Show Me Your Budget
As we near the end of 2016 some folks will be checking the rear-view mirror to determine how they did and whether they met their goals. Others will be looking out the front windshield and focusing on their plans and goals for 2017.
Regardless of the direction in which they’re looking, there’s a pretty good chance that most fundraisers will be talking about or at least paying lip service to concepts like ‘retention’, ‘donor experience’, ‘donor journey’ and the evergreen ‘donor centricity’.
And I’m equally sure that most are at least partially aware of the importance of donor loyalty and donor satisfaction. As in: a ‘highly satisfied’ donor — one who gives you five out of five stars for satisfaction — is more likely to give and give again.
So, it stands to reason that the caring fundraiser and the organization he/she works for will of course plan and budget to undertake those activities that move its donors up the scale toward higher commitment/loyalty and satisfaction.
Actions that boost the donor’s positive attitude toward the organization. Actions like prompt and proper thank you’s … actions to determine the donor’s identity and why she/he gives to the organization … actions that give the donor the opportunity to make his/her views (positive or negative) known, and much, much more … like making it easy for the donor to use your website or donation page.
And because these fundraisers so value their donors, their organizations’ budgets will, of course, reflect this care and concern for donors.
Tom and I can only hope this is the case. But, frankly we’re a bit skeptical.
So, we recommend applying the ‘Biden Rule’ just to be sure.
As US Vice President Joe Biden says, “Don’t tell me what you value. Show me your budget, and I’ll tell you what you value.”
Does your budget reflect the deep care and concern for donors that you claim?
Roger
5 responses to “Show Me Your Budget”
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I like it! The organization’s budget reflects its values and beliefs and focus. I wonder: Does your budget include professional development for staff? Does your budget include sufficient staff (including fundraising staff) to get the right job done well?
Bravo!
Brilliant!
Of course, it’s almost impossible to deliver stellar donor care when you’re coming from the scarcity/lack mindset so prevalent in our sector.
The “Biden Rule”, I really like that. I have one thought on why budget’s don’t match up with rhetoric…
I wonder if it is because the leadership at these organizations may not fully comprehend the “investment” they are making when they allocate budget for “commitment/loyalty and satisfaction”.
It is a lot easier to comprehend donor acquisition, “we spent $5 to acquire that $50 donation,” than it is to understand a more long-term investment in a donor, “we spent $xx to retain and steward a donor with a lifetime value of $x,xxx”.
The concept of donor lifetime value (the amount of revenues attributable to a donor over the lifespan of their giving) is hard to grasp, and without it nonprofit leadership will be sheepish to wade into “loyalty” budgeting.
Zach, You’re absolutely right. A fundraiser who doesn’t understand Lifetime Value can’t explain much of any donor-focused investment to the CEO or Board or anyone else. You might want to pass around this Agitator post on LTV as it relates to acquisition. http://www.theagitator.net/nonprofit-management/donor-acquisition-series-2-lifetime-value-the-key-metric/