WEBVTT
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This program is designed to provide general information with regards
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to the subject matters covered. This information is given with
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the understanding that neither the hosts, guests, sponsors, or station
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are engaged in rendering any specific and personal medical, financial,
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legal counseling, professional service, or any advice.
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You should seek the services.
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Of competent professionals before applying or trying any suggested ideas.
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Hello, and thank you for tuning in to a Sharp
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Outlook on pay for HD Radio and Talk or TV.
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I am Angela Sharp. Your host our arm chair discussions
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with industry experts will give you the steps, tools and
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information to be successful in business and to prepare you
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to be your best self.
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Hello, I'm Angela Sharp, and welcome to a Sharp Outlook.
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We're going to have them one of those shows that
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you're going to need some paper, You're going to need
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a pencil, because we have some real golden nuggets to
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give you today that's going to help you ask people
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for the money. Nonprofits typically work towards goals that benefit
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the public. These goals might include advancing education, leaving poverty,
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or promoting health. Nonprofits often need to engage in a
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range of activities to ensure they have diverse revenue streams.
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This allows them to remain financially stable and continue working
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towards their mission even if one source of the funding
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fails through falls through. It's part of the complex and
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challenging world of the nonprofit finance. In twenty twenty six,
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fundraising is defined by a shift toward intentional giving, where
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donors prioritize trust, transparency, and meaningful local impact over mass
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market appeals. The donor cloud includes people that are ready
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to give. What is the donor cloud? It refers to
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the ecosystem of supporters surrounding an organization, ranging from core
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insiders to those in broader digital networks. Our guest today
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will be providing information on this method of giving and
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how to tap into the money flow. Our guest today
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is Daniel Johnson from Next Level Nonprofits dot US. Daniel
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is the founder and chief consultant of Next Level Nonprofits
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also known as Next Level Nonprofits US, a consulting firm
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based in North Carolina as of twenty twenty six. As
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work centers on coaching nonprofit leaders and business owners to
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build sustainable organizations. His core methodologies include the five levels
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of Sustainability, which He's going to go through a framework
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designed to guide new nonprofit leaders from dy do it
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yourself mode to long term impact. The Sustainable impact cycle,
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one of four mindsets of encourages leaders to adopt to
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ensure their mission remains viable. Strategic fundraising specializes in He
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specializes in helping small nonprofits secure unrestricted funding, which we
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all know how much that is needed, moving them away
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from a reliance on shoe string budgets or inconsistent grants.
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His executive experience, he is a four time nonprofit founder
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and former executive director advocacy and leadership. He previously served
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as the national director for the People Against the NDAA,
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grew a nonprofit to ten thousand volunteers, and held leadership
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roles as Students for Liberty and the Americans for Prosperity Foundation.
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He's been very involved in nonprofits. Daniel has been featured
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in outlets like CNN, The Chicago Tribune, in the New
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York Times for his work his impact evaluation and nonprofit growth.
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And I would like to invite Daniel to the show now,
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and we want to hear about all these wonderful, wonderful
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opportunities that are available, but they just don't know how
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to ask for the money.
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Thank you for having me on angeln and I really
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appreciate being able to come on the show and talk
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about a challenge that whether you are a nonprofit leader
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right now or you have experienced in the past, a
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fear and a not understanding how to ask for money.
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I want you to learn one of the most powerful
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skills that you can to create change, which is to
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get other people to give you money to actually make
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that change happen. If you're a nonprofit, you probably currently
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are relying on grants and maybe a fundraiser. Things that
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stand between you and the person you're asking for money,
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whether it's a grant application, whether it's the food that
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they purchase, an auction that they buy, and stand in
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the way of you developing the relationship with the donor
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that leads them to give you the unrestricted funds. If
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you are an individual listening to this show and looking
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to raise money, you probably fear talking to people about
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the cause that you care about. Whether you're a board
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member of a nonprofit or whether you're trying to raise
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a GoFundMe. You probably post it on social media. You
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may have told a few friends and family about it,
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but you're really not sure. How do I respectfully, ethically
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and effectively ask the people around me who I think
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might give me money for money? And that's we're going
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to cover in the show.
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Oh absolutely, you know you mentioned board members. I know
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a lot of times the board members, you know, kind
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of take on the ambassador role and they contact their
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contacts and reach out to assist the nonprofit that they're
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on the board. So that makes me ask the question
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when you select a board, should should you know what
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kind of connections that the board member has so that
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you know they can be a major factor in the
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in the fundraising and be effective in fundraising.
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Well, let's let's speak to that for a second. Whether
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you're sitting on a board right now or you're a
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nonprofit leader who is looking at selecting a board to
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help you with your fundraising. Remember that there are three
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top fears in life. They are death, public speaking, and
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asking people for money. So in most cases, you're probably
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not going to be able to find a board who
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wants to go out and ask for money. Maybe you'll
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have them watch this broadcast and learn how, but in
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many cases your board is not going to want to
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go out and ask for money. So who you're looking
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for to join your board or your advisory board are
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people who have connections in the community, people who believe
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in your cause, people who provide something interesting to the
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organization and bring some expertise or skill set to the table,
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maybe even potential donors. But I wouldn't go so far
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as to think that your board members are going to
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raise money for you. In most cases, that is what
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makes nonprofit stuck. It is assuming that they're board members
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with no training, no skills, are going to go out
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and just ask for money because they have it or
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because they know people who do. It's not how this works.
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And what your board members are most likely to do
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is help make connections and then you step in and
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ask for the money.
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Okay, great, great, Well that that kind of takes that
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off the board.
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And like, let's explore this right. This is why so
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many nonprofits introduce trinkets into the conversation. What's a trinket.
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A trinket is something that you offer that's not the
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impact that your nonprofit is making, or not the impact
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of the cause on the world. To try to entice
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somebody to give you money. A trinket could be an
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item at an auction. A trinket could be a fundraising dinner.
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A trinket could be a bake sale. It is something
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that says, we don't believe enough in the impact we're
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making as an organization, and we don't believe that's worth money,
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and therefore we're asking you to buy this thing and
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we'll take a little bit of money off of it.
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When you set your board in a position where you
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expect them to fundraise for you instead of you learning
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that skill yourself, that's the kind of fundraising that you're
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going to end up with. And trinket fundraising raises trinket money.
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Right, that's not going to meet the mission for the year.
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That's definitely for sure. Oh my goodness. Well, you know,
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some of the people you know that began their fundraising,
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they usually kind of rely on past donors, and so
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they go out and they try to find digging through
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files and stuff, who was giving money five years ago,
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ten years ago, fifteen years ago. You know, they're going
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way back into files, you know, to find those laps donors,
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you know, to see if they can reactivate their interest
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in the mission alignment. What do you think about that?
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I think past donors are some of your best people
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who can give you insight on the organization, who can
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give you insight on why they gave in the first place,
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and who might have been dropped off and people stop
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contacting them. Maybe that's why they stopped giving. Those are
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a great place to start looking for potential donors as
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long as you approach them, right.
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Okay, so they should circle back and try to find those.
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Well, think about it, right. If you're in business, your
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best customer is who the person who's already purchased from you,
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That is your best customer. Right. If you're in nonprofits,
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these are people who have already given, which means they've
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already qualified themselves. They've already indicated their interest in your cause.
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Now you need something to inspire them to give again.
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You need something to excite them, to get them off
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their chair, to show that you're not the same organization
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that let them lapse last time. But past donors are
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right up there with current donors as this is where
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you would start looking in your donor cloud.
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Okay. So, so some of your projects are reached through
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like peer to peer. You know campaigns where eighty percent
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of contributors are often new to the organization. This also
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includes corporate partners and employees through payroll giving and matching,
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gift programs and things like that. You know, are those good?
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Are those programs helpful?
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So here's here's how I want someone who is not
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asking people for money. Right, so, they're going after grants,
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or they are holding fundraisers or whatever. They're not asking
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people directly for money. And in a time when federal
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grants are no longer as reliable as they were, are
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exploring this area to start asking people for money. The
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first thing you need to do is identify your donor cloud. Now,
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your donor cloud are is the name we give to
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the people around you who love what you do, and
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if you were able to give them something inspiring to
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be a part of something specific, they might be willing
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to give to your organization. Your donor cloud includes, first
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and foremost, the people you and your board members know.
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You and your board members know. It includes your current
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and your past donors. It includes the vendors that you
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work with as an organization and the companies that you
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do business with. It includes the the connections that each
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of you has into the community. There's a number that
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represents the number of connections that most people have at
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least and it's called Dunbar's number. Dunbar's number says that
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the average person can only remember the names of one
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hundred and fifty people. But that's one hundred and fifty people.
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And so if you have a board of three plus
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U in many cases, small nonprofits have a bigger one
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board of three plus U. And you know, we usually
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do brainstorming sessions with those boards to come up with
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their donor cloud. You'll come up with between forty and
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one hundred names. You add that to your current donors
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or your absolute best people to go and talk to
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about raising money, and your past donors we're your second
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best people. You should have two hundred to three hundred
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names if you've been around for a few years as
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an organization, that you can start engaging and involve in
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the mission of your organization. If you're able to develop
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two or three hundred in your average donor cloud's probably
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around two or three hundred names. You're able to developed
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two or three hundred names, and only ten percent of
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them give you one thousand dollars or more. Guess what
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you just raised twenty to thirty thousand dollars on your
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first campaign.
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I never thought about that donort cloud being people that
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are already in your circle's that's very interesting.
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Can I relay an experience? Because we just had this
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ice storm, right, this icemageddon or whatever it was going
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to be. Right, So in Raleigh, we were supposed to
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get the worst of it. I mean, we were supposed
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to get half an inch to three quarters inch of
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freezing rain. Power was going to go out. Everybody was
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going shopping. Well, I thought we were prepared. We had
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a propane heater, we had food, we had water. We
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bought a little of milk because we have three kids,
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and my god, the screams if we could not get milk.
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But we realized a day before the storm was supposed
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to hit, Oh, our propane tank doesn't fit our propane here.
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Uh oh, So now I have to go find one.
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And the first thing that I did was, you know,
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looked around at Amazon and all these different places where
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you thought it would be, and it wasn't there. Right,
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And then I put on my big boy boots and
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as ashamed as I was of the fact that we
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were not prepared for the storm, as the man of
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the family, I went door to door in my neighborhood
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and started asking people if they had a propane tank.
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And this tells you one of the most important things
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about why you start with the people closest to you.
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I started with the neighbors who knew us, and all
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of the fear and shame and doubt that I had