You’ve heard it before, and now more than ever. It’s buzzing on social media. Your annual fundraiser is on the horizon and a voice at the committee meeting drops the latest and greatest thing she just heard from a friend of a friend whose auctioneer said “Live auctions are being replaced with the paddle raise and we shouldn’t be doing it anymore.” Cheers arise around the table, three high-fives. No more soliciting for these big items or worse “Consignment Items” Oh My!
The Paddle Raise, also known as the Fund-A-Need, The Give, Fund-A-Mission, Fund-the Cause, Item, Scholarship. You got the idea. Guests give cash directly to the cause and the world is all better in 14 minutes of paddles in the air at designated levels. Designated levels you ask? $5,000, $2500, $1000, $500 and so on. It adds up quickly and boom we’re done. Or are we?
Not so fast. One size does not fit all in event fundraising, or any fundraising for that matter. Be careful. It is not black and white. Sure, it would be great if everyone wanted to just give money to our organizations because our case for support was overwhelmingly motivating; but the real endeavor boils down to who is in the audience and how do they like to give?
The quandary lies in the false belief you must define the intentions of the gift. Was the donation “item driven” or “cause driven”? (transactional vs philanthropic) Do you thank donors differently after the event depending on how their gift was given and can you cultivate a live auction winner into a long -term donor? Live auction winners are already your major donors and they like to be seen playing the game, out bidding and giving in a way that is joyful to them. You should be matching the Live items to your audience anyway.
“Don’t throw the baby out with the bathwater.” Get some items and sell them for 400 -800 times over value. Five or six items in 10 – 12 minutes and a take-off say 10K to 300K for example.
Start with your client. Ask the organization questions like: Why are we here? What are we supporting? How will the money be used? What is the impact of the partnership and long-term plan? These sorts of questions will let an auction professional gain the knowledge necessary to become an ambassador for the organization rather than just serve as a talking head asking for money.
Create an environment of mutual respect, openness, acceptance and appreciation for shared values. The better our donors and Board understand what our challenges and successes are, the more helpful they can be.
Connect the dots, and spread the love; tell people about how their impact has spread (ex: tell CEO about IT director’s contribution). Make them part of a movement!
Donors care 90% about how the staff is thinking about our mission and what questions we are asking. They are rarely fixated on past results. So, offer crystal clear answers to what they want to know.
When it comes to donors, remember you are dealing with emotions. Don’t get too strategic. It’s ok to be spontaneous and fun!
When you raise more money, you help your cause with greater capacity. Our methods have helped all our clients experience greater incomes with scalable and repeatable steps to reach and sustain 6-figure fundraising events.
There is a natural tension between nonprofit leaders and funders created by the power dynamic. As in: funders have the money, and nonprofit leaders need it. And they really need it. For most, leading a nonprofit is not a job or even a career. It’s a calling. It’s deeply personal. And they can’t achieve their vision without donors’ support. They are laying everything they have on the line in hopes of creating a better world, and they can’t do it alone. They become nervous because losing has consequences. Especially for the CEO or ED, where the buck stops. Less funding means less impact and having to fire staff who have also committed their lives to the mission.
But guess what? Many donors feel the exact same way. While they have the financial resources, they often don’t have the program expertise. They are dependent upon you to design and run great programs. They often don’t understand the target population. And they often feel similar trepidation when working with nonprofit leaders. They don’t want to say the wrong thing and be offensive or seem too challenging.
The problem with this situation is two–fold. First, it creates unnecessary stress for all involved, and second, it reduces efficiency and undercuts impact. Before becoming Executive Director of the Boys and Girls Clubs of the Peninsula, I had a business career in NYC, Boston and Silicon Valley. I also did some philanthropy as a limited partner in Legacy Venture, as a member of SV2, and as an alumnus of The Philanthropy Workshop West. I am also a senior fellow in American Leadership Forum. I’ve been fortunate to see this problem from all angles.
So what can we do? The most important step is to appreciate that everyone cares. Everyone is trying to make the world a better place. Yes, funders haven’t devoted their entire lives to our causes like we have, but they still care deeply. Our country has lots of challenges today, especially with increasing stratification and a growing opportunity gap. And funders, by definition, are on the opposite side of the wealth gap than most nonprofit staff. But these are the good guys. These are the folks who want to share their wealth with others, who realize the need to give back. They care.
I have been in many meetings between Board members and staff where the Board member says something in a mildly insensitive way and the staff get upset. This is totally unconstructive. Remember, these are the good guys. If the donor didn’t care and was mean spirited, why is he donating his time and money to your mission? Yes, he probably expressed himself in a clumsy way, but don’t let yourself get sidetracked by that. I remember when I first joined BGCP from the business world. After one meeting, a staff gave me a full page of words I shouldn’t have used in just that one meeting. I was stunned. But I appreciated her taking the time to tell me and to help me do better. Most donors never receive that feedback.
Let’s take a step back, see the big picture, and embrace our donors as the good guys. Nonprofit leaders: Own your power. Stand up for what you believe. You are the program expert. View the donors as partners. Put away the tin cup mentality and find win-win relationships. Recognize that the donors need you. They have goals and need an organization like yours, and a leader like you, to translate their dollars into impact. They don’t know how to do it or don’t have the time to do it. You need each other. Approach donor interactions as equal partners.
Be transparent. I can’t tell you how many times I’ve heard of staff talking about what to share with donors or Board members. The answer is simple: whatever they want. Donors care 90% about how staff is thinking about our mission and what questions we are asking. They are rarely fixated on past results.
They want to invest in teams that have a compelling logic model, are asking good questions, and learning as they go. Stop overselling. Too often staff puts unnecessary and unconstructive pressure on its organization to delivery unrealistic outcomes. Donors care much more about the logic behind the goals than what the actual number is.
The first thing you should know about us is we are here to help you raise more money with less time in a scientifically proven unique branded system of event fundraising.
Our dedication to your success is also why we are driven to innovate and improve the way our clients raise money while cultivating long term donor relationships. The fact is raising money without long term strategic plans is transactional and not relational. This creates burnout for both our clients and their donors and hinders the work of the non-profit agency to serve the very people they are determined to help.
At Six-Figure Fundraising, we know this outdated messaging and “Best Practice” systems needed to be revolutionized in the fundraising world. Our methods have helped all our clients experience greater incomes with scalable and repeatable steps to reach and sustain 6-figure fundraising events. Our work is based on 30 years of professional development work as Non-profit Founder, Executive Director, Major Gifts, Community Organizer, Volunteers, CEO and Silicon Valley Entrepreneur.
The outcome is simple. When you raise more money, you help your cause with greater capacity.
