Don’t wait to engage millennial donors

For fundraising, most organizations solely look to boomers and seniors for donations. As a major gifts officer, I completely understand it. The prospect pool is much higher because of the sheer population numbers and income.

This conventional wisdom often leads organizations to completely ignore young donors, but they are making big mistakes if they don’t build donor relationships with millennials.

Millennials are willing to give. The Center on Philanthropy at Indiana University (working with Campbell & Company consultants) released an excellent report confirming that millennials are just as likely as any other generation to donate. In a study of 10,000 people representing each generation, the average giving level of millennials is on par with that of other generations.

The study also found that millennials are more likely than any other generation to cite the “desire to make the world a better place to live” as a key motivation for their philanthropy. According to the Association of Fundraising Professionals, this response suggests that younger donors will respond better to messages that focus on the global impact of an organization’s work.

Millennials are willing to raise money. From activities like Jump Rope for Heart to collegiate dance marathons, philanthropy has been part of most millennials’ complete educational careers. Fundraising allows us to scratch the entrepreneurial itch, and more college and even high school students are stepping up to the philanthropic plate.

Non-profits would be remiss to not engage students in their fundraising efforts. My organization, the Ronald McDonald House and Family Room of Durham, is working with Duke University through DukeEngage, a program that places Duke students in summer internships at non-profit agencies. Our great interns are engineering a program called Schools of Hope that will engage local elementary and high school students in fundraising for the Ronald McDonald House.

Millennials are willing to take on executive volunteer roles and make major gifts. I serve on the board of Traction, a 501c3 organization that engages young people in civic life, and I’m a major donor to both Traction and the Ronald McDonald House. My best friend Josh is a trustee of his church and contributes over 10% of his salary to the church and it’s non-profit foundation. We both deduct manageable amounts each month from my paycheck that add up to major gifts for the organizations.

One of the best ideas I’ve heard is from Tracey, a VP for Development at the United Way who commented on my blog over at Brazen Careerist. Her organization is starting a Young Leaders Society to encourage major giving among 20 and 30-somethings.

And millennials could become lifetime donors. Investing in young donors now can be very profitable for organization’s long-term success. Getting a donor engaged in her 20s — even at a low-dollar level — and effectively stewarding her generosity could develop a lifetime donor. Over a potential 30+ year relationship, donations will grow with her income and she’d be perfect for capital projects and planned giving as years go on.

Universities have long realized these points. UNC, my alma mater, begins donor relationships from the day you enroll. Their HeelRaisers Society and senior campaigns even allow students to network and solicit other students via Facebook. Once you graduate, you’re invited to join the Young Alumni donor network and given “discounts” to join the University’s highest giving societies.

The sooner non-profit organizations borrow these ideas and engage with young donors, the better their outlook for the future.

June 2, 2008 | Filed Under Blog, Fundraising, Non-Profits

1 Comment 

How non-profits can attract young board members

The non-profit sector is providing a remarkable opportunity for twenty-somethings in all walks of life. Most non-profit leaders, especially board members, are retiring soon, leaving a void that we should step up and fill.

I’ve written before that twenty-somethings should extend their volunteer roles to include executive-level volunteering such as joining boards and committees for non-profit organizations. However, organizations have to provide key things if they want to attract young people to help lead them:

A sense of purpose. Good board members want to connect with a noble cause and “give back” to the community. They want to connect with a defined mission that helps someone else. For the Ronald McDonald House of Durham, where I work, it’s helping critically ill children and their families. For Traction, the organization whose board I’m on, it’s getting more 20 and 30-somethings involved in civic life.

Clarity. Recruiting board members should be taken as seriously as hiring new staff. With many organizations, people are simply asked to “join the board” without details on what they will be expected to do. Instead, potential board members should be given a clear, concise job description that outlines roles, responsibilities, or expectations.

Accountability. Good board members need to be managed effectively and held accountable for their performance. Staff at non-profits should regularly touch base with all board members, make sure they are engaged, and help them accomplish their goals for the organization. And if they aren’t, you should ass them to “piss or get off the pot.” Good board members will want their colleagues to be held accountable as well — no one wants to pull a disproportionate amount of weight.

Technology and social networking. Keeping millennial board members engaged will require thinking outside of the box for decision-making and communication. In-person meetings will always be necessary for some things, but organizations should start using conference calls, voice over IP, online document collaboration, chats, and social networking groups that can allow busy people to contribute outside of boring meetings.

Benefit to them. The best board members will stay with organizations because there is a personal and professional benefit to their involvement. Organizations should provide opportunities for networking, professional development, skills extension, fun and other benefits to board members.

A sense of accomplishment. Board members need to see the fruits of their labor. Organizations should set SMART goals (smart, measurable, attainable, realistic, and timely) and involve board members in accomplishing them. Giving them specific tasks, creating an action-oriented culture, sharing the organization’s success will surely keep great board members around — as opposed to many groups, whose boards do little other than sitting around and talking about what should be done.

Organizations that don’t provide these things for board members will lose severely. Board members could feel unchallenged, unneeded, or like they’re spinning their wheels. And given how busy talented millennials are, they’ll likely move their time toward structured activities and organizations.

The smartest organizations will use these tactics now to ensure sustained participation and leadership from the best and the brightest our generation has to offer.

May 19, 2008 | Filed Under Blog, Non-Profits

1 Comment 

Social enterprise is the future of non-profit organizations

I spent today with social enterprise on the brain. In a class that’s part of my non-profit management program at Duke University, David Rendall, a Mt. Olive College business professor and author of some very cool books, proposed social enterprise as the future of non-profit funding.

As of 2006, there were nearly 1 million 501(c)(3) organizations in the US — a nearly 70% increase from the 536,000 there were ten years earlier — and I’ve heard that number currently grows at a rate of 1,000 per month. As the number of non-profits grows, inefficiency within our field goes up while the pool of available donors shrinks. Competition will be high for donations, and only well-oiled organizations will be able to thrive in the super-saturated market.

Given the conditions of the market for non-profits, how can non-profits protect themselves for the future? One way to look at becoming a social enterprise: a non-profit organization that generates earned income to support its social purpose. Earned income is revenue that’s received in exchange for products or services

Here are some notes from David’s class:

Organizations should combine service with business. A great example is TROSA, an organization in Durham, NC, that provides residential rehabilitation to recovering substance abusers. TROSA gives their program participants jobs in several businesses, including landscaping, framing, moving, and event logistics. The men in the program get job experience and structure to continue their rehab, and the organization gets much-needed funding from their enterprises across the state. In fact, my home-owners association contracts with TROSA to do our yard work.

Social enterprise should participate in the Experience Economy. More and more, consumers are paying top dollar to have unique experiences. It’s why Wilco broke new ground — ignoring the naysayers — by providing albums for free to generate million-dollar interest in their tours. It’s why people from all over the Mid-Atlantic region flock to Durham for the World Beer Festival and why people go to the symphony. They want non-replicable experiences. Non-profits should consider eco-tourism, travel, direct service opportunities, and experiential events as new fundraising mechanisms.

Don’t take on business models that have been rejected by the private sector. In the age of eBay, we don’t need another thrift store. Goodwill still manages to make it work very well (while linking it to their direct service to the public), but unless you have the capacity to launch a national chain, you should leave it alone.

Consider other audiences for our organization. Too often, groups dismiss social enterprise because the people they serve can’t afford to pay. Don’t concentrate solely on your service constituency, but think about businesses and individuals who are willing to pay for what you give. For example, one of my classmates today runs a violence alternative training program for prisoners and at-risk youth. They could slightly modify their program and teach conflict resolution and alternative dispute resolution techniques to corporations. The corporate training and consulting could completely fund their prison and school programs.

And finally, don’t start a non-profit, start a social enterprise that can make money and then fund charitable pursuits. Starting a business is far, far easier than starting a non-profit. All of the forms, legal information, reporting, and liability with a non-profit added to the super-saturated market for non-profits is reason enough to concentrate on social enterprise.

David’s class was by far the best I’ve had in the Duke non-profit program, and he’s an excellent thinker on leadership and how we can expand the non-profit sector. Check out David’s blog to learn more about his teaching, speaking, and international consulting and stay tuned for more info on him. I think he and I will be sharing a lot of ideas in the future.

April 30, 2008 | Filed Under Non-Profits

1 Comment 

Carefully shifting staff, board time from grassroots fundraising yields greater results

Many non-profits use grassroots fundraising — small, low-dollar, community based strategies including sales, low-dollar fundraising events, and community fundraisers — as their main method of fundraising. And many folks think they’re wastes of time — that non-profits should completely ditch them for major gifts.

I fall in the middle; balancing grassroots and major gift fundraising is key to the success of an organization’s development program. Major gifts should be the top priority, but despite its very low return on investment, grassroots fundraising gives you community visibility and gets donors’ “feet in the door.”

Before 2007, the Ronald McDonald House of Durham, the organization I’m working with, made grassroots mechanisms its primary focus. They used a significant amount of staff, volunteer, and board time planning an executing these events, although they don’t bring in a lot of money. Factoring in paid staff time, I’m sure the organization, like most non-profits, lost money on these events.

We are currently undergoing a large transformation, particularly in development — part of which includes a large shift from grassroots fundraising to major gifts. Here are some specific strategies we’re trying:

Spend the bulk of staff time on major gifts. My boss and I have been spending most of our time on capacity building and launching our major gifts program.

Engage the board in major giving. Our board previously spent time on grassroots events, but we’ve started getting them involved in major gifts — connecting us to and talking about the organization with community leaders. The shift is going well. So far we’ve gotten three board members formally with our annual giving program, and five others are working on a lead gift ask for our capital campaign.

Spend time on corporate sponsorships for events. Each year, we host a large wine auction, and we increased gross revenue by $30,000 because of corporate sponsorships. We hope to bring it up by $75,000 more next year. Our community events directors primary role for this event is soliciting corporate sponsors.

Let volunteers lead low-dollar programs. We are letting committed volunteers take the lead on our large community events, and in 2009, we hope to get a handful of volunteers signed on to lead a comprehensive program for donors who give $999 or below annually.

Use the Internet for grassroots donors. Barack Obama’s fundraising juggernaut exemplifies the power of having many low-dollar donors. At work, we’re seeing more and more inquiries about donating online, especially setting up recurring donations.

We’re not only trying these techniques at work, but I’ve pitched a similar model to Traction, the 501c3 whose board I serve on. As a young organization with only one staffer (an ED), board members have to take on many roles usually reserved for a development staff.

I’m trying to lead the shift from grassroots to major gifts for Traction, and here’s a training PowerPoint I prepared to start that move. I welcome feedback on it or anything else in this post.

April 5, 2008 | Filed Under Blog, Fundraising, Non-Profits

Leave a Comment 

Expand volunteer roles to gain experience in your field

For twenty-somethings, volunteering has long been a part of our lives. Our parents made us volunteer as kids, our high schools required it, and we needed it for college admissions and resumes post-undergrad. We built Habitat houses, volunteered in soup kitchens, mentored kids, worked in group homes, and all kinds of things that help our community.

Continuing our volunteer work is important to personal growth, but expanding our roles as volunteers can give us a professional boost. We should considering joining boards and committees for non-profit organizations they believe in — and taking leadership roles in them.

Joining non-profit boards and committees and providing pro-bono services to organizations give great experience and learning opportunities to young professionals. And twenty-somethings can get involved with local organizations who need our knowledge and skills.

My best friend Josh, a 23-year-old construction executive in South Carolina, recently stepped up as a Trustee of his church, which he’s been a member of his entire life. He’s taken on a heavy role with the church’s finances, learning about non-profit accounting and governance.

Because he’s done a great job as a Trustee, he’s been asked to lead the church’s capital campaign to build a new sanctuary. He asked me to volunteer, and I’m trying on a consultant hat for the first time by giving them some fundraising advice as they plan their campaign.

We’ve already prepared a strategy document for the church (attached below), had one excellent meeting with the church’s leadership, and I’ll be working with Josh to train church members, prepare materials, and coach them through the fundraising process.

These experiences will not only accomplish good things for his church, but they’ll give us added experience that will hopefully help us in our careers.

Look at non-profit organizations. At my job, the Ronald McDonald House and Family Room of Durham, volunteers are crucial to our operations and leadership. Volunteers help us provide direct service to the families; advise us on operational, legal, fiscal and strategic moves; and are actively involved in our fundraising and special events. We have several young professionals, including two Duke MBA students, on our Board of Trustees and committees.

Political committees need volunteer leaders. When I worked in politics, volunteers were key to fundraising, get out the vote (GOTV), and events. Political experience is applicable to many careers, especially fundraising.

Also, public boards and commissions are always looking for young people to serve. A college friend of mine with an interest in city planning was the only person under 30 who applied to serve on the Town of Chapel Hill’s Transportation Board, and he had a very successful term.

So get involved! No matter your field, I bet there is an organization in your area who could use your help. You’re doing great work, and it gives you valuable experience that could be helpful in future career endeavors.

April 2, 2008 | Filed Under Blog, Career, Fundraising, Non-Profits

3 Comments 

Don’t use grad school to break into fundraising

In the last post, I suggested several professional development programs that young professionals should look at in order to build their credentials for a career in fundraising. In response, a friend of mine shot me an email this morning, questioning if grad school was an option to break into fundraising or get high-paying jobs in non-profits. This is definitely not the case. Grad school is not a smart option for millennials trying to break into the field.

There are a few professional degree programs in fundraising out there — Columbia and NYU to name a few. However, these programs don’t seem to provide anything that good work experience in fundraising and some professional development couldn’t — at a fraction of the cost.

As Penelope Trunk has pointed out several times, grad school isn’t something 20-somethings should rush into.

I would recommend that people wanting to break into the field pursue the professional development programs I listed in the last post and spend years working in the non-profit or political sphere to gain work experience and perspective on the fundraising world.

Now, some of us millennials are Covey-esque in our “begin with the end in mind” thoughts — we might not go to grad school now, but we like to think about what programs we should be applying to in the years to come. Heck, I have GMAT, LSAT and GRE books on my bookshelf, just so I’m prepared for whatever program I decide to apply for in the future.

If after working in the field for five years you are truly interested in making fundraising your career, a graduate degree is required to get top, senior-level jobs — senior consulting for big firms, CEO gigs for large foundations, and serving as vice president for development or advancement at universities. There is no set degree path to getting senior-level jobs, though, and that’s pretty frustrating to a lot of folks.

Many people would recommend versatile degrees such as MBAs or JDs for seasoned professionals looking to get top fundraising jobs. One of my former bosses, NYC Education Chancellor Joel Klein, said that getting a professional degree in an uber-specific field limits you in the long run and highly recommended a law or B-school for both the non-profit and for-profit worlds.

But it’s a matter of choice. In an old Chronicle of Higher Ed article, Mark Drozdowski, a fundraising administrator at Pierce College in NJ, outlines the many degree paths you could choose (degrees in law, business, higher ed, public policy, and philanthropic studies) to enhance a fundraising career and get to that senior level, but his final recommendation is the same as mine– professional development.

March 20, 2008 | Filed Under Blog, Career, Education, Fundraising, Non-Profits

Leave a Comment