Effective Donor Relations E-Book

Janet L. Hedrick

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Serie: The AFP/Wiley Fund Development Series
• Sprache: Englisch

Seitenzahl: 319

Veröffentlichungsjahr: 2009

Beschreibung

Nonprofit Essentials: Acknowledgment, Recognition and Stewardship (Part of the AFP Fund Development Series) is a concise and professional guide to donor relations in a format that is accessible, lively, easy to read, and that provides in-depth advice from an expert in the field. The book guides in creating and implementing each aspect of a donor relation plan, providing recommended solutions to frequently encountered dilemmas and including sample documents, checklists, and other tools to help shape an effective program.

Leseprobe

Table of Contents

Title Page

Copyright Page

The AFP Fund Development Series

The Association of Fundraising Professionals

2008-2009 AFP Publishing Advisory Committee

Epigraph

Foreword

Acknowledgements

About the Author

CHAPTER 1 - Donor Relations: What?

Defining Donor Relations

The Power of Words

The Meaning of Gratitude

Donor-Centered Fundraising

Donor Bill of Rights

Summary

Notes

CHAPTER 2 - Donor Relations: Why?

The Emergence of Donor Relations

The Purpose of Donor Relations

Where Donor Relations Fits

Element of Surprise

The Donor Experience

Summary

CHAPTER 3 - Acknowledgment

The Importance of the Thank-You Letter

Methods of Acknowledgment

Critical Factors for the Acknowledgment

Elements of the Thank-You Letter

The Acknowledgment Plan

Saying “Thank You” Seven Times

Special Acknowledgments

Summary

CHAPTER 4 - Recognition: Part 1

The Importance of Recognition

Recognition Preferences

Recognition Gift Clubs

Annual Reports

Contents of the Annual Report

Recognition Displays

Naming Opportunities

Recognition Events

Summary

CHAPTER 5 - Recognition: Part 2

More on Recognition Gift Clubs

Creating a Gift Club Program

Counting Gifts and Recording Gifts

The Impact of IRS Guidelines on Benefits

The Other Side of Recognition Gift Clubs

Expanding and Enhancing a Gift Club Program

Summary

CHAPTER 6 - Stewardship

The Definition of Stewardship

The Components of Stewardship

The Role of Stewardship

The Stewardship Report

Summary

CHAPTER 7 - Donor Relations: Other Topics

Donor Relations in the Capital Campaign

Donor Relations in Prospect Cultivation

Measuring the Impact of Donor Relations

Using the Internet for Donor Relations

Different Approaches for Different Donors

Trends in Donor Relations

Final Thoughts on Donor Relations

APPENDIX A - ABC Hospital Foundation Director of Donor Relations/Director of Stewardship

APPENDIX B - Donor Recognition Vendors for Recognition Displays

APPENDIX C - Vendors: Bookmarks

APPENDIX D - Donor Satisfaction Survey

APPENDIX E

APPENDIX F - Put the Donor First

Index

Copyright © 2008 by John Wiley & Sons, Inc. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

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Library of Congress Cataloging-in-Publication Data:

Hedrick, Janet.

Effective donor relations / Janet Hedrick. p. cm. - (The AFP fund development series) Includes bibliographical references and index.

eISBN : 978-0-470-43942-5

1. Fund raising. 2. Endowments. 3. Nonprofit organizations-Management. I. Title. HV41.2.H43 2009 658.15 224-dc22 2008042939

The AFP Fund Development Series

The AFP Fund Development Series is intended to provide fund development professionals and volunteers, including board members (and others interested in the nonprofit sector), with top-quality publications that help advance philanthropy as voluntary action for the public good. Our goal is to provide practical, timely guidance and information on fundraising, charitable giving, and related subjects. The Association of Fundraising Professionals (AFP) and Wiley each bring to this innovative collaboration unique and important resources that result in a whole greater than the sum of its parts. For information on other books in the series, please visit: http://www.afpnet.org

The Association of Fundraising Professionals

The Association of Fundraising Professionals (AFP) represents over 30,000 members in more than 197 chapters throughout the United States, Canada, Mexico, and China, working to advance philanthropy through advocacy, research, education, and certification programs.

The association fosters development and growth of fundraising professionals and promotes high ethical standards in the fundraising profession. For more information or to join the world’s largest association of fundraising professionals, visit www.afpnet.org.

2008-2009 AFP Publishing Advisory Committee

CHAIR: Nina P. Berkheiser, CFRE

Principal Consultant, Your Nonprofit Advisor

Linda L. Chew, CFRE

Development Consultant

D. C. Dreger, ACFRE

Senior Campaign Director, Custom Development Solutions, Inc. (CDS)

Patricia L. Eldred, CFRE

Director of Development, Independent Living Inc.

Samuel N. Gough, CFRE

Principal, The AFRAM Group

Audrey P. Kintzi , ACFRE

Director of Development, Courage Center

Steven Miller, CFRE

Director of Development and Membership, Bread for the World

Robert J. Mueller, CFRE

Vice President, Hospice Foundation of Louisville

Maria Elena Noriega

Director, Noriega Malo & Associates

Michele Pearce

Director of Development, Consumer Credit Counseling

Service of Greater Atlanta

Leslie E. Weir, MA, ACFRE

Director of Family Philanthropy, The Winnipeg Foundation

Sharon R. Will, CFRE

Director of Development, South Wind Hospice

John Wiley & Sons, Inc.:

Susan McDermott

Senior Editor (Professional/Trade Division)

AFP Staff:

Jan Alfieri

Manager, New Product Development

Rhonda Starr

Vice President, Education and Training

Gratitude is not only the greatest of virtues, but the parent of all the others.

Cicero

The deepest craving of human nature is the need to be appreciated.

William James

Feeling gratitude and not expressing it is like wrapping a present and not giving it.

William Arthur Ward

Foreword

Everywhere we travel, we hear two stories. The first is one of great not-for-profit organizations celebrating record-setting fundraising successes and announcing extraordinary gifts. The rise of the superdonor and the importance of the top 1% of the gifts is changing the face of philanthropy.

Unfortunately, too often we also hear stories from donors who have made philanthropy an important part of their life but whose experiences in making those charitable gifts has been disappointing. The acknowledgments are late or nonexistent. Reports on the project never happened. Staff members did not answer simple questions.

That is why this work by Janet Hedrick is so important. For too long, we have thought of donor relations and stewardship as getting receipts out in a timely manner and making sure the names were spelled correctly in the annual report. While both of those actions remain important, the list is far from complete. Today’s programs must meet the needs of donors, program officers, and the future of the development program.

Part of the shift in the importance of donor relations is because of changes in the world. The Greatest Generation may be the last generation with a high degree of confidence in organizations. Baby Boomers and Gen Xers grew up with mistrust of “the Establishment” and the Millennials are emerging as a networked generation that finds many traditional structures and organizations irrelevant.

Some of the changes are a result of advances in technology. More than half of individuals pumping gas at the local station no longer ask for a receipt from the automated credit card machine built into the gas pump; they believe the system will work seamlessly. Anyone of us can go online right now and check the value of our mutual funds or stock statements—in real time. It is hard for donors today to understand why we cannot report once a year on their gifts or pledges. Many new fundraising ventures, like DonorsChoose.org, have been created that use the new technologies to promote good stewardship.

Some of the changes result from the entrepreneurial economy, where donors of means are used to reshaping the world and seek to use their philanthropy to shape organizations and their programs. Back in the days when most fundraising was either an annual appeal, or a once in a lifetime capital campaign or a once-a-generation call to raise dollars for a new swimming pool at the Y, or steeple for the church, or chemistry building at alma mater, the donors could rally around a project and understand how their gifts mattered. Today, most gifts are focused on specific programs, and the outcome of the dollars is not immediately obvious. Donors, therefore, want more accountability.

Some of the changes come from the shift in fundraising itself. As development staff turnover has increased and campaigns have become longer, the natural informal relationships between institution and donor have been lost, making formal stewardship efforts more important. As AT&Tused to state, the system is the solution. The personal dimension is critical, but must be supplemented with organizational support.

A decade ago, donor relations was barely on the radar screen of development professionals. Today, there are professionals focusing their careers in the area; professional groups are emerging and conferences are now frequently organized to improve the efforts and share best practices.

In this book, Janet Hedrick does more than outline the challenges; she shares insights into the strategies for success. It is obviously a must-read for donor relations professionals; but more important, it should be carefully studied by chief development officers because they are in the position to make the changes—large and small—necessary to maintain the important linkages between organization and philanthropist.

This work is extraordinarily important, because the subject is so important. As we conduct feasibility study interviews for major colleges, universities, and health-care organizations, we hear over and over again of bad stewardship and donor relations. If philanthropic support is going to sustain the culture over the next generation, then donors must feel connected to important causes and the dynamic institutions that are carrying out important work.

Bruce Flessner Founding Principal Bentz Whaley Flessner Bill Tippie Principal Bentz Whaley Flessner

Acknowledgments

When one writes a book that covers “acknowledgments,” the task of saying a heartfelt “thank you” to all those who have contributed to the effort is exceedingly difficult.

Over the more than thirty years that I have been a development professional, I have met a vast array of persons who have taught me so much. The development professionals and the other colleagues at the organizations that I have served through the years have provided valuable insights and inspiration. Also along my journey I have been fortunate to meet so many wonderful individuals who embody the philanthropic spirit and give so generously to make the world a better place. They also have added to my rich learning experience.

I must thank all of those who have attended the presentations that I have given over the last fifteen years. Their questions and ideas are the fabric of this book. From my first presentation on this topic entitled “New Ways to Say Thank You: Creative Approaches to Acknowledgment and Recognition” to my upcoming presentation called “Leave Them Wanting to Give More: The Power of the Donor Experience,” the process of preparing the presentation is just one small part of my learning experience. With each and every presentation, I hear stories of the strategies that have made our relationships stronger with those who believe in and support our organizations’ missions. The creativity and enthusiasm with which these professionals bring value to the donor experience is extraordinary!

My colleagues at Bentz Whaley Flessner have been supportive and encouraging as I have developed this manuscript. I want to thank each of them. I want to express special gratitude to the principals at the firm, Bruce Flessner, Bill Tippie, Bruce Dreon, and Joshua Birkholz, for their belief in and support of me.

A special thanks to Bill Tippie, the principal with whom I work most closely at the firm. When we discussed my joining Bentz Whaley Flessner in 2004, he indicated that members of the firm are encouraged to make presentations and to write articles and books. My comment was, “Does that mean I get to write my book?” After I told him about the plans for this book, he told me that he would support me in every way possible and would not let me forget about my plans. He has honored that commitment and has been supportive every step of the way.

My heartfelt thanks to Josh Birkholz for taking my lead and getting his book finished first. Seeing his book in print has motivated me to keep focused and to complete this book.

I also want to thank Jan Alfieri at the Association of Fundraising Professionals (AFP), who asked me to conduct an audio conference on this topic and who later suggested that I should write a book on the topic. I also want to thank Susan McDermott and Brandon Dust, my editorial team at John Wiley & Sons, Inc. for their patience and helpfulness.

Last, but not least, is my gratitude for the members of my family who have believed in me. My brother Russell and his wife Susan, who let me call their house my home during the holidays, and their children Emily, John Michael, Allison, and Sam are my constant cheerleaders. Likewise I am truly grateful for the Worshams and the Gleims, who are my “other” family, for their love and support. I also know that my parents would be proud. For the joy that they found in my accomplishments, I will always be thankful.

About the Author

Janet L. Hedrick, CFRE, is a senior associate in the Washington, D.C. office of Bentz Whaley Flessner. Her areas of expertise include planning, implementation and evaluation of annual, capital, and planned giving programs; assessment and enhancement of donor relations and stewardship programs; and training and motivating campaign volunteers and development staff.

The clients she has served include Children’s Hospital of Wisconsin; Miami Children’s Hospital Foundation; Arkansas Children’s Hospital; Connecticut Children’s Medical Center; Children’s Mercy Hospitals and Clinics in Kansas City, Missouri; Riverside HealthCare Foundation in Kankakee, Illinois; Sacred Heart Hospital in Eau Claire, Wisconsin; Evangelical Community Hospital in Lewisburg, Pennsylvania; Northern Michigan Regional Hospital Foundation in Petoskey, Michigan; Group Health Community Foundation in Seattle, Washington; and Inova Health System Foundation in Falls Church, Virginia.

Ms. Hedrick has also provided counsel to twelve public broadcasting stations, located in Nevada, Utah, Illinois, West Virginia, North Carolina, Pennsylvania, Ohio, Indiana, and Florida, as part of the Major Giving Initiative (MGI) for public television sponsored by the Corporation for Public Broadcasting.

Prior to joining the firm in 2004, Ms. Hedrick served as director of clinical campaigns and planned giving for the UMass Memorial Foundation, the philanthropic arm for both the University of Massachusetts Medical School and the UMass Memorial Health System, in Worcester, Massachusetts. Other positions have included vice president of fund development for the Sisters of Providence Health System in Springfield, Massachusetts, executive director of the Millard Fillmore Health, Education, and Research Foundation and vice president for development at the Millard Fillmore Health System in Buffalo, New York, chief development officer at St. Christopher’s Hospital for Children in Philadelphia and director of development at Johns Hopkins Children’s Center—the Department of Pediatrics at Johns Hopkins Hospital in Baltimore.

Ms. Hedrick began her career in development in 1977 as Director of Annual Giving at Longwood College (now Longwood University) in Farmville, Virginia, after having taught mathematics and physics at Parry McCluer High School in Buena Vista, Virginia. She also served as Director of Development at Hood College in Frederick, Maryland, prior to taking her position at Johns Hopkins in 1983.

Ms. Hedrick holds a Master of Education degree from the University of Virginia and a Bachelor of Science in Mathematics from Mary Washington College (now University of Mary Washington) in Fredericksburg, Virginia. She is a member of Phi Beta Kappa and an active member of the Association of Fundraising Professionals (AFP), Association for Healthcare Philanthropy (AHP), Association of Donor Relations Professionals (ADRP), and National Committee on Planned Giving (NCPG), and is a Certified Fund Raising Executive (CFRE).

She served as president of the Greater Philadelphia Chapter of AFP, served on the boards of the Western New York and Western Massachusetts Chapters of AFP, and was the founding president of the Central Massachusetts Chapter of AFP. She has served on the AFP National Nominating and Diversity Committees. She also served on the Committee for Revision of the AFP Survey Course and developed the section on individual giving in the Annual Giving Module of the course.

She has taught classes on fundraising, including “Fundamentals of Fund Raising” at Villanova University in Philadelphia; “Developing the Board Partnership” at University of Pennsylvania in Philadelphia; and “Advanced Fund Raising” at the University of Massachusetts in Amherst, Massachusetts. Ms. Hedrick developed a continuing education program on fundraising for Canisius College in Buffalo, New York and taught the initial class of the course.

Ms. Hedrick is a frequent presenter at local, regional, and international conferences throughout the United States and Canada. In addition to speaking for AHP Regional and International Conferences, AFP Chapter meetings and workshops and International Conferences, and ADRP Annual Conferences, she has given presentations for PBS National Development Conferences, Association for Care of Children’s Health (ACCH) National Conferences, Delaware Valley Association of Directors of Volunteer Services, Nonprofit Management Center in Buffalo, NY, Center for Nonprofit Management, Nashville, TN, Women in Development of Western Massachusetts, Women in Development of Central Massachusetts, LDS (Latter Day Saints) Hospitals and the Deseret Foundation in Salt Lake City, Utah, and Donor II (Campus Management Corporation) in Charlotte, North Carolina and Orlando, Florida.

Ms. Hedrick contributed a chapter, entitled “Obtaining Funding for Video Projects,” in Television and the Hospital Child: Issues and Creative Approaches (1988), a publication of the Association for the Care of Children’s Health (ACCH), has written articles for fundraising newsletters, and has been quoted in publications, including articles in Advancing Philanthropy, the publication for members of the Association for Fundraising Professionals (AFP).

Ms. Hedrick was a member of a fundraising executives’ delegation to the Republic of South Africa in 2001, sponsored by People to People Ambassador Programs. As a member of the Rotary Club in Worcester, Massachusetts, she served on the District Committee for GEMINI (Global Emergency Medicine Initiatives). She assisted in securing funds for a group of emergency physicians to travel to the Dominican Republic in 2003 to train caregivers in that country. Ms Hedrick also accompanied the group on the trip to the Dominican Republic.

Ms. Hedrick currently serves on the board of directors of the Challenger Center for Space Science Education (CCSSE), an international, not-for-profit organization that was founded by the families of the astronauts lost during the last flight of the Challenger Space Shuttle in 1986. Ms. Hedrick serves as the chair of the development committee of the organization that has created close to fifty Challenger Learning Centers in the United States, Canada and the UK. Each educational center includes an interactive computerized simulator with a Mission Control room patterned after the NASA Johnson Space Center and an orbiting Space Station where students become astronauts and engineers, solving real-world problems as they share the thrill of discovery on missions through the Solar System.

Ms. Hedrick and her Quaker Parrot, Peridot, live in Alexandria, Virginia.

CHAPTER 1

Donor Relations: What?

After reading this chapter, you will be able to:

• Define the terms associated with donor relations.

• Explain the difference between stewardship and donor relations.

• Describe the three components of donor relations.

• Define gratitude.

• Explain what donor centered means.

• Understand the principles of the Donor Bill of Rights.

Defining Donor Relations

In the 1980s, the term donor relations was not frequently used in the field of development. In the latter years of the 1990s, the term began to be heard more frequently, and in the first decade of the twenty-first century it became the name used to describe a group of activities central to the overall development process. Organizations began adding donor relations to their development or advancement functions and a new emphasis was put on this aspect of fundraising.

The new level of interest and attention for donor relations paralleled a change in attitude about those activities that would come to be known as donor relations. Prior to the 1980s, most organizations viewed these activities as necessary but seldom approached them as basic elements of the overall development program.

In 1991, James M. Greenfield, in Fund-Raising: Evaluating and Managing the Fund Development Process (John Wiley & Sons, Inc.), noted:

In their quest to acquire an increased number of new contributors each year, charitable organizations might overlook their current donors, who are supporting them faithfully. Donors are the best prospects for repeat gifts as well as for new gifts, larger gifts, and estate gifts. Donor relations is perhaps the greatest sin of omission within fund development programs.

As organizations began to recognize the true value of maintaining and upgrading a donor’s support, the roles of acknowledgment, recognition, and stewardship shifted from being rote activities to being strategic actions. The field of donor relations became the responsibility of the professional staff and the principles of donor relations were integrated into the many aspects of the development and institutional advancement programs at charitable organizations.

RULES OF THE ROAD

Location is to real estate as relationship is to philanthropy.

The scope of donor relations and the level of sophistication are different for every organization. For some organizations, the term means sending thank-you letters for contributions. For others, donor relations includes recognizing donors with a list of names on a wall or in a report, and some organizations include sending stewardship reports in their donor relations program. For many, donor relations involves events to express appreciation to those who have supported the organization.

In simple terms, donor relations is everything that happens between asking for contributions. The many activities previously mentioned, including thank-you letters, recognition lists on a wall or in a report, sending stewardship reports, and special events, are included in donor relations. In fact, all of the activities, or the personal touches, that are involved in building a relationship with an individual, corporation, foundation, association, or any other source of funding can be described as donor relations. While donor relations can be defined as activities in a process, a donor relations program is most successful when it is the expression of an organization’s overall commitment to a donor-centered approach to fundraising.

The Power of Words

The AFP Fundraising Dictionary does not define donor relations. However, the dictionary definition of stewardship is broad and could be a definition of donor relations.

The AFP Fundraising Dictionary defines stewardship as:

stewardship, noun 1 a process whereby an organization seeks to be worthy of continued philanthropic support, including the acknowledgment of gifts, donor recognition, the honoring of donor intent, prudent investment of gifts, and the effective and efficient use of funds to further the mission of the organization. 2 the position or work of a steward.1

Many people use the terms stewardship and donor relations interchangeably. However, donor relations can be viewed as having three components, with stewardship being one of the three. The term donor relations has come to mean the acknowledgment, recognition, and stewardship provided to the person, organization, corporation, or foundation that makes a charitable gift.

RULES OF THE ROAD

Donor relations: Everything that happens between “asks.”

Donor relations, as the name implies, is a set of strategies that helps an organization build its relationship with the persons who contribute to that organization. All three aspects of donor relations are important in renewing a donor’s support, upgrading a donor’s support, and building a donor’s confidence in an organization. Acknowledgment, recognition, and stewardship are important in cultivating a donor’s interest in an organization and in moving the donor to a deeper sense of commitment and greater financial investment in the organization.

Each aspect of donor relations has specific characteristics, and by examining each component of the process, the importance of each aspect becomes clearer.

Acknowledgment is the process of saying “thank you” for the gift. The acknowledgment of a gift may include a receipt, a letter, a phone call, a handwritten note, an email message, or a combination of these communications. Acknowledgment is one or more private communications between the organization receiving the contribution and the person, organization, corporation, or foundation that made the gift.

Recognition is the process of expressing gratitude for a charitable contribution in a public way. The organization may recognize the donor by listing the donor’s name in a publication, in a display of names in a program or on a wall, in a press release, or in special presentations. Providing a gift that acknowledges the donor’s support that the donor may display in the home or office is also a way to recognize a donor.

Stewardship is the process of using the gift as the donor intended and communicating with the donor about the use of the gift. The organization is being accountable and is letting the donor know that the organization used the gift as the donor desired. Included in stewardship of some gifts, especially those for endowment, is reporting on the investment of those gifts. Stewardship also conveys the impact of the gift in fulfilling the mission of the organization. The definition of stewardship in the AFP Fundraising Dictionary includes “the honoring of donor intent, prudent investment of gifts, and the effective and efficient use of funds to further the mission of the organization,” but does not mention reporting back to the donor, which is critical to meaningful stewardship.

EXHIBIT 1.1 Donor Relations Cycle

Another approach to the donor relations program is a cycle with four active parts, or the four A’s:

1. Acknowledge

2. Appreciate

3. Account

4. Ask again

The four-part cycle (see Exhibit 1.1) parallels the approach of the three components. “Acknowledge” is the step of thanking the donor for making the gift. “Appreciate” is the recognition component and “account” is the stewardship aspect where the donor is informed about the use of the gifts and the results or outcomes from the gift. “Ask again” is not included in the earlier description of donor relations, but is the next step in both processes that moves the process back to the solicitation of the donor.

EXHIBIT 1.2

In either scenario, the components of donor relations are not independent and separate from one another. They are interconnected and should flow from one to another. All three components are expressions of gratitude (see Exhibit 1.2). Donor relations is more than the sum of its parts. Acknowledgment, recognition, and stewardship should complement one another and together should create a meaningful and unified strategy for a donor.

Two central activities are critical to effective donor relations. The first is communications and the second is involvement or engagement. Communication, whether by mail, phone, Internet, or face-to-face, contributes to building the relationship with the donor. Meaningful communication is two-way and provides the donor with opportunities to provide input, ask questions, make recommendations, and express concerns. As the relationship grows, communication becomes more frequent and is more likely face-to-face.

The second activity central to donor relations parallels communicating with donors. The strategies in a donor relations program are designed to bring the donor closer to the organization. Building a relationship requires involvement in the life of the organization, getting to know the people that lead the organization, including staff and key volunteers, and feeling like a member of the family. The donor who has a close relationship will talk about the organization using the term we rather than you.

An effective donor relations program will seek to communicate with donors and will focus on strategies that involve and engage the donor in the life of the organization.

RULES OF THE ROAD

Donor relations > Stewardship

The Meaning of Gratitude

Gratitude is a positive emotion or attitude that an organization needs to convey to the people who choose to support that organization and its mission. Acknowledgment, recognition, and stewardship are the actions that an organization uses to express the feeling of gratitude. The way that organizations communicate and involve donors in the life of the nonprofit is the means by which an organization lets a donor experience the feeling of being appreciated by the organization. Sincere gratitude expressed in various ways over time is the key to building the relationships that result in commitment and in investment for an organization.

The donor relations program goes beyond acknowledgment, recognition, and stewardship in that these actions alone will not build the relationship. The feeling or attitude of gratitude behind those actions and the meaningful, thoughtful, and individualized nature of the actions will make the difference in creating the bond that is desired between the organization and the donor.

IN THE REAL WORLD

A highly important aspect of business today is customer relations. Businesses recognize that their best customers are past customers. Many organizations ask customers to sign up for mailing lists or email lists. Direct-mail flyers, catalogs, sales brochures, and other information pieces are sent primarily to those who have done business with them in the past.

Businesses have customer loyalty programs, from Talbots, which sells clothing for women, men, and children, to Hallmark Gold Crown stores, to grocery stores, pharmacies, and, of course, airlines’ frequent-flyer programs. Some of the customer loyalty programs are called memberships and one must pay an annual fee. Barnes & Noble bookstores would be in that category. The key chains carried by consumers today often have more member cards for these businesses on them than they have keys. In addition, our wallets are filled with various cards from hotels and car rental companies. Each business offers incentives for frequent use. These may be discounts or certificates for future purchases. Each is intended to motivate the customer to buy more from the specific business. The programs are successful and, thus, more businesses add these programs to get customers to come back.

When one takes a flight, the pilot says over the public address system, “We recognize that you have a choice among airlines, and we thank you for choosing XYZ airline. We hope that when you need to make travel plans in the future, you will choose XYZ again.”

The dentist sends the new patient a letter thanking the person for selecting this practice over the others from which one can choose. After shopping in a clothing store, a woman receives a handwritten note from the salesperson with whom she did business. The local car dealership calls a customer within two or three days to ask about the quality of service the customer received when his car was serviced. A handwritten note with a bottle of water and a snack are in the hotel room to welcome back a guest who frequently stays at that specific group of hotels.

Donors have choices, also. Recognizing their gifts as often as possible and in as many ways as possible ensures that they will continue to choose your cause when making their charitable decisions.

Organizations can learn from businesses that have outstanding customer relations programs. In thanking a person for a gift, an organization needs to keep in mind that it is saying “thank you” to a person for choosing to support that specific organization when a multitude of organizations have worthy causes and would like to have that person’s support.

Like the airline pilot, an organization can say, “We recognize that you have a choice of where to provide philanthropic support and we thank you for choosing ABC organization. We hope that when you make future philanthropic gifts, you will choose ABC again.”

Donor-Centered Fundraising

The term donor-centered fundraising is used frequently in development and is a principle that development departments endorse. One often sees the “Donor Bill of Rights” hanging on the wall in the development or institutional relations office, on the website, and in the donor relations manual. Making the Donor Bill of Rights a living document takes commitment and work. The concept behind the Donor Bill of Rights is critical to understanding what donor centered means. The responsibility for fundraising includes respect for those who make philanthropic gifts, honesty in dealing with those who support the causes in which they believe, and fulfilling the donor’s desire to make a difference and to feel good about giving. In simple terms, the donor and the donor’s interests are the key elements of fundraising and the relationships that the development staff forges between donors and others in the organization are the essence of fundraising.

Those in development need to remember that their jobs are about the donor. “The donor comes first” and “The donor is always right” are two adages that seem appropriate for every development office or department. When questions arise and decisions are made, the donor’s interest should be the most important consideration.

TIPS AND TECHNIQUES

Share the Donor Bill of Rights

When an organization endorses the Donor Bill of Rights, it takes a giant step in building a culture of philanthropy among its internal and external constituencies. Having the board of the organization as well as the board of the organization’s foundation, if one exists, review and endorse the Donor Bill of Rights makes the leadership aware of the principles behind the Donor Bill of Rights and sends a message to staff, volunteers, and donors of the intent of the organization to operate in a donor-centered fashion.

After the board of an organization endorses the Donor Bill of Rights, the document needs to be shared among the organization’s constituencies. The following are ways to share the Donor Bill of Rights.

• Hang a framed copy of the Donor Bill of Rights in key locations in the organization, such as near a recognition display, in administrative offices, and in the development, foundation, or institutional advancement offices.

• Post the Donor Bill of Rights on the organization’s website.

• Include the Donor Bill of Rights in annual reports or other publications.

• Include the Donor Bill of Rights in board orientation materials and review the document with new board members.

• Include a copy of the Donor Bill of Rights in a new-donor or new-member packet.

• Include in the Donor Bill of Rights in the donor relations manual for the organization.

• Review the Donor Bill of Rights with all new employees of the organization as part of orientation along with other information about the role that philanthropy plays at the organization.

Periodically, in surveys on donor satisfaction, donors should be asked whether they are familiar with the Donor Bill of Rights to determine whether efforts to share the document have been successful.

If a donor wants to make a gift to support a specific program that is not available at the organization that the donor approaches, donor-centered thinking can help guide the organization. If the program is included in the organization’s strategic plan and the timing of the gift will fit with other funding to make the program happen, the organization may decide to accept the gift and will explain how the gift can be helpful. However, if the donor wants to support a specific program that the organization does not have and has no plans to introduce, the response should be different. For example, a donor wants to make a gift to a children’s hospital for research in SIDS (Sudden Infant Death Syndrome), or alumni want to support their college’s equestrian program. If the children’s hospital does not currently have research in SIDS and the college has discontinued its equestrian program, those organizations should not accept the gifts.

Being donor centered means being honest with donors in explaining that the organization cannot fulfill their expectations and assisting the donors in finding an organization that can meet their wishes. The children’s hospital identifies where research in SIDS is occurring, and the college finds out where equestrian programs are offered and assists the donors in making gifts to support the programs in which they have interest. If an organization cannot fulfill the intent of the gift, the donor is not pleased when an organization accepts the gift and uses it in another way.

The story is told that a salesperson in Nordstrom’s, which is known for extraordinary customer service, helped a customer by gift wrapping an item that the customer bought at Macy’s. The same principle applies here. Helping donors or customers accomplish their goals is the way to put the donor or the customer first.

Another example of donor-centered fundraising is the year-end appeal. Organizations that have a fiscal year that ends on June 30 often send letters to donors in May asking for support by the “end of the year” so the organization can meet its annual goal. While that strategy may work because donors care about organizations meeting their goals, a more donor-centered approach is to ask donors to consider making gifts in the autumn months before the end of the donor’s year.

The donor-centered organization will craft its message in a way that appeals to the donor and potential donor. Letters about the “end of the year” should be scheduled and worded to reflect that the end of the year is December 31 for individuals. The timing of the request should be based on the donor and the donor’s frame of reference rather than the organization and the organization’s frame of reference.

A survey conducted by the Direct Mail Association indicates that an organization has the best chance of getting its publication read if it is received in February through May or September. January, August, October, and November are mediocre months and, not surprisingly, June and July, when many people are busy with vacations and outings, are the worst months for direct mail.

Letters in February through May should be more focused on the beginning months of the year, and letters in September, October, and November should be directed to end-of-year giving. If organizations are donor centered, they recognize that many major donors tend to make gifts late in the calendar year, often between Christmas Day and December 31, and those organizations prepare for that pattern of giving.