Best Of The Agitator – 2015 – Innovation and Myth
There’s no question in our minds that the fundraising trade relies heavily on myth and is a bit light on innovation. Often the myths masquerade as ‘best practices’ and go empirically unchallenged for years and years. When challenged there is usually quite a dust up as folks move to defend those ‘best practices’ –even in the face of factual evidence to the contrary.
When it comes to innovation — an especially essential virtue in our fast-changing world — all sorts of reasons are marshaled against it. The need to ‘meet the numbers … not in the budget … we simply don’t have time … you name it.
Two of our 2015’s Agitator Top Ten involved myth and innovation and, as you can imagine, plenty of opinion from Agitator readers. If there’s a less fun, but more productive way to spend New Year’s Eve, we can’t think of it.
Roger and Tom
THE YEAR-END GIVING BONANZA IS A MYTH. Few posts in our 10-year history have raised more comment and controversy than this heaping helping of controversy served up by Rob Mitchell, the founder of The Atlas of Giving.
“It’s time to stick a fork in the year-end giving myth”, says Rob. And that’s exactly what he’s done with a review of giving data going back to 1948. For example:
- The perception that year-end giving is more robust is based on “observed tradition”. In reality there is only “a slight increase” during this period.
- This “observed tradition” leads to thousands of nonprofits filling mailboxes, airwaves and the Internet with very aggressive solicitation activities in the year-end window.
- This flurry of year-end asking takes place at the very time when competition is most intense. Thus Rob concludes, “Most nonprofits would find that they get a better return investing in solicitation activities at times other than year-end.”
A tsunami of both howls and hallelujahs from Agitator readers roared forth. See what readers Rebekah Basinger, Mary Cahalane, Denisa Casement, Judy Levine, Steve MacLaughlin, Ken Miller, Rob Mitchell, Gail Perry, Kathy Swayze, Danielle Johnson Vermenton and David Wilkins had to say about this myth-buster.
For years we’ve pondered and reported on innovation or the lack of it in fundraising. So, mid-year we went into The Agitator Archives containing past posts on innovation and then produced a five part series on key aspects of innovation as it relates to nonprofits.
INNOVATION SERIES #1: ARE YOU UP FOR IT?Tom shares his Innovation Quotient ( one-third desire, one-third mandate and one-third means) and illustrates it with his own — and fortunate — experience in being recruited for the top marketing & communications slot at Environmental Defense Fund.
INNOVATION SERIES #2: WHAT CAUSES INNOVATION?
Guy Kawasaki of Mac marketing fame is interviewed by Scott Berken, author of The Myths of Innovation. Find out what ‘epiphanies’ and ‘magic moments’ really consist of and the truth behind the label of ‘creative person’.
INNOVATION SERIES #3: EXALTING THE TRIVIALRoger notes that a significant barrier to true innovation stems from most nonprofits’ fixation on minutia that simply doesn’t matter. This fixation does however provide plenty of excuses, principal of which is: ‘I simply don’t have time’.
INNOVATION SERIES #4: FAILURE TO INNOVATE
From failure to innovate in the testing of direct mail to a failure of mindset (‘our work is simply too important to risk failure’) Tom invokes Seth Godin’s admonition: “Go fail. And then fail again. Nonprofit failure is too rare, which means that nonprofit innovation is too rare as well.”
INNOVATION SERIES #5: IDEAS APPLIEDExamples of innovation applied. Tom sorts through scores of ‘top innovation ideas in fundraising’ and picks his own Top 5. He even throws in a Bonus #6. See which ones you agree with.
Enjoy your New Year’s Eve and we’ll see you in 2016.
Coming Up: Fundraising Failures to Motivate NEW New Year’s Resolutions
Happy New Year to you two, Roger and Tom. Thanks for all you do.
And now you want – nay, expect – innovation? Oh dear. Oh crap. Who has the time. I mean really! Who has the time. There’s the budget and the boss and the board chair and those board members with their top-notch opinions and so much very valuable and terribly cool life experience and work experience and…
Oh dear. I’m being really sarcastic and it’s only 8:02 a.m. eastern standard time. “Stop it, Ms. Simone. Get it together!”
Happy new year really. Thank you for all you do. And thank you to the NGO sector and all the people who work in it. Some who try their best. Some who are too afraid to try different and better.
Just imagine. It’s 2016. Let’s kick some butt. Our own. Theirs. The sector’s. And on and on and on.
Peace.
Thank you and ditto.. have a wonderful 2016 and let’s keep doing what we’re doing really well and keep our donors happy and giving!
enjoy!
cheers, Erica
As holiday reading I’m finally getting around to the 2014 reports from Vanguard and Fidelity’s Charitable Gift funds. The former is particularly interesting for fundraisers. And, at least for its DAF donors, it debunks the year-end giving myth myth. Look at the sharp peak for DAF grants made in December 2014 relative to the rest of the year. And this from donors who aren’t getting any additional tax benefits from their year-end DAF gifts.
Check it out:
https://cdn.unite529.com/f/248/21630/7d/im.uprinv.com/rc/sr2/vcep/SCBGA_052013_Granting%20Analysis.pdf
Sorry Dan but you missed a few things. The year end giving myth is still real. Here are a couple of quotes from the Vanguard Report: “Only 5% of donors say they grant soley at year-end”. 39% of Vanguard grants are made in November & December” – Dan, that means that a majority of grants (61%) are made at other times of the year. The truth remains that most people give when they are asked and many charities spend their solicitation budgets at year end.
Almost 100% of gifts of $50,000,000 are more are not made at year end.
A majority of higher education gift (2nd largest giving sector) are made in April, May, and June because their fiscal years end June 30.
The Atlas of Giving has the data that compellingly shows that while most years experience a very slight uptick in giving at year-end, It is not true every year. In 2001 following 9/11 almost all giving to non-disaster charities dried up for 6 months. 2008 and 2009 (recession) were also bad years for year end giving… even with all of the solicitation efforts.
As they say on Mythbusters, this myth is confirmed.