How can nonprofits maintain authentic donor relationships throughout the year?

by Debi Hoxter

Congratulations! You’ve identified, cultivated and solicited your donor and he/she has just made a major gift (the amount of a major gift will vary depending on the size of your organization).

At this point, many nonprofits believe their work is complete, but nothing could be further from the truth, for this is when authentic donor stewardship begins.

What is authentic donor stewardship? It is the stewarding of the individual, not just the gift, and is grounded in the desire to treat donors as partners by honoring their generosity and demonstrating how their gifts make a difference.

Remember, donors have contributed to your nonprofit because they feel a connection to your organization, its mission and the individuals involved. Nurturing donor relationships enables those who give to connect more deeply to your organization and those you serve and, as a result, make future contributions. Follow these steps to keep them connected to your nonprofit and aware their gift is appreciated.

Step One: Learn a prospective donor’s stewardship expectations before the gift is secured – or soon after

Ask the donor prospect what would be the most meaningful way to steward his/her gift, and what that would look like. Importantly, determine his/her preferred means of communication early on and for all outreach going forward, whether it be by phone or email (donors always appreciate being asked). This conversation enables you to learn more about who the donor is and what motivates him/her to give.

Step Two: Place a phone call within 24 hours of receiving the gift

Within 24 hours a phone call should be placed by your organization’s Executive Director/CEO and the person with whom the donor has the closest relationship. There is nothing that can substitute for a gracious and heartfelt “thank you,” and a donor will always remember the personal outreach.

Step Three: Send a personalized acknowledgment letter within two business days of receiving the gift

Ideally, a letter should be sent to acknowledge the donor’s gift within two days of receipt. If a template is used to create the letter, it should be personalized so that it appears to be written specifically for that donor and the donor’s partner should also be acknowledged in the letter. The dollar value of the gift should be listed in the letter and a brief explanation of the gift’s benefit to the organization.

The acknowledgment letter should always include a short, handwritten post-script.

Step Four: Communicate with your donor throughout the year to demonstrate the impact of his or her gift

Oftentimes donors feel that the nonprofit they support communicates with them only when it’s time to solicit another gift. To set your organization apart, it is critical to build your donor relationships throughout the year through authentic, customized stewardship tactics, identifying a plan that is meaningful to each donor.

For example, invite the donor to visit your organization and make introductions to staff and clients who have benefited from their generosity. Similarly, a letter from a staff member or client expressing his thanks to your donor for his gift and its impact is especially meaningful.

Smaller, donor-only events are also an ideal way to express thanks to your donors and build a sense of camaraderie among your donor base. If your nonprofit has just completed a renovation, plan an event to thank donors for their contributions and conduct first-look tours of the new offices. For those who prefer one-on-one interactions, a lunch invitation to update a donor on how his or her gift is impacting your organization would be especially meaningful.

Step Five: Make personal connections/touches throughout the year

Staying in touch on a personal basis throughout the year is certain to build your relationships with donors. Invite your donor to participate in a Career Day if applicable to your organization. Send your donor a note when a child is getting married or if a grandchild is born. These milestones should be in your database of details gathered during the cultivation step. Or, in lieu of the standard holiday card, consider sending a Thanksgiving card that expresses your gratitude.

Most important is creating a stewardship plan for each donor and developing a calendar of “touches” throughout the year. Dunleavy & Associates’ development professionals have the expertise to guide you throughout the donor cultivation, solicitation and stewardship process. To learn more, visit our website at http://matchingmissions.com

About the author: Debi Hoxter is Director, Corporate & Foundation Relations at Dunleavy & Associates. Pulling from her prior experience as Executive Director, Corporate Underwriting at WHYY, Debi works with clients to build donor and corporate relationships and create strategies for meeting revenue goals. She began her career in advertising, working first at Ted Bates and Grey advertising agencies in New York before serving as Advertising Sales Manager at Philadelphia Magazine.

How should a nonprofit talk to potential donors about overhead costs?

By Megan Lepore

In a world where everything is scrutinized, administrative costs (also referred to as “overhead”) have almost become dirty words in nonprofit fundraising. Everyone's heard some version of the following, usually from an uninformed friend or family member: "Can you believe [insert organization here] keeps a third of every dollar? They won't get a dime from me!"

With the budgets of even large, nationally respected organizations being targeted for criticism in recent years, the dilemma for small and mid-sized nonprofits is great. How much financial information should you openly offer to donors and prospects, and how can you best convey it? Is it best not to mention overhead costs at all, or perhaps speak in generalities?

At Dunleavy & Associates, we believe strongly in the importance of honesty and transparency. Leaving donors or prospects in the dark about where their money is going will eventually have negative repercussions, and you can bet they'll never donate again once their trust is broken.

What donors are really concerned about is not just confirmation of where their dollar is going, but whether or not it's being wasted. Donors by nature are considerate people, capable of understanding that yes, your staff must earn a salary in order to carry out your nonprofit's mission. And they (should) recognize that there are real costs involved to doing your work.

So, what is the solution? Use your organization's communication channels to talk about those costs. It’s okay to talk with prospects about the expenses associated with using current technologies to provide integral services to your constituents, the need to sometimes outsource services (such as graphic design), and the everyday cost of running a successful nonprofit organization.

At the same time, it’s not unreasonable for them to want to know how well you steward their dollars. Be prepared to share what percentage of donations goes to overhead costs. You can share how your organization has worked with vendors to make more cost-efficient decisions (bulk printing, shared resources, in-kind services, etc.) and how the staff and board have resolved to more closely monitor expenses to increase revenue in the new year. This type of information will help to build trust that your organization is careful with every dollar.

And don't be afraid to spice up your communications. Many organizations report their financials only at the end of the year, often in a large, dense report. Let your donors know how their contributions are making an impact in the community – in both big and small ways.

Send out brief recaps that utilize statistical infographics or photos of your clients and staff. Tell them how the campaign they donated to fed 300 families for a month, or helped 30 pups find forever homes. Highlight your top corporate or individual donors to reward them for their support.

And don’t just wait till the end of the year. Break with tradition and send a brief mid-year synopsis detailing the accomplishments of the first six months, as well as your capital and campaign goals for the next six. Not only will your donors feel more involved in the process, you'll keep up with your financials and avoid the end-of-year pileup.

Always remember, in a time when donors, prospects and journalists have access to your 990s at the click of a mouse, any effort to cloud your financials is a disaster waiting to happen. Instead, get ahead of the conversation and build trust with transparency through smarter, more engaging communications.

About the author: Megan Lepore is a Senior Project Manager at Dunleavy & Associates and has more than 10 years of development experience in the fields of healthcare, education and human services. She holds a Master of Science in Communication Management from Temple University, where she has also taught undergraduate courses in speech communication, public relations and news writing. Annual appeals, corporate sponsorship, grant writing, foundation relations and event planning round out her professional expertise.

Dunleavy produces Third Annual CORA Family Festival

Dunleavy & Associates produced the third annual Family Festival and Craft Fair on Saturday April 26, 2014, 11am – 3pm at CORA Services (8540 Verree Road). This event brings the community together and features lots of family fun including games, inflatables, crafts, talent show, music and delicious food. Crafters are selling unique items. Local businesses and community members support the mission while children and their families have a great time. Proceeds help CORA Services support its mission to assist children, youth and families experiencing emotional, academic and social challenges which impede their development and productivity. CORA provides a comprehensive array of services to meet community needs including Early Years Preschool Education, After School and Summer Programs, Intervention and Prevention Services, Counseling and Case Management, as well as Educational, Counseling, and Therapeutic Services in Schools.

The goal of this event is to raise awareness about these services, increase local support, and most of all to provide family fun. Whatever your organization’s mission might be, Dunleavy can create and manage a signature event to achieve your goals. Dunleavy manages three annual events for CORA Services: Champions for Children Celebration, CORA for KIDS Golf Classic and Family Festival.

Engaging younger generations as donors, volunteers and employees

On Saturday, April 26, Nancy Dunleavy will be presenting the ‘Engaging Younger Generations as Donors, Volunteers and Employees’ panel discussion at the Air Care Alliance 2014 Conference hosted by Angel Flight East. The conference sessions will be held in Blue Bell, PA at Normandy Farms and Wings Field (KLOM). Four Gen X and Y panelists who are involved in the nonprofit sector will join Nancy during the discussion to provide useful insight on the best ways to engage millennials through trust, loyalty and incentives. Program attendees will gain a better understanding of the millennial generation through the panel and realize the benefits of engaging with the younger generation. Through the discussion, the audience will be learning useful strategies to connect to millennials and build their trust and loyalty.

The panel of millennial experts include:

• Ms. Brittany Alba: Senior Project Associate, Dunleavy & Associates
• Mr. Nick Coan:  Medical Student, Philadelphia College of Osteopathic Medicine
• Ms. Lisa Dickson: Senior VP, Financial and Strategic Planning, Radian Mortgage
• Mr. Dan Kaufman: Associate Director, Nonprofit Board Leadership Program Wharton Leadership Program

The Air Care Alliance Conference is a chance for those involved with charitable aviation to learn more about hot topics affecting public benefit flying and to get together with friends and colleagues for a great time.

To find out more information on this event, please visit www.aircarealliance.org.

To book Nancy Dunleavy as a speaker at your next event, contact ppoach@matchingmissions.com.

Dunleavy Plans Benefit and Auction for Child Advocates

On April 9, 2014, Support Center for Child Advocates celebrated 37 years as the nation's leading pro bono legal and social services advocacy organization for children at the Annual Benefit Reception & Auction at the Crystal Tea Room in Philadelphia. Approximately 800 legal, corporate and individual supporters attended the cocktail reception, live and silent auction that featured more than 450 unique and exciting items! The event, which honored Ed Satell, Founder and CEO of Progressive Business Publications, raised more than $480,000 to support the organization's mission. Dunleavy & Associates was honored to assist with the production and management of the event and help Child Advocates raise funds to support it's very important mission.