Dear Kim Q&A Column Archive

A Series of Dilemmas

Dear Kim,

I am the Executive Director of a small nonprofit (current budget: $385,000). We have the opportunity to purchase the building we currently occupy. The board and I are trying to figure out all the pros and cons. We have some senior level bank executives telling us that it is not good to get into the real estate business and others saying that it is important to have stability, a home, etc. Some of the issues (good location, room for expansion, fair price) we have already thought through but I am wondering if there are other issues that we need to take into account that we have not yet thought about. The board is well enough connected that I believe the fundraising for the purchase will not prove to be an obstacle - a challenge, certainly, but not an insurmountable one.

—The Old Renter/Buyer Dilemma

Dear R and B:

Your question is very thoughtful and you have listed a number of the concerns already. So I will add this: I am pretty firmly in the camp of buying rather than renting if:

1. Your capital campaign to raise money for the purchase of the building will not eat into any of your annual income

2. You intend to stay in the space for at least five years

3. You can reasonably expect that your property will appreciate in value

Just as home ownership is one of the best ways to move into the stability of the middle class, building ownership takes small organizations to a whole new level of financial security. You now have an asset you can use as collateral, you know what you will be paying for your space from now on, and you can fix the building to your specifications. You are not going into the real estate business-it doesn't even sound like you would have any tenants. You are simply owning the property where you do your work.

I'd say go for it.

Good luck.

—Kim Klein

Dear Kim,

We've heard your message and understand it to be as follows: "People rarely give unless they are asked. So ask any time and every time you communicate with potential donors." We interpret this to mean: place a donation envelope in every mailing piece and a blunt "ask" statement. Within our organization we've had a number of discussions regarding this understanding and we're writing to get your comments in order to put the issue to rest.

Strong views exist in several areas. First, some individuals who work with our organization and give to many other nonprofit organizations feel that getting a donor envelope in every mailing shows the organization is wasteful since the donor has already given once during the year. Their suggestion is to place the "ask" envelope only in the end-of-year newsletter (Nov/Dec) with a direct appeal, and in the direct appeal letter sent out in the late summer/early fall. The other newsletters would have a section that tells donors how to give but would lack the envelope.

Secondly, a good communications plan for an organization specifies the primary purpose and goal of each communication, whether print, video, special event, etc. With regard to print publications, some think the primary purpose of the annual report is to satisfy certain regulatory obligations and to communicate to donors and potential donors that we're good stewards of their money-confirmation that we're fiscally sound and headed in the right direction. The editorial copy reaffirms the decision to donate and by not-so-subtle an inference, encourages future giving. However, an "ask" envelope appears to some as detracting from the message of the piece and believe it doesn't belong in the annual report. A third opinion is that every mailing should have an envelope enclosed to encourage as many opportunities to give as possible. Your comments truly will be appreciated in this matter.

—To Ask or Not to Ask

Dear A and N:

You have heard my message, and have obviously discussed it in detail with many members of your organization, which I am pleased about, and which shows you are giving your fundraising an appropriate amount of thought. However, you have given my thoughts a rather literal and narrow interpretation which I would like to expand.

Before I go through your letter in more detail, let's step back and remind ourselves of the purpose of fundraising, which is: to build relationships. What we want to do is "raise donors" who give us money, which is quite different from simply raising money. So when a donor gives, we want them to give again. How do we get them to do that? Yes, as you say, by asking again. But not before we thank them for their gift and let them know we appreciate their help.

So, I say NO donor envelopes in the thank you notes, and a softer ask in the newsletter. You want people to be asked, but you don't want them to feel that all they are good for is more donations.

Remember that you are asking every time you communicate with the donors. Sometimes it is overt: "Will you help us again this year with a gift of $50?" Other times it is very vague: "Here is what we are doing and we thank all the people who have made hat possible."

What makes a donor want to give again and again is primarily that the organization does good work, but also that the donor feels appreciated and needed. Whatever you do that communicates that you do good work, and that you appreciate all the people that help you by giving counts as asking. It does not take the place of direct asking, but it helps with the direct ask.

You include return envelopes in your annual report (which is not a regulatory obligation, but is a nice way of summarizing your previous year's accomplishments and also a way of showing donors that their money was well used and honestly spent with the publication of your profit and loss statement or your audit), and your newsletter because if the donor is pleased with what they see there, they may want to make it happen some more. Or they may pass along the newsletter or annual report to someone else who then uses the envelope to give.

When I say you should ask as often as possible, I mean that you should include a return envelope in every newsletter and in your annual report, and obviously in your fundraising letters.

Hope this clarifies and expands the definitions of asking.

—Kim Klein