Steward those gifts!

Too often, nonprofits get the gift and then move on, forgetting the most important parts of fundraising.

Acknowledgement and stewardship are crucial for building relationships with donors. Acknowledgement you probably understand.  It’s about thanking donors and recognizing them for their support.  But what is stewardship?

First, here are some definitions of a steward:

  • —An administrator for the property of others —
  • A person put in charge of the affairs of others
  • —A person morally responsible for the careful use of money, time, talents or other resources of a community or group

Stewardship is important because it builds trust.  When your donors know that you are using their gift wisely, they’ll be more likely to want to give again. And when you get a reputation for using donations wisely, you’ll attract more donors.

As I see it, there are two key pieces to effective stewardship:  1, you have to do it and 2, you have to communicate it to your donors.

The first piece is simple – make sure that the donor’s money is spent appropriately and wisely.  Make sure their gift is set to work as it was intended when it was given.  The second piece requires you to let your donors know that their gift was used wisely and had the desired impact.

How do you do that?  A simple update email or letter can accomplish it, or you can include something in a print or email newsletter.  The important thing is that you are letting your donors know how their gift is being used and you’re connecting with them.  You’re respecting your donors and pulling them closer to your organization.

Your donors are not ATM machines.  They want to be a part of the work your organization is doing.  So, treat them as partners.  Be a good steward of their gifts and build relationships with your donors.  You’ll be glad you did!

Donor relationships are like gardens…

This was the topic of one of my presentations at the AFP Northern Arizona Education Day last week.  Here are some key points from this session:

Donor relationships are like gardens.  They bear the most fruit when they are properly tended to.  Keep them weeded, watered, and fertilized, and you’ll be delighted with the results.

1. Good donor relationships are the key to successful fundraising. Relationships build loyalty.  Loyal donors give again and again, keeping you from always searching for new donors.

2. Two-way communication is critical to building relationships.  We can’t just speak AT our donors.  We must speak WITH them.  Always be on the lookout for ways to give your donors to communicate with you.

3. Good donor relationships are built on purpose.  We’re so used to relationships growing naturally that it feels a bit uncomfortable to do it on purpose.  But it’s really no different.  Be truly interested in your donor as a person and you can avoid feeling manipulative.

Thanks to the AFP Northern Arizona Chapter for inviting me to spend the day with them!  It was great fun!  See the pictures at the chapter’s Facebook page.

An experiment in gratitude

My friend Kivi Miller of Nonprofit Marketing Guide recently shared the results of her annual giving experiment.  And it’s pretty bad.

She sent $20 donations to 10 national charities online and waited to see who would thank her and how they would do it.  These were national organizations and you would think they’d have their act together for thanking donors, no matter what level of gift was given.

As you can probably guess, not many responded. By Feb 18, she had heard from only 3 organizations.  Pitiful! 

Come on folks!  No matter what size organization you work for, you should ALWAYS have time to thank a donor.  If you have lots of donors to thank, then create a system to make it more efficient for you.  Not thanking donors is a good way to lose them.  And you can’t afford that.

Every donor deserves to be thanked for every gift.  Appreciation should be expressed promptly, warmly, and sincerely.  Don’t make the donor sit and wonder if you got their gift – get a thank-you letter out to them within a couple of days.

You can read Kivi’s summary of her experiment on her blog at http://www.nonprofitmarketingguide.com/blog/2010/02/18/10-donations-3-thank-yous-7-failures-to-communicate/.

When the cat gets too big

I love days that I get to work in my office.  It gives me some quiet time to think and plan.  But today, my solitude ihas been interrupted.

Sadie is a rather large kitty and has decided that she wants to sit in my lap.  This is one of our older cats and she’s a big girl (16 pounds!).  Not only is she in my lap, but she’s purring to beat the band and insists on keeping her paw on top of my arm, making it difficult to type.  Why she isn’t upstairs pestering my daughter, I don’t know.

Now, you probably know I love my critters.  This one included.  I just don’t love her when she gets in my way. 

Which reminds me of a donor story I heard today.

My friend Lynn is an Executive Director of a good-sized organization and has a new facility manager she just hired.  He’s working out great and is followinfg her directions for keeping things clean and tidy.  There’s a long-time volunteer who also happens to be a major donor who has taken it upon himself to tell this young fellow everything he needs to know.  The only problem is that the volunteer/donor is giving the staff guy different instructions than what Lynn did.

So for Lynn, this volunteer/major donor is kind of like the cat in my lap – I love you, but don’t get in my way.  If the proverbial cat gets too big (if the volunteer/donor gets too caught up in being in charge) it can really cause problems.  Best to deal with it as soon as possible.

Lynn feels a bit caught between a rock and a hard spot. My suggestion is that she sit down with the volunteer/donor and go over the procedures for the facility and get his buy-in.  She should also let him know that she’s got the new guy well-oriented and is supporting him.  She should probably go one step further and ask the volunteer/donor to let her know if he sees things happening that he thinks needs to be addresed with the new guy.  And find a way to let the volunteer/donor know that it’s not his job to tell the new kid what to do.

This is a tough situation, trying to keep the volunteer/donor happy and engaged, but keep him out of staff business.

What would you do if it were you?  Click on the comment link and let me hear from you.

Meanwhile, I’ll see if I can convince Sadie to go find another lap!