FundRaiser Blog

Now is the time to start thinking about what information you need for your End of Year letters for tax season.  Although these letters aren't sent until after the New Year, you may have some decisions to make and some data entry to complete in order for the process to go smoothly. For instance a couple of questions to answer are

• Will you send out letters to all donors, just to donors who will be required by the IRS to have written proof of their donations, or skip sending them altogether?
• Do you want to include a fundraising appeal with the tax summary letter? 

What is a tax summary letter?

Tax Summary letters, often called End of Year letters, give donors information on what they have donated to your organization that year. These statements differ from the holiday appeal, in that they are sent after the holidays. Their primary intention is to give information to the donor for taxes; however it is not uncommon to combine them with another appeal.

You can easily start a memorial giving program just by adding a line or two on your website, in your newsletters and in your appeal letters. For that small effort, you can experience both

• increased donations and
• stronger emotional ties with your donors

Of course to create a really successful tribute program, you'll need to do more. Step by step is the way to succeed.

Memorial gifts are made on the death of a loved one (people and companion animals), or in honor of a special life event like a wedding. People are especially likely to want to make memorial donations to organizations that deal with life and death issues, such as hospices and other health care related programs; veterinary practices and animal shelters. For instance, Kairos Dwelling, which houses terminally ill people, says that a large percentage of their income comes from tributes.

One of the great pleasures of working at FundRaiser is supporting people and organizations who are working in all aspects of nonprofit work. You are our stars, making us proud of the work we do. When you bring together our software with your mission and vision, you bring life to FundRaiser Software.

Over the years, I've talked to many of you who have shown great ability in turning FundRaiser into a powerful tool to relieve suffering of all kinds. I’ve written articles based on what you've told me. We've recently gathered together some of the most helpful of these resources and organized them by type of nonprofit work you are doing. Our hopes are to contribute even more to the realization of your vision.

Gilda’s Club of Western Pennsylvania has a dedication to improving the lives of cancer survivors that inspires me. They keep up a very active schedule of fundraising to pay for the services they offer to cancer survivors and their families. They started small, using FundRaiser Basic, and over the years have built momentum so that they now are running several events at once. Staying organized is a challenge, and they have done it by skillful use of special campaign management features in FundRaiser Software.

Using the Campaign Management Console is straightforward, and in doing so, Gilda’s Club of Western PA is able to easily view campaign ROI, and make adjustments as needed to their campaigns. Debra Markovich, Executive Assistant at Gilda’s Club Western Pennsylvania uses FundRaiser Professional on a daily basis and explains how they stay organized while running several simulaneous events:

When Siena/Francis House began to grow, it also found the need to change how it was using its donor database. With more work, more people were using the database, sometime simultaneously. The development staff also increased the frequency of appeals from just a couple times a year to one going out nearly every month; and  expanded other types of in-person fundraising that relied on good information about how specific donors' felt connected to the organization.

Siena/Francis House is Nebraska’s largest shelter serving homeless men, women, and children. At the time of this interview, they had grown from 86 to 222 beds for the men guests, and more was needed. “Within 2 months of building the new men’s shelter, we were laying down mats for overflow. Depending on the weather, we now house as many as 300 to 350 men, women and children guests a night and serve 900 meals a day,” Marge Harman, Information Technology Administrator for the organization, told me.
Faced with this kind of need, they have kept their database functioning optimally. “The need is there, that’s the sad thing,” says Marge. The following steps will keep your database working well under these high-pressure circumstances, too:

About 10 years ago, key members of CrossTalk ministry took a step back from their work, and realized they weren’t getting where they wanted to go. “We had a lag of four to six weeks in responding to people who contacted us. When we got around to contacting them they were irritated and didn’t care anymore. We were failing,” says Caleb Weiss, Development Director.

Caleb knew that donor management software could help, but theirs was more of a liability. “We had some kind of membership tracking software at that time. It took more work to use than it saved. We were also using several Excel spreadsheets. We needed a software product that would help us do our job without having to put so much into it.”

Mariemont School Foundation didn’t really want to move from their Excel spreadsheets to a donor database, but their new development director said they needed to if they wanted to be more successful. “The people who were on the foundation board didn’t want to learn something new, but then they hired a development director who said in order to be a successful group, donor management software was something we needed to grow our organization. You start out as a grass roots organization and then you need someone to say, ‘to grow your organization this is something you need to do’.” says Ann Pardue, who is a Trustee on the Board of the Mariemont School Foundation.

Since starting to use the donor database, the foundation has seen great gains

According to Ann, Mariemont has been able to:

The environmental organization I volunteer for is important to me, so it followed that when I discovered they were using Excel spreadsheets to track the donors who help make it happen each year, I suggested that we use a FundRaiser Software program instead.

My co-volunteers were leery about moving from Excel to a donor database. They don't know me as any kind of expert on non-profit fundraising. They feared that using a donor database would simply complicate matters. Excel spreadsheets are free and everyone knew how to use them. Their questions led me to do some research so I could tell them more clearly why I was making my suggestion. Here's what I turned up:

Schools can significantly increase incoming donations by clarifying who their most generous constituent groups are and then focusing development efforts on those donor segments. Several FundRaiser users have done this, with excellent results.

1.    Enter your donation amounts into your database

The first step to locating your most generous donors is easy. “It’s a simple matter of entering your checks into FundRaiser. Then all that information is there,” says Ellen Bouye, Administrative Assistant of Oklahoma Christian Academy and a FundRaiser Select user.

“Donors share personal things in letters when they send donations. For instance they might say that they recently lost a loved one. I want to be able to use my software to respond to that person, to create ‘high touch’ communications, and even to become friend,” says Joe Emert of Life Radio Ministries.

Joe makes it part of his mission to interact with donors as people. He also knows that a good relationship to a donor can have a positive impact on giving. “I don’t just do things to help me get another donation and yet I know that if I meet the needs of a donor not just on the radio but also by responding appropriately to an inquiry or something that is said in a letter, that creates a better relationship.

When you decide to move into a more advanced FundRaiser program, it usually means that your organization is in a time of positive change: your organization is growing and having enough success that you can no longer make due with the limitations of your previous software. You make the jump to a more powerful program, open it up and then try to get as comfortable as you used to be with the old software.

I had that kind of positive confusion on my mind when I went over to the FundRaiser Tech Support department and asked Jonathan what would be his ‘best advice’ for organizations who were having 'software growing pains.' He had some great suggestions, but overall it boiled down to this simple piece of advice:

Many FundRaiser users also work as the bookkeeper for their office or interface closely with their organization's bookkeeper. FundRaiser makes this as simple as possible with its integration features for QuickBooks and Peachtree accounting programs. Good people plus good software make an office run well. In our office, the people part of our bookkeeping equation is Mary Badiny and we all interface with her most happily.

She's worked as a bookkeeper all her life, starting during college as a way to support herself. “While I was going to school for a business degree, I got my first bookkeeping job. The woman who interviewed me for that first job said, 'I really need someone with experience, but I'm going to give you a chance.' She became a kind of mentor to me, and we were both happy with how it went. I've been a bookkeeper now for 41 years," says Mary. "You'd think I'd be burned out, but I found the perfect office de-stressor. It's my garden. Of course there is stress, like no rain for 3 months, but it’s a totally different kind and it gives me the right balance."

If you have a Mac computer and are looking for a donor management system, you probably already know that there very few donor management programs written specifically for Mac computers. So what do you do-- just go with the one of the few Mac options out there? That's fine if one of those programs offers exactly the features you want, but given the huge array of donor management programs for Windows users, you might feel a little resentful about being limited in that way.

Good news-- even as a Mac user there are two ways to have nearly as many options in donor management software as Windows users have:

If you are working with FundRaiser software, you are spending some time in front of a computer, just like we are. I enjoy that similarity, and also, seeing the photos of you working at your computers. I’ve been sent a few of these during my time writing about the way organizations use our software. Usually they come with a slightly apologetic comment, like, ‘I know this isn’t a very exciting photo’… or something along those lines. I love them and I think they are beautiful. And I can relate, because that’s how I look when I am working, too. You might be surprised to know, also, that when I post them, they are our most popular photos because we can all relate.

All of us connected to FundRaiser have in common that we are spending time behind our computers. In many of the photos I receive, people are looking up, the way we often talk to people who come to our computers station. Or you may be looking directly across at the camera, the way we sit in an office across from each other. It’s also pretty common to see people turned to look over their shoulder, because we are all facing the screen in front of us, and not the world behind. This is the world we live in, at least for the length of time we are working in a database.

Working mostly from his corner desk by the windows, Joe Salrin quietly fields many data emergencies for both FundRaiser customers and staff. His primary job is data conversion – moving data out of other brands of software and into FundRaiser for new customers. He is also the ‘go-to’ person for difficult, quirky, or just plain obstinate problems that involve technology and data at our office.

I asked him to tell me what he does in a normal day, and he laughed. “There is no normal day,” he answered. “Normal is whatever happens.

You still have time to catch them... and it's easier to do it while they are still in sight, than later when they are totally gone. That's lapsed donors I'm talking about.

One of the most important groups to send letters to are Lapsed Donors - those who have given in the past, but not in the most recent 9-24 months. It’s much easier, and less expensive, to win a donor back than to find a new one.

Lapsed donors have indicated that they are interested enough in your organization to donate at least once. This makes them highly qualified as potential future donors. For some reason they have not felt the incentive to donate again recently. That may be for reasons beyond your control, but it might also be because you haven't asked.

I am going to go out on a limb here--  I believe that in order to enjoy life you have to really get into it, and sometimes that includes taking risks. If you are like me,  you may like to take them slowly, a step at a time, with thoughtful pauses. Or you may just sprint ahead.

One way or another, you may find yourself out on the proverbial limb: even though it is holding you up at the moment, you aren't quite sure if it will continue to hold you, or where the next step is.

Talking to Sarah at MaineShare got me thinking about what exactly makes any particular person happy. I happen to agree with her about getting out in nature. That also makes me happy, so for Happiness Happens day that is where you will find me and my dog Lulu. I also wondered how the rest of the FundRaiser staff will be spending their Monday holiday.

James Ware, Sales Representative: We'll take the bulldogs down to the river. We have life jackets for them.

I contacted MaineShare to talk to them about how they celebrate Happiness Happens Day, which I posted about here in Happiness Happens Day at MaineShare. I wasn't expecting when I talked to them to learn about a unique way of fundraising, but that's also what happened. MaineShare is part of a national organization called Community Shares. Each Community Share organization, in this case MaineShare, acts on behalfof local nonprofits who belong to it as members in order to participate in workplace giving programs. his organizational model creates some unique tracking challenges, which MaineShare is meeting in outstanding fashion with some help from FundRaiser Professional. Here's how it works:

Acting on behalf of their member organizations, MaineShare raises funds for 43 local nonprofits groups. The structure created by the Community Shares model that they follow works well. It also creates the need for highly accurate tracking of many different and sometimes complicated fund pools. MaineShare relies on FundRaiser for help. With the skillful use of codes and reports, MaineShare keeps their records accurate and their funding distributions to member groups on-target.

Because MaineShare does most of its fundraising through workplace giving programs, they are acquainted with a wide variety of workplaces. Company culture is important to them. Their satisfaction with FundRaiser is based both on the software and on their experience of the company, as well.

“We love your holidays, for instance that you have the first day of spring off. We feel like you have a good workplace and we like working with other places like that. We feel your love,” says Sarah Fagg, Campaign Coordinator and the main user of FundRaiser at MaineShare.