The Year For Acquisition
I’m writing this post with great trepidation.
Because I want to float the idea that 2017 should be a year for unprecedented donor acquisition.
But as Agitator readers well know, deep down Roger and I continue to believe that too many fundraisers and organizations inexplicably, indefensibly neglect donor retention.
Consequently, it almost pains me to write a post saying: ‘Put the pedal to the metal’ this year on donor acquisition. Because I know how much of that acquisition success will be squandered via the leaky buckets about which Roger warns so effectively.
So promise us … before you invest in a major boost in your acquisition program in 2017, please first revisit, update, invigorate, deepen your donor retention efforts.
Now to acquisition. And I’m talking principally to fundraisers in or serving advocacy organizations.
I expect the political and emotional shock of the impending Trump presidency will not lessen. It will intensify over the coming year, spreading well beyond the relatively small traditional universe of donors who care about and follow ’causes’ and politics. More and more people will be upset, angry, fearful — craving guidance and leadership and hope from the nonprofit sector.
Smart fundraisers should seize the opportunity and be preparing to channel and harness their deep alarm … offering them a way to connect and respond.
Smart fundraisers (while getting their retention house in order) should be:
- Scrambling to find every last additional dollar they can invest in expanding (not wildly, but aggressively) their acquisition efforts. [I stress ‘invest’ … this is the year to sell that concept to cautious boards, especially if they’re hoarding funds in low-yield endowments.]
- Working to activate and empower current donors as fundraisers, pushing through the conventional barriers to identify and attract new prospects via social media and peer-to-peer ‘evangelism’.
- Educating and equipping their organizations to use the best available techniques and recruitment technologies — from predictive modelling to the mobile screen.
- Pressing the ‘program’ staff to hone their priorities, their remedies, their calls to action … and collaborate with them to compose the stories that will communicate the needs and ability to make a difference most powerfully.
- And doing all these things with emotion so strong that it streams from every hope-bearing message the organization delivers to donors and would-be donors in the months ahead.
Does this describe your commitment to donor acquisition for the coming year? If not, why not?
Tom
7 responses to “The Year For Acquisition”
Behavioral Science Q & A
Integrating an individual giving appeal with other communications from a charity can have both positive and negative effects, and the outcome largely depends on how it’s executed. Advantages of Integration Brand Consistency: Maintaining a consistent appearance and messaging across all communications can reinforce the org’s brand identity and strengthen brand recognition and trust among your […]
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I’m not aware of any in-market tests specifically comparing recurring vs. gift frequency language. I suspect the answer might not be the same with all gift frequencies, nor with all people. It sounds like a great opportunity for you to test and find out what works for your audience. Based on the literature, here’s a couple […]
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Based on what we know from existing data, those renewal notices can actually be pretty effective in getting people to donate. They tap into our psychology – creating a sense of urgency, reminding us of past support, and using personalization to make the message hit home. They’re playing on our natural tendencies to feel obligated […]
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Interesting question. I had a quick look at the testing done on this topic. On the positive side, in all cases, over half of donors decide to cover the fee. In some cases, it goes as high as 65%. Not a negligible percentage at all. Here’s another test from iRaiser showing consistent results (see point […]
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There’s just one thing to consider when designing a supporter journey: the supporter. More specifically, you need to take into account: Who the supporter is i.e. their identity, which is the reason they support this cause, and their personality, which describes the way they “see” and process the world. These will determine the kind of […]
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I’m not an expert in this but a quick search surfaced this article on the effect of tax reforms on 2019’s charitable giving. The researchers didn’t find a reduction. Actually, they observed an “increase in charitable contributions in 2019, even with the lower tax rates and the dramatically smaller number of taxpayers who itemize their […]
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Excellent points Tom. And I would add that your recommendations could also apply to many other sectors such as social services, animal welfare, healthcare and higher education for a different reason.
Giving typically trends with the GDP and the current GDP is the highest it’s been in two years. According to Kiplinger, expect GDP growth in 2018 and 2019 to be spurred by the fiscal stimulus of tax cuts and infrastructure spending. Instead of the 2.2% growth we previously expected for those years, we now look for the economy to expand by 2.5% to 3%, depending on how much of Trump’s program is actually approved and whether Congress enacts other spending cuts to reduce the deficit.
Strong consumer spending, driven by wage and employment gains plus the buoyant stock market, is likely to be the main pillar supporting the economy next year. And with consumer confidence at a 13 year high, charitable giving from conservative, more traditional donors should remain strong in 2017.
I’ll buy Tom’s take on a banner year for advocacy organizations opposing Trump. But I’m not so sure about Chip’s take on other sectors. I think this is going to be a year of constant ethics scandals and political food fights and a lot of nervousness, uncertainty and outright fear of an unhinged, unpredictable, race-baiting demagogue in The White House. That’s generally not a good environment for new donor acquisition. Time will tell. Meet you back here same time next year and we’ll see who was right. Winner gets a steak dinner. And Mexico will pay for it.
Thanks for the inspiration! As Rahm Emanuel says, “You never want a serious crisis to go to waste.”
I’ve actually had a recent experience that validates your thinking. It’s anecdotal, of course, but I think it’s worth sharing. We are principally a child care/preschool/after-school enrichment center. That said, advocacy has to be part of our mission. I received a phone call on Tuesday from a woman who has gathered 20 women friends who feel called to “do something” in the wake of the election. They have committed to do both volunteer service and advocacy together. Needless to say, we are engaging this group!
Here’s an issue we run into: Some of our board members and close friends are very committed to our mission, to giving generously, and to reaching out to others to get support for us. But they are uncomfortable with advocacy. They are ambivalent about that part of our mission. Any tips on educating and/or inspiring them?
In response to Shawn’s comment, I believe that advocacy (even in the current environment) can be a double-edged sword. I work with a client that currently has a mission that 100% of the donor public can support. They are desperate to amp up the advocacy side of things, but I’m concerned it could lessen their appeal to 50% of the population. Not at all sure that is a good trade.
Thanks Tom! So true! I want to see more of this:
“The emotion so strong that it streams from every hope-bearing message the organization delivers.”
Organizations that write with power and emotion are always the winners in fundraising. It’s not only advocacy groups who should use emotion, but almost all organization need to find it and send it out!
For Shawn: refer to National Council of Nonprofits for tools, resources, and explanation of governing law (lobbying by 501C3 orgs is unquestionably legal, often a misapprehension of volunteers and a consequent hurdle). Go here to start: https://www.councilofnonprofits.org/everyday-advocacy. I can testify from years of experience that shy and/or otherwise reluctant volunteers often find the act of voicing their commitments to people in power to be very rewarding — exhilarating even. Soldier on!
This is a great encouragement and recommendation. I serve as a VP of Philanthropy for a statewide human services ministry and we are actively researching best practices and consultants who help implement effective donor acquisition strategies, with particular focus/specialty for social/human services nonprofits like ours.
If anyone has some key recommendations of consultants or other groups who I could be in contact with, I am seeking this type of recommendation currently.