Donor Centered

Fundraising

Presented by:Sonya Campion, CFRE

The Collins GroupBased on the research and principles of Penelope Burk:

Donor Centered Fundraising -- Penelope Burk, Cygnus Applied Research, 2003

www.donorcentered.com

Five Assumptions for today

1) Money, people, and fundraising are changing – know the facts and how they apply to you

2) We have to get past the same 10 people

3) We have to raise money smarter, be more cost-effective, and keep the donors we have

4) This is a profession: We know what works – don’t mess around

5) Donors aren’t asking for much…just good manners before you hit them up again

Sustainable Fundraising: what it is and what it isn’t

• 89% of American give

• But we are losing 90%• 50 % drop off rate after first gift• 30% after second gift• and so on…

Sustainable Fundraising

• Cost-effective and transparent• Acquisition vs. sustaining

It costs 6x more to acquire a new donor than to sustain a current one

• Best Practices: Strategic plan = organizational efforts =

fundraising planBottom line: Donors need to know what

their money is making possible

Our Approach to Today

Donor Centered Fundraising

• Everybody thinks they are a major donor!

• Donor Centered Fundraising -- Penelope Burk, Cygnus Applied Research, 2003

www.donorcentered.com

Donor Centered Fundraising

“Puts satisfying donors’ need for meaningful communication at the top of the agenda”

– Penelope Burk, Donor Centered Fundraising

Paradigm Shift

• How we [need to] view them:A partner in our mission: they have the

money, we have the program. We both need each other.

• How they view us:“People give to organizations that meet

needs, not because they have needs.” » Kay Sprinkel Grace, Beyond Fundraising

Current Fundraising: A Vicious Cycle• Strong direct mail response rates are

between .5 - 1%• On average, 50% of new donors do not

renew • Within five years, 90% will have stopped

giving

Reminder: It costs 6x more to acquire than renew a donor

More work, less to show for it, expensive fundraising

Source: Donor Centered Fundraising, Penelope Burk

Donors Don’t Stop Giving

• They stop giving to you86% of all households giveAverage donor supports 10+ organizationsOver 34% of donors support 20+

organizationsOf these, they really value three to four

• If you fail to meet their expectations, they will go elsewhere

Source: Donor Centered Fundraising, Penelope Burk

How Regular Donors Must Feel

Bummer of a birthmark Hal…

Why Donors Stop Giving To You

Poor or lack of information (46%)Mismanagement of funds (37%)Multiple solicitations (38% turned off –

28% not likely to give again)No progress in mission (28%)High overhead (15%)Negative media (14%)Aggressive fundraising (12%)Other causes (10%)

Source: Donor Centered Fundraising, Penelope Burk

What All Donors Want(BEFORE you ask them again!)

1) Prompt acknowledgement that the gift was receivedTwo weeks from receipt of the gift

2) Confirmation that the money was used in the way they intended it to be used (information)

3) Updates on progress made because of the donation (information)

Charities that provide these three things are “donor centered”

Donor Centered Fundraising

“Donor centered fundraising puts satisfying donors’ need for meaningful information at the top of the agenda, enhancing donor communication, with intermittent recognition designed to reflect the unique aspects of the individual charity.”

Penelope Burk

Donor Centered Fundraising

What if You Give Donors What They Want?

• 93% of donors say they would definitely or probably give again

• 74% would continue to give continuously

• 64% would give more

Source: Donor Centered Fundraising, Penelope Burk

Communicating Impact

• 55% of donors do not receive information on the measurable impact of their donations

• 65% of donors don’t read newslettersContentToo longNo timeGetting 20 newsletters, 4x/year 8 pages

each!

Communicating Impact

• 68% would prefer one-page updates of progress

• Nearly half would like to receive info by email

• 77% enjoy receiving invitations to visit charities they support to see work firsthand

Source: Donor Centered Fundraising, Penelope Burk

Stewardship…how hard can it be?

Three Kinds of Recognition

1) Acknowledgement2) Communication of results3) Recognition

Donors want # 1 & 2Non-profits spend their time on #3

The Power of Personal Thanks

• 95% would be very appreciative if a member of the Board of Directors called them within a day or two of receiving their gift to just say thanks

• 85% would support again• 86% would give more

Saying Thanks

• Personalized• Hand signed• Acknowledges prior giving or volunteer work• Sincerely communicates excitement &

gratitude• Indicates when a progress update will be

given to the donor and how• Contact information included• Two paragraphs maximum (first line most

important!)• If appropriate, hand-written

How Not to Say Thanks

• Send a pre-printed post card• Ask for more money • Continue to “sell” the cause• Send an obvious form letter• Misspell the donor’s name • Send a letter with spelling and grammar

errors• Focus on the IRS tax language• Send the letter more than two weeks after

the gift

Recognition

• 90% want to be asked before their name is made public as a donor

• Most effective recognition according to donorsThank you letter 78%Name in newsletter 32%Name in annual report 31%Recognition event 30%Donor club/honor roll 25%

• 86% dislike tokens (fridge magnets, etc.)

Source: Donor Centered Fundraising, Penelope Burk

Case Study:Canadian Paraplegic Association

• Board members called 1 in 10 new mail donors

• Results over five subsequent mail appealsTest group gave 39% more than control

groupAfter 14 months, average gift was 42%

higher than control group 4% indicated a desire to learn more

about major giving opportunities in phone calls

Giving donors community

“Never doubt that a small group of thoughtful people

can make a difference, in fact it is the only thing that ever

has.”

~Margaret Mead

Bottom line:

We are going to have to grow a new base of donors every year if we

want to survive (which no one has the resources to do)

or

We can give ‘em what they want