Wednesday, May 28, 2008

Donor 101: When times get tough, remember your ABC's

You're the executive director of a not-for-profit organization, just getting home after a long day. You turn on the evening news and hear the latest economic report, saying Americans are spending 55% of their income on basic necessities. More than half of the income of an average American, now being spent on food, gas, mortgage, utilities. That leaves 45% to cover everything else - entertainment, vacations, kids activities, household items...and donations to charities and causes.

For you this isn't just another news story. They're talking about your donors, the backbone of your organization. And you know full well that executive directors of every other not-for-profit organization are hearing the same news and thinking the same thing; I've got to make sure my group is at the top of the list when my donors are carefully budgeting that remaining 45%.

Economic hardship should be looked at not just as a challenge but as an opportunity, a chance to hone your organization. Often the best way to get and keep donors, especially when times are tough, is to go back to basics. Literally. I call it the ABC's of non-profit fundraising, three basic rules for not-for-profit organizations:
Appreciate your donors
Believe in your mission
Cultivate your community

Like I said, very basic stuff. But when everyone is competing for the same dwindling resources, the organization that executes the basics will come out ahead every time.

So take out your primers, and let's practice our ABC's:

A = Appreciate your donors.
They aren't just walking wallets. They're the reason you exist.
Your supporters are faced with a myriad of ways to spend their hard-earned money, and they chose to give it to your organization. Every day, in every way, you and everyone on your staff should remember what an honor and responsibility that is. And what do your supporters ask for in return? Having spent most of my professional life working with and volunteering for not-for-profits, I can tell you the answer: surprisingly little. Above and beyond all else, supporters want to feel like they are appreciated. What will make them feel appreciated? Don't ask me, ask them. Drill down through your donor database and find those friends who have stuck with you through good times and bad. Ask them what you're doing, or what you can do, to make them feel their support is appreciated. And when you're picking and choosing who to ask, remember: don't just stop in the top tier. It's very likely that your $50 supporter is giving you a larger chunk of that 45% disposable income than the $5,000 supporter.
The answers you get will vary, of course, depending on the nature of your organization. But there are some things you can count on hearing. Yes, all non-profits have supporters who want their name displayed for all to see. But many of your donors will ask for a less-ostentatious (and certainly less expensive) way to show your appreciation. For a large percentage of donors, appreciation means information. They want to be the first to hear exciting news or be invited to pre-opening events. For other donors, appreciation means consultation. They want to be asked for their opinion, their concerns, their hopes and wishes. But there is one universal for all donors, large and small, aappreciation means respect. They've chosen to support you, they deserve nothing less than your complete and sincere respect. And to respect them, you have to respect yourself, which leads us from A to B:

B = Believe in your mission.
You just can't get more basic than this one, right? Of course we all believe in our organization's mission, don't we?
Every business, for profit or not-for-profit, is going to face times of challenge, when morale is low, image tarnished, and enthusiasm is lagging. An extended period of difficult belt tightening can leave even the most ardent employee or long-time supporter feeling doubtful.
It's time to get back to the basic element that brought you all together to begin with, and that is a belief in your mission. Ask employees of a not-for-profit why they're there, and mixed in with the reasons sited by satisfied employees at most companies (decent pay, fair benefits, good work environment) eventually they'll say something that distinguishes the not-for-profit world: people choose to work there because they believe in the mission of the organization. Ask your donors why they give of their time and money and you'll hear it again, it's because they believe in your mission. Remember that. Your mission should be an active, living, breathing part of your not-for-profit organization, for supporters and employees alike. The greatest outreach tool you have are people who avidly believe in your mission.
During challenging economic times it's important live your mission. Everything you do, every action you take needs to reinforce that mission. It's also a good time to take your organization's mission and place it front and center, to remind everyone why they support you. Have it posted on the wall. Repeat it during donor gatherings. Quote it to the press. It's why your supporters were drawn to you. Show them, in words and in deeds, that you remember.
There isn't a not-for-profit in this country that exists in a vacuum, and that brings us to the third and final back-to-basics lesson:

C = Cultivate your community.
Not-for-profit people are, by their very nature, community people. They believe the organizations they support contribute greatly to the quality of life in their community. Sometimes it's a direct contribution, such as restaurants and bars who depend on traffic from their local performing arts center. Sometimes it's indirect, such as the pride everyone feels in having that same theatre call their community home.
When the economy is tough, every not-for-profit organization is looking for help, and no matter where you live, no matter how big your community, no matter how deep run the pockets, I can guarantee you this: the caring, giving people in your community who support your not-for-profit are on the list of every other not-for-profit. Almost anyone in this country who supports non-profit causes or organizations can tell a story similar to mine: every day I am bombarded with email, snail mail and phone calls, from organizations big and small, from groups all over the country, asking for my support. If you're a small local organization it might seem the other guys have the advantage; they've got bigger budgets and cross-country outreach. But you've got something they haven't got: you foster a sense of community. Take advantage of that. Remind your supporters that they get to see the value of their support up close and personal. Make yourself a visible presence; be a part of community celebrations, participate in town events, contribute in some way to worthwhile local causes. Cultivate your community by being an active part of it. We all want the best for the place we call home, and donors like me are likely to consider that when we allocate our precious discretionary spending.

As we all ride the ups and downs of a difficult economy, it pays to remember the basics. Your organization has a mission that people believe in, donors that care, and a community that offers support. Appreciate those gifts! And remember, now more than ever, to thank all those who continue to offer you their generous support.

Tuesday, May 13, 2008

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