April 4, 2011

What parents say and do when it comes to charitable giving and volunteering makes a big difference in the charitable activities of their children once those kids grow up. Parental behavior had tremendous influence – more than religion, politics, race, household income, or any other measured factors on the generosity of today’s Americans.

These findings are from Heart of the Donor, an in-depth study commissioned by Russ Reid Company of Pasadena, Calif., and conducted by Grey Matter Research & Consulting of Phoenix, Ariz.

“The data clearly shows that parental behavior has a very substantial correlation with the eventual behavior of children once they are grown,” said Ron Sellers, president of Grey Matter Research. “While the research doesn’t show an absolute one-to-one correlation, in real terms today’s volunteers are 125 percent more likely to have come from parents who encouraged their children to volunteer, and 145 percent more likely to have come from parents who frequently volunteered, than they are to have come from parents who really never did those things.” 

According to Lisa McIntyre, senior vice president at Russ Reid Company, “Nonprofits can encourage today’s donors to talk to their children about giving and volunteering, model the behavior, and share the experience with them. The data clearly shows that when these things are done, it has a long-lasting effect on kids.”

More than 86,000 nonprofits are now using GoodSearch.com and GoodShop.com to earn funds with virtually every search of the web and purchases at 1,300 top stores! 100 new nonprofits are joining daily! Success stories include:
- The ASPCA has earned $31,000
- The Cystic Fibrosis Foundation has earned $12,000
- Save Darfur has earned $11,000
Read more about GoodSearch and GoodShop in the NY Times, Oprah Magazine, CNN and more..

It might be lonely at the top, but lonely or not, leaders are called on to make decisions every day, some of which turn out well and some, well ...

In his book “What’s Holding You Back?,” Robert J. Herbold writes that many leaders lack the courage to make tough decisions. Herbold suggests 10 bold steps that define gutsy leaders.
* Devise a demanding game plan to confront reality. By game plan, Herbold means an aggressive and clear vision, the selection of the right strategies to fulfill it and proper, well-defined measures of success.
* Staff for success. Courageous leaders increasingly emphasize developing and properly utilizing the very best people.
* Clean up the sloppiness. When easy things are hard to do, it’s time to clean up the organization.
* Institutionalize tight-fisted cost control. Take a tough, visible stand on cost, fix or kill obvious cost blunders and be global.
* Insist on functional excellence. When leaders lack knowledge and someone who can be a reliable source of knowledge, things get messy.
* Create a culture of innovation. For an organization to be consistently innovative, the leader must make it clear that innovation is valued.
* Demand accountability and decisiveness; avoid consensus. The people you are counting on to innovate must know the buck stops with them.
* Exploit inflection points. These are significant shifts in the technology or consumer habits or practices underpinning your industry.
* Value ideas from anywhere. Innovation can’t be programmed.
* Shake up the organization. Established organizations often get comfortable in an established routine.

Fundraising …
Put direct mail together with planned giving

Who says direct mail and planned giving don’t mix? Direct mail donors made up just 14 percent of planned giving estates in 2002, roughly 14 percent of planned giving income, for the American Heart Association (AHA). By 2010, donors were up to 40 percent of estates and 30 percent income, according to Sherry Minton, director of direct response, who recommends marketing planned giving more aggressively to direct mail donors. Planned giving in 2010 totaled $85 million for AHA.

Minton was among the panelists at “Getting Back to Growth: 30 Ideas for Success in 2011 & Beyond” during the DMA Nonprofit Federation’s annual Washington, D.C. conference.

“I knew if we found it we’d add to the history of donor giving and increase lifetime giving, but also keep direct mail from being the red-headed stepchild. See correlation between direct mail and planned giving,” she said.

It’s usually three to three-and-a-half years between the last gift received from a donor until the charity gets their estate, according to Minton, but over their lifetime, they’ve usually given at least two-plus gifts. AHA usually markets planned giving to 0-24 month donors with two gifts on file, 65 years of age and older, “Don’t stop mailing after you get the planned giving. Don’t stop unless they ask,” she said.

Get back to mining your database and investing in stewardship if your nonprofit is looking to grow this year. Those were just two of the ideas presented during a panel entitled, “Getting Back to Growth: 30 Ideas for Success in 2011 & Beyond” during the DMA Nonprofit Federation’s recent Washington, D.C. conference.

Acquisition efforts have increased, though not to pre-recession levels, and the first place you should look is your lapsed donors, said Jennifer Bielat, vice president of direct marketing at Chicago-based Easter Seals. About half of the organization’s 13 million donor records are lapsed, she said, adding that investing in lapsed donors is more valuable than investing in new donors.

New donors retain at about 30 percent versus reactivated donors, who retain closer to about 44 percent, she said. Reactivated donors also give a little more, about an 8.5 percent higher gift. Bielat suggested using models to identify the best responders.

Stewardship is vital because nonprofits lose about a third of multi-year donors and 70 percent of new donors each year. “It’s a lot more costly to go out and get a new donor versus investing in existing donors,” Bielat said, suggesting that fundraising make the case for investment and sending “high-touch mailings” to the best donors that don’t ask for a gift.