Some of the best parts of launching this little experiment
last week have been the links some of you have sent me to other blogs or
articles that have you thinking.
Yes! There is a big world
of smart people out there analyzing and philosophizing about philanthropy and
I'm thrilled for any and all suggestions you have for expanding my world.
As Love writes, the recent Project report shows that nonprofit donor retention
is actually rather dismal: a 41%
donor retention rate across the nonprofit sector pales in comparison to a 96%
customer retention rate in the commercial for-profit world. While I’m still trying to wrap my head
around what, exactly, it means for the for-profit world to have a 96% retention
rate, the difference is nonetheless stark. Moreover, the report estimates that increasing the nonprofit
sector's donor retention rate could result in significant fundraising
gains.
Love's advice is for every nonprofit to know their
statistics – what's your retention rate, which donors return every year, who
doesn't, etc. Good advice, for
sure. But let's remember data
analysis is only a starting point and the real rubber meets the road when we
try to think about what to do to change our stats. And, that has me thinking and pondering
on this way-too-beautiful a sunny day here in the Methow Valley – so if I sound
overly impatient or antsy in what follows, forgive me for outside is calling!
I started by searching around the web for theories and
approaches to donor retention. A whole army of fundraisers stand
ready with lists promising "10 Things to Keep Your Donors," or
"The 5 Steps to Lifelong Donors," or "The 25 Must-Do's to Keep
Your Donors Engaged" (full disclosure – I made up those titles, but trust
me, google donor retention and you will quickly find yourself swamped in a
series of short, pithy lists to guide you to philanthropy's silver bullet).
While many of these lists include very smart and appropriate
advice (like PLEASE always thank your donors and show impact before you ask
again), they leave me frankly a little depressed. After reading enough of them, I could all too easily
conclude that fundraising is just a series of checklists or hurdles to cover
before I achieve success and have a donor engaged to the
point of making a long-term and significant gift. My job as a Development Professional, it would seem, is to
"move" donors along these set milestones and assure consistent,
generous support.
Wow, does that NOT feel like how I approach my passion. Yes, there are basic protocols (like
thanking, reporting back, etc.) that if not done, will ensure the loss of a
donor. But, I don't believe there
is one recipe, no checklist, no five things that guarantee the commitment of a
long-term donor. I respect all of
our supporters way too much to assume that.
Thank goodness we've had smart thinkers like
Penelope Burk
(and many of you!) through the years to remind us that fundraising is not
transactional, but is all about relationships. Like most fundraisers I know, I absolutely agree. Why is it though, that even this rather
deep philosophical concept too often gets boiled down to a series of
utilitarian steps. Steps with a more personal flair, for sure, but steps
nonetheless. Listening carefully
to your donors becomes a step, asking the right questions, tailoring your
message, etc.
It reminds me of the time I led a workshop session on how my
organization engaged donors in a really big capital campaign and in the midst
of explaining the underlying philosophy, I shared examples of some of the
materials we created. Only after
someone came up to me at the end of the session to say, "thank you so much
for the idea of sending donors postcards of the land they have protected,"
did I realize I had failed in conveying the central point. It's not about the design of your card
or the timing of your appeal or the font you choose….the magic is in finding a
way to say clearly and believably you, donor, have made a real impact. The postcard is just the vehicle.
Maybe I'm crazy, but I've always tried to approach the whole
process in the way that I'd like to be treated if I was the donor. I wouldn't care about receiving 7
contacts before being asked or at least one email update a month. For me, it all starts and ends with
authenticity.
I genuinely believe that all of the donors I have the honor
to work with are partners in my organization's efforts to make the world (or at
least one piece of the world) better.
We are in this together. I
have a real passion for my mission and when I reach out to donors, I share that
genuinely – maybe not always in exactly the right words or right way, but what I
strive for is an authentic sense of a shared love for our mission. I also genuinely respect all of our
donors and when I ask them about what matters to them, I actually care. Not just so I can make a note and send
them a follow up card that speaks to their heart, but because I really want to
know what inspires them. I learn
from them. Understanding what
moves them is what gives me satisfaction – the human connection (the
philanthropos tropos, if you will)—in my work.
So whether I am sending a donor a personal email on the day
I saw an eagle try to drown a gull out my office window and it made me realize
how grateful I am that as a donor they keep a place like the Methow alive and
wild, or whether I am sending a postcard to 1000 donors to thank them for
protecting another special place, I think first about how to be genuine in my
gratitude, in my awe at their impact, and in my belief that our work only
happens because so many band together.
I'm sure a fundraiser auditing my process for its retention
potential would be abhorred at the lack of checklists and steps and
programmed-out plans for contacts.
I've tried that and it didn’t work and I didn't like it. Because it didn't feel authentic. Of course, I recognize we need to
communicate, and I readily admit to times when I have missed a good
opportunity, but I try to stay focused on making communications about the
things – little or big – that make our daily work come to life for our donors
so that they truly do feel a part of the organization. Because, and this is the secret
sauce, I believe they are! I can't manufacture those moments to
fit some prescribed timeline. To
work – for every one of our donors to feel connected – those moments and how we
convey them, have to flow.
I believe that when you can do that, your donors will sense
the authentic impact of their giving and they will want to continue to be a
part of your movement—and that should be our goal rather than donor retention.
So sure, I keep track of our donor renewal rates and as
student of economics, I like to analyze statistics and find some comfort in
logic and formulas. But, what I do
is much more art than science, more about connection than calculation. And, that's just the way I'd want it.
What's your take on the essentials for the nonprofit sector
to retain more supporters for our movements? As either a fundraiser or a donor, what do you think lies at
the heart of keeping people engaged?
Maybe we can come up with our own Top Ten List :)