Thursday March 6- How you treat donors

Hi !

🎶 One is a genius: TL;DR version

You sent an appeal. Someone responded with a $10 donation. That’s it?! I’ve got other donors who gave $500 and up. Now that’s what I’m talkin about! I’ll show them extra love. The $10 donor? Not gonna waste my time.

Are you dismissing small donors and concentrating only on major donors? Don’t do that!

Organizations should:

• Treat $10 donors like a $10,000 donor

• Do your best to make everyone feel respected and feeling good about their generosity

• Remember that a smaller donor can turn into a major one if treated right

See the They’re Pinky section for more about this week’s pain point.

🙃 The other’s insane: Treating people right

I may get a lot of clapback for today’s enews but it’s been one of my guiding lights for the 25 years I’ve spent in the nonprofit sector. Let’s get to today’s pain point: How we treat our donors.

🐁 They’re laboratory mice: One of my favorite stories

I share this story not only because I love it but because it teaches us an important lesson: No amount is too small. A quarter was 100% of what that man could give. His donation needs to be celebrated just as much as if he donated $25,000.

In a recent national survey I conducted (more to come), I read and heard grant pros and fundraisers making the distinction between small and large grants- and how much time they should dedicate to each. “Small” grant of $5,000? Not worth much of our time. “Large” grant of $50,000? We’re all in.

This attitude of “small donors don’t matter” or “small donors matter less” kills me. I’m just getting warmed up.

🐭 They’re Pinky: More donors, more growth

Back on April 1 (of all days!) I published a blog post titled The Big Three. I may have mentioned it here before but it’s worth repeating:

It appears to me that way too many nonprofits have decided to pursue the big bucks offered by foundation funders, corporate sponsors and major donors.

But smaller donors? $10 monthly givers? We don’t have time for them. Direction from on top is go find the big bucks.

Truth is I get it. There’s a money crunch. Financially the middle class isn’t doing well. Go where the money lies- with the 1%.

But if a lot of nonprofits move in that direction, fewer applicants will receive gifts. Through the abovementioned survey I already know that foundations are INUNDATED with applications for grants. They only have a certain amount to distribute and they’re turning away far more organizations than in previous years.

That will only get worse with the coming cutting of federal aid grants. Those cuts will be deep and they will hurt. Private, family and community foundations will be asked to pick up the slack- that means even MORE applications.

Couple the above with the crappy sector donor retention average and it’s easy to understand why household giving keeps going down year after year: Organizations are simply disregarding small gifts and concentrating only on midsize and up.

😡 😡 😡 

Let’s talk about a pain point that your DONORS experience. Take a minute and consider how donors feel.

I donate $10 to an organization. It’s 100% of what I can give. Yet besides a very bizlike auto email, the nonprofit doesn’t update me. Doesn’t take time to lemme know the impact of my gift. They don’t tell me how I’m making the world a better place. No relationship building whatsoever.

Basically I’m a 💵 🐄 to the organization. Or worse, I don’t really matter to them. If you’ve ever felt like that you know how much it stinks.

When donors don’t feel respected or wanted, they go elsewhere. Acquisition costs 5-10 times more than retention. And for a sector that cries poverty, makes no sense pissing off small donors by not paying attention to them. Now you have to go find new givers to replace them- costs more money, time and effort.

Two points to consider:

1. Monthly givers have a retention rate up to 90%: That’s more than DOUBLE the regular average! Sure they give in small amounts but they’re not going anywhere. They also become some of your best prospects for planned giving.

2. Lemme share with you an old trick by major givers: They donate $50 to your organization. They want to see how you interact with them. Based on that they decide whether to donate big bucks or not.

When fundraising becomes

your nonprofit will suffer. You won’t grow or thrive. You’ll be stuck in survival mode.

Big bucks is a needle in a haystack. I’m not saying don’t pursue it- you absolutely should!- but not at the expense of the lower hanging fruit, small donors who love your mission and want to partner with you to make their community a better place to live.

Rather than sharing multiple solutions, I’m going to share one big one. It might require changing your plan or an attitude adjustment: Treat every single donor with the respect they deserve. Show them heartfelt, genuine, warm love again and again and again.

That includes this:

Go right now and take a look at your thank you emails and letters. If it opens with “Thank you for your donation of X dollars” CHANGE IT NOW!!!! Lead with generosity and their kindness. The dollar amount does not matter. Leading with that makes it transactional.

Treat a $10 donor like a $10,000 donor. I know how hard that is given that certain large donors can be very demanding. I was a CEO, fundraiser and grant writer and understand the issue well.

But no matter where I worked, I made sure that every donor felt like a million bucks. Those donors appreciated the love and they were some of the best cheerleaders I had for the causes I worked for.

I always appreciate reader feedback and this week is no different. Agree? Disagree? Somewhere in the middle? Reply and lemme hear how you see it from your experience in the field.

🧠 And the Brain: A little of this and that

Here’s some great content for you to learn from:

1. The secret to connecting with donors (Hands On Fundraising)

2. The myth of donor fatigue (The Better Fundraising Company)

3. How to build your email list (Get Response)

4. A video fundraising strategy guide (Happy Productions)

🤔 Narf: Food for… making

I enjoy trying new recipes and from time to time I’ll share a recipe you might wanna try. I’ve tried over 1,000 different recipes (don’t ask why I know that number) and if you’re ever stuck for what to make, hit me up. Good chance I have something for you. (And unlike recipe sites where the author bores you with 2,000 words about something that happened in their childhood before sharing the recipe, I’m getting right down to business.)

Today’s recipe: Coriander rice 🍚 

• Heat ¼ cup oil

• Saute 4-8 shallots (or 1 diced onion) for 10 minutes till tender and golden brown

• Add 1 tbsp coriander, ½ tsp turmeric

• Cook and stir for 1 minute

• Add 2 cups basmati rice, stir till coated

• Add 4 cups chicken broth, 1 ½ tsp salt (I don’t add salt and it comes out fine)

• Bring to boil

• Reduce heat to simmer. Cook until rice is tender and liquid is absorbed

• Garnish with parsley

This is a good side dish to have with chicken. Enjoy!

🧑‍🎤 I think so Brain but I can’t memorize a whole opera in Yiddish: Hiding in the hair

I get hair loss. I’ve got it going on.

Everyone has a different solution for dealing with it. Some just let it be. Some do the comb over. Some get implants and plugs.

There are also some people who go the toupee route. Nothing wrong with it! Unless you’re a man in Columbia who gets caught hiding this under his toupee.

Not the smartest idea.   

I’ll be back next Thursday. Have a great weekend!

P.S. I listened to Natalie Imbruglia’s “Torn” on an endless loop while working on the enews. It’s not just that I like the song. It’s David Armand’s interpretive dance of the lyrics. Have a watch- very funny!