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Since March 2020, our motto at JGA has been “generosity is not cancelled.” So many things in our lives have been cancelled due to the pandemic, but generosity is not one of them. Donors have not stopped sharing their gifts of time, talent, and treasure. We have seen this generosity in support of campaigns, days of giving, and ongoing operations, as well as a continued commitment to volunteerism – although the format has changed in a virtual world.

What does this mean for 2021? As you look toward continuing to raise philanthropic support for your mission in 2021, what will you do to set the stage for generosity to continue?

There is a multi-dimensional challenge facing churches in America that has me concerned, and I think you should be as well. Given my background, it should not surprise you that I am concerned about this matter. (Prior to joining JGA as a senior consultant, I spent twenty-five years working in development for a religious institution, and during my twelve years with JGA, I have worked with more than fifty faith-based organizations.) The challenge is related to several troubling trends in the current U.S. religious landscape. As I will explain later, I think you also should be concerned . . . whether or not your fundraising is for a religious-affiliated organization.

My concern is threefold: 1) Giving to religious organizations as a percentage of total philanthropy is declining substantially; 2) participation in congregations is at a historic low; and 3) the changed religious practices brought on by the COVID-19 pandemic could have a continuing, long-term impact on congregations.

Last night President Trump signed the new economic stimulus package that provides $900 billion in emergency relief funds. Although the discussion has understandably focused on the $600 stimulus checks, there are also significant provisions associated with charitable giving and the nonprofit sector.

Keep in mind that these are not the primary reasons a donor makes a gift. Your mission matters the most. Tax planning affects how they give, not why.

We are pleased to offer this guest blog post by Tyrone McKinley Freeman, Ph.D. If you would like to learn more about Madam C.J. Walker and the tradition of Black philanthropy, listen to the webinar which we recently recorded with Dr. Freeman, Madam C.J. Walker's Gospel of Giving: Insights on the Past, Present, and Future of African American Generosity.

By Tyrone McKinley Freeman, Ph.D. 

As we search for positive outcomes from the COVID-19 pandemic, we might note that our tech skills have improved, or maybe we’ve mastered a new way to do second-grade math. But certainly, other lessons learned could have a longer shelf life, like unexpected opportunities with donors and prospects or adaptations on the fly that actually seem to work!

It is important to reflect on what ideas and practices have risen to the top as necessity forced us to try different ways to communicate and connect with one another. One thing is sure, large doses of flexibility and understanding were needed—and still are—to navigate the situations that seem to change by the minute in our professional and personal lives in the times we are in.

I recently hosted a webinar with Melanie Harmon, Senior VP of Advancement at Manchester College, focused on Frontline Fundraising and Events Go Virtual: A Look at Donor Engagement Techniques that explored some takeaways from the past few months for our work with donors. Here is an overview of some of those lessons and ideas on incorporating them into our work in the months and years to come.

Challenge gifts are a mainstay of most nonprofit fundraising programs for one very good reason . . . they are effective! For decades nonprofits in all sectors have utilized challenge gifts to incentivize giving to achieve a variety of goals.  Their effectiveness has not waned.  They work in any number of situations.  They work with all generations.  Leveraging giving has universal appeal!

Although fundraisers can provide numerous anecdotes of how challenge gifts have stimulated giving, formal research also has shown that challenge gifts attract donors and increase contributions.  One study conducted by Daniel Rondeau and John List in 2008, “Matching and Challenge Gifts to Charity:  Evidence from Laboratory and Natural Field Experiments,” revealed that challenge gifts attracted 23% more donors and increased total dollar contributions 18%. 

Have you looked at your overall and new donor retention rates lately? If your organization is like most other nonprofit organizations, there is ample room for improvement.  According to the 2017 Association of Fundraising Professionals’ (AFP) 2017 Fundraising Effectiveness Survey Report, the average overall donor retention rate for the nearly 11,000 nonprofits participating in the study was 45%. The average new donor retention rate was 23%. 

As noted in the AFP report, for the past 10 years, the average overall donor retention rate has been less than 50%.

How can your organization move the needle on donor retention?  A good place to start is with donor stewardship.

I’ve spent a good deal of my career thinking about events and how to best use them in successful development programs. I’ve worked for organizations where key special events serve as the base of their philanthropic outreach.

A common practice among nonprofit organizations -- the offering of naming opportunities to donors – is seemingly receiving increased scrutiny. In the past fifteen months, for example, The New York Times featured an op-ed article on revising the way tax law treats naming rights and The Wall Street Journal ran a story on how naming rights can go wrong, focusing on a legal battle over a gift made by country singer Garth Brooks.

After 19 years of consulting, the feasibility study process is still the most rewarding work that I do at JGA. We are honored that so many esteemed nonprofit organizations trust JGA to step into key donor relationships and assist in strengthening donor bonds that advance their missions.