Fundraising is not about money. It’s about developing relationships, and money is a byproduct of that. This was the core message shared by Erik Daubert, MBA, ACFRE Nonprofit Management Specialist, in a recent resource development workshop presented by Greater Good Greenville. Thanks to generous sponsorship by the United Way of Greenville County, more than 70 nonprofit leaders learned the basics of donor relations and stewardship.
Daubert pointed out that people don’t give to nonprofits, they give through nonprofits. This is the heart of donor relations. The fundraiser’s role is to connect donors to the community that they are giving to.
He noted that in visits with donors and prospects, too many nonprofits view a donor visit as a time to talk about themselves. Instead, it’s a time to build a relationship and hear from the donor about what interests them.
Here’s a simple way of looking at the donor development cycle according to Erik. Ideally, donors will:
- Give a gift. As nonprofit leaders and fundraisers, you do a lot to get the first gift (such as writing a case for support, conducting prospect research, and making a solicitation). But, too many leaders move on after sending that thank you letter and don’t treat a first gift as the miracle it is.
- Give again. If you do things well to build a real relationship, donors will give again. However, 8 our of 10 first time donors don’t come back for a second gift to a nonprofit. But if you focus on donor relations, you can get to 60% donor retention instead of 20%. That’s because you showed you were interested in them as an investor and not just a donor transaction.
- Upgrade their gift. By building a relationship with your organization and showing how their gift made a difference in the mission, you can encourage some donors to increase their gift amount for future gifts.
- Make an ultimate gift. After a long relationships with your organization, a donor may make a major gift, leave you in their will, make a capital gift, or contribute in some other sizable and meaningful way.
He noted that the definition of a major gift varies by organization. Nonprofits can simply look at the top ten donors to their organization, and a major gift threshold is the dollar amount of that tenth donor. But, we can also think about what is major for any given donor; all donors need a relationship built with them.
Some nonprofit leaders believe they have no time for donor relations. Erik suggested instead they think of the many ways they can build a relationship and include the rest of the staff, board, and even some clients. This could be in quick phone calls to thank people for their gift, handwriting notes on printed letters, or inviting for visits to special activities of the organization.
With all of these interactions, we should consider how we can grow closer to our donors and find what we most have in common and what makes them excited and connect with them on those things. These connections are built by listening to your donors and asking good listening questions. As Erik said, “No one ever listened themselves out of a gift.”
Erik then turned to donor stewardship, which consists of acknowledgement, personalized thank you, recognition, and reporting back – and only after those steps have been done, inviting the donor to give again.
Acknowledgement. All donors need a thank you that’s fast and professional. This can be an automatic email when they make an e-donation or a paper letter. Even if it’s a form letter, it can include a mission message at the bottom. Erik noted that first class stamped mail with a handwritten address is more likely to get opened than metered mail.
Thanks. After the prompt acknowledgement of the gift, you should send a more personalized, sincere and authentic thanks. This needs to sound like YOU rather than form letters with “On behalf of the board of directors.” This thanks should also show how the donor is the hero in your organization’s story; the organization isn’t the hero in making positive change in the community. It’s the donor.
Recognition. Recognizing your donor is important and it doesn’t need to cost much money. Of course, things such as plaques or bricks are lovely, but it can be as simple as expressing your appreciation for them in front of other people.
Report back. Keep your donors informed about the difference their gifts have made. Share success stories that position them as the hero in the impact and not you and your organization; after all, your organization is just the vehicle for their difference their gift is making.
All of these steps of stewardship add up to building a relationship with your donor, and only after you’ve properly acknowledged, thanked, recognized, and reported back to your donors should you ask them for another gift. But if you’ve used the process to create a stronger connection with a donor, your ask is more likely to be successful.
