Many nonprofits might want to take a moment to look around at their for profit counterparts and see if there are lessons they might learn from their business model. It is unfortunate that the vast majority of nonprofit executive directors have little experience in the for profit world because with that additional experience they might view their responsibility and how to approach donors differently.
People in the car industry are constantly trying to come up with new ideas and incentives to sell you a car. However, most also put a great deal of focus on servicing that vehicle after the sell. They want to keep you coming back to the dealership.
All realtors want to sell you a house, but after the sale they seem to still stay in touch from time to time sending you a calendar you may or may not want or drop you a postcard about the houses that recently sold in your neighborhood. You ever wonder why? Well, you have heard of out the phrase "out of sight, out of mind" right? Well, they don't want to be forgotten.
Have you ever been in a situation when you arrange with someone providing a service you need when the following steps were followed: First they met with you when it is convenient for you to meet. Second you both agreed what needed to be done. Third they scheduled a time to provide the service that was outlined. Fourth they did the service at the time they said they would and at or below the price agreed on in advance. Lastly, they followed up after the service was complete to see if it was satisfactory and met your approval. Also to see if there was anything else that needed to be done or was overlooked.
Now while the above outline might not be an exact match to how you should operate your nonprofit or deal with your donor you can see by using this method of delivery how the focus is on the customer, always!
What Not To Do!
People that go to the post office daily to pick up mail occasionally find that dreaded slip in their box letting them know a package awaits at the window. With this discovery that means standing in line to be served. A few years back under the guise of standardization the post office came up with the:
USPS Strategic Transformation Plan 2006-2010 http://www.usps.com/strategicplanning/stp2006_2010/
Now forgive me for being critical because I realize at the time of the publication the post office I think was trying to "standardize" approximately 37,000 retail locations, but seriously are you telling me it takes five years to do this? I just can't help but wonder if Domino's Pizza or FedEx decided to make this project on how long it would take them?
Regardless, on page 60 you will read "The Postal Service recognizes that customers form expectations on critical attributes such as waiting time in line based on their experience with other similar services, and compare Postal Service performance to best-in-class providers." Really, you think? So one solution to improve customer service, remove all the clocks.
Now the only other place that I know that has done, but for an obviously different reason are the casinos in Las Vegas.
So, if people stand in line and can't see a clock they will be less frustrated. Oh yea, that is logical.
Finally, I hope one take away for your nonprofit in all this is for you to consider this question: How are we focusing on our donor?
Showing posts with label donor relationship. Show all posts
Showing posts with label donor relationship. Show all posts
Thursday, April 8, 2010
Wednesday, January 27, 2010
How Do You Connect With Your Donor?
I am often struck at the lack of conversation most nonprofits have with their donors or want-to-be donors. How often have you heard the old cliché: "The only time I hear from ‘X’ is when they want money!" This begs the question, Why?
The nonprofit arena is busy and busy being busy. Nonprofits for the most part are what I like to call "hidden in plain sight" bumping along day in and day out.
Likewise, every day we as individuals fall into our routine. It sometimes seems impossible to do something beyond our normal, and we all have a million excuses. How many times have you heard someone say: I can't do that because I don't have enough time! For whatever reason we act like this precious thing we call "time" is something we actually have no control over. Many also have lost touch of the simple fact that failing to "act differently" is our own fault and not due to forces beyond our control.
Hold On Change Is Coming!
Donors give nonprofits daily something of great value! Sometimes it might be money, other times it might be volunteering their time. On some occasions it actually goes deeper and a person extends to the nonprofit a part of their heart.
In all these cases nonprofits need to understand that they do not deserve this just because they are doing something good that helps others in society. Nonprofits need to understand the fact that gifts are given as a response out of a genuine sense of compassion and responsibility to others that the donor feels, not because the nonprofit is the most deserving.
Let's dig deeper! If you went to a fast food restaurant and placed your order and the person took your money but did not give you your food in return, then you would be more than just a little upset; you’d feel cheated.
So, what are you giving back to your donors for the money they give you? A receipt? If the fast food restaurant just gives you a receipt will you be satisfied then?
Nonprofits are so stuck in a rut that they forget that donors are people and that people need to feel a whole range of emotions in order to be complete. It would not be normal for a person to be happy or sad all the time but we as people need more!
Wake up! It is time for you to literally excite the senses.
See: Yes, that is right you have to get out from behind your desk and out of the comfy confines of your safe office. It feels good to be safe doesn't it? As a nonprofit executive you do not want to feel rejected. It is hard to ask for money too isn't it? Ok, I get all this but I am not asking you to jump out go ask for money. I am asking you to go see your donors. Be on your best behavior and take a gift. Not something big but something they can place on their desk to remember your organization.
Hear: When someone says the words, I hear ya! Do they really? Most of us are blessed with having two ears and one mouth. It was designed that way for a reason. You should double your efforts to hear what your donor has to say and talk less. Also, we as a society spend a lot of time tuning in and tuning out the messages we are bombarded with daily. What messages are you sending as a nonprofit? What is the donor actually hearing? Are they deafened by the silence?
Smell: It might seem odd to have nonprofits thinking about how they smell but if you will bear with me for a moment! Do you know how a bakery smells, the smell of flowers, or wood burning on a fire? What can you do to excite the sense of smell for your donor? What do you think the reaction a donor would have if perhaps a child who was served by a nonprofit made the donor something out of PlayDoh? Do you remember playing with PlayDoh as a child, remember the smell?
Taste: No doubt you have heard the proverb: “The way to a man’s heart is through his stomach!” While this might be a little over simplified I have never heard of a donor complain that they are getting too much candy or goodies from a nonprofit they support.
Feel: Do you really know how your donor feels about your nonprofit? What motivates their support and interest in the service you provide. Taking just a few minutes to harvest this important nugget will benefit your organization for years to come.
These are just a few ways you might consider to better connect with your donor. But remember, ultimately you will be judged by your actions rather than your words. It is up to you to connect with your donor, and it is not the responsibility of the donor to find you!
To learn more visit: www.nonprofitexpert.com
The nonprofit arena is busy and busy being busy. Nonprofits for the most part are what I like to call "hidden in plain sight" bumping along day in and day out.
Likewise, every day we as individuals fall into our routine. It sometimes seems impossible to do something beyond our normal, and we all have a million excuses. How many times have you heard someone say: I can't do that because I don't have enough time! For whatever reason we act like this precious thing we call "time" is something we actually have no control over. Many also have lost touch of the simple fact that failing to "act differently" is our own fault and not due to forces beyond our control.
Hold On Change Is Coming!
Donors give nonprofits daily something of great value! Sometimes it might be money, other times it might be volunteering their time. On some occasions it actually goes deeper and a person extends to the nonprofit a part of their heart.
In all these cases nonprofits need to understand that they do not deserve this just because they are doing something good that helps others in society. Nonprofits need to understand the fact that gifts are given as a response out of a genuine sense of compassion and responsibility to others that the donor feels, not because the nonprofit is the most deserving.
Let's dig deeper! If you went to a fast food restaurant and placed your order and the person took your money but did not give you your food in return, then you would be more than just a little upset; you’d feel cheated.
So, what are you giving back to your donors for the money they give you? A receipt? If the fast food restaurant just gives you a receipt will you be satisfied then?
Nonprofits are so stuck in a rut that they forget that donors are people and that people need to feel a whole range of emotions in order to be complete. It would not be normal for a person to be happy or sad all the time but we as people need more!
Wake up! It is time for you to literally excite the senses.
See: Yes, that is right you have to get out from behind your desk and out of the comfy confines of your safe office. It feels good to be safe doesn't it? As a nonprofit executive you do not want to feel rejected. It is hard to ask for money too isn't it? Ok, I get all this but I am not asking you to jump out go ask for money. I am asking you to go see your donors. Be on your best behavior and take a gift. Not something big but something they can place on their desk to remember your organization.
Hear: When someone says the words, I hear ya! Do they really? Most of us are blessed with having two ears and one mouth. It was designed that way for a reason. You should double your efforts to hear what your donor has to say and talk less. Also, we as a society spend a lot of time tuning in and tuning out the messages we are bombarded with daily. What messages are you sending as a nonprofit? What is the donor actually hearing? Are they deafened by the silence?
Smell: It might seem odd to have nonprofits thinking about how they smell but if you will bear with me for a moment! Do you know how a bakery smells, the smell of flowers, or wood burning on a fire? What can you do to excite the sense of smell for your donor? What do you think the reaction a donor would have if perhaps a child who was served by a nonprofit made the donor something out of PlayDoh? Do you remember playing with PlayDoh as a child, remember the smell?
Taste: No doubt you have heard the proverb: “The way to a man’s heart is through his stomach!” While this might be a little over simplified I have never heard of a donor complain that they are getting too much candy or goodies from a nonprofit they support.
Feel: Do you really know how your donor feels about your nonprofit? What motivates their support and interest in the service you provide. Taking just a few minutes to harvest this important nugget will benefit your organization for years to come.
These are just a few ways you might consider to better connect with your donor. But remember, ultimately you will be judged by your actions rather than your words. It is up to you to connect with your donor, and it is not the responsibility of the donor to find you!
To learn more visit: www.nonprofitexpert.com
Monday, January 11, 2010
Nonprofit Sins
One of the worst possible sins a nonprofit can commit is that of not saying:“Thank You!” in a language that their donors respond to.
It is the responsibility of the nonprofit, not the donor, to make the connection in order to build a lasting relationship. Donors need to be fed more than just information, but also need to be made to feel a part of the organization.
Nonprofits like many individuals tend to think in a linear mode. Meaning they see the world from left to right, from smallest to largest, and in alphabetical order. However, while this seems perfectly clear the problem is that not all donors will respond to what seems to be nothing but a rote response that required no thinking at all on the part of the nonprofit.
Some donors are fragmented thinkers meaning their life is not one that simply moves from point “a to b” in a straight line. However, rote responses i.e. a form thank you letter or donation receipt does nothing to stimulate a sense of appreciation but instead creates a vacuum.
Likewise, I am reminded of an animated cartoon character named Droopy, an anthropomorphic dog, a basset hound with a droopy face. This unassuming character is probably closer to many of your donors than you might realize. You mistake the monotone response of: “I’m so happy” as one that doesn’t care about your nonprofit only to find like in the cartoon this little guy has some incredible strength and is not bad after all, and he really is happy.
So, it is the responsibility of the nonprofit to find out how to satisfy their donor! Is your donor happy?
If nonprofits fail to take this challenge head on then they will be in purgatory until they learn the lessons of what it means to be thankful for every gift and individual.
To learn more visit: www.nonprofitexpert.com
It is the responsibility of the nonprofit, not the donor, to make the connection in order to build a lasting relationship. Donors need to be fed more than just information, but also need to be made to feel a part of the organization.
Nonprofits like many individuals tend to think in a linear mode. Meaning they see the world from left to right, from smallest to largest, and in alphabetical order. However, while this seems perfectly clear the problem is that not all donors will respond to what seems to be nothing but a rote response that required no thinking at all on the part of the nonprofit.
Some donors are fragmented thinkers meaning their life is not one that simply moves from point “a to b” in a straight line. However, rote responses i.e. a form thank you letter or donation receipt does nothing to stimulate a sense of appreciation but instead creates a vacuum.
Likewise, I am reminded of an animated cartoon character named Droopy, an anthropomorphic dog, a basset hound with a droopy face. This unassuming character is probably closer to many of your donors than you might realize. You mistake the monotone response of: “I’m so happy” as one that doesn’t care about your nonprofit only to find like in the cartoon this little guy has some incredible strength and is not bad after all, and he really is happy.
So, it is the responsibility of the nonprofit to find out how to satisfy their donor! Is your donor happy?
If nonprofits fail to take this challenge head on then they will be in purgatory until they learn the lessons of what it means to be thankful for every gift and individual.
To learn more visit: www.nonprofitexpert.com
The Nonprofit Arena 2010 Outlook
In 2010 we can expect a third of the work force in the US to be unemployed or underemployed at some point over the next year! The reported 10% unemployment rate is not the true picture. The actual rate is over 17% when you include the unhappy part time workers and those that have stopped looking for work i.e. discouraged which are labeled a politically correct term “marginally attached” versus unemployed.
The real challenge for the nonprofit arena is to motivate people to do what they are already wired in their mind and hearts to do naturally, which is to give!
How this is done is not rocket science but is based on the principle of truth and honesty.
First and foremost nonprofit organizations need a healthy dose of realism and face the fact that not everyone will be attracted to their cause and that is ok.
Secondly, the best nonprofits are those that are run by people who they themselves believe in the cause. In my opinion people who love what they are doing and would do the job they are doing without pay if they could are the ones who I want on my team, how about you? Wouldn’t you rather work with someone excited to do their job versus someone who is just punching the clock for a paycheck? They answer is obvious and donors to nonprofits are quick to pick up if the people working for that nonprofit are genuine or fakes.
Ok, let’s say you have all the right people leading your nonprofit so what comes next?
The volunteers, namely your board of directors, must be fully committed. It is unreasonable to expect success on raising money from people outside the organization if those inside are not giving to their full potential.
This finally brings me to a critical point of how your nonprofit markets itself to others.
Is your organization financially transparent on how it operates? Can people clearly see how the money they give makes a real and lasting difference in the lives of others?
A donor is an investor in every sense of the word. They not only want, but expect, to see either a direct or indirect outcome for the contribution they have made. You need to be careful that within the organization everything is not so convoluted that a doubt lingers in the mind of your donors. They must know that their contribution made a difference!
People, now more than ever, will be rethinking every aspect of their life and determining what is important and what is fluff.
For the nonprofit this will mean even a tighter squeeze than in 2009 which will cause either drastic cut backs in services for some or close doors permanently for others.
The year 2010 will be remembered not only as the “Year of The Tiger” but also the year that only the strong survived. If you have not watched a Rocky movie lately now might be the time to rent one and get ready!
To learn more visit: www.nonprofitexpert.com
The real challenge for the nonprofit arena is to motivate people to do what they are already wired in their mind and hearts to do naturally, which is to give!
How this is done is not rocket science but is based on the principle of truth and honesty.
First and foremost nonprofit organizations need a healthy dose of realism and face the fact that not everyone will be attracted to their cause and that is ok.
Secondly, the best nonprofits are those that are run by people who they themselves believe in the cause. In my opinion people who love what they are doing and would do the job they are doing without pay if they could are the ones who I want on my team, how about you? Wouldn’t you rather work with someone excited to do their job versus someone who is just punching the clock for a paycheck? They answer is obvious and donors to nonprofits are quick to pick up if the people working for that nonprofit are genuine or fakes.
Ok, let’s say you have all the right people leading your nonprofit so what comes next?
The volunteers, namely your board of directors, must be fully committed. It is unreasonable to expect success on raising money from people outside the organization if those inside are not giving to their full potential.
This finally brings me to a critical point of how your nonprofit markets itself to others.
Is your organization financially transparent on how it operates? Can people clearly see how the money they give makes a real and lasting difference in the lives of others?
A donor is an investor in every sense of the word. They not only want, but expect, to see either a direct or indirect outcome for the contribution they have made. You need to be careful that within the organization everything is not so convoluted that a doubt lingers in the mind of your donors. They must know that their contribution made a difference!
People, now more than ever, will be rethinking every aspect of their life and determining what is important and what is fluff.
For the nonprofit this will mean even a tighter squeeze than in 2009 which will cause either drastic cut backs in services for some or close doors permanently for others.
The year 2010 will be remembered not only as the “Year of The Tiger” but also the year that only the strong survived. If you have not watched a Rocky movie lately now might be the time to rent one and get ready!
To learn more visit: www.nonprofitexpert.com
Monday, September 28, 2009
Nonprofit Bottom Fishing
Nonprofits spend an enormous amount of time and energy focused on seeking grants from foundations. I am not opposed to nonprofits finding funding where they can the simple facts remains:
Approximately 75% of all charitable giving comes from individuals and an additional 8% comes from planned gifts. Foundations account for approximately 12% of charitable giving and corporate contributions represent only 5%.
So are nonprofits in fact spending more time than necessary i.e. bottom fishing for contributions that are less frequent and harder to come by than actually spending more time focusing on where the money really comes from?
As a husband of over 20 years there is a phrase my wife says and continues to say as we build our relationship and that is spending “quality time” together!
The only real way nonprofits can grow their donor support is through lots of hard work, time, and effort. The keyword however is “time.”
You can choose to spend your time writing all the grants you want, but as most grant writers will confess the vast majority of grants are short term monies for a specific program or time period. Plain and simple, if your nonprofit lives by the grant, it will die when the grant runs out. By focusing so intently on getting grants nonprofits unfortunately have a tendency to slowly lose their identity, bending to mold and shape itself to fit what the foundation decides to fund.
Likewise, you can choose to spend your time differently.
Taking the example of a personal relationship for a moment I would challenge you to ask yourself this question. What makes you as an individual more likely to want to spend time with someone? Obviously, there has to be a common interest for the connection to work. You need to “get to know” what the other person likes or dislikes. We have all heard the cliché: Understanding what makes a person tick.
So, as a nonprofit what common interest do you have with your donor? How well do you know what they like or dislike about your program? Have you taken the time to ask or get to know them and what makes your donor tick? What are their motivations?
The only way you find out these answers is to spend time asking questions. If nonprofits spend more time asking open ended questions to their donors and really hearing what the donor is saying then I honestly believe less time would be needed for fundraising.
Approximately 75% of all charitable giving comes from individuals and an additional 8% comes from planned gifts. Foundations account for approximately 12% of charitable giving and corporate contributions represent only 5%.
So are nonprofits in fact spending more time than necessary i.e. bottom fishing for contributions that are less frequent and harder to come by than actually spending more time focusing on where the money really comes from?
As a husband of over 20 years there is a phrase my wife says and continues to say as we build our relationship and that is spending “quality time” together!
The only real way nonprofits can grow their donor support is through lots of hard work, time, and effort. The keyword however is “time.”
You can choose to spend your time writing all the grants you want, but as most grant writers will confess the vast majority of grants are short term monies for a specific program or time period. Plain and simple, if your nonprofit lives by the grant, it will die when the grant runs out. By focusing so intently on getting grants nonprofits unfortunately have a tendency to slowly lose their identity, bending to mold and shape itself to fit what the foundation decides to fund.
Likewise, you can choose to spend your time differently.
Taking the example of a personal relationship for a moment I would challenge you to ask yourself this question. What makes you as an individual more likely to want to spend time with someone? Obviously, there has to be a common interest for the connection to work. You need to “get to know” what the other person likes or dislikes. We have all heard the cliché: Understanding what makes a person tick.
So, as a nonprofit what common interest do you have with your donor? How well do you know what they like or dislike about your program? Have you taken the time to ask or get to know them and what makes your donor tick? What are their motivations?
The only way you find out these answers is to spend time asking questions. If nonprofits spend more time asking open ended questions to their donors and really hearing what the donor is saying then I honestly believe less time would be needed for fundraising.
Donor Retention and Recognition
“The donor” is and should be seen as the most important person for any nonprofit organization, period! However, lately donors are treated more like a commodity than a treasured artifact.
How a nonprofit treats their donors will have a significant impact on the organization’s ability to raise money and grow.
As a consultant for nonprofits I see way too often donors that are ignored with no plan in place to make them feel special or needed.
The phrase “you’re my friend” is one of the most touted sayings in political circles, especially when a contribution is being pursued. Likewise, when the salutation, “Dear Friend” or “Dear Supporter,” is used by a nonprofit, that in my opinion is impersonal and in some respects insulting! If you want a contribution you have to start by addressing me by my name and treat me like an individual versus someone in line at the drive thru.
How much do you really know about your donor? Have you taken the time to ask them what they like or even dislike concerning your program? How often do you communicate with your donor and NOT ask for money?
All these questions are just the start to building a retention program that works!
As best as I can tell, there are few free programs or informational pages on the internet that really share the practical secrets to help nonprofits retain donors. So, once again, I’ll try to tackle the subject and give you the information you need, NOW!
Why does a donor stop giving? Over 50% of all donors stop giving because of three simple yet profound reasons.
Approximately 25% of donors stop giving because they find another cause they think is more deserving. This begs the question then is your message on point? Is your message consistent? Does it resonate with donors or are you doing something that people really don’t support? Is what you do effective year round?
Unfortunately over 20% of donors that stop giving simply cannot afford to support charities at that time.
Lastly and most amazing is that over 10% have totally forgotten they supported the charity in the first place. This last point for me further emphasizes the fact that if your nonprofit’s method if getting donations is largely based on simple emotional appeals then eventually the well will run dry and people will literally forget you.
The message your nonprofit gives to donors must be one that is lasting and not just tell of a need but helps truly show that with support they can make things better long term. The ultimate goal would be changing or affecting a life forever.
So how do you keep donors happy? First a donor needs to feel appreciated, welcomed and wanted. Likewise, most people that give money want to know the results of their actions so they in turn need information. Newsletters and annual reports are fine but those are often ignored. Nonprofits need to connect with their donors! This connection is a key in the retention of donors and where most nonprofits seem to operate in blissful ignorance.
Nonprofits need to fit in their schedule throughout the year ways to acknowledge their donors both publically and privately. So, what is the most effective way to say thank you?
This is a question that has plagued nonprofits for a very long time. Everyone would like to have the definitive answer as to what works and what does not. Unfortunately, since every donor is different there is no real clear cut answer. Regardless, nonprofits need to make an attempt and buckle down and establish an ongoing program now and not wait until they are doing a capital or planned giving campaign.
What does a plan look like?
A simple approach is to establish a recognition program along with your annual fundraising plan.
First, determine how many times do you want to make contact with your donors and what is the purpose for this contact?
Sidebar: We all have people we know that we only seem to hear from when they need something from us. We know when the phone rings or they show up at our door step it is not for a social visit but for some other alterative motive. You do not want your nonprofit to fall in this category!
For the sake of example let’s say you determine you want to make ten contacts a year to donors that give at a certain level of giving. This might include newsletters, face to face conversations seeking advice, birthday cards and/or special occasion cards like for Thanksgiving as well as sending an actual personalized letter soliciting money to support a specific program area or project. I am not talking about a mass produced letter but a one on one conversation piece.
You may also want to consider having a donor appreciation social, dinner or luncheon. The purpose for this event is to say thank you and to give information on how monies were spent wisely and effectively. Nonprofits may also choose to post a list of donors, unless they wish to remain anonymous, where you offer your program so clients and others can see who supports your cause. Having a newspaper ad thanking donors can also be effective.
Newspaper ads thanking donors are often done after a fundraising event; however, you may find it more effective during Thanksgiving with an ad that might read: In this time of reflection we at X nonprofit want to thank all those who supported us during this year etc. This is helpful especially if you plan on following up with an end of the year ask.
Regardless, in every way possible thank your donors! Mention them everywhere you can. Again, in your newsletter, your annual report, your website, when you stop by to talk thank donors for not just for money but for their advice and valuable time. If you send a card put a hand written note of thanks.
I strongly believe that all nonprofits should consider having at their program location a donor wall system or some display that lists the names of individuals that have contributed to the nonprofit both annually and long term.
There are dozens of companies that sell these types of systems with a wide array of designs. They also offer high tech digital touch screen displays as well, yet personally I would opt for a higher degree of personalization with a warmer feel. I also like the idea of establishing a walk of fame where you have gift bricks with donors, names.
Some may not see the importance of having this outward display. Regardless, if this is not the approach your nonprofit takes you still need to determine how you’re nonprofit can connect with your donor and determine what is being done to ultimately give credit where credit is due.
In short, choosing to do nothing and ignore your donor is the quickest way to loose them!
How a nonprofit treats their donors will have a significant impact on the organization’s ability to raise money and grow.
As a consultant for nonprofits I see way too often donors that are ignored with no plan in place to make them feel special or needed.
The phrase “you’re my friend” is one of the most touted sayings in political circles, especially when a contribution is being pursued. Likewise, when the salutation, “Dear Friend” or “Dear Supporter,” is used by a nonprofit, that in my opinion is impersonal and in some respects insulting! If you want a contribution you have to start by addressing me by my name and treat me like an individual versus someone in line at the drive thru.
How much do you really know about your donor? Have you taken the time to ask them what they like or even dislike concerning your program? How often do you communicate with your donor and NOT ask for money?
All these questions are just the start to building a retention program that works!
As best as I can tell, there are few free programs or informational pages on the internet that really share the practical secrets to help nonprofits retain donors. So, once again, I’ll try to tackle the subject and give you the information you need, NOW!
Why does a donor stop giving? Over 50% of all donors stop giving because of three simple yet profound reasons.
Approximately 25% of donors stop giving because they find another cause they think is more deserving. This begs the question then is your message on point? Is your message consistent? Does it resonate with donors or are you doing something that people really don’t support? Is what you do effective year round?
Unfortunately over 20% of donors that stop giving simply cannot afford to support charities at that time.
Lastly and most amazing is that over 10% have totally forgotten they supported the charity in the first place. This last point for me further emphasizes the fact that if your nonprofit’s method if getting donations is largely based on simple emotional appeals then eventually the well will run dry and people will literally forget you.
The message your nonprofit gives to donors must be one that is lasting and not just tell of a need but helps truly show that with support they can make things better long term. The ultimate goal would be changing or affecting a life forever.
So how do you keep donors happy? First a donor needs to feel appreciated, welcomed and wanted. Likewise, most people that give money want to know the results of their actions so they in turn need information. Newsletters and annual reports are fine but those are often ignored. Nonprofits need to connect with their donors! This connection is a key in the retention of donors and where most nonprofits seem to operate in blissful ignorance.
Nonprofits need to fit in their schedule throughout the year ways to acknowledge their donors both publically and privately. So, what is the most effective way to say thank you?
This is a question that has plagued nonprofits for a very long time. Everyone would like to have the definitive answer as to what works and what does not. Unfortunately, since every donor is different there is no real clear cut answer. Regardless, nonprofits need to make an attempt and buckle down and establish an ongoing program now and not wait until they are doing a capital or planned giving campaign.
What does a plan look like?
A simple approach is to establish a recognition program along with your annual fundraising plan.
First, determine how many times do you want to make contact with your donors and what is the purpose for this contact?
Sidebar: We all have people we know that we only seem to hear from when they need something from us. We know when the phone rings or they show up at our door step it is not for a social visit but for some other alterative motive. You do not want your nonprofit to fall in this category!
For the sake of example let’s say you determine you want to make ten contacts a year to donors that give at a certain level of giving. This might include newsletters, face to face conversations seeking advice, birthday cards and/or special occasion cards like for Thanksgiving as well as sending an actual personalized letter soliciting money to support a specific program area or project. I am not talking about a mass produced letter but a one on one conversation piece.
You may also want to consider having a donor appreciation social, dinner or luncheon. The purpose for this event is to say thank you and to give information on how monies were spent wisely and effectively. Nonprofits may also choose to post a list of donors, unless they wish to remain anonymous, where you offer your program so clients and others can see who supports your cause. Having a newspaper ad thanking donors can also be effective.
Newspaper ads thanking donors are often done after a fundraising event; however, you may find it more effective during Thanksgiving with an ad that might read: In this time of reflection we at X nonprofit want to thank all those who supported us during this year etc. This is helpful especially if you plan on following up with an end of the year ask.
Regardless, in every way possible thank your donors! Mention them everywhere you can. Again, in your newsletter, your annual report, your website, when you stop by to talk thank donors for not just for money but for their advice and valuable time. If you send a card put a hand written note of thanks.
I strongly believe that all nonprofits should consider having at their program location a donor wall system or some display that lists the names of individuals that have contributed to the nonprofit both annually and long term.
There are dozens of companies that sell these types of systems with a wide array of designs. They also offer high tech digital touch screen displays as well, yet personally I would opt for a higher degree of personalization with a warmer feel. I also like the idea of establishing a walk of fame where you have gift bricks with donors, names.
Some may not see the importance of having this outward display. Regardless, if this is not the approach your nonprofit takes you still need to determine how you’re nonprofit can connect with your donor and determine what is being done to ultimately give credit where credit is due.
In short, choosing to do nothing and ignore your donor is the quickest way to loose them!
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