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Archive for the ‘resources’ Category

arm wresting competition

Soggydan

When most businesses think about their competition, they often identify businesses that offer similar products and services.

For example: HP thinks about Dell. American Airlines thinks about United Airlines. In essence, their competition is defined as those other businesses that compete for the same market share.

In a recent blog post, Shaun King highlighted that while this trend is true in business, it is not true for churches and nonprofits. In his post, “The MAJOR Disadvantage (& ugliness) of Non-Profits & Churches Misunderstanding Who Their Competition Is,” Shaun highlights that other nonprofits and churches are not in competition with each other.  He argues, instead, that the real competition is the factors that cause the problems.

For example:

  • If you are trying to fight hunger, the competition is poverty and access to food.
  • If you are trying to fight slavery, the competition is slave traders
  • If you are trying to fight drug crime, the competition is drug dealers

Unlike businesses, churches or nonprofits don’t compete against each other. Instead, they offer each other a partner for mission and work.

I really appreciated Shaun’s post and I would encourage other leaders to give it a read and to share it with their leaders in their organization. After all, operating a church is about changing lives, not fighting with other people who have the same goal.

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Bell Ringers

Akron Kiwanis

During the ‘Season of Giving,’ most of us are aware that churches and nonprofit organization rely upon the generosity of others for their operations.

Lest we forget, we often receive several letters, emails, phone calls, and of course we will see the Salvation Army bell ringers. However, while most of us are on the receiving end of soliciation… very few of us are aware of the great amount of detail and effort that larger nonprofit organizations use to research and track our giving habits.

Just like retailers and credit companies, many larger nonprofit organizations rely upon market research and public information to learn about our philanthropic passions and wealth. In a recenet NYT article, “Taking Fundraising to the Next Level, author Rob Lieber highlights just how a larger nonprofit organization like a hospital, college, or major foundation will likely track your information.

For most small nonprofit leaders, and most donors, this article will likely be the first time that you see how professional fundraising is done, and like the author, I would say that I support their efforts- even if it seems a little unsettling.

As I read this article, I thought it would also be a great way to help leaders of smaller nonprofit organizations see the bigger picture and learn how some of the biggest and best fundraisers in America support their causes and philanthropy organizations.

Enjoy the reading and have a Merry Christmas.

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group of people

laubarnes

If you follow trends in fundraising (most people don’t), then you may remember that America saw a shift in how organizations approach small donors during the 2008 election campaign.

Prior to 2008, most organizations had mainly focused on reaching major donors- and many still do. However, in 2008, there was a major shift in how organizations began to reach out to donors who made many small and medium sized gifts.  The two reasons being:

  1. Most potential major donors have already been targeted
  2. Technology has allowed better access and communication via email, internet, and mobile communciation

Together these two shifts have allowed more and more organizations to expand their base, and thus, improve the stability and size of their fundraising work. But when we look at this trend, however, we see that it has largely been adopted by larger nonprofit organizations, and not small nonprofits or churches.

So beyond the shift, what is the big deal as it relates to fundraising for churches?

Well the main reason is that churches have often been the envy of other nonprofit organizations, for the following reasons:

  • Churches usually have a loyal base that donates weekly, monthly, etc
  • Churches make a regular ask each week, most nonprofits only get 3-5 a year
  • Religious people tend donate 3 times more than non-religious people
  • Religion accounts for the largest segment of fundraising each year
  • People who attend church are usually versed in donating habits and believe in serving other

So with the shift of other nonprofits into expanding their base of small and middle donors… churches, and other small nonprofits, will now be competing more and more for the same donors and money. This competition will not really matter for donors who are over the age of 60 and who physically give in the offering plate each week. But it will matter for donors under the age of 60, who now want more and more access to online giving and better transparency of how their gifts are used.

Thus, if you are a church leader, I would strongly encourage you to work with your financial leadership team to start reviewing how members and participates are currently donating to your church, and how you can make donating more accessible via electronic transfers and online giving. By being aware of people’s financial habits, churches can better offer ways for members to support the mission, ministry, and operations of the church.

For more information about this trend, check out a recent article in the WSJ entitled, “Strength in Numbers

 

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If you have read the book Freakonomics, or listened to Marketplace on NPR, then you probably are familiar with Stephen J. Dubner’s use of statistics to explain common behaviors in economics and society.

As a stats junkie myself, I love their work, and on Tuesday’s Marketplace radio program- Dubner reported on some truths and myths about fundraising (to listen to the program, click the NPR link above). Dubner’s report included an interview with John List, who is a professor at the Univ of Chicago. Professor List studies the economics of charities

So here is a taste from the interview:

  • Seed Money helps– The more seed money that you have induces more people to give, and those people tend to give more money.
  • Matching Gifts– only work up to a 1-1 match.  People will not usually give more than the original match amount (this is contrary to most expert advice)
  • Raffles are a Big Deal– Research shows that by offering someone a prize will increase their gift by almost 100%
  • One & Done- This is new, but it gives control to the donor. Donors who are offered the “give us one gift and you can tell use never to contact you again” option, tend to give more money and more often. Few actually choose to not be contacted again.
  • Guilt Pleas Don’t Work– You may get a 1 time gift from guilt or shame tactics, but in the long run you are only burning bridges.

As you think about how to raise money for your organization and its operations, I would encourage you to consider this information. Take a moment to think about how you raise money for your annual fundraising, and take a second to listen to the full interview.

Blog Notes- the above bullets are paraphrases from the interview found in the Freakonomics & Marketplace Report for Nov. 29, 2011.

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White Chapel

photo: edgeplot

Unlike most commercial businesses, which have a common standard by which to rate their financial operations and health, churches struggle to identify healthy financial norms.

Part of the reason for this struggle has to do with the following reasons:

  • Churches are faith based organizations
  • Church are contextual
  • Churches are organized by mixed polity (denomination or independent)
  • Churches are exempt from many IRS and government reporting requirements
  • Churches vary in size, financial support, and ministry
  • Churches don’t usually follow GAAP (General Accepted Accounting Principles)
  • Churches are run by volunteers

However, while all of these factors cause incongruity, there are a number of common ratios and principles that many churches share related to income, expense, debt, membership and worship attendance. I have highlighted a few of these in some of my earlier posts (please see: Financial Rules: Ministry Distribution), but another resource is a new financial database that was created by Capin and Crouse, CPA. (more…)

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On Monday I was interviewed by Alex Johnson, a reporter for MSNBC.com about how churches are using social media.

In the interview I really tried to stress that churches really have a great opportunity to connect with their local communities (via social media), and that the conversation was taking place, with or without their official presence.  Here is the link to the full article: “For Some Churches, The Internet Clicks; for Others It Doesn’t”

social media

some_communication

Much of article focuses on how different denominations and local churches have adapted to using social media.  But, the article also helps to spell out that congregations need to think through how they plan to use it.  It is not enough just to create a facebook page or to have a static website.  Instead, churches really need to think about their ‘brand’ and what messages they hope to convey to their potential audience.

As you read the article, here are some helpful questions to ask about your church’s use of Social Media:

  1. Who are we trying to target?
  2. What is our overall goal for using Social Media
  3. What messages should we try to communicate?
  4. How can we participate in the conversation, rather than just push out information? (more…)

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mobile wallet

Feuillu

The holiday season is upon us, and I have begun to plan out my end of year donations. So far it has been fairly easy to make donations online, but in a few cases I have become frustrated by the multiple steps/screens to set up an account.

If you have ever tried to make an online donation, then likely you share my pain.

  • First, you log on to a website of your favorite charity.
  • Then you click the “Donate Now” button.
  • Next you are taken to an second screen and asked to fill out an online form with your name, address, and contact information.
  • Then are asked to enter your bank account or credit card info.
  • And finally you are asked to enter your amount and to click submit.

Now if you were not counting… that is approximately 5 steps.

Not bad, but what if it only took 1 step… sort of like swiping your credit card, writing a check, or dropping cash into an offering plate?

If banks and retail stores have figured out away to make shopping convenient, why can’t charities and banks find a way to make online giving easier?

Enter the mobile wallet.

Originally designed to assist customers to shop at online merchants, (more…)

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