GIVING & In a K-Shaped Recovery, Nonprofits Should Lean on Major Donors. #HarvardBusinessReview

… When nonprofits are under-resourced, their natural response is to turn to their donors. But is it realistic to expect a healthy stream of charitable contributions in the midst of the worst economic situation since the Great Depression?

Absolutely — if you approach the right people. Because even as unemployment soars, as tens of thousands of businesses close, and as default and eviction rates rise, a small but significant portion of the population is doing just fine, thank you.

Welcome to “the K-Shaped recovery,” in which the experience of the fortunate few is vastly different from the reality faced by the miserable many. Most of us are doing badly —some, desperately so — but others are doing well.

… People naturally project their personal financial worries onto others and assume that everyone around them is feeling the same degree of pain. But if you’re a nonprofit leader marinating in financial anxiety, I can assure you that many of your supporters are not feeling any financial pinch at all. In fact, those wealthy few may even be a bit more comfortable than usual, because their travel and entertainment plans have been curtailed by the pandemic.

This bifurcated economic recovery will undoubtedly amplify the trend of the last 40 years, where more and more charitable giving is coming from fewer and fewer donors. “Gilded Giving 2020,” a report from the Institute for Policy Studies, details this trend. The percentage of American households donating to charity dropped from 67% in 2002 to 53% in 2016, a decline that the report’s authors, Chuck Collins and Helen Flannery, blame largely on the increased economic precarity of the middle class. The report also notes that the 2017 Tax Cuts and Jobs Act, which effectively removed the charitable-deduction incentives for tens of millions of taxpayers by doubling the standard deduction, served to dampen charitable giving further among middle- and upper-middle-class families. It does not take much imagination to presume that this troubling trend will accelerate in the era of Covid-19. Many Americans got out of the habit of giving to charity in the Great Recession. Many more will join them in 2020 and beyond.

Read more at … https://hbr.org/2020/09/in-a-k-shaped-recovery-nonprofits-should-lean-on-major-donors?

MARKETING & 5 Common Pitfalls in Non-Profit Marketing

by Roman Kniahynyckyj, JULY 11, 2015.

lw_5_pitfallsWhen it comes to increasing donations for your non-profit organization, begging, pleading and coercion are not the answers. In fact these techniques are more likely to turn potential donors away. Here are some solutions to addressing common pitfalls to avoid in online marketing for non-profits…

1) Not Being Social...Pick one channel. Facebook is probably a good place to start. Setting up a social channel isn’t the end though. You may not have a lot of people interacting with you but when someone does ask you a question or comment on your page it’s important you respond appropriately…

2) Not Telling a Story.  Sharing a heart felt story about how donations have been used offers a powerful trigger for other potential donors… Help your website visitors understand and envision the impact of their donations. The more personal stories and long term community impact you can show the more likely you’ll keep people reading and move them towards a donation.

3) Not Creating A Wish List… Creating a non-profit wish list is a useful way to do this. Remember, any ‘ask’ must have a solid rationale for it – if you are asking for a new office computer make sure you let folks know your current computer is almost obsolete or is having trouble running the latest software.

4) Not Offering Social Proof.  In addition to showing where the money goes it’s important to show how the money already raised is being put to work. One of the best ways of offering this sort of social proof is through infographics that can be shared. Infographics are the perfect way to present a variety facts, figures and ideas in an easily digestible format…

5) Not Making it Insanely Easy to Donate.  If your website visitor has to click more once to get to a donation page from any page on your site they’re clicking too much. You will certainly have some visitors landing on your site ready to donate. If someone is ready and willing to donate don’t make it a challenge for them.

Read more at …
http://www.business2community.com/non-profit-marketing/5-common-pitfalls-in-non-profit-marketing-01273107.  (image: http://cdn.business2community.com/wp-content/uploads/2015/07/lw_5_pitfalls.jpg.jpg )