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What Donors Want!

What Donors Want!

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What Donors Want!

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  1. What Donors Want! Mark Moshier, CFRE Team Leader, Council Fund Development Boy Scouts of America, National Council

  2. Donors Want 2 Things

  3. They want: • to feel good… • about what their money has done. • -Tom Ahern

  4. Your Job • Deliver Accomplishments • Induce emotional gratification • -Tom Ahern

  5. Donor Survey: Why Make a Gift? Very Important Believes 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%

  6. Donor Motivation for Making Gifts 1. Philanthropy 2. Gratitude 3. Honoring Loved Ones 4. Nonprofit as Family Substitute 5. Tax Benefits 6. Financial Benefits 7. Social Standing and Prestige 8. Recognition

  7. 2009 charitable giving Total = $303.75 billion

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

  9. What Donors Want • Our Environment • Philanthropic Climate • Competition for charitable dollars • Donor awareness • Donor expectation

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

  11. What Donors Want • Our Environment • Philanthropic Climate • Competition for charitable dollars • Donor awareness • Donor expectation

  12. What donors Want • Factors for Success • Organization Factors • Board Strength • Case for Support • Organization History

  13. Case For Support 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!

  14. 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.

  15. Three Big Questions -Tom Ahern 1. Why us? 2. Why now? 3. Why should a donor care?

  16. Why us? What are we doing that is so uniquely worthwhile? -Tom Ahern

  17. Not sure why you matter? Pretend you’ve gone away. -Tom Ahern

  18. Why Now? What’s the big hurry? What Changes? Why is this crucial now? -Tom Ahern

  19. Why you? “You” is the donor. Have you made the donor “my hero”? -Tom Ahern

  20. “Why in the world would I give away my hard-earned money to you?” -Tom Ahern

  21. Donor Centered Fundraising Author – Penelope Burk Cygnus Applied Research, Inc. Burk & Associates LTD.

  22. WHAT IS IT BASED ON? • “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

  23. THREE THINGS DONORS WANTED THE MOST – Penelope Burke Prompt, personalized acknowledgment of their gifts Confirmation that their gifts were used by the charity as intended Measurable results about the impact of their gift before being asked for the next gift

  24. THREE THINGS DONORS DIDN’T LIKE – Penelope Burke Impersonal acknowledgements Acknowledgements received more than two weeks after the gift General appeals with few measurable results

  25. THREE THINGS DONORS WANTED THE MOST – 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.

  26. THANK YOU LETTERS – 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

  27. 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

  28. Billing Inserts

  29. NEWSLETTERS – Penelope Burke • Donors like newsletters • But do they like yours?

  30. NEWSLETTERS • 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

  31. NEWSLETTERS – Penelope Burke • 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

  32. RECOGNITION OF GIFTS – 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

  33. 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

  34. THE BEST RECOGNITION OF ALL? – Penelope Burke 85% say they would make another gift AND 86% say they would make a larger gift … if they received what??? A THANK YOU PHONE CALL FROM A BOARD MEMBER

  35. Phone Calls

  36. Donor Acknowledgement Plan

  37. Donor Acknowledgement Plan

  38. Donor Acknowledgement Plan

  39. DONOR LESSONS – Penelope Burke “Asking” is not the same as “communication” 70% of donors would give more if communications improved

  40. 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

  41. DONOR LESSONS – Penelope Burke It is always less expensive to try and keep existing donors, than to acquire new ones or recover lapsed donors.

  42. Seven Contacts Approach 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.

  43. My Sources

  44. Acknowledgements • 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

  45. Mark Moshier, CFRE Team Leader, Council Fund Development Boy Scouts of America, National Council mark.moshier@scouting.org www.scouting.org/financeimpact