Stewardship: More than a Thank-You

“Thankfulness is the beginning of gratitude. Gratitude is the completion of thankfulness. Thankfulness may consist merely of words. Gratitude is shown in acts.” – Henri Frederic Amiel, 19th century philosopher and poet

“Those of us who make planned gifts do not expect, nor do we want, lavish thank-you presents or excessive recognition. However, we do want to know that the organizations we support appreciate our philanthropy and will use our gift in the way we intend.” – H. Gerry Lenfest, 21st century philanthropist and Giving Pledge member

 

Stewardship is undeniably an essential part of any development effort, whether for annual fund, capital, or planned giving support.

Much of what is required for good, solid stewardship is simple common sense. Unfortunately, it’s far too often not common practice. That’s why mega-donor H. Gerry Lenfest reminded nonprofit professionals of the importance of stewardship when he wrote the Foreword for my book, Donor-Centered Planned Gift Marketing. 

Good stewardship means sending out an appropriate thank-you letter immediately after receiving a gift. But, as Henri Frederic Amiel pointed out, gratitude is about much more than simply sending a thank-you letter. Organizations need to demonstrate that they truly appreciate the support of donors.

As Lenfest suggests, stewardship need not involve a huge expense and lots of trinkets. Let’s face it, planned giving donors, for example, don’t exactly want a t-shirt that says, “I’m dying to give!” Instead, stewardship should involve a show of appreciation and an explanation of how gifts have been or will be used.

Janet L. Hedrick, author of Effective Donor Relations, asserts that donors should be thanked seven times for each gift. This does not mean one has to send seven thank-you letters. One should be much more creative than that. However, it does mean that one should look for multiple ways to express appreciation once a donor makes a gift. For example, here is a list of seven ways an organization can show its appreciation:

1. The donor gets a written thank-you letter from the development professional within two business days of a gift or gift commitment being received.
2. The organization’s CEO or Board Chair sends a thank-you letter.
3. A board member calls the donor within a week of receipt of the gift to express appreciation.
4. The organization thanks donors by name, unless the gift was anonymous, in its newsletter.
5. The organization thanks donors by name, unless the gift was anonymous, in its annual report.
6. The donor gets thanked with an invitation to a donor recognition event.
7. The donor gets thanked at other types of events throughout the year.

Legendary fundraiser James M. Greenfield, author of several books including Fund Raising: Evaluating and Managing the Fund Development Process, reveals the benefits associated with a luncheon event to recognize planned gift donors:

Hosting an annual luncheon for planned gift contributors has multiple benefits for each participant. First, they are reengaged after the gift has been made. Second, they can share this special time with one or two family members and/or their financial advisor who they are encouraged to bring as their guests. Third, they can enhance their legacy by serving as a testimonial for gift planning by sharing their story, which can also be used for a newsletter, magazine, or annual report. Fourth, led by a volunteer member of the planned gifts committee, the luncheon program should feature the CEO and professional staff members’ reports on current activities and future plans.”

As Greenfield suggests, thanking donors has many benefits. And, when the show of appreciation includes information about how gifts have been or will be used, donors will appreciate the effort and powerful things will happen as a result. 

For example, I once implemented a phone fundraising campaign for a hospital. For our control group, we simply explained the purpose of the current campaign and asked for support. For the test group, we told prospects how annual fund support was used in the previous year. Then, we told them the purpose of the current campaign and asked for their support. The test group, generated 68 percent more support than the control group!

In the context of planned giving, Lenfest, from the donor’s perspective, puts it this way:

Do not make the mistake of forgetting about us once you receive our gift commitment. We may truly appreciate how efficiently and effectively you handle contributed funds so much that we entrust you with another planned gift. We are also in a position to influence others to do the same, so bringing together current and prospective planned gift donors for an informational event may have a very good outcome. Publishing stories — with or without the use of the donor’s name — can show prospects the many backgrounds of planned gift donors. Even a reluctant philanthropist may be urged to serve as an example for others to follow.”

When it comes to stewardship, remember these three simple things:

1. Thank donors promptly and warmly.
2. Give donors information about how gifts are or will be used.
3. Honor the intentions of donors. Use a donor’s gift how you told the donor it would be used. Recognize the donor in the way you agreed to.

If you do these three things, you’re organization will distinguish itself from many other nonprofits and will be better able to maintain and increase the support of its existing donors while attracting new support as well.

That’s what Michael Rosen says… What do you say?

9 Fundraising Tips You Can Learn from a Savvy 7-year-old

Like Art Carey, a columnist for The Philadelphia Inquirer, summertime might conjure images for you of a lemonade stand out of a Norman Rockwell painting. Carey recently wrote about a variation on that image. He told of his encounter with 7-year-old LilyRuth Mamary who operates a mobile lemonade stand in suburban Philadelphia along with her 11-year-old sister, HannahRose.

The Mamary sisters charge $1 a cup, provide complimentary cookies, and donate all of the money to the SPCA. I think the story primarily caught my attention because, when I was eight-years-old, I began my fundraising career by donating the money I generated from my own lemonade stand to a local charity. But, it also interested me because I recognized some lessons that all fundraisers can learn from the Mamary sisters. So, here’s what you can learn from a 7-year-old and an 11-year-old:

Mission. LilyRuth explained why she wants to raise money for the SPCA, “If I could raise some money, that would really help animals, and they might get adopted and then another animal and another person would be happy.” It’s a pretty simple statement. It’s not fancy. It wasn’t crafted by a strategic-planning consultant. But, it very clearly says what LilyRuth is striving for. It explains her intended outcome. It drives her passion and efforts. Everyone involved in fundraising needs to work for an organization with a powerful, meaningful, clear mission statement. And, everyone in the organization needs to know the mission statement. By the way, if you have to explain the mission statement to someone, it’s not a good mission statement.

Passion. LilyRuth and HannahRose are passionate about animals. They each have adopted a kitten from shelters. The family also owns two dogs that also came from shelters. For the past five years, the sisters have also volunteered about once a month at local SPCAs and animal shelters. Their passion for the cause comes through when they talk with their customers. Fundraisers need to be passionate about the causes they work for. Prospective donors, in part, will take into account your passion when evaluating whether your organization is worthy of their support. One way to demonstrate your passion is to donate to the cause for which you work. The Mamary sisters aren’t just satisfied with raising money for a good cause; they’ve “donated” their home to four animals in need.

Mobilize.The sisters could have set-up a traditional lemonade stand in the comfort of their own front yard. Instead, they thought they could do more business by loading their lemonade on to a wagon and taking it to an area park frequented by dog walkers and joggers. As a result, business is booming. Fundraisers need to make it easy for donors and prospects to find them. You also need to think of creative ways to spread your message. Are you using social networking services like Facebook, Twitter, and LinkedIn, just to name a few? Are you asking donors to refer prospective supporters? Are you getting out in public and talking up your cause? Like the Mamary sisters, get out there.

Photo by Moyan Brenn via Flickr

Appreciation. The sisters don’t just sell lemonade; they give their customers complimentary cookies as kind of a thank-you. What a nice surprise. Who doesn’t like cookies? What nice things are you doing to show your appreciation to your donors? Thank your donors appropriately (see last week’s blog post about thank-you letters). Also, think of creative ways you can recognize donors for their support beyond simple thank-you letters.

Quality. The sisters don’t serve lemonade from a can or carton. Their lemonade is made from organic lemon juice, real sugar, and water. It’s a quality product that shows respect for their customers. Quality counts. Fundraisers need to present a quality image in everything they do. That means looking neat and tidy when meeting prospects and donors. It means not having any spelling errors in your direct mail letters. It means producing high-impact results. You get the idea. Donors have plenty of choices of where they can give their money. Earn their trust and support by ensuring quality in all things.

A Lesson Learned in Vegas Can Help You Score Big

I was recently in Las Vegas. I was there to see Keys to Tall Buildings, a play written by Lloyd Noonan (http://twitter.com/lloydnoonan), a former development professional turned playwright. In my friend’s darkly comic play, the hero (or anti-hero, depending on your point of view) kills “bad” people. The initial twist is that the “bad” people have committed only minor offenses such as failing to properly sort recyclables and trash at the Whole Foods Market. The second twist comes when we learn that those responsible for minor offenses are also guilty of terrible crimes. Oddly, this got me thinking about the impact of stewardship on the philanthropic process. Allow me to explain.

Most donors to nonprofit organizations make modest donations, at least initially. Even people of great means make modest contributions. For example, I did an analysis for one large charity and found that over one-third of their donors of $5,000 or more made an initial gift of $100 or less. In other words, as many modest donors gained confidence in the organization, they increased their giving. One way this organization earned the confidence of donors, and their increased support, was with effective stewardship.

Consciously or subconsciously, donors often test nonprofit organizations. They seldom start the relationship by making the largest possible gift. Instead, donors want to see if the organization uses their money responsibly. They want to see the impact of their giving. They want to know that the organization appreciates their support. Good stewardship will help donors answer the questions they have about the charity. Effective stewardship will also set the stage for the next ask. The better the stewardship, the better the outcome of that ask.

5 Must-Do Tips for Fundraisers from a Major Philanthropist

In my previous blog post, I focused on the advice donors themselves provided for how nonprofit organizations can enhance their planned gift marketing efforts. The seven tips they provided covered things that organizations should embrace. For this post, I want to share some wisdom from Peter Benoliel, Chairman-Emeritus of Quaker Chemical, who is a generous philanthropist and recipient of the Partnership for Philanthropic Planning of Greater Philadelphia’s Legacy Award for Planned Giving Philanthropist. Benoliel offers five development tips for every development officer, as an individual:

Development professionals, senior staff, and volunteer leadership should be passionate about the organization and its mission.

If you’re not able to be passionate about the organization you represent, how can you be effective? You can’t. So, either get passionate or get out. Prospective donors will take their cue from you. If you’re not genuinely passionate about the organization, they won’t be either. Be passionate, and share your passion. When you do, just be sure to be sincere since prospective donors can smell pretense a mile away.

Staff and volunteer fundraisers should be morally armed by making their own donation first.

Yes, I know. Your organization is probably not paying you enough. But, you’ve still decided to work there. And, donors, like Benoliel, expect you to support the organization with a donation. They feel that since you have a vested interest in its well-being, you should support the organization before asking them to do so. If you don’t care enough, why should they?

Donors Know Best: 7 Tips to Improve Planned Gift Marketing

If you want to enhance your planned gift marketing efforts, you can discover what your peers are doing that works, test different approaches, or talk with a consultant. However, I think the best place to start is with donors themselves. Finding out what your intended audience wants, and learning what they think is appropriate or inappropriate is essential to creating an effective marketing strategy. Fortunately, researchers Adrian Sargeant and Elaine Jay have already done much of the work for us. In a series of focus groups, the researchers found out from donors how nonprofit organizations can improve the promotion of legacy giving. Here is some of what the researchers learned from donors:

“Make it clearer that smaller amounts are useful, too.”

The terms “legacy” and “bequest” are often misunderstood. Many prospective donors either do not know what the terms mean or think that a legacy gift is something massive that only rich people or celebrities do. Prospective donors, whether rich or not, want to know that you are looking for gifts of all sizes, not just multi-million dollar donations (assuming that’s true for your organization). So, tell them. And, when doing articles that spotlight planned gift donors, think about diversity. Don’t just tell the stories of the major philanthropists to your organization; share the stories of smaller donors, too.

“Be specific as to the goals of the bequest. What gains are expected? How will the community gain?” “Explain what the organization does with its gifts.”

Donors want to know what impact their gift will have. It’s true with current giving. It’s also true with deferred giving. The more you can help prospective donors understand how their contributions will allow the organization’s values to live on in the future, and how the gifts will impact those served by your organization and the community at-large, the greater your chances of securing planned gifts.

“By publishing actual cases of how they have helped.” “Storytelling—reflecting future work, past work, spiritual legacy of work well done.”

Prospective donors don’t want to hear made-up, composite stories. Fictional stories are hollow. Donors want to know how actual planned gifts have really helped. Prospective donors want to know why others have been inspired to give. So, tell real stories about real donors. Share what moved those donors. Tell how previous planned gifts have helped your organization with mission fulfillment. And, to the best of your ability, relate how future realized planned gifts will allow your organization to continue to do its fine work and maintain its values.