Flat Earth Fundraising — Wanted: A Roll Of Human Duct Tape

December 13, 2011      Roger Craver

The term ‘multi-channel integration’ has garnered more ink, conference bookings and webinar time this year than any other concept in our trade.

But … the more attention it gets, the more I keep wondering: If so many are touting the glory of this new fundraising heaven, why are so few organizations actually making it through the pearly gates of multi-channel integration to receive its heavenly rewards?

In a word: silos.

The silo, or more specifically, the information silo is by far the biggest barrier to effective acquisition, donor retention and upgrading.

We’re all painfully familiar with the daily nature of the information silo. The online folks do little to coordinate with offline fundraisers … major gift fundraisers look down on direct mail fundraisers and vice-versa … communications folks and fundraisers are seldom on the same page where messaging is concerned. And on and on.

The result: a fundraising/communications/data management system that is pathetically incapable of reciprocal interaction and reinforcement. A territory-oriented pariah that drives away donors, hampers return on investment and camouflages incompetence.

Happily, a number of enlightened nonprofit CEOs are waking up and taking action. Groups like the Humane Society of the United States, Operation Smile, Child Fund International, American Cancer Society and St. Jude have created entire departments with trained professionals focused on donor care and experience. Some even have, by whatever title, created  the position of Chief Donor Officer.

Frankly, I can’t think of a more important new position for survival and growth of a nonprofit in today’s world.

By identifying and giving authority to a high-level person who is responsible for integration – one who has line authority across the various departments (communications, marketing, online, fundraising, etc.), the organization is signaling that its top priority is giving the donor what the donor wants and needs.

Remember, for every 100,000 donors in your donor base, there is the potential of increasing revenue by $10-$20 million at very low cost, just by improving donor commitment.

I can already hear the departmental wagons being circled and arguments against the position being prepared – “We already do this” … ”We can’t afford it” … “We really have to be autonomous because ‘those other people’ aren’t specialized enough” – you know the game.

Is orienting the donor touch-points around what donors want, need and expect too much to ask? Is there an argument for anything but this? There must be one out there, and a powerful one at that, because far too few nonprofits have anything close to this donor-centric culture or organizational structure.

Whatever arguments for maintaining the status quo are marshaled against the appointment of a Chief Donor Officer, the reality in this world of plummeting acquisition and retention rates is that they don’t hold water. The fact is that donors own your brand, not you. They also hold the success or failure of your mission and programs in their hands.

Take a chance. Suggest to your CEO or Board that hiring a Chief Donor Officer should be considered. Be candid. While such a position might seem frivolous to a CEO who probably believes the organization already focuses on donors, point out that this focus usually involves a proliferation of tactics and projects, but the problem is they don’t amount to anything significant for donors.

What’s really needed is a roll of human duct tape who can strategically align all the different tactics and projects and make sure that all boats are being rowed in the same direction – the direction that meets your donors’ needs and expectations.

Roger

P.S.   For a detailed explanation of how and why this function is so important I commend this excellent post by our colleague Kevin Schulman and his discussion of the work of Jeanne Bliss, a customer relationship guru with proven credentials. It will give you lots of helpful insights and tips. Although the ‘customer’ term means she is orienting her argument and focus on the commercial sector, don’t dismiss it out of hand. Especially take a look at the key questions she poses and substitute ‘donor’ for ‘customer’. See also: Jeff Brooks’ Your silos are going to kill you.

3 responses to “Flat Earth Fundraising — Wanted: A Roll Of Human Duct Tape”

  1. Ah, yes, the silos. Just commented on Jeff Brooks article too. I’ve been telling people for years now that we need to knock the silos down, lay them side by side, and create one big corridor through which everything flows. I blogged around the subject last month; actually think we’re like hamsters in self-centered cages running ’round and ’round on a treadmill going nowhere fast.
    Thanks for highlighting this issue! http://clairification.blogspot.com/2011/11/round-giving-in-flat-world-how-do-we.html

  2. I couldn’t agree more. It is the biggest barrier holding organizations back and will only get worse. I’ve also posed a few blogs on the subject.
    http://www.grizzard.com/why-are-some-charities-more-successful-at-fundraising/

  3. Jay Love says:

    Being an old systems and CRM CEO I had to respond here. It was like you were taking a few pages from every speech I have delivered in the last 10 years in the non-profit world of fundraising! Any time NPO’s do not try to truly consolidate their information systems into one silo, preferably from one vendor and it’s integrated partners, silos are going to form. You cannot have a fundraising system of one type, an email system from another unrelated vendor and a web site content management system from another and a gala auction system from another and on and on without creating silos. This confuses and downright frustrates the donor!

    For gosh sakes recruit a corporate CIO on to your board and see if they can help. It can be done without spending an arm and a leg . . .