Acquiring & Retaining Millennial Donors: Part Two

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A while back, we wrote a post focusing on four ways to acquire and retain millennial donors. In order to provide the best advice we could, we drew from many of the best practices we had learned over the past two years, organizing our annual fundraising event in Boston, the Boston Fall Formal.

Our fundraiser is geared almost completely toward millennial donors, and has donated over $175,000 to Dana-Farber Cancer Institute in two years!

To help you and your team with your next fundraising endeavor, we thought we’d expand a bit on our fundraising experience, and provide you with detailed information on how we improved our contribution each year, while still keeping our donors engaged. To help guide our conversation, we’ve answered questions from a fellow fundraising host (thanks, Elsa!).

Q: How much of your total proceeds from the two years (about $175,000) came from ticket sales versus pure donations versus opportunity drawing proceeds?

A: This is a great question, and brings up an important point to keep in mind as you plan your next fundraising event. Depending on the type of event you hold, different cost components could include:

  • Venue Cost
  • Food / Drink Cost (higher cost for open bar)
  • Entertainment (band, DJ, photographer, photobooth, etc.)
  • Décor
  • Ticketing Processing Fees

When planning your event, it’s always good to have a detailed estimate of the costs you will incur. This level of detail will give you a better idea of what your final contribution to your charity will be and will also help you understand what you can afford for your event.

For our event, revenue broke down as follows:

Revenue Item Dollar Amount Percent of Total Revenue
Ticket Sales $185,000 67%
Sponsorship / Donations $72,000 26%
Opportunity Drawing Proceeds $20,000 7%

You’ll see that our revenue was well over our total proceeds of $175,000, meaning we incurred about $117,000 in costs over the past two years of our event! 

Q: What was the breakdown among corporate sponsorships and pure donations?

A: As with costs, we find it to be extremely beneficial to track all of your sponsorship and donation amounts.

Surprisingly, we did not solicit sponsors in the first year of our event, meaning all of our proceeds from donations were from individuals, not corporate sponsors. While we considered the inaugural event to be a success, we clearly had a lot to learn.

Using this lesson from our first event, we put a lot more effort into attracting and winning amazing sponsors. (You view our Ultimate Guide to Sponsorship here!)

Shifting our efforts resulted in a much different breakdown than in our first year, and as a result, sponsorship and individual donations were at about a 50:50 split – a huge improvement from our prior year!

Q: What was your retention rate from year one to year two?

A: Our high retention rate played a significant role in the growth of our event. While we were very happy with the new attendees we attracted in year two, the return attendees helped spread the word on the event, and continue to drive awareness up until the night of the event.

Comparing year two to year one, we retained about 58% of our initial attendees!

More to come on our tips for engaging these attendees, further down in this post.

Q: Do you have any thoughts on engaging millennials as straight donors instead of as event attendees? Fundraising events can be expensive – are they truly necessary to engage millennials in order to garner donations from them?

A: While it is definitely possible to generate straight donations from millennials, we’ve found that the key to acquiring and retaining millennial donors is to provide engaging and unique experiences. Millennials constantly seek connections to the causes they support, and one of the best ways to create this connection is by building a relationship / experience through a special event.

Some of our additional thoughts on engaging and retaining millennial donors include:

  • Get Personal – Tell the story of your cause, and how it has personally affected yourself and your committee.
  • Utilize Technology – Millennials are very connected. In order to gain their donations, you must be, too! For your next fundraiser, be sure to embrace mobile technology through donation pages, mobile silent auctions and raffles, and even email campaigns.
  • Embrace FOMO – Play into millennials’ fear of missing a great time. Promoting your event through social media, videos, and other digital media will cause those in your audience to fear that they will be missing a great time, further convincing them to engage with your event and support your cause.
  • Show Your Appreciation – This is a staple for all nonprofits and fundraising events. Don’t forget to thank your attendees and donors for their contributions – this is their hard-earned money that you are asking for, after all!

Finally, while we do think that fundraising events are one of the best ways to engage millennial donors, this does not mean that you need each attendee to join your event each year. By putting together thoughtful email campaigns, social media updates, and utilizing mobile technology, you can keep your initial attendees engaged, even if they may not attend your event, or if you’re not planning on holding one each year.

  • Email Campaigns & Social Media Updates – Both of these tools are great ways to update your audience. We use these mostly to:
    • Update donors on progress made from our fundraising event.
    • Provide any updates that the organization or cause you support has made.
    • Thank your donors and attendees for their support.
  • Mobile Technology – Mobile technology allows you to reach your donors throughout the year, regardless of their geographic location or the timing of your event. With tools such as donation pages and mobile silent auctions and raffles, you can promote your cause or organization anytime throughout the year, and can reach a large potential donor base of people who may not be able to attend your physical event.

These elements combine to create a connected approach to fundraising that will keep your donors in the loop and donating year after year.

Conclusion

After reading this post, we hope you have a more detailed view into the numbers behind running a fundraising event. We’d love to answer some more questions, so ask yours in the comments section below!

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Written by Zach Hagopian

Zach is the co-founder and COO of Accelevents, a mobile fundraising platform that enhances silent auctions and raffles through online and text-message bidding.  An active member in the Boston fundraising scene, Zach focuses on improving traditional fundraising methods and increasing fundraiser proceeds.

Connect with Zach via:
Twitter | Facebook

Guest Post: 4 Ways to Acquire and Retain Millennial Donors

 

4 ways to acquire & retain millennial donors

As many of you know, millennials are quickly becoming one of the most coveted groups in the fundraising community!

But why is this demographic so important to fundraising?

According to the 2015 Millennial Impact Report, a whopping 84% of millennials made a charitable donation in 2014. There is immense value in acquiring donors early (at the millennial age) and building a relationship in order to create lasting value for your organization.

While capturing millennial donors will surely help your nonprofit organization, many NPOs and fundraisers struggle to acquire and retain these donors.

That’s where I can help!

My background? I am a millennial with strong ties to the Boston fundraising community. Most recently, I have spent the past two years organizing a fundraiser geared completely to millennial donors. In our first year, we attracted 850 guests and raised over $65,000 for the prestigious Dana-Farber Cancer Institute.

In our second year, we raised $108,000 from over 1,000 Boston-area millennials and young professionals.

Learning from this experience, I’ve put together a list of my four best tips for acquiring and retaining millennial donors. Enjoy!

#1 — Get Personal

Our first tip is to get personal with your potential donors – tell the story of your cause and how it personally relates to your experience.

While inclined to donate, millennials are seeking stories they can identify with. Affinity in values and social responsibility are extremely important for this group,whether it’s the restaurants where they eat, the stores where they shop or even the organizations they support.  

Conveying your story in a meaningful way will get you in the door with millennials, and the rest will be history!

#2 — Utilize Technology

One thing that we can all agree on is that millennials are very connected.

Whether we are checking our iPhones every 30 seconds, or sneaking a look at our Facebook news feed during a conference call, we millennials have the means to find and share any information instantly.

And fundraisers / nonprofits should be using this to their advantage!

In today’s world, millennials are willing to donate to charitable causes, but want to do so on their terms, which means embracing easy-to-use and accessible donation tools.

These can be anything from donation pages to mobile silent auctions and raffles and peer-to-peer fundraising campaigns.

Regardless of the tools you decide to help you move forward, embracing technology will allow you to offer millennials a much easier channel for them to donate anytime they’d like.

#3 — Embrace FOMO

Our next tip is for your organization to embrace one of the strongest emotions felt among millennials – THE FEAR OF MISSING OUT (aka “FOMO”). When used with online and social fundraising methods, FOMO can become one of your best tools for millennial acquisition.  

The key here is to hold your donors socially accountable. Did your supporters just buy tickets to your next fundraising event? Has one of your donors just made a donation to support your cause? Provide them a means to share this to their social network!

When your donors share updates about your cause, they will be helping you acquire new donors, as these potential supporters will witness all of the passion and excitement around supporting your cause.

#4 — Show Your Appreciation (with a twist!)

Traditional methods of thanking your millennial donors work great, but your thank-yous are even more effective when you can add a twist!

One of our favorite examples of unique acknowledgements for millennials is Creating a Sizzle Reel.

Did you just wrap up a great fundraising event or have your best year ever in terms of donations? Spend some resources to create a great video or “sizzle reel” to share with your audience. An exciting video will stand out against the hundreds of emails your audience receives each day, and it’s also a great piece of content for your donors to share out to their networks!

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Written by Zach Hagopian

Zach is the co-founder and COO of Accelevents, a mobile fundraising platform that enhances silent auctions and raffles through online and text-message bidding.  An active member in the Boston fundraising scene, Zach focuses on improving traditional fundraising methods and increasing fundraiser proceeds.

Connect with Zach via:
Twitter | Facebook

Guest Post: What Can Starbucks Teach Us About Fundraising?

 

What can Starbucks teach us about (1)

Today as I got my morning cappuccino, I noticed Starbucks is running a huge promotion – centred on buying beans, K-cups, syrups, cups and taking the Starbucks experience home.

Why would they do this? Isn’t the whole concept of drinking coffee at home Starbucks’ competition? Don’t they want me in their stores?

It’s because Starbucks has figured out something many charities haven’t tapped into yet: When you like something, you like doing it in different ways, and at different times.

I love going to Starbucks in the morning. I love chatting with the barista about my day as I grab my cappuccino. But I also love a cup of coffee in the office, a quick K-cup jolt in between staff meetings. I love a cup of decaf at 8 pm, enjoyed in my pajamas, on my couch. Having options makes me drink more coffee, not less.

If Starbucks was run like a charity, this promotion might not have happened. The director of In-Store Sales would be at the throat of the Director of K-Cup sales. “Those are MY customers, they come in the store every day – they get to know the baristas! It’s about relationships! K-Cups are a dumb fad you millennial idiot”… “No! In-store sales are dead! Convenience is the thing! K-Cups are the way of the future! MY customers want convenience, you dinosaur.”

As funny as that is, it is a sad reality for many charities – with annual giving, events, major gifts and planned giving all fighting over donors. “You can’t talk to event participants about monthly giving!” “Hey planned giving, back off my mid-level donors, you’re making them uncomfortable.” “Get out of here major gifts, no one invited you, you glory hog.”

It makes me sick.

When did we start thinking of this as a competition?

When did we become so entitled?

When did we start thinking we owned our donors? Like they are our property?

They are not YOUR donors, you are THEIR charity.

That means you have a responsibility to put aside the egos and the silos, and do what is best for the DONOR. You need to trust each other enough to help one another, and to make smart decisions about how to offer your donor the chance to give and be involved in all the ways THEY choose.

Because if your donors love your cause – the way I love coffee – they are going to choose to give in different ways, at different times and in different amounts.  Good customer service means you make sure those options and choices are there – when THEY want them.

Do you want to:

  • Understand how to overcome internal silos within your own organizations
  • See how four different organizations are leading the way in breaking down silos, driving integration, and thinking differently about their fundraising programs
  • Learn different strategies that you can incorporate into your own work to help address silo challenges in your own organizations

Then sign up for this webinar today: Breaking Down Silos: Great Ideas that Drive Integration & Results!

Out of the box creative is more than just a crazy concept from your Creative Director – creative innovation can help you connect with new audiences, help cement your relationships with the donors you already have and drive increased results. See how informed strategy and inspiring creative helps you to innovate and truly integrate channels and messages that resonate with your target audiences. See how you can break down internal silos and drive results for your own organization!

Seats are limited! SIGN UP NOW!

This post originally appeared on the GoodWorks Co Blog.

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Written by Rory Green

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Rory is a Senior Development Officer by day, and FundraiserGrrl by night. As a major gifts fundraiser, she connects donors with an opportunity to invest in a better future. FundraiserGrrrl is a blog about her cheeky observations about life in fundraising.

Connect with Rory via:
Twitter

 

 

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**SPONSORED POST** Email maeve@whatgivesphilanthropy.com for more information about advertising on www.whatgivesphilanthropy.com.

Guest Post: Storytelling and the Next Generation of Donors

Storytelling & the Next Generation of

As fundraising professionals, we face a constant challenge – we need to raise money. Right now, many organizations are starting to wonder how generational transitions will affect fundraising. In other words – as Millennials start to donate more, how will their preferences influence our fundraising programs?

Should we be using Snapchat? Will email still work for us? How will we get ahold of Millennials since none of them have landlines?

Perhaps some of these questions sound familiar to you. Up until last October, I would have said that you were right to think about these questions. But then I attended bbCON and Chuck Longfield shared a piece of data that rocked my world.

The average age of a new donor in 2014 was 51. That’s right, 51!

It makes sense of you think about it. Someone in the earlier 50s likely has more disposable income than say someone in their late 30s. Thus at 51, a person might be looking to become a first time donor to an organization.

How does this information influence our fundraising strategies to acquire Millennial donors?

You don’t need to abandon your plan to acquire Millennial donors. You do however need to be prepared to play the long game. Organizations should strategically focuses on engagement, so that when that donor is able to make a gift your organization will likely be top of mind.

Engagement is kind of a tricky word. The key to making the most of it is to define the various stages of engagement someone can have with your organization. In other words, how does someone go from not knowing who you are to being a loyal donor?

In the instance of Millennial donors, this likely won’t happen in one fell swoop. It is prudent to figure out what the various stages of the relationship are leading up to that donor making a gift. Then the task of moving them between those stages.

Unlike older generations of donors, Millennials have a desire to understand their impact, to feel like they are part of something meaningful, and contribute to a reputable organization that speaks their language. One way that non-profits can achieve all three of these things is by cultivating relationships through communications, and specifically by telling stories.

Stories naturally demonstrate impact in a tangible way and when they are told well, they make the reader feel like the hero. During a recent project I worked on with a client, we did extensive content analysis to understand the differences between Millennial, Gen Y and Boomer donors. What we found was that Millennial donors tend to respond best to stories that are inspiring and have a positive vision for the future. These stories don’t try to guilt the reader into donating, nor do they sound “doom and gloom.” As we analyzed the stories that Boomers responded to, what we found basically the opposite.

What’s the key takeaway from all this? Engaging Millennials through fundraising and communications requires a big shift in messaging. Look at your appeals over time. What are the messages that come through? How have your donors responded? What was their demographic? Use these questions to do your own content analysis to find the right message that will resonate with Millennial donors.

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Written by Vanessa Chase

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Vanessa Chase is the President of The Storytelling Non-Profit – a consulting group that specializes in helping non-profits raise more money through communications. You can find out more about her and non-profit storytelling on her blog.

 

Guest Post: Not Your Momma’s Fundraising — The New Must Have Skill for Fundraisers

Not Your Momma's Fundraising - The New

Graduation season is in full swing, and with it comes an endless parade of advice (solicited and unsolicited) for grads entering the workforce.

For fundraisers, much of this advice centers on relationship building and the art of conversation. Good skills to master for aspiring fundraisers, to be sure.

But in our connected society, there’s an often overlooked skill that can help the new generation of fundraisers conquer the brave new world of online fundraising.

That skill? Data-crunching.

Check out this SlideShare presentation from WeDidIt that explores this new, in-demand skill, and what actions fundraisers can take to be P.D.D.D. (“Pretty Damn Data-Driven”).

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Written by Andrew Littlefield

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Andrew is a marketer and nonprofit fan for WeDidIt, a startup based in Brooklyn, New York dedicated to helping nonprofits raise more money and reach new donors.

Connect with Andrew via:
Twitter |  WeDidIt Blog

Guest Post: Five Must-Haves for Online Fundraising Success

Almost every nonprofit organization has embraced the Internet to help spread awareness for their cause, gain supporters, and raise money through online donations. When looking at the online fundraising campaigns that achieve the greatest success, they seem to include five critical elements.

  1. Enhance Digital Efforts & Go Mobile
    People are spending a greater amount of time online each year. In fact, over 11 billion searches are conducted each month on Google alone. Just like any business with an online presence, your organization not only needs a website, but it should include some important elements: simple, clear messaging, easy navigation, and, with more than 80% of internet users also using a smart phone, mobile optimization is key. By using fundraising software, such as DoJiggy, you can easily build a mobile-optimized fundraising website to manage all details for your fundraising event including: registration & ticket sales, collecting online donations, progress tracking and reporting.
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  2. Pay More Attention to Social Media
    Today more than 55% of Americans have social media profiles presenting a unique opportunity for the non-profit sector. Social media gives nonprofits an easy way to reach out to their donors, build and nurture relationships, and communicate news and updates. Facebook and Twitter are staples in the non-profit world. But remember it’s not just being present…it’s engaging. Don’t just post about your own charity, but find other organizations doing similar things and help them spread the word – retweet, share their posts, and chances are they’ll return the favor. Don’t forget about other networks that are rapidly growing, like Instagram and Pinterest which give you a unique opportunity to share visual imagery and attract more people to your cause. LinkedIn and Google Plus are also great ways to connect with other communities and talk to your peers.

  3. Communication Tactics to Engage with Different Generations
    When thinking about communication efforts, be sure to consider how your message will reach different generations. Some older donors may prefer letters sent in the mail, email newsletter updates, or personal phone calls. Keep in mind that in just a few short years, Millennials will make up the largest portion of the workforce, thus controlling a large portion of funds, and therefore will be critical to your fundraising success.  This generation relies heavily on the information they find on the Internet. They engage via social channels so be sure to have a presence here and give them the tools they need to share. They also look for organizations to be open and transparent, so including testimonials could be a nice tactic.pic2
  4. Free Online Resources for Participants
    In this day and age where information is so accessible, people are always looking online for help. By offering helpful fundraising resources to your supporters, you not only show them you care, but you can actually help them perform better – which results in greater success for your charity. Offer fundraising check-lists and timelines to help them plan. Offer tips for soliciting donations or sample donation request letters. Post short videos that explain more about the cause and give them sample pitches to use so they are prepared when they seek donations. You can even offer some stock images for people to use in their social posts or sample “tweets” for them to simply copy and paste when sharing your message.
  5. Analyze Metrics & Make Improvements
    Evaluation has always been an important part of any fundraising campaign. Yet, finding actual statistics used to be much more of a challenge. People distributed surveys or estimated attendance for events. Today data is easier to come by than ever before. Using tracking and analytics tools, like those included with DoJiggy’s fundraising software, allow your organization to better understand your donors and the results of your fundraising efforts. Did more donations come in from email campaigns, social sharing, from sponsor sites or blog posts? You can also use data to find out what your prospects are interested in. By looking at Social media, you can see which posts get the most engagement, likes, and clicks. Use this information to help with your future branding and messaging.

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Written by Kari Kiel

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Kari Kiel is the Marketing Director at DoJiggy – a company that’s been providing affordable, easy-to-use online fundraising software solutions for nonprofits, schools, churches & community organizations for more than a decade. www.DoJiggy.com

 

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**SPONSORED POST** Email maeve@whatgivesphilanthropy.com for more information about advertising on www.whatgivesphilanthropy.com.

The 5 Most Interesting Things I Learned on Day 1 of #AGCongress14

 

the 5 most interesting things I learned on day 1 of #AGCongress14

Ideally I would save this blog post for next week, but my sanity relies on routine, so I’ll stick with my regularly scheduled “every other Friday at 10:00 a.m.”.

What’s today’s post about? Well, right at this very moment I am in a session called “Picasso & Edison: Learn how to be both an artist and scientist in today’s fundraising world”, led by Samantha Laprade, CFRE (a.k.a. @GryphonReport). No, I am not blogging in front of her rather than paying attention to her session! I am writing this post from the comfort of my hotel room in Toronto on Thursday at 5:00 pm. I have just attended Day 1 of the 2014 Canadian Higher Education Annual Giving Congress in Toronto a.k.a. #AGCongress14. Yes, it’s me and dozens of other Annual Giving nerds talking about what we do and how we can be excellent at it. I’m in heaven!

So on that note, today’s post is the five most interesting things I learned yesterday on Day 1 of Congress. Here goes…

  1. STOP! Be stupidly creative. The very inspiring Joel Faflak of Western University started the day off by telling us to stop doing what you’re doing and do something mindlessly creative. Draw, see a musical, do something! Our creativity is being threatened by the business of our every day work, but we can’t stop cultivating it.
  2. Don’t solicit young alumni with the traditional academic segmentation. My friend Ryan Brejak of the University of Guelph (and a guest blogger for this site) delivered a great session on young alumni giving and stressed that millennials need to be segmented differently rather than by their faculty. Segment them by the non-academic affinities they have.
  3. Why would they care? I attended a panel about “How to Write for Development” and asked them what’s more important in a fundraising letter, to emphasize need or success. Chuck Chan of University of Toronto replied that it’s most important to focus on why the reader would care about this. Would they care about a dilapidated building, or would they care about what’s going to happen in a new one?
  4. There are three types of donors. I attended my mentor Paul Nazareth‘s session about planned giving and he outlined three types of donors: (1) the DNA donor, where giving is in their DNA, and so is your organization; (2) the academic, who values your institution because of how they turned what they learned into success; (3) and the trouble makers and weirdos who had a great time at your institution who will give back because of their experiences.
  5. Everyone should be an annual fund prospect all the time. The last session of the day was led by two fundraising powerhouses: Lorna SomersBob Burdenski. They talked about the worlds of major giving and annual giving colliding, and Lorna stressed that major gift prospects/donors should never be taken out of annual solicitations. They should always receive the calls, direct mailings, etc. and major gifts should “opt out” of this if really necessary, whereas the default will be that they’re solicited annually.

What a great day Day 1 was. I bet I’m already energized by Day 2 and it’s only 10:00 a.m.

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Written by Maeve Strathy

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Maeve is the Founder of What Gives Philanthropy and has been working in educational fundraising for the past seven years. Click here to learn more about Maeve.

Connect with Maeve via:
Twitter | LinkedIn | Email

Barista to CEO: Young Constituents

Barista to CEO-Young Constituents

I had the great privilege and pleasure of seeing Penelope Burk speak recently. More than just speak, she presented the latest findings of what she’s known for: the (in this case, Canadian) Burk Donor Research Study.

What stood out for me was when she commented on an area of interest for me (as evidenced here… and here): Young Constituents.

When it came to this group, Burk shared that:

  • They have a lower capacity to give (often due to student debt)
  • When they do give, they give larger amounts to fewer organizations (younger donors believe that these gifts make a bigger difference because they keep the cost of fundraising down and the impact on the organization up)
  • When they give, they are active donors; they actually want to be involved in the activities of your organization

Here’s the rub: the attitude of an active donor is being highly undervalued, and passive donors (who give with little expectation/involvement) are – forgive me for being blunt – dying out, and will likely not be giving in seven years.

What does it mean to be an active donor??? As I said before, it means these donors want to be involved. It also means they will encourage their social networks – online and offline – to get involved as well. They are influential; not in their capacity to give as much as their ability to connect others to an organization. And – this is where I might get your attention – they will have a capacity to give significant gifts soon.

As Penelope Burk said, these young people are baristas… and baristas… and baristas… until suddenly they’re CEOs! And, as my mentor Paul Nazareth added when I had a coffee with him a few weeks ago: while they’re working as a barista, they’re working on their start-up company on the side…

We cannot ignore our young constituents!

This is all I’ll say for now, but stay tuned, because in honour of the 3-year anniversary of www.whatgivesphilanthropy.com, I’ll be making an announcement on November 21st about a new initiative. I can’t wait to share it with you!

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Written by Maeve Strathy

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Maeve is the Founder of What Gives Philanthropy and has been working in educational fundraising for the past seven years. Click here to learn more about Maeve.

Connect with Maeve via:
Twitter | LinkedIn | Email