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Donor engagement and retention techniques: Invest time now to solidify donor relationships

By Sponsor Insight

by Andy Canada, senior consultant, director of data analytics, Johnson, Grossnickle and Associate

While we need to work to engage all of our donors, many nonprofits have experienced the benefit of an influx of new donors in response to the pandemic’s challenges. What can you do to engage and retain these new donors as well as deepen your relationships with your existing donor pool?

Donor Engagement

While we are operating in unusual times, you do not want to throw out your tried-and-true ways of engaging and stewarding your donors. But, you might consider adding the following strategies as well.

Personal connections: Think creatively about how to create personal connections with donors, such as engaging with donors via FaceTime to capture a specific meaningful moment at your organization. Engage board members, leadership team members, volunteers, and other donors in thank you calls. Hearing from someone new will expand donors’ connections and engagement with your organization.

Technology techniques: Using technology to your advantage has hopefully become easier than ever over the past year. There are multiple platforms that can be very effective with donors who are now more familiar with different means of communicating. Tell your story from the perspective of those you serve — send short video messages telling the story of how lives have been changed by gifts from generous donors. You might also share short “day in the life” videos from the heart of your organization — such as the teacher, direct care staff, curator, cook — to give a glimpse into real-world impact.

Peer engagement: Encourage peer-to-peer fundraising or use third-party events to deepen engagement and spread your reach. Personal referrals will never go out of style. Identify donors who can advocate on your behalf to reach out and engage new donors. This will create an additional touchpoint and provide a way to ask for additional support from a peer or for a specific program.

Donor Retention

Research from the Fundraising Effectiveness Project indicates first time donors only donate again about 20 percent of the time. However, if a donor makes a second donation, the chance of them continuing to contribute is 60 percent. Invest in new donors now, because retaining a donor for multiple years will more than make up for the initial investment.

Welcome them: Work quickly to welcome and engage new donors as soon as they make their first donation. Create a welcome plan for new donors, that goes beyond a welcome packet. Within 48 hours of their gift, send sending a thank-you card or a handwritten note from a leadership staff or volunteer. Then, continue to reach out with special touches throughout the year — maybe a personal email with a picture or short personal video clip.

Create a connection: Create high levels of buy-in from your donors by building their sense of investment in the organization. Follow up to promote opportunities for them to get involved in a non-monetary way, such as volunteering. Volunteers are among the most motivated donors. Develop ways to engage volunteers remotely during the pandemic, if possible, but also just make sure you stay in touch with your volunteers now so that when it is safe to return to in-person volunteer activities, your donors are still engaged and committed.

One way to stay in touch is by offering them opportunities to give feedback. Ask for their advice via an electronic survey, email exchange, or phone call. Allow donors to openly share what motivates them to give and use that information to identify potential gaps in your program. One caution though, be prepared if you ask for feedback, to act on it and implement changes as needed.

Plan for their next gift: Create a “second gift” strategy for new donors before the one-year anniversary of the first gift. Many organizations mistakenly wait until the first-year anniversary of a gift before reaching out and asking for another gift. While acknowledging the anniversary of a gift is a great strategy, don’t let that be the first-time new donors hear from you again.

To help retain donors, it is also important to make giving easy. First and foremost, you need to make sure your online donation page is mobile responsive and user-friendly. Then, make sure you offer donors a recurring gift option and tell them how a consistent gift can benefit those you serve. You can also promote low dollar amount gifts ($5 to $15) to re-engage first-time donors and encourage them to give regularly.

Matching gifts are not just for major gift programs or capital campaigns, they can also be very effective in retaining new donors. Secure a challenge gift from one of your long-time supporters to encourage new donors to give a renewal gift or enter a monthly giving society.

Finally, think through how you can identify those new donors who may have the potential to make a major gift if cultivated and engaged properly. Make sure you conduct electronic screening on new donors you may have gained over the past year. Determine if any should be assigned to a major gift officer for more personal engagement.

If you put in the work early on to retain new donors and stay engaged with your existing donors, they will stick with you when it counts.


Andy Canada is senior consultant and director of data analytics at Johnson, Grossnickle and Associates, a strategic consulting firm located in Indiana that focuses on higher education.

For nonprofits, moving forward requires looking back

By Sponsor Insight

Research reveals top concerns among nonprofits as they work on recovering from pandemic

by Leslie Wells, assistant director of communications, Paul H. O’Neill School of Public and Environmental Affairs at IUPUI

New research on COVID-19’s impact on the nonprofit sector finds that organization leaders who want to find a way forward must first look back at how they have weathered the pandemic thus far. While the past 15 months have been a challenge for every sector, associate professor/researcher Marlene Walk is optimistic about the future of nonprofits.

“It’s very interesting how nonprofits rose to the challenge while still serving those in need,” says Walk, who teaches at the Paul H. O’Neill School of Public and Environmental at IUPUI. “For many smaller nonprofits, this was a survival situation for both their clients and them as well.”

After analyzing data and examining trends, Walk has three pieces of advice for nonprofits as they navigate the return to work and the future of their organizations:

  • Ask employees for their opinions, including about remote work and whether it can/should continue.
  • Determine which organizational practices can be improved upon.
  • Evaluate which new technologies adopted during the pandemic should be institutionalized.

Walk and O’Neill student Abby Klippel recently worked with Mandi Stewart, an associate professor at North Carolina State University, and Kerry Kuenzi, assistant professor at the University of Wisconsin-Green Bay, to analyze 77 COVID-19 impact reports collected through the National Council of Nonprofits. These reports detail how nonprofits have operated since March 2020. The data analysis covers more than 23,000 nonprofit organizations across 43 states.

The team released its updated report on May 5, 2021, focusing on three areas of impact: financial indicators, human resources and employees, and the most common COVID-19 concerns.

Survey results: Common COVID-19 concerns

Organizations in 13 states answered questions about their most pressing issues. Among them, finances were the most common COVID-19-related worry for organizations in nine of those states.

Nonprofits in eight other states ranked “struggling with how to safely offer services during a global pandemic” as their top concern.

Lastly, nonprofits in six states were primarily worried about their own organization’s human resource considerations, including their employees’ job status, salaries, and overall well-being.

The human toll

That third area is Walk’s primary research focus — the employee side of the equation.

Previous studies from Johns Hopkins University showed the nonprofit sector lost about 13% of its workforce from March 2020 to February 2021.

“That mirrors what we see in our research,” Walk says. “It will take years for that workforce to recover that number of lost workers.”

She says while large organizations will likely be fine, how smaller organizations handled the pandemic will have a big impact on their future.

“We’re really interested in the employee perspective,” Walk explains. “How do they perceive their organization’s changes? If a nonprofit laid off 20% of its workforce, how does that impact those who are still there?”

Their research found that many nonprofit workers saw their hours reduced, their pay cut, and, in some cases, their jobs put on hold or eliminated. Much like in other sectors, many also saw a shift to predominately remote work.

“These organizations need to look at what worked well from an employee perspective, not just a financial perspective,” Walk says. “Our fear is that employees may feel this pandemic was such a critical incident, and that their employer didn’t handle it well, that they will choose to leave.”

Another report Walk is working on, due out later this year, seems to also show the other side of the spectrum.

“Our initial research is showing that some employees have doubled down on their commitment to the nonprofit sector,” she says. “It really depends on how they were personally affected by COVID and how they think their organization handled it. Was their psychological contract, those unwritten expectations of their organization, violated? That has a big impact.”

Financial stressors

When it came to the financial impact of COVID-19, Walk admits the team wasn’t surprised by the findings. Many organizations reported individual donations and membership fees were down. In fact, 90% of responding organizations in Nevada saw individual donations plummet and 68% of nonprofits in Texas saw a decline in earned income.

Grant revenues were down as well. Nearly 35% of respondents in Texas reported a delay in grant processing, which can affect cash flow. About 16% of those in Connecticut saw a reduction in state grant funds.

But one of the hardest hit areas were arts-related nonprofits.

“It’s important to keep in mind that nonprofits are really diverse,” Walk says. “How an organization was impacted really depends on what types of nonprofits we’re looking at. The arts sector was hit very hard because they often have outward-facing events as a main source of revenue. Having concerts virtually is just not the same.”

In fact, 90% of West Virginia’s responding nonprofits reported cancelling events due to pandemic precautions, while the same was true of 25% of nonprofits in Alabama and Georgia. Reports like these indicate that the arts sector is the slowest sector to recover, with studies projecting it will take at least 18 months for it to bounce back.

Walk stresses that it’s important to focus on more than earned income, though. She uses social services as an example of organizations that were hit from both sides.

“Social service organizations had to adjust to drops in volunteers, increases in demand and expenses to provide for clients, and shifts in procedures due to distancing and cleaning requirements,” she explains.

Respondents in Missouri indicated an average expense increase of $302,417 per nonprofit during the study period, while Pennsylvania respondents indicated a total estimated $95.3 million in additional operating costs.

Looking ahead

Between the numbers, Walk sees signs of hope and further proof that the nonprofit sector is resilient and capable of adapting to change.

She points to the increase in collaboration, resource sharing and partnership development during the pandemic that helped nonprofits survive and serve their clients. Some smaller nonprofits even added health care to their employment packages, which would be a positive trend — if it sticks around.

“There will be collateral damage, unfortunately, but I tend to be more positive than negative,” Walk admits. “I think the sector as a whole will recover and continue its mission to serve.”

To read the full article and access the data tables, visit States of COVID-19: Synthesis of State-level Nonprofit Reports on the Impact of the COVID-19 Pandemic.

Developing a shock leadership style that guides your organization during a pandemic

By Sponsor Insight

by Sara M. Johnson, FACHE

Leadership theories have been around for many years and are often based on societal norms and the evolution of how people prefer to work. We’ve had the Great Man Theory, Trait Theory, Contemporary Theories, Contingency Theories, and more.

The most recent theory being studied is Shock Leadership Theory. This latest theory is based on the leadership behaviors that are necessary to lead during the pandemic and other volatile, uncertain, chaotic, ambiguous situations — known as VUCA situations — we may face as leaders.

In 2007, Warren Bennis said he thought that two of the primary threats to world stability were leadership in the context of increased globalization and pandemics. As it turns out, he was correct. When he made that statement 13 years ago, he had no way of knowing that these two would intersect the way they have in 2020 nor that the Shock Leadership Theory would emerge.

While leadership theories continue to emerge, they tend to focus on the behaviors that leaders should exhibit. Our own leadership development pursuits lead us to programs that help us discover ways in which we can behave differently as leaders — how to be more empathetic, how to be more authentic, and how to lead with courage.

But what is it that drives our behaviors? Those behaviors are driven by who we are at our core — our values, our purpose, our heart. So, here is a question for you: Have you recently assessed your leadership core?

I expect many would answer that question with a yes. The pandemic, for all its challenges, has caused many leaders to become more thoughtful about what really matters in life. Leaders are reflecting on who they are, not just what they do.

Our values and who we are at our core drive our behavior and guide us to behave ethically, empathetically, and authentically. When VUCA situations arise, it is our values that are challenged and cause us to ask ourselves, “How should I lead in this situation?” Without clearly knowing our values and the direction those can provide, we can find ourselves adrift trying to navigate the waters of chaotic or uncertain organizational realities.

Our leadership experts at IU Executive Education have created the Holistic Leadership Series that is designed to be an individually transformative process. The series will feature one two-hour webinar on the fourth Wednesday of each month, beginning March 24 and ending Oct. 27. Beginning with the topic of “heart and spirit,” this global series examines a person’s core values, how those have developed over time, and how those values can serve them as they lead. Other topics will include embracive thinking, relational dynamics, and operational leadership.

We know transformative leaders are necessary in today’s unpredictable environment. To respond to this critical need, we have worked to ensure our global series will allow participants to interact with leaders from around the world and still be affordable for executives of all levels. The cost for this eight-part series is just $600. To find out more about the Holistic Leadership Series and to pre-register, visit the IU Executive Education website.

For more information about IU Executive Education, call 317-274-3418 or contact Sara Johnson directly via email.


To find out more about the Holistic Leadership Series and to pre-register, visit the IU Executive Education website.
IU Executive Education Holistic Leadership Series
2-hour webinar
4th Wednesday of each month, March 24-Oct. 27

How are Nonprofits Evolving in the Midst of a Pandemic?

By Feature

Four local nonprofits share their strategies for staying on mission — in spite of unprecedented challenges

by Shari Finnell, editor, Not-for-Profit News

With Indiana approaching its ninth month of a deadly pandemic and another surge in cases, local nonprofit organizations are continuing to explore what it means to adapt. While many have implemented major changes, including virtual programming, facility modifications and alternative staffing, some are poised to evolve even further to accommodate a greater post-pandemic demand for services — both virtual and in-house.

As three local nonprofit leaders recently shared, nonprofits may need to continue to evolve for the foreseeable future as COVID-19 permanently reshapes how organizations operate.

Medical clinic adapts as more people lose jobs, insurance

Heart and Soul Free Clinic, a nonprofit that provides healthcare to the underserved, never considered shutting its doors as a viable option when COVID-19 reached Indiana in March 2020. The team was concerned that the population they served would be left without alternatives than emergency care. 

“Our biggest concern was the need to stay open,” recalled Lisa Kreag, executive director of the clinic, which is based in Westfield, Ind.. “A lot of the people we see are marginalized, low-income individuals. If our patients aren’t able to get to the doctor here, they don’t have other outlets. And we didn’t think ER was the greatest option because of the potential of exposure. We didn’t understand much about the virus at that time.”

The pandemic’s ultimate impact has yet to be seen, according to Kreag. With more and more people losing their jobs and, as a consequence, their health insurance, the clinic is now serving an increasing number of people. “We;re getting a lot of new patients and our costs are definitely increasing,” said Kreag, noting that the costs for lab work and prescriptions, which are covered by the clinic, are steadily increasing.

Another challenge was ensuring that the clinic had adequate numbers of volunteers to support its mission. Before the pandemic, a significant number of the clinic’s volunteers were retirees — an age group that already had been identified at high risk for developing severe COVID-19 complications. 

However, replenishing the clinic’s volunteer pool did not turn out to be as difficult as anticipated, Kreag said. With many employees and college students facing job furloughs, reduced work hours and suspension of classes, many signed up to help volunteer. The clinic also welcomed new volunteers who signed up after reading about opportunities in the Wellbeing Coalition of Westfield.  

To ensure that it delivered medical services in a safe environment, the clinic temporarily eliminated walk-in services. “We wanted to control who was coming in and who was coming out,” Kreag said. “We don’t want people to walk right into the office.” And, as with most offices, Heart and Soul follows Centers for Disease Control guidelines by taking the temperatures of anyone entering the office and asking them to answer a list of questions to determine if they have COVID-19 symptoms.

While current needs are being met, Kreag also anticipates continued adjustments for the clinic as an increasing number of people experience job losses. Currently, Kreag said, the clinic has been fortunate because those increased costs have been covered by grants.

To accommodate future demands, plans to expand by adding hours, Kreag said. Currently, the clinic has limited hours on Mondays, Wednesdays and Fridays. “We’re flexible and small enough to quickly make changes by expanding hours — not facility space,” she said. 

Nonprofit unexpectedly expands to a statewide model 

Since 1987, the Indiana Youth Group (IYG), has been focused on meeting the needs of LGBTQ youth — many of whom had been kicked out of their homes, struggled with depression and suicidal thoughts, and experienced hunger and homelessness.

And IYG’s headquarters, just south of 38th and Meridian streets in Indianapolis, had been a haven for LGBTQ youth who needed access to a hot meal, laundry facilities, computers and other support services. On any given night, up to 75 youth between the ages of 12 and 20 would visit the four-story building, which includes a commercial kitchen, art space, classrooms, computer rooms, a music room, management offices and hangout spaces, said Chris Paulsen, CEO of IYG.

That all changed in March 2020 as the pandemic upended life for Hoosiers. IYG quickly adapted, implementing a plan to ensure the safety of its volunteers and employees while ensuring that it was delivering on its mission to serve homeless or low-income LGBTQ youth — who were disproportionately impacted by the pandemic, Paulsen recalled.

On March 9, the IYG team decided to limit the number of volunteers allowed in the building, and restricted hours. “A lot of our volunteers are older. We just handled it with staff coming in three days a week,” Paulsen said. “By March 12, we went down to basic needs and stopped all in-person services.”

Instead of serving hot meals internally, the team started passing out hot pre-packaged food so that the youth they served could pick up meals. Youth also were allowed to use laundry facilities.

By March 27, the team had further pivoted, offering 19 different programs 36 times a month virtually. Because of the virtual nature of their offerings, IYG started attracting more youth from throughout the state. “We have picked up 127 new youth since the pandemic started,” Paulsen said.

IYG also noticed a troubling trend of homelessness and food insecurity increasing among LGBTQ youth. “The food insecurity has definitely grown since the beginning of the pandemic,” Paulsen said. “A lot of our youth have lost employment because they worked in restaurants or other public-facing jobs.”

Paulsen said homeless shelters generally are not safe for LGBTQ youth. “They avoid the shelters. Some of them couch surf, some trade sex for shelter and some are on the streets,” she said.

In spite of those increasing demands, the IYG building has remained nearly empty for more than six months. “No one has been hanging out in it,” Pauslen said. “It’s frustrating that we haven’t been able to use it.”

However, Paulsen and the IYG team are already making plans to further expand as a result of the pandemic — both virtually and in-house once pandemic restrictions are lifted. With an increasing number of LGBTQ youth engaging with IYG from across the state, the organization is prepared to continue its focus on delivering virtual services.

IYG has invested in new zoom rooms, laptops so that the team can integrate IYG’s in-person services with those engaging virtually. “We want all youth to have the same experience,” Paulsen said. “We applied for a grant to support the expenses. If it doesn’t come through, we’ll raise the money. We have 127 more youth we can’t walk away from.”

Nonprofit seeks ways to highlight its mission in pandemic times

As a nonprofit that focuses on helping women grow professionally, Passing the Torch for Women has expanded to a national model that relies on an extensive network of women mentoring other women.

From a logistical standpoint, pandemic restrictions did little to impact that model since most connections could continue virtually — with volunteers providing mentoring, said Deb Hallberg, CEO of Pass the Torch for Women Foundation. 

Although their staff members decided not to renew their office leases at Industrious, a co-working office complex on Massachusetts Avenue in downtown Indianapolis, they quickly shifted to meeting virtually from their homes. “We gave up our office spaces to streamline our budget, Hallberg said. “I think we are as effective as can be. We present an awesome program that was already virtual with many of our students, who are all over the United States. We’re taking it up a notch higher to create all-virtual programs so that everyone is available to participate.”

In the wake of the pandemic, Passing the Torch for Women created a needs-based fund to help students pay for groceries, utilities, rent and other bills. Many of its students have been furloughed or displaced from jobs, or have had challenges with maintaining their focus on their studies and work because of lack of childcare. “Women tend to have to do it all,” Hallberg said. “Now, as a result of COVID, we’ve lost even more ground.”

The main challenges presented by major events in 2020 — COVID-19 and social injustice protests — were primarily around messaging as a nonprofit, Hallberg said. 

Many nonprofits that did not neatly fall into specific categories directly related to issues such as hunger relief or anti-racism could find it difficult to attract funding in the current climate, Hallberg said. “We were reluctant to make a huge push to ask donors to give more because we knew everyone was going through the experience of downsizing and facing a lot of challenges,” she said. “We felt that it wasn’t appropriate so we streamlined our budget for as long as we could.”

While Passing the Torch for Women helps many minority women, the mission is not directly tied to social justice issues, which further complicates messaging, Hallberg said. “We help marginalized, non-traditional adult female students by helping them earn a wage above the poverty line,” she said. “We provide mentoring, networking and professional development. We are giving women hope, 30 percent of whom are single moms, 80 percent are on government assistance and about 80 percent are black and brown.

“We have our hand out to say, ‘If you will take my hand, I will share my wisdom and knowledge with you and help you cross that next finish line, and the next, and the next … whatever you set out in front of you as your goal,” Hallberg said. 

In spite of that focus, Hallberg said, Passing the Torch for Women’s mission is not directly tied to a demographic. “The focus (from many funding organizations) has been on helping those with a specific mission focused on minorities. It has prohibited us from getting some funding. We need to do a better job of telling our story.”

Hallberg remains hopeful that Passing the Torch for Women will continue its mission. “I know six months from now, and beyond, we’re still going to be here. We’re going to be OK,” she said.