Posts tagged ‘trust’

February 10, 2017

What is the Most Important Thing a Donor Can Give You? … It’s Not What You Think It is.

What is the most important thing a donor can give you?

If I were to ask that question at an Association of Fundraising Professionals conference, I suspect most members of the audience would respond by saying, “A big check!” If I were to pose the same question at a National Association of Charitable Gift Planners convention, participants might shout out, “A Charitable Remainder Trust!”

In other words, we tend to think that the most important or valuable thing a prospect or donor can give a charitable organization is money, and preferably lots of it.

However, do we have the wrong goal in mind?

Maybe.

Amy Cuddy, a psychology professor and researcher at the Harvard Business School, says that successful professionals must first earn an individual’s trust and respect. “Psychologists refer to these dimensions as warmth and competence, respectively, and ideally you want to be perceived as having both,” according to a report in the Business Insider. The article continues:

Interestingly, Cuddy says that most people, especially in a professional context, believe that competence is the more important factor. After all, they want to prove that they are smart and talented enough to handle your business.”

However, Cuddy’s research demonstrates that earning trust is more important than proving competence. She shares her findings in her book, trust-by-dobi-via-flickrPresence: Bringing Your Boldest Self to Your Biggest Challenges. She also provides plenty of proven tips for engendering trust.

So, we see that the most important, valuable thing a prospect or donor can give you is their trust. Still not a believer? Keep reading. Cuddy’s research findings are in alignment with the studies completed by professors Adrian Sargeant and Jen Shang, of Plymouth University, who have stated:

There would appear to be a relationship between trust and a propensity to donate…. There is [also] some indication here that a relationship does exist between trust and amount donated, comparatively little increases in the former having a marked impact on the latter.”

In other words, the research demonstrates that the level of trust one has in a charity and its representatives, affects both willingness to give and the amount of giving.

Cuddy says:

If someone you’re trying to influence doesn’t trust you, you’re not going to get very far; in fact, you might even elicit suspicion because you come across as manipulative. A warm, trustworthy person who is also strong elicits admiration, but only after you’ve established trust does your strength become a gift rather than a threat.”

If you’re like most fundraising professionals, you instinctively understand the importance of establishing a trusting relationship. However, what are you doing to build and maintain them?

Here are just five helpful tips for earning and building trust with prospects and donors:

March 22, 2016

There’s Something Important You Need to Do Before You Can Raise More Money

Do you want to acquire more new donors?

Do you want to retain more existing donors?

Do you want to upgrade the support from more of your donors?

Do you want to get more planned gift commitments?

To achieve any of those goals, there’s something essential you must first do. You need to build trust. Trust is the cornerstone of all fundraising success.

Consider what noted philanthropy researchers Dr. Adrian Sargeant and Dr. Jen Shang have written on the subject:

There would appear to be a relationship between trust and a propensity to donate…. There is [also] some indication here that a relationship does exist between trust and amount donated, comparatively little increases in the former having a marked impact on the latter.”

In other words, the research demonstrates that the level of trust one has in a charity affects both willingness to give and the amount of giving.

TrustIf you’re like most fundraising professionals, you instinctively understand the importance of establishing trust. However, what are you actually doing to build and maintain it?

Sadly, many nonprofit professionals think that trust is automatic. If your organization has existed for a reasonable period of time and if it has had some demonstrable success at fulfilling its mission, fundraisers may be lulled into the belief that trust already exists. Therefore, organizations spend little effort building trust and, instead, focus their energies and resources on making funding appeals. Unfortunately, the result is usually underperformance and occasionally disaster.

As I mentioned in a recent post, a cancer charity in Scotland was involved in a major scandal several years ago. Unfortunately, the fallout from that scandal negatively affected many unrelated charities throughout Scotland as public trust in the charity sector suffered greatly. As a result, some charities reported a 30 percent downturn in contributions in the months following the controversy. To restore the public trust, Scotland’s charities and the Institute of Fundraising joined forces to get people meaningful information and provide them with assurance about the trustworthiness of the charity sector. It took several months to rebuild trust. As trust was restored, giving began to return to normal.

By investing in efforts to establish and grow trust, nonprofit organizations will yield far greater fundraising results and protect themselves from an unforeseen public relations challenge.

So, recognizing that building and growing trust is essential for success, and fragile once established, what can charities do to develop trust?

Fortunately, building trust does not have to be complicated or expensive. Sales guru Tom Hopkins identifies three simple steps:

December 12, 2014

Is the American Red Cross Hurting Your Fundraising Efforts?

The American Red Cross regularly touts how responsible it is with donors’ money. ‘We’re very proud of the fact that 91 cents of every dollar that’s donated goes to our services,’ Red Cross CEO Gail McGovern said in a speech in Baltimore last year. ‘That’s world class, obviously.’

“McGovern has often repeated that figure, which has also appeared on the charity’s website.

“The problem with that number: It isn’t true.”

That stunning revelation was made in a recently released investigative report by ProPublica and NPR.

National Red Cross HQ by NCinDC via Flickr

American Red Cross National Headquarters

The Red Cross is a great organization. My wife and I have been donors. I even did a blog post highlighting the effective stewardship practices at the Red Cross and encouraging readers to support the organization. The American Red Cross does not have to “serially mislead” the public.

Yet, that’s exactly what it has been doing according to the reporters. While the organization has told the public that 91 cents of every donated dollar goes to services, its fundraising cost to raise a dollar has been 17 cents on average. And that does not include organization overhead expenses. Clearly, the Red Cross has not been as efficient as its leader has claimed.

When reporters contacted Red Cross officials for more information, those officials were uncooperative. However, the organization did change the claim on its “website to another formulation it frequently uses: that 91 cents of every dollar the charity ‘spends’ goes to humanitarian services. But that too is misleading to donors,” states the investigative report.

Sadly, this is not the first time that the Red Cross has been accused by the media of misleading the public.

As a Red Cross supporter and a fundraising professional, I’m alarmed and disappointed by the behavior of the Red Cross. Misleading the public, either through lies or the clever manipulation of language, is unnecessary, unethical, and unacceptable.

Such inappropriate behavior erodes public trust, which makes fundraising more difficult. Perhaps this is one reason that the Red Cross has had trouble consistently raising more money. In 2009-10, the Red Cross raised $1.1 billion. In 2012-13, the Red Cross again raised $1.1 billion.

In a study that examined the relationship between trust and philanthropy, researchers Adrian Sargeant and Stephen Lee found, “there would appear to be a relationship between trust and a propensity to donate.” In addition, “there is some indication here that a relationship does exist between trust and amount donated, comparatively little increases in the former having a marked impact on the latter.”

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