Some days the competition for readers’ attention is just too steep. Like now,  where the story sucking up all the oxygen involves the wealthiest man in the world, a sleazy media company, possibly the President of the United States and the Saudis– and dick pics.

Regardless, here at The Agitator we soldier on.  This week we’re going to examine the waning of the  “trump bump”… further dissect declines in some 2018 year-end giving(especially digital) …and check out why UK donors may be falling out of love with charities.

In short, an exploration of  two fundamental questions:  1) Why donors leave? and  2) What can you  do about it?

Let me start with a story.

Earlier in my career I’d just made what I felt was a mighty effective case for a major gift from the CEO of a Fortune 500 company and was absolutely startled when he said, “No, I won’t give!”

I was nonplussed. “May I ask why?”

His response: “Because of mince pie.”

A bit dumbfounded, I eventually found my tongue. “What the hell does mince pie have to do with giving to your alma mater?”

“Nothing,” he said. “But when you don’t want to give, one excuse is as good as another.”

Fortunately, when it comes to donor defection, there really are not many “minced-pie” reasons for leaving. In fact, we do know why donors stop giving, and it’s possible for every organization to identify the specific reasons donors quit it.

You might want to take a look at this Bloomerang infographic that’s outlines the reasons why donors leave compared to the reasons consumers walk away from businesses.

It’s worth exploring in some detail the reasons donors leave:

Why Donors Leave

5%—Thought the charity didn’t need them.
Clearly, if you don’t tell donors about your needs, or, better yet, the beneficiaries you help, why should they bother staying with you? After all, they joined because they wanted to help.

8%—No information on how monies were used.
There are two key questions donors ask: 1) Why do you need my help? and 2) Did my contribution make any difference? Fail to answer these two questions and you’ll lose your donors, especially as more skeptical “show-me” Baby Boomers and Generations Y and X come to the fore. Remember: if you neglect to tell ’em, there are thousands of other organizations that will.

9%—No memory of supporting.
If ever there were evidence of ineffective communication and branding, this is it. If you don’t help a donor distinguish your organization from others, you’re likely to be forgotten. Generalized or aspirational taglines such as “We work hard to feed the hungry” or “We offer excellence in a multi-cultural environment” serve only to reinforce donor amnesia.

13%—Never got thanked for donating.
Failure to thank a donor properly is bad manners and horrible fundraising. No act of omission more clearly signals, “We don’t care. Just send the money.” Is it any surprise organizations that behave rudely don’t hold onto their donors?

16%—Death.
No surprise here. Donors tend to be far older than the general population. Notice that the commercial world with far, far younger consumers loses only 1 percent because of mortality. If, however, you’ve treated your donors well, a small but special group will make their largest contributions at the end of life in the form of bequests or other planned gifts.

18%—Poor service or communication.
Relative to the minutiae we obsess about—our logo, the annual report, the mission statement—too many of us just don’t grasp why spelling a donor’s name correctly or promptly responding to inquiries and complaints is so important. We mistakenly treat donor service as a cost center, when in reality good service can add thousands, tens of thousands, or hundreds of thousands to the bottom line.

36%—Others more deserving.
This statistic screams failure on the part of fundraising and communications departments. With more than a million groups clamoring for support, organizations that don’t state a powerful case leave themselves wide open to donors defecting to similar groups.

54%—Could no longer afford.
This may be the mince-pie excuse in this lineup of reasons why donors stop their support. Experience shows that organizations that make strong cases and provide positive experiences usually avoid being cut as donors trim the list of groups they support due to changes in health, retirement, or reduction in income.

The Pattern of Defection

Do you note the pattern or common thread in these reasons for defection? With the exception of death and a donor’s personal financial situation, every single one is entirely within the control of your organization. That’s right, organizations through their own actions—or inactions—are severely jeopardizing their own fundraising efforts and retention rates.

So… no more excuses.  No more “mince pie.”

Roger

P.S. In the next post Nick will pick up with analysis  and recommendations on actions your organization can take to improve results and buck some dangerous trends.