Do Fundraising “Best Practices” Give Nonprofit Donors the Autonomy they Seek?

Often, so-called best practices are merely myths, beliefs or habits. “That’s how we’ve always done it” is not a reason to continue a practice that’s not evidence-based.

In the Middle Ages, bloodletting was the go-to medical cure.

Sometimes people got better, but that may have been in spite of the strategy rather than a causal manifestation. People really didn’t question it, because medical knowledge at the time was poorly developed. Science? Forget about it. The Roman Catholic Church was largely in charge, and ideas about the origin and cure of disease were based on factors such as destiny, sin, and heavenly influences.

Okay, let’s get to modern nonprofit fundraising.

Fundraising “Best Practices” Background

Lots of ideas, plenty of faith, much trial and error and very little data or science.

I’ve been in the fundraising field over four decades and, trust me, when I began – and for too many years thereafter — we were a bit in the middle ages.

Still, the fundamentals worked well enough.

If you were lucky enough to work for a large, established institution with a successful track record (i.e., with seasoned staff who could teach you), have a mentor, attend a course at The Fundraising School, or read one of the seminal works on fundraising by Harold (Si) Seymour, Hank Rosso or a few others.

I was more than delighted to discover if I did the things I was taught, the organization I worked for raised money. Everyone was happy.

Or so I thought.

Fundraising Misconceptions

What I was not taking into account (at least not as much as I should have) was how donors felt.

And how many donors did not give, or stopped giving, because we did not make them feel smart, empowered and joyful about their giving.

The problem? We treated everyone the same.

They were “donors” first, people second. If we did endeavor to apply a little bit of “art” to the equation, we segmented them by “personas.” Oops! Never mind they didn’t self-identify (at least not anywhere near the top of their list of identifiers) as a “soccer mom” or “Wanda Widow.”

• We didn’t ask questions about causality.
• We didn’t survey donors.
• We didn’t endeavor to learn about how they viewed their own identity.
• We didn’t use science.
• We relied too much on dumb luck.
• We valued opinion over knowledge.

We left a lot of money on the table.

Now, I think it was malpractice.  Then, it was “best practice.” Ruh, roh.

False Causation Can Get You in Trouble

Just because two things happen does not mean one caused the other.

So suggests Kevin Schulman, DonorVoice Founder, in When Best Practices Go Boom: A Behavioral Scientist’s Guide to Fundraising Folly. He examines 16 questionable fundraising norms we merely believe work – with little to no empirical evidence. We ask for money, and we get it, but sometimes that happens despite what we did.

We might raise a lot more money if we did something different.

Usually that different thing would take into account the donor’s intrinsic motivations and search for meaning. They would take the donor’s perspective into account, rather than relying on organization-centric practices that tell donors what is good for them (admonishing them to “give ‘til it hurts”), rather than offering them options to do what they have confidence is good. For them – body and soul.

Read all 16, and think about your organization’s experience. In my humble opinion, they aren’t all necessarily bad. Often there are ways to tweak what you’re doing to yield an even better result. However, if it resonates as pure folly, stop doing it.

Use Science to Empower Donor Autonomy

Helping donors to help us is so much better than haranguing and ordering them around.

And this is not just opinion; we know this from psychology, neuroscience and behavioral economics. Think about the toddler who absolutely refuses to get dressed in the morning when ordered to do so. But who will happily put on clothing when given the option to choose between the red shirt or the blue one.

Autonomy is important for optimal engagement in philanthropy

When donors are autonomously motivated, they give because a cause or value is near and dear to them. Not because they’re guilted or scolded or coerced in any way.

“Satisfying people’s need for feeling choiceful, smart in their decision to give and connected is the coin of the realm.”

— Kevin Schulman

Help Donors Find Healing Through Meaning

It sometimes feels we’re simultaneously living in two different spheres of reality. One is “normal.” The other sometimes feels like a gaping wound. Especially today, where there’s a zeitgeist in which many feel helpless to control the world around them. It leaves people a bit hopeless. At loose ends. What to do to feel better? More in control?

We can compartmentalize, but as the popular show “Severance” demonstrated, that’s not what people – deep down – want. Faced with fragmentation, people feel psychologically violated.

People want wholeness; healing through meaning.

And this is something social benefit organizations can offer. People are looking for leaders to show them a path towards choiceful purpose. You can be the philanthropy facilitator who shows a donor the path towards “love of humankind.”

“For the first time in my life I saw the truth as it is set into song by so many poets, proclaimed as the final wisdom by so many thinkers. The truth – that Love is the ultimate and highest goal to which man can aspire. Then I grasped the meaning of the greatest secret that human poetry and human thought and belief have to impart: The salvation of man is through love and in love.”

― Viktor E. Frankl, Man’s Search for Meaning

Do This to Deeply Connect with Donors

Today I want to offer four practices that focus on the importance of enabling donor autonomy.

1. Embrace relational fundraising at scale.

You may think you’re raising money, but you’re spending more than you raise – both in dollars and in time.

Do the math. First-time donor retention over the decade has ranged from an abysmal 13.8% to about 20% at most. Less than two in ten expensively acquired donors make a second gift. That is lost opportunity, when you could be building relationships with donors who will become more loyal over time.

Allison Fine writes in How to Treat Every Donor Like They Matter — and Keep Them that the time has come to use the technological tools at our disposal to build relationships with donors of all sizes – not just major donors. AI can be your friend, helping you to automate and personalize a series of touch points that make supporters feel good. And, when they feel good, they want to get more engaged.

“Relational fundraising at scale prioritizes genuine connection and communications over efficiency. It enables organizations to build relationships with donors at every level and make each one feel like a million bucks. This approach recognizes donors as more than financial supporters; they are potential advocates, ambassadors, and collaborators. Relational fundraising at scale is a new set of habits and norms. It is made possible with the responsible use of artificial intelligence tools.”

– Allison Fine, Chronicle of Philanthropy

Instead of treating small to medium-sized donors transactionally, use technology to look for patterns and thoughtfully customize outreach based on donor preferences, behaviors and identity.

2. Involve donors in decision-making.

If you want to know what’s important to donors, ask them! Don’t just guess.

That’s akin to only offering Sally caramel swirl ice cream because, the last time you were with her, that’s the flavor she selected. Similarly, if her last gift was for children’s services, that doesn’t mean she values youth programs above all the other human services you also offer. It’s just what she decided to do at one point in time. People’s preferences and values evolve. So, give them ongoing opportunities to have their voices heard. For example, if you’re planning a community event, bring together a group of passionate donors to brainstorm ideas. It’s a great way to foster collaboration, build trust, and make them feel like key players in your mission. That’s how you’ll know how to craft compelling engagement opportunities and relevant offers. Consider:

• Surveys
• Feedback forms (e.g., quick questions posed on remit pieces or donation landing pages)
• Donor focus groups
• Random phone calls to donors (check in with 10 donors/month and find out why they give, and how they feel as donors)
• Group meetings
• One-to-one meetings
• Invitations to join advisory committees

TIP: Whatever feedback methodology you choose, be sure to plan ahead for success by creating a goal statement to guide you as you craft questions. “Our purpose is to explore donors’ motivations for supporting our mission so we can more effectively communicate in ways that most resonate with donor values.” Or, “Our goal is to learn which problems we address are of greatest concern to donors so we can position our appeals in ways they find most meaningful opportunities.” Or, “Our goal is to find out what type of event our donors would like to attend, and whether they would invite their friends.”

Knowing their input matters makes donors feel they’re part of the team.

3. Offer opportunities to belong.

For most people, meaning is deeply intertwined with community connections.

They want to belong to your nonprofit’s community. People join a religious congregation, PTA, sorority, book group, political or social movement, any number of meet-ups and, yes, your philanthropic community, because it brings them a connection and purpose they seek. Consider:

• Inviting donors to share why they support you.
• Asking donors to engage with others through peer-to-peer fundraising.
• Sharing donor stories in your newsletter (I used to feature a testimonial “Why I Care, Why I Give” story in every issue).
• Celebrating donors at appreciation events (i.e., casual coffee; annual community event; virtual hang-out; conference call, etc.)
• Profiling donors on your website or in your annual report, emails and social media.
• Collaborations with other community groups.

4. Highlight donor impact through meaning-making storytelling.

Invite donors into a larger story that offers an easy way to create meaningful change.

We’re wired to want to enter into stories, and they capture our imaginations like nothing else. We want to become a part of them. We want to see ourselves, in some way, expressively reflected in the characters, plot and struggle.

Stories are a tremendous way to move people emotionally towards action. By showing donors how much they matter, and how they might create a happy ending to the story, you bring them meaning.

“In your annual fundraising plan, replace five solicitations with stories. Stop asking for money in every communication. Stop using every event, news story, or communication to raise money. No one wants to be asked all the time. People want great stories; compelling stories stick with people and are easy to share with others. Providing a laundry list of your needs is not the same as telling a story about the difference you’re making in the world”

Allison Fine, Chronicle of Philanthropy

Modern nonprofit fundraising relies on fundamentals of human relationship building, while also leveraging science and technology. Question your strategies, be thoughtful in your approach, and always be centered on “love of humankind.”

MIght it be time to rethink your priority fundraising strategies?

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Photo by David Trinks on Unsplash