right-turn 2013-Apr17
Could we be starting to get it?  Are we turning a corner?  In just the last few weeks (perhaps because Spring is here, I don’t know) I’m starting to see a few non-profits step out of their traditional boxes and begin to invest in cultivating, nurturing and caring for their donors.
As you know, Richard and I have talked ad nauseam about how non-profits should spend as much time caring for their donors as they do their “mission.”  We’ve actually said donors should be part of their mission statement.
Now, we still have a long way to go as an industry, but I’m starting to see some promising signs.  Here is what I’m seeing:

  1. Mid-Level donors—a few organizations have identified that they are spending the same amount of money on donors who give $1,000-$9,999 as they do on $10 donors, while the mid-level donor group brings in millions in revenue.  They are also losing millions through attrition.  Instead of coming at this problem from just a direct-response solution (i.e., better quality mail), they’ve decided to add the discipline of their major gift program and hire mid-level donor reps. Yep, a rep that will give a personal touch through the phone, notes, e-mail and social media!  Brilliant.  Will this cost more?  You bet.  Will donor attrition go down and will donors feel listened to?  YES!  Will the net economic result be better?  You know it will.
  2. Customer Service—more organizations I’m coming in contact with realize they need to beef up their donor services.  Many have hired folks just to take calls and e-mails from donors who have questions, complaints or are having some kind of problem that needs to be addressed.  Previously, someone who may have had a few extra minutes (which, of course, was never) would be charged to get back to these folks and deal with their concern.  Obviously, this left a bad taste in donors’ mouths.  What can you do if you’re a small shop?  By an act of will devote 20% of your time to providing customer service to your donors.  Today, we’ve conditioned donors not to expect much from our industry.  To go above and beyond for a donor will reap tremendous benefits down the road; benefits like loyalty and more revenue.
  3. Hiring—I’m seeing more non-profits hiring for positions that have been on hold either due to the economy or their own frugality.  Creating more overhead so that donors can be served is a great investment.  One non-profit I know is hiring for a position that will coordinate and streamline internal processes to help all the staff on the front lines with donors and program come together so they can both bring their programs to donors for funding and report back to them once they have been funded.  Of course, right?

These are all positive signs I’m seeing in our industry.  But, we have a long way to go.  I was speaking at a conference recently, discussing the importance of getting to know the donor.  I emphasized some of the tools and staffing that are so important to helping MGOs understand who is on their caseload.  As I looked out on the crowd, I saw “that look.”  “That look” was on the faces of people who I could tell had been beaten down by their bosses or boards, who just didn’t get it–that we need to invest in our donors if we really want to deepen the relationships with them and have THEM invest in our mission.
Perhaps we’re starting to see the signs of something really changing in our industry.  All it takes is a few success stories of non-profits making the investment and showing the results to prove it was worth it.  If there is ANY innovation left in our industry, this is where it begins—with loving, caring and nurturing our donors—making donors truly part of our mission.
Will you join the organizations that are starting to get it?
Jeff