Posts tagged ‘George Washington University’

November 30, 2016

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.

money-in-hands-by-401k-2012-via-flickrMany 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:

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July 6, 2012

Two Major Factors that Demotivate Donors

I recently spent a fair bit of time teaching graduate students, in my “Advanced Fund Development” class at Drexel University, about what factors motivate major and planned gift donors. Much research has been done and much has certainly been written on the subject. I even felt strongly enough about the topic to have devoted a full chapter to it in my book, Donor-Centered Planned Gift Marketing.

While it is critically important to understand what motivates people to donate money and, more specifically, to make major and planned gifts, it is also necessary to recognize how individuals can become demotivated.

While an organization’s being polarizing (see my previous post about The Salvation Army), self-centered, or running afoul of the factors that motivate people will certainly demotivate prospective donors, there are two particular demotivating factors that are especially noteworthy. The George Washington University discovered the two factors in a focus group study it commissioned involving university alumni.

Taking care of family is a primal need.

One of the biggest deterrents to making bequest commitments is the universally held belief:

Family comes first.

That’s to say, family comes before any nonprofit organization. The priority for most individuals is to take care of their loved ones. This often means keeping wealth within the family. To respond to this concern, organizations need to show prospects how a meaningful gift can be made, at a minimum, without asking loved ones to suffer. When possible, prospects should be shown how a planned gift can actually benefit loved ones. Consider this example from the Smithsonian Institution that was shared with me by John B. Kendrick:

When I first arrived at the Smithsonian Institution as Director of Planned Giving, a colleague recommended that I contact Cliff, a person who had responded to a [Charitable Gift Annuity] advertisement in Smithsonian magazine a few months before. Cliff wanted to make sure the Smithsonian was strong financially. At age 96, he was still incredibly alert mentally, and he wanted to provide a lifetime income for his wife, who was nearly 20 years younger.

He appreciated the Smithsonian, but frankly was more concerned about the safety of her guaranteed payments than supporting a particular charitable purpose. A consultant to the Smithsonian had traded more than 20 e-mails with Cliff, who originally inquired about a $10,000 CGA.

As he became convinced of the Smithsonian’s financial strength, he quickly increased his inquiry to a CGA for $1 million. But no one had ever called him—they had simply been trading e-mails! I telephoned Cliff, and the discussion quickly progressed; within another two months he sent in stock certificates to establish a $500,000 CGA for his wife. Over the next year, he created two additional $500,000 CGAs for his wife—for a total of $1.5 million.

But that’s not the end of the story.

He had a son who was not strong with money management. Cliff still actively managed his own finances and made periodic distributions to his son. I suggested setting up a CGA or Charitable Remainder Trust now for the son, but Cliff insisted that he wanted to manage his money outright for as long as possible. We agreed, however, that a testamentary CGA for his son would meet his desires. I provided sample language, and Cliff’s lawyer modified his estate plan to include a $2 million testamentary CGA.

From a $10,000 inquiry, we received $3.5 million in gifts because we took the time to show Cliff how we could help him take care of his family.”

The other major demotivator discovered by The George Washington University is:

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