Building Better Relationships with Your Donors

by Jennifer Dillon, Fundraising Specialist

Recently I transitioned jobs to move to Champaign-Urbana. My last week at work was hard – saying goodbye to work colleagues can always be difficult. However, I was most surprised by how hard it was to say goodbye to donors that I had built relationships with over the years. These men and women were my friends and the bedrock for all the good work that I was able to achieve. It reminded me of the importance of building strong relationships with donors.

Donors are more than a donation. Treating your donors thoughtfully and genuinely creates a community of supporters who become more invested and connected to your organization. Here are three easy ways to build relationships with your supporters.

Show your appreciation
You can never acknowledge your donors too much. From writing a thank you note to meeting them face to face, find opportunities to show your donors how much they mean to you. Every time I make a thank you call, it never fails that donors thank me for thinking of them. If this feels too overwhelming, encourage board members and volunteers to help you make the calls or go on visits.

This not only delegates the work, and it also builds a great fundraising team that will be able to help you solicit these donors at a later time. Consider calling your top 10% of donors – the donors who have given your organization a significant gift or who have given several times over the course of the year. Also, list their contributions in your annual report.

Invite them to see the action firsthand
Remember that donors are part of your constituency. Often, donors are your best advocates and representatives of your work. Think about who you talk to about a cause that you’re passionate about – friends, families, and colleagues. The same goes for your supporters. If they feel excited about what you do and connected to it in some way, they can play an essential role in spreading the word about your work. So show them how you do what you do. Organize an open house so that they can meet staff, board members, volunteers, and other donors. Send them quarterly updates or make sure they are signed up to receive your organization’s newsletter. If something good has happened in your organization – a great client success story or a new exciting program – then call up a loyal donor and tell him/her about it. If you’re written up in a newspaper article, send them copies.

Learn about what makes them tick
Make sure your relationship is not one-sided. Donors might know about the in’s and out’s of your group but you might not know the first thing about them. In order to really make their investment count, you have to first understand their motivation for making a donation.

Maybe a family member has diabetes and that’s why they give to the American Diabetes Association or they want to ensure that all kids have a loving environment and that’s why they give to Cunningham Children’s Home . Take notice when thanking them for their donation. Ask them what programs they like at your organization and what they would like to support. Consider sending them a short survey, asking them what their interests are in your organization.

Kim Klein, a renowned grassroots fundraiser and one of my mentors, says “Donors are worth the time they take”. Take the time to build solid relationships and do it in a strategic way. You’re guaranteed to grow your income and build your organizational capacity.

Jennifer Dillon has spent over a decade working in the non-profit arena as a community organizer and fundraiser. Her passion is to provide ways for every organization to create a culture of fundraising and financial literacy where staff, board members, and volunteers are all working together to build their organization’s capacity.

Q&A: To Reserve or Not to Reserve….

Dear do good:
Is there a general theory about the amount of money non-profit organizations should try to keep in reserve?
- Pondering in Urbana
 

Dear Pondering:
Thanks for a great question! The general rule of thumb is that organizations should maintain about a 25% reserve, or 3-6 months of annual operating expenses or budget (they say that at the high end, reserves should not exceed the amount of two years' budget and at the low end, reserves should be enough to cover at least one full payroll).

Now, this isn’t set in stone and there are many factors and variables (i.e., reliability/stability of operating revenues/receipts, impact of changes in economic conditions, potential for staff turnover, a need to move to new facilities in near future, etc). For example, organizations that have contracts or fees with regular and reliable payments don't need as much in cash reserves as organizations that rely on periodic grants, fundraising events or campaigns, or seasonal activities.

Assuming your organization is a fairly typical one, the 25% ratio is likely to fit well. Remember that it’s not an exact science and keep those variables in mind to make these parameters work for your group! Good luck!

Here are a couple places to go for more information:
http://www.nonprofitsassistancefund.org/blog/2008/04/24/the-cash-reserves-myth/
http://foundationcenter.org/getstarted/faqs/html/operating-reserves.html

- Laura Huth, President & CEO, do good Consulting

One Simple Act: FUNDRAISING TUESDAY!

In each month’s Doing Good, you’ll find one great tip to implement over the next month. By taking this one small, achievable action each month, you can make big changes in your organization’s and your own performance, increase donations and volunteerism, and expand your group’s visibility. Give it a try!

This month's ONE SIMPLE ACT was submitted by do good Consulting's newest contractor, Jennifer Dillon, a Fundraising Specialist. It focuses on setting aside real time for fundraising.

Make it Fundraising Tuesdays! Tired of trying to find time to write that appeal or go on donor visits while doing all your other program work? Why not dedicate an afternoon or a full day to focus on your fundraising? The day of the week is less important as much as your commitment and dedication to spending time each week raising money for your organization. This is a great way to involve staff and volunteers to create a culture of fundraising into your everyday work. So get out your calendars and make every Tuesday Fundraising Tuesday!

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