Posts tagged ‘volunteerism’

June 15, 2018

Raise More Money by Understanding Generational Differences

When you understand the behaviors and motivations of different generations, you’ll be in a better position to build stronger relationships and, ultimately, raise more money. That’s the belief behind the Blackbaud Institute’s new report, The Next Generation of American Giving. Catherine LaCour, Chief Marketing Officer at Blackbaud and Senior Advisor to the Blackbaud Institute, writes:

[T]hese insights serve the core purpose of helping you—the social changemakers—build bridges to those who care most about your causes. Use this information to inform your outreach, but know that the relationships you cultivate are still the key. With this deeper understanding of your supporters and the tools they use, there is no limit to the positive change you can achieve.”

The report identifies eight key findings:

  1. Fewer Americans are Giving. Blackbaud is not alone in uncovering this disturbing trend. Among every generational cohort, with the exception of Baby Boomers, there is a decline since 2013 in the percentage of cohort members who say they give to charity. During the same period, total giving has nevertheless increased because those contributing are donating more.

 

  1. The Greatest Generation is in Its Sunset Years. Those born prior to 1946 are declining in number. That’s why they are no longer the dominate philanthropic group that they were in 2010. However, they remain a vitally important philanthropic cohort. These individuals give to more charities and give more money than any other generational group.

 

  1. Baby Boomers Remains the Most Generous Generation. Boomers donated 41 percent of all money contributed last year. By contrast, Gen X accounted for 23 percent, Matures 20 percent, Millennials 14 percent, and Gen Z 2 percent.

 

  1. Generation X is On Deck (and there are way more Gen-Xers than you think). While there are far fewer Gen-Xers than Boomers (65.6 million v. 74.1 million), their population is almost as large as the Millennial generation (67 million). Furthermore, Gen-Xers are approaching the life stage known to be the prime giving years. Given the population size of this cohort and their approaching life stage, they will likely continue to be a growing philanthropic force.

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April 27, 2018

The Best Way to Ensure Your Volunteers Do Not Fail

Let’s make sure our volunteers do not fail. Let’s do a better job of recruiting and retaining volunteers while helping them be more successful. Remember, when volunteers are more successful, our nonprofit organizations are more successful.

This is the second part in a series of posts about volunteers. I’m publishing this series for three reasons:

  • It’s National Volunteer Month.
  • Volunteerism is on the decline in the USA, and we can and must reverse that trend.
  • Volunteers are a valuable resource to the nonprofit sector. They serve as organization ambassadors, provide free labor, and donate generously. We need them!

In the first part of the series, we looked at how to avoid major pitfalls and manage volunteers more effectively. Now, we will consider the best way to ensure that your volunteers do not fail. The result will be a win-win relationship between your volunteers and your organization.

Once again, we’re fortunate to receive some terrific insights from Kelly Ronan on Twitter. Kelly is an Indiana State University Bayh College of Education Scholars-to-Teachers Program Scholar and a candidate for the Certified Nonprofit Professional credential offered through the Nonprofit Leadership Alliance.

Kelly believes that a robust orientation program for volunteers, as part of a training effort, will help them avoid failure and, instead, meet with success. So, before tossing your volunteers into the proverbial deep-end of the pool, make sure they first receive a solid orientation consisting of the eight key elements Kelly suggests:

 

An effective orientation will provide an overview for a volunteer that is new to your organization, and a refresher for a returning volunteer. It will provide a general understanding of who the organization is, what the organization does, and how volunteers play a key role.

The following eight elements will make your volunteer orientation great, and will help ensure that your volunteers have a meaningful experience as they help your organization.

1.  Make volunteers feel like they belong!

The “belonging” atmosphere should begin the moment you make contact with the new volunteer, whether that is speaking on the phone or through emails. Be sure to reach out to a new volunteer while the excitement of volunteering is still fresh on their mind. Hosting an orientation is a powerful way to engage volunteers and help them get off to a good start.

Once they reach orientation, it is time to make them feel like your organization is the right fit for them. Have your volunteers get connected with staff and other volunteers. Consider planning a fun ice-breaker activity or planning for partner/small group interaction as part of your orientation. It is important that your new volunteers feel welcome and appreciated.

2.  Effective, meaningful communication is key!

No one likes to feel lost. Orientation is the time to state, in appropriate detail, what is expected of volunteers. This includes things like behavior standards, dress codes, confidentiality, time commitments, and more. Taking the time to address expectations up front can save a lot of time further down the road once the volunteer has started their assignment. Remember that you can’t expect your volunteers to meet expectations that you haven’t clearly defined.

3.  Share the mission of organization!

Just like staff members, volunteers should know your organization’s mission. They need to know what they are putting their time and talent towards. Sharing a bit of history about the organization, the mission statement and goals and objectives are helpful to a new volunteer. This also helps them to see how their role as a volunteer fits into the organization’s plan. Additionally, you can include a brief description of programs, and you may want to share some impacts your organization has had on the communities it serves.

4.  Review policies and procedures!

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April 25, 2018

Avoid the 7 Deadly Sins When Working with Volunteers

Given that this is National Volunteer Month, I want to acknowledge the often unsung heroes of the nonprofit sector.

Like monetary donors, volunteers are supporters. We need to recognize that and act accordingly. Volunteers are a valuable resource for nonprofit organizations. They provide essential free labor. They serve as ambassadors in the community for your organization. They donate twice as often as non-volunteers do. They are just as likely as donors to include a charity in their Will. People who volunteer and donate are far more likely to include a nonprofit organization in their Will compared to people who do only one or the other. Volunteers are supporters!

Unfortunately, volunteerism is on the decline in the USA. This will be potentially costly to the nonprofit sector.

As I pondered the problem of declining volunteerism, I had the good fortune to “meet” Kelly Ronan on Twitter. Kelly is an Indiana State University Bayh College of Education Scholars-to-Teachers Program Scholar and a candidate for the Certified Nonprofit Professional credential offered through the Nonprofit Leadership Alliance.

I’ve been impressed with the material about volunteerism that Kelly regularly shares on social media. So, I invited her to share some of her insights and wisdom with us. I’m happy to report that Kelly has generously accepted my request, for which I am grateful.

Her guest post below looks at some best practices in volunteer management that will help you more effectively recruit and retain volunteers:

 

There are three key best practice areas when it comes to volunteer management. By mastering these three areas, you will help your nonprofit organization to more effectively recruit and retain volunteers. You’ll also help ensure that each volunteer’s experience is a good one thereby developing a valuable ambassador and potential donor.

1.  Start Off Right

To get off on the right foot with volunteers, you need to avoid missteps. But, that’s not enough. You also need to understand what motivates each individual so you can meet their needs.

Let’s first look at the many potential mistakes we can make with volunteers. For example, let’s consider Energize’s “7 Deadly Sins of Directing Volunteers” with this listing:

  1. To recruit a volunteer for a cause or program in which you do not believe.
  2. To sign a person up even if he or she is not right for a vacant volunteer position you need to fill, or to ask a volunteer to take on a role that misuses or underutilizes that person’s talents.
  3. To restrict a volunteer’s effectiveness by not providing adequate preparation, training, or tools.
  4. To ask salaried staff to work as a team with volunteers if you yourself do not have volunteers helping with the responsibilities of your job.
  5. To be so concerned about your own job security that you do not stand up and fight for the needs and rights of the volunteers you represent.
  6. To offer volunteers certain opportunities and working conditions, and then not deliver.
  7. To waste a volunteer’s time – ever.

You need to be honest, ethical, and fair with volunteers, just as you would be with staff. You also need to understand what motivates them. Let’s get one thing straight: Volunteers don’t volunteer just to get that happy, fuzzy feeling inside. Everyone volunteers for their own reasons. So firstly, determine the motivation of your volunteers. VolunteerHub offers more in their post here, but these were the common reasons for volunteering that they found:

  • Individuals have a personal tie to a nonprofits mission, goals, and values.
  • Individuals are looking for opportunities to meet and network with new people.
  • Individuals have a moral compass to do good.
  • Individuals are in search of skill-building opportunities.
  • Individuals want to practice leadership capacities.
  • Individuals are looking for ways to build their personal resume.
  • Individuals were asked to participate in a volunteer opportunity.

All of this means, when it comes to motivation, that you’re going to have a diverse group of volunteers. I can see how the thought of communicating effectively with all of them may seem intense. So, let’s take a moment to look into forming a communication strategy.

2.  Setting Up a Communication Strategy

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January 19, 2018

Charitable Giving Threatened by Drop In Volunteerism

On Monday, the USA celebrated Martin Luther King, Jr. Day as a national day of service. From April 15 to 21, the nation will mark National Volunteer Week. Clearly, Americans value volunteerism.

Unfortunately, the volunteerism rate has been steadily declining for years. This trend has disturbing implications for philanthropy.

In 2003, the US Bureau of Labor Statistics reported that 28.8 percent of Americans volunteered. By 2015, that rate had steadily fallen to 24.9 percent. This is a huge problem for the nonprofit sector for a number of reasons:

Volunteers Provide a Valuable Resource. Volunteers do a great deal of work that might not be done otherwise. 62.6 million Americans volunteered 7.8 billion hours. Independent Sector reports that a volunteer hour is worth $24.14, over $180 billion of total estimated value. Sadly, with volunteerism on the decline, charities are forced to provide fewer services or incur greater labor costs.

Volunteers Serve as Ambassadors. In addition to being a valuable labor resource, volunteers are also fantastic ambassadors for an organization. The typical volunteer serves only one or two organizations, according to the US Bureau of Labor Statistics. When volunteers share their experiences, they also talk with friends, family, and professional colleagues about your organization and its mission. This could lead to additional volunteer and philanthropic support. With a drop in volunteerism, there are now fewer ambassadors for charities, which will inevitably lead to less future support.

Volunteers are More Likely to Donate. Volunteers are twice as likely as non-volunteers to make a charitable contribution, according to the Corporation for National and Community Service. Even planned giving is affected by volunteerism. As I’ve reported previously, researcher Russell James, JD, PhD, CFP states in his book, American Charitable Bequest Demographics (1992-2012):

Among those with [estate] planning documents, those who both volunteer and give ($500+) are dramatically more likely to plan a charitable estate gift than those who only volunteer or only give ($500+). Those who only volunteer, plan charitable estate gifts at approximately the same rate as those who only give.”

Those who only volunteer or only donate ($500+) are more than twice as likely to make a legacy gift than those who do neither. [For a free electronic copy of James’ book, subscribe to this blog site in the right-hand column. You’ll receive an email confirmation of your subscription that will contain a link to the book.]

With a decline in volunteerism, we can expect fewer people to make current and planned gifts. This is already happening according to an analysis by The Chronicle of Philanthropy.

There are many likely reasons for the decline in volunteerism including:

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June 14, 2016

Happy Days are Here Again … for Now

Charitable giving in the USA reached a record high for the second year in a row, according to the newly released Giving USA 2016: The Annual Report on Philanthropy for the Year 2015, a publication of Giving USA Foundation, researched and written by the Indiana University Lilly Family School of Philanthropy.

While the news is good, storm clouds are gathering on the horizon. You need to hear both the good and the troubling news. I’ve tried to distill the most relevant, overarching information for you and provide you with some tips to help you be more successful moving forward. While I would normally advise against sharing lots of statistics, I nevertheless think you’ll appreciate these numbers.

Source Pie Chart_June 13 2016Researchers estimate that giving totaled $373.25 billion in 2015.

That new peak in contributions represents a record level whether measured in current or inflation-adjusted dollars. In 2015, total giving grew 4.1 percent in current dollars (4.0 percent when adjusted for inflation) over 2014.

The revised inflation-adjusted estimate for total giving in 2014 was $359.04 billion, with current-dollar growth of 7.8 percent, and an inflation-adjusted increase of 6.1 percent.

Charitable contributions from all four sources — individuals, charitable bequests, corporations, foundations — went up in 2015, with those from individuals once again leading the way in terms of total dollar amount, at $264.58 billion. This follows the historical pattern seen over more than six decades.

Giving to eight of the nine nonprofit categories studied grew with only giving to foundations declining (down 3.8 percent in current dollars, down 4.0 percent adjusted for inflation).

Giving to the category of International Affairs — $15.75 billion — grew the most (up 17.5 percent in current dollars, up 17.4 percent adjusted for inflation).

Giving to the category Arts/Culture/Humanities — $17.07 billion — grew the second most (up 7.0 percent in current dollars, up 6.8 percent adjusted for inflation).

While the numbers are terrific, the story is really about more than that. Giving USA Foundation Chair W. Keith Curtis, president of the nonprofit consulting firm The Curtis Group, says:

If you look at total giving by two-year time spans, the combined growth for 2014 and 2015 hit double digits, reaching 10.1 percent when calculated using inflation-adjusted dollars. But, these findings embody more than numbers — they also are a symbol of the American spirit. It’s heartening that people really do want to make a difference, and they’re supporting the causes that matter to them. Americans are embracing philanthropy at a higher level than ever before.”

While the 2015 giving news is certainly positive, there are four points that indicate that the good news might be short lived:

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May 13, 2016

10 Reasons Your #Nonprofit Should be Using Facebook

[Publisher’s Note: From time-to-time, I invite a published book author, with valuable insights, to write a guest post. If you’d like to learn about how to be a guest blogger, click on the “Authors” tab above.]

 

Would you like to understand why your nonprofit organization should embrace Facebook? Would you like a free book that’s full of tips that will help your charity get the most from Facebook? If you would, you’ll really enjoy this post.

This week, I have invited Richard Santos, Founder of Fundlio, to share his insights. Fundlio helps nonprofit organizations collect donations online by providing a mobile-friendly, secure and free platform. Fundlio also maintains a blog where the company shares tips and how-to information on a number of topics including fundraising, thank-you letters, collecting donations online, and creating organization awareness.

Facebook for Nonprofits CoverRichard has also written the book The Ultimate Guide to Facebook Marketing for Nonprofits: How to ATTRACT SUPPORTERS & Receive More CONTRIBUTIONS for Your NONPROFIT Through FACEBOOK. While the Kindle version of the book is available for purchase on Amazon, Richard has kindly made his e-book available to the readers of Michael Rosen Says… for FREE! To download your free e-book copy, simply click here.

Richard’s book is a quick and simple-to-follow guide aimed at helping you create and develop an effective Facebook marketing strategy that will translate into attracting donors, increasing supporter engagement, and receiving more contributions for your cause. It’s based on proven tactics and strategies that will allow you to leverage the Facebook community and accomplish your nonprofit organization’s goals.

In addition to the terrific information and helpful tips Richard provides in his book, he now offers 10 important reasons your nonprofit organization should be using Facebook:

 

There are numerous online tools available for nonprofits and charities, allowing organizations like yours to use the power of the Internet and social media to its full potential. Facebook for Nonprofits is a great way of creating more awareness about your cause and eventually raising more funds to fulfill your mission.

However, I know that a nonprofit leader’s time is limited and that it’s hard to squeeze one more extra activity into your tight schedule. Whenever someone makes a suggestion on a new marketing tactic, the first question that pops into your head is: “Why should I take the time, effort, and budget to implement this?”

Let me provide you with an answer to the question in 10 straightforward points:

1.  A large percentage of your audience is on Facebook.

Facebook has almost 1.6 billion active users all over the world, which means that many of the potential donors you are targeting are using Facebook. One more interesting statistic: 31 percent of all US senior citizens use Facebook – this shows the huge impact that Facebook has on people from multiple categories. If you want to use the one channel where most of your audience is active, Facebook is the solution.

2.  You can raise awareness.

Having a compelling nonprofit story on your website is not sufficient – many potential supporters may not reach your website and you will lose donors and volunteers. On the other hand, your nonprofit is much more visible on Facebook, either through advertising or through page suggestions. Someone who’s interested in your cause just needs to hit “Like” and from that moment on, you will appear in their newsfeed. Better visibility means more awareness for your cause – your fans will develop an interest in your organization without even noticing.

3.  You can attract new supporters.

Facebook allows you to increase your visibility, aside from just communicating to your loyal audiences. Try the following features and your fans’ friends will also have contact with your page: similar page suggestions, adding the physical address so fans can check-in, and creating Facebook events. These features allow you to become visible to people who have not liked your page yet and to encourage them to become your fans.

4.  You can build a community.

Although there are many people passionate about the same idea, they rarely have time to meet in a physical location and develop relationships. On the other hand, interacting on social media is easier and helps them save time. Audiences use Facebook groups to gather around the causes they support – here they can discuss various issues, connect to other people, and organize events.

5.  Facebook allows you to engage supporters.

The secret to a successful fundraising campaign is supporter engagement. It’s recommended to implement multiple creative ideas rather than just featuring a “Donate” button on your page and just waiting for money to pop in. Some methods you can use to attract donors on Facebook are the following: running contests, setting mini-goals, using storytelling, implementing a matching gift campaign, asking supporters to give up a pleasant activity and donate the money, or inflicting silly punishments on your nonprofit organization leaders to encourage donations.

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April 8, 2016

#Fundraising Moneyball: Track 3 Numbers that will Make You a Champ

[Publisher’s Note: This post is part of a series kindly contributed by guest authors who attended the 2016 Association of Fundraising Professionals International Fundraising Conference. These posts share valuable insights from the Conference. This week, I thank Carrie Horton, Director of Content and Education at Kindful, for highlighting the seminar “Fundraising Moneyball: The Only Metrics that Matter in Digital Fundraising.”]

 

While freezing temperatures continue to chill many in the USA, the boys of summer have nevertheless returned for the start of the 2016 baseball season. What better way to mark the occasion than drawing a parallel between the baseball book and movie Moneyball and fundraising?

Okay, enjoying a hotdog and beer at a ballpark would be a better way to celebrate the start of the new baseball season. But, the second best way is to explore some of the highlights from Jeff Stanger’s session at the AFP International Fundraising Conference: “Fundraising Moneyball: The Only Metrics that Matter in Digital Fundraising.”

The book and movie Moneyball presented the true story of a revolutionary approach to baseball introduced by Billy Beane, the General Manager of the Oakland A’s. With a lean budget, he relied heavily on statistics, rather than personalities, to build a winning baseball team.

The Moneyball lesson for your nonprofit organization is that by leveraging statistical data, you can build a winning development program.

So, what statistics should you track? What goals should you set?

Carrie Horton, Director of Content and Education at Kindful, has identified three key points from the seminar that you need to know. Kindful is a nonprofit CRM software that offers powerful online fundraising tools, intuitive donor management, and comprehensive reporting analytics in one centralized data hub. Here’s what Carrie found most valuable from Stanger’s presentation:

 

If you’re anything like us at Kindful, when you hear the word “moneyball,” you think of Michael Lewis’s bestselling book and Brad Pitt’s killer acting. But thanks to the AFP International Fundraising Conference and Jeff MoneyballStanger’s impeccable session, we’ve got a new definition. Stanger’s session – “Fundraising Moneyball: The Only Metrics that Matter in Digital Fundraising” – sets forth a simple and straightforward digital strategy for nonprofit fundraising success. According to this renowned speaker and fundraising consultant from Cause Geek, it’s not rocket science, it’s statistics.

Stanger showed us that a successful digital fundraising strategy isn’t about trending on Twitter or gaining the most “likes” on Facebook. Instead, he urges nonprofits to focus on small steps taken with the insight of data and metrics behind them. Sustainable growth, Stanger says, comes through clear and simple goals that are easy to measure, quick to show return, and effectively reveal what works and what doesn’t.

What are the three goals that Stanger suggests you focus on? Again, Stanger’s recommendations are straightforward:

  1. Increase the number of subscribers to email
  2. Increase the number of volunteers
  3. Increase the number of monthly givers

Seems simple enough, right? These aren’t principles that are overly complex or hard to define. They’re straightforward and easy to measure. Even smaller nonprofits with limited funds and limited resources can achieve great success through a series of small victories.

But, where do you start? Well, if Stanger’s argument is that these goals are important because they are measurable metrics, then it only makes sense to start with metrics as well. We might be a bit biased (being the donor management provider that we are), but Kindful thinks that clean data and insightful metrics are at the heart of every successful digital fundraising strategy. However, don’t take our word for it. Here’s a quick breakdown of Stanger’s three goals and how an integrated CRM can help make you a fundraising champ:

Goal #1: Increase the number of subscribers to email

In a world where 95 percent of consumers use email and 91 percent check it at least once a day, the importance of growing your email marketing and distribution list is a no-brainer. In fact, Stanger mentioned that 75 percent of social media users still say that they prefer email communication! Email addresses provide you with a direct link to your audience and, when used wisely, help you cultivate donors who will be invested in your organization for years to come.

Want to build your email distribution list?

Pull a report to find out how many email addresses you have in your donor database. Integrate with your email-marketing provider to pull in stats related to how many people open your emails and click through them. Use data to understand what’s working (and what isn’t) and refine your strategy to send better emails and increase engagement. In other words, make sure your emails deliver value to recipients.

Goal #2: Increase the number of volunteers

Did you know that nearly 80 percent of volunteers donate to charity, compared to only 40 percent of non-volunteers? (Visit VolunteeringInAmerica.gov for more information.) It makes sense – those who are the most engaged with your organization will be the most likely to give financial support as well. And it’s not just that volunteers are most likely to donate…they’re most likely to raise money for your organization as well! Especially with the rising popularity of crowdfunding platforms, volunteers who engage through peer-to-peer fundraising don’t just bring in more money, they expand your audience.

Furthermore, over time, many volunteers will choose to donate in significant ways including through planned giving.

Want to build your volunteer base?

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March 14, 2014

5 Lessons Moses Can Teach Us about Fundraising

Moses can teach us a number of important things about fundraising. Yes, that Moses, the prophet revered by Jews, Christians, Muslims, and other religious faiths throughout the world.

Consider just one story from the Bible that usually receives little attention.

Moses by rorris via FlickrOver 3,000 years ago, after fleeing slavery in Egypt, the Hebrews wandered in the wilderness for 40 years. During this time, God instructed Moses to have the people build a Tabernacle, a movable tent-like structure where the Hebrews could worship and experience the presence of God.

Special materials, fabrics, and precious stones and metals were needed for the project. So, Moses told the Hebrews about the project and shared with them what was needed. Then, he made a request to “everyone whose hearts so move them.” Moses asked them to “bring gifts for God” so that the Tabernacle could be built.

The Hebrews responded with great generosity by providing the needed materials and volunteer labor. Moses, overwhelmed by the volume of gifts received, actually had to instruct people to stop bringing gifts. No more were needed for the project.

Here are five things every fundraiser can learn from this story and the wisdom of Moses:

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February 28, 2014

Warning: US Volunteerism at a Decade Low!

The rate of volunteerism in America fell to the lowest level in a decade, according to the US Bureau of Labor Statistics report Volunteering in the United States — 2013.  This appears part of a downward trend.

Nonprofit organizations should find this trend alarming for a number of reasons, including:

Volunteers provide an essential labor pool. Approximately 62.6 million (25.4 percent) Americans volunteered at least once between September 2012 and September 2013.

The median volunteer spent 50 hours on volunteer activities during the study period. These significant volunteer hours mean that volunteers are a valuable part of the nonprofit labor force. Declining volunteerism rates mean charities will either have to limit services, discontinue certain activities, or pay for employees to perform the tasks formerly handled by volunteers.

Volunteers serve as ambassadors. Individuals who volunteer usually act as ambassadors for the organization. They obviously have a high-degree of interest in the organization, which is why they volunteer with it.

Through volunteer experiences, provided they are good ones, the volunteers will become more engaged with the organization and more passionate about its work. They will speak of the organization with family and friends. When they do, it will be in a positive, passionate tone. This word-of-mouth promotion will help your organization to attract additional volunteer and donor support.

Volunteers are more likely to donate. The more engaged an individual is with his community, the more likely he is to volunteer and contribute money to nonprofit organizations. The more points of connection there are between an individual and a particular nonprofit organization, the more likely that individual is to give, give often, and give generously to that organization, as I point out in my book, Donor-Centered Planned Gift Marketing.

Volunteerism is an important point of connection. This phenomenon is explained, in part, by the Social Capital Theory popularized by Robert Putnam, author of Bowling Alone.

Volunteers are more likely to make planned gifts. Consider what researcher Russell James, JD, PhD, CFP reports in his book, American Charitable Bequest Demographics (1992-2012):

Among those with [estate] planning documents, those who both volunteer and give ($500+) are dramatically more likely to plan a charitable estate gift than those who only volunteer or only give ($500+). Those who only volunteer, plan charitable estate gifts at approximately the same rate as those who only give.”

Graph from American Charitable Bequest Demographics (1992-2012) by Russell James.

Graph from American Charitable Bequest Demographics (1992-2012) by Russell James.

Furthermore, those who only volunteer or only donate ($500+) are more than twice as likely to make a legacy gift than those who do neither.

For a free electronic copy of James’ book, subscribe to this blog site in the right-hand column. You’ll receive an email confirmation of your subscription that will contain a link to the book.

Clearly, the steady decline in volunteerism represents a serious problem for the nonprofit sector.

So, why is volunteerism on the decline? Unfortunately, the reasons for the decline are unclear. However, the report contains some clues.

read more »

January 31, 2014

Avoid Making Faulty Assumptions about Donor Loyalty

Loyal supporters are valuable assets for every nonprofit organization.

Unfortunately, there is an alarming lack of understanding about the definition of “loyal supporter.” Before we address that issue, however, let’s look briefly at why loyal donors are so important.

Because it’s more cost-efficient to retain donors than acquire new ones, loyal donors allow charity fundraising programs to operate more efficiently. The lifetime value of such donors is greater. More money, more cost-effectively raised means more funds for mission fulfillment.

Interestingly, loyal donors also exhibit greater engagement tendencies as researchers Adrian Sargeant, PhD and Elaine Jay, PhD observed in their book Building Donor Loyalty:

Donors who remain loyal are also much more likely to engage with the organization in other ways. Long-term donors are significantly more likely than single-gift donors to offer additional gifts in response to emergency appeals, to volunteer, to upgrade their gift levels, to lobby for the organization, to actively seek out other donors on the organization’s behalf, to buy from a gift catalogue, and to promote the organization to friends and acquaintances.”

Sargeant and Jay even quantify the value of this additional activity. In their experience, they have seen that such activities can increase donor lifetime value by 150 to 200 percent.

Increasingly, charities are coming to appreciate the benefits of having loyal donors. For example, progressively more development professionals understand that loyal supporters make the best planned giving prospects.

This raises the question: Who is a “loyal supporter?”

In the context of planned gift marketing, one development professional recently defined loyalty as a combination of giving frequency, giving recency, and cumulative giving amount. I agree, but only to a point.

Cover- Building Donor Loyalty -- click to see book at AmazonFirst, as Sargeant and Jay describe in their book, loyalty can be either passive or active. Passively loyal donors might give because their friends give, because they want to do something while they continue to search for the charity that is just right, or even because of inertia. By contrast, actively loyal donors care passionately about the organization and its mission. They identify with the values of the organization and regard donations to it as an essential, rather than discretionary, part of their personal budgets.

When it comes to fundraising, actively loyal donors are the only truly loyal donors. In other words, not all regular donors rise to the level of being loyal supporters.

Second, people can be loyal supporters without being donors. They even can be so intensely loyal that they make a generous legacy commitment.

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