Donor retention in two easy steps

February 20, 2013 erik Donor-centered fundraising, Fundraising

Last week I spent an hour on the phone with Jay Love, the founder and CEO of Bloomerang, which is the new online donor management and retention service. Jay is the same guy who brought eTapestry to the non-profit industry before selling it to Blackbaud a few years ago. It was during the product demonstration with Jay that I had the following thoughts:

Donor retention is a huge issue that is killing too many fundraising programs.
There are tons of tools and best practices available for those wanting to tackle this problem.
The root problem contributing to the donor retention epidemic is likely lack of resources and time for most non-profit organizations.
The solution doesn’t have to be complicated. In fact, simple solutions are probably the most sustainable.

Let’s take a few minutes to flesh out a few of these thoughts.

Donor turnover is an epidemic

Allyson Kapin at frogloop blog did a nice job of capturing this issue and included an awesome infographic from Bloomerang in her post titled “Strategies to Increase Nonprofit Donor Retention Rates“.

Non-profit donor retention rates currently stand at 41%.
The turnover rate is getting worse not better.
Our for-profit cousins do a substantially better job with customer retention. Their retention rate is 94%.
Non-profits seem to do better with retaining larger donors than smaller donors.

The problem is likely rooted in the non-profit sector’s short-term view when it comes to revenue generation. So, we over-invest in cultivating new donors and under-invest in stewarding existing donors. When we do invest in stewardship activities, it is focused on larger donors and not the base of our giving pyramid — smaller donors.

Best practices and tools

Penelope Burk tells us in her book Donor Centered Fundraising that donor retention is as simple as:

Thanking donors promptly. Being enthusiastic. Being personal.
Circle back around to donors and show them that you’re using their contribution in the manner that you told them you would when you originally solicited the contribution.
Circle back around again and tell donors what impact / outcome their charitable had with your clients and throughout the community.

Of course, the devil is in the details. I believe it is HOW you go about accomplishing these three simple principles where people get tied in knots and lose their way.

Consider this list of donor retention tools and communication opportunities:

There are countless donor management services and products (e.g. Blommerang, eTapestry, Results Plus, Raisers Edge, etc).
There are countless social media tools (e.g. Facebook, Twitter, Pinterest, LinkedIn, Constant Contact, etc).
There are paper newsletters and eNewsletters.
Annual reports
Impact reports
Annual meetings and town hall meetings
Mailings and phone calls
Personal visits

In fact, Penelope Burk spends a number of pages in her book talking about what the donors who she surveyed like and dislike.

Back to basics

If there is one thing I know about the vast majority of non-profit organization, it is that they are busy and overwhelmed. Looking at the donor retention statistics and the long list of remedies only adds more fuel to that fire.

So, it makes sense to simply.

If you’re a small non-profit organization and want to improve your donor retention rate, do the following two things:

Set aside one afternoon every month to call donors who made a contribution in the last four weeks. Get through as many as you can. Make sure you are enthusiastic about their gift and generally tell them how you plan on putting their gift to work. Ask them how they would like you to communicate with them in the future (e.g. newsletter, eNews, snail mail letters, etc), and make sure you follow-through on your promise.
Set aside enough time in your weekly schedule to sit down with one of your top individual donors every week. Share a cup of coffee or buy them lunch. It doesn’t matter. While you have a little bit of their time, casually share success stories. Tell them that those successes wouldn’t have been possible without their help and generosity. Do this once a week and you will meet with your Top 50 individual donors over the course of a calendar year.

I have worked in small non-profit organizations. Doing these two things is not unrealistic for an executive director or fundraising professional.

What is your agency doing to stem the rising tide of donor turnover? Please use the comment box below to share your thoughts. We can all learn from each other.

Here’s to your health!

Erik Anderson
Founder & President, The Healthy Non-Profit LLC
www.thehealthynonprofit.com
erik@thehealthynonprofit.com
http://twitter.com/#!/eanderson847
http://www.facebook.com/eanderson847
http://www.linkedin.com/in/erikanderson847

Fundraising is broken. Fix it.

February 7, 2013 erik Fundraising, leadership

Good morning, DonorDreams blog subscribers. I thought I’d give you another day off from my random non-profit and fundraising thoughts by offering you an awesome article about DONOR COMMUNICATION, STEWARDSHIP AND RETENTION from a guest blogger. This guest post is from Nathan Hand, who is a fundraising professional in Central Indiana. Check out his blog posts at NonprofitNate.com. Enjoy!

It happened again. And I’ve had it up to here (*as he raises his hand 2 inches above his head*).

This post may get me in trouble but this is important.

I was visiting with a community business leader yesterday. He told me that he and his wife had supported an organization several times over the years,but he hadn’t heard from them in 14 months. The communication he received yesterday was a solicitation for a significant gift. Done via email. Out of the blue.

If that doesn’t surprise and horify you, it should, but surely this will. He politely declined. In his words, he and his wife had understandably ‘moved on’. In return, he immediately received a ranting email from the fundraiser calling him out for his lack of support.

Ho.Lee.Cow. Stop it already!

What happened? Where did this go wrong? It’s an epidemic racing across the country and affecting every cause. It’s destroying the field of fundraising and the nonprofit sector. And I don’t blame the fundraiser (entirely). For those unaware, data released recently from Compasspoint should have fundraisers and nonprofit CEOs more-than concerned. (Download and read the full report)

Simone Joyeaux summarized politely:

“In summary, here’s the scoop: Development officers quit. Bosses fire development officers. Boards don’t play. Organizations don’t get it. This vicious cycle threatens financing of the sector. And, this has been going on for years and we aren’t really fixing it.”

Why?

I think it’s a lack of patience and focusing on true philanthropy. Organizations are spread too thin (few staff, barely funded), causing the organization to put undue pressure on their fundraisers who then pressure donors and send clear signals of desperation (cue the story above) and have completely unrealistic expectations on top of it. It destroys any hope of a positive relationship and future with those donors. No wonder half of all donors don’t renew!?! We’re waisting an incredible amount of time and money recruiting/aquiring folks only to treat them horribly and then we have the nerve to wonder why they don’t stick around!?!?

Phew. Enough ranting. What’s the solution?

CEOs – Realize that donors want and expect to hear from you. Fundraising should be YOUR priority, not something you hire someone to take care of. Be intimately involved in the process, in the hiring and for goodness sake, pay a competitive salary to attract and retain talent in a relationship-based position. Understand that the development director’s job is to pull levers and orchestrate you, the board and other major advocates in engaging your network to build support for the organization. Until they’ve been a part of the team for several years, they won’t have the relational credibility to be successful. Like sales, financial advisors and other relationship-based business, the first few years are establishing repor and won’t bear fruit for some time.

Development pros – You’re more to blame than CEOs. Yes, I said it. This is YOUR profession. It doesn’t mean you should do it alone but OWN this issue. Fix it for yourself, then your organization, then help others do the same. Do your homework before taking a position. Then do it again. A strong relationship is imperative with the CEO. Spend some time with them. If you don’t get more than an hour or two – that should be a clear sign that they don’t understand the magnitude of hiring a development pro. Meet with the Board Chair. Talk about these issues. Push them on their fundraising philosophy and how they and the board have been involved thus far and how willing they’ll be in the future. Make sure they understand there’s no money-printing press in the back. And look in the mirror! It’s easy to point fingers but make sure you have the patience to do this work, understand how to navigate the involvement of others and balance the slow, relationship-based part with being strategically assertive and making asks when appropriate.

It’s not a big deal. It’s just the future of the entire sector we’re talking about…

What do you think? Do you struggle with this? Is there a different problem we should be zooming in on?

How Storify can help non-profits raise awareness

February 4, 2013 erik Mondays with Marissa, technology

If there is one thing Social Media is about, it’s sharing — sharing information, photos, videos, statistics. If it can be displayed on a screen, it can be shared. Sometimes, it can be hard to keep track of all of the items being shared on a single topic. That’s where Storify comes in. Today, we are going to look at how your non-profit agency can use Storify to share social media updates with the world.

What Is It?

Storify defines itself as:

“Storify helps making sense of what people post on social media. Our users curate the most important voices and turn them into stories.”

I like to think of Storify as a personalized social media newspaper. Every now and again, I’ll see a Storify link in my twitter feed. I will click it to find a collection of status updates, tweets, photos, and articles on a topic that was important to the user. As the recipient of the Storify story, I find it brings attention to articles or updates that I may have missed on a specific subject.

Why Use It?

Storify can be a great way to share with your social media followers updates on a certain topic. For example, let’s say your mission has to do with cancer research. Once a week, it might be nice to collect stories about the advancements in cancer research, put them all together in an easy to read format, and share it with others.

What I like is that Storify gives you a way to provide context to the articles to which you are linking. Many times the hardest job a non-profit organization has is educating the public about their mission. Storify provides an easy format to do just that.

Additionally, Storify is a great search engine for finding content on different subjects. Even if you don’t use Storify to share articles and updates with others, it can be used as a powerful search engine to find what people are saying about your organization and its work.

Furthermore, once you publish a story on Storify, the service will notify the people quoted in your story to let them know they are being featured in your story. This can help you raise awareness about your issue faster and facilitate networking connections through social media.

Finally, Storify offers complete flexibility when it comes to how you share your curated stories with others. You can share it as a link to various social media networks or embed it right onto you website. Storify provides you with the code to do it, which makes it as simple as copy and paste.

How to Use It

Signing up for an account is simple. Just go to Storify.com to get started.

The whole interface is drag and drop so it makes deciding where things go very simple. Use Storify to share news about upcoming events, issues important to your mission, or collect when your organization is mentioned elsewhere on the web to share with members of your team.

See how The Weather Channel used Storify to collect stories about the latest winter storm.

I would just like to note that I was not compensated in way to write this post. I just think that Storify is a powerful tool that non-profits could use to raise awareness.

What do you think? Is Storify a tool for your non-profit? Do you already use Storify? If so, what do you believe to be most impactful when using the service? Share answers to any of these questions below in the comments section. I’d love to hear from you!

Your non-profit event isn’t over until you critique it

January 31, 2013 erik Fundraising

For the last few months, I’ve been involved in the planning and implementation of one of my favorite non-profit organization’s special event fundraisers. I was reminded last night at the post-event gathering of how important critique meetings really are to the long-term success of a special event. I was also reminded that post-event evaluation needs to focus on so much more than simply the question “Did we make our financial goal?”

Before last night’s meeting, staff gathered information on the following metrics:

Amount raised vs. event goal (e.g. revenue)
Amount spent vs. event budget (e.g. expense)
Costs as a percentage of amount raised
Number of donors
Number of new donors
Number of repeat donors
Number of lapsed donors
Breakout of various revenue streams compared to previous years (e.g. ticket sales, sponsorships, raffles, auction, fund-a-need, etc)

After getting past the numbers, deeper questions were asked about process such as:

What did we do well and what should we have done differently when it came to recruiting the committee?
What did we do well and what should we have done differently when it came to event planning and project management?
What did we do well and what should we have done differently when it came to selling sponsorships?
What did we do well and what should we have done differently when it came to securing auction items?
What did we do well and what should we have done differently when it came to conducting the raffles?
What did we do well and what should we have done differently when it came to check-in and check-out?
What did we do well and what should we have done differently when it came to the script and program?
What did we do well and what should we have done differently when it came to post-event communication and stewardship?
Should we change the event theme? Has this event gotten old and stale? Is it time to change format?
What are three things we must tell next year’s committee to keep doing because it really made a huge difference?
What are the three things we must tell next year’s committee to re-examine and change because it was a challenge?

No one likes to look in the mirror and talk about room for improvement; however, there is another way to look at these type of activities. A post-event critique meeting is like writing a “love letter” to next year’s event planning committee. I believe that if it is done in this spirit, then this activity becomes significantly easier.

At the end of last night’s post-event meeting, we also talked about the importance of building a binder that can be passed along to next year’s committee. Of course, the notes from last night’s meeting would be included as would budgets, invoices, invitation lists, volunteer prospect lists, etc.

There was celebration and lots of hugs and appreciation was exchanged. Wine, popcorn, and awesome parting gifts for everyone!

How does your organization handle itself after the event is over? What do you look at? What questions do you ask at the critique meeting? What goes into your binder? Please scroll down and share your thoughts in the comment box below. We can all learn from each other.

Here’s to your health!

5 Way to Validate Giving Decisions and Drive Retention

January 30, 2013 erik Fundraising

Good morning, DonorDreams blog subscribers. I thought I’d give you a day off from my random non-profit and fundraising thoughts by offering you an awesome article about DONOR RETENTION from a guest blogger. This guest post is from Matthew Mielcarek, the VP of Consulting at Charity Dynamics, who is a contributor for the online consultancy, Software Advice. Enjoy!

With a third of annual donations collected in December, many by first-time donors to an organization, finding a way to keep as many of those as possible going into a new year is a retention strategy proving quite valuable over time. A 2011 donorCentrics Internet and Multichannel Giving Benchmarking Report shows that 70 percent of first-time donors won’t donate again. Here are five steps Mielcarek suggests to foster lasting relationships with as many of them as possible.

1) Mielcarek says, “First time donors are qualified leads.” Therefore, consider first donations an acquisition gift. He goes on to suggest implementing a new donor conversion plan with the end-goal being to establish an ongoing relationship

2) Secondly, he says to be mindful of what a new donor may be communicating with you. He suggests the following metrics to gain insight to constituent behaviors: gift amount, billing city/state, solicitation campaign, and giving channel. He says that analyzing these key points is valuable. “Online acquired donors, for instance, generally have poor online retention; we know that a multichannel communication strategy will be important. In contrast, offline acquired donors are far less likely to cross the multichannel bridge and a single channel communication strategy may be appropriate.

3) Mielcarek also emphasizes the importance of showing gratefulness to donors. One NTEN and Charity Dynamics study shows that 21 percent of donors say there were not thanked for giving. He says that follow-up thank yous are also of immense value. Tell them how your year ended in terms of its goals. Show them they’re donation made an impact to their overall mission.

4) He adds, “Engage relevantly.” Beyond thank-yous, communicate with your donors and supporters on an ongoing basis. Personalize messages based on constituent interests, affinities, and locations. Keeping websites up-to-date and engaging is a key element to achieving lasting constituent interest too.

5) Lastly is the actual conversion to the next stage of giving, Mielcarek says. This stage involves suggesting an affinity-driven gift — whether that be a “renewal gift, or an upgrade or graduation to a monthly or mid-level giving program.”

To read more about Mielcarek’s suggestions, read the original story here.

The importance of intuition in non-profit work

January 25, 2013 erik organizational development

Welcome to O.D. Fridays at DonorDreams blog. Every Friday for the foreseeable future we will be looking more closely at a recent post from John Greco’s blog called “johnponders ~ about life at work, mostly” and applying his organizational development messages to the non-profit community.

In a post titled “I Have Leemers,” John talks about the power of intuition and the resistance he encounters from leaders in his workplace when it comes to making decisions based on these gut feelings.

Let me start by making a confession. My Myers-Briggs personality type is ESTP, which means I am:

Extroverted
Sensing
Thinking
Perceiving

This is what personality type experts will tell you about intuition and people like me:

“ESTP’s least developed area is their intuitive side. They are impatient with theory, and see little use for it in their quest to “get things done”. An ESTP will occasionally have strong intuitions which are often way off-base, but sometimes very lucid and positive. The ESTP does not trust their instincts, and is suspicious of other people’s intuition as well.”

As a non-profit and fundraising professional, I can honestly tell you that I’ve always felt like I’m at a disadvantage because of my intuition deficit. It is for this reason I work extra hard at trying to develop the intuition side of my personality.

Impossible you say? I don’t think so. I’ve heard personality type experts compare work like this to right-handed people learning to write with their left hand. It isn’t impossible. It is hard to do and will never feel “normal,” but it is doable.

So, you might be wondering ‘WHY’ would I ever attempt to do something like this? Well, I personally think intuition is a very important attribute for successful non-profit people. Let me give you two examples.

Fundraising

As part of any good annual campaign, you schedule face-to-face meetings with donors. In those meetings you make the case for support and ask them to pledge/give a specific dollar amount. It sounds something like this:

“So, Sally . . . I am hoping that you would give some thoughtful consideration to making a contribution of $1,000 this year to support some of the programs we just talked about as well as everything else this agency does to make a difference in our community.”

That $1,000 ask amount is determined at a committee meeting as part of prospect identification-evaluation-qualification exercises during the campaign planning phase.

As an ESTP, I love prospect identification-evaluation-qualification because it feels like we’re making a decision based on facts and data. We’re looking at the donor database and a prospect’s giving history. We’re looking at a prospect’s life circumstances (e.g. divorce, kids in college, retirement, etc). This decision is based on things that this Sensor can wrap his arms around.

However, I cannot tell you how many times I’ve been in the middle of a solicitation call and my intuition is screaming at me. As John said in his post, I heard those Leemers saying things like:

Abort! Abort! This donor isn’t ready to be asked.
Uh-Oh! We’re asking for too much.
Eeeek! This person is in love with the agency, and we’re asking for too little.

In every instance, I’ve always stuck to the plan and continued forward with the solicitation and asked for the amount determined by the committee. I can also tell you that every single time, I’ve walked away from the meeting thinking, “Damn, I should’ve gone with my gut feeling.”

I will become a better fundraising professional if I do a better job at developing my intuition.

Board Development

Did you read my blog post yesterday titled “The Chicago Cubs Convention through non-profit eyes: Part Three“??? If that wasn’t an ESTP’s point of view on board development, then I don’t know what is. LOL

The main theme of yesterday’s post was how important it is to develop data-based metrics to evaluate board volunteer prospects.

As with the fundraising example that I just talked about, I cannot tell you how many times I’ve walked a board prospect through a recruitment process and those Leemers were screaming at me:

This person won’t be a good fit for this board.
This person needs other experiences first (e.g. fundraising) before joining the board.
This person is saying ‘YES’ but I can’t put my finger on why they should be saying ‘NO’

Again, if I had a dollar for every circumstance I stuck with the plan, closed the deal, and those Leemers were right, then I’d be a very rich man.

I believe intuition is an important board development tool that needs to be in every non-profit leader’s toolbox.

As it relates to me, developing my intuition muscles (even a little bit more) and combining that with my “Sensing” abilities, will help me become a stronger leader, professional, consultant and coach. So, it isn’t about doing less sensing and more intuiting, it is about “balance” for me.

Please scroll down and use the comment box to share an example of when you listened to (or didn’t listen to) your Leemers in a non-profit context. Are you in the same boat as me and need to further develop your intuition? How are you going about doing that? We can all learn from each other.

Here’s to your health!

The Chicago Cubs Convention through non-profit eyes: Part Two

January 23, 2013 erik organizational development

This last weekend I attended the Chicago Cubs Convention with my family. As we drifted from session to session, I couldn’t help but see all sorts of blog themes and things that non-profit organizations could learn from this major league franchise. I will use the next few days to share a few of these observations and hopefully stimulate a few new ideas for you and your agency. In yesterday’s post, we talked about stewardship. Today, I thought we could talk about shared vision, values, and culture.

In many of the sessions, it wasn’t uncommon for someone to reference something called “The Cubs Way Guide“. They always described this guide as an organizational manual that describes what they believe and how they do things. Here is how President of Baseball Operations Theo Epstein described “The Cubs Way Guide” in February 2012 on the Cubs’ website:

“The Cubs’ way really boils down to the people — the players, obviously, but everyone, all the scouts and all the people in uniform in the Minor Leagues and the big leagues. For us to teach the game the right way, it’s more than words on the page. It comes down to how deep we dig to get connected to players to teach the game the right way, how much we care, how committed we are, how hard we work. There’s a lot that goes into this and building an organization.”

At Saturday’s convention, here are some of the phrases I heard people use to describe this manual and organizational resource:

It is a document that is a few inches thick.
It is what we believe as an organization.
It embodied the organization’s philosophy and approach.
It spells out how to prepare players for the big leagues.
It lays out for coaches at every level of the minor league and major league how to teach players how to play the game. Instruction can get as detailed as which foot hits the bag when players make a turn on the bases.
It lays out a vision and plan.

I walked away from each of these sessions wondering the same thing: “I wonder what such a manual might look like for a non-profit organization?”

After a few days of day dreaming about this topic, here are a few of my thoughts on what your organizational guide might contain:

Shared values
Shared vision
Code of ethics
Conflict of interest policies
Protocol on how to recruit community volunteers and prepare/position them for joining the board some day. (e.g. getting them involved in a committee, working a few pledge cards, etc)
Procedures on how to identify, cultivate, recruit, orient, train, rotate, recognize, and evaluate board volunteers.
Steps on how to hire new staff.
Rules on how to conduct outreach/recruitment of clients.
Etiquette on how to prepare for board meetings and committee meetings (e.g. agendas sent out a certain number of days before the meeting, meeting notes and action item memos going out a certain number of days after a meeting, elements of a productive board meeting, etc)
Code of behavior regarding how to engage, solicit and communicate with donors (e.g. Donor Bill of rights)

I suspect that I could make this list go on and on and on if I wanted.

If you started thinking to yourself when reading my list that you already have some of this in place at your organization, I suspect you are probably on to something. Some of this might already be included in your strategic plan, board development plan, resource development plan, stewardship plan, etc.

However, the genius of “The Cubs Way Guide” is:

It is all in one place, not in a series of documents sitting on a number of different book shelves.
It creates a central focus. It becomes the heartbeat of your organizational culture.
It is easy to reference.
It is easy to create training opportunities around it.

cubs way2

What are your thoughts about creating an organizational “How To Manual” for your non-profit organization? What would you include? Who would you involve in this project? What elements already exist that you might fold into such a manual? How would you use it to transform your organizational culture? Please use the comment box below to share your thoughts because there is nothing new under the sun and we can all learn from each other.

Here’s to your health!

The Chicago Cubs Convention through non-profit eyes: Part One

January 22, 2013 erik Fundraising, organizational development

This last weekend I attended the Chicago Cubs Convention with my family. As we drifted from session to session, I couldn’t help but see all sorts of blog themes and things that non-profit organizations could learn from this major league franchise. I will use the next few days to share a few of these observations and hopefully stimulate a few new ideas for you and your agency. Today, I want to drill down on the idea of stewardship.

In one of the sessions that I attended, there sat Cubs General Manager Theo Epstein and the brain trust for the entire Chicago Cubs organization. There was a lot of talk about improving the stadium, improving the product of the field, and a lot of blah-blah-blah. I’ve attended a number of these conventions, and I always marvel at how I am paying them to market to me. I also can’t believe that the script never seems to change very much.

However, something struck me as very interesting this year. It was Theo’s second convention since being hired, and I heard him say this:

“The Cubs have a covenant with the fans.”

This isn’t the first time that I’ve heard him say this. I heard it at last year’s convention. I’ve heard it and read it in various media interviews. And this time it sparked the following questions and thoughts:

I wonder what he means by that?
He is emphasizing this point . . . this must be part of a larger narrative?!?!
This sounds and feels remarkably similar to non-profit stewardship efforts. Huh?

So, I went back to the basics and looked up the word “covenant” and thefreedictionary.com defines it as follows:

“cov·e·nant (kuv’e-nent) noun. 1. A binding agreement; a compact.”

Of course, every time I hear this word it takes me back to my childhood and confirmation classes. There are obvious Biblical connotations.

I believe that when Theo talks about this covenant with Cubs fans, he is referring to:

Transparency,
Accountability,
Reporting,
Recognition, and
essentially demonstrating that the team is doing what they say they’re doing.

Isn’t this exactly what non-profit organizations mean when they talk about stewardship? I believe so.

If you agree, then this raises another interesting question: “With whom does your agency have a covenant?”

I believe that non-profit professionals and board volunteers form a covenant with many different stakeholders such as: donors, clients, collaborative partners, staff, funding partners and institutions (e.g. United Way and other foundations), and the at-large community. While there are common threads that run through each of those covenants, there are also some unique promises being made by your organization.

Have you ever thought through this part of your social contract? If not, then I suggest this might be an interesting “generative discussion” at an upcoming board meeting.

After a little more thinking, I started identifying ways the Chicago Cubs try to hold up their end of this covenant. For example:

The annual convention is in part an accountability exercise where ownership, management and players open themselves up to answering questions (e.g. ticket pricing, player acquisition, organizational development philosophy, etc).
The Cubs talked a lot about investing time and resources last year in fan surveys and focus groups.
The Cubs publish a magazine called “Vine Line” in an effort to keep fans informed.

How is this any different that what some non-profit organizations do with newsletters, annual meetings, and donor communications.

As I always say . . . “We can all learn from each other.” And I do mean ALL because the Chicago Cubs Convention proves to me that there is more commonality between for-profits and non-profits than we care to admit.

What is your non-profit agency doing to fulfill its covenant? With whom do you think you have a covenant? What tactics are you using? Where do you find your inspiration and new ideas? Who do you see doing a good job with this?

Here’s to your health!

Be intentionally personal with your non-profit donors

January 11, 2013 erik Donor-centered fundraising, Fundraising

In a post titled “Just a Note; Just a Phone Call!” John talks about the power of a simple handwritten note or well-timed phone call.

After reading John’s post, I couldn’t stop obsessing about how many emails and texts I now get and how few phone calls and handwritten notes there now seem to be. For example, I went on a road trip on Wednesday of this week, which meant being in a car for six hours and away from my email inbox. I spent tons of time talking to clients on the phone, but when I arrived at my destination and looked at my email inbox . . . OMG!

Maybe it is just that I am getting older, but the world seems to be moving at an insane pace. I’m also not smart enough to know if our communications tools (e.g. text, email, etc) are fueling this speed or if it is just a necessity or symptom of this acceleration. However, I am smart enough to know that people who donate to non-profit organizations are special people who deserve a little more attention than a form letter generated from your donor database, a simple text or quick email.

In my experience, being intentional and personal gets you and your organization noticed.

I believe Penelope Burk, author of Donor Centered Fundraising and CEO of Cynus Applied Research, says it better than could:

“A handwritten letter is the ultimate in personal recognition because it proves that someone in your organization spent at least a few moments thinking specifically about that donor.”

As many of you know, Penelope does a ton of survey research and looks specifically at donor and organizational behaviors. According to the research in her book, the following reasons were cited by agencies as to when they compose a handwritten letter to a donor:

the donor is well-known to the writer;
the gift is of exceptional value;
the donor is a leadership volunteer;
the donor has been giving for a long time; or
the donor is prominent in the community.

A very dear friend of mine, who is the former executive director of one of my favorite local charities, used to employ handwritten note techniques with me all the time. Here is what I saw her doing:

I would receive a handwritten note on my donor database, computer generated gift acknowledgement letter;
On my birthday, I would receive a card with a handwritten note wishing me well and thanking me for my longtime support;
When a donor’s name shows up in the newspaper or someplace public, she would clip it or copy it, attach a nice handwritten note of congratulations and send it to them.

Phone calls are also super effective, but I believe you need to be very careful with who you put on the phone.

For example, one local charity likes to conduct “thank-a-thon” events during the Thanksgiving season. I cannot tell you how upset I get as one of their donor when I pick-up the phone and there is a client at the other end telling me how much they appreciate my donation.

What? Huh? You’re probably wondering “Where did THAT just come from?” or “What is wrong with THAT?”

For me, it goes back to Penelope Burk’s research and the number one reason why non-profit agencies get more personal in their acknowledgement and thanks:

“. . . the donor is well-known to the writer . . .”

Do I know the client making that thank-a-thon phone call? No.
Did I get solicited by the client? Nope.
Do I want to make the client feel uncomfortable? Definitely not.
Does a client, who is “obviously reading from a script,” come across to me as “personal” and “heartfelt”? Absolutely not!

Am I opposed to thanks-a-thons as a donor stewardship tactic? No . . . but speaking personally as a donor I can honestly say that an informal, unscripted, personal phone call from the person who had originally asked me for money would’ve been something special and memorable.

What is your organization’s policy, procedure or practice around handwritten notes or phone calls to donors? What has been your personal experience as a donor? Any thoughts on what appears to be a trend around using more and more forms of impersonal communication (e.g. text and email) and what can be done to guard against its overuse? Please use the comment box below to share your thoughts, opinions and experiences.

And now the rest of the story . . .

December 28, 2012 erik organizational development

In a post titled “Crushed!” John conveys a really funny story about an older lady and her balding fat dentist who was a fellow classmate with her back in the day. John uses this story to make one really awesome point which is “There are always, without fail, two perspectives — ours, and the rest of the world’s.”

After reading John’s post three different times, a number of thoughts flooded into my mind:

I heard Paul Harvey’s voice echoing in my head saying: “. . . and now, the rest of the story.”
I conjured up the old expression: “You can’t see the forest through the trees.”
I thought back on a number of one-on-one interviews I did with donors throughout 2012 for a variety of clients.

When conducting those donor interviews, there were a number of times I caught myself thinking: “I wonder if the non-profit organization knows that this donor holds that particular opinion of them?”

As I’ve said throughout 2012, there are a number of ways for you to step back and gain a better perspective of how donors perceive your non-profit organization and the work they are funding (or may not be funding for very much longer):

Surveys (either online surveys or paper surveys)
Focus groups
Interviews
A casual stewardship visit over a cup of coffee or lunch

Circling back to the funny story that John shared in his post, I will end my very last blog post of the year with these questions: 1) Do donors think your agency is big, fat, balding, wrinkled and ugly? 2) Do you really know if they are thinking that? 3) What are you doing (or plan to do in 2013) to hear “the rest of the story”?

Happy New Year. The next DonorDreams blog post will be January 2nd.

Thanks for your readership and your dedication to your non-profit organization’s clients.

Here’s to your health!