Tag: stewardship

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August 9, 2011 DonorDreams Fundraising

From the mouths of donors: Part 2

Again … the survey was anonymous because I wanted the truth, the whole truth and nothing up the truth. Here is what the today’s highlighted survey respondent said:

Question: Using the comment box below, please write a paragraph or two answering some of the following questions. Of the charities to whom you currently donate money, which one is your favorite? How did you first learn about this charity? Why did you make that first contribution? Why are you still contributing? How do you know that your contribution is making a difference? What does the charity do to demonstrate it is having an impact?

Answer: My favorite Charity is Boys & Girls Club of Elgin. I am still contributing to BGCE because they keep the kids off of my lawn.

Question: Understanding that these are tough economic times and no donor’s contribution ever should be taken for granted, what does your favorite charity need to do (or show you) in order to renew your support and/or increase the size of your contribution?

Answer: I know it is a buzz word, but “sustainability” [is something I want to see in order for my gift to be renewed]. I mean that in a holistic sense. Can they find the next great CEO, can they keep up the good fundraising work, and can they take their fundraising to the next level?

Hmmm … how interesting that this donor is looking at their charitable contribution as an investment? Here is what struck me about these responses:

I am reminded that every donor has a unique reason for giving, and it doesn’t always match-up with your marketing and stewardship messages. Here is where listening to your donors might allow you to become a more donor-centered organization. I bet this donor would love to see some outcomes data on how after-school programming reduces juvenile delinquency and improves school behavior and performance.
In this donor’s second response, I am reminded that one reason organizations that are seen as being “poorly run” (and I am looking at both board and staff) don’t do as well with fundraising because donors don’t like to throw their money away.

How does your organization demonstrate sustainability to donors? What tools do you use to measure and then report your organization’s health? Do you track how successful these tools are? If so, how did you do that? Please use the comment box below to share because we can learn from each other.

Here is to your health!

Erik Anderson

Owner, The Healthy Non-Profit LLC

http://www.facebook.com/eanderson847

August 5, 2011 DonorDreams Donor-centered fundraising, Fundraising

Friends With Benefits?

Have you ever read a blog post that bothered you so much that you saved it in your email inbox? It happens periodically for me, and this phenomenon occurred two weeks ago with a blog post from Jeff Brooks who writes Fundraising Future Now.

So, there I was drinking my morning coffee and clicking through emails on July 27th, when I came across Jeff’s blog titled “Not all donors are seeking a deeper connection“. Since I consider myself a “disciple” of Penelope Burk (thought leader behind donor-centered fundraising ^TMand author of Donor Centered Fundraising), my first response to the blog’s headline was “WTF?” Then I clicked open the email and read this:

“We should be prepared to admit that not all donors are as absorbed in our causes as we are. Some of them — maybe most of them — just want to give and be done with it.”

Looking back on the moment, I have to laugh at myself because I was genuinely disturbed and almost had the same reaction as the person in this YouTube video. However, I composed myself and hit the button titled “Mark as Unread” and stewed about it for this long.

I’ve come to this conclusion: Sometimes the human experience allows us to get swept up into an idea so much that it becomes a truism to us (much like Penelope Burk’s idea of donor-centered fundraising ^TMhas become for many fundraising professions).

Even though I’ve come to this conclusion, I still love Penelope Burk and all of the donor research she conducts and shares. I think I’ll even remain in her camp for a little while longer. However, I think I’m going to rent the DVD of Justin Timberlake’s movie “Friends with Benefits” and do some research over the course of the next year. I am open-minded to Jeff Brooks’ hypothesis about some (possibly many) donors only loving your non-profit mission enough to toss you a contribution from time-to-time.

Until I sort through this philosophical fundraising mess, I guess I am going back to the only truism that hasn’t steered me wrong, which is:

“KNOW THY DONOR”

Are you a Penelope Burk disciple? What is your reaction to Jeff Brooks’ blog post? If you run a non-profit organization or interact with donors on a daily basis, what are your thoughts? How do you walk the fine line between donors who want to get married and those who only want to be friends with benefits?

Here is to your health!

Erik Anderson

Owner, The Healthy Non-Profit LLC

http://www.facebook.com/eanderson847

July 13, 2011 DonorDreams Donor-centered fundraising

The big stewardship mistake

Oftentimes, I’ve been told by non-profit organizations that they have limited resources and cannot implement a donor-centered communication program to steward their donors. After trying hard not to roll my eyes, I find myself forcing a smile and encouraging them to segment their range of gifts (ROG) chart and get as personal as possible (e.g. handwritten notes, periodic phone calls, and a face-to-face visit or two) with their largest donors. This seems to work and it moves them in the right direction, however …

It was not the BEST advice I could have given them!

Penelope Burk says it best on page 111 of her book “Donor Centered Fundraising“:

“Which donors need the most diligent investment from you? The answer is the ones whose loyalty is not yet secure, the ones whose current affiliation with your not-for-profit may still be tenuous. And who are they? They are your first time donors, those new contributors who demonstrate the highest rate of attrition between the first gift and the next ask.”

So, if I could go back in time or hit the “do over” button, I would tell those non-profit and resource development professionals to get really personal with the top 10% or so of their ROG chart. The after taking a cleansing breath, I would double down and tell them to put together a special stewardship program for first time donors. And by special, I mean more than just the typical gift acknowledgement letter and flurry of newsletters. Here are just a few crazy ideas I’ve had:

Create a special Donor Recognition Society for first time donors with a bunch of special “courtesies”.
Host a special town hall meeting (b/c I just hate “open houses”) for first time donors to hear first hand, witness and participate in mission-oriented messages and activities. This should help them see exactly what they have invested in.
Develop a donor communications series aimed only at first time donors with testimonials from larger, very influential donors talking about their excitement about various ROI success stories and their sense of fulfillment as a donor.
Institute a policy that all first time donors get a phone call from a board volunteer somewhere between three and six months after a donor’s first contribution. This phone call should include ROI-based information as well as the offer to answer any questions the donor may have. It would also be a nice touch to ask the donor if there is any feedback they might have for the non-profit and if there is anything they might want to get involved in.
Host a quarterly focus group session with first time donors and report the results and findings back to all first time donors.

And the ideas can go on and on … what do you do to help retain first time donors? How successful have you been at retaining first time donors? Please feel free to add onto the list of ideas that I just started by using the comment section of this blog. We can all learn from each other.

Here is to your health!

Erik Anderson

Owner, The Healthy Non-Profit LLC

http://www.facebook.com/home.php#!/profile.php?id=1021153653

July 12, 2011 DonorDreams Donor-centered fundraising

Beyond newsletters

My last two blog posts have been about transitioning your boring, ineffective newsletter into something more “donor-friendly” and effective. Today, I will attempt to put a cherry on top of this “donor-centered” sundae, but talking about those things that non-profit organizations need to do IN ADDITION TO just mailing a newsletter. Again … I want to give credit where credit is due. Penelope Burk is the author of “Donor-Centered Fundraising” and she does a much more eloquent job of discussing all of this in her book.

So, after Penelope goes in-depth on her ideas on how to transform your newsletter into a donor-centered communication tool, she gently reminds us that our work is just now beginning. Briefly, here are some of her other thoughts (pages 104-108):

Use email to communicate with those donors who give you permission to do so. Talk about the IMPACT a donor’s contribution is making.
Use your website to post important information for your donors and demonstrate to the world how to be transparent and accountable. (See page 106-07 for Penelope’s website content ideas)
Visit your donors in-person and invite them to visit you and the programming in which they are investing.

I cannot tell you how many times I’ve been told by resource development and non-profit professionals that they are hesitant to bother their donors because they are too busy. The next time you hear this from anyone, I encourage you to share this data quote from page 107 of Penelope’s book:

“72% of study donors have been invited on-site to one or more not-for-profits they support to see their work first hand. 77% of this group said that this is appealing and that the invitation is appreciated even when they are unable to go.”

It is true that we need to be respectful of our donors’ time, but we need to balance that with being respectful of their investment.

I will end today’s blog with a “tease” … tomorrow we will talk about which donors we should focus more of our energy on? In the meantime, please use the comment box below and weigh-in with your thoughts on the following questions:

What does your non-profit organization do in addition to a newsletter to inspire donor loyalty?
What did your last donor stewardship visit look like? Were there any surprising revelations or actions that came out of the visit?
When a donor has told you that they’re too busy to meet with you or visit your program, how have you handled it and made lemonade out of lemons?

We can learn from each other … please jump into the conversation.

Here is to your health!

Erik Anderson

Owner, The Healthy Non-Profit LLC

http://www.facebook.com/home.php#!/profile.php?id=1021153653

July 5, 2011 DonorDreams Donor-centered fundraising

The magic of engagement

Here I was last night watching fireworks when found myself engaged in a conversation with a gentleman by the name of “Dan”. In no time, our conversation turned to non-profit organizations and philanthropy. As he ticked through a number of different organizations he has supported over the years, he ended each of those thoughts with a negative memory attached to a fundraising issue or event. Here is a list of terms he used repeatedly used:

Dreaded special events
Rubber chicken dinners
Money grubbers
Beggars

If you personally know me, then you know how enthusiastic I am about philanthropy. So, this conversation was painful to sit through. However, five minutes into our chat Dan’s tone changed completely when he started talking about a new charity in which he has recently gotten involved. The name of this non-profit organization is Year Up.

I was desperate to change the path we had been on, so I started asking questions about this particular non-profit organization. What I discovered just confirms everything I’ve learned about philanthropy over the last 15 years. In a nutshell, Dan glowed on and on about a recent “rubber chicken fundraising dinner” where participants weren’t just asked to give money, but the entire program was geared towards promoting involvement.

Creating internship opportunities for clients
Helping clients with resumes, cover letters, and their job search
Mentoring clients

While these words didn’t exactly come out of Dan’s mouth, he essentially said, “Ah ha! Finally a non-profit organization that isn’t just after my money. I am more than just a meal ticket. I am seen as a partner who is willing to roll up his sleeves and help advance the mission.” Most importantly, he had a twinkle in his eye and was obviously excited.

In my opinion, this is exactly what Penelope Burk is talking about when she writes about “donor centered fundraising”.

Isn’t it funny how many fundraising and non-profit professionals are afraid to ask donors to get involved? All I can figure is that we practice this avoidance behavior because we’re afraid donors will see us as “asking for too much” and withdraw their support completely. So, instead of letting donors make decisions about their own time and level of engagement, we oftentimes make that decision for them.

I can imagine that there are donors who might stop supporting a non-profit organization if they feel harassed. With that being said, I’m not advocating harassment tactics. So, here is my challenge to you … identify 10 current donors and schedule face-to-face visits with them sometime in the next 30 days. During your sitdown meeting, talk to them about the impact their most recent financial contribution has made and then ask each donor this simple question: “in addition to your generous financial support, is there anything else you would like to do to support the mission?” Don’t offer up your ideas and thoughts. Just like when you are soliciting a contribution, be very quiet and still after asking the question.

You might just be surprised with where the conversation leads you. You might also like what kind of fundraising and non-profit professional or volunteer you become. I bet you will find an army of people just like Dan who will roll up their sleeves and end up becoming some of your most loyal donors. And those donors who are happy remaining financial supporters and cheerleaders will likely be thrilled that you asked.

Do you know anyone like Dan? What words have they used to describe fundraising and non-profit organizations? Have they fallen in love with a particular charity? If so, what do you attribute to their change of heart? Please use the comment section of this blog to share because these stories can be so transformative for so many of us.

Sorry for today’s super long post, but I always get excited when I can relay a real life donor story to those of you who care so much about philanthropy.

Here is to your health!

Erik Anderson

Owner, The Healthy Non-Profit LLC

http://www.facebook.com/home.php#!/profile.php?id=1021153653