A Man Of Infinite Patience In A World Of Imposters
Roger surprised and impressed me yesterday with the incredible display of patience and tolerance displayed in his post, Donor Retention: Good News And Poor Excuses.
The ‘good news’ in his post was that, according a Boomerang survey of 775 nonprofits, 67% are tracking their donor retention rate, as compared to 55% in 2014.
That improvement moved Roger to write: “At last! I’m pleased to report that there seems to be some evidence that more and more fundraisers are paying attention to the issue of donor retention.”
He did caution — with amazing equanimity — we are far from “breaking out the champagne…”
Because the Boomerang results suggest that ‘only’ 33% of nonprofits are still not paying attention to this crucial measure of fundraising effectiveness.
I’ll be the bad cop on this one.
First of all, of those who are tracking, only 36% have set a specific goal for improving their retention rate. That’s 36% of the 67%, or 24%. So, only one in four nonprofits cares enough and deems it important enough to have a specific goal for improving their retention rates.
Those are the ONLY 24% of nonprofits I would suggest you give a dime to.
As for the 33% who are not even tracking retention rates, their excuses were pathetic. So pathetic I won’t even repeat them.
For those nonprofits, were I to be placed in charge, on that very day I would fire the person directly responsible for fundraising, as well as the executive who hired that person in the first place … let’s be real, we’re dealing with ‘dumb and dumber’ in these nonprofits.
Why would anyone entrust donor money to a nonprofit that had neither care nor clue about retaining donors? If their leadership is that unintelligent about fundraising, what does that say about their management of the other aspects of their mission?
I wrote a post on Monday titled Worst Fundraising Mistake.
Michael Rosen commented:
“Sadly, there are a great many critical mistakes that charities routinely make. What’s particularly frustrating to me at this point in my long career is that many of the issues we’re discussing today, we were discussing decades ago.
Let’s take a look at donor retention as an example. The sector has been talking about the issue for years, yet retention rates have fallen and continue the downward slide. During the decline in retention rates, an increasing amount of research and educational information became available to assist charities. However, despite the availability of excellent how-to information (e.g., Roger’s book), retention continues the downward slide. Why?”
Michael went on to mention unidentified “structural obstacles” as the cause, and said we had to remove those.
I’m not sure what obstacles he had in mind.
I do know the ‘obstacle’ I have in mind: incompetent individuals hired to do fundraising. Note that I didn’t call them ‘fundraisers’. Because they’re not fundraisers. They’re imposters … holding back the charities and causes they’re meant to be serving.
Tom
Structural obstacles include ignorant board and staff leaders.
These are people who hire, make policy and budget decisions who absolutely don’t know what they are doing.
People in leadership (typically men) who think they know more than the (mostly female) fundraisers. I’ve seen it all in my 31 yrs, and it’s disappointing.
Educating board members and leadership about how fundraising really works is essential if we are to make any headway on this problem.
We should create a Donor Retention Board Meeting Kit! It could be as simple as a board meeting outline that included defining and discussing “Lifetime Value” and “Donor Engagement” as well as “Donor Retention”.
I ma betting those topics have never been discussed in 90%of the cases!
I don’t mean to be polishing anyone’s apple here, but our little charity was able to get its arms around donor retention performance only when we switched to Bloomerang, which comes with a built-in retento-meter. True, we could have been tracking with “pencil and paper” but in a tiny shop sometimes the quiet important sustaining tasks get overwhelmed by the noisy, urgent crisis tasks.
I also think it’s important to keep an eye on donor retention “practices,” not just the statistics. Idiosyncratic events, such as a flood of one-off memorial gifts when a beloved board member passes away, can skew the stats noticeably when your donor base is relatively small. Work as you will to keep that kind of first-timer, most will go back to their true loves.
As a recent subscriber to the Agitator, I’m grateful to all the pros chiming in here. Simone Joyaux poured us a big glass of retention Kool-Aid a few years ago and I’ve never enjoyed a drink as much as that one.
Gail: you are so right! Over the years, a good chunk of my time was spent educating – often educating those who were quite convinced they already understood it all.
And Jay, I love that idea.
LOL Mary – thanks! – It’s educating nonprofit leaders that just may matter the most.
I love Jay’s idea, and not just for donor retention, something we need to work on. Simple kits for the board with fundraising info sounds helpful for staff and for board members.