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Archive for the ‘Understanding Donors’ Category

As some of you may already know, in my consulting practice I specialize in working with nonprofit organizations and other service-based entrepreneurs that are in a start-up or transitional stage of growth. I’m happy to say that there is now a book that can help each and every one of them, and I always recommend it.

50 Asks in 50 Weeks: A Guide to Better Fundraising for Your Small Development Shop by Amy Eisenstein, Certified Fundraising Executive (CFRE) is a breath of fresh air when it comes to books on fundraising. A quick and easy read for those who are already overwhelmed with how much they need to learn in order to operate and grow a business, it lays out a simple plan for incorporating “Asks” into the everyday, and by doing so, both strengthening relationships and increasing support dollars flowing into the organization.

The Language of Fundraising

Amy clearly lays out the language of fundraising and addresses common challenges in its implementation – from helping board members understand their role in the process to clarifying the process itself. For example, did you know that the solicitation (or “ask” part of the process – the one most people are hesitant to engage in) represents only 5% of the process? The most time-intensive part of the process (and, not coincidentally, the more fun part) lies in cultivation (50%) and stewardship (35%) … or, in other words, in developing and maintaining good relationships with people who are passionate about our cause. The remaining 10% of the process, which is often the most research-intensive part of the process, is identification.

Amy also address some common misperceptions about fundraising that new organizations have. For example, she says,

    “The old saying ‘quality not quantity’ rings true in the fundraising context. It is more important to make smart, informed asks than to make a certain numbers of asks each year. So although increasing the overall number of asks your organization is making is crucial, it is not enough. Prospective donors, whether foundations, corporations or individuals, must be carefully researched, cultivated, solicited, and stewarded. If you ask one hundred times per year, but do not receive any gifts, then frequency becomes irrelevant.”

An Easy-to-Implement Development Plan

In 50 Asks in 50 Weeks: A Guide to Better Fundraising for Your Small Development Shop, Ms. Eisenstein addresses the following major areas of fundraising as part of a total development plan: board giving, bulk solicitation via direct mail, email and social media, individual giving, grant writing, and events. She provides easy-to-implement tips on getting started with each type of development program, and at the end, helps you understand how they all build up to 50 asks in one year (about 1 ask per week). Very doable!

Leadership for Organizational Growth

Near the end of 50 Asks in 50 Weeks: A Guide to Better Fundraising for Your Small Development Shop, Ms. Eisenstein provides Executive Directors with guidance on key management topics such as when and how to hire your first development director (and understanding how the E.D.’s role in fundraising will change after you do), creating a fundraising culture within the organization (and the board), and setting reasonable team goals for development.

I absolutely love Amy’s Board Expectation Form and think everyone should use it. Completed annually and used as a tool for measuring board performance, it sets forth each board member’s 1) financial commitment (via a direct pledge or pledge of participation by his company) and 2) leadership commitment as part of at least one committee. It also requires an acknowledgement by the board member that meeting attendance is a requirement for Board membership. The Board Expectation form, along with a comprehensive Board Orientation Packet, provides clear indicators for performance.

Setting the Right Expectations

If you’re new to fundraising keep this in mind … according to Amy, executive directors often have “unrealistic expectations for what development staff can accomplish, especially with the tools and resources that they are given. A new development staff member will raise money in the first year, but it is not likely to (cover the individual’s salary via) unrestricted dollars.” Often money raised in the first year through grants is more than the individual’s salary, but as restricted program dollars, it cannot be spent on staff salary. So be prepared to cover the development staff’s salary with unrestricted dollars from other sources, and set other more realistic expectations, like …

  • Put a plan in place to achieve 100% board participation in fundraising.
  • Research and apply for eight to ten new grants. Establish relationships with foundation staff members.
  • Plan two parties for prospective donors at the homes of board members.
  • Identify ten individual prospects and create cultivation plans for each. Schedule meetings with them to meet board members and the E.D.

Then measure success and build upon the progress you’ve made.

In Conclusion

50 Asks in 50 Weeks: A Guide to Better Fundraising for Your Small Development Shop is sure to stay in my permanent business library, and it should be a part of yours, too. Simple changes can lead to big results. I give this book – and its author – my highest recommendation.

If you ever get a chance to hear Amy speak at a Grant Professionals Association (GPA) or Association of Fundraising Professionals (AFP) event, be sure to do so. She is both down-to-earth and engaging. I consider it a privilege to have met her at local GPA events here in New Jersey.

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References: 50 Asks in 50 Weeks: A Guide to Better Fundraising for Your Small Development Shop by Amy Eisenstein is available through Amazon. She can also be contacted via Tripoint Fundraising.

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As grant professionals, we are often asked about seeking money (or in-kind donations) from corporations, and many organizations believe that obtaining money (or in-kind donations) from corporations involves a single approach. This is not the case.

In reality, there are many types of social investment by corporations.

Corporate Philanthropy

The first is corporate philanthropy. This type of giving may or may not be funneled through a separate foundation and may or may not be related to a core set of business products and services.

It could take the form or direct giving (cash or in-kind donations), indirect giving (through organizations like Gifts In-Kind International), volunteer time and talent, giving tied to volunteer hours or commitments, giving that matches gifts made by employees, giving based on employee contributions, or scholarships to employees’ dependents. It holds the lowest expectation of financial return and provides a tax break to corporations.

Some corporations select a set of larger national charities to support. Others focus on giving in their local communities. Almost all tie giving to the areas where their employees live and work.

Some corporations accept proposals for consideration. Others give to pre-selected organizations. In many cases, companies keep giving amounts relatively low so that they can support a greater number of organizations and realize a greater social impact.

Finally, some corporations have a specific foundation officer or staff. Others manage the foundation and corporate giving through another department.

For all of these reasons, when seeking corporate philanthropy, it is important to understand the giving dynamics of the organization and to develop a relationship with them based on this understanding.

Corporate Sponsorship

What many organizations do not realize is that sponsorship of events by corporations often 1) taps into a different pot of money (typically dollars allocated to marketing, not philanthropy), 2) is more often tied to a company’s core product or service line, 3) involves a different set of expectations for what the company would receive as a return on its investment, and 4) typically involves in a different application process.

As a form of advertising, companies do not receive a charitable tax break on this type of giving. Instead, it is recorded as a business expense.

Some corporations accept proposals for corporate sponsorship (typically online) similar to the way they accept proposals for corporate philanthropy, but in most cases, this is not true. Obtaining corporate sponsorship dollars often requires developing a relationship with the marketing folks at a company of interest. And, in most cases, the companies you approach will be directly involved with your cause in some way.

Another important thing to note … nonprofits are typically looking for sponsorships for two kinds of events, fundraising events like galas and community events that spread awareness about a specific issue. A review of many corporate sponsorship guidelines, as well as personal experience, has shown that most corporations prefer to fund the latter. After all, exposure for their brand, and connection between their brand and a targeted cause, benefits the brand more than a fundraising event geared only to a few hundred people.

Keep this in mind as you create events (and the development plan) for your organization. As with all nonprofit development, it all comes down to research and aligning the interests of your organization with the interests of your potential funding partners.

Cause Marketing

Think of cause marketing as a more sophisticated level of corporate sponsorship. The relationship is even stronger; the expectations are even higher; and the benefits are meant to be more long-term for both parties. In addition, you have the added layer of expectations from consumers who will be buying a product or service with the goal of supporting a cause they care about.

Cause marketing can be a tricky business. Though it’s a growing form of corporate sponsorship, one that benefits the bottom-line of both parties, consumer perception can quickly lead to success or failure – to a positive brand association or a negative one that impacts your organization long-term. It’s not a situation to be entered into lightly.

Cause marketing relationships are more resource intensive as well, involving elements of “grantmaking, consumer and employment engagement, operations, policy, and marketing communications,” according to Penelope Cagney, author of Nonprofit Consulting Essentials: What Nonprofits and Consultants Need to Know. “Cause marketing consultants work with nonprofits to develop packaging and sales strategies, selection of sponsorship opportunities, management approaches, and measurement metrics for sponsors.”

To learn more about cause marketing, I recommend following the Selfish Giving blog, hosted by Joe Waters. One particular post helps differentiate between traditional corporate sponsorship and cause marketing: Cause Marketing vs. Sponsorship – What’s the Difference?

According to Cagney, American Express coined the phrase “cause marketing” in 1983 and when it first emerged, there were concerns – like there are today about the growth in PRIs (program-related investments) – that cause marketing would usurp traditional corporate philanthropy. In practice, however, that threat never materialized. Instead, cause marketing has become another source of funding for nonprofits interested in developing a diversified revenue base and one more way to engage corporations in their missions.

Corporate Social Responsibility (CSR)

Corporate social responsibility has become quite a business buzzword these days. Unlike the areas mentioned above, which may contribute to the short-term community impact of a corporation, typically efforts classified under corporate social responsibility are far more future-oriented, more proactive, and more likely to be tied to a company’s corporate (rather than product/service) identity and culture. They are often tied to the concept of sustainability and related to improving society’s perception that the business “acts responsibly”.

Typically, efforts are driven by internal forces, not approaches from nonprofits and other community agencies – though long-term cause marketing partnerships may be developed as part of an overall CSR plan.

Exploring the priorities a company has set under its corporate social responsibility focus can provide additional insight into management’s long-term vision and goals. How a company engages its employees in company efforts may also be important.

To stay up-to-date in the field of corporate social responsibility (CSR), I recommend Vault.com’s In Good Company CSR blog by Aman Singh Das. Here’s a post to get you started: The Advertising Take on CSR: 6 Steps to Building a Responsible Company.

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It isn’t often that I come across a children’s book that carries the perfect message for grant writers and fundraisers alike. We are always talking about getting to know our donors, building relationships with them, and finding the right ways to acknowledge their generosity, and Miss Fannie’s Hat covers it all in a heartfelt and tender way.

In Miss Fannie’s Hat, author Jan Karon recounts the story of her grandmother, Fannie, who lived to be one hundred years old. A beloved member of her church congregation, she became well known for her fanciful hats. Each Sunday, she would attend church wearing one, and she’d never wear the same hat two Sundays in a row.

A young pastor kindly asks Miss Fannie if she will donate one of her hats as part of an auction to help raise money to repair the church in time for Easter morning. As she makes the difficult decision about which hat to donate, Miss Fannie recalls the memories associated with each one, memories those outside her family may never know or appreciate.

The hat she chooses to donate turns out to be the one she’s worn to church every Easter for more than twenty years, so when it comes time to get ready for church on Easter morning, she finds herself at a loss for which hat to select. For the first time in as long as her daughter can remember, Miss Fannie attends church with no hat at all, choosing to reveal instead her “hair as soft as the feathers of a dove”.

Upon arriving at church, Miss Frannie and her daughter are delighted to find not only that the church bell and organ are repaired but that the church is surrounded by gardens filled with pink roses, roses reminiscent of the hat Miss Fannie so loved. “Now, when people pass the little white church, they think they’re seeing a garden of dazzling pink roses. But what they’re really seeing is Miss Fannie’s hat. And it will always, always be her favorite.”

Can you imagine a more fitting way to acknowledge the great gifts of our congregation and demonstrate appreciation for the sacrifice given?

I give this book my highest recommendation and hope that you will use this story to help your volunteers, board members, and staff understand the deep emotion that comes with cultivating each great gift.
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Miss Fannie’s Hat is available for purchase at amazon.com.

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In his well regarded book, What Clients Love: A Field Guide to Growing Your Business, Harry Beckwith highlights the real importance of going through the process of planning:

    “The value of planning is not in the plan. Planning teaches you and your colleagues about your business, market, customers, and each other. As you implement your plan, your prospects and clients will react, and their reactions will teach you more.”

This is true whether you are starting a new business, establishing your vision, mission, and objectives, setting forth your position in the market, developing a plan for donor development, or crafting a communications/marketing plan.

Many individuals (or business partners) start businesses because they want to work for themselves and think there is a need, but not enough of them do the research to truly understand how their concept might fit into the current market, how they could partner with others to make a bigger difference, or what their beneficiaries and supporters really need. Don’t make this mistake.

If you are considering the founding of a new business, or you sit on a board of directors that does not currently assess the market on an annual basis and adapt to current conditions — setting objectives based on real community need rather than individual perception and motivation to serve — take heed.

It’s time to change your process and involve all community stakeholders in your organization’s evolution. Sustainability rests on your ability to engage a constituency far larger than yourself. Get to know your local political leaders. Swap ideas and information with other organizations motivated to change the lives of the same population you target. Attend community events.

After all, the impact you envision is probably bigger than one individual. By understanding each individual story, each organization designed to serve, we can impact an entire community, an entire population.

Too often, we jump haphazardly into something new — a database that doesn’t quite meet all of our needs, a new fundraising vehicle that has no history of success, a new form of marketing or social media — without thinking it through, without understanding how it builds on what we already have in place, what impact it will have on our organization in the long run, how much it will truly cost to try it out. With a little more time, we can ensure that all of our decisions support sustainability and move us toward our vision for the future.

So take a moment — or two — and make your decisions in context. Invest in planning, test your results, and watch your circle of support grow.

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Read more about What Clients Love: A Field Guide to Growing Your Business and purchase the book at amazon.com.

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As grant writers, most of us know that the proposal is only one piece of the funding puzzle. In fact, it is often the piece that’s placed last, after much of the work is already done … vision and mission development, strategy setting, program planning, execution and measurement, the building of strong boards and volunteer programs, engagement with the public so that they know both who we are and how they can best help us achieve a shared vision, and, of course, collaboration with other community agencies and organizations that create change in the lives we most hope to touch.

But if you’ve read books on grant seeking, or you’ve looked for coursework focused on building skill in grant writing, these elements – the ones that often pave the way to a successful grant proposal – are typically missing. This is not true of Best Practices in Grant Seeking: Beyond the Proposal, a recent addition to the grant writer’s library.

Saadia Faruqi acknowledges in her introduction to the book, “It is rarely enough to write excellent proposals and sit back, waiting for them to get funded. No matter how brilliant the writer, it is not the proposal that gets accepted – or rejected – but the program and the people who run it.”

In 2004, Ms. Faruqi engaged in a research study that clearly demonstrated:

    “Organizations typically do not provide sufficient support and involvement to the grant seeking process at the leadership level, leaving grant professionals to be researchers, relationship-builders, community advocates, program designers, reporters, and grant managers. Few organizations, regardless of size, create grant seeking strategies that include not just the writer, but programs and public relations staff, board members, volunteers, and even clientele. This is done in many cases for other fundraising activities, such as major gifts or capital campaigns and even special events, but almost never for grants.”

So where does that leave us? Often frustrated, because we can’t get the information we need from the people who have it, and burnt out, because no one seems to acknowledge that funding success is less likely without the same support afforded to other aspects of an organization’s fundraising.

Redefining the Grants Function

Major factors impacting grant funding, according to Ms. Faruqi’s research:

    1. board relationships with funders,
    2. positive community image,
    3. successful site visits before the grant award,
    4. non-soliciting contact with funders,
    5. good reporting practices, and
    6. well-designed programs.

Through her chapters on fostering internal relationships, developing community image, designing stellar programs, and uniting to do good, Ms. Faruqi helps us put into place the critical elements that come before the grant proposal. Her next set of chapters focus on organizing (and measuring) the grants function, knowing our funders, and crafting winning proposals. Section three focuses on site visits, the critical time between grant submission and grant award. The last two chapters focus on stewardship and relationship building.

Ms. Faruqi allows us to see the grants function in perspective and prioritize our time and talent accordingly. If you’re a grant writer that doesn’t get involved with board development, publicity, program development, program evaluation, and stewardship, you may only be doing part of the job. That’s assuming you want to be as successful as you can possibly be, and that grant writing is about more than just writing to you. Do you want to fuel some kind of change in the world? Most of us have chosen grant writing as our contribution to an effort.

Now, More Than Ever

It has become clear in this downturned economy that the touch points we have with our funders, the relationships we have built, have more influence on whether we receive a grant than ever before. When given a choice between someone they know and they’re comfortable with (someone who has already proven to be a good investment), and someone they know only a little about through their grant proposal, it’s easier, less risky, to go with #1.

More than ever, we need to understand all elements that influence proposal success and to do all that we can to engage our full organization in the pursuit and development of the relationships that make our dreams more viable.

A Note for Consultants

If you’re a consultant interested in supporting the work of new and emerging nonprofits, this knowledge is even more essential. Why? Because before we jump into any grant seeking campaign for a new nonprofit, we need to help them put the right elements in place to support that effort. We need to help them set the right expectations, to understand what things need to be in place to maximize their grant writing success. They entrust us with that.

In Conclusion

Best Practices in Grant Seeking: Beyond the Proposal is an excellent investment. I give it my highest recommendation.

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“Compassion is … an open-hearted empathy for the suffering of others and the wish to free them from it … it is the human quality that allows us to reach out across differences in race, ethnicity, religion, or nationality, connecting with each other. It is a direct antidote to prejudice and aggression, promoting peace in ourselves and in the world.”

    ~ Lorne Ladner, PhD

This quote, from The Lost Art of Compassion: Discovering the Practice of Happiness in the Meeting of Buddhism and Psychology, highlights the importance of compassion in our lives as grant writers. Without compassion, we cannot bring about the positive changes we wish upon the world. We cannot tell the underlying story of our organization, its purpose and its impact. We cannot help others connect to our organization in a way that promotes action.

    “The more fully our deep values take their rightful place at the center of our personalities, the more we discover a sense of integration, wholeness, and contentment in the passing moments of our lives.” ~LL

We spend too much time doing things by rote, by routine, by habit. When we focus instead on the moment and the little joys that are present in it, we find a more peaceful, restful place – one where we feel purposeful and fulfilled.

How do we help our donors find that place of fulfillment? Help them to pause and live in the moment every now and again. Talk with them about what’s most important to them. Help them find a way to live out essential elements of their lives in a more deliberate, meaningful way through their connection to you.

The more authentic we are, and the more deliberately we live our lives, the more likely we are to embody compassion – both for ourselves and for others. We bypass regret, insecurity, fear and anxiety. Instead we find happiness.

Every donor should feel joy when they make a connection to your organization. That joy comes from compassionate intention.

Be open to it. We may be there to help others, but in order to achieve the goals we’ve set forth, we need to admit our vulnerabilities and accept love and compassion from the outside.

By accepting this love and compassion, we give our donors an opportunity to experience the joy that comes from heartfelt giving.

The Lost Art of Compassion: Discovering the Practice of Happiness in the Meeting of Buddhism and Psychology

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As grant writers, we are one of the first individuals to make contact with a potential donor, and often, we are one of the individuals involved in maintaining a relationship with that donor. But what qualities do we need to cultivate to ensure a lasting relationship with any given donor?

In his book, The 6 Secrets of a Lasting Relationship, Mark Goulston, M.D., shares with us his six secrets for maintaining a relationship over time: Chemistry, Respect, Enjoyment, Acceptance, Trust, and Empathy (CREATE).

Although Gouldson offer these in the context of maintaining romantic relationships, they are equally relevant to establishing and maintaining relationships with our donors. Benefits? Renewed involvement, revived enthusiasm, a stronger sense of partnership and commitment, greater capacity for solving problems effectively, mutual understanding, and a more durable bond. Worth exploring? I think so!

Chemistry

Let’s start with chemistry. Chemistry is that connection, that spark, that makes you feel like you were meant to know a person your whole life. In the work environment, there are people we find easy to work with, that we think can understand us like no one else. And, of course, there are others that we just don’t click with, that we can honestly say will never completely “get” us.

The same can be true of donors. Some donors give from their heart, they connect with our organization and our mission on a deeper level, one that only a few can truly understand. They have the same passion as our founder, and they help out in every way they can.

Other donors give in the moment, or in memory of another, or out of a sense of gratitude or guilt. It is important to understand how our donors are connecting with us and make sure we involve them appropriately.

Respect

Respect is a difficult thing to define or to teach, but somehow we know what it looks and feels like, don’t we? It’s in the way we listen to one another, the way we speak with one another, the way we consider each other when we’re apart. How do you show respect for your donors? What do you do to earn your donors’ respect? How do you keep it?

Enjoyment

We all know what it’s like to lose interest in something. We just don’t enjoy it anymore. It could be food. Or a job. Or an activity we do with friends. Or maybe the friends themselves. What happens when the enjoyment goes out of something? We let it go from our lives, right? Well, how do you promote enjoyment in your work environment and with your donors? They need to like being around you if you want to keep them involved.

Acceptance

Acceptance is a little easier to define. It’s the way you feel when someone loves you for who you are, strengths and weaknesses, good days and bad days, despite not liking you and some of your behaviors sometimes, right? Well, how does your organization maintain that balance – let people see some of your weaknesses; no one is perfect. Issues of integrity, accountability, and transparency come into play here. Don’t be afraid to ask for help. Sometimes it is in our moments of vulnerability that we forge the strongest bonds.

Trust

Trust is a biggie. Like acceptance, trust requires counting on someone outside of yourself. It requires vulnerability and openness. It comes from honesty. It comes from good listening. It comes from following through on what you promise. It comes from a deep emotional place that connects people. And it’s easy to lose. What are you doing to build trust, and maintain it?

Empathy

And finally, empathy. Probably the foundation of all the others. It is critical that we understand where our donors are coming from, what they are thinking, what’s important to them, why they have entrusted us with their time, talent, or treasure. It is also critical that we understand the deepest, most unexpressed needs of our work’s beneficiaries. For without empathy, we cannot deliver programs and services in an environment of trust and respect and acceptance. We cannot connect with the people that need us most. We cannot forge bonds built on chemistry and enjoyment. And we cannot live up to our maximum potential as we make our mark on the world.

The 6 Secrets of a Lasting Relationship

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Sometimes support from family foundations is the hardest the capture, but once captured, it can be a loyal source of funding for organizational sustainability and growth.

An article entitled, “Applying for Funding from Family Foundations: Results of a New Survey,” by Page Snow, chief philanthropic officer at Foundation Source and president of Foundation Source Advisors, appeared in the Guidestar newsletter (August 2009) and touched on how to establish on-going relationships with family foundations.

Her advice:

Think small.

“In this environment, nonprofits would be wise to look beyond the largest foundations to the largely untapped reservoir of philanthropic dollars in family foundations. Many operate almost invisibly, often providing needed funding in their own hometowns.”

Dealing with small family foundations requires a different approach than that involved with requesting support from multi-million dollar foundations.

Think relationships.

“Unlike dealing with large foundations, shipping off a well-crafted proposal to a family foundation is the last step in the cultivation process, not the first … three-quarters of family foundations say they do not consider unsolicited requests.”

In general, familyfoundations “already know who they want to give to.”

That doesn’t mean they never fund new organizations; they do appreciate new ideas. They just need to be approached differently. Developing personal relationships is paramount. So think about how your board and staff can do that. Network. Involve them as volunteers in your organization.

It may take longer to make connections with family foundations, but the effort is well worth it. Most often, family foundation provide “the holy grail of foundation funding – general operating support”.

Read more:
Applying for Funding from Family Foundations: Results of a New Survey

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Although a nonprofit’s web site and their online fundraising strategy is typically handled separately from any grant writing, it is important that the two elements are interlinked, whether you are approaching an individual donor or an institutional one.

Increasingly, we are seeing government, corporate, and foundation grant applications going online, and nonprofit organizations should take notice of this. Not only because it is one way for the entire industry to reduce cost and simplify the fundraising process, but because your web site has become a key information source for those seeking to support a cause.

If your web site adds nothing to your grant proposal, then consider what you can add to make a bigger impact.

This article by Alan Sharpe provides some additional insight into words (and buttons) you should incorporate into your nonprofit’s web site to engender trust, build relationships, capture new supporters, and have those supporters also become donors. It’s a worthwhile read, especially for those who rely on a Donate button to fuel online giving.

Online Fundraising – Are These Four Vital Words on Your Non Profit Fund Raising Website?

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Here’s an interesting article on how spending money – on ourselves, on material things, on others, and on experiences – can influence our sense of happiness. Worth reading …

Maybe Money Can Buy Happiness by Drake Bennett.

Conclusion: spending on prosocial experiences and giving to charity has a more lasting impact on happiness. Something else to think about as we connect with donors and guide their gifts.

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