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July 2006

Carnival of Nonprofit Consultants: working with consultants

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This week, the Carnival of Nonprofit Consultants looks at working with consultants. Folks on both sides of the table talk about ways to make this complicated and important relationship work well.

You've lost control of your brand!

Quick. Google your organization. Is everything that comes up in your control? Of course not.

Anyone can say anything about you. And what they say is accessible to everyone.

You are not in control of your brand. It's now a mélange of your carefully crafted messages and any random thing anyone else chooses to say. Not that you ever had total control of your brand -- brand is what's in other people's minds about you, not what you say about yourself -- but now, you don't necessarily even have a louder voice than anyone else about who you are.

Nancy Schwartz tackles this tough issue in Everybody's Talking About You -- Why Your Nonprofit Needs to Listen, and Listen Hard:


Your audiences are now participating in shaping the way your nonprofit is perceived via joining in blog and message board conversations. . . . Their content may be viewed as being just as valid as yours is, and is just as easily found via online search engines and links.

This tells you two things:


  1. Branding as a unilateral act is dead. You can no longer publish a book of brand standards that has any meaningful power. If you want to have a consistent brand, you have to live it and be it in every way. You have to paint the brand in the minds of a thousand strangers. Hard work.
  2. You'd better pay attention to the conversation about you. There isn't a whole lot you can do about it, but there's nothing you can do if you don't know. Get to know the blogs that cover your area. Follow them closely. (Join in by making comments.) Check out your name on Google and Technorati regularly. (See also Are you watching the wikis?)


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Cast out your fear


“I must not fear. Fear is the mind-killer. Fear is the little-death that brings total obliteration."
(from Dune, by Frank Herbert

Why are nonprofits so often ruled by fear? So often, innovation (and even common-sense) is shot down by wild worst-case-scenario fears. Is it a plot by Evil Lawyers?

The Squawk Box blog has a great example of nonprofit fear in a post titled Email Signatures. Your email signature could be used to highlight news, opportunities, public-relations initiatives -- all kinds of cool things. Yet ...


Most email signatures I see from non-profits are legal disclaimers telling me to destroy the email and forget what I've read if I'm not the intended recipient.

Seriously, do you really need to do that? Of course not. Only if fear rules your thinking and you'd rather give up the opportunity to use your signature real-estate to further your mission in exchange for illusory protection from the outlandishly tiny possibility of information going astray.

This is a small example. Multiply it to hundreds of decisions made every year -- small and large -- where fear distorts the thinking and the outcome. You might as well be wearing a millstone around your neck.

Cast out fear. Your cause -- and your donors -- deserve your best, not your worst.


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How to get people to talk about your website

Most nonprofit websites sit there like brochures. Little read, like interacted with, costing too much. What you really need is a website that people talk about -- send their friends to, come back to, explore. Here are a few ways to get that:


  • Begin with donor needs. This is the hard part, and the part most nonprofits skip. Your website is about them, not you. Get a clear idea what people want out of your site. (It's probably two things: To discover whether or not you're a reputable organization and to see if you help them further their personal mission.)
  • Make word-of-mouth part of your mission. 
 Build it in -- not just to what you put on your website, but shape your programs so they're remarkable -- powerfully effective, easy to understand, and a great investment for donors. Complex things are hard to talk about.
  • Invite donors into an experience.
 Put them on the front lines of what your organization does. A well-written, lively blog from someone on staff could do this. A well-placed webcam. Anything that gets them closer to reality.
  • Give donors more than they ask for.
 Find ways to increase the value of what you offer. More information. Special matching funds. Coupons from corporate partners.

Thanks to Jonathan Petersen, Director of Internet Marketing at Zondervan whose How-To: Creating a Web Site that Encourages WOM appeared on the Wombat Blog.


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The consultant you should never hire

Consultants are good for nonprofits. (You can trust me for unbiased opinion on consultants; I am one.)

A good consultant brings you breadth and depth of experience that you'd ever be able to muster within the organization. But more important, a consultant isn't wearing your organizational blinders. They can see things you can't.

But not all consultants are good. And there's one type you should never hire: The consultant who already knows the answers before you ask the questions.

Maybe you've met this guy. He starts every conversation with his sure-fire winning tactic. Sometimes it's a data trick that will squeeze new revenue from your donor file. Sometimes it's a creative execution that is guaranteed to work. Or some exciting media opportunity.

Any of these things might be just the ticket for your organization. But until a consultant knows your situation well, nobody knows.

Any time a consultant knows the answer before asking the question, there are three likely reasons:


  1. He knows only one thing. To the man with a hammer, every problem is a nail. He's going to be hammering your dirty windows and your weedy garden.
  2. It worked somewhere else. It may or may not work for you. Not all organizations are the same. Anyone who doesn't admit that is a charlatan.
  3. There's a hidden agenda. He may need volume for his tactic to pan out. Maybe he owns a certain kind of printing press that he needs to keep running. In other words, he needs you to use his tactic for his sake, not yours.

So next time a consultant comes to you with ready-made answers, hang up the phone. Delete the email. Politely look the other way. Then look for a consultant that's willing to learn about you and be your partner on the journey.


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Poor service? You're busted

It used to be when someone screwed up in customer service, they made that customer mad. Perhaps that customer would tell a few friends, but not much else would happen. You pretty much got away with it. Haven't things changed.

Nowadays, an angry customer can tell the world. If his story is interesting, he tells it well, and it rings true -- one customer's bad experience can become what everyone knows.

You've heard about the guy who tried to cancel his AOL account and recorded the call. You've also heard about the guy whose techie from Comcast fell asleep while on hold with his own office. Read about both in the New York Times: AOL Said, 'If You Leave Me I'll Do Something Crazy'.

Could a blogger who's one of your donors do this to you? Are you absolutely sure that your front-line donor service people are giving flawlessly wonderful service? You'd better make sure.


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This week's Carnival of Nonprofit Consultants: nonprofit marketing

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Seven great new posts up today at the Carnival of Nonprofit Consultants. It's about nonprofit marketing this week. Worth a visit.

The Donor Bill of Rights: a good start

Have you seen the Donor Bill of Rights? There is one, and it's good:


Philanthropy is based on voluntary action for the common good. It is a tradition of giving and sharing that is primary to the quality of life. To assure that philanthropy merits the respect and trust of the general public, and that donors and prospective donors can have full confidence in the not-for-profit organizations and causes they are asked to support, we declare that all donors have these rights:

  1. To be informed of the organization's mission, of the way the organization intends to use donated resources, and of its capacity to use donations effectively for their intended purposes.
  2. To be informed of the identity of those serving on the organization's governing board, and to expect the board to exercise prudent judgment in its stewardship responsibilities.
  3. To have access to the organization's most recent financial statements.
  4. To be assured their gifts will be used for the purposes for which they were given.
  5. To receive appropriate acknowledgement and recognition.
  6. To be assured that information about their donations is handled with respect and with confidentiality to the extent provided by law.
  7. To expect that all relationships with individuals representing organizations of interest to the donor will be professional in nature.
  8. To be informed whether those seeking donations are volunteers, employees of the organization or hired solicitors.
  9. To have the opportunity for their names to be deleted from mailing lists that an organization may intend to share.
  10. To feel free to ask questions when making a donation and to receive prompt, truthful and forthright answers.


Download a PDF here.

Ethical nonprofits, even if they don't know about this Bill of Rights, generally abide by these principles. But I'd wager most donors don't know they have these "rights." It wouldn't hurt to let them know.

But while you're at it, why not go further in empowering donors. Create your own version. Give them more power and respect -- and let them know.

See the Donor Power pledge (PDF) for some ideas for your own expanded Donor Bill of Rights.


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How to compete with the big guys

Chances are, there's at least one organization competing with you for fundraising dollars that has huge advantages: more resources, stronger brand recognition -- whatever.

Don't let it get you down.

First, go and read How To Beat the Wal-Marts over on Duct Tape Marketing, which offers these hints:


  • Offer something they don't.
  • Take advantage of their weaknesses.
  • Provide better information and community.

Now that you've done that, create a plan that takes advantage of your smaller, nimbler size. You can run rings around a bureaucratic behemoth. Your donors will love you for it.


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Your donors are investors

Do you think of your donors as investors? That's how many of them -- especially the younger and more affluent ones. Thinking of donors and investors -- and treating them that way -- is a great way to improve your relationship with donors and boost fundraising success.

That's the topic of an excellent article by Kay Sprinkel Grace in a newsletter from The Resource Alliance title Treating Your Donors as Investors: 
Why it is a Good Idea:


The investment model . . . is a partnership. The funder and the organization are teaming to fulfill a need in the community. The focus is on the community, and on the donor -- our organizations are the delivery system for the donor-investor's dreams about the potential impact of a social investment. Donor-investors want to be involved in the successes and be informed of challenges or failures. It is the investor mindset that has led to the demand for transparency and accountability in the nonprofit sector. . . .This changes the premise for fundraising: social investors respond because you meet needs, not because you have needs.

Many fundraisers see donors as faceless ATMs -- you figure out the right combination of buttons to push, and money comes out. That's not how the New Donor sees it. She's active in the world, and chooses to give to you because you align with her activism. Here are a few hints from the article on ways to treat donors as investors:


  • Stewardship is important for all donor-investors, no matter the size of their investment. Use technology (emails, web sites) to get messages out with greater frequency.
  • Connect donor-investors with the mission at every opportunity.
  • Let your donor-investors know that you value their opinions as well as their money.
  • Send personal thank you notes.

This way of approaching donors will be the cost of doing business in the coming years as Boomers take over the ranks of donors. If you don't think and work this way, you'll find yourself at the end of a very long list of struggle nonprofits. It's also a great way to work today: If you do it, you'll stand out from other fundraisers. And that's a great place to be.


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How soon to ask a donor again? Now!

When a donor gives, do you suppress them for a while from getting asked for awhile? After all, someone who's just given is momentarily tapped out and will be annoyed if you ask them again too soon. Right?

Wrong.

Peter Schoewe answers the question Should recent donors be mailed or suppressed? in Mal Warwick's E-Newsletter (subscribe here).


Contrary to common sense, the most recent donors almost always respond at the highest rate. In fact, donors who gave their last gift in the past three months can respond at double or triple the rate of donors who haven't given in over six months. . . .

And this isn't only true of those donors who support your cause with gifts of $10 or $15. A quick way to knock a large portion of the net revenue out of your direct mail program is to mail your high-value donors less frequently than your low-value donors.

Conventional wisdom says giving is a limited resource, like a slow-growing forest -- if you ask too quickly, you'll "over-harvest" and end up with nothing. Sounds good, but it's simply not true.

We've looked at the numbers here at Merkle|Domain, and here's what subsequent giving looks like:

2ndgift

The X-axis is the percentage of donors giving a second gift after their first gift to an organization. The Y-axis is the number of months after the first gift that they gave the second gift. (Third and subsequent gifts aren't factored here.) Note how high the rate of giving is just one month after the first gift. And it doesn't really drop off until after four months.

Chances are if you're suppressing mail to recent donors, you're simply missing the time they're most likely to give again. You're basically waiting until their passion cools before going back to them. Smart, huh?

If your conventional wisdom tells you that giving hurts and asking is annoying, you need to replace it with the fact:


  • Giving feels good.
  • For most donors, asking is part of a welcome conversation.
  • Donors want to make a difference, and you help them do it.
  • Donors want to be needed.

Make this your new conventional wisdom, and you'll do well.


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This week's Carnival: nonprofit technology

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Today there's a new edition of the Carnival of Nonprofit Consultants. This week's topic: technology.

The word that can destroy your marketing

There's a word with so much destructive power that you should never, never, use it when talking about or evaluating a marketing effort.

I know you'll find it hard to believe a word could have such appalling magic. But it's true. I've seen this word works its evil more times than I care to think about. Here's the baleful word:

I

As in "I like it," "I don't like it," "I would never respond to that," etc.

The minute you use the word I when talking about nonprofit marketing, you leave reality behind and enter a topsy-turvy world where it's dang hard to do good work. Because you are not your donor.


  • You are probably younger.
  • You know too much -- perhaps too much to see the simple clarity of the issue at hand.
  • Like it or not, you have more agendas than the work at hand.
  • You are paying too much attention. You're being paid to read this stuff! Your donor isn't.

All these things can add up to a screwy perception of your work. You will almost certainly get it wrong in a lot of ways. The best way out is to eliminate I from your vocabulary.

It takes a real abnegation of self to do nonprofit marketing right. But the more discipline you can give it -- the more power you can take out of your hands in put in your donors' -- the better you'll do. Always.

Try it.

(If I is the forbidden word, what's the magic word? See here.)


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Now's the time to make things rhyme

I know that rhyming's out of date, but what it does is truly great.

The Product Naming Blog looks at some research on memorable words and phrases in Slogans: Invest in Rhyme -- the Results are Sublime and concludes that product slogans could be more effective if they rhyme.

Like Don’t get mad. Get GLAD and Takes a licking and keeps on ticking.

Apparently, people find rhyming statements more believable than non-rhyming ones. In any case, rhyming statements are easier to remember.

Unfortunately, rhyming is out of style these days. It's just not cool. And it's kind of hard to do. It takes an actual word-obsessed copywriter to pull it off consistently. But it might be worth the effort to use it here and there.

The human mind loves patterns and is attracted to beauty. That's why rhyming is an effective communication tool. As are other sound devices in copy, including:

  • Pleasing rhythm or metrical structure. You need to walk the line between copy that's so iambic it's sing-songy and copy that jangles along with no rhythm at all.
  • Well placed syllabic emphasis. It's great when the strongest emphasis in a sentence is also the most important point. (Which, by the way, should usually fall at the end.)
  • Consonance. Repetition of consonant sounds (but don't overdo it).
  • Assonance. Repetition of vowel sounds (you're less like to overdo this).

Copy doesn't need to be set in lines and follow formal rules to get the benefits of poetry -- in fact, you're way better off not looking like poetry. All these things aid in communication. Even if they're old-fashioned. Give it a try.


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The importance of being great

This, from the newsletter of legendary direct-response copywriter Gary Bencivenga, is billed as the most important marketing advice in history. I'll let you decide:


A gifted product is mightier than a gifted pen.

Read the rest of the article; it's full of good stuff about how to deal with this truth.

What this means in fundraising is this: Great copy, superb design, a flawless segmentation strategy -- that's all wonderful, and they'll help you succeed. But ultimately, what matters most, is the reality of what you do. It needs to be different and better than everyone else.

Is that true about your organization? If not, why not?

What will it take to be able to offer your donors the iPod of charity?

(Thanks to the Church Marketing Sucks Blog for the tip.)


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The secret of how your donors think

Why are our donors older people? It's not entirely about disposable income and having more time. A lot of it has to do with what's happening in the brain. An article in Science News, Older but Mellower: Aging brain shifts gears to emotional advantage, says:


Advancing age heralds a growth in emotional stability accompanied by a neural transition to increased control over negative emotions and greater accessibility of positive emotions. . . .

In contrast, people under age 50 experience negative emotions more easily than they do positive ones.

This gradual reorganization of the brain's emotion system may result from older folk responding to accumulating personal experiences by increasingly looking for meaning in life. . . .

More positive emotions and a search for meaning -- sounds like good conditions for giving.

Keep this in mind when you're working on fundraising, especially if you're under 50. The things that would motivate you and stir you to action may be quite different from what works for someone older. In a nutshell, the older brain is different from the younger in these ways:


  • More emotional.
  • More connected.
  • More likely to see hope in a bad situation.
  • More interested in having a positive impact.

Adjust your fundraising communications to your audience, and you'll see the results.

(Thanks to Dan Pink, who frequently covers this topic, for the tip.)

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Treat donors as shareholders (it's what they are!)

DeepyA coveted "Deepy" (Donor Power Award) for Direct Relief International for empowering donors in a cool way: Inviting donors to headquarters to see how things work behind the scenes. Read about it in the New York Times: Charity Invites Donors to 'Kick the Tires' and Squeeze the Cash Register (it's in the archives; you need a subscription to read the full article).


For the last four years, Direct Relief, which provides donated medicine and medical supplies to communities around the world, has held a "shareholders' meeting" for contributors to demonstrate its accountability and to burnish its relationship with its donors.

One donor ... says he likes the meeting because it is informative and different from the typical interaction he [has] with other charities.

Many nonprofits have discovered the power of giving donors "tours" of their work. Direct Relief is taking this to the next level, not just showing off their work, but focusing on their accountability to donors.

Not every donor wants that level of involvement and information. In fact, most don't. But you unleash two different forces if you institute a program like this: First, those donors who want high involvement and get it will likely boost their giving, stay with you longer, and get involved in other ways -- like volunteering, advocating, recruiting, and more. Second, merely offering it will inspire every donor who's invited -- even those who don't take you up on it.

We here at the Donor Power Fortress of Charity tip our hats to Direct Relief for practicing Donor Power.

(Thanks to Trent Stamp's Take for the tip.)


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When not to be practical

Maybe they told you it's good to be pragmatic and cautious. They were only half right. Risk avoidance can be one of he most risky of strategies. Mike Wagner at the Marketing Profs Daily Fix Blog tackles this issues in 5 Questions that Kill Your Brand. The five questions are:


  • How will we do it?
  • How long will it take?
  • How much will it cost?
  • How do we measure it?
  • How have others done it successfully?

Not bad questions, but if you're trying to do something great, stay away from them. Determine greatness first, shoot for it. Then figure out what the problems and details are. As Wagner put it:


There will be plenty of time to be practical once you know what you really want to do. Don’t kill your brand with premature pragmatism -- give it a fighting chance.

Your mission is too important to let "premature pragmatism" choke it off. And your best ideas will seem just a little bit crazy.

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Handy checklist for fundraising

Sometimes it helps to have a good to-do list. Well here's one from Troy White's ever-helpful Word Wealth blog called Quick and Dirty Marketing Checklist That Will Make You Money. Here are some of Troy's items I think matter most if you're doing fundraising:


  • Are you running a headline in all of your marketing?
  • Is it targeted specifically at your target customers?
  • Is your biggest benefit in the headline (or sub and pre-
heads)?
  • Do you talk about their needs and wants -- and forget your own 
company's accomplishments?
  • Are you specific in your claims? None of the "best 
in the world" type of claims -- no one believes them anyhow.
  • Does your marketing and advertising materials 
explain what it is you want them to do?
  • Does it ask them to take action by phone, mail, 
email, web form, or fax?
  • Is the most common word in all your marketing "You"?
 If not -- get rid of all the "I," "We," "Us," etc. -- they do 
not care about you! All they care about is what you can do 
for them.
  • Do you apply any form of psychology in your 
marketing? Making sure you address the most common 
psychological reasons that people buy (sex, money, greed, 
health, envy etc.)
  • Does your marketing tell a story?

Follow this list, and you'll have better results. For sure.


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Are you watching the wikis?

The massive free encyclopedia Wikipedia is the 800-pound gorilla in the world of wikis -- collaborative, user-built websites (here's Wikipedia's own definition of what a wiki is).

Wikipedia is worth paying attention to not just because it's a useful tool. It's also a place where your organization might be a subject of discussion, and it's a very widely used source on the web. (See Charities Recommend Keeping Tabs on Entries in Online Encyclopedia (subscription required) in The Chronicle of Philanthropy.)

Anyone can create or edit a Wikipedia entry, so there's no telling what it might say about you. A Wikipedia entry on your organization could be:


  • Nonexistent
  • Incomplete
  • Inaccurate
  • Downright hostile

You should know. Because you can do something about it.

Most large national nonprofits have entries in Wikipedia, such as America's Second Harvest, CARE, the Lance Armstrong Foundation, or The Salvation Army. So do some local organizations, like Seattle Art Museum.

Wikipedia's the big wiki. But there are others. And eventually, there will probably be one specifically about giving and nonprofits. (If this already exists, let us know!) As more and more donors use the web to search for and learn about the charities they support, it will be ever more important that you know what's being said about you.

Start today by looking yourself up on Wikipedia.


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Musical vandalism in service of the arts

Not every idea is a good one. The Modesto Symphony Orchestra recently held a "Cellobration" fundraiser. And here's what they did: auctioned off cellos that had been "decorated" by local artists. Here's the story: 57 cellos sold for nonprofits.

Cello2

You can look at all the cellos here.

If you're a musician, you're already cringing, right? You just don't do that to musical instruments. As a musician (and Dad to a young cello player), the thought of artists mucking around with cellos gives me a stomach ache. As I don't doubt it did for most players in the Modesto Symphony.

I assume they used terrible instruments that no musician would want. Even so. How about letting chainsaw carvers "decorate" paintings for an art museum fundraisers?


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The magic word in fundraising

All fundraising is about one thing: You -- that is, the donor. The individual donor you're communicating with at the moment. Everything else -- your amazing methodology and competence, your philosophy, your brand, you budget needs, or anything else. It's about the donor.

Mal Warwick's excellent email newsletter recently took at look at the difference between you-focused copy and the kind of copy you typically see in advertising these days. This is about "you" notes:


There is a huge difference between the writing styles of advertising agency copywriters and direct response copywriters. 
"Image" agency writers are long on style and attitude. Direct response copywriters rely on benefits, facts, and powerful emotions.

Every writer has the choice to speak to the reader cleverly or directly, stylishly or persuasively. I choose to do the latter.

If only "style and attitude" were limited to image advertisers. You'll find it everywhere in direct-response fundraising too.

Copywriters everywhere love to show off, want to impress others (other writers, actually) with their command and cleverness. I understand. But if you want to actually communicate with people, you need to build everything around "you."

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One year of blogging? Already?

This blog launched one year ago today with this post: New Fundraising for the New Donor. Since then, it's been 235 posts, a surprising amount of fun, a lot of learning, and a handful of cool new acquaintances. Here are a few more things that have happened in the last year:

Most-read post
The nonprofit version of Google, a snarky, pointless little post about the nonprofit tendency toward backwardness.

Most misdirected by Google
The use of jet-packs among today's donors. I was talking about the slow adaptation of new technology by donors. Many, many people arrived at the post having searched the term "jet packs." I hope they weren't too disappointed. Runner-up: The use of jet-packs among today's donors. I was talking about how signatures in direct mail should be legible. Searchers were asking, "What does my signature say about me?"

Properly directed by Google
Listen to their actions, not their words. It's a review of Donor Centered Fundraising by Penelope Burke, which gets Googled surprisingly often.

Most laughed-at organization
Seattle Opera. C'mon, It's only twice in a whole year: here and here.

Best prank
April Fools Day post. I announced that I was changing the blog over to a conservative political commentary blog and told a Fox-esque (that is, false) story about a liberal congressman. It wasn't that funny -- until I got several comments from people who took it seriously and begged me not to change.

First (and so far only) event blogged
The DMA 2006 Annual Washington Nonprofit Conference last February. I learned a lot of cool things and did these posts:

Favorite rant topics


More rants to come on these topics, for sure.

Here's to another year of Donor Power! Thanks for being part of the conversation.

Carnival of Nonprofit Consultants: Fundraising

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This week the Carnival topic is fundraising: Here's what we found:

Leila Johnson at the Data-Scribe Blog asks an important and very scary question: Fundraising on the Internet - Is It Legal?

Over in the U.K., The Charity Blogger looks at categorizing nonprofits as a way to help donors find the right places for their giving in Fewer choices - better results?

Amy Kincaid a the Fundraising Breakthroughs Blog makes the very important point that an appeal for money needs to appeal for money: Fix Your Annual Appeal.

Alan Axelrod at the Raising More Money Weblog turns to ancient Chinese Wisdom to argue for cultivating long-term relationships with donors in People First.

Marc A. Pitman of The Extreme Fundraising Ezine talks about the importance of stories in Who's Telling Your Story?

Next week's Carnival will be hosted by N-TEN Connect and will be about technology for nonprofits. Submit your blog post by Friday, July 7 at 8:00 pm ET to npc.carnival AT yahoo.com.


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What is this blog all about?

If you're serious about raising money from donors, you need to get serious about donors. More than ever before, donors are insisting that you share power with them, not treating them like passive ATMs. This blog is about the ways you can do that -- and the rewards that await you and your donors when you do.

About the Blogger

DonorPower Blog is penned by Merkle's Power Blogging Team, led by Greg Fox, our senior vice president of strategy. Working with Greg is a police line-up of guest "artists", fundraising pros all, who like to pose as blogatorialists when the sun goes down. You can reach this blog, and any of our regular contributors, at
donorpowerblog [at] merkleinc [dot] com. See this blog's policies.


A great partner for the nonprofit that wants to get donor-powered and grow revenue like crazy!
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