tax

Research is Essential to Fundraising in the Era of Tax Reform

January 18, 2018
, , Community Studies, Financial Services

The Melior Group is pleased to share this special guest blog post written by:
Michele A. Schiavoni, APR, M.S.
Schiavoni Consulting, LLC
Marketing, Communications & Fundraising Counsel
[email protected] 

Nonprofits throughout the nation begin a new era in 2018, in part because of the tax law changes going into effect this month.  Respected sources including Giving USA Foundation and the Lilly Family Foundation project that the overall impact to the nonprofit sector could be a staggering $13 billion loss in individual donations.

Although I do not think the changes in charitable giving are sound public policy, the nonprofit sector has to adapt to survive and thrive.  The unintended consequences of the tax changes have yet to be experienced and when the full impact is felt, we may see corrective action in the future.  But for now, nonprofits have to pivot.  These changes do provide a unique opportunity for worthy, mission-based organizations to take inventory of how they communicate their value to their philanthropic investors.  Research tells us that tax incentives are NOT the prime motivator for individual giving.  Donors tell us they give to causes that align with their passion, and savvy donors are more focused than ever on measurable outcomes.  To remain successful, you must ensure your donors see your organization’s work as essential in a competitive philanthropic marketplace.

Qualitative and quantitative research is essential to position your mission-based organization for success in a post-tax reform era.  Why?  The changes in tax law only tell part of the story. There is a cluster of compelling reasons for fundraisers to bring a new sense of rigor to their strategic planning.  The reality is, prior to the tax law change, the nonprofit sector in America was already evolving; funders have become increasingly attentive to donor’s expectations around accountability.

Nonprofits should take a brand strategy tip from the for-profit sector.  Research is required in order to truly understand how your donors experience your organization.  The closer you align with your donors and prospects, the more opportunity you have for enhancing loyalty and sustaining philanthropic investment.  Consider qualitative research to gain new understanding for how your donors experience and react to your brand.

Engaging professionals to conduct qualitative research such as interviews with your donors, either one-on-one or in focus groups, will provide extensive insights into how your mission is perceived.  This input is essential to fashioning an effective case for support.  The closer you align your organization with your most valued donors, the more effectively you can sustain loyalty and gain the added advantage of growing your donor base.  If you are an educational institution focused on increasing alumni giving, don’t launch new social media campaigns and direct mail strategies UNTIL you have invested in listening to your alumni.  You need to know: what prompts alumni to give; when are the best times for them to convene; what do they want to hear more about from their alma mater?

A second and equally important step is to ensure that your organization’s operating plan measures impact.  The days of counting attendance at events to gauge success are behind us.  Today’s donors want to see the social impact of their investment and this requires a new commitment to measurement and research.  Donors care less and less about transactions and more and more about transformation.  There is no escaping the reality that your nonprofit’s outcomes must be supported by research-based metrics.   Your donors need to understand what you are improving and whose lives are changing because of what you do.  Community impact studies play a critical role in telling that story.   This applies accords the board from arts organizations to shelters.

Research is an essential next step in your nonprofit’s sustainability.   Your efforts will uncover more effective strategies for engaging prospective donors and sustaining relationships with loyal donors.  To thrive in this new era, you must invest in research.

Interested in discussing a research project for your nonprofit?  The Melior Group can help.  Contact Linda McAleer at [email protected] or  215-545-0054 x104.

Millennials: Where will they go?

November 11, 2014
, , Financial Services, Higher Education, The Art of Research

By Sharon Hackenbracht

As I noted previously in my earlier blog entry the life choices that are being made by millennials are significantly influenced by their parents.

While the recession compelled many millennials to live at home with their parents, a recent study projects that millennials – the largest and most diverse generation in history – will create up to 24 million new households in the next ten years. The Chicago Tribune reports that half of adults between the ages of 18 and 34 report that they plan to ask their parents, and even their grandparents, to help them come up with the down payment needed to purchase a home (as cited by www.trulia.com, 2014).

Where will these households be? How will millennials choose to live? And what furnishings will they decide they need? How will their choices differ from those of their parents, and what, if any, influence will their parents still wield on these choices?

 

Understand Millennials by talking to their parents.

Want to understand Millennials? Talk to their parents.

April 11, 2014
, , , , Financial Services, Higher Education, The Art of Research

By Sharon Hackenbracht & Elisa Foster

There is an overwhelming amount of research about the Millennial Generation (also known as Generation Y).  And now that they’ve entered adulthood, ranging between the ages of 18 and 34, Millennials are a hot topic among those studying trends in higher education, financial services, workforce development and how young adults are faring in the current economy.  However, getting a sense of the Millennial mindset is tougher than you may think. Depending on who you ask, Millennials are everything from lazy and spoiled to confident and open-minded.

In our work with educational institutions, we’ve learned that a key to understanding Millennials is to look at one of the biggest influencers in their lives: Parents. 

In order to understand the behavior of young adults, it is vital to also understand the behavior of parents who are providing financial and other assistance to their children. The last decade has seen a drastic increase in the number of adults between 18 and 34 who still live at home and rely on financial help from their parents. This not surprising news given that 16% of Millennials are unemployed and they are graduating from college with an average student loan debt of $29,000.

Parents of children who are in high school, college and in their twenties are becoming an increasingly important, though largely untapped, research segment.  Increasingly, many are providing financial support, housing, career guidance, funding for education, health insurance and rent or mortgage payments.  Some parents are even taking their kids to job interviews.

The implication is that if parents are providing support to their children as they become adults, it means that they have a good deal of influence over many aspects of their children’s lives: what kind of car they buy, what college they attend, what kind of bank accounts they hold, how much they are spending on travel and entertainment, etc.

In the course of our research at Melior, we’ve learned that parents often play a major role in such important considerations as what field of study to pursue at college.  For instance, we’ve observed parents debating with their children about whether the child would major in business or liberal arts.  It was apparent through these discussions that parents most often win the debate.

Ultimately, to understand the Millennial Generation, you also have to understand their parents’ perspectives and the dynamics of parent/child relationships that influence behavior and choices.

Are you a Millennial or the parent of a Millennial? Do you think Millennials depend on their parents more than previous generations?  Please share your stories and opinions in the comments section below!

 

Holiday Shopping Update: And the Winner is…The Internet!

December 6, 2013
, , , , , , Financial Services, The Art of Research, The Invisible Customer

Online Shopping is an important part of holiday shopping

By Susan J. Levine and Elisa Foster

Last week, we asked you to take a quick poll about your plans to go shopping on Thanksgiving and Black Friday.  While a large majority of those who took our poll said they would not shop on either day, retailers lured big crowds into the stores with aggressive marketing and steep discounts.  The National Retail Federation estimates that a record 141 million people took advantage of the holiday sales over the four-day weekend that began on Thanksgiving and ended on Sunday.  For many Americans, Black Friday shopping – and recently Thanksgiving Day shopping – has become a holiday tradition. We all know families who finish Thanksgiving dinner then immediately start planning their trips to the local malls and standing in line outside of big box stores.

However, “the economy spoke loud and clear over the past few days,” according to the CEO of Belus Capital Advisors.  People flocked to the stores, but they didn’t spend much money.  Shoppers spent an estimated 1.7 billion dollars less than they did last year and physical stores saw their first decline in spending on Black Friday weekend since 2009.

While brick and mortar stores suffered a decrease in spending, consumers flooded the Internet over the weekend and on Cyber Monday.  In fact, Cyber Monday shopping increased by 18% compared to last year.  And notably, mobile shopping (from smartphones and tablets) accounted for 30% of all online traffic.

This drastic increase in online shopping and use of mobile technology is a sign of the times.  Americans across age, income and ethnic lines are becoming more comfortable conducting business and making purchases online.  For instance, in a recent survey conducted by Melior, 70% of respondents said they pay bills online.  The increasing success of Cyber Monday is just another sign that technology and online shoppers (a.k.a. Invisible Customers) will continue to impact our economy in future years.

Now that we’ve talked about holiday spending, it’s time to focus on holiday giving.  Stay tuned for our update on Giving Tuesday and how we can all give back this holiday season.

Black Friday: The Super Bowl of Consumer Research and Take Our Poll!

November 27, 2013
, , , , , , , , Financial Services, The Art of Research

Holiday Shopping on Black Friday

By Susan J. Levine and Elisa Foster

Do you know someone who works in consumer research or retail marketing?  They’re probably in a frenzy right now because this week is the Super Bowl of consumer behavior research: Black Friday.  For the past several weeks, we’ve been hearing and reading endless stories about who will shop, when they will shop and where they will shop on Black Friday.

However, this year’s Black Friday is special as more retailers are opening on Thanksgiving Day.  With this increase of stores extending their holiday hours, everyone wants to know how this year’s shopping behaviors will impact how we celebrate holidays in the future.  Is this the end of Thanksgiving as we know it?  Journalists and bloggers are using stats to “prove” many, and often contradictory, points:

Let’s continue the conversation!  Please take our 2-second poll about YOUR consumer behavior and pass it along to your friends.  Then, stay tuned for our follow-up post next week to find out what really happened.

[polldaddy poll=7599123]

[polldaddy poll=7599130]

Invisible Money?

September 4, 2013
, , , , , Financial Services, The Invisible Customer
Bitcoin, an example of invisible money

Bitcoin.org

By Elisa Foster

Invisible customers can now pay with invisible money (a.k.a., digital currency). With the emergence of Bitcoin, consumers have the ability to make transactions from their computer without an intermediate financial institution.  Bitcoin has been getting an incredible amount of attention over the last year and people are starting to wonder how it will affect the financial services industry.  Head over to American Banker for an interesting discussion on Why Banks Should Care About Bitcoin.