CCS Fundraising

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Retirement assets continue to grow with $39.4 trillion held in the U.S. retirement market in 2021. By comparison, donor-advised funds (DAFs), which have garnered much publicity in recent years due to their steady increase in popularity with major donors, totaled $35 billion in 2020, three orders of magnitude less than retirement assets.

That bears repeating. There is 1,000 times more wealth in retirement assets than in DAF assets.

And yet, many fundraisers often overlook retirement assets, most of which are growing tax-free in Individual Retirement Plans and employer-based Defined Contribution Plans like 401(k)s, when discussing charitable giving options with donors.

To inspire transformational giving to nonprofits from one of the largest asset classes available, fundraisers should understand how donors might use their retirement assets for both philanthropic impact and personal financial advantage.

This article will explore:

  • The importance of gift planning culture
  • Favorable conditions and trends pointing towards future increases in philanthropic giving from retirement assets
  • Reasons why fundraisers may be hesitant to engage donors regarding retirement assets
  • Best practices for fundraisers to educate donors about the benefits of giving from retirement accounts.

Why Gift Planning Culture Is Important for All Nonprofits

A gift planning culture is an institutional commitment to donor-centric fundraising with an expanded focus on noncash assets. Fostering a culture of gift planning within a nonprofit offers myriad benefits to the organization and its donors. Importantly, it helps nonprofits create a more robust revenue pipeline in the short- and long-term. In many cases, noncash assets and deferred giving options allow donors to make their largest gifts to charity.

A planned gift is any current or future gift, made during a donor’s lifetime or at death, in consideration of a donor’s overall financial or estate planning. These gifts are holistic in scope and make use of all available gift types and both cash and noncash assets to help a donor make a personally meaningful gift.

The vast majority of household wealth in the U.S. (up to 97%) is held in noncash assets like stocks, real estate, art, businesses, and retirement assets, rather than in cash or checking accounts. Fundraisers must become more effective at transforming relationships with donors from transactional conversations about annual cash gifts to communicating the value of giving noncash assets during and after their lifetime. When this dialogue is more common between fundraisers and donors, the nonprofit can realize an elevated fulfillment of its mission in partnership with committed donors. These donors in turn can achieve their individual philanthropic and financial goals.

While gift planning is most frequently associated with helping Ultra High Net Worth (UHNW) donors diversify and maximize their philanthropic impact, it also provides new pathways for charitably inclined people at various levels of wealth by utilizing common assets like retirement plans.

Focus on Retirement Assets: Current Favorable Industry Trends

The current philanthropic landscape reflects strong market gains over the last forty years. One beneficiary of market growth is retirement assets, which have nearly tripled since 2000.

CCS is beginning to see evidence of the iceberg that is retirement account giving. Early evidence of growth in asset-based giving can be seen in the results from CCS’s Philanthropy Pulse survey. More than half of respondents expect their organization to secure more deferred gift commitments in 2022.

Promisingly, a majority of nonprofits we surveyed reported receiving gifts from noncash sources like donor-advised funds (80%), appreciated assets (61%), and bequests (57%).

CCS confirmed further evidence of the impending flood of giving via retirement assets as seen in the frequency rankings above. Gifts from retirement assets by beneficiary designation or IRA-qualified charitable distribution ranked as the fifth most popular gift type. This is higher than trusts, annuities, and life insurance. However, nearly double the number of survey respondents receive gifts from DAFs (80%) as compared to gifts from retirement plans (46%).

The frequency of gifts from retirement assets compared to DAFs in this survey highlights untapped opportunity in light of the value of these assets in the United States. While DAFs could indeed be funded with retirement assets, there remains remarkable potential for increased giving directly from retirement plans, from donors of varying capacity.

Even as CCS gained valuable insight from the nonprofits surveyed about positive shifts towards gift planning, results also showed untapped potential for nonprofit organizations to increase charitable giving from all types of noncash assets, including retirement assets.

Though the environment is promising for further diversification of donation-relevant assets, it's clear many nonprofits struggle to normalize and integrate noncash asset giving. So, how do fundraisers overcome barriers to engaging donors in gift planning conversations?

Addressing Fundraiser Hesitancy to Lean into Gift Planning

In CCS’s decades of experience, we have seen a few main reasons fundraisers are hesitant to lean into gift planning discussions with donors:

  1. The nonprofit’s gift planning culture is underdeveloped and under-resourced.
  2. The potential complexity of a planned giving strategy deters fundraisers who lack confidence in this type of fundraising.
  3. The supporting systems and operations, including gift acceptance policies and database utilization, often need review and refinement.

Unsurprisingly, CCS’s Philanthropy Pulse survey results confirmed gift planning is the area in which fundraisers have the lowest self-assessed expertise. Nearly two-thirds of responding organizations (65%) felt that their fundraising staff members were only somewhat or not at all knowledgeable about gift planning.

Addressing these issues is relatively simple, though not easy, just as culture change is simple to understand and difficult to implement successfully. Ultimately, nonprofits will need to invest time and money in various mechanisms to institutionalize their gift planning culture.

Consider:

  • Leadership and staff training on the importance of gift planning culture and defining a role for everyone in this holistic method of fundraising
  • Consistent fundraiser professional development that includes conference attendance, webinars (many of which are free), reports and books, external speakers, etc.
  • A formal assessment of the nonprofit’s gift planning culture and systems to identify areas of strength, opportunity, growth, and development
  • Regular opportunities for fundraisers to convene and discuss planned giving strategies for specific donors at all stages of engagement

Taking a few hours per year to educate frontline fundraisers and nonprofit leaders on the basics of securing retirement assets as charitable gifts offers a win-win for both deepening relationships with donors and capturing a greater share of wealth held in noncash assets to impact an organization’s mission. Nonprofits can leverage gift planning to help donors act in their own best financial interests, whether that be mitigating tax burdens or providing an income stream, which positions organizations as impactful partners in their donors’ lives.

Growing Gift Planning with Donors

When organizations commit to building or deepening gift planning culture, it is important to bring donors along on this journey simultaneously. The Giving USA Foundation confirmed nearly half of donors with bequests (40%) learned of such estate planning options from a nonprofit, as opposed to their financial advisor or estate planning attorney. Therefore, fundraisers have an incredible opportunity to shape how a donor views their organization relative to their financial and philanthropic potential.

The CCS Gift Planning Practice Group suggests these quick tips and actionable steps for fundraisers to consider when exploring retirement plans as a giving vehicle with their donors.

  1. Common retirement assets like IRAs and 401(k)s can be given to an organization during the donor’s lifetime or as part of an estate plan.
  2. Any person at age 70.5 can gift up to $100,000 from an IRA to a qualified charity and have that amount satisfy any Required Minimum Distributions (RMDs). This gift will not be treated as a taxable distribution.
  3. The new age at which individuals must begin initiating RMDs is 72. This change went into effect with the SECURE Act, signed into law in December 2019.
  4. Donors who inherit an IRA must take distributions, even if the donor is not yet of retirement age. Donating those funds could help the donor avoid increased income tax liability and gain a charitable tax deduction.

Actionable Steps

  1. Always encourage donors to consult with a tax expert when considering any proposals or gift requests to ensure the donor understands their tax liabilities and potential savings.
  2. Identify potential and current donors who are 70.5+ years old, are currently giving from an IRA, or who may have inherited an IRA for a targeted conversation.
  3. Plan messaging to donors early in the new year to let them know that your organization accepts gifts from retirement plans. This benefits the donor in two ways:
    • The donor can avoid the IRS penalty if the distribution deadline was missed.
    • The donor can capitalize on investment gains such as higher-yield dividend payments that generally occur at the end of Q4 (December 31st).
  4. Ensure your organization’s EIN and other details are easily accessible on your website.
  5. Build in giving from IRAs and other retirement plans into conversation talking points and proposals.
  6. If a donor wants to leave either a specific dollar amount or a percentage of the total assets of their retirement plan to your organization, they first need to check with their plan administrator to ensure that such a beneficiary designation is allowed.

What’s Next?

With a reasonable investment of time and strategy, many more nonprofits can strategically expand their opportunity to secure these simple yet impactful gifts of retirement assets.

On March 29, 2022, the U.S. House of Representatives passed SECURE 2.0, and it’s expected that the U.S. Senate will act on this bill in the coming months. The Senate is basing its bill on the Retirement Savings and Security Act of 2021, so between the two drafts, it is possible there will be significant changes to the funding and disbursement of retirement accounts. Of particular interest to fundraisers is the potential to increase the age of Required Minimum Distributions from age 72 to 75 over the next 10 years.

This piece has been prepared for informational purposes only and is not to be construed as legal or tax advice. Individuals should consult their lawyer, accountant, or tax advisor with regard to such matters.

Exploring gift planning?

If you or your fundraising team is looking to increase your knowledge, planning, and execution in gift planning, CCS Fundraising offers a wide range of services to meet your needs and interests.

CONTACT US TODAY

Meet the Authors

This article was written by members of CCS’s Gift Planning Practice Group.

Christopher Dake

Christopher Dake

CCS Alum

M. Angel Flores, CSPG

M. Angel Flores, CSPG

Senior Vice President

Christianna Robertson

Christianna Robertson

Senior Vice President

Dominic Pepper

Dominic Pepper

CCS Alum

Anne Thomas

Anne Thomas

CCS Alum

At CCS, we often hear from our nonprofit clients that gift officers have little interest in considering small donors as potential major gift prospects. At first glance, the chances seem slim that a donor who just gave $50 will go on to give $50,000. However, upon closer analysis of an organization’s donor data, we often find that a meaningful number of major donors started out by giving a gift under $250.

CCS has developed proprietary coding to analyze the major donor pathway and discover how small donors were converted to major donors in the past. The charts below demonstrate the results of a recent major donor pathway analysis we completed with a human service organization, which answered three key questions:

  1. How many of the organization’s major donors started out as smaller donors?
  2. How long does it take to convert a small donor to a major donor?
  3. What is the relationship between the size of the donor’s first gift and the time it takes to convert to a major donor?

How Many Major Donors Started Out Small?

This human service organization defines a major gift as a donation of $25,000 or more. Upon completing our analysis, CCS found that among the organization’s 732 major donors, 213 started with a first gift of less than $250. That means that almost 1 in 3 major donors were acquired as rather small donors.

This chart demonstrates that smaller donors should not automatically be ignored as potential major gift prospects if other evidence suggests that they could upgrade to the major giving level.

How Long Did It Take to Convert Small Donors to Major Donors?

The following chart shows how many years it took for each of the 732 donors to start giving at the $25,000+ level. We learned that it can take quite some time for small donors to convert to major donors:

  • Approximately 48% of today’s major donors took at least five years to start giving major gifts
  • Approximately 33% took at least 10 years
  • Approximately 7% took more than 20 years

There are many reasons why it may take small donors years to start giving at a higher level. Some donors may have taken years to generate enough wealth to make a major gift. Others may have had the capacity for major giving earlier but were not yet solicited. Fundraisers may interpret this chart as evidence that major gift asks should be made sooner for some compelling prospects, looking to “slide this chart to the left.”

What Is the Relationship Between the First Gift Size and the Time It Takes to Give a Major Gift?

In our analysis, CCS found that the smaller a donor’s first gift, the longer it took for them to give a major gift. Nevertheless, 1 in 10 donors who converted to a major donor within three years started with a gift of $100 or less.

This analysis proves that this human service organization had small donors with major gift potential. The next question is “which of today’s small donors are the most likely to become major donors, like the 200+ who did so in the past?”

To understand which small donors have the potential to convert, CCS pairs major donor pathway analysis with predictive modeling. Predictive modeling uses a variety of donor characteristics to forecast which donors are likely to give a large gift to the organization, resulting in an actionable list of prospects for gift officers to further qualify and cultivate.

As a result of understanding how small donors can become major donors, nonprofits can uncover new prospects for making transformational gifts.

Want to start a conversation?

CCS Fundraising's data analytics services help nonprofits elevate their major giving strategy.

CONTACT US TODAY

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The total long-term debt of the U.S. nonprofit sector is estimated to lie between $440 billion and $550 billion. Nonprofits spend over $20 billion each year on interest.

If your organization has debt to address, you’re not alone.

A campaign that includes debt reduction as a priority can feel different from more traditional campaign targets like new construction, endowment, or programmatic growth.

The good news: debt-reduction campaigns use the same tried-and-true fundraising fundamentals.

However, there are key differences in an organization’s approach to the case for support, campaign leadership, donor prospecting and stewardship, and the overall campaign timeline and plan.

Below, we outline tried-and-true tenets to keep your debt-reduction campaign on track, while also incorporating 21st-century considerations for donors in today’s philanthropic landscape.

Making the Case

Don’t bury the lede

You may feel an impulse to include debt reduction within a larger campaign. While this approach is useful in certain circumstances, a debt-reduction campaign can stand on its own. Be transparent in materials and conversations about the amount of debt incurred, the campaign’s overall financial goal, and other metrics underpinning your organization.

Look forward, not back

Focus on the future. This is not the time to blame others for why your organization may be in this situation. Proactively demonstrate how debt has strategically paved the way for growth. Describe, in detail, how retiring debt will ignite a new era of achieving your mission.

Quantify the impact

Articulate the annual fiscal burden of servicing the debt—and just as critically, how you will be able to invest that capital into your programs and community served once the debt is retired.

Keep it polished

Debt-reduction campaigns can be perceived as lacking glamour. However, without a new building or other elements to showcase in donor materials, it’s even more critical to create polished, visually appealing materials. 21st-century donors are sticklers for visuals and design. Use photos that make your impact tangible; keep text crisp and distilled.

Leadership

Lead by example

Finding supporters who can not only make a gift, but who also have the capacity to influence others, is key to any campaign. Donors with outsized social sway often play a particularly pivotal role in debt-reduction campaigns. Early prospects may not necessarily be your largest donors; rather, look for those with the power to excite others.

Build buy-in

An in-depth understanding of the case is key for both external and internal stakeholders. Ensure finance staff and others are engaged early to lend input on the campaign’s messaging, vision, and roadmap. Deliberate early work here often reduces headwinds down the road.

Involve entrepreneurship-fluent leaders

Consider: how many of your board leaders have run a business or public entity that has leveraged financing to grow? These leaders can play a particularly powerful role as advocates who understand first-hand how debt drives growth and innovation, but also must be responsibly managed. Allies equipped with financial fluency are essential for building credibility and ensuring everyone on your campaign cabinet has the confidence and lexicon to radiate confidence regarding the campaign’s efforts.

Prospects

Focus on the “right” donors

An important basic fundraising best practice is ensuring a bespoke approach for each donor. This is essential for a debt-reduction campaign. Aligning donors with the right case elements, the right solicitor(s), and the right moment will set your organization up for success. Keep in mind that this campaign may not be for every donor—and that’s okay.

Anchor prospecting in data

Finding the right donors is key. Ensuring a request of the appropriate amount is equally as important. CCS’s Feasibility Study and Data Analytics offerings can provide a comprehensive approach to building out a prospect list. Benchmarking each donor’s giving pattern at your organization and other nonprofits in your region and/or sector is also helpful. Fundraising is both an art and a science—these steps will ensure an intentional, data-driven approach.

Future-focus, future donors

While a debt-reduction campaign is rarely effective at cultivating a significant number of new prospects, it can help you hone a conversation focused on the future. Donors should reflect multiple generations of support and spheres of influence; don’t automatically write off Millennial and Gen Z supporters as potential campaign contributors.

Plan

Be candid

By being honest and open about the decision-making process leading up to this point, sharing the impact of making a change, and explaining that clearly, the right donors will understand the importance of this moment.

Set a timeline—and stick to it

Without a building or major program launch to chart a timeline, spurring donors to act, and act now, is key. Consider leveraging matches and challenges to play an even more prominent role in order to drive donors to act.

Take a balanced approach

Equip leadership, major gift officers, and other donor-facing staff with both tangible data and qualitative stories that project positive urgency for the Case.

Celebrate your success

Your plan should absolutely include a public celebration as part of the endpoint of your campaign. Without a building to open or a new program to launch, it’s critical to give your leadership, staff, and community a well-deserved victory. A “burn the mortgage” party is always a motivator!

With the above considerations, we’re confident you can take the steps needed to begin, or re-charge, your debt reduction campaign.

Considering a campaign?

CCS stands ready to serve as your partner in reaching your goals.

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As the summer break approaches, and with it the conclusion of the annual fund, it is a moment to take stock and evaluate your achievements this year. It is also a critical juncture at which to put in place strategies to ensure you realize even greater success in the year ahead. Those schools which see most progress with their annual giving programs are those that keep up activity throughout the quieter summer months.

Analyze the Past Year

Undertaking a detailed assessment of giving trends (for example, donor acquisition and retention, or alumni and parent giving) for the past year will help you form a comprehensive basis from which to build out your annual fund strategy for the year ahead. It is crucial to truly understand:

  • Your donor pipeline: where have you had the most success moving donors through your pipeline to higher giving levels?
  • Campaign success: what messaging, appeals, and engagement strategies have inspired greater philanthropy and secured the greatest number of dollars? Can you identify the ROI for each appeal to help create efficient and effective strategies?
  • Staff resource: has the time your fundraising team invested in managing your donor segments realized the returns you had projected?

While it may be easiest to launch the next annual campaign with your existing formula, this approach will inhibit your capacity to fully reach the depths of your donor pool. Conducting an honest analysis to answer the questions above will reveal where changes, even small ones, could inspire even greater philanthropic support.

Exemplary annual giving programs take the time to refresh (or create) differentiated strategies for their varying constituent groups. Considering the messages and communication channels which resonate most strongly with your recent and more distant alum, parents, past parents, and friends will serve to hold them close to your mission year after year.

Over time, your prospect pool both grows and changes. Younger alums differ from older alums in their philanthropic behavior and ambitions, as do parents and past parents. A frank assessment of your staffing allocation can shine light on whether you are focusing your resource in the most effective way to reflect each constituent group’s current needs and giving behaviors and foster their philanthropic relationship with your school most effectively.

Summertime Stewardship

The summer break also presents an opportunity to focus on donor stewardship. In addition to communicating to your entire donor community at yearend the impact of their giving, ensuring specific donor segments are given individual consideration will garner future value. New donors can be warmly welcomed to your philanthropic community with additional touchpoints to carry them forward into your retained donor pool. Donors celebrating notable giving anniversaries can be personally acknowledged with extra touches to those received at the time of their gift. Taking stock of your community to identify those donors whose giving merits thoughtful stewardship during the summer months will generate lasting goodwill.

Giving Society Strategy

An engaging set of giving societies will have a demonstrable impact for any annual program by developing a pipeline of major gift prospects and holding existing ones close. To fully maximize their potential requires thoughtful strategic intention behind a donor’s entry to your threshold giving society and their journey through higher levels. The summer months are an ideal time to review the pipeline for your first tier giving society and to consider:

  • Do you have a clear set of top prospects who will be invited to join this giving society in the coming year and a plan for their cultivation?
  • Which donors will be invited to move up to the next tier giving society and how will you compel them to do so?

Crafting a strategy which answers these questions will provide you with a series of messages and actions to implement over the coming year to ensure your future major donors are kept close to your school and its mission.

Confirming Your Campaign Goal

How do you arrive at your annual fund campaign goal each year? Is it based upon analysis of your donor pool’s giving potential and historical giving behavior or is the gap between the operational budget and expected tuition taken as the figure for the annual goal? By necessity, many schools take the latter path. Yet, collaboration between finance and advancement teams to determine a campaign goal which accounts for both institutional need and pipeline potential can result in greater understanding, and support for, the work of the development office. Thoughtful goal setting of this kind can also help to avoid short-termism in fundraising efforts wherein major gift officers prioritize securing a gift now over cultivating a donor for a larger gift in the future.

Summary

Each year of an annual fund campaign is deeply interlinked. Amplifying the collective value of each year’s annual fund efforts requires sophisticated data analysis of donor behavior coupled with thoughtful and active management of the prospect pipeline in response to the trends identified. The upcoming summer break is your moment to start planning.

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Over the past two years, COVID-19 has highlighted the magnitude of social and economic disparities while racially-motivated violence has sparked a national conversation about justice and structural racism.

In 2020, nonprofits and philanthropists propelled the important effort to address these disparities by investing in long-term systemic solutions to advance equity and wellbeing for all Americans. According to Candid, donations have surged to $8.8 billion for racial equity and $13.6 billion to COVID-19 relief efforts in the US to date. 

Two years later, change-makers continue to examine and question the large-scale and long-term systems that impact our daily lives and disproportionately disadvantage some communities in the US.

WHAT DOES “Systems CHANGE” MEAN?

The term “systems” can be nebulous or even ominous. The systems that surround us are intentional or unintentional, formal or informal practices that dictate how something is done. Systems include health, legal, education, and many more seen and unseen. Interconnected, they tether us together in a web that forces us to interact with their structures.

Today, the systems we inhabit help some people to thrive, while leaving many others behind to struggle and suffer based on race, ethnicity, economic status, gender, location, and other human and societal differences. Systems change has therefore become a term that is widely used by the nonprofit and philanthropic community to refer to social impact initiatives for societal equity and improvement.

To change a system first you must find its shape, scope and reach, and you must name it.

CHANGING THE SYSTEM THAT DEFAULTS TO EMERGENCY SERVICES.

In the systems that dictate health and wellbeing, a gulf exists between individuals and communities that have access to the essential conditions needed to live healthy lives and those who do not. These essential conditions include security, access to education, meaningful work, housing, a clean environment, and reliable transportation. Absence of these humane circumstances increases the demand for emergency services like acute care for illness or injury, addiction and recovery services, criminal justice, violence, and emergency services, environmental clean-up, unemployment support, food services, and shelter for the un-housed.

Changing systems that are inequitable and exclusionary will have positive long-term societal, and financial rewards. It will also require investment in time, talent, and money. Now more than ever, we need to build a future where nonprofits and funders work together to address the conditions required for equitable health and well-being.

HOW CAN NONPROFITS FUNDRAISE FOR SYSTEMS CHANGE TODAY?

1. Focus on foundations. 

Charitable gifts made by individuals are essential for nonprofits, however nonprofits seeking financial support for programs that initiate systems change should consider approaching foundations first. There are an estimated 85,000 grantmaking foundation in the US, and in 2021 their giving totaled over $88.5 Billion. Public, private, and family foundations are pursuing nonprofit partners using terms such as civic participation, democracy, human rights, human services, and community and economic development to identify the types of programing they wish to fund.

2. Name interconnected problems.

Social problems rarely exist in a vacuum. Addressing systematic inequity requires untangling layers of complex contributing factors. Factors that lead to social problems include gender, race, education, geographic location, ability, occupation, immigration status, religion and more. Because the struggles faced by many communities intersect, nonprofits seeking systems change foundation funding need a well-written case statement that streamlines the problems and provides clear strategies for the positive impact they will wish to have in solving them.

3. Investment equals invention.

Foundations and funders everywhere have a chance to be cutting edge investors in co-creating a new and more equitable future. Crafting thoughtful proposals and grant applications that outline opportunities for invention is critical for nonprofit fundraising success.

Partner with CCS to gain innovative fundraising strategies.

CCS Fundraising is committed to working with nonprofits to:

  • Identify and cultivate relationships with funders poised to make meaningful change,
  • Craft thoughtful case-statements to convey program value,
  • Brief foundation decision makers in direct conversation, and
  • Guide leaders through the proposal and grant writing cycle that leads to funding.

Philanthropy will play a critical role in ensuring systems evolve into something more equitable and beneficial for all of us.

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March 2022 marks two years since the World Health Organization declared COVID-19 a pandemic. This marker provides a natural point for reflection for nonprofit boards to assess how they have reacted to a changing environment and how they can proactively plan for their organization’s future.

CCS has recently published insights on developing board benchmarking reports and integrating diversity, equity, and inclusion (DEI) practices into board activities. In this article, we will discuss four areas where we have seen cause disruption for nonprofit boards in recent months:

  1. Job market turbulence
  2. Budget reallocation
  3. Continued virtual operations
  4. Antiquated procedures and materials

In each section, we provide a set of questions designed to generate reflective discussions for nonprofit boards as they seek to optimize their operations.

1. The Impact of Job Market Turbulence on Creating Board Fatigue and Vacancies

The Great Resignation occupies the minds of many board leaders. Board members may be dealing with understaffed teams at their place of work or they may be on the move themselves. This turbulence can make board participation a lower priority and can lead to vacancies in boardrooms as individuals grapple with the Great Resignation.

As the Association of Governing Boards of Universities and Colleges (AGB) writes, “highly effective trustees are a prerequisite for a highly effective board.” When considering your board’s stability, ask:

  • Do you find trustees are preoccupied with external pressures?
  • Are there multiple vacancies on your board? If so, why?
  • How recently has your board reviewed its onboarding and mentoring processes?
  • How effective is your nominating committee at staying true to institutional priorities?

2. The Drain of Budget Reallocation on Fiduciary Management

Many boards have needed to play catch-up with budget allocations due to the unforeseen financial stress of the pandemic. After two years of organizations’ expenses being dominated by pandemic concerns, boards need to recalibrate what expenses will be critical and enduring and what fundraising goals will be relevant in the next year and beyond.

Moreover, boards need to be ready to meet these fundraising goals. When asked to rank 18 areas of board responsibility in terms of importance, 70% of chief executives ranked fundraising as very important. Fundraising was prioritized over a board’s ability to think strategically, guide the direction of the organization, possess knowledge of organizational programs, and other factors.

Understanding the goal that your organization is working towards will help a board stay the course when it comes to budget allocations and fundraising. As your board reevaluates the budget, key questions to consider include:

  • Is your board ready to embrace the new reality of what is feasible in this environment?
  • Is your board informed and comfortable asking for gifts?
  • Does your board feel connected to the community your organization is serving?

3. The TENDENCY TO DISENGAGE IN a Virtual World

Addressing board vacancies and budget priorities must be balanced with engaging current board members. There is no doubt that video conferencing has made us all more accessible, but more meetings do not necessarily translate into better efficiency or stronger connections. Even prior to the pandemic, a study found that 71% of senior managers claimed that their meetings tended to be unproductive and inefficient—common traps were meetings that are too frequent, poorly timed, or badly run. Planning for meetings, communicating goals, and clearly outlining roles are undervalued tools that determine the success of a meeting.

As we enter the third year of the pandemic, many people are growing fatigued of Zoom. With the advent of hybrid meetings, boards need to rethink engagement strategies to inspire board members’ participation. We’ve seen boards get creative with these engagement strategies—for example, the board of a large public university invited their marching band to spice up a recent board meeting.

Even if you don’t have a marching band, you can still inject board meetings with more energy and inspiration! Consider the following questions to ensure that meetings and other operating policies promote board engagement:

  • Do board members understand their roles post pandemic?
  • How comfortable is your board with changed procedures and expectations?
  • Is there consensus around the new norms for meetings and events?
  • Have trustees tried new ways to socialize in place of in-person informal gatherings? 

4. The Ineffectiveness of Antiquated Procedures and Materials

Upheavals in how we operate may require that institutions stop and evaluate the mechanics of their board. Yesterday’s board playbook may no longer be sufficient; procedures and manuals need to be reviewed and potentially revised.

It is likely that recent challenges have exposed vulnerabilities in board operating structures. To get started on bringing procedures and materials up to date, questions to consider include:

  • Is there a current crisis management plan in place?
  • Does the succession plan need to be reevaluated?
  • Are fact sheets up to date?
  • Has the mission of the board shifted?
  • Do board manuals need to be revamped?
  • Should board recruitment be updated to keep track with DEI efforts?

A well-functioning board is essential to helping a nonprofit achieve its mission. It’s worth the extra attention and investment to ensure that your organization’s board is optimized for today’s world. With careful consideration on these four areas, board chairs and staff leadership can improve the board’s operations, feel more in control during unpredictable times, and bring more satisfaction and sense of purpose to their board.

Want to start a conversation?

CCS Fundraising helps nonprofits craft individualized approaches and actionable next steps for enhancing their board performance.

CONTACT US TODAY

The first article in our annual fund series gave an overview of the critical role that the annual fund plays in a school’s financial sustainability and provided several best practices for your school’s fundraising strategy. In this article, we will dive deeper on a subject discussed in that article: leveraging collaboration across campus to drive institutional alignment and maximize annual fund performance.

Effective communication and coordination across development, finance, curricular program, and enrollment teams is crucial for setting appropriate goals, developing compelling themes for annual fund appeals based on your school’s needs, and creating and executing effective engagement strategies across your donor base.

Goal-Setting

Involving voices from across your school’s key teams and functions is essential in setting appropriate yet aspirational targets for your annual fund performance. For example, if either a development or business office sets annual fund goals in a vacuum, they risk missing out on crucial context that should inform strategic decision-making.

While development teams understandably have the clearest picture of historical giving trends and recent fundraising performance, they can get a deeper understanding of the school’s overall financial needs for the coming year from the Head of School. Conversely, business offices might have a firmer grasp on the school’s financial metrics but are less aware of the capacity of the school’s donor base, prospect potential, or the realistic growth plan for the development team.

Fostering open communication and dialogue between these teams helps to build a collective understanding of goals and strategy, as well as a shared sense of ownership of results and performance. Schools should prioritize the establishment of processes for regular communication and sharing of relevant information to promote understanding of both the school’s overarching approach to its annual fund strategy, and teams’ individual roles in setting financial targets. Consider:

  • Weekly or bi-weekly meetings with administrative leadership to discuss fundraising progress
  • Monthly reports to the CFO
  • Quarterly progress reports
  • Space on Board meeting agendas to present fundraising priorities and progress towards stated goals
  • Including administrative leadership in development committee meetings for continuity between departments

Developing the Annual Fund Theme(s)

This need for collaboration and communication is also a key component for creating a compelling theme for your appeals. An effective case for support not only resonates effectively with donors but also addresses the most important programmatic and operating needs of the school for the year. Building a set of funding priorities that effectively accomplishes both objectives should not fall on the development team’s shoulders alone.

Development teams should engage with faculty and program staff to learn about exciting new priorities for the coming year. Marketing and communications teams should be engaged to promote alignment between the year’s fundraising theme and broader marketing strategies surrounding the framing, language, and focus of a message. While development staff have the most complete sense of what priorities will resonate most with the school’s donor base, coordination across campus to gain broader perspective on the needs of the school will enhance the annual fund theme and ensure that it addresses the school’s needs and priorities for the coming year.

Annual Fund Priorities Without CollaborationAnnual Fund Priorities With Collaboration
Financial AidHigh quality affordable education for all
Professional DevelopmentAttracting and retaining premier educators
Diversity, Equity & InclusionMission meeting the moment
Area of greatest needSustainability through endowment
Other / ProgrammingRobust athletics, arts, and STEAM

Donor Engagement Strategies

Finally, effective collaboration can also play a vital role in designing creative, successful donor engagement strategies. Engaging new families around philanthropic support is a key challenge for many schools year after year. Development teams can and should work with enrollment and admissions to find innovative ways to help new families feel welcomed and integrated into the school community, while emphasizing and highlighting the important role that development and fundraising revenue play in the school’s success.

Similarly, development teams can coordinate with alumni relations staff to design more effective engagement strategies for graduates across different age groups. Making sure that your development office has a strategic approach to maintaining relationships with this vital constituency is critical to promoting a culture of philanthropy. Frequent and proactive communication between these groups can boost donor engagement and provide opportunities to grow the annual fund sustainably and effectively.

Conclusion

Collaborating across your school’s teams creates greater alignment on the goals, priorities, and tactics that underpin the success of your annual fund year-over-year. This coordination of planning, messaging, and execution will equip your development team with the resources it needs to tell the school’s story effectively and to help donors across various constituencies understand the role that the Annual Fund plays in the school’s financial sustainability. Further, embracing this collaborative mindset helps to promote a shared internal understanding of the importance of development. In this way, development can come to be thought of more as an institutional priority and can be integrated more intentionally to advance the school’s broader strategic planning.

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On Ash Wednesday, Catholics worldwide will embark on a 40-day Lenten journey. This period of prayer, reflection, and fasting is also considered a time of almsgiving—a moment to reflect on one’s blessings and share one’s gifts and talents with the broader community.

Many parishes across the country have served as a lifeline to their local communities by spiritually nurturing parishioners and offering care and support services to those most in need. As the faithful answer God’s call to service and prepare for the mysteries of Holy Week, parishes will need to calibrate this year’s approach to fundraising to meet ongoing budgetary needs and thoughtfully prepare for the coming of Easter. This four-week plan will serve to help drive parish revenue, strengthen digital communities, and streamline your Holy Week communications strategy.

WEEK 1 – EVALUATION PERIOD

As many parishes navigate a hybrid virtual and in-person fundraising approach, it is essential to evaluate your modes of communication and develop a viable timeline in advance of Easter. Consider asking yourself the below questions to determine how you will disseminate information in the weeks ahead.

Parish Checklist:

  • Does our parish offer electronic and in-person giving?
  • Were we satisfied with our e-giving provider last year?
  • Is our electronic giving link clearly visible on our parish website?
  • How can we develop a standardized parishioner experience for those in person and those who are joining us virtually?
  • Can e-blasts and/or automated calls be administered weekly informing parishioners of relevant Lenten updates?
  • Is our parish actively gathering contact information for outreach? Are we engaging with ministries to create a more robust email list?
  • Does our parish’s Easter mailing feature our electronic and in-person giving information?
  • Are the messages and visuals standardized between online and in-person giving?

To help drive parish revenue, make sure electronic giving links are prominent on your parish website. Can you find your e-giving link in 10 seconds or less? For parishioners that continue to use envelopes, provide clear mailing and drop off instructions on your parish website that align with your current safety protocols.

WEEK 2 – DEVELOP YOUR CASE

The pandemic has presented many costs for parishes as they continue to invest in technology to remain connected, pay the salaries of devoted personnel, and prioritize the sanitization of church property. It has also reinvigorated many spiritual communities and increased demand for parish programs. Consider developing a case for support to clearly articulate your parish’s financial needs during Lent and beyond.

  • Highlight the support services that you continue to provide to your local community.
  • Include important facts and figures to reinforce the need for financial support. Consider listing the required monthly expenses to maintain the parish and actual offertory figures. Remember, many parishioners are unaware of the associated costs to maintain their spiritual home. Use this time to educate and inform them. This call to action will certainly garner one-time gifts but can also incite sustained financial support.
  • Please remember to thank lay leaders, parish staff, and parishioners in your communication channels for their unwavering support and leadership.
  • Communicate beyond words; images can be very helpful in quickly communicating your impact. Ensure that you include standardized images in your in-person bulletin as well as on your parish’s donation page.

WEEK 3 – SHARE YOUR MESSAGE

Now that you have ensured your giving link is clearly displayed on your website and that your needs have been vetted and thoughtfully outlined, begin articulating your needs to the parish community through all relevant communication streams.

  • Reinforce principles of stewardship by posting Lenten reflections on social media.
  • Share your Holy Week Mass schedule through email blasts, social media handles, automated calls, and bulletin inserts.
  • Remember the Rule of Seven, a marketing principle that purports people need to hear a message seven times before acting. Always include your electronic giving information in written and digital communication to encourage participation.
  • Encourage parishioners to invite friends and family to “like” or join your parish’s Facebook, Instagram, or Twitter page as you begin to share relevant updates and information.

Make giving easy for parishioners! Tips to consider:

  • Written communication: Make sure all mailed or printed communication includes a QR code that links directly to your electronic giving platform or parish website.
  • Livestream: For parishes who continue to livestream Mass, make sure your e-giving link is clearly displayed in the message portion of your post. Consider including a quick note in each livestream and/or social media post.
  • Verbalize your offertory request during the livestream of Mass! After the Gospel and Prayers of the Faithful, invite parishioners and viewers to participate in the offertory collection or make their Easter gift by using your parish’s secure electronic giving link.
  • If using Facebook to stream Mass, consider identifying an administrator or lay leader that can act as a “digital usher.” By logging in on your parish Facebook account, the user can post comments to remind viewers to participate virtually in the offertory process.
  • If you are celebrating Mass in-person, simply make an ask either prior to the offertory or during the announcements.

WEEK 4 – REITERATE MESSAGE

Offertory support is critical to funding vitally important parish programs, the upkeep of facilities, costs associated with technology, and other ongoing expenses. Remember to reinforce this call to action during Holy Week leading up to Easter Sunday. By implementing these best practices, you can achieve your fundraising goals and enrich your Easter celebration!

In the fundraising world, we all sit on mountains of data. We rely on that data to develop donor engagement strategies and measure our success; but having the data and communicating the data are two very different things. Synthesizing and sharing fundraising data can stimulate discussions about fundraising can elevate an organization’s culture of philanthropy and inspire prospect and donor engagement.

Here we share six key steps to communicate donor and fundraising data more effectively to inspire action:

  1. Understand the story you wish to convey and state it clearly.
  2. Identify your audience.
  3. Articulate a call to action.
  4. Isolate the data you need.
  5. Develop a visualization that presents the relevant data.
  6. Anticipate questions or areas of confusion.

1. UNDERSTAND THE STORY YOU WISH TO CONVEY

It may surprise you to learn that the first step is to start with a story rather than a data set. Data visualization can help fundraisers tell stories about their work more effectively. But what is the story you wish to tell? Maybe you are trying to illustrate that alumni engagement programs have helped to increase alumni giving for millennial graduates. Perhaps you want to illustrate that your major gifts program has helped to increase the average size of donations at your organization. Or you might hope to convey that your nonprofit is ready to embark on a campaign planning study to test an ambitious fundraising goal.

Before you begin to crunch numbers or design a presentation, give yourself time to identify and summarize the story you wish to tell or the question your story will answer.

2. IDENTIFY YOUR AUDIENCE

Think about who you will be telling this story to. Is it the organization’s CEO? Or the Chair of the Board of Trustees? Perhaps it is the Development Committee. Ask yourself, “What do I want this person or group to learn? How do they best understand and digest information? What do I want them to do with the information that I share?”

As you prepare to share information and data with your audience, keep in mind that different audiences will receive information in different ways. Too much detail may confuse certain audiences. Meanwhile, too little data can create more questions than answers. Keep in mind that both qualitative and quantitative data can successfully engage your audience.

3. ARTICULATE A CALL TO ACTION

A call to action will help your audience understand what is expected of them. Are you sharing this story because you need your CEO to change a policy or program? Or does your story help your Board decide how to allocate additional resources? Has an initiative not produced the return on investment your executive director was expecting, and you need to consider changing course? Or are you asking your Trustees to invest in a project that can widen your nonprofits circle of support?  

If you spend time clearly expressing the specific action you want your audience to consider, you will have a much easier time engaging your audience and ensuring they focus on the most important priorities. Data can be a powerful voice and persuasive communication tool that should support and emphasize your story and call to action.

4. ISOLATE THE DATA YOU NEED

These days, nonprofits are swimming in both qualitative and quantitative fundraising data. This can make it hard to sift through the numbers and isolate the metrics required to tell a specific story to a specific audience. But when we take the time to isolate the data set that is essential to conveying your story, your audience will experience more clarity and less confusion.

For example, imagine that you are trying to convey to the president of a college that increasing the number of front-line fundraisers at your organization has improved fundraising outcomes. You are asking the president to sustain current staffing levels, despite the need for budget cuts at the institution. Although it may be tempting to share a wide variety of metrics, the president will be better able to absorb the story and call to action with simple, clear information. Consider using only a few key pieces of data, such as average gift size over time.

5. DEVELOP A VISUALIZATION

Whether the data visualization is a chart, graph, diagram, or illustration, we recommend that your first step in creating a visualization is to sketch possible visuals that could tell the story you wish to share. You don’t need to be an artist! Studies suggest that handwriting and drawing engages the brain more than typing on a keyboard or moving a mouse, so using a pencil and paper as a jumping off place can help you develop a visual that you wouldn’t have necessarily considered when sitting in front of a screen.[1] [2]

4 Tips for Developing a Visualization:

  • Sketch First | Always begin by sketching ideas on paper before creating on the computer
  • Consistency is Key | Watch for consistency in colors, patterns, symbols, scales, units, labels
  • Title Matters | Consider the title carefully, making sure it articulates the story told by the data or reflects your call to action
  • Simple is Best | Strive for simplicity and avoid effects that don’t contribute to your audiences’ understanding of the concept

After sketching some ideas, recreate them using the tools available to you. Many of us can access Microsoft Excel and PowerPoint or Google Charts. Free tools also include RAWGraphs, Datawrapper, and Lyra. With some practice and exploration, all these tools offer the ability to take simple data and transform it into a powerful visualization.

6. ANTICIPATE QUESTIONS OR AREAS OF CONFUSION

Once you have created a visual that seems to clearly tell your story and articulate a call to action for your audience, take a deep breath. You are almost done! We suggest that you print out your visual, put it in a folder, and set it aside for 24 hours. When you look at it with fresh eyes the next day, imagine that you are the audience and think of some questions they might ask. This isn’t easy! In fact, you may want to find a trusted advisor or colleague to do this with you. Ask them to share their reactions, questions, or areas of misunderstanding. This feedback will help you refine your data visualization and approach your audience with more confidence.

To create clear and concise visuals, we recommended you follow the six key steps outlined above. These strategies will help you to share fundraising data that helps your nonprofit’s decision-makers understand the story you are trying to tell, engages them in constructive conversations, and inspires action to fulfill your mission.

[1] Ose Askvik et al. (2020). The Importance of Cursive Handwriting Over Typewriting for Learning in the Classroom: A High-Density EEG Study of 12-Year-Old Children and Young Adults, Frontiers in Psychology.

[2] Nancy Olson (2016). Three Ways That Handwriting With a Pen Positively Affects Your Brain, Forbes.

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Looking to make a move, but unsure if now is the right time? That was me in 2021. With a little faith and a lot of strategy, you can be successful in making a career move during the pandemic.

Like most other sectors, the nonprofit sector has experienced its ups and downs since the onset of the pandemic as we all become adjusted to this new normal. But nonprofits are resilient, forward-thinking, and live out their missions to the people they serve no matter what. That is what makes them special and is also the reason why, even amid a pandemic, 2020 was a record year for philanthropy to nonprofits.

Below, I offer six tips for young professionals who are seeking new roles to advance their careers.

1) Be reflective

One of the greatest advantages you can give yourself during your job search is to understand what inspires and motivates you. Can you answer this question, “what animates you”? Taking the time at the beginning of your search to reflect on this will save you time, money, and will focus your job search on roles you actually want to pursue. Ask yourself “if I had to do the tasks in the job description for the next 3-5 years, could I?” and “what about the roles I am seeking sounds the most interesting?” Furthermore, ask “what are my strengths and what type of projects do I enjoy?” At the end of the day, you do your best work when you believe in the work you are doing, so take the time to think about what that might be when you begin your job search journey.  

2) Think about your foundation

Building a career is like building a house. You have likely started drafting blueprints for your career and now it is time to decide the layout and lay the foundation of your professional future. A strong, sturdy foundation is the backbone of any house, and without it, the walls would collapse in on themselves; the decisions you make in your early career are no different. You want to make sure you are setting yourself up for success for when it is time to build the roof or build that additional wing ten years from now. Ask yourself “what skills do I have? Where are my opportunities to grow? Will this job that I am considering help me build my foundation or grow my toolbox?”

3) Reach out

Young professionals often make the mistake of trying to “go it alone” during the job search. Make it known to your friends, family, and most importantly your academic and professional network that you are searching. You want people to think of you when they see an opportunity cross their desk. Be as specific as possible with your network. For example, “I am seeking roles in the X sector of nonprofits, and looking for X, Y, Z positions, which are entry- to mid-level career roles, in X, Y, Z cities. Could you keep me in mind? Could you think of any current openings that describe this? Would you be on the lookout for me?” The last part is the most important part—ask them to help you!

Finally, nonprofits are built on relationships. You’d be surprised at how successful you might be reaching out to folks in the positions you are applying for or other staff in the organization. Reach out to them, be honest with your intention, and ask them to provide you with details about the day-to-day at the organization or describe what kind of work is done in the role you seek.

4) Your identity and you

It is important that you feel safe, validated, and welcomed as it relates to any aspect of your identity in the workplace, including race, ethnicity, gender identity, gender expression, sexual orientation, ability, and other identities. Seek out data about the organization’s values during the interview process. For example, you could ask about the employee resources groups (ERGs) available to staff, or you could ask to see a list of comprehensive benefits. The answers to those questions can reveal information about the culture of an organization. For example, does the organization have robust ERGs? Does the organization offer time off for religious holidays? Does the organization have healthcare plans that are inclusive to trans and gender-nonconforming folks? Does the organization have universal parental leave regardless of a parent’s gender? All these answers can signal how an organization takes care of its people.

5) Challenge yourself

Consider applying even if you don’t meet every single experience requirement to a T. Instead, you should consider positions that will challenge you to grow and develop professionally. If you are applying for jobs where you can achieve all that is required on day one, there is no room to grow. That is why tip one and two are critical to think about when you begin on your job search journey. A manager or direct supervisor shouldn’t expect that you know how to achieve every aspect of the role and should be willing to guide you in the beginning of your work together.

6) Keep going

Finally, and maybe most importantly, keep going. Amid a turbulent employment environment, the marketplace can often feel over-saturated. Plan for this. Create a timeline for yourself with contingencies as it will likely take longer than you think it will. By setting yourself up, whether financially, mentally, or otherwise from the onset, you eliminate (or at least reduce) the stress associated with the “I have to take this job to live” mentality. Know that rejection is part of this process and reflect on how you digest rejection—what time will you need to just take a break from looking or writing another cover letter? There are many nonprofits that are staffing back up, organizing and planning for fundraising campaigns, and making investments in their people—there is a job out there for you.

Being intentional about the decisions you are making as you think about your next move will pay off in dividends. You got this!

SEARCHING FOR A JOB THAT MAKES A SOCIAL IMPACT?

CCS is hiring for numerous roles across departments. Check out our Careers page to learn more!

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