Not transactional

Of course no one says that they have a transactional approach to fundraising. How could you admit to such a thing?

But to get beyond transactions means that donors are not numbers to you. It means that after people give you feel more enthusiastic, not less, to talk with them, to plan with them, to dig in with them. It means full emotional investment in the relationship, not looking over your shoulder at the clock. It means taking the notion of “partnership” seriously.

No one will ever say that they believe relationships should be transactional, but it takes guts to fully invest. You can’t fake it.

Systems and caring

Do you have a system in place that helps you let your customers (donors) let you know that you care?

What I see more often is that people either:

  1. Care about customers (donors) but don’t have a system
  2. Have a system but don’t really care (or don’t succeed in sending messages that communicate care)

That is, you want your customers to experience how much you care, and need to do this in a way that prioritizes the most important customers and doesn’t suck the life out of your communication or your relationship.

Usually what happens is either that people care tremendously but feel that a systematic approach will somehow undermine the purity of that relationship, or they figure that efficiency is really important so do things like send the exact same message to 20 people, which all 20 people see through immediately.

The tough part thing is that really caring doesn’t actually scale all that well, so your list has to remain shorter than you might like so that the roots can grow deeper.

Finding the line

A friend of mine, a great salesman, was giving advice to a colleague of mine who was new to fundraising.

His suggestion: if you don’t get thrown out of at least one meeting in your first year you’re not being bold enough in your asks.

This wasn’t conceptual advice – it meant actually physically being shown the door.

Now I admit in nearly six years of fundraising I haven’t actually been thrown out, but I’ve definitely made some pretty outrageous asks.  At the same time, until I actually find the line I don’t fully know where it is.

You could be fundraising, you could be a freelancer, you could be selling just about anything – 9 times out of 10 we all are less bold than we could be and should be.

Yes be respectful, always, but find the line.

Mailing it in

Today I received emails from class representatives from both my high school and graduate school asking me to give as part of an annual campaign.

Both asks were identical: our participation rates are low, please give so we can increase that number (one of them said that if we got to 40% our class could get a free dinner…we were at 13% and have a few days to go.  Good luck with that).

It’s such a dismal approach that I can’t dignify it by calling it fundraising.  It feels like a bill collector aiming for the lowest level of shame (“give us something”) in the hopes that if you pester people enough with a safe, familiar approach you’ll create enough miniscule annuity streams that it will somehow pay off in the end (it doesn’t – the math doesn’t work).

It would take so little to tell one – just one – very short story:

Dear Sasha,

I know how busy you are and how many emails you receive.  I also know how important [school] was to you, and I wanted to tell you one story that caught my attention last year, and I hope that reading this will encourage you to give as part of our annual campaign [LINK].

When we were students, only 15% of our class received scholarships.  Now that number has jumped to 65%.  Just last year, [name] who was on a full scholarship to [school] was accepted to a [great school], also on a full scholarship.  She is aiming to be an engineer and is already part of an incredible research lab working on bioinformatics.  [Name] was always a leader in the [school] community, and while we aren’t surprised at her success couldn’t be prouder – and it’s a success we can all share in.

We’re hoping you will join your classmates and give this year to support this kind of success.  We all share the sense that the education we received was the foundation of so much we’ve accomplished in our lives.  Let’s do what we can to share that success with others.  Even just $10 to show your participation would mean a lot.

[nice big button – click to give]

– Class representative

This letter I’ve written isn’t even that good, but it’s a start.  It shows respect to the recipient.  It takes a stab at creating an emotional connection and allows the alumnus to ascribe meaning to the action you’re asking him to take.  It reinforces the connection he already feels to the institution.

“That’s the way we’ve always done it” is no excuse for doing something without an ounce of heart, soul, or courage.  Give all of us the respect of showing us why you’re asking, and (if you dare) take the added step of helping us understand that we already are part of something that was hugely important in our lives.

You’re contacting people anyway.  Why not try to make it good?  Lord knows it couldn’t be any worse.

Fundraising problem

Here’s the conundrum: transactions happen today, relationships build over months, even years.   Real relationship-building doesn’t conform to rules of thumb or your annual targets.  Also, if you’re building from scratch, it could take years to get from here to there.

Meanwhile, you feel like you have a fundraising problem today.  Your real problem is that you’re the only person who has that problem.  Your potential funder does not have a fundraising problem.  Or a giving problem.  She has, we hope, a “getting something done in the world” problem.

The paradox is that doing this right is a long term build and you have to be clear about what success looks like.  The seemingly contradictory mistakes you must avoid are: 1. Walking around and just seeing your short term needs; and 2. Never being ready with a real, crisp, compelling ask at the right time and the right way.

When is that right time?  It’s kind of a Goldilocks question, but if you’re not sure what your answer is my bet is that it’s sooner than you think (better to ask too soon and fail a few times than to wait too long).  Through it all, you need to experience and communicate a sense of urgency about your mission, clarity about what you’re doing, and readiness to articulate what you are trying to accomplish and how a funder can be a part of it.

But people, like dogs, can smell fear and desperation a mile away.

Generosity partnership

Yesterday I had the pleasure to spend a few hours at one of Seth Godin’s seminars.  If you believe in making a ruckus, if you’d benefit from a day of real conversation (and inspiration, and stories, and plenty of laughs) about why it’s up to you to make a ruckus, then you have to find a way to get one of these seminars.  The day will challenge you AND give you tons of tools to speed you on your way (plus great giveaways!).  It costs as little as $300 a person if you bring a group which is an amazing deal.

One guy I met there, who will soon be running a school, told me that he couldn’t get his old school to pay for the seminar (“they felt like the couldn’t quantify the value of it”).  So a trustee who is a fan of Seth’s sponsored him instead.  I love the notion of not being able to quantify the value of day that could accelerate someone’s journey to becoming a transformational leader.  Kind of a “it’s warmer in the summer than it is in the country” analysis.  (Value of becoming a transformational leader = more or less infinite, right?)

Anyhow….

Seth did a session on nonprofit fundraising, which he led off with a riff that began “Fundraising is a generosity partnership for both people.”

Let’s pause get our heads around that for a minute.

A while ago I succeeded in creating a ruckus by writing a manifesto for nonprofit CEOs.  In it I argued that we have to reinvent fundraising, first and foremost by discarding the notion that what we do as fundraisers and nonprofit leaders doesn’t have value.  Of course it does, and when we realize that, when we really own that, we change everything – power dynamics, the sense of our own worth, our motivation and courage to get out there and tell our story, everything.

I still think this is all right, and nearly four years later I’ve also figured out that it’s not the whole story.

“Fundraising is a generosity partnership for both people.”

For both people?  That means we have the chance to be generous. Us.  The fundraisers  Wait, isn’t this about someone else giving?

If fundraising is a generosity partnership, that means we have something real to give, something of value.  That means it’s not just that we need the courage to get to the starting line and recognize that we’re doing something worth paying attention to.  We need to go a whole lot further and recognize the true value of what we are offering:  the chance to make a change in the world; the chance to be part of a group of like-minded people who won’t accept the status quo and who wake up every morning to fight for change; the chance to create meaning and healing and hope and possibility.

When you say it like that it becomes obvious that these things are worth the same or more than the philanthropist ends up giving – they have to be, or why would she give in the first place?  The philanthropists knows this, that’s why she cares and that’s why she gives.  We are the ones who forget it.

“Fundraising is a generosity partnership.”

So when you lack courage, when you’re hiding, when you’re doing everything but getting out there and telling your story, when you’re doing everything but building your tribe and raising the resources to do what you’re here to do, your mantra is:

I have something to give.  I have something to give.  I have something to give.

Something that’s really worth something.  Something that’s worth everything.

Scarcity

A student at a nonprofit school of management told me that they are learning a lot about how to operate under conditions of scarcity – because that’s what the nonprofit sector is like.

The catch is that if you start with the notion of scarcity and how to cope with it, that’s your mindset.  Money is scarce, it’s a zero sum game, you see constraints all around you.   You’re being taught to operate within a broken system.

Let’s break this system (that includes the schools with this mindset).  Let’s reinforce in our students a mindset of abundance, of possibility, of agency.  And then let’s rip out all the classes and lectures about scarcity and replace them with lectures from the best fundraisers and executive directors and philanthropists we can find – so we can give students the tools to create these conditions of abundance.

Friction

Reflecting on the last two days’ posts – one on the long, hard, stupid way and one on mobile gift giving, I’m left with the notion that if we’re going to bring on serious partners to solve serious problems, then we actually need some friction.

That is: Kony2012 is essentially frictionless.  It spreads like wildfire.  But the disconnect between the apparent ease of “doing something” about Kony (“buy your Kony action kit”) and what it will take to address all the complexities in Northern Uganda and beyond is….stark, to say the least.

It seems like we have three options:

  1. Confine high-velocity, frictionless stories to ideas that are pretty simple
  2. Use high-velocity, frictionless stories as the hook to get people’s attention, and then start a longer, more engaged dialogue
  3. Decide that real solutions will require embracing complexity from the get-go – so a big push to engage with an audience that craves simplicity is actually not time and money well spent.

Which do you choose?

The long, hard, stupid way

Later this month I’m speaking at the DO Lectures, and as part of my preparation I wanted to see a few of the lectures to get a flavor for the event and the talks. From the DO site I randomly picked the first popular talk, Frank Chimero’s “Do things the long, hard, stupid way.”

Of course, the talk is all about giving gifts. Kismet.

Frank describes himself as a “graphic designer, teacher and writer,” who, of course, does a talk with no slides (because that’s the “long, hard, and stupid way” for a graphic designer to give a talk).

The “long, hard, stupid” quotation comes from David Chang, celebrated restaurateur and proprietor of one of my favorite restaurants in the world, Momofuku on the Lower East Side of Manhattan. According to Frank, David once bit the head off of a line cook at one of his restaurants for taking a shortcut in making a dish, excoriating him because, “Just because we’re a casual restaurant, doesn’t mean we don’t hold ourselves to fine dining standards. We try to do things the right way. That usually means doing things the long, hard, stupid way.”

(I actually made David Chang’s Momofuku ramen from scratch once, in December 2010 right before I stopped eating meat. It took about 40 hours from start to finish and it definitely IS a long, hard, stupid recipe. It is also unbearably, fabulously delicious. Here’s the photo).

“Long, hard and stupid” is about doing things that don’t make sense in the traditional sense. “Long, hard and stupid” is about care and craftsmanship and love.

Frank’s talk is mostly about gift-giving, going deep into what makes a gift a gift. A gift isn’t the brightest, shiniest thing, it something which has value put into it by the giver. The giver of a gift lets go of something she can never fully get back. There’s a reason why parents keep birthday cards from their kids for decades.

Something about Frank’s talk connected a lot of dots for me. My father is a concert pianist and, romantic notions of what that’s like notwithstanding, growing up hearing my father practice meant experiencing, vicariously, the “long, hard, stupid way” every day. The way he practices is far beyond reasonable, far beyond what might make sense or be efficient by any objective standard. It is about perfection. It is based on drive and love and the pursuit of something that only he sees.

So, when I was in 6th grade, he was stuck on a particularly tricky passage of Beethoven’s Emperor Concerto and he’d call me to his piano every two weeks to say “I’ve got it!” and he’d play the passage for me. It would sound perfect. A few days later he’d be back to the drawing board with a new fingering, and a few weeks later that would also sound perfect. And on and on he’d go, for months. In the midst of this madness, I was walking to school one day and a big truck honked – I actually heard the start of those same 32 measures that I’d heard, at that point, hundreds of times. That might sound amazingly erudite, but really it’s just plain crazy. And a little bit inspiring.

Bringing things back to today, Frank’s talk unlocked a mystery that’s been lurking in the background ever since I came to Acumen Fund more than five years ago. In the early days of my career, the one thing that terrified me was the notion of ever having to sell ANYTHING. Sales people were extroverts who loved cocktail parties where they knew nobody; they went to the bar at the end of 16 hour workdays so they could meet a few more new people. I knew that I could never sell because at the end of that same 16 hour day, all I wanted to do was get back to my hotel room and steal a few precious moments with a good book.

And then I got to Acumen Fund and found myself….selling. Sitting across from people telling our story. Helping conceive and execute a $100 million capital raise. Pounding the table telling people that they have radically misunderstood fundraising and that it’s something they HAVE to do if they’re going to succeed in the nonprofit sector.

How did I make the leap?

The “long, hard, stupid way,” of course. Meaning I cared enough and believed enough in what Acumen is doing, which meant that I could put love and passion into the work. When I sit across from someone who might give to Acumen, I’m not shilling some interchangeable widget, I’m sharing a vision, one of hope and possibility and making a dent in the universe if we all pull together and slog through the hard, messy, often unrewarding work of making real change.

When I share that passion and hope, I’m giving a gift.

And yet the world tells us every day that the “long, hard, stupid way” doesn’t make any sense. It’s impractical. You can and you must cut corners here and there.

Really?

If you’ve read the Steve Jobs biography you know how famously passionate Jobs was about every last detail of everything. Apple, the most valuable, most revered company of our time, designs products “the long, hard, stupid” way, and the day they stop doing that is the day they’ll no longer be Apple. And it’s not just them – now that everything is easily available and wildly affordable, we spend our energy seeking out things that haven’t been found, things that exude caring and attention to detail and craftsmanship. Why? Because it’s impossible not to notice when someone cared more than they should have about what they were making. We can feel that essence, and it moves us. We seek out objects, and people, who give gifts in everything they do.

Our opportunity, today, is to recognize that now more than ever, how we do everything is what defines us, what humanizes us, and what differentiates us. To recognize that cutting corners is a race to the bottom. To see that we’re not going to make massive change by cutting one more corner or by squeezing out that last half a percent of efficiency.

We have the opportunity, today, to give our gift to the world.

Giving this gift is what changes everything.

Take a cue from the gym

I used to have a 45 minute (or longer) drive to work, and NPR saved my life.  90 minutes of intelligent programming a day made the drive almost bearable.

So it was with some nostalgia that I listened last week to the WNYC spring fundraiser, to an interview with Mark Bittman and an offer to get his new cookbook for free if you donated “$180, or became a sustaining member for just $15 a month.”

I can’t figure out why you’d focus on $180.  $15 a month is the pitch.

Think about your gym membership which, in New York, will run you about $100 a month.  There’s a reason why New York Sports Club doesn’t advertise that you can join for “just $1,400 a year.”  It’s the same reason that I never think about the fact that having two iPhones costs me and my wife nearly $2,000 a year, that DirecTV costs about $600 a year…and on and on.

Take a cue from the gym – pitch monthly recurring donations every time.