective donor (actuation).

So one thing should be glaringly obvious. The bulk of an organization’s fundraising spending should be aimed at holding onto and building relationships with existing donors, not in acquiring new ones. It’s called “retention.” Unless an organization’s goal is to never grow and eventually decline, the failure to focus on retention is ultimately ruinous as the organization’s support shrinks like a raisin in the sun.

CausePlanet: Would you talk about how the metrics you have developed (lifetime value, etc.) help a nonprofit track its fundraising and justify its time and effort?

Craver: There are some fundamental metrics that serve as a sort of fundraiser’s GPS—Retention Rates and Lifetime Value. They quickly and easily indicate whether an organization is relevant to its donors.

Number of new donors making a second gift: A harbinger if not dead-on predictor of the retention rates and Lifetime Value an organization is likely to enjoy in the future.

Number of new donors retained into the second year: If you ask and answer the question as to why so many donors leave the first year and what your organization is doing to lose them and hold them, you’ll be on a true track to growth. Fail to answer them, and it’s more of the same.

Multiple Year Retention Rate: Same as above, but by tracking these year by year you can spot trends, problems and opportunities. Why? Because year-over-year comparisons of this metric will trigger additional questions and answers for improving your

Lifetime Value of a Donor (LTV): At the end of the day all the actions you take to improve retention, average gift and donor commitment will be reflected in the Lifetime Value of each donor and all donors collectively. This is the key metric on which you can benchmark, guide and then track the success–or failure–of your intermediate and long-term strategies.

There’s never been a better time for Roger Craver’s book. Why let one more hard-won donor leak through the bucket when instead, she could be a lifetime supporter of your organization. Simply put, calculate the cost of repeated acquisitions versus the renewal of a donor who is predisposed to support you.

Craver provides countless data-based methods for retaining donors including Cliff Notes to his own advice at the end. From what drives donors to stay to what prompts them to leave, Craver makes it impossible to look the other way on retention–and your nonprofit will be better for it.

See other book summaries related to this title:

Fundraising the SMART Way™: Predictable, Consistent Income Growth for Your Charity + Website

Fundraising When Money Is Tight

Influential Fundraiser: Using the Psychology of Persuasion to Achieve Outstanding Results

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Nonprofits: Four things fundraising is not

globalpassionblog-wordpress-comJeff Brooks’ How to Turn Your Words Into Money is a nonprofit writer’s new ally with the latest guidelines for creating the most effective messages to persuade your reader.

Brooks explains what fundraising writing is not and what it should be. He does so in a way that tells you exactly what to avoid and what to try in your next attempt to sway your audience.

A fair amount is appropriately dedicated to the many ways you can create a compelling story even when you’re stumped. How to Turn concludes with what every fundraising writer needs: universal assumptions we know about donors and some helpful advice to keep you inspired.

Brooks asserts that fundraising writing is different than any other writing. Many of its most successful examples defy English conventions and are counterintuitive.

Brooks begins his book with what fundraising writing is not and then describes what it should be.

We’ve excerpted his “Don’t” list here for you.

Educating is not fundraising:theconnectedcause-com

Educating donors about your cause does not motivate them to give. Appealing to their passions and telling them about a person who is suffering motivates them to give. After they give, they are then willing to learn more about your cause. For example, educating donors about statistics on homelessness does not increase giving. Telling a person’s homeless story does motivate them more often. People are motivated by their emotions and interests, not facts.

Bragging is not fundraising:

Talking only about your impressive self does not work in any situation. Instead, “only share excellent qualities that are relevant to donors.” Don’t talk about your stellar processes, fame or awards you’ve won. Donors want to contribute to results and be part of your excellence. Instead of saying what your organization has done, attribute your success to your donors’ generosity:

“We’ll stretch every dollar you give so you help the greatest number of people in the most life-transforming way.” Share these relevant facts with your donors: a purpose statement that shows you share your donors’ values, watchdog approvals or ratings, and quotations from authorities or celebrities that vouch for you.

Journalism is not fundraising:sharpenet-com

If you focus on the five Ws (Who, What, Where, When and Why), you will miss the word “you,” or the donor. Instead of just telling a homeless person’s story, relate it to the donor: “Frank is a lot like you. He loves his kids, and like you, he’d do almost anything to make them happy. But last Christmas, Frank had to make a bigger sacrifice than most parents. …” (He spent his last few dollars on gifts for his daughters he hadn’t seen in more than two years and became homeless.)

Furthermore, as a fundraiser, you need to be biased, not objective, about your cause. Therefore, focus on the conflict or what needs to change, show a problem, unveil the enemy, and recruit the reader by appealing to his values and challenging him to take action.

Humor doesn’t work well in fundraising:slate-com

For several reasons, stay away from humor: 1) It doesn’t translate across cultures or different age groups. 2) Insider jokes about your organization do not work with donors who are outsiders. 3) Humor makes fun of something or someone, which does not inspire empathy, kindness or a willingness to give.

We asked Books about testing his messaging in our Page to Practice author interview:

CausePlanet: How often do you test your fundraising messages? Do you see donor’s preferences shifting very often?

Jeff Brooks: You should test all the time–if your quantities are big enough to yield statistically significant results. If they aren’t, testing is a waste of time and money, and it’s just as likely to tell you the exact opposite of the truth as it is to enlighten you. If you can’t test, you should pay attention to those who do.

We can count on donor preferences shifting over time. It happens slowly in direct mail and more quickly online. If something works really well now, it may not always work. A few years ago, everybody started using brown paper bags as envelopes for direct mail pieces. It really worked like crazy. Then it suddenly stopped working–probably because it became so common it lost its novelty value.

Why you should buy this book

Anyone charged with communicating on behalf of his nonprofit should buy this book. Brooks shares the latest conventions and discoveries in effective fundraising messages. In fact, very few of our early fundraising conventions remain and those that do are bendable rules at best.

What you learned in school or early in your career is no longer relevant. You will find the art and science of writing to the donor has evolved a great deal. Jeff Brooks is the antithesis of “those who can’t do, teach.” He’s a consultant and practitioner who is constantly perfecting, testing and retesting his craft. You’ll find this book supremely insightful and a bottom-line-changer.

See other relevant book summaries and titles:

Brainfluence: 100 Ways to Persuade and Convince Consumers with Neuromarketing

Content Marketing for Nonprofits: A Communications Map for Engaging Your Community, Becoming a Favorite Cause, and Raising More Money

Seeing Through A Donor’s Eyes

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Are you measuring up to Brooks’ advice on how to turn words into money?

TurnYourWordsIntoMoneyFBJeff Brooks’ How to Turn Your Words Into Money is a book about what fundraising writing is not and what it should be.

Brooks tells you exactly what to avoid and what to try in your next attempt to sway your audience. A fair amount is appropriately dedicated to the many ways you can create a compelling story even when you’re stumped.

As Brooks explains in his post, you’ll get a lot of specific fundraising advice and writing tips like:

Specifically how to ask.

How to use rhyme to make your message more memorable and persuasive.

How to tell stories that motivate donors to give.

How to tell a great story even when you don’t have a story.

How to meet donors’ emotional needs.

Whether you should use guilt as a motivator.

The most common traps for fundraising writers — and how to avoid them.


We asked Jeff Brooks about the fundraising profession and how it compares with his advice:

CausePlanet: Jeff, do you think the nonprofit world is shifting to honor your fundraising advice?

Books: I’d say a qualified yes. The idea that you’ve got to focus on donors and their needs if you really want to raise funds is widespread. There are few experts left who don’t focus on donors these days, and there’s a ton of great help for being donor focused. fineartamerica-com

I think there are two dark clouds in our bright donor-focused sky:

There are still a lot of organizations that are using crappy old techniques. They seem to be caught in a time warp. They’re still eking some kind of success out of it, but in most cases, they’re living on strong legacy brands. They don’t have to reach out to donors, because so many donors already believe they’re worth giving to. This can’t go on forever, so these organizations are either going to change or go into financial death spirals in the coming years.

For too many fundraisers, “donor centered” means “fundraising I like.” Which by definition is not donor centered. Every day I see examples of modern, slick, intellectual, clever fundraising that’s terribly ineffective–but self-labeled as “donor centered.”

Those of us who believe in really meeting donors and making them the heroes in our fundraising need to push against both of these shortcomings!


In spite of all the attention new fundraising strategies attract, raising money via the written word is still one of the most effective strategies you wield as a nonprofit. In fact, your messages are now played out in more ways than we ever dreamed.

It’s never been more pressing to get a handle on your writing style and how it triggers a donor to give via mail or online. Brooks has a superior track record in this realm and his book shares a bounty of insider knowledge.

See our book summaries related to this title:

The Fundraiser’s Guide to Irresistible Communications: Real-World Field-Tested Strategies for Raising More Money

The Money-Raising Nonprofit Brand: Motivating Donors to Give, Give Happily, and Keep on Giving

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It’s the perfect time for Tom Ahern’s “Making Money with Donor Newsletters”

Screen Shot 2016-04-07 at 12.43.11 PMThere’s never been a better time to enter our Get Smarter Give Away book drawing.

Donor acquisition costs are at an all-time-high and retention rates are at an all-time-low. Author Tom Ahern has written Making Money with Donor Newsletters: The How-To Guide to Extraordinary Results and now you can apply every chapter that is chock full of illustrations and guidance.

Tom Ahern is a leading authority on donor communications and reveals many secrets behind highly successful newsletters, including the “Domain Formula” that has help countless charities with a guaranteed method for raising funds.

Chapter titles include “How to make news out of thin air,” “How to create a donor-centered newsletter without a budget or designer” and “How to lower the grade level of your writing (and why you need to).”

How to enter? Simply email us and put Tom Ahern in the subject line. That’s it.

Congratulations to Andrea who won our drawing last month for a free copy of Fundraising Habits of Supremely Successful Boards!

See some of our CausePlanet book summaries related to this title:

How to Write Fundraising Materials That Raise More Money

How to Turn Your Words into Money: The Master Fundraiser’s Guide to Persuasive Writing

Seeing Through A Donor’s Eyes

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Get Smarter Give-Away: The Fundraising Habits of Supremely Successful Boards

downloadWe believe the best things in life are free. That’s why we’re giving you a chance to win a free copy of The Fundraising Habits of Supremely Successful Boards in our Get Smarter Give-Away.

Fundraising Habits author Jerold Panas has worked with more than 400 boards and raised billions of dollars. He’s written this book to help boards learn from his mistakes and wins along the way.

Jerry’s relatable stories will help your board members adopt the right habits with fundraising and they’ll appreciate a book that’s written specifically for them. If you have a board that’s hesitant about raising funds or simply needs a boost, enter our drawing and give your board a great tool.


How to enter the drawing:

Simply send us an email at and write “free drawing” in the subject line.

See book summaries about board fundraising:

A Fundraising Guide for Nonprofit Board Members

Super Boards: How Inspired Governance Transforms Your Organization

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Put your own stories to work when winning others over

business2community-comPeople tell stories all the time and don’t realize it. “This book is actually designed to help you pay better attention to the stories you tell, so you can teach, build vision, share a process or introduce a new idea more effectively,” says storytelling thought leader Annette Simmons.

Influence, persuade, inspire

Simmons explains why storytelling that is used to influence others is more than a tool for the marketing professional or fundraiser. Whoever Tells the Best Story Wins is widely applied by leaders to influence, persuade and inspire. In Whoever Tells, you’ll learn how to build consensus, win others over to your point of view, and foster group decision making by using six kinds of stories.

These stories are often the reasons why donors give, why board members act, why stakeholders advocate or why people collaborate. Annette Simmons not only explains why this skill is so critical to everyone, but also how to learn and develop what many people mistakenly believe is a rare gift only a few of us enjoy.

Whoever Tells the Best Story Wins takes you step by step through the process of identifying and choosing stories from your own life, experience and knowledge, and then linking them, fully and authentically, to the themes, messages and goals of your workplace.designpm-com

You’ll gain skills in how to influence others, improve collective decision making and leverage the approval of ideas you’re presenting. Simmons helps you accomplish these goals by using six kinds of stories:

Six kinds of stories

1.     Who-I-Am Stories: People need to know who you are before they can trust you.

2.     Why-I-Am-Here Stories: People can be wary so you must disarm them by sharing your agenda.

3.     Teaching Stories: Some lessons are best learned from telling a story that creates a shared experience.

4.     Vision Stories: The idea of a worthy, exciting future can reframe difficulties and diminish obstacles.

5.     Values-In-Action Stories: Tell a story that illustrates the real-world manifestation of a value.

6.     I-Know-What-You-Are-Thinking Stories: These stories address possible suspicions and dispel them to build trust.

Working definition, how to identify good stories and Simmons’ approach

Simmons defines “story” as a “reimagined experience narrated with enough detail and feeling to cause your listeners’ imaginations to experience it as real.” There are many other definitions but this one is helpful because it keeps you focused on stories that influence and change perceptions.

She adds, “Stories replenish information with the food of human connection and reignite powerful motivations stimulated when we feel the sense of our shared humanity.”

According to the author, once you know how to find and tell stories that feel personal to you and your receivers, you have what you need to acknowledge, connect with and emotionally move others. The best storytellers understand how to use their own emotional responses as indicators of what will resonate with others.

Why you must tell stories from the inside out

Most storytelling advice instructs you to tell the story from the outside in. All stories have a beginning, middle and end. They have a plot, character, setting, conflict and resolution. These elements are all true but they don’t generate an emotional connection.

Conversely, telling personal stories teaches you storytelling from the inside out, which puts emotion and personal connection first. “Unless you bring a beating heart to your message, it is dead. But when you tell your own heartfelt stories about what is meaningful in your life and work, you get the hang of finding stories that frame life and work in emotionally meaningful ways for your listeners.”

Why you should take a closer look at Simmons’ book

If you find yourself in any situation where it is essential to engage a listener, audience, prospect, board or task force, you will find Whoever Tells exceptionally useful. Simmons’ well-researched and example-rich chapters help you build a foundation of stories that will become useful to you in a variety of settings. The book is well-written, clearly organized and an enjoyable read. In storytelling terms, there are no cliff hangers. Rather, Simmons provides you with heroic ideas and satisfying endings to each chapter.

See books and summaries for related titles:

Storytelling for Grantseekers: A Guide to Creative Nonprofit Fundraising

Content Marketing for Nonprofits: A Communications Map for Engaging Your Community, Becoming a Favorite Cause, and Raising More Money

How to Write Fundraising Materials That Raise More Money

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Podcast: Are you ready to consider impact investing?

impactinvestorcoverAs Millennials move into new leadership roles, they are demanding the opportunity to align every facet of their lives with making a positive difference in the world. A new capitalism, what Ben Thornley and his coauthors call Collaborative Capitalism, is focused on more than just financial returns to make an impact on the world’s issues.

One tool of Collaborative Capitalism is called impact investing. This new form of investing focuses on delivering positive social and environmental outcomes alongside competitive financial returns.

In the new book, Impact Investing: Lessons in Leadership and Strategy for Collaborative Capitalism, the authors examined 12 outstanding impact investment funds that met or exceeded expectations in a two-year study.

They uncover the practices that make these funds successful and outline the strategies that all investors, from corporate executives to change agents to philanthropists, can apply to their own organizations to achieve high performance in both social and financial outcomes.

We had a chance to discuss the exciting implications for nonprofits in a recent conversation with coauthor, Ben Thornley. Feel free to click on any of his answers to the topics we present below in the podcast excerpts:

1) Ben Thornley–Premise and NP benefits

2) Ben Thornley–Indicators for nonprofits

3) Ben Thornley–New trends

4) Ben Thornley–Nonprofits first steps

Increasingly, financial institutions and corporations around the world are using Collaborative Capitalism as a tool to generate clear, positive social outcomes in addition to profits. This book will help nonprofits learn how capital can be used to drive social and environmental change as well as how to attract potential investors.

Financial tools are increasingly being used to support community vehicles, including nonprofits, cooperatives and social enterprises. The Impact Investor gives a comprehensive overview of the approaches successful impact investors have used to increase their probability of success.

See also:

The NON Nonprofit: For-Profit Thinking for Nonprofit Success

Cash Flow Strategies: Innovation in Nonprofit Financial Management

The Nonprofit Business Plan: The Leader’s Guide to Creating a Successful Business Mode

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What’s happening in the world of fundraising?

It’s not very often that we look beyond our own nonprofit’s backyard let alone past its international borders. Global Fundraising editors Bernard Ross and Penelope Cagney have given us a long overdue look at what’s happening in the world of fundraising. Literally.

Global Fundraising looks at worldwide developments in philanthropy that are revolutionizing the fundraising world.

Editors Cagney and Ross have compiled this book for fundraisers, CEOs, professional advisors and grant-making leaders who are turning their attention to the philanthropic potential beyond their own borders.

This book looks at remarkable case stories written by experts from these countries and many more: India, Brazil, Russia, Australia and Japan. Each of the chapters focuses on the new practices in the realms of technology, innovation and major donors. Global Fundraising offers an insider’s guide that includes rich insights on how to engage your nonprofit internationally.

We recently had a chance to interview Cagney about the book on several topics. Enjoy her insights into the following subject areas of the book:

1) Introduction to the book Global Fundraising: Cagney-introduction to Global Fundraising

2) Innovation from everywhere/Which of the other countries’ strategies are most transferable or worth considering? Cagney- innovation from everywhere

3) Trends for nonprofits to consider in global fundraising: Cagney-global fundraising trends

4) What should nonprofits know about charity giants? Cagney-What nonprofits need to know

5) Current observations on global fundraising: Cagney-Current observations

While many philanthropists, nonprofit leaders and fundraisers have an eye on proven practices among the usual suspects in North America and Europe, numerous charities both giant and small, inside and outside these regions are exhibiting innovative methods worthy of global attention.

The worldwide nonprofit sector is keenly aware of the need for creativity and tested practices and this book proves organizations need only look beyond their borders. Cagney and Ross have uncovered helpful case stories in countries that once were considered unlikely places for fundraising achievements.

See Page to Practice nonprofit book summaries related to this post:

Global Fundraising: How the World Is Changing the Rules of Philanthropy

Do More Than Give: Six Practices of Donors Who Change the World

Influential Fundraiser: Using the Psychology of Persuasion to Achieve Outstanding Results

Image credits: Wiley Publishing

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Burned out on board fundraising? Get inspired by a view from outside the box

“The big secret of philanthropy is now out. Philanthropy is fun. It is joyful. It is fulfilling. It will make your life feel worthwhile in ways that few other enterprises can.”

Author Ted Kort highlighted this quotation by James Wolfensohn in chapter two of his new book, Outside the Box Fundraising: The Way to Nonprofit Board Success. Kort must have felt the way I did when I read it for the first time: inspired by a positive perspective.

“Inspired by a positive perspective” is the phrase I would also use to describe Kort’s Outside the Box book. Kort’s refreshing, knowledgeable and enthusiastic approach to fundraising at the board level will remind you of the numerous ways you can engage people in a winning approach.

Kort’s Outside the Box reads like a “best of” book, highlighting all of the practices that worked for him over the years. He also provides plenty of examples that illustrate his efforts in the trenches while working on behalf of dozens of boards. Kort is quick to acknowledge the sources and books that helped him, including many authors we recommend at CausePlanet such as Tom Ahern and Ken Burnett.

Kort covers all the bases so I’ll give you a brief outline of his book:

Great relationships are the focus of chapter one. Kort uses the relationship rating system to determine how you are progressing with each prospect.

Philanthropy is the subject of chapter two. He stresses the importance of understanding your own personal views and how those views impact your donors.

Chapters three and four explore how to educate, motivate and activate board members. Once you have them on board, Kort explains how to run great board meetings.

Kort shares four easy ways to to ask without asking and how to leverage your core event in chapters five and six.

In chapters seven, eight and nine, Kort introduces how to use teamwork when forming your campaign plans and how to apply new ideas for phone and face-to-face solicitations.

The two most important words in fundraising, “thank you,” are the focus of chapter 10.

The book concludes with chapters 11 and 12, covering five important subjects such as the elevator speech, PR and goal setting. Chapter 12 ends—you guessed it—on a high note with how to energize your board immediately.

Kort provides helpful finishing touches in the form of appendices that include board expectations, recommended reading and my favorite: 77 Reasons Why People Give by Robert Hartsook. If you’re on a board or working with one, it’s a great time to get inspired again with Outside the Box Fundraising.

See also:

Asking Rights: Why Some Nonprofits Get Funded (and Some Don’t)

How to Write Fundraising Materials That Raise More Money

Relationship Fundraising: A Donor-Based Approach to the Business of Raising Money, 2nd Ed.

A Fundraising Guide for Nonprofit Board Members

Image credits: Outside the Box Fundraising

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CausePlanet’s Choice Awards–Our Top Nonprofit Books for 2015

This is my favorite time of year for many reasons. One of them is our chance to look back at a great year of book choices for our readers.

It’s also the hardest time of the year because we choose books that stand out among the rest. Now, this may seem like an easy task but it isn’t. Choosing from titles that are already among our favorites is like choosing a favorite child. Thankfully, the challenging task is tempered by the fact that we know you love these awards. Thank you for the wonderful feedback when we launched this designation last year.

All our Choice Award titles are chosen based on the following criteria: original insights, inspirational content, well-organized and easy-to-follow format, voice, applicability, and strong evidence of case stories and/or exhibits.

Our Choice Awards for 2015 go to the following authors:

The Sustainability Mindset by Steve Zimmerman and Jeanne Bell
This book not only effectively argues the importance of having financial and programming discussions within the same conversation, but the authors also provide a proven framework designed to guide the process toward sound decision-making. Thanks to matrix mapping, your leaders can leave the guesswork out of strategic planning.

The Last Virtual Volunteering Guidebook by Jayne Cravens and Susan Ellis
Cravens and Ellis do a wonderful job of addressing how volunteering has changed so dramatically over the years that calling out the notion of virtual volunteering is no longer necessary because this form of giving has meshed with traditional volunteering. This thorough guidebook is the resource for anyone managing volunteers.

Global Fundraising: How the World Is Changing the Rules of Philanthropy edited by Penelope Cagney and Bernard Ross
Cagney and Ross create a rare and fascinating look at what types of fundraising are working all over the world. In a telescoping society that’s facilitated by technology, nonprofits’ reach is farther than ever before. This book helps you gather context for your fundraising efforts and consider what’s influencing your donors outside of traditional boundaries and borders.
On behalf of the CausePlanet team, we would like to thank these authors and the company of authors they share who’ve contributed so much to the sector in which we work. We hope our Page to Practice™ book summaries have inspired you to engage in deeper reading and make better book choices. Don’t forget—December is Read a New Book Month. Choose one of these titles or any of the great recommendations in our book summary library and work smarter in 2016.

See also:

The Sustainability Mindset: Using the Matrix Map to Make Strategic Decisions

The Last Virtual Volunteering Guidebook: Fully Integrating Online Service into Volunteer Involvement

Global Fundraising: How the World Is Changing the Rules of Philanthropy

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