How to Stop Offending Your Women Donors

Just days ago, T. Clay Buck, CFRE, asked a survey question on Twitter:

An informal poll for any who identify as female and also contribute philanthropically. If you are the primary gift giver and are in a relationship, have you ever been listed secondarily or as ‘Mr. and Mrs.’ even though you made the gift?”

While far from being a scientific study, Buck’s poll found that 82 percent of the 68 respondents answered “Yes,” indicating they were recognized inappropriately. Despite not being statistically reliable, the results are sufficiently striking to indicate that the nonprofit sector has a donor-recognition problem.

I’m not surprised. This is the flip side of a problem I’ve talked about on many occasions. Charities often treat women as second-class donor prospects. Now, we see that some nonprofits also treat women as second-class donors.

These problems might be due to carelessness. Or, it could be that some fundraisers are gender biased. Regardless, the way in which some charities treat female prospects and donors is offensive. It’s also stupid. The reality is that women are more philanthropic, in many respects, than men are. Therefore, charities would be wise to immediately address the way they engage with female prospects and donors.

Although I’ve written in the past about gender differences when it comes to philanthropy, I want to highlight some insights from professionally conducted, valid research that underscore the importance of working more effectively with prospects and donors who are women.

A whitepaper from Optimy, Women in Philanthropy, reveals:

• Women make 64% of charitable donations.
• Women donate 3.5% of their wealth, on average, while men contribute 1.5%.
• Women account for 45% of American millionaires.
• Women will control 2/3 of the total American wealth by 2030.
• Women are also playing a greater role in philanthropy because of the growth in Giving Circles. Of the 706 Giving Circles reviewed, women led 640.
• Women made up 77% of foundation professional staff in 2015.

For more insights from Optimy about the role of women in philanthropy and a look at what motivates female donors, download the FREE report by clicking here.

When it comes to planned giving, women are critically important according to a Fidelity Charitable Gift Fund study I first cited in my book, Donor-Centered Planned Gift Marketing:

• High-income women (those with an annual household income of $150,000 or more) demonstrate a high-level of sophistication in their giving by seeking expert advice.
• High-income women are more likely to use innovative giving vehicles such as donor-advised funds and charitable remainder trusts. 16% of high-income women have or use a donor-advised fund, charitable remainder trust, or private foundation, versus 10% of high-income men.
• 7% of high-income women made charitable gifts using securities, versus 3% of high-income men.

Yes, both men and women are valuable contributors to charities who we should cherish. Unfortunately, far too many charities fail to fully appreciate the vital role that women play when it comes to philanthropy. Women are often ignored as solid donor prospects deserving of attention. When women do give, they are often denied the respect and recognition they deserve as Buck’s poll suggests.

Here are some questions to consider as you review your own organization’s donor recognition procedures:

Fantastic News and Opportunity for the Nonprofit Sector!

The nonprofit sector received a major piece of good news at the end of July. American Gross Domestic Product in the second quarter of 2018 grew at the annualized rate of 4.1 percent. This represents the economy’s fastest growth rate since 2014. GDP growth in the first-quarter was a healthy, though unremarkable, 2.2 percent.

I don’t really care if you love or hate President Donald Trump. I’m not making a political statement. I’m simply reporting on an economic fact that has profound implications for nonprofit organizations.

The news is fantastic for charities because overall-philanthropy correlates with GDP. For more than four decades, philanthropy has been between 1.6 and 2.2 percent of GDP. In 2017, philanthropy was once again at 2.1 percent (Giving USA). This means that when the economy grows, we can expect growth in charitable giving.

Think of it this way: For more than 40 years, the nonprofit sector has received about a two percent slice of the economic pie. It’s safe to say that that approximate proportion will continue. So, if the economic pie becomes larger, that two percent slice becomes larger as well.

While I’m oversimplifying, my fundamental point is sound: When the economy grows, so does philanthropy.

Some economists and commentators believe the robust GDP growth rate is not sustainable. However, if the impressive economic growth continues, or even if growth continues at a more moderate pace, we can still expect 2018 to be a good year for charitable fundraising.

Given the positive economic environment, you have an opportunity to successfully raise money for your organization. But, it’s up to you to seize that opportunity while the positive economic environment lasts.

Here are 10 things you can do to raise more money while the economy is good:

1. Hug your donors. Ok, maybe not literally. However, you do need to let your donors know you love and appreciate them. Do you quickly acknowledge gifts? You should do so within 48 hours. Do you effectively thank donors? You should do so in at least seven different ways. You should review your thank-you letters to ensure they are heartfelt, meaningful, and effective. Have board members call donors to thank them in addition to your standard thank-you letter.

2. Tell donors about the impact of their gifts. Donors want to know that their giving is making a difference. If their giving isn’t making a difference or they aren’t sure, they’re more likely to give elsewhere. So, report to your donors. Tell them what their giving is achieving and that their support is being used efficiently.

3. Start a new recognition program. One small nonprofit organization I know started a new, special corporate giving club. CEOs of the corporate members are placed on an advisory board, receive special recognition, and are provided with networking opportunities. This new recognition program generated over $50,000 in just a few months. While enhancing existing recognition efforts is beneficial, starting a new recognition program can yield significant results.

4. Ask. Your organization is providing important services. It needs money. Give people the opportunity to support your worthy mission. When you ask for support, just be certain not to limit the ask to cash gifts. Research shows that organizations that receive non-monetary donations (e.g., stocks, bonds, personal property, real estate, etc.) grow significantly more than organizations that receive only cash contributions. Partly as a result of the new income tax code, the number of Donor-Advised Funds has grown significantly. So, make it easy for your supporters to give from their DAFs.

Want More Donors and More Money?

Would you like to find more donors?

Would you like to have more donors renew and upgrade their support?

Would you like to raise more money for your nonprofit organization?

If so, avoid de-motivating people by making them think their support is insignificant, unnecessary, and unwanted.

Donors want to feel their contributions are making a difference. If they do not feel that is the case, they’ll take their support elsewhere. Consider the following representative comment voiced in a focus group hosted by researchers Dr. Adrian Sargeant and Dr. Jen Shang:

[W]e feel this strong sense of wanting to make a difference.”

Yet, despite this simple truth, many charities regularly alienate prospects and donors. Although the alienation is almost always unintentional, it remains a very real problem. Reflect on the following representative comment heard in a focus group study conducted by The George Washington University:

When you see bequests given to universities they are substantial. You really feel embarrassed that you don’t have that money.”

So, what are nonprofit organizations doing that is embarrassing and alienating donors? Well, many things. For now, I’ll focus on just one action that underscores the point raised by the GW alumnus.

Many organizations celebrate the support of mega-philanthropists. They profile these individuals in institutional publications; they recognize them on donor walls; they thank them at public events. While all of this is perfectly appropriate, a problem arises when an organization recognizes mega-donors to the exclusion of all other supporters.

When people see that only mega-donors are celebrated, they can begin to think that their support is unnecessary and not genuinely appreciated. This is true for annual giving, planned giving, capital campaign giving, and other types of campaigns.

If you want a diverse group of supporters, be sure to celebrate a diverse group of supporters. When people see people like themselves supporting your organization, research shows they’ll be more likely to support as well. When I speak of cultivating a diverse group of supporters, I mean in every sense of the term: gender, race, religion, age, philanthropic means, etc.

That’s an idea that the folks at the Arizona State University School of Nursing and Health Innovation understand. As I shared in my book, Donor-Centered Planned Gift Marketing:

Gallup Poll: Donors Not Feeling the Love

The most recent “Health and Well-Being Survey” conducted by Gallup provides alarming insight about the effectiveness of nonprofit donor recognition efforts.

Among those surveyed, 81 percent say they have donated money to a charity within the past year. In addition, 52 percent of survey respondents say they have volunteered their time during that same period.

Given the high-level of engagement, Gallup wanted to determine whether survey respondents were “feeling the love and received recognition for their efforts to help improve the city or area where they live.” Unfortunately, the findings are disturbing:

•  Only 15 percent of respondents agreed with the statement “In the last 12 months, I have received recognition for helping to improve the city or area where I live.” This includes 5 percent who “Strongly Agreed” and 10 percent who “Agreed.”

•  Conversely, a whopping 69 percent of respondents disagreed with that same statement, including 45 percent who “Strongly Disagreed” and another 24 percent who “Disagreed.”

There are a few things that might explain the disconnect between the philanthropic/voluntary involvement of survey respondents and the recognition they received, or didn’t:

1.  Many of the respondents may have donated or volunteered for non-local causes. For example, donors may have given to alma maters in a different geographic region. Alternatively, donors may have given to or volunteered with national or international charities.

2.  Survey respondents might not think of their giving or volunteering as “[helping to] improve the city or area where they live.” For example, if one gives to a local animal shelter, she might think of it as helping the kittens and puppies but not necessarily think of it as improving the community.

3.  Survey respondents might not fully understand the definition of “recognition.” For example, some donors might think of “recognition” as being profiled in the local newspaper because of their philanthropic efforts. Other donors might think of “recognition” as being honored with a plaque at a special event. Others might think “recognition” means receiving a t-shirt. Still others might think of “recognition” as a well-written thank-you letter.

If the disconnect between giving/volunteering and recognition was small, I wouldn’t be too worried; the disconnect could be explained. However, the disconnect revealed by the survey is massive. Even allowing for a large margin of error for the reasons I’ve just outlined, I suspect we’d still see a significant #DonorLove gap.

Considering the anemic donor-retention rates throughout the nonprofit sector, I’m even more convinced that Gallup has uncovered a legitimate concern. As a statement from Gallup says:

It seems most communities and organizations are missing an opportunity to validate donation and volunteer efforts by recognizing those who offer them.”

Here are just some of the things you can do to ensure your donors and volunteers feel appreciate:

9 Speaking Tips for Your Next Recognition Event & 2 Things Never to Do

When addressing a group of supporters who have gathered at a donor-recognition event, it is important to effectively manage both the message and how you deliver that message.

A colleague contacted me recently for some advice about his upcoming appreciation event:

I will be emceeing and addressing the members of our legacy society. The President and the Chair of our current capital campaign are both speaking as well, but it falls to me to open the gathering and set the tone, then close the gathering and send them on their way. Given an opportunity like this, what would you make sure you said? Do you have any words of wisdom?”

The answers to the above questions will vary somewhat based on the unique culture of the group. Determining the correct message and how to appropriately deliver it will require sensitivity to the organization’s traditions, regional culture, and national mores. With that in mind, here are nine ideas what he might consider doing followed by two things he should definitely never do:

1. Be lively. I have found that many legacy society events can be dull, even funereal. If that’s what your folks are expecting and want, then give it to them. However, if the situation allows, I encourage you to try to be a bit light and jovial. Sometimes, we can take ourselves a bit too seriously, particularly when it comes to planned giving. Giving should be a joyful, positive, uplifting experience, even for a very serious cause. Keep that in mind when addressing your supporters.

2. Show appreciation. Just because it’s a donor-recognition event, do not assume that your supporters will feel appreciated simply by being there. Make sure you tell donors that you appreciate not just their gifts but also their involvement and caring.

3. Tell stories. People also like a good story, especially if it’s amusing, has a twist, or is heart-warming. Think of what you want to say. Then, think if there’s a story you can tell that will make the same point. Stories engage people by allowing them to put themselves into the situation. Hearing a good story activates many of the same parts of the brain that would be activated if the listener were actually living the situation. For maximum impact, make sure to use real stories.

4. Tell donors how gifts have been used. It is important for donors to understand that the organization wisely uses donations to achieve its mission efficiently. Very often, we focus on how gifts will be used. That’s certainly important. In fact, that’s my next point. However, we must also show folks the impact of past support. That gives us an opportunity to provide evidence of our organization’s effectiveness.

So, if a realized bequest contribution allows a social service agency to provide 50 meals to the homeless each week, then share that story. Remember that bequest commitments are revocable. And, if treated well, your planned gift donors will be among your best prospects for another gift. Therefore, you’ll want to keep reassuring the people that made those commitments that they made the correct decision.

Sharing a story about a previous donor whose gift has been realized will do a number of important things:

• Tells people that donors continue to be remembered and appreciated even long after they’re gone.
• Reminds folks that others have made a planned gift. People like to know that they’re part of group.
• Underscores that planned gifts have a real impact.
• Implies that all donors will likely be similarly appreciated and have their gifts wisely used to achieve the organization’s mission.

5. Tell donors how gifts will be used. For planned gift commitments that might not be realized for years to come, it can be difficult to demonstrate how the realized donation will be used. However, while difficult, it is still something you have to do. It is important for you to let donors know that their gifts will work to wisely benefit those the organization serves. And, if appropriate, tell them how the broader community or society will benefit as well.