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Fundraising Update

A weekly rundown of the latest fundraising news, ideas, and trends gathered by our fundraising editor Rasheeda Childress, fundraising reporter Emily Haynes, and other Chronicle contributors. You’ll also find insights from your fundraising peers. Delivered every Wednesday.

May 17, 2023
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From: New Tool Can Help Fundraising Teams Gauge Diversity, Belonging

Subject: New Tool Can Help Fundraising Teams Gauge Diversity, Belonging

Welcome to Fundraising Update. This week, XXX

I’m Emily Haynes, senior reporter at the Chronicle of Philanthropy

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Welcome to Fundraising Update. This week, we check out a new benchmarking tool that helps fundraising teams improve diversity, equity, inclusion, and belonging at their organizations. Plus, a new report dives into how much GoFundMe’s and other peer-to-peer fundraising campaigns are raising.

I’m Emily Haynes, senior reporter at the Chronicle of Philanthropy. If you have ideas, comments, or questions about this newsletter, please write me.

A New DEIB Benchmarking Tool for Fundraisers

Improving diversity, equity, and inclusion has become an increasing priority in many fields — and fundraising is no exception. Experts say the key is long-term commitment and evaluating what’s working and what’s not at your organization. The Council for Advancement and Support of Education has created a tool that aims to help fundraising departments assess how they are doing in their efforts to improve DEI and the next steps they should take in their journey, my colleague Rasheeda Childress reports.

“There are some really systemic barriers that are in the field of advancement,” says Benjamin Fiore-Walker, senior director of the Opportunity and Inclusion Center at CASE. “We came up with this idea of how do we measure where institutions are in their maturity in their diversity, equity, inclusion, and belonging (DEIB) journey.”

Fiore-Walker helped develop CASE’s new Advancement Inclusion Index. The tool, which includes a lengthy questionnaire, is designed to help university advancement departments see how they are performing in terms of DEIB and provide benchmarks against similar-size peers. While the tool is designed with university fundraisers in mind, Fiore-Walker says, any organization with a fundraising team can use it.

Diverse cultures, international communication concept. Human silhouette with speech bubbles. (Bobboz, Getty Images)
Bobboz, Getty Images

Diversity has long been a problem in fundraising, says Isabelle Leighton, executive director of the Donors of Color Network. Many longstanding legacy institutions, she says, have passed on a fundraising culture that is not welcoming to people of color. “The operations are really big, there’s a lot of pressure, and there’s historically much more structural racism,” she says.

Leighton adds that many organizations hire people of color and then don’t work to make them feel like they belong. Too often, she says, nonprofits dismiss people’s attempts to bring their culture to the organization with them — especially when it comes to reaching out to donors of color. “They’re not taken seriously and not seen as people who have the same kind of resources.”

Leighton says any tools that help a fundraising department “shift their organizational culture to address” diversity, equity, inclusion, and belonging will serve an organization well.

CASE’s inclusion index asks for numerous data points about the advancement department — about staff, donor, and volunteer policies and practices — to help assess the university. The tool also asks the institution to rate where it stands using a six-tier scale that ranges from a policy being “not present” to being carried out at an “advanced” level.

The assessment has more than 80 questions and asks for demographic data. In the pilot for the project, most universities completed the online questionnaire within two months. They then received an assessment that showed where they took in a variety of categories and how they compared with their peers.

The assessment can help advancement departments get a handle on where they are and where they need to go, Fiore-Walker says.

“You can really start mapping out what these initial, intermediate, and long-term steps need to be,” he says. “You can say, here are some things that you should be doing to really have a robust DEIB strategy.”

For more insights — including items from the index on which departments are asked to rate their performance — read Rasheeda’s full story.

Need to Know

84%

— The share of online fundraising campaign traffic that came from Facebook, making it the most popular social-media site for charitable campaigns.

A new report sheds light on best practices for charities raising money online, with such information as which social-media site has the highest conversion rate and how to turn first-time donors into recurring supporters, reports my colleague Rasheeda Childress. The report also offers data on something nonprofits have long wondered about: crowdfunding campaigns for individuals on GoFundMe.

The report found that GoFundMe campaigns shared more than six times in the first few days are three times as likely to raise more donations than those shared less often. Traditional nonprofit fundraisers should apply this information when crafting their own online campaigns, says Michelle Boggs, executive nonprofit industry adviser for Classy.

“It goes back to the urgency that inherently is built into a GoFundMe campaign,” Boggs says. “Oftentimes, it’s built around a disaster or a timely event. I think traditional nonprofits can take some of that and think of ways to drive more urgency, especially when it comes to that peer-to-peer fundraising.”

Boggs describes peer-to-peer fundraising as anytime a supporter asks friends or colleagues to donate. That could be someone using social media to ask friends to make a charitable donation in lieu of a birthday gift or seeking out donors to support them during a walkathon. The combination of nonprofits highlighting the urgency of the need and peers sharing the appeal could improve campaign performance, Boggs says.

Learn more about the report’s findings.

Plus ...

  • Nataki Garrett, the departing artistic director of the Oregon Shakespeare Festival, set about transforming the group’s fundraising practices when she arrived in 2020, upsetting some longtime donors. My colleague Drew Lindsey reports on the fallout — which included tremendous financial pressure, allegations of racism, and death threats issued to Garrett.

    One motivation for these changes was to make OSF’s art more accessible to all. Among other changes, OSF eliminated a list of insider perks offered as enticement to join the Artistic Director’s Circle, including choosing a play to sponsor by name. Garrett found this practice led to competition between donors eager to back the best play and ensure their production had the highest production values, Drew writes. Also, those same donors often didn’t show up on the annual fund rolls.

    That mind-set had to change, said Anyania Muse, who arrived in 2021 to lead the organization’s diversity, equity, inclusion, and access efforts and became interim chief operating officer in January. Otherwise, there was a danger that support from a narrow set of the wealthiest donors could influence play selection and shape the art itself. “There’s a model where donorship is ownership, and that’s one of the No. 1 things I wanted to infiltrate.”

    If Garrett spelled out her strategy to supporters, it appears to have been lost in translation. Longtime patrons considered it foolish to reduce ticket prices in the face of a fiscal crisis. Some were furious when the organization indicated that it was doing away with its membership program. As members, they said they felt a sense of belonging to the festival. Now, OSF seemed only interested in their money.

    Any new leader introducing change might face such criticism. But at least some of Garrett’s critics believe it is her push for equity and inclusion that has triggered a collapse in ticket sales and donations. Supporters have lost either faith in OSF or interest in its plays, they say.

    Regional theaters typically rely heavily on a handful donors, and those supporters have wielded enormous influence on what stories get told on stage, by whom, and in what way, Fleming said. Ultimately, if the theater’s going to engage new audiences and survive, he added, those donors will have to give up control.

Advice and Opinion

  • Bonuses Can Help Nonprofits Stretch Budgets and Retain Fundraisers: Workplace culture plays a crucial role in how well incentive compensation works to draw in potential hires.
  • Thanking Donors Is Not Drudgery (Opinion): Showing gratitude to those who support nonprofits is a critical task that shouldn’t be relegated to a chatbot.

What We’re Reading

Fundraisers have long predicted that society was on the precipice of an enormous transfer of wealth from baby boomers to younger generations. Now, the New York Times has created a data visualization that demonstrates just how massive this wealth transfer will be. The baby-boomer generation collectively holds an extraordinary $78.3 trillion in assets, or half of all the family wealth in the United States. That’s largely thanks to a successful few decades in the financial and housing markets, but the Times notes that boomers who were already wealthy in the late 1980s benefitted the most over time. The piece interviews people across generations and income levels who expect to inherit wealth, as well as financial managers who are taking stock of changes that are bound to reshape society — and philanthropy — in some way. (New York Times)

Online Briefings

  • 700x450_Newsletter-all_Donor-Perfect.png

    ‘Everyday Megadonors': A New Force in Giving

    There are nearly four times as many Americans worth $50 million or more than there were a decade ago, many of whom keep a low profile. Some savvy fundraisers have built strong ties with these multimillionaires and billionaires. Join us and our panel of experts Tuesday, May 23, at 2 p.m. Eastern to gain insights into how they connect with donors in authentic ways that have led to some of the largest gifts in their histories. Register today for this free session.
Emily Haynes
Emily Haynes is a senior reporter at the Chronicle of Philanthropy, where she covers nonprofit fundraising.
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