From Transaction to Transformational by Summit Marketing

From Transaction to Transformational…

LOVE

will Find a Way

Bright

Little Observations

The word “philanthropy” comes from the Greek, meaning love of mankind. From the Greek word we find that “charity” means love, and more specifically Christian love of one’s fellow humans. While these concepts are at the very heart of why and how non-profit organizations serve their clients and communities, do we also come from a place of love when considering how to engage with our donors – those who make our work possible? Now, more than ever, it’s imperative that we do.

THE TRANSACTIONAL EXPERIENCE Today’s typical approach to fundraising is transactional. Offers take the form of a simple proposition describing what a specific donation will achieve. For example:

$6.00

provides a meal for three hungry people And for those with a propensity to give more:

$300

provides 150 meals

Arguably this method has its place. It’s quick to create, attains reasonable response, raises awareness and provides warm leads. But it is also short-sighted. Far too often this strategy results in a series of oneand-done asks (followed by impersonal and generic thank you notes) that prevents donors from grasping the organization’s vision and appreciating the positive impact of a long-term partnership – not only for the non-profit, but more importantly for themselves. Their sense of accomplishment quickly fades because it never transforms into something heartfelt and meaningful. As a result, they give up on giving… not on giving to charity in general, but on giving to your organization. SummitMarketing.com

ASK FOR MONEY

THE TRANSFORMATIONAL EXPERIENCE “Make the donor the star.”

SEND A THANK YOU

Repeat

We’ve heard this touted time and again as the foundation of successful fundraising. Yet if we seek to accomplish that by merely tweaking how we write appeals or personalize our emails, we leave potential on the table.

Repeat

Repeat… RECEIVE A GIFT

A boring process for the donor and serious oversight for your organization. The consequences are costly, as exemplified by the shrinking return on investment and growing donor attrition felt industry wide.

The transformational experience flips the focus from the organization to the donor. It begins with the first gift, continues throughout the donor’s lifecycle, and impacts every role, task, policy and touchpoint in the development process. Donors are “only” human. Like all of us they share the desire to right wrongs, end suffering and make a positive impact on those around them. By making an initial gift, a donor is ultimately raising her hand. She is indicating she shares your mission and is curious about how she might become part of it. She’s asking you to invite her in.

The 2018 Fundraising Effectiveness Survey Report of the Association of Fundraising Professionals calculates an average donor retention rate of 45.5 percent. According to the report, “Every $100 gained in 2017 was offset by $96 in losses through attrition.” (Westfall Gold) Summit Marketing’s own findings show that if each donor, regardless of contribution, represents $50 in acquisition costs, then gifts below $50 can’t generate a positive return until later in the donor lifecycle – provided those donors are retained. Even if retained for multiple years, smaller gifts can result in a net loss that may never be recovered. These alarming trends are a direct result of strategies that elevate a transactional giving experience over a transformational donor relationship.

Thus, her status evolves from prospect to partner and your role must change too… from fundraiser to ambassador. Through your organization you can offer an experience that will transform her life while building a collaboration that transforms your organization as well. SummitMarketing.com

Transactional Donors to Transformational Philanthropists

This is where fundraising moves from the science of statistics to the art of relationships.

HELP FULFILL DREAMS AND LEGACIES

ASK FOR MONEY

RECEIVE A GIFT STRONG RELATIONSHIPS

INTENTIONAL ATTENTION Imagine meeting someone new who shares your passions, interests and ideals. You know you would be a blessing in one another’s lives, so how do you grow that friendship? You take time to learn all about her – her family (and fur babies), background, goals and dreams. You listen to her concerns and celebrate her achievements. You let her know you’re thinking about her. You remind her how important she. You show her how much she’s loved. Through the bond of your shared mission and vision, you help her fulfill her legacy. In return, she’s there for you, too. She has your back. You can count on her support. Now apply that scenario to the relationship between your organization (you) and the donor (a new friend).

ACKNOWLEDGE DONOR PASSION

An exhilarating experience for the donor and rewarding practice for your organization.

Summit Marketing suggests that when someone makes a first gift of $100 or more, they have shown a keen and heartfelt passion for your organization’s work and those you serve, and the amount of their gift demonstrates the capacity for an even greater level of support.

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These two factors indicate the donor is ready for love. She’s a prime candidate for Intentional Attention, an investment with exciting returns for your organization… and a transformational experience for the donor.

We’re “only” human! We share the need to be ed t c e p s

d e d e

loved

a Part oifnded like-m unity comm

THE 4 A’S… A LOVE LANGUAGE FOR DONORS Creating a transformational experience for your donors doesn’t have to be complex. Drawing on their human desire for acknowledgment, affirmation, appreciation, and aspiration, you can create a 4-Pillar Plan – a series of touchpoints that will fulfill their needs and cement their relationship with your organization.

understood

val ued

seen & Heard

Pillar 1: Acknowledgment Whether time, talent or financial contribution, respond to every gift in a timely manner. The donor wants to know not only that her contribution has been received “Thank you” (if monetary) or recognized (if is a polite volunteer service), but also that expression of it is making an impact to further gratitude, typically your shared vision. Remember used in response to acknowledge not only the gift to receive a itself, but just as important, the gift, service, or donor’s intention and sacrifice. compliment. For first-time contributors, this pillar may be augmented by an “on-boarding plan,” with touchpoints that welcome the donor and offer a preview of what the relationship holds in store. SummitMarketing.com

ACKNOWLEDGMENT INTENTIONAL ATTENTION TOOLS: Hand-written thank you note, specific to each gift Personal phone call from organization official Welcome

Welcome letter for first-time donors

Pillar 2: Affirmation Out of the blue. For no special reason. Surprise and delight the donor with a reminder that she is important to you – not her generosity, but the donor herself. Take time to get to know her, tell her more about your organization and ask for her opinions and suggestions.

AFFIRMATION INTENTIONAL ATTENTION TOOLS:

Mark Twain once said, “I can live for two months on a good compliment.” If we take Twain literally, six compliments a year would have help him emotionally fulfilled.”

OF ENJOY THIS PACK

MITMARK

Cards of praise, admiration and encouragement Personal phone call from development staff member Quick “thinking of you” text messages Encourage prayer requests Remember birthdays and other events

Welcome

Appreciation means you acknowledge and recognize the value/worth or something or the amount of work/effort someone has expended.

Pillar 3: Appreciation Actions speak louder than words. Take special steps to ensure your donor knows she’s not taken for granted and that her efforts and partnership are celebrated. Honor her by introducing her to others in your community of supporters, further strengthening her bond with your organization.

APPRECIATION INTENTIONAL ATTENTION TOOLS: Appreciation events to meet like-minded friends (send donor photos of her with other attendees) Community recognition or feature in publication Inexpensive but personal presents (a gift card to her favorite coffee shop) Surveys and questionnaires

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ASPIRATION INTENTIONAL ATTENTION TOOLS: Share special program or facility needs Offer tours to witness her generosity in action Invite to graduation ceremonies Encourage her to continue her legacy of love through estate planning

Pillar 4: Aspiration Your donor desires to make a difference… to do something meaningful with her life. “Aspiration” is perhaps the most important of the four pillars because it is through these touchpoints that you can help your donor achieve the transformational experience. Provide opportunities to do something meaningful… then affirm her efforts had impact. As the donor feels the joy of fulfilling her goals and dreams (and in many cases, her calling) your organization will be transformed as well… transforming the lives of others.

Aspiration means the hope of ambition of achieving something. One of the key findings in Summit Marketing/ Ric Lipman’s Salvation Army research. SummitMarketing.com

IMPORTANT CONSIDERATIONS WHEN BUILDING YOUR 4-PILLAR PLAN While all of us share the same needs, they manifest in different ways. Knowing your donors also means knowing their preferences. While some may enjoy public recognition, others are uncomfortable in the limelight and prefer to offer their support anonymously, from behind the scenes. While some may be encouraged by personal cards and gifts, others may prefer you spare the expense – using the funds more directly for the mission – and communicate your appreciation with a call. However you build your 4-Pillar Plan, allow flexibility to customize for your donors. Otherwise, your efforts will be wasted or even worse, detrimental. And remember, your donors are equal partners in this change from a transactional to transformational experience. Because they’re not used to being the center of your attention, they may need time to adapt as well. Consider how your plan for current givers might differ from the process for those new to the file.

By adopting a culture of transformational giving – and cultivating donors with Intentional Attention – you will not only increase ROI and donor retention rates, but you will also deepen your community of supporters, increase your (volunteer base and move more donors to legacy giving, advancing your vision and mission.

Now let’s get started… love will find a way.

Over 30 years of success in sales, multi-channel development and innovative fundraising have earned Summit Marketing a reputation as one of the nation’s most effective integrated direct-response marketing agencies. We produce strategies and tactics that inform, engage, inspire and move people to action. SummitMarketing.com

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