Donor Remorse

Your income isn’t where it was this time last year, you check donations, look at your donor database and see that you have a number of donors who haven’t given in the latest round of fundraising. Why?

It could be that you have several donors suffering donors remorse. Yes, this is a real thing, it’s akin to buyers remorse; something you’re probably personally aware of (did you really need that new pair of shoes, that new suit or that splurge on single malt whiskey?)

Donors give for a variety of reasons, and they stop giving for a variety of reasons; one reason some stop giving – is – donors remorse; yes it is a real thing.

Maybe you’ve experienced it on a personal level when you have given something, and almost as soon as you have dropped the donation in the bucket or envelope you have a pang of regret – remorse, and question why you did it.

There’s a few reasons for donors remorse, some people experience it after being prompted by a friend to support a cause, a relative was assisted by an organisation and asked you to make a contribution or, perhaps someone you know had a child selling something to raise funds for a school trip.

Donors remorse is a real thing, it’s something though that organisation probably don’t plan for but they should have some way to factor this into their planning. If someone gives today and later “regrets” it; the chances of them staying around and supporting in the future is very unlikely, yet they’ll still expected to by the organisation, the organisation will likely add them to the database, they’ll receive mailers etc – all at an expense to the organisation, with a very very low probability of a second or subsequent donation being made.

Quite likely the amount given initially will be less than what the organisation will expend to get subsequent donations.

Organisations spend considerable time (and money) on donor retention, but when a donor has remorse this expense is wasted. So a way has to be found to make sure the level of donor remorse is minimised.

Don’t be airy fairy in what the donors support will mean, give real examples of how it will make a difference, personalise how their giving will make a difference. If needed and you’re able to use real pictures and real names – “Lucy will have a better chance … “

When people are asked to support a real need has to be given, a picture painted; something that will stick with the donor – you want them to stick with you, so make sure the image you paint sticks with them.

All the training in the world won’t make a difference to how much you can raise – and maintain, if those making the ask are confident, competent and above all using all the tools you have given them.  Monitoring who information is used isn’t prying, it’s an investment, don’t be afraid to use “secret shoppers” – you’ll get real world feedback, not only on how your campaign is going but on how effective those making the ask are doing it and coping.

Are you going to let donor remorse hit your bottom line and impact on year on year giving?

See also Breaking the Silence Around Donor’s Remorse

Younger Donors, You Need Them

As the population ages organisations need to look beyond their mainstay of donors, the Baby Boomer etc; sorry to say, but this is a dying sector of the donor base.

But, unless organisations are (or rather have) started to work toward attracting younger donors there is a serious risk that organisations will suffer to not only grow, but to continue to do the work they are there for.

Sure, younger people are getting on board and supporting organisations, I’ve seen this, you’ve seen it, but in the main I’d suggest it’s the sexy organisations, not the less attractive ones (this is a perception).

To attract younger supporters organisations need to, yes, I’m telling you what others have been for ages; get savvy with the use of social media, get used to using video, stage events to attract a younger audience (typically millennials won’t want to go to a black tie dinner).

And, change your online presence. Does the website you had built a couple of years ago need an update, come to think of it, when did you last look at how your website looks on new devices – it may look good, readable and usable on your desktop computer; but what does it look and feel like on a handheld device?

Can users quickly and easily make an online donation? If not, you’re missing opportunities; sure there are other apps people can use to make donations to your cause, but why send them to another “site” if you’ve already got them “captured” on your site?

Not sure if you’re site, communication style etc is attractive to a younger audience – that’s easy, invite them to look and give you feedback, get a group of younger people together to talk about what you need to do to attract their age group; not just your look and feel, but your overall message and mission.

You’ve nothing to lose – oh, yes you do, you run the risk of your donors dying off and no new donors to fill their shoes.

See also

Young people need to be nurtured and encouraged

Teach children the importance of giving

Buy One Give One

People do have more “respect” for businesses that give back, for business who support the community; CSR has been talked about for a long time now, and perhaps more so since continued rise of the use of social media.

I literally stumbled across “The rise and rise of corporate social responsibility” by Marnie Fleming of Parachute Digital and just had to share it in the hope it will further increase discussion. Discussion within businesses about how they can be further engaged in the giving process; as well as discussion within charities about how to connect with business.

The rise and rise of corporate social responsibility

There’s been a significant increase in the growth of ‘corporate social responsibility’ over the years. With more consumers than ever saying they would be willing to pay more for a product or be more loyal if they knew the products they purchase or providers they use are acting responsibly, whether it be how the products are sourced, to giving back to communities, they have a deep seated need for accountability and giving back in some way. And rightly so!

This makes us (the consumer) feel good about themselves, because they’re informed choices of ourselves. I get to spend my hard earned dollars, knowing they will be making a difference somewhere somehow. This also makes me want to shop at that company again (now I’m sticky).

Continue reading Marnie’s article here

 

http://www.parachutedigitalmarketing.com.au/blog/author/marnie/

2016 Fraud Survey – BDO

I’ve talked about fraud in the charity sector before, and my personal take on it is that it under reported, because charities don’t want their donors to know that there are people committing fraud (no matter the level.)

Yes, there is a risk to funding if general donors (mums and dads) learn that there has been fraud committed at a charity they support, but in reality isn’t honesty the best policy, shouldn’t donors be told what’s been happening?

It seems that the majority of charities have systems in place, especially given the new reporting standards required of them, and know they can get help and support from Charity Services; so maybe the message is getting across, especially with smaller organisations, that there is help available to them and that there’s no shame in asking .

Read the summary of the BDO Not-for-Profit 2016 Fraud Survey here.

If your organisation detected fraud, what would you do, would you take action, would you let your supporters know? Either leave a comment below or email me charitymattersnz@gmail.com.

 

 

 

Looks Like a Charity Beat Up

A New Plymouth (New Zealand) charity – Roderique Hope Trust which provides emergency housing has recently leased a property to house people in urgent need of housing. But, this doesn’t seem to have gone down too well with others who have properties on the street.

One person, who’s daughter has a property on the street, has apparently threatened to sue if the value of her property decreases because of the Trust providing accommodation.

How can this be ok to even think about? As one person who commented on the item on Stuff.co.nz has said, “Do the residents of the street vet ALL people buying or renting in “their” street?  I bet they don’t!   How do they know that “that sort of person” became homeless due to accident, illness, redundancy or other reasons, and are perfectly respectable people?   This looks like a severe case of Nimby-ism”. This commenter is right in his/her thinking.

All too often we see community organisations taking action to help others in the community only to face a backlash, this time it seems as though the threat of legal action is only one part of the potential backlash, but it also seems that this could be a media beat up.

It would appear that Roderique Hope Trust have tried to keep the local residents informed, the fact that a meeting was planned for a long weekend is perhaps not a good thing, although it wasn’t organised by the Trust; but whoever organised it should have taken into account that some “players” wouldn’t be available.

We need organisations like Roderique Hope Trust helping in the emergency housing area, but we run the risk of others taking a step back if threats such as the one in this article are made to other providers.

Let’s hope there’s a good outcome to this and that the Trust moves ahead with their plan, it would seem that the owner of the property has no issues, only a handful of local residents who seem to feel they have been left out of discussions.

Let’s hope common sense prevails.

 

 

 

 

 

Grant Thornton Survey

The Grant Thornton Survey is conducted every two years, and from my take on the results non-profits are still facing the same issues as were indicated in the last survey results.

Smaller non-profits are still concerned about where they are at, where their money will come from.

And, again the issue of how organisations relate to their Board is also an ongoing concern (something I am concerned about – to me a Board should be more than a group of people who “”sign off” a Board should be active).

Read the full report here 

What are your concerns, issues … what needs to change? I’d be keen to know what your take is on where your organisation is now, and what you need to get it from where you are now to where you want it to be. Either leave a comment or email me charitymattersnz@gmail.com.

 

 

Recruitment Challenges, there’s a shortage …

Came across New Zealand’s shortage of fundraisers. A recruiter’s view on Saturn Group’s website.

We all know there’s shortages of skilled people across many sectors, we almost hear it daily; but we seldom hear about the shortage of skilled fundraisers.

Have a read of New Zealand’s shortage of fundraisers. A recruiter’s view, to understand what’s happening.

http://www.saturngroup.co.nz/news/new-zealands-shortage-of-fundraisers-a-recruiters-view/

To busy ”doing”

We all probably ”doing” and not seeing the bigger picture, not seeing what is happening with those around us. Missing out on warning signs.

This great article is certainly worth a read, even if you are part of only a small team; take the time and read it, I’m sure you will pick up some ideas, see where you could change in the way you work.

Leaders, Are We Too Busy With The ‘Doing’?

Where is your focus when you arrive at work? Are you thinking as a leader or manager?

One of the main factors that distinguishes a leader from a manager, is that that leaders lead by inspiration, whereas managers will co-ordinate people and tasks.

From time to time, however, as leaders we can find ourselves taking on a little more of the workload. Often we’ve been chosen to lead the team because we believe in the project or task we’re working on. We have a connection to it, or a passion about it, and we want to see it done well. That makes it all too easy to slip into a ‘doing’ role.

And when we’re ‘doing’, we’re not leading; we’re not inspiring the team to achieve bigger and better things. It becomes an issue when we become so focused on the tasks at hand, on all of the doing that needs to be done, that we become less aware of what’s happening within the team.

Read the full article here

They’re peeved off, now what

Why is it that some in the charity sector don’t know how to handle donors who may be annoyed with you, donors who may feel you’re not deliverying on what you say you will do.

It’s not rocket science, dealing with disgruntled donors is and should be treated in the same was as businesses would deal with disgrutled customers. Simple, customer service skills are needed.

We all know the importance of having, and maintaining donors and that if donors aren’t happy how this can impact on the work of the organisation; so knowing what to do is important, as is acting in a timely manner.

As with dealing with a grumpy customer, dealing with disatisfied donor means listening to what the donor has to say, not forming judgement, and doing things to placate them whilst sticking with your organisation’s mission and policies.

The key to dealing with donor complaints is to listen, you can’t handle anything if you’re not listening. And by listening, I don’t mean hearing; you need to be able to isolate what the real issue is that the donor has.

Donors don’t just have the choice to call and complain these days, they will (and do) take to email and will share their experiences online; sometimes on your social media platforms, sometimes not. Where ever and however they complain, you need to know and acknowledge their complaint (which may not even be a complaint as such).

It’s important when dealing with any complaint to be patient, to not respond rashly and to show the donor you care about the issue they have raised.
You don’t want to just be answering their immediate concern, you should be referring to other things your organisation is doing to improve donor relations. Remember, people, donors or shoppers simply want to be treated courteously and to be listened to – AND – they want their problems resolved.

If the ”complaint” is online, make sure you repsond, even if you simply say ”thanks for raising your concern, let me look into and I’ll get back to you.” Anything is better than nothing. But, make sure you look into it, and make sure you follow up with the person.

Having said respond to online comments, one thing you should be doing, which many organisations don’t seem to be doing is monitor their social media accounts.

If someone says something on one of your accounts, it’s not just to vent, they do expect a response, so make sure you are getting notified when someone posts on your FaceBook or Twitter, or other site you use. Be timely with any reponse, it shows you care, not only care about the person raising an issue, but it also shows you’re aware and professional to others who seethe post – current and potential supporters.

Not all complaints or concerns will be by letter, phone or online, some people will send an email Most often the email they will send it to will be the info@blahblah.com, but does this ensure the person who can respond gets the email? Probably not, so make sure whoever receives emails to info@ knows what they are expected to do when they receive a complaint or other emails raising concerns.

Whatever way you handle complaints, remember never take it personally, the person complaining isn’t complaining about you, they are complaining about a situation. If you take things personally you will react in ways that won’t do you, the donor or your organisation any favours.

Remember too, that in the main donors are nice, kind and understanding, there are only ever a few occasions when things can go sour, so don’t dwell on the negatives, this won’t do you any good.