Donor Relations … A One Way Street?
A sure sign that not much of anything worthwhile is being done in the area of donor relationships is the growing presence of lots of buzzwords surrounding this subject.
In reality, my guess is that more folks have married Kardashians than there are organizations that have become seriously engaged in building true relationships with donors.
The buzzwords and talk signal that ‘donor engagement’, ‘donor experience’, ‘donor loyalty’ are supposed to matter. In practice — as measured by expenditures of time and money — they really don’t.
Donor loyalty for most organizations is a one-way street. Donors are expected to be loyal to the organization. Sadly, the idea of the organization’s duty of loyalty to the donor is a passing thought at best and an annoyance at worst.
The central point of my book, Retention Fundraising: the new art and science of keeping your donors for life, is that real human relationships take time and effort. Not only time and work, but consistency and reliability — the fundamental pillars of trust, on which donor and all human loyalty is grounded.
Loyalty and commitment are powerful emotions, and in the case of donors can mean as much as an average of 130% more value in a donor base. But organizations seem to want to get loyalty and commitment on the cheap.
Although technology reduces the cost of building relationships most nonprofits simply don’t want to bother. In post after post Tom and I’ve tried to drive home the necessity of focus and work when it comes to improving loyalty, retention and lifetime value.
From Fixing Donor Experiences to offering a New Feedback Tool. Free. Forever, we’ve attempted to roll the rock up the hill.
So, while fundraising managers exalt in their latest creative acquisition techniques and special appeals efforts, dissatisfied and frustrated donors are pouring out the exits, because no one’s paying attention to the organizational stepchild called ‘Donor Relations’.
Since Tom and I’ve obviously been unable to break through on this vital topic, let’s give Penelope Burk a shot. In a recent post last week, the author of Donor-Centered Fundraising asks, “Does Donor Relations Matter?”
Specifically…
…”Can the value of donor relations (and by extension, donor relations staff) be objectively measured?”
…”Are those measures reliable indictors of fundraising success?”
Penelope considers ‘donor relations’ as anything other than fundraising appeals. Meaning thank you letters, update communications, impromptu phone calls and a host of related human touches.
She argues persuasively that “donor relations is singularly responsible for fundraising profit.” So does The Agitator. See our post on Attribution.
Penelope goes on to point out, and I don’t want to put words in her mouth but can’t resist, that donor relations folks should not be treated like the mad uncle in the attic. The donor relations staff is an organization’s central profit producer. To treat it otherwise is pure idiocy.
Listen up! Because this is a key part of Penelope’s and The Agitator’s point when it comes to donor relations: “The Ask Only Works Once.”
Here’s why according to Penelope:
“According to donors, the ask is the critical trigger that turns potential supporters into active donors. But once they are acquired, asks give donors the opportunity to answer the question, “Will you give again?” but that answer is always decided long before the ask is made. The decision to give again (or not) and to give more (or not) is the product of the particular mix of stewardship options that is offered to donors in the down time between appeals. Donor retention and average gift value are, therefore, the concrete bottom-line performance measures for the donor relations staff.”
Take the time to read Penelope’s post in full. Not only does she outline — and chart — how to measure donor relations activities from the standpoint of ROI, she also has links to her advice on how best to secure the all-important ‘second gift’.
Come on, Agitators, let’s really get serious about this business of donor relations. So much is at stake.
What are you really doing — seriously — about it?
Roger
P.S. I want to be clear that there are plenty of folks like Tom Ahern, Jeff Brooks and others illustrating how to make copy and communications donor-centric. And that is truly valuable.
But when you assign a junior assistant intern to answering the donor service lines at lunch or have your donors listening to a recording that endlessly assures them — ‘Your call is important to us’ — you need to be rethinking your priorities. Without putting donor relations at the top of your list, all that good copy and creative is simply going down the drain.
In terms of the performance of donor relations staff, wouldn’t you also want to include a metric on legacy giving? Especially since research shows that bequests often come from donors whose gift is quite low — and that in the 4-5 years preceding a gift, they often stop giving altogether. Maybe that overall donor retention calc would offset it?
Best line of the article: “The decision to give again (or not) and to give more (or not) is the product of the particular mix of stewardship options that is offered to donors in the down time between appeals.”
I have encountered few simple donors who want a ‘relationship’ with a charity that they support, and creating commitment is not down to fundraisers alone.
The charity needs to be well run and demonstrably making a difference. Everyone in the organisation needs to understand how important fundraising and donor relations are.
And everyone who is involved in delivering the charity’s mission needs to know the importance of having feel-good stories to pass on to their fundraisers.
Maybe it’s because my work has been with local/regional organizations, not international ones, but I do think there are plenty of donors who want a relationship. They’re the donors who are proud of being donors. Who think of themselves as important to the organization. They’re emotionally tied to the work – and to the people there. (By the way, gift size isn’t really a factor in this. The $5 a year, every year little old lady? The one who sends a hand-written note with her gift? Better believe it’s important to her!)
But we don’t decide what their relationship will be. We can’t force it. But we’ve got to be available for it to happen. Open to it.
Roger’s comments about phone lines are one great example. Another is when you can’t even find staff names or contacts on a website. Nothing says “just send us the money and then go away” like that!
Roger,
Enjoyed your post this morning.Having worked in the field over the last 30+ years,reaching out to our donors is so important.I am amazed when donors tell me about donations that they have made to various organizations and the fact that they haven’t even been thanked.
I have developed many donor relationships over time because I reached out to thank the donor via phone and snail mail and began to build a relationship because that donor had a belief in the organization.The “personal touch” can go a long way, since there is so little of it.
I agree with Mary and Gary. Our little organization has a one person Donor Relations Department… me. But over the 13 years I’ve been here, I have developed many personal long-distance relationships with our donors. Donors often send personal notes to me with their donations or they put my name on the envelope because I am the one they hear from. They tell me when they have a new baby, or a loved one dies, or if they are going through a rough patch and need to discontinue donations for a little while. Whether it is the 92 year old lady who has been giving $10 per month from the little she has since 2003, or the bipolar man in his 30’s who lost the mother who helped keep him going, but faithfully gives $50 per month to help the children, or the mother who gives $10,000 per year whose teenage son suddenly lost the use of one arm and had to go through months of testing, they like having a person they can contact with a question or a concern or just to hear they are cared for and know they will be heard. I try to touch bases at least once a year with each donor and send them at least one personal email or greeting card, letting them know how much we appreciate their support and changes they have helped make in the lives of the orphan children we care for. It makes a difference… helps them to see that they are valued and their donations are making a life changing difference and that we appreciate them. As we grow, and we have had steady growth for 15 years, it get’s a little more difficult to make personal relationships and sometimes I mess up, but I love this part of my job.