Big, Hairy Barrier Threatens Fundraising Mega-Opportunities

May 4, 2015      Admin

Ken Burnett has now published Part 3 and Part 4 of his thought-provoking five part series on the Future of Fundraising.

Our summary of Parts 1 and 2 found here, asking whether Agitator readers thought the future was ‘bright’ or ‘bleak’, generated lots of great comments. By and large, I’d say reader consensus came down on the ‘bleak’ side.

futureYou’ll recall that Ken left us in Part 2 with the reminder that “our donors remain condemned to…a DEPLORABLE CUSTOMER EXPERIENCE” and expressed what he called a “radical vision for the future where fundraisers become something donors want and love.”

BUT…in Ken’s view all is not lost. Indeed there is hope — if only we take advantage of what he calls “three mega-opportunities for all fundraisers”.

Part 3: Some Keys to Fresh Fundraising Success.

Here, according to Ken, are “three glittering reasons fundraising could be on the verge of a golden age”.

  • Mega-opportunity Number 1 — Retention. We could keep our friends much longer and that would produce huge benefits.

Fundraisers have his/her heads deeply in the sand if they’re not driven with a sense of urgency to tap into the massive impact on the bottom line that even a small increase in retention rates bring.

  • Mega-opportunity Number 2 — Donor Longevity. Donors are living longer so more will give much more provided we design carefully structured and inspirational guidance for these donors.

Populations 65+ in the UK, U.S., and other Western markets will increase 60%. “Are we able to help them realize that engaging with our causes will add genuine meaning and fulfillment to their now much longer lives.”

  • Mega-opportunity Number 3 — Corporate Social Engagement. Yes, ‘engagement’ not corporate social ‘responsibility’. CSR is old hat according to Ken. “It’s not about them [corporations] giving and us [nonprofits] taking. It’s about constructing win/win partnerships. The potential is massive and available for all.”

The question of course is whether fundraisers can bring to the corporate table a vision of what the combined efforts of the cause and the corporation can deliver when staff, management and customers are acting together.

I urge you read Ken’s post in detail on these points.

So, what’s the big, fat, hairy barrier to seizing these mega-opportunities for a golden future?

You guessed it. The lousy nature and quality of the experiences currently offered donors. And so Ken charges into the next part of his series.

Part 4: Marketing Was A Mistake.

Ken says we have it all wrong. The huge appetites of the massive fundraising marketing machines launched in the ’70s and ’80s demand constant feeding. Problem is that same machinery which once inexpensively produced tons of donors is now hemorrhaging donors at an alarming rate while costing a fortune in acquisition. All to simply to stand still.

I can just see the long-knives coming out. But Ken is absolutely right in asserting that the golden goose is on life support and must be fixed.

Why? Because today donors fear and mistrust ‘marketing’ as generally practiced in the sector. As Ken notes, “Most donors quickly make it plain they’re antipathetic at best to our marketing ways and downright suspicious of any selling strategy from those causes they believe in.”

[Again, I urge you to read Ken’s arguments and insights in detail.

To make matters worse, most fundraisers are reacting to today’s donors with absolutely the wrong moves. Ken observes: “…as it gets harder to get good results many fundraisers seem to be cranking up the hard sell. Instead of building the long-term relationships we need, fundraisers often opt for the low-hanging fruit of short-term money now, chasing the easiest bucks they can find.”

Any of these symptoms of the current disease look familiar?

  • Chasing bucks to hit quarterly or even monthly targets;
  • Conference and seminar sessions that talk of buying donors in volume;
  • Commoditized fundraising by shifting the job of talking to donors to third party commercial contractors.

As Giles Pegram, one of the UKs most innovative and successful fundraising leaders puts it: “We talk about relationship fundraising but all our actions and behaviour are short term … The very walls of our offices are constantly whispering ‘budget’.”

What To Do?

In 3 words: Improve donor experience.

For years, the burn and churn culture of direct response fundraising has focused on the transactional and the tactical. It is now abundantly clear that technique won’t save us. And neither will our screaming ‘need’ from the rooftops. Again, in Giles Pegram’s words: “When Mercedes market a new car they focus on the car, not on the need for Mercedes to make money.”

According to Ken’s analysis it’s time to focus on the WHY of donor motivation and loyalty. To redefine ‘marketing’ not as ‘selling’ to donors, but as the exploration and discovery of donor interests, preferences and intent.

Here’s the essence of what Ken’s saying … in his own words:

“That fundraisers, as their most urgent priority, should revisit, rethink and revise the donor experience is the single most important point here. Everything else in this nearly 6,000-word series is just words illustrating and justifying that single central point.”

Do you agree? If so, what are you doing about improving donor experience?

Roger

P.S. Readers have no doubt where The Agitator stands on the importance of donor experience. So far this year we’ve held a webinar on Fixing the Donor Experience … Identified Hidden Donor Frustration Experiences … published a Donor Experience white paper that you can download here and alerted our readers to getting focused on the importance of donor service.

P.P.S. Right now would be a great time to go through Ken’s series and these Agitator posts in detail and make yourself a ‘To Do’ list on Donor Experience. May be the most important step you can take to break away from the status quo.

 

 

 

4 responses to “Big, Hairy Barrier Threatens Fundraising Mega-Opportunities”

  1. Pamela Grow says:

    I’m enjoying Ken’s series tremendously.

    My own experience has been that most nonprofit organizations are floundering from one fix to the next and never make the time to master the basics (storytelling, donor-service). They go from one low ROI event to another (they love love love busy work).

    My own membership program was based on the recommendations contained in Growing Philanthropy in the United States and the Underdeveloped report. For one low price (currently $549), organizations are encouraged to enroll board members and volunteers alike. Training includes courses in planned giving, monthly giving, profitable donor newsletters, storytelling, etc. and webinars have featured some of the leaders in our field, including Tom Ahern, Chris Davenport, Peter Drury, Simone Joyaux, Derrick Feldmann, Erica Waasdorp, Leah Eustace, and more. Unlike the majority of cobbled-together membership programs, the overriding track of SDS is creating a donor-centric development department from the ground up.

    Membership sales are slow in comparison to one-off courses. Those members who actually attend and IMPLEMENT experience phenomenal success. But I am frustrated. You can lead a horse to water but… I’ve seen research that points to only 5% of conference attendees actually acting on what they learn. What is the answer? How do you get organizations to COMMIT to donor-centricity and strong donor service?

    I wish I knew.

  2. Like Pam I’m enjoying Ken’s thought challenging series.

    On Retention I would go further – it is even now even more of a mega opportunity because in today’s connected world everyone is a channel and you just don’t know who people know – so that regular donor could be the path to a major donor or a trust grant or to open a corporate door. It happens more than you think – and it happens even more once you recognise it happens!

    And Hallelujah! I really liked the insight, uncomfortable as it is, that donors don’t wish to be marketed at. It’s a real epiphany.

    If marketing was a mistake it certainly is now. Read any must read books that open the lid on why marketing isn’t working as it used to (such as Sticky Marketing, or The New Rules of Marketing) and they will point to the rising importance of the customer being the most important ‘channel’ for your business. Which means customer service is now paramount and the story your customer spreads. There’s the strategic logic of why the donor experience is key in our world. It always was important and now it is critical.

    This means a total refit for fundraising – we need the ‘back end’ departments such as supporter care at the forefront and we need to switch investment in marketing that ‘acquires people’ into making them as advocates and giving them an infectious story to tell.

    I find Ken’s series is giving me permission, courage, and confidence to carry on thinking and taking action in the way he describes. I’ll certainly go back through them as Roger suggests to generate my to do list (and not to do list).

  3. Nick says:

    Maybe if charities were led by visionaries who understood the need to connect with donors AND service users rather than just talking at them, and maybe if the same leaders stopped obsessing over short term RoI, they would find fundraisers who are more than happy to put Ken’s ideas into practice. The problem with fundraising has very little to do with fundraising and everything to do with the paucity of charity leaders, trustee boards and senior management. Let’s cure the problem rather than applying sticking plasters that will be picked off by non-fundraisers.

  4. Nick I’ve been think about your comment. You’re right. The campaign we need to take out is not amongst fundraisers – there are plenty of believers – it’s to CEO’s, CFOs, trustees. We need to speaking at their conferences, getting blogs on places they read, helping them to see the light.