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Are Your Donors Fans?

Are Your Donors Fans?

Growing your donor pool is something we cover a lot here at Grassroot—whether it is identifying data patterns or crafting your messaging.

But one of the best ways to grow your donor pool is to have current donors do it for you. That means cultivating a level of loyalty that motivates your donors to spread your message. Put another way, turn them into fans—your fans!

The American Marketing Association (AMA) has an extensive post on the topic, including a deep dive into understanding why donors become fans. It’s a useful read for anybody who helps craft donor-outreach strategy.

AMA also has a simple formula for turning donors into advocates. AMA’s “Three Cs” breakdown goes like this:

1. Know your CUSTOMER. Specifically, what makes them donate to your cause?

2. Develop a COMMUNITY around your mission. Connect with your donors, and help them connect with each other, whether it is digitally (think social media hashtags) or in person (think special events).

3. CELEBRATE your donors, not your organization. Everyone likes recognition. Instead of lauding your fundraising totals, pull out specific stories that help donors connect to the cause they are supporting, and always, always recognize donors (so long as they are OK with being name-checked!).

Take a deeper dive by reading the full AMA blog post here. (https://www.amatriangle.org/blog/how-to-turn-donors-into-raving-fans/).

Measuring the Mind of A Donor

Currently, there is no universally accepted numerical index that captures donor sentiment, that is, the enthusiasm potential donors  feel about their own financial situation and thus their expected willingness to make generous contributions to their preferred charities and non-profits. Donor sentiment is tricky because there is no guarantee that prospects will donate even if they feel optimistic  about their purchasing power and there is no rule stating that people refuse to give when economic conditions sour.

However, a consumer sentiment index is a relevant metric that comes to mind when trying to find a proxy for a measure of how donors might behave in the near future. Looking at the University of Michigan’s well known consumer confidence index, we see that the figure rose 4.7 points from a month earlier to register a reading of 98.2 in December. This is great news because it is the highest reading since January of ‘04 and implies that consumers feel very optimistic about the economy at the present moment.

This positive sentiment is expected to translate into healthy consumer spending and consumers who spend more are more likely to further contribute to nonprofits if presented with the right opportunity. It is exactly the type of economic environment that fundraisers hope for as expectations of future growth also rose more quickly than they did last month. Organization directors should keep in mind, however, that the index may misrepresent economic reality and may become volatile.

A separate consumer confidence indicator, released by the Conference Board also rose in December to 113.7 from a revised 109.4 in November with the surge in optimism most pronounced among older consumers, according to Lynn Franco, Director of Economic indicators at the Conference Board. Older donors tend to give in greater volume to charitable causes ; according to a 2013 study on generational giving habits commissioned by the software firm Blackbaud,? Those born in 1945 or earlier give an average of $1,367 a year compared to millennials who average $481 in annual gifts.

Crucially, the older generation prefers direct mail communications which, according to Jen Love (Co-founder of Fund-raising consultancy Agents of Good) and Tom Ahern (an industry expert in writing fund-raising communications) is still the most effective medium through which to reach donors.

Sources:

See article: ‘Flattery Will Get You Everywhere’ by John Hanc, The New York Times – 11/6/16