I saw an interesting piece in the Journal of the DMA Nonprofit Federation today: A Donor Isn't Really a Donor Until They Give You a Second Gift! As the title implies, the piece discusses the critical time period after a donor gives their first gift to an organization since only 30 percent of them will return to give a second gift. However, if you get them to give a second gift, you have a 40-60% chance of a third gift, a fourth and beyond. Therefore, building that relationship between the first and second gift is critical to establishing a long-term relationship with donors:
There are many tactics you can employ to establish this relationship: Personal thank-you notes, a "new donors" welcome packet, a first year anniversary gift, etc. I think the most important one for us to consider for the web is to consistently show the impact of giving. Think back to the Wired Wealthy report. One of the most engaging things you can do is to show the real-world impact of the money you are given. This should go for smaller gifts as well as larger ones, as a person's first gift to your organization (particularly from younger alumni) are probably not going to be enough to get a building named after them. I think Princeton use to do this really well (for some reason, they've decided to take this down off their site but I took a screenshot when I first saw it):
Now, of course, putting a page on your website does not equate to active engagement but its an example of the types of stories you need to be telling. Also, make sure you're tying it back into the values of your institution. I noted in the graph that once you've got a donor at a third gift, they'll probably keep giving until your or their values have changed because at that point, you've got them convinced that you are a worthwhile cause that is in line with the values they want to financially support.
Key Takeaways:
1) Giving for the first time doesn't mean your donors are convinced of the value of your institution.
2) Creating that relationship after the first gift is key.
3) Establishing relationships over time will ultimately result in more substantial gifts.
4) The web is a key component in articulating success stories and values.
2 comments:
One of the most engaging things you can do is to show the real-world impact of the money you are given.
This made me wonder if the same rule doesn't apply to our current students when we contemplate raising tuition.
I know the situation is a little different, but I think students need reassurance that the hike in tuition is both necessary and will be used appropriately.
I can see why Princeton may have removed that section of the website. Nothing technically wrong with talking about what those donations "buy," but there's nothing inspiring there. It's kind of like saying, "Your gift will help us buy more light bulbs." I believe the research shows that people -- at least the people who want to give transformational gifts -- don't give because of need but because they want to make the world a better place. They want to give to hope.
So, yes, we need to do a better job of telling the right story to encourage those gifts to something that is hope-inspiring.
Andrew
P.S. - BTW, we just launched a faculty/staff campaign that is part of our larger fundraising effort. The goal here is not to raise a lot of money but to get participation and involvement. We just launched the website at http://giving.mst.edu/proudminer/.
Post a Comment