what donors want!

What Donors Want!Mark Moshier, CFRE

Team Leader, Council Fund DevelopmentBoy Scouts of America, National Council

Donors Want 2 Things

They want:

• to feel good…

• about what their money has done.

-Tom Ahern

Your Job

• Deliver Accomplishments

• Induce emotional gratification

-Tom Ahern

Donor Survey: Why Make a Gift?

Very ImportantBelieves that the charity is well-run and efficient 82%

Making life better for the less fortunate 57%

Making a difference in your own area or community 55%

Fulfilling a desire to give back to society 46%

Can direct exactly how donation is going to be used 40%

Addressing an illness that afflicted a loved one 30%

Helping to construct a lasting building/structure 19%

Creating income tax deductions 18%

Donor Motivation for Making Gifts

1. Philanthropy2. Gratitude3. Honoring Loved Ones4. Nonprofit as Family Substitute5. Tax Benefits 6. Financial Benefits 7. Social Standing and Prestige 8. Recognition

2009 charitable giving Total = $303.75 billion

Types of recipients of contributions, 2009 Total = $303.75 billion

Our Environment

◦ Philanthropic Climate Competition for charitable dollars

Donor awareness

Donor expectation

What Donors Want

The number of 501(c)(3) organizations 2000–2009

Our Environment

◦ Philanthropic Climate Competition for charitable dollars

Donor awareness

Donor expectation

What Donors Want

Factors for Success

◦ Organization Factors

Board Strength

Case for Support

Organization History

What donors Want

Glossary definition - case for support A written statement of why a donor should consider

supporting your organization.

Telling your story through the Case for Support because the case should be just like a good story.

The case should therefore be: *Enticing, captivating, persuasive and stimulating!

Case For Support

This means your case statement has to:◦ Be and feel larger than your organization. ◦ Show how you meet a major public need. ◦ Be moving and personally relevant for reader. ◦ Be credible and convey a sense of genuine

urgency.

Key Point: Case should be told from donor's viewpoint.

Case for Support

1. Why us?2. Why now?3. Why should a donor care?

Three Big Questions

-Tom Ahern

Why us?What are we doing that is so uniquely

worthwhile?

-Tom Ahern

Not sure why you matter?Pretend you’ve gone

away.-Tom Ahern

Why Now?What’s the big hurry? What Changes? Why is

this crucial now?

-Tom Ahern

Why you?“You” is the donor. Have you

madethe donor “my hero”?

-Tom Ahern

“Why in the world would Igive away my hard-earned

money to you?”

-Tom Ahern

Donor Centered Fundraising

Author – Penelope BurkCygnus Applied Research, Inc.Burk & Associates LTD.

“Donor Centered Fundraising” by Penelope Burke, is based on a survey of hundreds of charities and donors◦ Ended mid-2003

Donors in the survey supported an average of 25 charities each year

WHAT IS IT BASED ON?

1. Prompt, personalized acknowledgment of their gifts

2. Confirmation that their gifts were used by the charity as intended

3. Measurable results about the impact of their gift before being asked for the next gift

THREE THINGS DONORS WANTED THE MOST

– Penelope Burke

1. Impersonal acknowledgements2. Acknowledgements received more than

two weeks after the gift3. General appeals with few measurable

results

THREE THINGS DONORS DIDN’T LIKE

– Penelope Burke

In other words, donors want:◦ 1. Acknowledgement◦ 2. Recognition◦ 3. Information

Get donors to see a picture of who you are and what you do.

THREE THINGS DONORS WANTED THE MOST

– Penelope Burke

The best “thank you” letters acknowledge the human being who gave the gift◦ Warm, personalized◦ Say more about the person than the gift

75% of all “thank you” letters start out:◦ “On behalf of…” or “Thank you for …”

First sentence of the letter is extremely important

THANK YOU LETTERS

– Penelope Burke

“What does a donor feel like when they give?

This is what you should keep in mind when acknowledging gifts

Warmth of the “thank you” should reflect the warmth the donor felt when they made the gift

THANK YOU LETTERS

– Penelope Burke

Billing Inserts

Donors like newsletters◦ But do they like yours?

NEWSLETTERS

– Penelope Burke

68% of donors prefer a one-page newsletter◦ They feel that they would know and learn more

about the charity

69% of donors say they don’t have time to read the newsletters they get now

NEWSLETTERS

Donors like photos, but they should be “your program in action”◦ Don’t show people getting awards◦ Don’t show people shaking hands◦ The “Big Check”

If you only send your newsletter to donors, it won’t attract new donors

NEWSLETTERS

– Penelope Burke

Donors do not like “doo-dads” and “knick-knacks” for recognition◦ 86% of individual donors do not like token gifts◦ 100% of corporations do not like token gifts

What about plaques?◦ Individuals do not display plaques/certificates◦ But corporations DO display them

RECOGNITION OF GIFTS

– Penelope Burke

But individual donors DO like to receive photos – as long as they are photos of the program at work

◦ They don’t really want photos of themselves

RECOGNITION OF GIFTS

– Penelope Burke

85% say they would make another giftAND

86% say they would make a larger gift… if they received what???

A THANK YOU PHONE CALL FROM A BOARD MEMBER

THE BEST RECOGNITION OF ALL?

– Penelope Burke

Phone Calls

Donation Amount Acknowledgement Action Level of Interaction

Up to $25 Computer generated letter or receipt

Impersonal-minimal effort

$25.01 to $50 Computer generated letter receipt along with more meaningful information

Information Sharing

$50.01 to $100 Computer generated letter receipt along with more meaningful informationPhone call from fundraising staff

Personal Interaction with staff

Donor Acknowledgement Plan

Donor Acknowledgement Plan

$100.01 to $250 Computer generated letter receipt along with more meaningful informationPhone call from fundraising staffHandwritten note from Scout Executive

High Level Staff Personal Interaction

$250.01 to $500 Computer generated letter receipt along with more meaningful informationPhone call from fundraising staffHandwritten note from Scout ExecutivePersonal thanks from a board member

High Level volunteer personal interaction

$500.01 + Computer generated letter receipt along with more meaningful informationPhone call from fundraising staffHandwritten note from Scout ExecutivePersonal thanks from a board memberNote from non-development staffInvitations to special events or activities

High-Touch attention and cultivation

Donor Acknowledgement Plan

“Asking” is not the same as “communication”

70% of donors would give more if communications improved

DONOR LESSONS

– Penelope Burke

Consider “flagging” first time donors, and have Executive Director and Board member thank them◦ Greatly increases chance of second gift◦ Many donors say they use first gifts as “tests” to

see how the charity responds A second gift is more likely to be more in

line with a donor’s giving capabilities◦ Invest in “low level” donors

DONOR LESSONS

– Penelope Burke

It is always less expensive to try and keep existing donors, than to acquire new ones or recover lapsed donors.

DONOR LESSONS

– Penelope Burke

Today’s donors require Seven Contacts between gifts

Donors want a timely acknowledgement of their contribution

Donors want a personalized “thank you” for their gifts.

Seven Contacts Approach

My Sources

Penelope Burke- Cygnus Applied Research◦ “Donor Centered Fundraising”◦ www.cygresearch.com

Tom Ahern- Tom Ahern and Ahern Communications◦ www.aherncomm.com

Marshall Howard- Marshall Howard Associates◦ “Lets Have Lunch Together”◦ www.marshallhoward.com

Acknowledgements

Mark Moshier, CFRETeam Leader, Council Fund DevelopmentBoy Scouts of America, National Councilmark.moshier@scouting.org

www.scouting.org/financeimpact