Breaking down the “my donor” mentality between direct marketing and major gifts

The first thing that many major gift officers will instinctively do when they see their donor portfolio is to shut down direct marketing efforts to those donors.  After all, you want the donor to take your call and don’t want them mistaking you for a telemarketer.

Imagine if you tried this in any other walk of life.  Imagine going to Jeff Bezos and saying “this person has been buying a lot of stuff from us on Amazon.  Let’s make sure they never get another email from us, because I really think that I can sell them the Lladro Niagara chandelier for $100,000 (plus $4.49 shipping, which is either far too much for shipping or far too little).”

bond_villainHe would laugh at you until he got stomach cramps.  Or he would have an underling, possibly with a mechanical arm, throw you in a vat of piranhas while he stroked a cat.  All depends on the mood.

Bottom line, it’s silly to take someone who has been donating routinely by one means and, by all available evidence, been satisfied with it and cut them off from that means in the hope they might give more.  You should only change this if the donor asks you to (in which case, you should do so immediately, while smiling) or if you have a relationship with the donor to the point that there’s an alternate communication strategy in place.

That said, the major gift officer is right.  You don’t want to treat a potential donor the same way as a potential $10 donor.  This is not a defense of sending someone with the capacity to give a transformative gift the same 12-mail-pieces-and-a-cloud-of-dust approach that everyone else gets. It means:

A donor newsletter.  You hopefully are doing this already.  And you hopefully are basing it on Tom Ahern’s Making Money With Donor Newsletters.  In case you aren’t, your donor newsletter should:

  • Focus on “you” — you being the donor
  • Focus on what “you” did — progress updates and impacts
  • Have short articles
  • Be written for skimmers — white space, bullets, and compelling headlines and images
  • Have a return envelope but not be as “ask forward” as a traditional mail piece.

This more cultivating newsletter will help you make money from these donors.  But it also creates a holding pattern for your major gift officer.  You’ve already made the segue to what impact the person can have, leading to a more natural conversation when the officer is able to get in front of the donor.

Higher-touch communications.  This can be simple things like crossing out the impersonal salutation on a letter and writing in “Dear Nancy,”.  Paperclips in your mail pieces show that the piece has been touched by human heads.  First-class postage is a nice touch, as is expedited postage to get the mail piece to the donor.  One nonprofit of my acquaintance has their CEO write a holiday letter in blue ink, then copies it on the color copier for a handwritten appearance.  These are techniques that can segue naturally to higher-value communications with a major gift officer.

Higher-value communications.  We’ve discussed the supreme value of exclusivity.  A major donor may want to be able to get a sneak preview of your upcoming report or have an exclusive briefing call with your head of government affairs.  These types of velvet rope communications can build to events where major gift officers can meet with them face to face.  Once natural enemies, direct marketing can set up the major gift relationship.

Helping define the major gift portfolio: You are looking for one of two things: a long giving history with multiple gifts per year, increasing gift amounts, and participation in the mission or someone who makes an unusually high first gift.  Usually the first group will be better prospects.

Thank extremely well.  Have you ever heard a potential major donor consider not making a major gift because they were thanked too well or too often?  Me neither.

Overall, you are looking to create a spirit of cultivation with these donors.  And you should give of your donors to your major gift officers.  By being a strong resource for them, you prevent them from trying the nuclear suppression strategy with you, allowing you to maximize revenue from these donors over time.

Breaking down the “my donor” mentality between direct marketing and major gifts

Step one in welcoming: the thank you

I’ve already done a week on thanking your donors.  Somehow, I managed to talk about why to thank people, rules for thanking donors, 50 ways to thank donors, and ways to thank people multichannel-ly.

And I didn’t talk about what should be in a thank you.

It’s a wonder you even read this blog — thank you for that.

One source to which I’m indebted for this week and many others is Roger Craver’s Retention Fundraising. It is a classic about how to retain donors that I can’t recommend highly enough.  He posits that there are seven drivers of retention:

  • Are you effective at your mission?
  • Does the donor know what to expect from interactions with you?
  • Are your thank yous timely?
  • Do you listen?
  • Does the donor feel s/he is a part of something important?
  • Does the donor feel appreciated?
  • Does the donor receive information about who is being helped?

These are the things you are trying to accomplish with your thank you, and with your welcome series.  Most of these apply to any acknowledgment, but they are most important for a first gift.

Remember emotion.  So many acknowledgments aren’t thank you notes.  They sound like they were written by someone trying to tell Sgt. Friday about your donation.

jack_webb_joe_friday_dragnet_1957

At 1430 hours, the suspect made a donation.
It was tax deductible pursuant to 26 US Code 170.

They are long on amount and date and making sure your name right and short on capturing anything related to the donor’s experience in making the gift.  As we’ve discussed, the vast majority of gifts are made not because of what someone thought, but what they felt.  The thank you know should respond to this in kind.

Specify to why.  Along the same lines, the thank you should not just replicate the emotion of the original, but also tie into the story and the reason for giving.  If someone gave with a petition attached, the thank you should reference the petition and how it is helping make a difference.  If they gave you their email address on the reply device, they should be thanked in both medium.  Ideally, the signatory of the thank you should be the same signer of the appeal letter.

Especially with a first gift, it’s important to establish trust.  Relating the thank you to the gift is a good way of establishing that trust.

Remember their past giving.  If they’ve been giving for 10 years, let them know you know that.  While not strictly related to welcome packages, it’s important not to forget this.

Prove the impact.  This also helps build trust.  If you said the donor’s gift would help build a well, the story and pictures, and emotional impact from the thank you should be related to the impact from the well.  Especially if you are not a name-brand charity, the donor is taking a chance on you doing what you say you are going to do with the donation.  Letting them know that you did helps build a relationship and ties them to the impact (not the output) they were hoping to have.

Remember, the donor wants to know who they helped and why that’s important.  Help them.

Differentiate.  A first donation is more predictive than any other donation.  If someone donates an abnormally high amount to your first solicitation of them, they are uniquely dedicated to your cause and/or of substantially greater means than the average donor.  Chances are good that you have a special procedure for anyone who gives over a certain amount (let’s say $1000) to your organization, whether it’s a phone call or handwritten note.  I would advocate you extend this to people whose first gift is abnormally high.  It may seem odd to extend the same treatment to someone who gives $1000 and someone who gives $100, but chances are good that that $100 donor is your $1000 donor of the future.

Do not delay for differentiation.  That said, you hear horror stories of processes for larger donors that delay their thank yous.  You may think I’m exaggerating here, but at the summer camp for future non-profit direct marketers, the counselors would shine a flashlight on their face from under their chin and say things like “And then the letters sat on the executive director’s desk.  And they sat.  And they sat.  And they sat.  For over. Three.  Weeks.”  We campers would not be able to go to sleep, knowing that our best donors were getting the worst treatment.

Perhaps I went to the wrong type of summer camp.

Anyway, there are four solutions to this dilemma:

  1. Light a fire under whoever is supposed to be writing or calling
  2. Pick someone else to do the writing or calling (or have a team of people to share the load)
  3. Use a quasi-high-touch solution like outbound voice mail or pseudo-handwritten cards
  4. Send a regular thank-you note immediately, then follow-up with a phone call or handwritten note

All of these have their merits, but I strongly recommend solution four.  Not only will this thank the donor twice, which is rarely a bad thing, but it will make your process independent of personalities.  I am a big fan of processes that work regardless of the people who are in them.  You may say your ED or board member is extremely punctual with their calls and letters, but this may not always be the case.

Test high-touch pieces below where you currently are doing them.  If you aren’t differentiating at all, well, now’s a great time to start.  If you are, I recommend a test of doing handwritten notes, phone calls, or other high-touch solutions to at least a segment of whatever half of your current threshold value is (so, if you do $1000+, try it with $500+ donors).  Track their giving over the next year and see if it pans out.

My guess is that, if your organization is like almost every other organization I’ve seen, three things are true:

  • Your current threshold was set by someone in the mists of time because it was a good round number that didn’t sound like an overwhelming amount of work for the person/people involved.
  • It has gone through little to no scientific inquiry in the interim.
  • There are touchpoints you can do that will raise the value of the next tier of donors that will justify the amount of work necessary.

There is a who-is-going-to-tie-the-bell-around-the-cat’s-neck problem with this solution.  I would recommend you, the reader of this blog.  Talking to contributors and thanking them for making important work possible is beneath no one.  You will likely not only get a lift in your response rates, but you will also gain vital donor intelligence that few others in your organization will get by having actual conversations with actual donors.

Turn off regular communications with new donors for a certain amount of time.  In the mail, this is easy.  Chances are you have already pulled the list of people you are going to be mailing 30-60 days from now.  Thus, a suppression emerges naturally (although you may wish to lengthen it).  For online initiates, there is a temptation to drop them into regular communications immediately.  

Don’t.

Remember yesterday’s post — you are looking to thank this person, learn about them, have them learn about (and perhaps interact in a non-donor context with) you, and make a strategic ask for a second gift.

If they are dropped into regular communications, there is a near-100% certainty that they will get asked with no learning, which is not strategic.

The amount of time is not really the important part; accomplishing your communications goals is, so you can test what the right amount of time is for you.  And, as Roger told you at the top, be sure to let them know what they can expect from you (and I would add “and allow them to change that default”).

What do you put in the interim?  Well, that’s what I’ll talk about for the rest of the week.

If you would like to get these weeks in digest form, please sign up for my weekly newsletter, where you’ll get not only context for these posts, but also my random neural firings and previews of upcoming posts.  You won’t want to miss it.

Unless you do and that’s fine too — I just appreciate that you are reading.

Step one in welcoming: the thank you

A direct marketing bridge to… major gifts

Direct marketing specialists and major gift specialists seem to be opposites in style and approach.  One is impersonal, mass-market, with knowledge of the aggregate not the specific – the marketing equivalent of the Air Force; the other is all about personal relationships, forged one on one, with intimate knowledge of that one person you are pitching – the equivalent of boots on the ground Army or Marines.  This can often cause them to be rivals in the same ways the service branches are; they can also work together to accomplish a mission together like the service branches.

As a direct marketer, developing a small budget to a major gifts program is part defensive.  I once worked with a major gift officer who would mark a donor as no mail, no phone, and no email the moment they got on her radar screen.  Not only did this deprive us of the only real source of revenue we had from these donors, but it also deprive the donor of the information that was tethering them to the mission and tugging at their heart strings.  And when she left, we had no way of differentiating real unsubscribes from these unsubscribes of pseudo-convenience.

This is going to happen if you can’t create a positive experience for potential major donors in your direct marketing program.  Yet it can happen and it can cost tens or hundreds of thousands of dollars for the nonprofit.  There are only two reasons to stop communications with your potential major donors in this way: 1) if they ask you to or 2) you have a relationship with that donor to the point that there is a substitute communications strategy and ask framework in place.

So your role in direct marketing is to build the relationship with the donor over time.  This doesn’t necessarily mean a slower cadence; rather, it means different types of pieces, including a donor newsletter telling them about their accomplishments – the true impact of their giving.  It can also include higher-touch, higher-value communications – handwritten notes or cards, invitations to special events or briefings, or the like.  These can enter the communication stream gradually as your relationship builds.

Direct marketing is also a great vehicle – in fact, a primary vehicle – for identifying those donors who may be receptive to a major donor ask.  While some amount of wealth is certainly a necessary condition for a person to be able to make a major donation, the more important thing to the organization is the tie to the organization.  People often forget this.  If I had a nickel for every time a nonprofit brainstorming potential targets thought of hitting up Bill Gates or his foundation because of a friend of a friend, I would be blogging about what yachts are the most fun to waterski behind.

bill_gates_july_2014

If this man is your major donor strategy,
you do not have a major donor strategy.

What you are looking for is:

  • Giving history – long, repeated, multiple gifts per year, and increasing gift amounts
  • Participation – telling a story, coming to an event, volunteering
  • A clear passion for at least one aspect of your mission either from his/her giving history or participation

The one exception to this is people who make unusually high (whatever this is for your organization – probably between $100 and $1000) first gifts.  This is probably a person who has been interested in your cause for a while or has an important reason to start giving now – they may be ripe for personal interactions as much as your loyal long-term donors.

Looking at this compact list, you can see that you can not only help solicit major donor prospects, you can help create them.  This is by incorporating upgrade strategies into your communications.  If you have well-defined recognition for different levels of giving (and you should), you can make those aspirational, especially for those on the cusp of reaching them, by making the ask for the next highest level of recognition.  Those recognition levels should also be a prominent part of your mail, phone, and online communications, as well as your acknowledgments for these donors.

Finally, remember to thank extremely well.  If you are at lost as to how, check out 50 ways to thank your donors.  Some are usual, some are a bit nutty, but they may spark some ideas to giving your major donors and potential major donors the love they deserve.

A direct marketing bridge to… major gifts