The Transformative Power of Giving Clubs in Fundraising
“I love giving clubs!” That was the subject line of Rick’s memo. It grabbed my attention immediately, but little did I know just how much that memo would transform not only my life but the lives of so many others. And not just a little bit. It made a significant difference—a transformation for the better. This all started more than twenty years ago, and since then, the concept Rick introduced has helped raise hundreds of millions of dollars. Yes, you read that correctly—hundreds of millions. For great causes. Transforming tens of thousands of lives along the way. Pretty cool, huh? Let me tell you more. This story is about how you, too, can take up a strategy that could supercharge your fundraising efforts in a truly transformative way. It’s about giving clubs and why they should be a part of your “One Thing” to focus on in your fundraising strategy. The Beginning of Something Big: My friend and colleague Rick Hendrix first brought the idea to me in a memo, urging that we start a giving club for the nonprofit organization where we worked. This was after Rick and I attended one of Mal Warwick’s famous fundraising sessions in Berkeley, California. We both heard a compelling presentation from Bill Rehm, a member of Mal Warwick’s leadership team, about the benefits of giving clubs. Rick, ever thoughtful, took what we learned and converted it into a compelling plan—a path forward that he laid out in his memo. And why not? The potential upside was massive, and the risks seemed minimal. We just needed a solid plan, and Rick provided exactly that. The Power of Giving Clubs: Now, let’s talk about the reasons giving clubs are such a powerful tool in fundraising. These insights come directly from that session we attended, and they’ve proven to be incredibly valuable over the years. Here’s what giving clubs can do for your organization: Enhanced Communication: They provide a highly effective way to communicate with your best donors under the guise of the giving club. We all know how important list segmentation is—giving clubs allow for even more targeted communication. Increased Engagement: Direct mail is one of the most effective ways for donors to self-identify as supporters. Giving clubs encourage donors to raise their hands even higher, both in-house and in acquisition, boosting response rates and average gift sizes. Meaningful Recognition: Giving clubs offer a way to provide recognition and benefits that strengthen donor relationships without creating a sense of elitism. Community Building: They create a comfortable space for major donors to connect with their peers, fostering a sense of community and shared purpose. Personalized Attention: Giving clubs ensure that major donors don’t slip through the cracks but receive the individual attention they need. Encouraging Upgrades: Annual reports that showcase giving clubs not only serve as vehicles for recognition but are also highly effective in encouraging donors to upgrade their giving as they see the levels their peers have chosen to support. Why This Matters: If you’re looking for a way to truly transform your fundraising efforts, giving clubs might just be your answer. They offer a structured, strategic approach to engaging and retaining your most valuable supporters while also providing them with the recognition and community they deserve. The results speak for themselves. Over the past twenty years, the implementation of giving clubs in various organizations has led to the raising of hundreds of millions of dollars—dollars that have gone on to create meaningful, positive change in countless lives. Moving Forward: So, what’s next for you? Consider how you can integrate giving clubs into your fundraising strategy. The potential for transformation—both for your organization and for those you serve—is enormous. The journey to better fundraising is ongoing, and giving clubs can be a significant part of that journey. It’s about more than just raising money; it’s about creating lasting relationships with those who believe in your mission.
Why Prospecting Should Be Your Top Priority in Fundraising
Why prospecting? If we really want to supercharge our fundraising efforts, why should prospecting be the first thing we focus on? Prospecting is the foundation from which all other fundraising efforts grow. It’s the seed that brings in new donors, fuels direct mail programs, and often leads to higher-dollar contributions, events, and even planned giving. But let’s dive deeper into why prospecting is so crucial. The Expert Perspective: To explore this further, I reached out to two of the most talented direct marketing professionals I know, asking them why prospecting should be considered the “One Thing” for any fundraising strategy. John Griswold, a veteran of multiple presidential campaigns and national party organizations, shared his thoughts: “For me, prospecting is always my ‘One Thing.’ It is your seed corn from which all other fundraising can grow. It provides the source of donors for direct mail programs and many times the higher-dollar efforts, events, and even planned giving. What’s more, acquiring donations from cold prospects is the most difficult of fundraising tasks. If through testing you unlock the keys to prospecting, you have also unlocked many of the keys to donor retention and upgrades. Finally, the design of prospecting offers and the targeting significantly impact the characteristics and future responsiveness of your donors. Prospecting is the ONE THING!” John Davis, who has dramatically increased the number of active donors at the Leadership Institute, added: “In 2011, Morton Blackwell gave me a challenge. He believed prospecting was so important to the future of the Leadership Institute that he would be willing to borrow money in order to invest it in prospect mail. His challenge to me was to find a way to send enough prospect mail to put him in a position where he had to actually do that. I’ve been working to meet that challenge ever since. The good news is that we’ve greatly increased the amount of prospect mail we send. The bad news? The new donors are giving so much to the Leadership Institute that I haven’t been able to run Morton out of money yet!” This relentless focus on prospecting has had a tremendous impact on the Leadership Institute, as seen in the significant growth in donor numbers. And this growth excludes all major donors giving $10,000 or more. A good prospecting effort not only brings in new donors but also helps identify potential major donors, whether they give a higher amount immediately or over time as trust is built. Why Prospecting is Non-Negotiable: Prospecting is not just another task on your to-do list—it’s the lifeblood of a sustainable fundraising program. When done right, it can transform the future of your organization. Prospecting brings in new supporters, which is critical for long-term growth. These new donors can evolve into major contributors who play a key role in your organization’s success. Moreover, prospecting is a skill that, once mastered, can improve other areas of your fundraising efforts, including donor retention and upgrades. It’s a continuous process that requires careful planning, testing, and adjustment, but the rewards are well worth the effort. Taking Action: So, what’s the one thing you should do first? Start developing your vision and strategy for prospecting. Assess your current opportunities, and think about how you can implement or scale up your prospecting efforts. If you’re looking for further reading, consider exploring Ben Hart’s Fund Your Cause with Direct Mail or Mal Warwick’s Revolution in the Mailbox. Both offer valuable insights into effective direct mail strategies that can enhance your prospecting efforts. Remember, prospecting is the key to unlocking your fundraising potential. It’s the one thing that, if done right, can set your organization on a path to sustained growth and success.
Why Prospecting is the Game-Changer Your Fundraising Needs
Why prospect? It’s a question that comes up often. And the answer is always the same: Why not? Prospecting is one of the most effective ways to supercharge your fundraising efforts. If there’s one thing you can do this year to make a significant impact, it’s this: Prospect. But don’t just take my word for it. John Davis, one of the sharpest fundraisers I know, has done incredible work by adding tens of thousands of active supporters to the Leadership Institute’s donor rolls. His success is a testament to the long-term benefits of prospecting. So, why prospect? Let’s let John explain. The Importance of a Diagnostic: John suggests that the most impactful action a fundraiser can take is to run a “personality test” on their program. This diagnostic tool evaluates how your organization is doing, what’s working, and what isn’t. From there, you can build a custom plan to expand what’s working and fix what’s not. At the Leadership Institute, we use something called the Donor Performance Table (DPT). It’s a two-page tool that Morton Blackwell invented, and it’s been a game-changer for us. The DPT is like a health checkup for your organization, helping you figure out where to focus your time and resources. Understanding the Donor Performance Table: The DPT is divided into two main sections: Count of Donors Per Giving Year: This table shows how many donors start giving in a particular year and how many of them continue to give in subsequent years. It’s fascinating to see the progression and longevity of donor relationships. For example, we had 60 donors start giving in 1982, and amazingly, four of them are still giving as of last year. Donor Performance by Dollars: The second page of the DPT tracks the actual dollars given. It lists the initial prospect donations and the subsequent donations in each calendar year. This helps us see the financial impact of our prospecting efforts over time. Why Prospecting is Essential: The power of direct marketing lies in years of stable, sustained giving, supported by major and planned gifts in later years. This is how $17,000 in prospect income in 1982 turns into over $3.5 million in total giving over the years. Or how an investment in 2,895 donors in 1995 generates nearly $24 million in revenue since then. Your DPT results aren’t just numbers—they’re a powerful tool for making the case for prospecting investment to your organization’s leadership. It’s hard to argue with data that shows how a modest investment today can lead to massive returns down the road. Creating and Interpreting Your Own DPT: If your organization isn’t already tracking this, now is the time to start. Creating a DPT isn’t as complicated as it might seem. If you have a record of gifts made to your organization, you can build a DPT. And if you need help, we’re here for you. Once you’ve created your table, here’s how to interpret the results: Solid, Consistent Giving: If your DPT shows that your donors give consistently year after year, your direct marketing program is healthy. Your focus should be on how to scale up your prospecting efforts. High Donor Attrition: If your DPT shows a high rate of donor attrition—where revenue drops each year—this is a sign that something’s wrong with your marketing strategy. It might be an issue with donor acquisition or cultivation. This is a red flag that needs immediate attention. No Prospecting Data: If you don’t have any numbers because you’re not doing any prospecting, take a copy of the Leadership Institute’s Donor Performance Table to your boss. The future of your organization could depend on starting a program like this. Improving Your Prospecting Program: If your numbers are solid, the next step is to scale up. If your numbers show weaknesses, it’s time to re-evaluate your approach. Write down everything that might be causing problems, prioritize them, and start testing solutions. As soon as you find what works, focus on scaling it up. Every organization will have its unique challenges and solutions, but starting with a solid analysis like the DPT gives you a data-driven understanding of where to focus your efforts. It’s the foundation you need to test, learn, and grow. Final Thoughts: Prospecting might seem like a daunting task, but the long-term benefits make it more than worth the effort. It’s about building a sustainable future for your organization—one that’s backed by data and proven results. Fire away with your challenges, and let’s keep this conversation going.
Unlocking the Art of Storytelling: How to Connect and Persuade
What’s the best approach? What’s the best structure? How do you organize your stories in a way that truly resonates with your audience and moves them to action? These are questions that many of us grapple with. Because storytelling isn’t just about sharing events—it’s about connecting with people on a deeper level. Recently, we’ve talked a lot about the power of storytelling and how it can dramatically enhance our ability to reach our audience. And it’s not just a theory. It’s backed by some of the best communicators out there. Dr. Nick Morgan, one of the nation’s most prominent communications coaches, offers us some profound insights on this subject in his book Power Cues. His advice on how to tell great stories can be a game-changer for anyone looking to make a lasting impact. Let’s dive into some of his key strategies. Start with a Need Before anything else, you need to establish a sense of need with your audience. Abraham Maslow’s hierarchy of needs is a familiar concept, and it’s no surprise that stories connecting to basic needs—like safety—are often the most compelling. What does the future hold? Is there something that should genuinely concern us? Ludwig von Mises suggested that human action is driven by a felt sense of unease. This means that your story should tap into a problem or threat that makes your audience’s hearts beat just a little faster. That’s your starting point. Tap into the Power of Archetypal Stories Once you’ve established the need or concern, it’s time to connect it to one of the five basic human archetypal stories. These are deeply embedded in our collective psyche, and they resonate with us on a fundamental level. Here are the five archetypes: Setting Off on a Quest: The idea of a journey is universally compelling. We all want to champion the hero who is trying to overcome a challenge and right some injustice. But here’s the key—you, as the storyteller, shouldn’t be the hero. If possible, make your audience the hero. Stranger in a Strange Land: This archetype speaks to those times when we feel lost or out of place, perhaps as society is rapidly changing. It taps into feelings of nostalgia and the sense that old norms and values are slipping away. The Love Story: Love stories are timeless, and they’re particularly effective when you’re trying to convey the importance of harmony and connection. Whether it’s a tale of two people learning to understand each other or a narrative about sticking together through thick and thin, this archetype is always relatable. Rags to Riches: The classic underdog story. An ordinary person overcomes hardship and obstacles to achieve tremendous success. This story type gives us hope and reminds us that improvement and fulfillment are within reach. Revenge: This one taps into our desire for justice. The villain is put in his place, and balance is restored. It’s a powerful narrative that appeals to our sense of right and wrong. Organize Your Story into Three Acts With your archetype chosen, the next step is to organize your story in a way that’s easy for your audience to follow. Nick Morgan suggests a three-act structure, which is as effective as it is straightforward: First Act: Introduce the Problem or Threat Lay out the challenge. Tie it to something new, interesting, and relevant to your audience. This is where you grab their attention. Second Act: Raise the Stakes Intensify the situation. What happens if the problem isn’t addressed? This is where you build urgency. Third Act: Resolve with Audience Involvement Pose a question that demands an answer. Invite your audience to be part of the solution. When your audience feels involved in the resolution, they’re much more likely to take action. The Power of Audience Involvement So, how does this work in practice? It’s all about audience involvement. When you invite your audience to participate in solving the problem you’ve presented, you’re not just telling a story—you’re creating a shared experience. This approach can be transformational. It’s no longer just your story; it becomes their story too. Imagine how this can be applied to your fundraising and marketing work. When your donors and supporters feel like they are part of the journey, they are more invested in the outcome. They want to see the story through to its conclusion because they have a role in it.
