The High Cost of Undervaluing Gratitude
Today I’ll avoid a detailed foray into important topics like donor identity, commitment and segmentation and instead focus on the simple, human concept of gratitude. With this question: “Why do so many nonprofits fail at the most basic task of saying “Thank You” to their donors?”
Over and over The Agitator has railed about the importance of the Thank You. To make the point on its importance we’ve noted the research indicating that failure to thank donors is a top cause of attrition….we’ve guided readers to Lisa Sargent’s free and magnificent Thank You Letter Clinic on SOFII…. And my book Retention Fundraising devoted a chapter to “Five Easy Retention Wins” and noting that saying “Thank you” is Retention Win #1.
AND STILL….Penelope Burk reports in Donor-Centered Fundraising that only four out of ten donors say they receive a thank-you letter after they make a donation. No wonder–as countless studies by DonorVoice, Bloomerang, and Indiana University and others indicate that up to third of nonprofit donors head for the exits feeling unappreciated.
So, why do fundraisers so ignore engaging in this fundamental, inexpensive and simple act of gratitude?
In an article citing behavioral science research in the journal Psychological Science, The New York Times ( in You Should Actually Send That Thank You Note You’ve Been Meaning to Write ) says the importance of the whole process of gratitude—by those who express it and those who receive it—is under-appreciated.
- So few people send thank you notes because the underestimate or “miscalibrate” the positive effect the note will have on the recipient. (“They think it’s not going to be that big a deal” according to one of the researchers)
- Senderstend to overestimate “how insincere the note may appear and how uncomfortable it will make the recipient feel.
- BUT…after receiving a thank-you note many recipients were “ecstatic” scoring a happiness rate of 4 out of 5.
So, with behavioral science and the experience of countless Agitatorreaders who have attested to the fundraising power of the “Thank you” what’s stopping you from sending prompt and genuine letters of gratitude?
Money? Nonsense. Just compare an attrition rate of 30% as unappreciated donors stop giving with the $1 or so it costs to show them your appreciation. Or if you’re looking for immediate pay back consider this impressive stat from Angel Aloma, Executive Director of Food for the Poor indicating that more than 20% of the organization’s multi-million $ income stems directly to their thank-you letters.
Are you undervaluing the value gratitude.
Roger
Roger, thank you for shouting out the thank-you clinics 🙂 All Agitators should absolutely take a few minutes to read that Psychological Science link you provided in the post. It gets to the heart of a whole heap of the psychology behind why nonprofits don’t thank (and why they should anyway):
– the senders (aka nonprofits) consistently UNDERestimated how positive the recipients felt about receiving the thank you, and,
– the senders (aka nonprofits) also consistently OVERestimated how awkward the recipients felt about receiving the thank you.
And… ready? The senders (aka nonprofits) consistently UNDERestimated how warm and competent the recipients perceived them to be.
In other words, your donors: don’t think thanking is corny, feel really good to be thanked, and (bonus!) see you as a shining star for doing so.
But please… make it a beautiful thank you, not a starched-shirt form letter.
As the authors of the study themselves said, “it’s a powerful act of civility.” Why treat it as anything less?
Thanks again, Roger.You are a champion defender of the thank-you.
xLisa
Organization not only underestimate the value of thanking donors, but the value of donors (and volunteers) themselves.
I believe many of them have forgotten that without donors (and volunteers) the work they do would grind to a screeching halt.
Thanking donors is the most FUN part of our jobs. I’d much rather do that than write a grant proposal. 🙂
Thanks for another reminder, Roger. We can never have too many. My experience has been that when nonprofits are failing to invest in gratitude – and great stewardship IS an investment – they’re also failing to truly invest in their staff.