Nonprofit Literature Blog

Nonprofits and Entrepreneurs: Bridging the Gap and Promoting Philanthropy

Entrepreneurs can incorporate their passion and energy from their business endeavors into their work with nonprofits. Before building relationships with entrepreneurs, try to gain a better understanding of how they think and what their expectations may be. Lisa M. Dietlin has just written a book Transformational Philanthropy that explains how to successfully engage entrepreneurs and cultivate them effectively. Chapters explore the qualities of entrepreneurs, frustrations and misconceptions, celebrity philanthropy, and other topics.

If you are an entrepreneur, Dietlin has included tips in the book to help you make better philanthropic decisions. The book also contains 21 stories based on interviews with entrepreneurs.

A limited preview of Transformation Philanthropy: Entrepreneurs and Nonprofits (Jones and Barlett Publishers, 2009) is available at Google Books.

Family Philanthropy: Grandparents Know Best

Grandparents often serve as role models for younger generations, sharing their stories and lessons learned. Some grandparents may also have a strong interest in promoting philanthropic principles so that families will continue the tradition of giving.

The Grandparent Legacy Project is a publication that serves as a workbook to help grandparents and grandchildren begin the dialogue on family values and charitable giving.

The book and accompanying audio CD contain fifteen stories and interviews with philanthropists that may help inspire the discussion. In addition, the resource provides several suggestions for grandparents. Examples:

• Offer matching contributions for your grandchildren’s donations
• Take your grandchildren to site visits or meetings
• Record a video about your philanthropic values for future generations

The Grandparent Legacy Project is sponsored by 21/64 and the Association of Small Foundations.

To find more information on family philanthropy, see our topical resource list.

Donor Relations

Your nonprofit seems to have trouble retaining its donors. What can be the problem?  Janet L. Hedrick’s new book, Effective Donor Relations, might be able to provide some answers. Perhaps your nonprofit needs to think more carefully about acknowledging gifts, recognizing donors, and improving stewardship practices:

-How long does it take for your nonprofit to mail a written acknowledgement? Two weeks? Hedrick suggests that your “thank you” should be sent within 48 business hours.

-How do you recognize your donors? There are many different options, including newsletters, annual reports, donor walls, gift clubs, naming opportunities, and recognition events.

-Be sure to tell your donors how the funds have been used and report the results of your organization’s work.

Look for numerous tips and examples in Effective Donor Relations, a volume in the AFP Fund Development Series (John Wiley, 2008).

Click here to search the Catalog of Nonprofit Literature for other books and articles on donor relations.

Psychology and Fundraising

Asking individuals for donations may be one of the more difficult parts of your job. You need to develop the interpersonal communication skills to effectively convey your organization's needs, and convince the potential donor it is a worthwhile cause to support. According to consultants Bernard Ross and Clare Segal, understanding the donor relationship at the psychological level may one of the keys to success.

In their new book, The Influential Fundraiser, Ross and Segal address a number of questions:

-What motivates donors? What factors may cause them to loose interest?
-How do you develop the confidence and positive state of mind that will assure donors?
-How can you use your body language to build rapport?
-How can we determine quickly whether your donor is a visual or auditory person?

In addition, Ross and Segal explain how fundraisers can deal with rejections, emphasizing that timing is important when assessing donors’ decision-making strategies.

Find out more in The Influential Fundraiser: Using the Psychology of Persuasion to Achieve Outstanding Results, published by Jossey Bass.

Individual Giving Forecast (Schervish and Havens)

Charities are anticipating declines in giving this year as a result of the weakening economy. Will the declines be severe?  An article in the January 2009 issue of Trusts & Estates puts our current conditions in perspective with an analysis of historical data. Researchers John J. Havens and Paul G. Schervish look at one scenario: What if the stock market stayed at 30% below the levels seen at the beginning of 2008?

Based on their examination of previous recessions, Schervish and Havens forecast a 3-4% decline in individual giving in 2008 and a drop by the same amount in 2009. One key point in the article is that wealth does not decline at the same rate as the stock market, especially when households are have diversified portfolios.

Read more about their analysis in their article “Giving in Today’s Economy: What Can We Expect?”

Reminder: Visit our Focus on the Economic Crisis web site regularly for related resources on this topic.

Prospect Research Resources

If you plan to visit the Foundation Center library/learning center to use our prospect research resources mentioned in an earlier blog post, note that we have just acquired the latest edition of Prospect Research Fundamentals. While not as detailed as Cecilia Hogan’s Prospect Research: A Primer for Growing Nonprofits, visitors who are pressed for time may find that the 48-page booklet contains enough guidance to get started. Several experts contribute tips on:

-hiring prospect researchers

-using call reports

-developing a cultivation plan

-keeping track of prospect data

-researching individuals, foundations, and corporations

-rating prospects

-using technology

You will find several sample forms and documents as well.

Prospect Research Fundamentals, 3rd was edited by Michel Hudson and published by Stevenson, Inc.

Cultivating and Retaining Donors

When browsing the fundraising section of our Foundation Center libraries, you may come across Simone Joyaux and Tom Ahern’s new handbook, Keep Your Donors: The Guide to Better Communications and Stronger Relationships. Look through the volume for the practical advice you have been searching for:

-Learn about the “deadly sins” of solicitation, such as asking prematurely
-Understand how storytelling can support your fundraising efforts
-Determine your “social style” to improve your interpersonal communication
-Become familiar with the three types of case statements
-Recognize the common flaws found in newsletters

For other articles or books on donor relations, click here to search our Catalog of Nonprofit Literature.

Researching Individual Donors

You have asked been asked to strengthen your prospect research skills so that you can better identify and qualify potential donors. Where would you begin? You can start by exploring the resources listed in the Foundation Center's FAQ, “Where can I find information on cultivating donors?”  If you are located near our library/learning centers, attend our Prospect Research Basics class to learn about the search process and tools.

When you are at the library, discover more tips from our collection of books, including the new, updated edition of Prospect Research: A Primer for Growing Nonprofits (Jones and Barlett 2008) by Cecilia Hogan at the University of Puget Sound. The guide provides advice on a variety of topics including research planning, prospect screening, prospect tracking, and research tools. In a new chapter, Hogan explains how to use special formulas and calculations to estimate an individual’s giving capacity. You will also find useful documents in the appendix, including sample prospect research request forms to help streamline your procedures within your organization.

For additional information for prospect researchers, visit the Association of Professional Researchers for Advancement’s web site.