Understanding why your donors give is a fundamental aspect of a fundraising strategy, but we must remember that donors as a group are not a monolith. The individuals and institutions who support your organization are as diverse as their reasons for giving.
A client recently shared that her board members keep searching for a fundraising ROI – not the organization’s return based on impact or the cost to raise $1, but rather the value of the donor’s return based on a quid pro quo benefit for giving.
The client was discouraged as several board members were convinced that tangible give-get benefits were required to raise money. My conversation with the client reminded me of an exceptional presentation at the Association of Donor Relations Professionals last month titled Donor Motivations.
Dr. Genevieve Shaker, professor at Indiana University’s Lilly Family School of Philanthropy, prompted participants to think about how important it is to understand the different motivators that exist in order to best design strategies and activities that will be effective.
She shared the following chart:
Donors are not the same, and the drivers of their philanthropy will change over time, based on relationships, and based on the context of the appeal.
A donor who contributes to their alma mater may do so because of the warm feelings toward their school but may also purchase a cause-marketing related item during a special campaign. Another donor may join a giving society because of the affiliation with peers and/or the social position it conveys but may also give anonymously to an emergency appeal because of a pure desire to help others in need.
Our client was struggling with board members who were fixated on the “what’s in it for me” self-interest calculations and were missing the fact that their definition of fundraising ROI was very limited and not philanthropic-minded.
Is it acceptable to offer a benefit for giving? Yes.
Should your entire fundraising strategy be focused on a quid pro quo calculation? No.
If appeal messages are solely transactional, then the organization misses the opportunity to build donor relationships grounded in mission and driven by impact. When organizations focus on relationship-based strategies, donor retention increases as does the average gift.
When writing your appeal and acknowledgement letters, be mindful of your message. Are you considering the continuum of motivation to ensure your communication resonates with donors? And, if you do offer benefits for giving, are you following the IRS rules for acknowledgements and substantiation?
We encourage you to do a high-level audit of your messaging. Print out all recent donor communications and indicate where the language falls on the continuum. Have a discussion with your team to assess and consider sharing the results with board members and other leaders to build their understanding of what drives donors to give.
