Starting Over #8 — Plan To Be Generous To Your Donors

July 25, 2016      Roger Craver

Although I doubt it’s intentional, far too many fundraisers spend far too much time and money biting the hands that feed their organization.

It happens every day. Poor donor service. Lousy communications. Little or no donor recognition … sometimes not even a simple thank you.

Of course this pitiful lack of concern for the donor is reflected in the equally pitiful retention rates of most organizations. On average 7 out of every 10 new donors hit the exits by the end of their first year.

Is it really too much to show donors at least the same measure of generosity we assume — and expect — they’ll show us?

restartOf course there are plenty of bean counting CFOs and CEOs who’ll quickly say “we can’t afford to do X, Y or Z” when it comes to treating donors as the valuable asset they are. Meeting this year’s bottom line is paramount. The future be damned.

If you’re working with a cheap — or worse yet — ignorant CEO, Board, CFO or client, you’ll want to send them this piece from Eddie Yoon of the Harvard Business Review’s Blog Network. It’s about the remarkable turnaround of Netflix. Read and heed.

As you may recall, five years ago Netflix faced a tsunami of cancellations thanks to a bonehead decision of its founder. Like so many nonprofit CEOs, he figured he had a terrific service, could raise prices and eliminate services. The customer be damned.

In an Agitator post at the time, I warned of the pending disaster, and noted that all too many nonprofits follow similar paths.

Netflix’s founder saw the light and transformed Netflix into a ‘generous’ company. Dynamite programming. Lots of significant benefits. All leading to great viewer experiences and, in turn, positive buzz and a flood of new subscribers.

In return for the company’s ‘generosity, this month Netflix reported a banner 2nd quarter in terms of its earnings — a 57% increase over earnings for the 2nd Quarter of 2015.

Take time to read — and share — Eddie Yoon’s HBR piece for the full story, plus learn how other ‘generous’ companies like Nordstrom’s, Gillette and Southwest Airlines place consumer-centric behavior at the heart of their growth strategies.

Then, take some time to figure out what simple acts of generosity your organization can and should offer your donors. I can guarantee you it isn’t another set of mailing labels, four more tote bags, or an umbrella. (See our post on premiums!)

Maybe it’s an out-of-the-blue ‘On this 5th Anniversary of your first gift, thank you’ … or maybe an advance copy of the annual report … or a copy/video of a field report … or a pack of press clips or stack of photos showing what your organization has accomplished, thanks to the donor.

Amazing things happen when organizations stop treating donors like some human ATM to be milked and milked, and begin reciprocating with generosity of their own.

What are your favorite acts of generosity toward donors?

Roger

 

 

 

 

2 responses to “Starting Over #8 — Plan To Be Generous To Your Donors”

  1. Pamela Grow says:

    Surprise and delight! Great post, as always, Roger. Thank you.

    Some of the ways my subscribers and students are showing generosity toward donors include “cookie calls” – dropping hot, freshly baked cookies off to their donors – anniversary cards, and personal deliveries. You can read more in The Donor Love Toolkit https://goo.gl/r7QQqz

  2. mike says:

    Roger,
    As Winston Churchill said, “Never, Never, Never give up!” One day your warnings will be heeded and implemented! On a daily basis, I’m becoming convinced the “target problem” is board leadership and the lack of accountability of the nonprofit C-Suite.

    My greatest joy is my free consulting with a 1-year-old nonprofit, who provides residential housing, counseling, and total care for 5 homeless and single moms with 11 children. The Founder is 30 and a mother of three. She is in the process of “extreme makeover” with her board! It’s exciting!!!! She was in charge of benevolence at her church. She finally saw that 80% of requests came from these single/homeless moms. She asked, “Why isn’t someone helping them?” Typically, when a person asks that kind of question, the answer is “YOU asked-just do it!”