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Fundraising Tuesday: How Monthly Giving Can (& Should) Support Capital Campaigns

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A guest post by Amy Eisenstein of Capital Campaign Toolkit

Are you a monthly giver to organizations you believe in? If so, you know what monthly giving is like. Every month, you see the charge on your credit card. Periodically you get reports—either in print or through email—about what the organization is doing with your money and everyone else’s. Occasionally, you get an invitation to a special event. Toward the end of the year, you get a notice about how much you have given for your tax records.

But rarely, if ever, do you get a call from the DD or a board member or even a thank you note that feels like anything personal. However, you keep right on giving. Why?

Because you know the organization does important work and it would take something big to shake your confidence. Your giving is on automatic pilot.

Now, the naysayers will argue that this kind of giving is bad for major gift fundraising—and capital campaigns are the supreme version of major gift fundraising. They argue that donors get trained to give at amounts that are well below what you might otherwise ask for during a major campaign.

That’s true as far as it goes. But it doesn’t go far enough.

The Same Donors Give Recurring Gifts and Special Gifts

You will understand why monthly giving is good for capital campaigns when you think carefully about the difference between recurring gifts and special gifts. For in that idea is the magic sauce of great fundraising.

Monthly giving is the ultimate form of recurring gifts. Like all gifts that support your annual operating budget, they are needed year in and year out. The concept is that people will give at an amount they believe they can sustain over time.

I first understood this concept when I was standing in front of a donor plaque in the lobby of the athletic facility at the college where my husband taught. I knew many of the donors to the college. And looking at the donor listing on the wall, I saw the names of many of the wealthiest people in town at the $1,000 level. Only when I realized that the plaque recognized people for annual contributions did it make sense.

Those wealthy people who gave $1,000 each year also give much larger gifts to support the college’s capital projects. The same donor listed for a $1,000 gift on the annual funding plaque was also listed at the $1,000,000 level on the donor listing for the capital campaign.

Bingo! Donors give at modest levels for recurring gifts and at much higher levels for special, occasional projects.

The recurring gifts build a long-term relationship and commitment to the institution. The special requests enable them to make transformational gifts every once in a while. Just because a donor gives a monthly gift of $50 or $100 doesn’t mean that they won’t also make a gift that is many times that amount occasionally for a big special project.

Recurring giving builds donor relationships over a long time. Special giving multiplies the commitment. Share on X

Capital Campaigns Don’t Cannibalize Annual Giving

Monthly donors who give to your capital campaign will keep right on giving even when they make a second, very large gift. And that’s why capital campaigns aren’t likely to cannibalize your annual fund.

Again and again, we see that the very same donors who give recurring gifts for years are the donors who give extraordinarily large gifts to capital campaigns now and again. When they are asked for very large gifts for a special project, they understand that you won’t expect them to make that huge commitment year after year. And they calibrate the size of the gift accordingly.

How to Turn Your Best Monthly Donors into Capital Campaign Donors

  1. Identify your top 50 donors. Capital campaigns depend on a relatively few very large gifts for their success. In a typical campaign, the top 20 donors will give more than 50% of the campaign goal.

Turn your monthly giving into a glide path for your capital campaign by identifying your top 50 donors who are recurring givers and treat them particularly well. Use the many research tools available to you to identify those 50 donors. Look at their capacity, giving patterns, and values.

Select those people for white glove treatment. Invite them to meet your president. Communicate personally with them. Send them insider information. Thank them more diligently.

  1. Get to know those top 50 better. Beyond better stewarding their support, actively set out to get to know them. Find out why they give and what they enjoy giving to. Learn enough about their history and background so that you develop instincts about them. Learn how they like to be asked for gifts. Determine who in your organization should build a relationship with them.
  1. Treat those top monthly donors well. Don’t let their monthly giving experience replicate the one I described at the beginning of this post and simply put them on auto-pilot. Pay more and better attention to them even while they are giving at a lower, recurring gift level. Personalize and target your communications to this unique segment.

 

  1. Involve those top donors in your project and campaign planning. One of the keys to securing the top gifts to a capital campaign is to find ways to involve your top prospective donors in the early steps of planning the project and your campaign.

You might invite them to a small group meeting with the architects, for example, to give some early feedback about the design. You might invite them to review an early draft of your case for support. You might involve them in the feasibility study—either serving on that committee or being interviewed for the study.

  1. Ask them in person for a big gift they will want to give. As you get to know those donors you will learn how they like to give. You’ll learn about other gifts they have made. You’ll develop instincts about what size and kinds of gifts they like to give. And then, when the time is right, you’ll be able to ask them in person for a gift to your campaign that fits their patterns.

Use Your Monthly Donor Relationships to Get Ready for Your Campaign

When you ask someone for something they want to do, chances are they’ll say yes. So use the pre-campaign period to identify, research and cultivate your best monthly givers so when you are ready to ask them for a campaign gift you’ll know what to ask them for. It makes simple sense, doesn’t it?

Step-by-Step Campaign Checklist & Guide

This intuitive guide breaks down each step of your campaign, and the timeline allows you to visualize your whole campaign, from start to finish! Download this free campaign checklist now!

 

Amy Eisenstein, Capital Campaign Toolkit

Amy Eisenstein

Amy Eisenstein, ACFRE, and Andrea Kihlstedt are co-founders of the Capital Campaign Toolkit, a virtual support system for nonprofit leaders running successful campaigns. The Toolkit provides all the tools, templates, and guidance you need — without breaking the bank.

TY Thursday: When an Apology is a Thank You, Too

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Oops! Your nonprofit organization did something wrong to a donor.

I’m sure you didn’t mean to. Surely, you want to strengthen your relationship with that donor, not hurt her feelings nor make her angry with you. But sometimes, inadvertently, you just stumble into a bad place with your donor, and it feels awful–to both of you.

Please take a deep breath before you go on.

Offending a donor isn’t the end of the world. It doesn’t even have to be the end of the relationship. If you handle it right, you could even make that donor remember you more fondly in the future.

Yes! Oddly enough, the donor who gives you negative feedback is like the donor who gives you money.

Each  of them has shown they care what you do (or you wouldn’t have heard from them in the first place!).

Each of them is waiting to hear back from you.

Each of them is giving you an opportunity to reaffirm the relationship: by sending thanks, or by sending a heartfelt apology.

Don’t waste the opportunity!

When to offer an apology

You made a mistake

Sometimes you’ve really made a mistake, and you recognize it as soon as it’s pointed out to you. That could be:

  • Calling the donor by the wrong name.
  • Sending them a letter or email message they weren’t supposed to get.
  • Phoning someone who specifically asked, “Do not call.”
  • Interrupting them during their religious holy day.
  • Asking to speak to a person who’s recently died.

If you have done any of these (as I have!), you know the sinking feeling when a donor calls, writes, or posts on social media to point it out. But I can tell you that the feeling when you’ve healed the injury is just as deep, and more lasting.

The donor just disagrees

Sometimes you think what you’re doing is perfectly reasonable, and the donor just doesn’t see it that way.

It might be that you sent them mail and email regularly–which most people appreciate, but this donor doesn’t like. Or it might be that you asked them for money more often than they wanted.

Sometimes, it’s even something that seems like a nice gesture to you but strikes them as a waste of time or money. “Why did you send me a self-addressed stamped envelope when I’m going to go online to give anyway?” Or, “I only gave you $25 and I got a call from the Executive Director. Doesn’t he have anything better to do with her time?”

You might feel defensive when you hear this. You might want to argue with the donor, or educate them about best practices in fundraising. But don’t! An apology costs you nothing, and it may mean everything in the world to the donor.

As Mary Cahalane advises:

You can be pretty sure that when a supporter calls or writes with a complaint she needs to be heard. So don’t jump in with excuses or explanations right away. Just listen. Listen without judgement. Try to understand the real reason she’s upset.

How to make your apology

“In direct response membership development nothing says ‘I love you’ like ‘I’m sorry.'”    –Moira Kavanagh

Remember, your purpose when you respond to an upset donor is not to win an argument: it’s to win back the trust and affection that made them a donor in the first place! So, follow these three tips from Moira Kavanagh:

  1. Act quickly. (Within hours, whenever possible!)
  2. Be transparent. When you make a mistake come out and say it.
  3. Be positive. Take the opportunity to let your donors know how much you appreciate them, and remind them how important their support is to the work you’re doing together.

And remember this helpful advice from Mary Cahalane:

  • No BUTS. An apology followed by “but” is no apology at all. Ever.
  • Take responsibility. “I’m sorry you feel that way” is not an apology.
  • Promise to do better next time when you can.

That last point, “when you can,” is an important qualification to the general rule. Allison Gauss cautions us:

Your first goal should be to satisfy this person if it’s at all possible…

Your second objective in this situation is to maintain your nonprofit’s autonomy and independence. Everyone knows that the squeaky wheel gets the grease, but the time and money you put into pleasing that wheel can distract you from getting to your destination. This is why you need to balance donors’ demands and opinions with your organization’s mission and plan.

Your Apology Speaks for the Organization!

Yom KippurToday, when this post goes live, I will be celebrating the Jewish holiday of Yom Kippur, the Day of Atonement.

One of the central themes of the holiday is asking to be forgiven for the sins we have committed, deliberately or even unintentionally and unknowingly.

In the Jewish tradition, however, we do not confess our sins individually to God. For things we have done wrong to a specific person, we make an apology and try to make things right with that person.

For wrongs we have done toward our own best self, toward the natural world, or toward God, we confess collectively. “We have abused, we have betrayed….”

When your nonprofit has done wrong to a donor, it is the we–the organization–that the donor resents. It is not you personally.

You are not guilty, but you are responsible–and you have the wonderful opportunity to be the voice of your organization and say, “I’m sorry. You matter so much to us. How can we make things better?”

Determining Marketing Channel by Donor Segment: 5 Strategies

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A guest post by Grant Cobb of GivingMail

Your nonprofit is working hard to give back to your community, but perhaps you’re having a difficult time connecting with your audience. Perhaps you have low engagement rates among your donors, or maybe you’ve even heard that your audience is not receiving or remembering your marketing materials. That’s a major problem, but what can you do about it?

Marketing is an essential part of fundraising for any nonprofit organization’s development. How do you know which marketing strategy to use and which donors to use it with?

Donor segmentation, or the process of dividing your donors into groups based on similar characteristics, is a very effective strategy to appeal to certain types of supporters. For instance, while text-to-give might be an effective marketing channel for your younger, tech-savvy donors, it might fail to connect with those of older generations.

But that’s just one example! We’ve picked our 5 top strategies for identifying the right marketing channel for each of our donor segments. In determining your marketing channel of choice, you should:

  • Look at your donor’s past engagement.
  • Reference the donor’s preferred communication channel.
  • Use demographic information.
  • Categorize based on average gift size.
  • Orient your marketing around your donor’s location.

Marketing for your nonprofit takes time, energy, and money, so streamlining your outreach method can make your fundraising approach easier and might even earn you more donations. Plus, you can build better relationships for your donors, and hopefully encourage them to stick around. Let’s dive in!

1. Look at your donor’s past engagement.

Reviewing your donor’s previous engagements with your organization offers valuable insights into which marketing channel you should use and how often you should contact your supporter.

Let’s say you’re comparing two different donors. Donor #1 is highly engaged with your organization. They attend various events and sometimes volunteer. Meanwhile, Donor #2 was a one-time contributor and it’s been crickets since.

Because these donors have such different levels of engagement, your approach should vary accordingly!

For Donor #1, you could make a phone call to request a donation for your upcoming fundraiser. If this donor has had face-to-face interactions with your organization, a highly personal marketing channel, like a phone call, is a great idea. But Donor #2 might be more likely to respond to a more passive approach, like outreach via social media or email.

Here are some additional tips for ensuring that you contact your donors effectively:

  • Personalize your outreach: A little personalization can go a long way. Simply using the donor’s name or acknowledging their previous engagement history demonstrates that you value the donor as an individual, and not just a dollar amount.This GivingMail guide on how to ask for donations can help you personalize your donation requests to best fit the donor you’re contacting.
  • Try taking a multi-channel approach: Contacting your donors across more than one channel increases the likelihood that your message will reach the intended audience. Consider combining two or more channels, such as text-to-give and direct mail.
  • Identify which channels have been most effective in the past: As the saying goes, if it’s not broken, don’t fix it. Feel free to rely on the channels that have worked well with particular donors in the past.

2. Use the donor’s preferred communication channel.

Have you ever asked your donors how they would prefer to be contacted?  Using this information not only saves you time by eliminating the channel guessing game, but it also demonstrates that you pay attention to your donor’s preferences, which they will certainly appreciate.

If you haven’t asked your donors for their preferred communication channel, it’s a great idea to include this question in your onboarding or donation form on your nonprofit’s website going forward.

On your survey, you could provide these options:

  • Text
  • Email
  • Phone
  • Direct mail
  • Social media

You could also consider how you acquired the donor. Did they find you through your website? Did they donate through text-to-give? Did they respond to a post on your social media account? If one channel has reached them before, it will likely be their preference and will reach them again.

Obtaining this information sooner than later can make a huge difference in how much time you spend on planning your marketing approach. If your nonprofit is launching a digital campaign, for instance, and you already know your donors’ preferred digital communication method, you can get started immediately.

3. Segment by age.

One of the most commonly used demographics in donor segmentation is age, and for good reason. A younger audience might be more likely to find your organization through your website or a text-to-give campaign while older donors might hear about you through word-of-mouth or direct mail marketing.

But be careful not to make too many assumptions. While you might be tempted to use social media solely to reach your younger donors, certain platforms, like Facebook, are actually used more often by older audiences.

In addition to aiding your marketing strategy, age can also help you determine which fundraising approach you might want to implement within each segment. While a crowdfunding campaign or peer-to-peer fundraising is most effective with millennials, remember that baby boomers will tend to be more responsive to traditional mail campaigns.

4. Categorize based on average gift size.

Depending on the fundraiser you’re running, it might be more efficient to focus on a specific type of contributor as your campaign progresses. This approach can help keep your fundraising efforts organized and will give you the time to focus on one segment at a time.

For instance, if you’re running a capital campaign, you might want to focus your efforts on donors who have the largest average gift sizes first to secure major donations. Then, you can work your way down to the lowest average contributors, adjusting your marketing strategy along the way.

Not sure how to organize your strategy or which marketing methods to use? Here are some steps to follow with their ideal marketing channel if you decide to segment your donors by their average gift size:

  • Major gifts: Start here. This way, you can make sure to acquire your biggest donations before appealing to smaller donors. Prioritize highly personalized interactions with these donors. Try meeting them face-to-face or giving them a phone call to explain the value of their gift. Be sure to determine a minimum required donation amount to be considered a major donor beforehand.
  • Midsize gifts: Once you’ve secured your largest donations, move on to your medium-sized contributors. Reach them with a personalized email or direct mail campaign. Plus, if your large donors agree to match other donations, you could use this benefit as a selling point for your mid-size and smaller supporters.
  • Small gifts: Focus on these donors last to push your final fundraising total up to your goal. Connect with them through a text-to-give or social media campaign, and make the donation process as easy as possible. Remember that every donation counts!

5. Orient your marketing around your donor’s location.

Your proximity to donors will affect how accessible you will be to them, and segmenting your donors by location can help you tailor your marketing materials to fit those limitations. This is especially true if you’re an organization working within your local community.

If you’re hosting a local, in-person event, for example, it wouldn’t make sense to send a postcard invitation to someone living two states away.

However, just because your far-away donors can’t attend your event doesn’t mean that they don’t want to hear from you. All you have to do is implement a different strategy. Social media, email, text-to-give, or other digital communication methods can be an effective way to continue building meaningful relationships with donors who aren’t nearby. This OneCause guide to hybrid events can also help you bring your donors together no matter their location.

 

Grant Cobb is a fundraising specialist with over 6 years of experience in the nonprofit space. Currently the head of marketing and analytics at GivingMail, he is a huge proponent of data-driven decision making and the push to bring high-level analytics and fundraising to all.

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