I was in Indianapolis last week at the Fundraising School at Indiana University attending the Fundraising Principals and Techniques course. Why? Because I am fundraising for GiveMN’s operation costs  and because I want to understand more about the world of development.

Fundraising is fascinating - it is a science and an art - and, according to my teacher Jim, has been around since biblical times!  It is a complex industry that is steeped in tradition and best practices.  I say that because online fundraising was barely on the agenda last week... and I think I understand why.  There really is very limited research on how much money is being donated online - we truly are in our infancy.  We’re learning to crawl, then to walk, then to run!

Prospecting donors, annual fund campaigns, special gifts, major gifts, planned gifts, bequests... as my 4 year old son Amir would say, “Holy moly guacamole!”  It is exciting to learn the top secret, not-so-secret secrets of the trade; how much do you ask people for?  When do you ask them?  How do you thank them?  When do you ask them again? 

So how does this work in an online environment?  How can we successfully attract new donors, younger donors, repeat donors online?  We know that more people are giving online than ever - check out the latest stats.  So, how are you using the internet to raise more money?  Post a comment, send Jeff and me and email (info@givemn.org).  What is working?  What’s not? 

Special shout out to my classmates... smart, fun people from all over the country who are raising money for prosthetics in the third world and the Naval Foundation, (a national treasure!) to an organization that provides a Christian ministry in the national parks across the country.  Sitting in the classroom, I was struck by the complexity of the nonprofit sector - my classmates are from hospitals, universities, churches, schools, social services, faith-based social service organizations and more.  And they all want to know how we raised $14M in a day online in Minnesota!

So how do we continue to build on the momentum with online giving in Minnesota?  GiveMN is looking for a few organizations that are interested in sharing their experiences.  We are gathering a “SuperUsers Group” to give feedback about the GiveMN site and to learn from organizations who are trying new things with online giving (like not sending hard copy thank you letters or running an annual fund campaign online...).  We want to share your stories!  Email us if you are interested in being a SuperUser!  Help us “learn to run” together.

I have heard that people fear a few things as much as death - flying, public speaking and asking for money.  So let’s do this together!

If you are ever in Indy (and I definitely recommend the course!) eat a shrimp cocktail at St. Elmo’s steak house and go for a walk along the canal downtown. 

On June 17th, an EF4 tornado tore a path through the southern countryside leading into the town of Wadena Minnesota, then back into the countryside north of town. The storm cut a path through farms and rural homes, neighborhoods, schools, businesses, and civic buildings.

Picture a swirling wind so strong that heavy blocks of granite headstone are missing in the town’s graveyard, a train car was picked up by the wind and tossed aside, entire homes have gone missing, an indoor hockey arena is crumpled up and thrown about like kitchen foil, or a large school bus is tossed across a highway like a cardboard box rolling in the wind. Much of what did not come down during the storm is being torn down now due to severe structural damage. People died from the tornadoes that set down in Minnesota on June 17th, including a man that passed away from heart failure while caught out in a car during the storm near Wadena. The deaths are tragic, the devastating images offer disbelief, and the stories of fear and survival offer both chills and relief.

At The Saint Paul Foundation, we’re crossing our fingers that adapting the unique toolset of the Minnesota Idea Open platform to our same-old-same-old grantmaking process not only gives the process a refresh but also helps promote the great work of nonprofits in Minnesota.

We call it the SpectrumTrust Multicultural Endowment Micro-Challenge. If you haven’t checked it out yet, hop on at www.MNIdeaOpen.org/multiculturalendowment.

The Need: Connect More Nonprofits to More Funding Opportunities

Minnesota is a generous philanthropic state with more than 1,400 foundations able to provide support to the 30,000+ nonprofit organizations throughout the state.

Nonprofits routinely apply for and receive funding from the foundations that have open applications, but many other foundations (often with limited or no staff) rely on the direction of a volunteer board or the founders to find programs to fund.

No matter how much we try to do otherwise, both processes can (and do) result in giving portfolios that contain the usual suspects, and the usual suspects often have the marketing and outreach campaigns and online presences to make themselves known. They are visible to many. But what about the thousands of nonprofits working to strengthen their communities that are less visible to the broader public - and potential funders?

Many of these nonprofit programs exist within foundation databases and program officers’ files (and encyclopedic minds), where access to that information is limited and cumbersome and getting to it feels a lot like a visit to grandma’s musty attic to try and uncover a treasure long since stored away.

I find it strangely un-mission-like of us to keep using a creaky, bureaucratic process for such inspiring, game-changing work. Why not embrace a dust-free process that packs personality and punch? Shouldn’t our processes also inspire us to action? I would think bringing fresh energy and enthusiasm to an otherwise routine process might inspire other potential funders to join in the excitement.

The Impact: More Programs Receive More Funding

Under our traditional grantmaking process, we accept paper applications for the Multicultural Endowment, one of five endowments specifically designed to build permanent philanthropic resources for Minnesota communities of color.

The old process. Assume we receive 100 paper applications for the Multicultural Endowment per year, and the volunteer advisory board that makes grantmaking decisions, selects six programs to receive funding. The 94 proposals that did not receive funding go into a file, in our database attic.

The new process. Skip forward to October. We have completed our grantmaking process using the micro-challenge format. The advisory board made its six selections, and the 94 programs that were not funded still live online. A few months later, a foundation that does not accept applications is looking for programs to fund that serve communities of color. It has heard about our micro-challenge and decides to peruse the site for inspiration. That foundation ends up funding five more programs that otherwise would not have been funded - or even discovered.

The new world. Fast-forward three years. The number of proposals multiplies - all of them living together online - and other foundations not only have helped fund more programs but also transferred some of their own grantmaking processes to what is becoming a statewide database of ideas for change. Nonprofits use it to spark new ideas or build on existing ones. Program officers at different foundations use it to uncover fresh funding opportunities for donors to support. Nonprofits spend less time buried in paper and more time inspiring their communities to action.

If you’re a foundation, I hope you join us in trying to find more efficient ways to connect more nonprofits to more funding opportunities. If you’re a nonprofit, I hope you watch our first micro-challenge closely and let us know what it looks like from your vantage point. And if you’re a donor, I hope you find something that inspires you to act.

I just had the good fortune of spending two days with our partners at Razoo, the DC based web company that powers GiveMN.

As many of you know, GiveMN was the brain child of the Minnesota Community Foundation - after seeing how quickly the internet was changing philanthropy, their board decided to create an online giving portal that would harness the emerging trends in technology to benefit nonprofits in Minnesota.  Just when they had started to scope out how to build a website, they met Sebastian Traeger, CEO of Razoo.  Sebastian and his team were in the process of building a platform to revolutionize online giving. It was a perfect match, perfectly timed!

Razoo’s vision is to see a world marked increasingly by generosity.  They view their work as helping people experience the joy of giving.  And everyone on the team plays a unique role in delivering that vision.  How cool is that, to think that every day you go to work your mission is to help someone be happy?