One signature fundraising event, 80% automated

Chad Barger: When we can take a step back in this sector and look at the impact that all of that work does, that's very different from the for-profit sector or other places. We truly drive change in our communities, our world. I don't care how bad the day is, we're still making that change.

Ann Fellman: Bloomerang presents Fuel Impact, the podcast that powers your next fundraising breakthrough. This is where we have real conversations with fundraising leaders, technology innovators, and fundraising experts. In this episode of Fuel Impact, I spoke with Chad Barger, chief strategist and owner of Productive Fundraising. We talked about efficient and effective relational fundraising. We uncovered ways to convince leadership to invest in fundraising technology. We also talked about maybe cutting down events to one a year, as well as advanced thinking on QR codes. This is the 201 thinking and ideas when it comes to QR codes. So if you work with nonprofits or fundraising teams, this episode matters because there are tips, tricks, techniques, and aha moments you can apply, whether you're a lean team or a fully staffed team. Regardless, you're going to want to get your hands on this episode. Here's my conversation with Chad Barger. Welcome to Fuel Impact, where I have the opportunity to sit down with people helping nonprofits push their fundraising impact higher. I'm Ann Fellman, Chief Marketing Officer at Bloomerang, and today I'm joined by Chad Barger, Chief Strategist and owner of Productive Fundraising. Chad helps nonprofits fundraise more effectively and more efficiently. He's got a number of acronyms after his name, like ACFRE, he's actually the 117th in the world to accomplish that. He's a top-rated speaker, master trainer, and coach. Chad, thanks for being here.

Chad Barger: Great to be here, Ann. Thrilled for the conversation today.

Ann Fellman: Well, what I love to do is introduce you to our listeners and viewers out there. In one sentence, Chad, let's just pretend that we've never met each other and I run into you at a conference, what's the version you'd give me of, Chad, who are you, what do you do?

Chad Barger: I always say I'm a fundraising trainer and consultant. I help small nonprofits fundraise more effectively and efficiently. It's always those two keys for me, it's not just that we're doing the right thing, it's how we do the work. I find a lot of times that's really what's more broken, it's not the what, it's the how.

Ann Fellman: So for fundraisers out there, what are your top three pieces of advice that you give to nonprofits right now?

Chad Barger: It's a challenging environment, kind of a weird environment right now, things are shifting. So it's kind of coming back to basics a little bit. For me, monthly giving is the lead ask, monthly giving first. A lot of people do it like it's an option, but they don't lead with it. And what we see is the fundraising law of seven kicks in, donors need to be asked like seven times before they actually do it, and most nonprofits just kind of have it casually there. So monthly first, in everywhere we ask, it's always the option. I like to recalibrate events too, fundraising events are the thing I love to pick on. I work with small nonprofits and I'll get in there and they'll have like six events and they're always in event mode, so I like to really focus it down to one big signature event and use that as an acquisition tool. There are lots of easier, more efficient ways to raise money. If we're going to do an event, let's at least make sure it brings new people to our organization. The third one is retention, and I know Bloomerang is all over retention, and yep, for me too. But when I think about retention, I think, how do we optimize for the second gift? How do we get that second gift? It's not the first gift that's the hardest to get, it's the second gift. And if they make that second gift, they stick around for a long, long time. So what's that first-year experience like at a nonprofit? Those are kind of three things I usually like to hone in on right away.

Ann Fellman: I love your comment on events one time a year. I worked at a nonprofit once and it was like every quarter we had some huge event, and it was just always planning.

Chad Barger: The average event, it's four months of focus, the three months leading up to it and one month after. So if you have two events, that's over half the year in event mode. Three, it's year-round.

Ann Fellman: Versus picking up the phone and calling and reaching out and cultivating, getting to that second gift. So that's some really good advice. So Chad, you know, love to talk controversy sometimes, and that's always good fodder for conversation. But I'm curious, with the advice you're giving and advising, what is something about this work that you believe that not necessarily everyone believes in?

Chad Barger: There's a line or a question that comes up a lot, or maybe a comment, I'll be doing a talk somewhere and at the end people will say, we need younger donors, our donors are getting older, how do we attract the next generation of donors? And I kind of push back on it, because my entire career, the average donor has been like a low-60s, college-educated female. It has just stayed steady, that is the average donor in the US, despite the fact that we have generational shifts and change. Just last week I saw a statistic that millennials are giving currently about the same level that boomers did 20 years ago. So it's just shifted, and put this focus on trying to get younger donors, it just kind of seems counterintuitive to me. So yeah, there's my hot take.

Ann Fellman: And maybe it's more about navigating the generational shifts. So if your donor population is staying in that 60s, but now we're exiting the boomer generation and going into the Gen X zone and then the millennial zone, think about and educate yourself on the generations and some of the tendencies or preferences a generational group might have, but it comes back down to that one person, each individual person is unique, and understanding what resonates with them is really, really important.

Chad Barger: Yeah, I completely agree. The generations are different, but younger donors for the sake of younger donors, I think that's the wrong focus.

Ann Fellman: That's great. It's time people are thinking about end-of-year fundraising, and they may even be thinking about 2027 planning and beyond, what does the future look like? I'd love to get your take, what is a fundraising strategy, what should that look like in 2027 for a nonprofit, what advice or what are you looking at from that perspective?

Chad Barger: Yeah, we have so many new tools now, through AI and automations we can get so much more done than we used to be able to with a lot fewer resources. But I think some people just get kind of overwhelmed with it all, so narrowing it down and pulling in to get that operation you need. When I work almost exclusively with small organizations, we're always looking at how can we automate 80% of stuff so that we can focus 20% on building meaningful relationships with that crew. So, 80% of the work, create it once, reuse it, use all the tools, so we can use 20% of the time to really build and deepen those relationships, because that's the thing we can't replace with technology, the human side. So how do we automate 80 so we can spend the other 20% really doing deep, meaningful relational fundraising.

Ann Fellman: So when we think about fundraising strategies, okay, automating 80%, but let's talk for a minute about transactional versus relational, especially with automation and some of these things. From your point of view, what's the difference between a transactional fundraising culture and a relational one in an organization, and how do you build to the latter, how do you move your organization to a relational fundraising culture?

Chad Barger: Transactional is frequently the first step. Like I said, focus on that second gift, the first gift is frequently just transactional, they came to an event, they bought a ticket, they entered a raffle or something. But you have to share that story and deepen that connection with them, what's that process? It's not usually just an ask. It's not, they did something, I added them to our email list, and now they're going to get our end-of-calendar-year campaign, no, there's a process in there. You have to build that relationship, inspire them, that emotional piece. I think going from transactional to relational, it's that emotional component, how do we make that emotional connection, not with us, but with our cause and our story, and get them to really step forward and want to be committed to making the change we're trying to make in the world.

Ann Fellman: Do you have any recommendations on steps someone could take? Okay, so I get that first gift, what are some of the things a nonprofit could do to deepen their understanding of that new crop of donors coming into their organization?

Chad Barger: I really try to just use all the channels. I might have a video with a beneficiary, maybe we'll send a handwritten note from somebody inviting them to something free where they can learn more. Even if they don't come, the mere fact that we're inviting them just kind of says this organization cares, they care about me, not just about my money. I've got to get that personal connection versus just the transaction. So it's creative touch points, whatever that is for your organization, and anytime you can actually immerse them in the mission, I call them immersive experiences, you can actually show them what you do, not just tell them about it, that counts like five to one right there.

Ann Fellman: Also just asking and surveying, and if you're limited on time but have a nice group of new donors, whether it's picking up the phone or doing a survey, find ways to have that initial conversation and find out what they're passionate about, what interested them in your organization. So, infrastructure, right tools and techniques, things we need to help us do this, especially if we're on the smaller side of an organization. But how do you, Chad, support a fundraising development director? How do you help them make the case internally to invest more in fundraising infrastructure and tools, to do this, when maybe leadership is really focused on programs or other aspects? What advice do you give there?

Chad Barger: Yeah, that's a hard one, especially if a CEO or somebody is coming more from the program side, something that hasn't actually done the fundraising. So I usually like, rather than trying to make the case, I try to create a small win. Let's get a quick win, something that if we put some resources behind it, we could magnify that times 10. So they already see it works, we already have the capability, we just need the additional resources, and that return is going to come pretty easily. So, like monthly givers, can we get the first five? Can we get five donors to do it? Now all of a sudden our CEO sees, well, there's $540 showing up in our checking account each and every month. Well, imagine if we actually had the tools and resources to take this to the next level, could I now have $5,400 showing up in the checking account every single month?

Ann Fellman: I love that kind of a bite-sized example or demonstration of an outcome that you could realize with some additional infrastructure investment or tools. Let's talk online fundraising and tactics. From your perspective, what do you think is the most underused online fundraising tactic that from your experience actually works?

Chad Barger: I'm going to say QR codes, because I find people use them but they don't use them to their full ability. We're really good at just throwing a QR code on our reply envelope that goes to the giving form, or putting it in things. I don't really understand why people put them in emails when I'd much rather have a link than do that. My favorite way to use a QR code is to put it in a mailed letter with a caption. It says something like, for a special message from Janaya, scan here. And the story in the letter was about Janaya and how your support helps her and whatever she's going through. Then you scan it, it goes to an unlisted page on your website, with an embedded YouTube video, it's Janaya, 30 seconds, she thanks you for your support, says what it means to her. And then immediately below that is the giving form. It's taken me right there, I'm inspired, the letter comes alive, and there's the opportunity to give. That's like level 201 with the QR code.

Ann Fellman: This is that delight moment too, and I love that you brought a letter to life with somebody's

Chad Barger: Uh-huh.

Ann Fellman: story. So that is a really good recommendation. So let's talk more tech for a second, hot topic AI, you touched on it a little bit, but let's dig a little deeper. What's your take on how fundraisers should be thinking about AI tools for nonprofits right now?

Chad Barger: My big thing is efficient and effective fundraising, and I think it's a huge tool to help with that efficiency piece, all kinds of back processes. All of our fundraising tools, like Bloomerang and everything, it's all integrated now, it's right there, it's easy to use, you don't have to be a coding master, a lot of it's just plain language now. So I think the excuses are kind of off the table, you have the tools. But for me, I don't love them being donor-forward. I still want that human connection piece. I know some of them are very good, they can do it, but they kind of have their tells, those kind of things. So I still want that human side. Again, how can we use these tools to automate and improve 80% of stuff so we can spend that other time actually building deep human connections.

Ann Fellman: I think that's great advice, AI as a great leveler, especially if you're lighter on staff or a smaller organization, and really, like you said, automating a lot of the back-office things, it can put some meaningful time back into your day. You've helped countless numbers of nonprofits raise more. I would love to hear about a nonprofit that you've helped that you're particularly proud of, what was the story, what was the situation they were facing, how did you help, and what changed for them?

Chad Barger: Rather than do one specific organization, I kind of talk about a case that I've seen happen multiple times. I get involved with a lot of associations that have a foundation, they do all this work and then they have like a small nonprofit arm, and it's kind of like when I come in, it's almost like the forgotten piece, nobody really wants to do anything with it, or it's under-resourced, they won't invest in it. I have several now where simply by getting leadership to buy in and understand what this can do, we've more than doubled what the foundation can raise for the organization. Now all of a sudden it's a key arm, it's like one of the legs of the stool, not just that thing over there. Your earlier question about getting those small wins and doubling down and investing in fundraising, that really is frequently the key, especially with some of these groups that have this fundraising arm over here that nobody's really paid good attention to, but can really be a key to take the organization to the next level.

Ann Fellman: Well, you have countless words of wisdom, templates, advice, and other things, but I would love for you to share with our listeners, for the nonprofits out there, when you think about your work and who you best work with, and also maybe talk a little bit about some of the resources and things you're doing. Can you just share who you're best suited for and what you have to offer from a resource perspective?

Chad Barger: Yeah, Productive Fundraising, productivefundraising.com. I have a free resource library, I do a free monthly webinar, all kinds of great content. So don't start from scratch, just go find a template, whether I have it, it's out there. The organizations I work with tend to be rather small organizations, a lot of times it's the executive director doing fundraising on top of everything else, or maybe there's one or one-and-a-half FTEs of fundraisers. So small shops, I do a lot of work with public libraries, museums, health clinics, and school district education foundations, those are some key verticals my work tends to align with really well.

Ann Fellman: So last question, you've been doing this quite a while, you're a fundraiser yourself, you're really accomplished, but what fuels you, Chad? What keeps you doing this work?

Chad Barger: It's really that end product, the work itself. We get so in the weeds of, I need to meet my goal, I need to get through this event. But when we can take a step back in this sector and look at the impact all of that work does, that's very different from the for-profit sector or other places, we truly drive change in our communities, our world. I don't care how bad the day is, we're still making that change. So that's what it's always been for me, just taking that step back, looking at the impact, and the over $200 million I've helped nonprofits raise at this point, what has that done? That has done a lot of stuff. And that inspires me to keep trying to do more.

Ann Fellman: That's great, it's every single step, every single effort does get to better outcomes and nonprofits filling huge community needs, great to hear your story. So Chad, before we wrap this up, we're going to play a fun game, our hot takes, a quick lightning round that I ask every guest on our podcast. So we'll just go through rapid fire, let's go with number one, Chad, what is the most underrated fundraising tactic?

Chad Barger: Handwritten thank you notes.

Ann Fellman: Most important fundraising skill.

Chad Barger: Willingness to always keep learning.

Ann Fellman: One word for the future of fundraising.

Chad Barger: Relational.

Ann Fellman: Okay, this is fill in the blank, the nonprofit sector needs more.

Chad Barger: Trained fundraisers.

Ann Fellman: Coffee or tea?

Chad Barger: Coffee, lots of it.

Ann Fellman: One word your team or your clients would use to describe you.

Chad Barger: Persistent.

Ann Fellman: That's Chad Barger, the chief strategist and owner of Productive Fundraising. If you're a nonprofit wrestling with raising more, Chad is exactly the type of person you should be seeking out and having a conversation with, or checking out all the great resources and templates at productivefundraising.com or Fundraiser Chad. Thank you for listening to Fuel Impact by Bloomerang. We'll be back soon with another fundraiser doing remarkable work like Chad for the sector. Until then, keep fueling your impact. Thanks for watching Fuel Impact. Subscribe for more real conversations with leaders shaping the nonprofit sector. Learn more at Bloomerang.com.