Showing posts with label donor retention. Show all posts
Showing posts with label donor retention. Show all posts

Wednesday, February 3, 2010

Nonprofit Donor Burnout

More than likely you have read quite a bit about burnout when it comes to employees or staff of non profits. Rarely, however, do you hear about the flip side of the coin and hear someone discuss donor burnout.

As a donor to many different non profits over the years I can attest to the fact that there is a real frustration with how a non profit handles their end of the agreement.

Supporting a nonprofit as a donor is a very serious commitment I do not take lightly. I have to be sure that what the nonprofit stands for is something I can be fully committed to.

If I take the next step and join a board of directors then I am literally giving a piece of myself away. While this might seem to some as being melodramatic I can assure you that my wife of twenty-three years views this quite different! Whatever I give away of myself to supporting a non profit leaves less time and quite frankly energy for her. This is a big deal!

My gift and I do see what I give as a gift, goes far beyond just my time, my energy, my talent and what most nonprofits seem to be fixated on i.e. money. It is actually something deeper and more serious and for me part of my soul. How can you quantify the worth of self someone gives to your organization?

Unfortunately, few nonprofits I have run across have ever really comprehended this level of giving or found the way to respond to where I believe that they “got it.” So I seemed destine to repeat the same old cycle:

First I find a nonprofit I think is doing good work and get excited about what they are doing and support their cause. I might attend an event or give a donation.

Second, I learn more about what the organization does and get closer to the executive director and/or staff. I might find myself helping more by donating money or sometimes I find it more rewarding to meeting a specific need of the organization.

Eventually my level of giving and interest is noticed by others and at some point I might be asked to consider being on the board. This is the critical point! The older I get the more picky I have become and quite frankly more guarded, because I know if I join a board I will consider myself being all in.

If I join I quickly learn the good, the bad and the ugly about the organization. Sometimes this in and of itself is a huge disappointment. If however there are no hidden land mines then I quickly adjust to learning more about the organization and I gage the commitment levels of others on the board while learning about the excitement and energy level of the staff running the programs.

Many times after giving lots of time and energy and money I have found that the executive director and staff begin to take for granted past donations and get comfortable being the recipients of a generous nature and just expect it to continue forever regardless of their performance or outcomes. A disconnect begins slowly. There is not the level of excitement. Everyone still knows the reason they are there is to help the cause but at this point I generally hit a wall. I don’t see others around me willing to push as hard as I am or I begin to feel like my time is just being wasted. Staff slows down and only wants to push so far. The reason is that since they are working with an all volunteer board they do not want to have to do most of the work if the volunteer board stops pushing.

At this point if I am still on the board I will rotate off and normally my giving level drops. I also have a tendency to be reflective in nature. While I am not totally second guessing my judgment I do tend to mull over if the donations I’ve given in the past and generally draw a conclusion in my own mind if it was all worth it.

I wish I could end saying I felt good after all this but honestly answer is that of feeling more confused at times than being reassured that my personal commitment was met with an equal level of acceptance. Strange isn’t it?

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

Monday, September 28, 2009

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!