Transformational Corporate Relations

Continuing on with our theme this week about concrete steps you can take to move your development program from transactional to Transformational, consider this corporate relations gem from Time Magazine.

Corporate relations initatives are either nonexistent or strikingly transactional at most nonprofits. The most common initiative is the corporate sponsorship, which goes something like this:

‘So for a $5,000 banquet sponsorship our executive director will plaster your logo to his forehead, we’ll mention your name in the program, and our next pregnant staff member will name his or her child after your company. What do you say?’

Never mind that such an approach is thoroughly transactional and largely ineffective. Worse, it rarely if ever leads to ongoing involvement in the cause by the corporation. And it doesn’t even contemplate the possibility that we might have a responsibility and an opportunity to coach corporations in relation to the cause.

Consider the appealing alternative reported by Time Magazine:

Carrotmobs.

As the article describes, Carrotmobs are kind of like reverse boycotts. The Carrotmob solicits bids from stores asking what percentage of profits the store is willing to donate to a specified cause should the mob be able to generate business at such and such a level.

While Carrotmobs so far have by and large been focused on the environmental movement, there’s no reason why the concept can’t be applied to Kingdom causes. After all, think of the multiple opportunities for transformation:

  • Businesses can be coached on profitable ways to impact the cause
  • New participants can be recruited for your cause. As the article notes, ‘Carrotmobs also carry extra appeal during tough economic times. Participants don’t have to donate anything. They just shop for products they were planning to buy anyway, adjusting the time and place of purchase. By doing so, they help green a local business.’

Best of all, it’s a win-win-win proposition. Unlike a boycott, there’s no rancor and no losers.

  • The business wins (increased sales).
  • The nonprofit wins (businesses–not just the winner but every business approached about submitting a proposal–learn about the cause; in addition, new participants can easily be recruited by the nonprofit’s owner-level champions).
  • The champions win (growing in relation to the cause).

Make sure to click through to the article so you can see an example of how owner-level champions and not organizations are tasked and equipped to recruit new participant-level champions for the cause. The story about Tony Montagnaro is worth the click in and of itself. Not only he is an owner recruiting participants, but he created a great SPP (Signature Participation Project) in the process. Not at all bad for a 19-year old who wouldn’t have even survived the wealth screening donor ranking rigamarole in most nonprofits!

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Using thank you receipt letters to grow champions

Our theme this week is ‘Simple steps you can take to move from transactional fundraising to Transformational Giving in your existing development program’.

Yesterday we highlighted a cool brochure (I think that’s the first time I used those two words in the same sentence).

Today we visit the wonderful world of thank you receipting in order to give a quick shout out to Amy Karjala, the Director of Development of Seoul USA,  the organization my wife and I founded that has soooooooo moved beyond that I need to stop referring to it that way.

(Amy also helped me to write the Coach Your Champions book, so when it comes to Transformational Giving she knoweth of what she speaketh.)

In any case, Amy’s doing something really cool with the Seoul USA thank you receipt letters: she’s using them to grow champions, not just thank them.

Thank you receipt letters are far and away the most opened pieces of mail we send to champions. Weird, then, that we slave over our fund raising appeal letters and acquisition letters but typically spend about 2.5 minutes writing the thank you note for the month.

Not so Amy.

Amy is jettisoning the time-honored (and thus nonsensical) practice of writing thank you letters by month (e.g., the May thank you letter, the June thank you letter, etc).

Instead, she is writing a thank you letter series, in which champions receive letter #1 in response to their first gift, letter #2 in response to their second gift, and so on. Each thank you letter is oriented toward providing the champion with a progressively practical bite-size growth morsel related to the cause and how the champion can impact it.

Most nonprofits do a specialized thank you letter for first-time givers. Many do specialized thank you letters for designated gifts. Amy’s approach takes that to the next level by enabling the first paragraph to be customized related to the gift intent before transitioning to an intentional lesson or equipping moment in the rest of the letter. She balances the thank you and the coaching lesson very nicely, and the lesson never comes across as an ask but rather as a ‘Since you sent us all that money, you might be interested in this opportunity to further impact the cause in your sphere of influence’ moment.

This is a great example of how coaching your champions can be scaled for a nonprofit with a large network of champions.

(Of course, a large nonprofit might respond by saying, ‘Yeah, but our receipting process doesn’t enable us to customize thank you letters that way.’ To which I respond, ‘If there’s ever a process worth reworking to enable maximum personalized interaction with your champions, it’s the receipting process.’)

As Seoul USA champions recognize that the thank you letter contains something even better than a receipt for tax purposes or a Crackerjack toy surprise, I expect the piece to assume even more primacy that it already does in the typical development program.

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A brochure I actually like

Brochures and DVDs are typically my two favorite whipping boys for what’s wrong with our fundraising programs. Nonprofits spend way too much time and money on them and frequently mistake a good brochure for a fundraising program.

So when I find a brochure I actually like, it’s a rare day indeed.

But I actually like this Hand_in_Hand_brochure from Joshua and Kelly Hallahan, missonaries with World Gospel Mission.

The Hallahans have done a nice job spelling out the covenantal nature of the relationship that I like to see typifying Engagement-level relationships with champions. In addition to listing resources about missions for the champion to read and study (with the assumption being that by partnering with the Hallahans the champion is committing to a path of growing maturity and involvement in missions), the Hallahans spell out how they intend to partner withthe champion, specifically:

· We will pray for your missionary efforts in your corner of the globe. Keep us posted!

· We will help you figure out what God is calling you to do in relation to your own missions service.

· We will hold you accountable to what God is calling you to do for missions in your own life.

· We will keep in touch, serving as your mutual accountability partners related to missions.

· We will come teach your small group or Sunday School class about being missions-active.

· If you are already involved in a mission of your own we would love to come serve with you!

I even like the picture on the front with the couple holding hands. As opposed to the Fundraising Success magazine cover that I wrote about last week that portrayed the nonprofit as a cowboy and the donor as a cow, this brochure bravely and boldly portrays the relationship between missionary and champion as an intimate and even affectionate one. It’s a really nice touch.
We’re going to be focusing on the subject of how to develop an explicit accountability covenant with your champions in our June/July Mission Increase Foundation workshop sequence on lapsed and jilted donors. (Such covenants can be instrumental in helping you reconnect with lapsed champions.) Make sure to sign up now, as our workshops start next week.
(And if you can’t make the workshop, keep your eye out in the MIF store for the DVD, which should be available mid-summer.)



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