fundraising industry, local, nonprofit profile, regional

Some GiveSTL Day 2019 Statistics

GiveSTL Day is a one-day campaign for St. Louis-area nonprofit organizations. The appeals are generally made through electronic solicitation and social media, but there are no real rules, so organizations can run their campaigns how they wish.

Some of my favorite organizations participate: Spirit of Discovery Park, the Humane Society of Missouri, even the Sierra Club. This is a way to bring the whole community, both organizations and donors, together in a spirit of cooperation and healthy competition.

It’s usually scheduled in the first week of May. I first heard about it in 2018, and this year, 2019, I paid a lot closer attention. I’ve been looking at some 2019 results, and I’ll share a few highlights with some take-aways for those planning to participate next year.

1. Aggregate Results Don’t Really Help Much For Individual Organization Understanding

There were 887 organizations signed up. Of those, 842 received donations, with total donations (including prizes) over $3,000,000. That’s a lot of money, but it’s also not very helpful to individual organizations trying to learn how to make GiveSTL Day a success for them.

For the rest of these analyses, I’m using the GiveSTL Day data that shows results by individual organization, which does not include prizes so the total is only $2.89 million. This is an average of $3,434 per organization. Not bad, but that total is pretty skewed by a few large “winners” and many small “not-so-winners”.

Over 50% of the groups participating in 2019 had under $1,000 of donations. 504 of the 887 received $999 or less. That’s almost not worth it, if you consider the time taken by a staff member to create a campaign, design some artwork, solicit a match, design and produce artwork (or take photographs), plan, write, and publish social media posts and e-mails, set up autoresponder thank-yous, and so on. What’s the return there? I can imagine it might be pretty difficult to justify the same activity for such a low return next year.

However, if you did absolutely nothing, and still got $1,000, it might make sense to participate again. Because, hey, free money.

The point is, it’s hard to look just at aggregates and figure out what’s going on. You need to break results down by organization size and sector to have a good feel for what you could get out of GiveSTL Day. Those will tell you more about how your peers fared, and with some analysis could show you how you did relative to them.

But it probably won’t give you much certainty on what you would get if you participate again next year. Which, to be frank, is what we’re all looking for, right? We all want that secret sauce that turns our GiveSTL Day campaigns into the money trees we dream of.

It’s not that easy.

2. Size Is No Guarantee of Success or Lack Thereof

Organizations are grouped according to size of their budget: Micro (<$250,000), Small (up to $1,000,000), Medium (up to $2,000,000), and Large (everything above $2,000,000).

The fact is, there are small groups that have plenty of success and large groups that struggle. The Small segment this year included 379 organizations. 52 of those received over $3,000 on GiveSTL Day. And 12 of those were over $10,000. Evidently, small-budget organizations can still find the money to create major results in one-day campaigns like this. And remember, $10,000 on a $250,000 budget is a much bigger bump than the same amount on a $1,000,000 budget.

One factor that certainly helps: 10 of those 12 had a match available. Having a match is like free money, in multiple ways. It provides an incentive to give (because that money will be doubled), and it’s a large amount that comes with little effort.

I highly encourage all groups next year to start with a match, as a good way to create additional motivation for giving. (More on that later.)

In the same vein as small is not bad, let me say that being bigger is no guarantee of success, either. Yes, the biggest numbers did come from the largest groups. ThriVe ($181k), Stray Rescue of St. Louis ($136k), Foster and Adoptive Care Coalition ($110k), and St. Louis Priory School ($106k) had big days. But for the rest of the 205 Large groups, just being big was no better indicator of how their day would turn out. Only 58 of them had donations over $3,000 on the day, just past the 52 of the Small groups.

And of all of the 205 Large organizations, only 109 (53%) received $1,000 or more. That means that if you were a Large organization, and participated in GiveSTL Day in 2019, the chances of you walking away with over $1,000 were pretty much a coin flip.

This is an encouragement and a challenge. An encouragement to those small organizations that your results can be better, with appropriate strategy and an effective campaign. And it is a challenge, to those organizations who think that just relying on their name and their current size will be enough to make GiveSTL Day a success. You’re going to have to work for it.

3. A Match Is Not Just Helpful, It Is ESSENTIAL

I said above that having a Match is like free money. It can inspire higher donations, because of the desire to make that donation work even harder. Take a look at the aggregates:

  • 735 groups WITHOUT a match received $1.27 million ($1,725 each)
    • Average gift of $94
  • 107 groups WITH a match received $1.62 million ($15,175 each)
    • Average gift of $202

Fewer organizations, received significantly more money, with almost twice as much given per donation. Now, that’s not to say that having a match guarantees you more money. But having a match is more than just inspiring higher-dollar contributions.

Yes, a match is good for your donors, because it gives them something to shoot for, an initial goal that they can accomplish with the right initial effort.

Beyond that, though, a match is a signal that your organization is doing the right things. It shows that you’re planning GiveSTL Day as a campaign, not as an event. It shows that you’re being thoughtful about how you solicit matches throughout the year.

And planning early enough to get a match in place means that you’re more likely to complete the rest of the essential campaign steps in time for success as well: a marketing concept identified, a timeline planned, resources aligned to take advantage of specials like prizes, etc.

A word of caution: be careful how big you set your match. You want the matching dollar amount for GiveSTL Day to be something that’s going to challenge donors, but you don’t want it to be so far out that you don’t get there. That’s actually wasting your match money. For example, Five Acres Animal Shelter received over $30,000 on GiveSTL Day. But they also had over $5,300 of match remaining unused. Essentially, they missed out on over $10,000 of donations ($5,300 that could have been given and $5,300 that would have been matched).

If the Shelter had an indication of how much of that match would be used, then maybe they could have dedicated those matching funds to another campaign later in the year. As it turned out, there seems to be a missed opportunity.

All that to say – be strategic in how you structure your match. You want to make your matching funder happy that you’ve been able to satisfy her desire to inspire donations, and asking for too big a match (or putting too much of it towards GiveSTL Day) may counteract that.

Conclusion

GiveSTL Day is a giving campaign designed to bring the St. Louis region together for a common purpose. Like similar one-day digital campaigns across the country, there are many opportunities. My suggestions: start early (like every campaign) and get a match (like every campaign, if you can). And make sure you don’t let your own internal view of your organization’s size (and how that may make success easier or harder) inhibit your disciplined approach to having a great GiveSTL Day.

arts, local, nonprofit profile

Local Nonprofit Profile: Pianos for People

This young man is Royce Martin. Please allow him to create an inspirational soundtrack to the next 4 minutes of your reading life.

Royce began playing piano only a few years before that performance. He wrote that piece. He has won competitions already after only a short time playing. He may very well be a prodigy.

And he got started thanks to a donated instrument from Pianos for People. This fairly new nonprofit supplies pianos to needy individuals in St. Louis. They began in 2012 and have recently passed the mark of delivering 200 pianos. Thus they’ve already made a dent in the needs of the community, but there is much more yet to do.

 

Overview

Pianos for People collects and restores (as necessary) pianos in reasonably good working order. From there, they donate these pianos to needy individuals or families in the area. Pianos for People works on the principle that playing music changes lives – it gives hope, it soothes the soul, it allows for creative outlet, it teaches discipline and focus.

You can read the history of the organization here. I won’t go into that with this profile. I will touch on some positives and negatives, and give some challenges and opportunities.

 

What I Like About Pianos for People

This organization serves a need people likely didn’t know they had. Most people can identify that they’re hungry, cold, or sick. Or that they don’t have adequate transportation, education, or social skills. There are hundreds of organizations around the country to help them meet those needs.

Not many know that they are missing music in their life. But, when that opportunity comes to connect with the harmonies of this world, if there are barriers in the way, many will let those chances slip through their fingers.

Pianos for People works to change that. They give pianos away because it allows people to meet that burning desire inside of them. A desire they may not have been able to identify, but was still holding them back through non-expression nonetheless.

They give away pianos. They give away lessons. But more than that, they give connection to the community. They bring together people who need pianos with pianos that need people. That’s a great line. But it’s theirs, I can’t take credit for it.

 

Challenges Ahead

Currently Pianos for People is still growing. They’ve delivered the 200th piano this year, but there is more need. As evidenced by this statement on their website:  “We sincerely apologize, but applications for a piano are presently closed as we have reached our capacity for 2018. We will begin accepting applications in September 2018 for 2019 delivery.”

So there are clearly people who want a piano, but capacity within the organization is lacking to make those dreams come true. This is likely due to a combination of factors: not enough pianos donated, not enough restoration time available, not enough administrative capacity, etc. Each of these can be handled in time, and with money, which suggests that there is a lot of growing yet to come.

Another challenge is the relative newness and obscurity of the organization. With traditional charities like the United Way or American Cancer Society, there’s a big, recognizable name associated. This makes fundraising, volunteer recruitment, and community interaction much easier. Pianos for People will need to expand their reach (in a responsible way) in order to make a bigger name for themselves and reach more people

This is evident by looking at a few nonprofit review websites. Charity Navigator and Guidestar, which provide ratings of the administrative efficiency and fundraising efficiency of nonprofits, have virtually empty profiles. And Great Nonprofits, where users or clients of an organization can make a review, has nothing. Again, these are likely due to the fact that Pianos for People is a fairly small, fairly new organization. In order to create greater credibility, leading to greater impact, leading to greater change in the community, they’ll have to be intentional about creating a positive public profile. The good thing is that as they start basically from scratch they can craft that image how they wish.

 

Opportunities

Obviously there is an ongoing need within the St. Louis community for the instruments and lessons provided. In addition, I think that greater expansion throughout the region would be a big boon to the validity of the organization. And it would greatly increase the potential donor pool, not just for cash and grants but for pianos as well.

Second, I would not be surprised to see Pianos for People expand to more instruments, not just the piano. A piano is large, intricate, delicate, and, frankly, a lot to maintain. I suspect that in a few years there will also be a market for accepting, restoring, and giving away other instruments, such as trumpets, violins, flutes, drums, etc. These may be more accessible to people who don’t have the floor space for piano. Or for those who do want to experience the transformation that comes through playing music but don’t have an inclination to play piano. Or even an opportunity for those who are just out of a piano delivery area yet may be able to accept an alternative instrument.

 

Conclusion

I think Pianos for People has a good thing going. They’re small, but they have incredible opportunity to meet unspoken, unmet needs in this community and around the country. Better still, around the world. I think they’re on the edge of something great. Stay tuned, it’s about to get very interesting on Cherokee Street.

 

 

national, nonprofit profile, service

Nonprofit Profile – USO, a national service organization

Overview

In this post I’m going to profile the United Service Organizations (USO). USO is a nationwide service organization dedicated to helping military service members. You’ve probably heard about the USO in stories of Bob Hope on tour, providing entertainment and encouragement to thousands of soldiers and sailors around the world.

USO_Logo

 

The USO provides for service members, and their families, throughout the life cycle of engagement. From pre-enlistment support, to deployed entertainment, to post-discharge help with finances and transitions to civilian life, the USO has a mission to be there for those who are there for us. In their own words:

The USO strengthens America’s military service members by keeping them connected to family, home and country, throughout their service to the nation.

 

Positives (i.e. Keep On Doing These Things)

And they do that. They’ve been doing that for over 75 years, beginning even before the United States had entered WWII in 1941. Probably the most recognizable of the USO’s operations is the entertainment tours, of celebrities ranging from Bob Hope to Robin Williams to Toby Keith; Betty Grable to Marilyn Monroe to Jessica Simpson and Ke$ha.

But the USO does much more than simply entertain troops on the front lines. They provide connections for service members back to their families through care packages and phone calls home. What’s more, they provide comfort services in over 200 locations around the world. These provide little bits of home: fast internet, movie nights, a chance to relax and unwind, even a workout room.

Many of these are comforts that the rest of us take for granted. They keep service members feeling valued, appreciated, and ready for action. Plus, centers near bases provide an additional community for families whose service member is deployed. These can be critical in maintaining morale, readiness, and forging connections that last a lifetime.

Most civilians probably assume that our military is funding such services. However, the USO is an organization completely separate from the military. It steps in to provide where the traditional budget allocations have holes. It allows for a better-trained, more capable military and more resilient home family waiting for their return.

 

Negatives / Challenges / Opportunities

Here I’d like to highlight some areas that may be considered negative. However, they can also be viewed as opportunity for growth, as these are touch points  the USO could improve upon to enhance their profile and effectiveness.

Public Perception:

I reviewed the GuideStar, GreatNonProfits, and Charity Navigator profiles of the USO. There are some challenges. GuideStar allows individual users (donors) to make reviews. Right now there are 41 reviews, averaging 2.5 stars, as follows:

5-star: 7

4-star: 5

3-star: 3

2-star: 12

1-star: 14

There is a large split here. The 5-star and 1-star are the most informative. Ratings of 5 stars come from reviewers who say, in a sense, The USO is doing great work! Keep it up! While the 1 star ratings often come with statements like I gave them $10 once, and they sent me ten more mailings over the next year. What a waste of my money. Or, I donated, and three months later I was spammed with a dozen letters from other groups. I’m done giving to these people who sell my name to the highest bidder.

In these cases the good things that the USO is doing for service members and their families are overwhelmed by a perceived inefficient use of resources or lack of respect for their donors’ privacy.

And while this is not a statistically valid survey of those who donate (or don’t) to the USO, it is out there in the public domain. Impressions like these affect perception when potential donors may be researching an organization to determine whether or not to give. If the USO can make a better argument for how they use their donations, then the balance of these ratings will likely increase as more 4- and 5-star reviews show up. This is tied to the next element, fundraising efficiency.

Fundraising Efficiency:

Currently the USO only earns 3 of 4 stars on Charity Navigator. This is because their Financial Rating is 2/4, due to high fundraising expenses. 18% of every dollar donated is used to bring in more money. See above, where many reviews point out excessive mailings. While this isn’t bad in the grand scheme of things (in general, nonprofits are doing well if they can keep fundraising and administrative expenses under 35 cents on the dollar), it could be less.

Many of the more highly-rated nonprofits have fundraising ratios under 10%. This might be a challenge to the current business model. The USO would have to either keep fundraising processes the same and bring in almost twice as much money, or find a way to cut about half of their expenses out and still collect the same total donations. It won’t be easy; but at least they’re not on the Charity Navigator list of “10 Charities Overpaying their For-profit Fundraisers”, where fundraising expenses are over 50%. Oof.

It will be a challenge to the current business model. I don’t know what the perfect mix will be, but I’m sure it will require some combination of lower cost (fewer mailings, fewer “freebies”) and higher efficiency (better integration with e-mail, higher quality contacts, getting more out of the same events, etc.).

Initial Website Impression:

When I opened up my web browser and typed in www.uso.org, I got this:

img_0873-1

The “Donate Now” popup box is big and intrusive right away. I didn’t even get to see a “Welcome, We’re Glad You’re Here” page first.

The problem I have is that this is quite presumptive. It’s like the USO is saying, in effect, “Hey, we know you came to this website just to make a donation, even if you think you came to find out more about us. So, go ahead and do that, first, and then we can get on to your agenda.”

The USO seems to be acting as if it is owed my donation, and therefore all that’s left is for me to play along and give. I don’t wish to be crass, but it’s almost as if your blind date rings your doorbell, and you invite them to your bedroom before you’ve even gone out for the evening. Might it not be better to go slower, introduce yourself, let me browse around a few pages and get to know you a little better, then see if there is a connection, before we get down to business?

[To be fair, I’m not the first to think of persuasion, whether in sales or soliciting donations, as a romantic encounter. AWAI describes one sales strategy called the “Architecture of Persuasion” that is similar in explaining how to romance a potential client (or, in this case, donor).]

Now, I don’t know whether this is a winning methodology. If I was working with the USO, I would certainly advise them to test it. A simple question could be answered with about a month’s worth of A/B(/C) parallels on their landing pages: Does having this pop up immediately on navigating to the website produce more donations, or donations with greater average size, than having the pop-up show up 10 minutes later (or not at all)? If so, then keep it and I’ll stand corrected. My suspicion is that it is not, however, and that a change would benefit the organization through visitors feeling more respected, trusted, and valued before being asked to donate.

What a short test cannot answer, though, is whether those donors will have greater longevity, provide higher quality word-of-mouth referrals, or higher engagement with the organization. Only time will tell that, but my suspicion is, again, that the USO could improve public perceptions in many areas, web included, that would lead to better results in the future.

And the good thing about fixing this element is that it improves both of the first two points as well. Improving donor relationship, by treating them as more than just a wallet, will certainly improve public testimony. And, by having a more efficient fundraising process (through greater donations for the same effort), the financial rating may increase enough to advance the USO into the ranks of Charity Navigator’s 4-Star club.

 

Conclusion

The USO is a great organization with a high-quality history. It serves a noble purpose and meets a great unmet need. I am fully confident that the USO will continue to meet those needs with character and passion, and that, should it address some negatives in the public eye, it will be able to ensure that the future is even better than the past.