Aligning Nonprofit Strategy with Donor Preferences

Last week I attended the "What Really Matters" webinar from Abila to discuss the findings in their latest Donor Engagement Study. There were a few surprises in their latest findings, and several confirmations of what we've always known, or at least should have sensed.

On of the key points that should be obvious, but bears repeating, is that Content is King. What you say is more important than the frequency with which you communicate, or even what medium or channel you are using.

And, when it comes to that content, what donors are most interested in is stories. Again, many of us have been harping on this for years, but too many nonprofits have still not heard the message: Your data may help get a signature on a large check, but to get to that point you need to share just one personal story of how your nonprofit has helped one individual.

When it comes to Abila's findings that should come as a wake-up call, the most startling is the how misaligned most organizations are with the preferences of their donors.

For example, while many nonprofits are dividing their donor lists by gift range, and are differentiating their strategies for large versus small donors, only 3% of groups are always dividing and strategizing differently by age group.

Age of donors matters! Each generation has different communications preferences, from what channel (mail, email, social media...), to the frequency, to the message. If you have the same strategy for reaching millennials as you do for their grandparents, one of them (at least) isn't going to be impressed.

As presenters Tad Druart and Rich Dietz pointed out, our donors are consumers as well, and they are used to communications from companies like Amazon or eBay that are highly differentiated and targeted based on dozens of factors. When we, as nonprofits, treat all donors like just another member of the herd, donors are noticing and turning away from us.

There's a lot more in the report, but I'll leave it up to you to discover. You can visit the Abila.com website to download the full report (it's free).

"Don't Panic!"

Here's a wonderful quote from a meeting I attended this morning of Santa Cruz County (California) nonprofit Executive Directors, discussing their response to the current financial crisis:

"Don't panic. Not because there isn't reason to panic - there is - but because panic doesn't work."

So, what is your organization doing to respond to the current economic crisis? Have you felt it yet, or have you somehow been spared? I've just set up a survey to gather your responses - Click Here to take survey - Thanks!

(And for those who've wondered if I'd ever blog again, yes, I'm still alive and working. Just working a bit too much in my current Interim ED position... dealing with the just these questions of whether or not we should be panicking.)

Marketing? For Nonprofits?

Many in the nonprofit field don't like to talk about marketing. Marketing is sometimes considered a dirty word. It's all about selling, and we don't sell, we fix! Selling is considered crass, and therefore, we don't talk about marketing.

But how do you get patients in the door of your clinic if not for marketing? How do parents in the neighborhood find out about your free book give-away program if not for marketing? How does anybody know about your theater group if not for marketing? I can go on and on, but you get the idea.

Nonprofit marketing may not always take the flashy, glossy, expensive route that you might associate with a marketing campaign for a new car, but it is marketing never-the-less. And what does our disdain for sales and marketing get us?

The just released 2007 Nonprofit Marketing Survey gives us a glimpse, and it's not too pretty.

More than 55% of nonprofits are frustrated by lack of resources and leadership support for marketing, but only 37% do the tracking that generates increased budgets and confidence.

For more information and the full survey results please see the Getting Attention blog.

Bay Area nonprofits score well, Learning from SPAM, and a Happy New Year

First off, I want to thank all of my readers and subscribers for your support in 2006. This has been a great year, and I've been very pleased with the reaction to this blog since starting it a few months ago.

Second, I apologize for having taken a slightly longer than anticipated break during the holidays, but there was a bit of family business that needed my attention. All is well and good now, and I am looking forward to a great and productive 2007.

On to the news...

According to the Mercury New, most large Bay Area nonprofits spend the majority of their funds on programming. Of course, that's what we expect them to do, but in this business, we all know how administrative and fundraising costs can creep upwards.

MediaNews researched and analyzed 100 large Bay Area nonprofits and found that 85 of them reported spending at least 75 percent of their annual revenue on programs. The benchmark the study looks in "healthy" nonprofits is 75 percent or more for programming, 15 percent or less for administration, and 10 percent or less for fundraising.

The warning signs for donors (according to the survey), and the reason why some nonprofits failed to meet their guidelines, was the use of high-cost telemarketing or other outside fundraising services. Companies that collect and sell used vehicles on behalf of nonprofits were also called out for passing too little of the sales price of the vehicles on to the causes they claim to represent.

Knowing that donors are looking at these reports, and are aware of the costs of outside services, do you need to re-evaluate how you're raising money for your organization? Would you have passed the test?

While we're on the topic, "a fundraiser" of the Don't Tell the Donor blog, asks, "What can nonprofits learn from spammers?"

No, he's not suggesting that we spam our donors or potential donors. But, he does point out the sophistication of some the spammers research and techniques and asks, "Are your approaches to fundraising emails this sophisticated?"

Just some interesting food for thought as we begin a new year.

Daring to Lead 2006

CompassPoint Nonprofit Services and The Meyer Foundation have just released a new report, "Daring to Lead 2006," exploring the leading causes of nonprofit executive burnout; in particular, widespread frustration with boards of directors and funders, and dissatisfaction with their pay.

We've heard much of this before - this report is a follow-up to their 2001 Daring to Lead - but the numbers are updated, and some of the recommendations are fresh. Perhaps the new report is most instructive, however, in pointing out how little actually has changed in the five years since the original report.

In both 2001 and 2006, 75% of executive directors reported that they were planning on leaving their position within five years. Nine percent of the current respondents are already in the process of leaving. Despite good recommendations in the original report, the complaints of EDs are largely the same (boards, funders, money).

As a sector are we not taking care of ourselves? Most of us get into the sector precicely because we put the needs of others ahead of our own needs. We know we could make more money in the private sector, but we do this work because we want to help, we want to make a difference.

But, at some point, we have to step back and make sure that our own needs are met. Nobody can give indefinitely when they are harming themselves. I believe that this realization is what is behind a lot of the nonprofit executive turnover.

The rapid turnover of leadership, however, harms the sector even more. So, what can we do to make the nonprofit sector more welcoming and nurturing for our executive leaders? The recommendations in Daring to Lead are a start, but this is something we all - board, staff, consultants, and volunteers - must come to terms with and make a priority for our organizations.

Download both, the 2001 and 2006 Daring to Lead reports from CompassPoint's web site.

Tags: nonprofit, leadership, nonprofit boards of directors, burnout, reports