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Development, Fundraising

Grow Your Monthly Giving Program: Part 1

by Kent Vanderwood
June 23, 2021

“Don’t judge each day by the harvest you reap, but by the seeds you plant.” (Mark Victor Hansen)

Building a strong monthly giving program is like planting seeds. Just like any crop, it will not grow until it is planted, and it will not be planted unless you get started. Today may be the right time for your organization to start planting a monthly giving program.

But first, a definition: “Monthly giving is a program that cultivates an ongoing, committed giving relationship between a donor and your organization. Monthly donors are those donors in your database who have agreed to support your organization with a determined amount each month.” They are also called systematic donors or “sustaining” gifts. An organization will often name their monthly giving program, such as the Champion’s Club, Circle of Friends, Faith Partners, Foundation Builders, or some other name that ties in with their brand or mission. For example, a local Christian school calls their monthly giving plan the “Partner Program.”

If you look at a typical giving pyramid for an organization, monthly donors are usually sandwiched somewhere between “major” and “occasional” (or sporadic) donors. These are the wonderful and committed donors who can make a difference in a recession or other downturn. They are NOT generally your major donors. Having just emerged from the COVID-19 pandemic, many organizations reported their giving was stable or, in some cases, even increased over the prior year. Much of this can be attributed to monthly givers. Organizations without a program are more susceptible to spikes in their contributions during trying times or change.

One good thing about monthly donors is they will typically stay with you through thick and thin. Ten years or more is not unheard of for a monthly donor life cycle. Retention rate industry wide for monthly giving is close to 50%. And the even better news, with a little bit of work and some investment, these monthly donors will perhaps leave you the ultimate gift—a bequest or planned gift.

Here is a real-life example1:

“Beginning with a single $25 gift in 1983, a generous individual made a total of 279 monthly gifts of $25 or $30 each over a 22-year period ending in 2005. Unfortunately, that is when the donor passed away. One year later, the organization received a $25,000 bequest from its former, loyal donor. The total value of these 280 gifts: $31,250.”

Harvey McKinnon, President of McKinnon & Associates, British Columbia, discovered that “monthly giving appeals not only to younger donors who find it convenient and easy, but also to older donors, who are more likely to live on a budget. But, regardless of their age, monthly donors will often give for decades, are more loyal than even the most consistent annual donors and are far more likely to leave bequests.”

Twenty-one percent of Baby boomers (50-67 years of age) give monthly. Fifty-two percent of millennials are “interested” in monthly giving. Some organizations have difficulty converting even 1% of their active donors to monthly givers; others convert the average of 5% to 10%. Some have even reported 50% plus. These are unique organizations whose mission and services lend themselves greatly to this approach, such as an international relief organization where you can give $35 a month and cover a single child’s basic life needs.

So, is it time to grow, enhance, or start you monthly giving program? There are plenty of resources available help you. The Timothy Group can help guide you with some practical steps to take. Other professional organizations, such as Association of Fundraising Professionals, can also help you design an effective program.

Next month we will share some pointers and “best practices.”

Resource: 1Warwick, Mal. January 2008. Email newsletter.

About the Author: Kent Vanderwood, Vice President – Kent offers clients over 35 years of non-profit experience including teaching, administrative, consulting, and directorships. Through his work as Development Director for The Potter’s House, Gospel Communications International, and Mel Trotter Ministries, Kent brings a wealth of experience in fundraising and development. He currently serves as a board member for the West Michigan chapter of the Association of Fundraising Professionals (AFP). His passion for seeing Christian stewardship principles applied in a systematic way helps the non-profit organization or ministry be successful in fulfilling its mission.

Communication, Donor Relations, Fundraising, Major Donors

Fix Your Roof!

by Ron Haas
June 1, 2021
Capturing meaningful donor information is critical for your ongoing fundraising success. How can you encourage your team to write meaningful contact reports in your CRM? Submitting visit reports is an afterthought for many development representatives who “will get to it when they have time,” but never seem to find the time. Some simply don’t like paperwork and procrastinate until their scribbled notes no longer make sense. Good fundraisers are typically more relationship-oriented than task-oriented so writing contact reports doesn’t come naturally to them. Donor contact reports add to your institutional knowledge about your donors and their relationship to your ministry. Contact reports bring accountability to your team and give future team members insight into your key donor relationships. If you don’t write it down, you’ll forget some important conversation and miss an opportunity. Unrecorded contact reports might not seem like a big deal, but it’s like overlooking a small leak in your roof that, if not addressed, will cause a lot a damage.  Effective donor reports key gather data and should include these four R.O.O.F. points: R—Reason for the Visit Every visit must have a definite purpose. Categorize your visit as “Discovery,” “Cultivation,” “Solicitation,” or “Stewardship.” If your goal is “Discovery,” listen for information you can glean about your donor’s connection to your ministry, their giving capacity, and why they might be motivated to give. If your purpose is “Cultivation,” take specific steps to build a closer relationship between your donor and your ministry. Whom from your organization could you introduce that would establish another attachment? What information could you share to spark a greater interest? When you are ready to “Solicit,” take a personalized proposal based on their giving interests and ask for a specific amount or gift range. The purpose of “Stewardship” visits is to genuinely thank your donors and continue to deepen your relationships. O—Observation Listening and observing are top fundraising skills. Philosopher and Yankees catcher, Yogi Berra, once remarked, “You can observe a lot by just watching.” From a fundraising perspective: you can also hear your donor’s heart by listening. How did your donor respond to your questions? What questions did they ask? What excited them about your ministry? What concerned them? Notice their pictures on the wall, magazines on the coffee table, or any plagues or awards on their desk. Look for clues that reveal the things that are close to their heart so when you’re ready to ask, you will ask for the right project and the right amount. O—Opportunity In every donor meeting you should present an opportunity. Obviously, for a Solicitation meeting you will present a specific proposal for how your donor can partner financially with your ministry. In Discovery, Cultivation, and Stewardship meetings your opportunities may be to seek their advice on your project, ask a probing question, provide additional information, invite your donor for a tour, or pray for them. Have a specific outcome in mind. What will make this meeting a success? Record important takeaways from your meeting. F—Follow-Up Fundraisers can learn the value of follow-up from the world of sales.  A study by Brevet revealed that 80% of sales require five follow-up calls after the initial meeting and 44% of sales reps give up after one follow-up meeting. Thomas Edison said, “Many of life’s failures are people who did not realize how close they were to success when they gave up.” Don’t let your donor opportunities slip through the cracks simply because you got tired of following up. What unanswered questions did your donor have that you can research and report back to them? What next move will bring your donor closer to a gift? Record your specific follow-up steps. Lead/Lag Indicators There are many data points you can track in fundraising. Some ministries have high accountability for their team members. If the visit isn’t recorded in the database within 48 hours after the meeting, it doesn’t count. Essentially, the manger is saying, “It didn’t happen.” Contact reports don’t have to be a book. Just record the key points that will give you or the next gift officer insights into your donor’s heart. Ministries that concentrate on tracking R.O.O.F lead indicators, discover their lag indicators will follow. Don’t lose your donor conversations, fix your roof!
Ron Haas has served the Lord as a pastor, the vice president of advancement of a Bible college, a Christian foundation director, a board member and a fundraising consultant. He’s authored two books: Ask for a Fish – Bold Faith-Based Fundraising and Simply Share – Bold, Grace-Based Giving. He regularly presents fundraising workshops at ministry conferences and has written fundraising articles for At the Center magazine and Christian Leadership Alliance’s Outcomes magazine.
Capital Campaigns, Development, Fundraising

“And They’re Off!” Starting Your Campaign Right

by Kent Vanderwood
June 1, 2021

If you’re a racehorse, the starting gate can be a scary place. It’s just barely wide enough to squeeze into. The air is filled with commotion as jockeys and gate crew coax the shy, prod the stubborn, and calm the anxious. When all the horses are finally poised and looking straight ahead everything quiets down for a just moment… Bang! The gate flies open and they’re off—galloping to the finish line with all their might! With the right trainer and plenty of practice, horses eventually learn the “ins and outs” of gate etiquette and how to break fast and clean. Races can be won and lost at the gate.

Just like a horse race, a clean start is essential for your capital campaign. Prepare well so you don’t get stuck in the gate or stumble in your first steps. Between the conclusion of your pre-campaign/feasibility study and launching the quiet/leadership phase, there is typically a period of reflecting on the study results, deciding the best path forward, establishing the campaign size and scope, and developing your plan and strategy. This foundational or preparatory phase can take a month, three months, or more. Some organizations even prepare for a year to launch their campaign.

You should address at least these five items during this preparatory phase before you launch your campaign.

Campaign Organizational Structure
A great start depends on great leaders. Recruit your campaign chair(s), along with additional sub-committee directors, assign staff and board roles, and provide training and orientation for your steering committee. Strong volunteer leadership is the heartbeat of every successful capital campaign. It is critically important to carefully select and properly train your campaign leadership.

Campaign Timeline and Calendar
Concurrently with committee organization, you should establish a realistic timeline for the campaign. Start with key dates such as the launch of the quiet phase, benchmarks for the transition into the public phase, kick-off events, dedication or ribbon cutting ceremony, projected end of the campaign pledge period, and moving into pledge fulfillment. Realize that your timeline is a guide that should remain fluid and subject to change.

Campaign Theme
Every campaign needs a catchy, compelling theme that projects growth, change, fulfilling your vision, enlarging your footprint, and moving forward. Add a tagline and find just the right scripture reference. This campaign theme will help your steering committee and leadership “define” the campaign to your constituency and community.

Material Development
Create some persuasive collateral materials to help tell your ministry story. Generally, if you conducted a pre-campaign study, you already have a compelling case statement which shares your vision. Make any edits to strengthen your case and convert it into an “ask” piece, or gift proposal. Develop a “Frequently Asked Questions” document, commitment card, letterhead, stationery, and thank you notes. Prepare a campaign video to use in your public phase.

Your “Top 100” Donor List
This is the most important step of all. You cannot raise money until you know whom you will talk to. Ask these questions: Who has the capacity for a 7-figure leadership gift? Who can provide a large 6-figure mega gift? Who are our friends who can give $25,000, $50,000 or more to our campaign? Who should be on our Top 10/Next 20 list? Developing this top 100 list is extremely important. Don’t rush the process. The time you spend researching your donors now will pay off in the end.

And You’re Off!
As you evaluate your team, you may need to coax the shy, prod the stubborn, and calm the anxious. But when your leadership, board, and staff are finally poised and looking straight ahead—Bang! You’re off to the races! Pray fervently, recruit well, plan carefully, and run hard!

About the Author: Kent Vanderwood, Vice President – Kent offers clients over 35 years of non-profit experience including teaching, administrative, consulting, and directorships. Through his work as Development Director for The Potter’s House, Gospel Communications International, and Mel Trotter Ministries, Kent brings a wealth of experience in fundraising and development. He currently serves as a board member for the West Michigan chapter of the Association of Fundraising Professionals (AFP). His passion for seeing Christian stewardship principles applied in a systematic way helps the non-profit organization or ministry be successful in fulfilling its mission.

Client Impact, Donor Relations, Fundraising, TTG Answers

Keeping Score: Setting and Achieving Fundraising Goals for You and Your Team!

by Ron Haas
May 19, 2021

Your fundraising calendar is chocked full of urgent things to do, but are they the right things? It’s not enough to be busy, you’ve got to be productive. So, how do you decide where to invest your time and energy to achieve the greatest results? What metrics do you use to keep everyone on pace to reach the goal? Everyone needs accountability. It’s not what expect that gets done, it’s what you inspect!

Join Ron Haas as he discusses “Keeping Score: Setting and Achieving Fundraising Goals for You and Your Team”

https://www.youtube.com/watch?v=sWBHyl1m5kU

Development, Donor Relations, Fundraising

Throw Your Perfect Elevator Pitch

by Kent Vanderwood
May 5, 2021

What’s your elevator pitch? If you bump into someone important on an elevator who asks you what you do for a living, what would you say? Have you scripted your talking points that quickly and simply define your organization and its value proposition?

Your elevator pitch should express why your non-profit matters in thirty seconds or less. If your conversation is compelling and sparks interest, hopefully you will keep talking after you’ve arrived at your floor and exchange business cards. The goal for every elevator pitch is to secure a follow up meeting.

An elevator pitch is not simply reciting your mission statement. It is different than a mission or vision statement although these can be woven in to your “pitch.” Write down and memorize three or four short sentences, statements, or even phrases so you are prepared at a moment’s notice.

Your elevator pitch should be…

•  Simple – Avoid getting too wordy. Don’t use too many fancy words or jargon. Get to the salient points as soon as possible and do NOT try to tell your whole story. Save that for later.

•  Emotional – The listener needs to hear emotion, excitement, and passion from you. If you are boring why would your listener want to hear more? Provide them with an “Aha” moment!

•  Credible – You don’t need to quote facts or numbers, but if you do, make sure they are accurate. Avoid stating, “we are the ONLY organization that…” You must sound sincere and believable.

•  Relevant – Your cause is relevant, or you would not serve there. In the same way, your “pitch” must be relevant to your audience.

I worked for a ministry named Gospel Communications, International. Our mission was hard to explain. So, I developed an elevator pitch that I used often when people asked, “Tell me about GCI.”

Here’s my script:

At Gospel Communications International, we provide access to the Good News of Jesus Christ to people around the world in the language of their hearts.

For more than 50 years, we have shared God’s Word and other critical information through culturally relevant, evangelistic films, videos, TV broadcasts, and internet-driven messages.

Based in West Michigan, our passion is communicating the Gospel worldwide, using media, to change lives.”

I wrote this elevator pitch when I worked for Mel Trotter Ministries:
Mel Trotter is located in the Heartside Neighborhood of Grand Rapids. We proclaim and demonstrate the compassion of Christ toward hungry, homeless, and hurting men, women, and children from the West Michigan area. We do this by providing the life-sustaining services they need without cost or obligation to them. In short, we bring hope to those who have none.

Don’t Forget to Follow Up
Once you deliver your pitch, you need a plan of action to follow up. Ask the person if they’d be interested in learning more about your ministry and offer to email some additional information. Obviously, make sure you get their email address! A great elevator pitch can get your foot in the door, but exceptional follow-up can really set things in motion.

About the Author: Kent Vanderwood, Vice President – Kent offers clients over 35 years of non-profit experience including teaching, administrative, consulting, and directorships. Through his work as Development Director for The Potter’s House, Gospel Communications International, and Mel Trotter Ministries, Kent brings a wealth of experience in fundraising and development. He currently serves as a board member for the West Michigan chapter of the Association of Fundraising Professionals (AFP). His passion for seeing Christian stewardship principles applied in a systematic way helps the non-profit organization or ministry be successful in fulfilling its mission.

Communication, Fundraising, Major Donors

Donor-Centric Communication

by Ron Haas
May 3, 2021
President John F. Kennedy inspired a generation his with Inaugural Address on January 20, 1961, “Ask not what your country can do for you — ask what you can do for your country.” JFK changed the focus from receiving to giving and motivated hundreds of thousands of volunteers to give their lives in public service to make the world a better place. Nonprofits should apply this famous quote to their donor relationships, “Ask not what your donors can do for you – ask what you can do for your donors.” We fixate on meeting our needs and ask donors to help us achieve our goals. There is a practical side to fundraising. We must meet our budget or risk going out of business. But this organizational self-focus overlooks the mutual benefit donors can share by partnering with your ministry. This concept of doing something for your donors doesn’t mean giving them some tangible gift although that’s a nice way to express your gratitude. Doing something for your donors involves the intangible gift of including them in your mission to change lives for eternity. Paul referred to his relationship to the Philippian church as a “partnership in the gospel” (Phil. 1:5). They were partners because they gave generously time and time again to share in his troubles (Phil. 4:14-16). They saw themselves as co-workers. Here are three ways to treat your donors like full partners. 1. Communicate Good News and Bad News The Philippians were partners with Paul through thick and thin. In 2 Corinthians 1:8, Paul wrote, “We were under great pressure, far beyond our ability to endure, so that we despaired of life itself.” Paul was authentic about the challenges he faced. Our donor communications tend to be guarded especially when we share bad news. A ministry recently sent a cryptic letter explaining why the executive director was fired. One donor reacted, “The letter said something without saying anything.” Open and transparent communication will strengthen your bond with your donors. When Paul sat chained in prison, in a real sense those Philippian believers were right there with him. When he floated to shore during his shipwreck (Acts 27), they were also bobbing up and down in the waves with him. When he preached the gospel and men, women and children came to faith, the Philippians shared in his harvest because they had invested in planting the seed. 2. Speak from your Donor’s Perspective Too often we ask our donors to support us as we do the work. Help them see their value by placing them on the front lines of ministry. Recently at a donor event the executive director of a relief and development agency made his appeal extremely personal. “Next week you will be serving food to refugees in Syria providing a warm meal and hope. You will be in Thailand rescuing young women trapped in sex-trafficking. You will be in Iraq sharing Bibles with people who have never seen a Bible. And you will be in India meeting the most urgent needs of a child in poverty.” These phrases transported donors from being spectators to becoming participants. 3. Emphasize Eternal Dividends Who really benefits from a donor’s gift? You do, because you can raise the funds to stay in business. The people you serve benefit, because you can continue serving them. But your donors also benefit because they will receive eternal rewards. Paul responded to the Philippian’s generosity, “Not that I desire your gifts; what I desire is that more be credited to your account (Phil 4:17). Donor partnership is not just a one-way street. It should be a genuine partnership mutually beneficial to both your ministry and your donors. As a Christian ministry, you give your donors the unique opportunity of laying up treasures in heaven. In all your donor communication you must tell great stories of changed lives. It’s not about your buildings, but what happens inside your buildings. It’s not about your professors, it’s how they impact your student’s lives. It’s really not about your ministry at all, its about helping your donors fulfill their God-given responsibility to be good stewards. Give them compelling reasons to partner with you to impact eternity.
Ron Haas has served the Lord as a pastor, the vice president of advancement of a Bible college, a Christian foundation director, a board member and a fundraising consultant. He’s authored two books: Ask for a Fish – Bold Faith-Based Fundraising and Simply Share – Bold, Grace-Based Giving. He regularly presents fundraising workshops at ministry conferences and has written fundraising articles for At the Center magazine and Christian Leadership Alliance’s Outcomes magazine.
Client Impact, Donor Relations, Fundraising, TTG Answers

Run With Horses!

by Ron Haas
April 21, 2021

“If racing against mere men makes you tired, how will you race against horses?” (Jeremiah 12:5 NLT)

Your ministry needs strong volunteer leadership! Sometimes, God brings you a leader with passion, drive, and enthusiasm that challenges you to catch up with their zeal.

Join Ron and Scott for a lively conversation as they discuss “Run with Horses!”

https://www.youtube.com/watch?v=e6ZQ2pWex1o

Development, Donor Relations, Fundraising, Stewardship

Squeezing Fundraising onto Your To-Do List

by Kent Vanderwood
April 20, 2021

Do you feel like a circus performer juggling multiple tasks competing for your time and attention? Have you been asked to write your ministry’s strategic plan—and then implement it all by yourself? Are you responsible for training and coaching your staff, but can’t seem to find time to meet with them regularly? Do you finally schedule a meeting, only to cancel it to prepare financial reports for the board meeting? Has your board chair asked you to ramp up your fundraising efforts because the budget is a little tight? You might think to yourself, “And just how am I supposed to squeeze that in?”

Don’t laugh! This is an every day, real occurrence in the non-profit world.

The “tyranny of the urgent” is not just a cliché, but a reality in many ministries. Charles E. Hummel wrote a small pamphlet bearing that title (Inter-Varsity Press, 1967) and commented, “When we stop to evaluate, we realize that our dilemma goes deeper than shortage of time; it is basically the problem of priorities.” So, how can you maintain both your sanity AND priorities and still raise funds your ministry?

·  Is the answer more staff? Maybe, but that’s not always possible.

·  Is the answer less responsibilities or tasks on your plate? Maybe, but which ones should you eliminate?

·  Is the answer better time management, as in “shall I sign up for one of those time management seminars when it comes to town?” Maybe. This may help you cope with the immediate challenge but not alleviate your problem long term.

Finding more time in your day, week, or month is a fundamental management challenge. One executive director described his avalanche of paperwork, “It’s horrendous and getting worse. Sometimes it seems all I do is shuffle papers without ever making progress on the real work that needs to be done.” All of us have “real” work and “not so” real work. How can you tell the difference and strike the right balance?

Setting the right priorities.
Name three things your organization must do well to thrive. Then ask yourself, “What are three things in my current job description that only I can do?” Involve your board or others in your evaluation process. Fundraising should land near the top. The CEO or executive director is typically the most effective fundraiser in any organization. The position carries influence; many donors want to talk directly with the boss. You may need get rid of some responsibilities to add fundraising to your plate.

Sticking to these priorities.
Maybe you have heard the expression, “keep the main thing the main thing.” Once you establish the right priorities, jealously protect your fundraising time. Schedule a day, or two half days each week to meet with donors and prospects. Use this time to educate, cultivate, and nurture your relationships. Be persistent. Interruptions and other “important” things will always try to crowd into your fundraising time. Unless it is in your job description, and only you can do it, don’t let anything get in the way. Your ministry success depends on your fundraising efforts. Bottom line–free up your schedule for fundraising.

Delegate Wisely
In his book, One Minute Manager, Ken Blanchard poses the question, “Why is it that some managers are typically running out of time while their staffs are typically running out of work?” Some leaders think they are indispensable, or that some tasks can only be completed by them. Yes, this is partly true, but most of us struggle with delegating properly, thus adding to our stress. No one is indispensable. That thought process limits the work or growth of others.

Delegation is “the ultimate form of management” because it allows your people to achieve more and more with less and less from you. And guess what? Effectively delegating one project, or task, frees up time for you to delegate more responsibilities to others. As you achieve higher levels of delegation, it will free up your time to focus on what is most important. If someone else in your organization can do or be trained to do a task you currently do, let them do it.

Whom should you delegate these extra tasks to? It may be someone on your staff or team. If not, can you identify some faithful volunteers? Recruit true biblical stewards who desire to serve the Lord. They may have time and talent in areas you may not.

Is there a risk when delegating? Of course, but the greater risk is being overwhelmed and ineffective as a leader because you can’t get to everything. With all those plates spinning in the air, it is only a matter of time until some of them crash to the floor. Delegate every task that keeps you from “the main thing.”

Fundraising is essential for every ministry leader. It is not about “squeezing fundraising onto your to-do list.” Embrace fundraising as one of your top priorities and then reassign everything that gets in the way. Your ministry will thank you!

About the Author: Kent Vanderwood, Vice President – Kent offers clients over 35 years of non-profit experience including teaching, administrative, consulting, and directorships. Through his work as Development Director for The Potter’s House, Gospel Communications International, and Mel Trotter Ministries, Kent brings a wealth of experience in fundraising and development. He currently serves as a board member for the West Michigan chapter of the Association of Fundraising Professionals (AFP). His passion for seeing Christian stewardship principles applied in a systematic way helps the non-profit organization or ministry be successful in fulfilling its mission.

Capital Campaigns, Fundraising, Major Donors

Too Many Chickens

by Ron Haas
April 19, 2021
Every chicken farmer knows that you can only put so many chickens in a coop before you start losing productivity. The same principle applies to non-profit organizations. Cram too much ministry into too small of space and you’ll struggle to be effective. Are you running out of ministry space, meeting rooms, offices, parking, and storage? Maybe it’s time to consider a larger facility. But that can be an expensive project which will probably require you to launch a capital campaign to raise the money. It’s a daunting task. Where do you start? A successful capital campaign requires five key components: 1) a compelling case, 2) committed leaders, 3) willing volunteers, 4) a good plan, and 5) prepared donors. Let’s look at each of these in more detail. 1. A Compelling Case

Just because you want a new facility, doesn’t mean that your donor base does. You must make the case that your ministry plan makes sense. You must demonstrate a winning track record that proves more space will translate into more changed lives. Successful ministries attract dollars because donors want to support causes that advance the cause of Christ.

A campaign can include property, bricks and mortar, personnel, program initiatives, and endowment. Your campaign must solve urgent problems and answer pertinent questions. What outreach ministries won’t happen if you don’t move forward with your plans? What essential programs won’t be accomplished without this campaign? Why should a donor make a significant gift to your campaign? What eternal investments are at stake?

2. Committed Leaders

John Maxwell says, “Everything rises or falls on leadership.” This is especially true of fundraising. The number one fundraiser in any nonprofit organization must be the executive director. Major donors want to talk with the boss. They want to look the leader in the eyes and ask themselves, “Can I trust this person?” “Will he or she actually follow through and accomplish the mission?”

One of the biggest challenges for a ministry leader is carving out 70 to 80 percent of their time to focus on a capital campaign. Maybe you’re thinking, “I work 80 hours a week now, how in the world could I lead a major fundraising effort?” Before considering a campaign, you, your board members, and key staff need to have a serious discussion about how to delegate some of your tasks to others, so you can schedule enough time to visit donors. Think of it this way. If you can become successful at fundraising, you can hire staff to cover some of your other ministry responsibilities.

Successful capital campaigns also depend on committed board members who will lead by giving generously and encouraging others to give. Collectively, the board should give 10 to 15 percent of the campaign total. When David gathered resources to build the Temple, he gave first, then he asked the elders of Israel to give, and finally he challenged the entire congregation (1 Chronicles 29:1-5). Apply this same pattern to your capital campaign. As leaders, you and your board must lead the campaign with generous, sacrificial gifts. You must set the pace before you ask anyone on the outside to give.

3. Willing Volunteers

Staff will play important roles in a capital campaign, but the most successful campaigns have strong volunteer involvement. Volunteers can identify donors, cultivate donor relationships and even ask for gifts. Take a close look at your database and find key donors who know and love your ministry who might also invest their time and talents in a fundraising effort.

Ask God to lead you to people who could open doors to new donors. When major donors get excited about your project, they will encourage their friends to get involved as well. There is no stronger appeal than friends asking friends to join them in supporting a worthy cause. In one recent campaign, we asked the lead donor to identify others who might be interested in supporting the project. He said, “I’ve got five people in mind and I’m going to tell them, ‘I’m into this campaign in a big way and I want you to consider a significant gift as well.’” 

4. A Good Plan

If you break down the gift amounts in a typical campaign you will find that 80 percent of the funds come from 20 percent of the donors. But a misguided campaign strategy focuses on lots of events that target the 80 percent of the donors who will only give 20 percent of the money. Don’t forget, it’s not enough to be busy, you must be productive. You will need a well-designed fundraising plan to stay on target.

You will also need a clear plan for what you will accomplish with the money. Occasionally, campaigns get sideways because the board or executive director keeps adding projects to the case statement. It’s hard to hit a moving target. Your major gifts team will have difficulty communicating a concise, compelling “ask,” if the story keeps changing.

Scripture teaches us to “count the cost before building the tower.” Before you announce a capital campaign, you should conduct a feasibility study to determine if your donors understand your plan, if they like your plan, and if they would be willing to give. A feasibility study helps you determine an attainable campaign goal, identify lead donors, and test if the timing is right to move forward.

5. Donors

The key element that many campaigns lack is strong major donor relationships. The ministry may know a few key potential donors, but sometimes the big money is two or three relationships removed. A campaign provides a great opportunity to attract new donors who could get excited about your vision. Don’t wait for a campaign to build relationships with major donors. Start now by identifying, cultivating, and soliciting donors for your annual operating fund.

Large capital gifts usually come from individuals who have made annual donations to the ministry over a period of years. Giving is based on trust and long-term donors have developed a level of confidence in your ministry. It’s much easier to ask a person for $10,000, if you have asked them for $1,000 each year for the past 5 years. Many major donors make their first gift to an organization as a “test” gift. They will give you an amount, and see how you handle it. If you thank them, use it wisely, and actually accomplish what you said you would, then they will be more inclined to give a larger gift in the future.

If you are considering a capital campaign, take this self-assessment. Do you have a compelling case worthy of support? Are you and your board members committed to leading this fundraising effort, financially and with your time? Can you recruit key volunteers who will open doors to significant donors? Do you have the right strategies in place, or will you need to find a coach who can guide you to success? Have you been asking major donors to contribute to your annual fund to prepare them for a future capital campaign? If you have too many chickens, answer these questions and move into a campaign with intentionality. A successful campaign requires prayer, careful planning, and direction from the Holy Spirit because whether you’re trying to raise $500,000 or $5,000,000 – it ain’t chicken feed.
Ron Haas has served the Lord as a pastor, the vice president of advancement of a Bible college, a Christian foundation director, a board member and a fundraising consultant. He’s authored two books: Ask for a Fish – Bold Faith-Based Fundraising and Simply Share – Bold, Grace-Based Giving. He regularly presents fundraising workshops at ministry conferences and has written fundraising articles for At the Center magazine and Christian Leadership Alliance’s Outcomes magazine.
Development, Donor Relations, Fundraising, Stewardship

Boost Your Annual Report!

by Kent Vanderwood
April 6, 2021

One of the best strategies for reporting your success to your donors and stakeholders is through an Annual Report. You may or may not currently produce one, but if your non-profit organization is like most of those we serve, you probably ask these questions every year:

·  Is an annual report required of our non-profit?

·  If not, why should we do one?

·  Who is our audience?

·  What should be included?

·  How long (or brief) should it be?

·  Is there one format that is better than others?

·  Should it be printed or digitally produced?

·  What are the best practices to consider when preparing our annual report?

Do we have to produce an annual report?
Your ministry is not required to produce an annual report, but there are many persuasive reasons to create one. However, all non-profits with 501c3 tax-exempt status must file Form 990 or the Annual Information Return with the IRS. An annual report is an optional informational report that non-profits produce to serve their OWN purposes. Here are some benefits to consider:

Inspire your audience about your mission.
One non-profit executive’s perspective is, “The annual report is a comic book. They look at the pictures and glance at the words.” If you only have a glance, make sure your photos include captions that communicate your impact, your stories are brief but compelling, and your financials are clear and convincing.

Show the results and impact of your organization.
Donors are your target audience. Show the tangible results of your work to prove your return on their investment (ROI). Share the spiritual impact to authenticate your spiritual return on investment (SROI). What were you able to accomplish, with their help, over the past 12 months? Do not be afraid to “toot your horn.” Donors give because they love your organization. They keep giving and give more because their dollars are making a difference. Some organizations have wisely renamed their annual report to “Impact Report.”

Build trust through financial accountability.
Being transparent with how you present your numbers will help build trust. Your audience can review your 990 Report on their own to check your financials. It’s much better to tell them first in your narrative with your charts and stories. There are many ways to share this information. Make it simple and clear. They need to see that you are a good steward of their donations.

Show appreciation for your current donors.
In the past, annual reports would generally show a list of donors over the past 12 months. At least those who have given at significant or notable levels. Of the 15 annual reports on my desk right now, only one of them includes this list. And that one is an insert sheet that can be added or removed based on the audience. That is not to say the other reports fail to show appreciation and give thanks. It is just more general and less specific to individuals. Hopefully, you are engaging with your major donors enough that you need not depend on your annual report to say thanks.

What are some “best practices” for writing an Annual Report?

·  Create a plan for your non-profit annual report. Have a strategy. Define your purpose and your audience. Include great photos. Compile financial information and key metrics. Interview key supporters or service recipients for stories. Plan enough time to do it right.

·  Focus your annual report on the good your non-profit accomplished. Write from your donors’ perspective. What did their donations and volunteer support accomplish? Put them first. Allow them to “own” the results.

·  Use visuals in your annual report to keep readers engaged. Remember the “comic book” analogy? Use more visuals and less words. “Info-graphics” help. Transform complex data into easy-to-understand information.

·  Be honest about your non-profit’s progress. You want to show success, but that may not be possible 100% of the time on every project. Feel free to mention some of the challenges faced over the past year; show how you are being proactive in solving problems. Transparency builds trust.

·  Inspire supporters to act. Your annual report should include a call to action for your readers. Your report will share success and accomplishments. Some will be asking, “What’s next?” Make sure you include the answer to that question and how they can be a part of it. Volunteerism, corporate matching programs, upcoming fundraising events can be shared.

Should your annual report be a printed hard copy mailed or hand delivered to your stakeholders? Or should it be produced digitally and available for downloading as a PDF via an email or on your website? The answer is, “YES!” A combination of hard copy and digital annual report versions will reach the widest audience.

Here are three great samples: Haiti Teen Challenge, Immanuel Schools, and Lakeland Christian Schools.

Your annual report can be an effective fundraising tool as you inform, explain, narrate, and persuade your ministry partners to increase their impact through your ministry.

About the Author: Kent Vanderwood, Vice President – Kent offers clients over 35 years of non-profit experience including teaching, administrative, consulting, and directorships. Through his work as Development Director for The Potter’s House, Gospel Communications International, and Mel Trotter Ministries, Kent brings a wealth of experience in fundraising and development. He currently serves as a board member for the West Michigan chapter of the Association of Fundraising Professionals (AFP). His passion for seeing Christian stewardship principles applied in a systematic way helps the non-profit organization or ministry be successful in fulfilling its mission.

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