R.I.P. Donor Pyramid?

Swirling fractalThe modern model is more like a vortex — an energized circle where everyone is equal. People move in and out as needed, and your job is to keep the energy flowing.

NOTE: My article on the topic of moving away from the donor pyramid model for donor acquisition, cultivation and major gift solicitation recently resurfaced on social media dialogue, so I thought it was time for a reprint.

Why do we always think of donors with pyramids? The pyramids were built in Egypt. On the backs of slaves. It took a very, very long time. The cost, in human terms, was untenable and unsustainable.

That’s why you don’t see many pyramids being built these days.

Except in nonprofits, where building the donor pyramid is still the holy grail. Get ’em in. Move ’em up. Acquire through direct mail. Convert to monthly donor or sustainer. Acquire through events. Convert to mail. Up, up, up … to the pinnacle of major and planned gifts!

Except for one tiny thing.

It doesn’t work.

Pyramid building is so 2630 BCE. Nobody’s got 100,000 workers (aka direct-mail donors) building a solid pyramid anymore. Many so-called pyramids really look like hourglasses. Or upside-down pyramids. Or plateaus. Even the pyramid-shaped ones are resting on shaky foundations of donors who move in and out, in and out — eight out of 10 newly acquired bottom-of-the-pyramid donors leave — making the “foundation” more like a river than a solid, secure slab of mortar. The days of the donor pyramid model are gone!

Digital toppled the donor pyramid. Actually, it crumbled it … slowly, surely … until there was nothing left but an empty frame. A triangle on paper. The donors no longer fit inside of it.

R.I.P. donor pyramid. You had a good run.

The donor pyramid (sometimes call the donor ladder) was a great model for linear thinkers like me. It was neat and orderly. Engage folks from the bottom up, level by level, one step at a time. It was stable.

Or so we thought,

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Transactional Nonprofit Work vs. Transformational Donor-Led Progress

Transactional Nonprofit Work vs. Transformational Philanthropic Progress

Greg Warner of Market Smart writes a lot about the difference between “work” and “progress.” I appreciate the distinction, both professionally and personally. I think you can use this notion, so I’m going to suggest a way to extend this idea to your nonprofit fundraising.

Warner notes in Why You Should Never Get a Job and Go to Work: “work” is tedious and negative; “progress” is inspiring and positive.

This is about being intentional about where you’re going.

It’s somewhat about perception and desitnation, but I’d argue it’s largely about the journey.

Your journey. Your donor’s journey.

And how everyone feels about the endeavor.

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2 CommentsDonor Retention
Girls sharing secrets

5 Secret Nonprofit Donor Retention Action Strategies

Girls sharing secretsGiving is an emotional experience. It deserves an emotional response.

Be human.

Ever notice how sometimes when we put on our work hats we cease to be human? How we somehow morph into little robotic “professionals” and become enamored of jargon?

“Lybnts.” “Sybnts.” “Recaptures.”

Not that those things aren’t important. You need goals and objectives.

And given the dreadful state of donor retention in the U.S. today (and in the U.K and Canada as well), it’s vital you be able to measure how you’re doing. Because growth in giving is a factor not just of how many new donors and dollars you acquire, but also of how many donors and dollars you lose.

If you lose as many current donors as you gain new ones, you’re getting nowhere. Fast.

Treadmills Are Only Good in the Gym

Slow down.

Think about what you’re doing and why. You may need to change your frame of mind.

When you acquire a new donor, is it for that one-time transaction? If so, that’s not a very thoughtful strategy, because it costs more money than you make to acquire new donors. In fact, you likely won’t make back your investment for 18 months or so. You won’t make it back at all if you don’t renew that donor.

Nonprofits, sadly, have been on a non-stop treadmill. Donors in. Donors out. Donors in. Donors out. So… something about just measuring this stuff isn’t really working.

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4 Sculptures of torsos, Kristina May, Filoli 2020

4 Types of ‘PERSONAL’ Your Nonprofit Must Adopt Today

4 Sculptures of torsos, Kristina May, Filoli 2020Early in my career I received a piece of fundraising advice that has stuck with me to this day:

People are all people.

And what do you do with people if you want to build a relationship?

You get PERSONAL!

In fact, if I had to tell you how to win over donors with just one word, “personal” is the word I’d choose.

This word should become your mantra and underscore everything you do. Your annual appeal writing. Your special events. Your newsletters. Your blog posts. Your proposals. Your reports. Your social media.

If you take just this one word to heart — PERSONAL — you’ll be leaps and bounds ahead of the competition.

This is the one word that can set you apart.

That can help you build relationships like nothing else.

Though we talk a lot about empathy and donor-centricity, truly valuable tools in building donor relationships, these terms are subsumed by the umbrella of the ‘person’ to whom they apply.

Make sense?

Today I’d like to flesh out the multiple meanings of this word, and discuss how getting personal can help you achieve your nonprofit fundraising and marketing goals.

This is something that has always mattered. Today, in an era of social distancing and striving for greater diversity, equity and inclusion, how we get personal and how we define people are more important than ever.

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Mona Lisa with face mask

How long… will this be going on?

Mona Lisa with face maskIf you’re like me, chances are every other email in your inbox has something referencing coronavirus. You can’t ignore it, avoid it or wish it away.

So… what is your organization going to do?

The inimitable thought leader, Seth Godin, recently had this to say:

React, respond or initiate?

That’s pretty much all that’s on offer.

What will you do next?

The first gives us visceral satisfaction and emotional release, and it almost always leads to bad outcomes.

Responding is smarter. It requires each of us to think hard about the action and emotion we seek to create after something is put on our desk.

And the third? Initiating is ever easier and leveraged than ever before, which, surprisingly, also makes it more difficult to move up on our agenda.

In normal times, it’s easy to get into a rhythm of simply responding. Someone else setting the agenda.

When things are uncertain, it’s easy to react.

But now, right now, is the single best time to initiate. We’re in for a slog, but there will be an end to it.

Make things better by making better things.

Taking this advice to heart, I’d like to share a couple of examples of organizations who have initiated some inventive strategies to stay connected to their supporters in these challenging times. Usually I would share these in my “Don’ts vs. Do’s” feature. But both of these are big ‘Do’s,’ so I want to highlight what’s brilliant about them. You can ‘sincerely flatter’ them through imitation — and a bit of your own innovation.

Ready to be inspired?

OMG, What Will We Do About Our Upcoming Event?

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How Nonprofits Can Connect Virtually During Trying Times

Virtual meeting PixabayConnection is essential, especially during challenging times. When the going gets tough, we yearn to commune with people who will support us… teach us… commiserate with us… empathize with us… calm us… distract us… … entertain us… enable us to support them… and more.

Without connection, people can feel isolated. Yet today, as we prepare for the spread of coronavirus, we’re contemplating doing less of the things we normally do in person with others. And nonprofits are not immune.

What are you doing to reach out to your supporters when they need connection most?

Here are just a few messages received from local nonprofits in San Francisco within just the past two days:

Canceling a popular fundraiser that we depend on to cover the costs of keeping Public Glass open is not a decision we came to lightly, but it is critical that we do our part in helping to ensure that our Bay Area Community remains as safe as possible.

UNDER ADVISEMENT AND RESPECTING THE NEWLY ISSUED AGGRESSIVE RECOMMENDATIONS ANNOUNCED TODAY BY THE SAN FRANCISCO DEPARTMENT OF PUBLIC HEALTH TO REDUCE THE SPREAD OF CORONAVIRUS (COVID-19), THE MARCH 12, 2020 SFIC MONTHLY BREAKFAST IS CANCELLED.

We are very sorry to announce that, due to public health guidelines from the Mayor’s Office, our 2020 Benefit Art Auction, hosted in a city-owned building, must be cancelled. This event is a massive effort, involving over a hundred contributing artists, a dream-team of volunteers, and many beloved business partners. We were ready to create a wonderful celebration of creativity! We will continue to explore innovative ways to connect our community, but right now, this is the best way to take care of each other. 

How about this haiku from my cousin, who is hosting his son’s wedding this week-end (at least as of this moment):

Last year seemed so bad

COVID-19 is now here

How I miss last year

While apt, missing last year and wringing your hands won’t help. As in-person gatherings are indefinitely postponed or canceled, as public spaces are closing, and as people are working from home, what can you do to make lemonade — and quench your supporters’ thirst?

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Gumball Machine

How to Kill Your Nonprofit Career: Gumball Theory

Are you treating your donors like gumballs?

You are if you consume them in five minutes, then never think about them again.

Alas, too often nonprofits treat their donors exactly like a gumball dispensed from a machine.

Chew it up. Spit it out. Done.

Transaction over.

Want your donors to sustain you? Then you can’t treat them this way!

Whatever size gift they make, they’re unlikely to make it again — let alone give more — unless

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I am grateful

How to Cultivate Awe, Gratitude and Altruism to Boost Nonprofit Fundraising

I’m a huge fan of the Greater Good Science Center at U.C. Berkeley, and often apply their research to nonprofit fundraising and marketing.  A recent article really struck me: How to Find Your Purpose in Life.

Over my 30 years of practice as an in-house development professional, the fundamental thing I learned is this:

You serve your donors every bit as much as they serve your organization’s mission.

Please allow that to sink in.

You have a mission. A purpose. Donors can help you get there.

Your donors are looking for purpose. You can help them find it.

It’s a symbiotic relationship.  And you have a role in fostering that relationship.  What is that role?

Your job is to facilitate your donor’s philanthropic journey. Their journey to discover their purpose.

So what’s this really all about?

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