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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Girl dips toes in the water

12 Top Tips to Broaden Your Nonprofit Donor Community

Philanthropy should not just be about big checks.

That’s why you should never eschew small gift fundraising. Today I’m offering some tips for building and mobilizing your community to find, sustain and grow smaller gifts.

This is important, because a donor’s first gift is seldom their largest.  It’s a starting point.

The majority of your gifts will be small, but the majority of your income will come from a small group of major donors.

You have to grow this cadre of loyal, passionate philanthropists by building relationships with supporters over time.

The lion’s share of major gifts come from previously small gift donors.

A client I’m working with told me 50% of their major donors began with very small gifts.  How about tracking this for your organization? Sure, some major donors come in at the top. But I’ll bet you a majority start by dipping their toe in the water. How can you get folks more fully immersed?

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Photo of a cobweb

4 Timely Nonprofit Fundraising and Communications Strategies

Photo of a cobwebSpring is always a good time for rebirth and dusting away the cobwebs.  And what a grave, dusty, cobwebby year it’s been.

As I sat down to write today’s article, I found my mind jumping from idea to idea. After all, it’s been pretty hard to focus with everything going on. So I took a deep breath, closed my eyes, and tried to pull together the various challenges I’ve seen nonprofit leaders, and fundraisers, grapple with in the past year.

I thought: what can people do now to set themselves up for success as we move forward into high fundraising season at the end of this coming year.

It’s not too soon to be thinking about this.

I ended up with four tips I hope you’ll find relevant and timely.

1. How to Message During Uncertain Times

Whether it’s a marketing or fundraising communication, keep these four basics in mind.

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Hope mural

How 13 Nonprofit Donors Yields a $1 Million Philanthropic Legacy

Hope mural13 happens to be my lucky number. I want it to be lucky for you too.

Today, I’m going to reveal to you how you can make this happen.

A recent survey of wills reported on by the Chronicle of Philanthropy reveals the average bequest by everyday donors is $78,630.

Some people will leave less; some people will leave more. What this survey reveals, however, is you only need 12 to 13 donors making a provision for your organization in their will to reap $1 million.

If a major gift for your organization is $1000 (or even 5000 or 10,000), I imagine this sounds off the charts to you. Guess what?

Legacy giving is off the charts!

In fact, bequest marketing produces the highest ROI (return on investment) of any fundraising activity.

The first step to making this happen for your organization is to encourage bequests. Actively.

Promote Charitable Bequests, or Else

If you don’t actively encourage charitable bequests, people are unlikely to make them.

Why? There are three primary reasons:

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PB&J

Nonprofit Marketing & Fundraising Are Like Peanut Butter & Jelly

They’re meant for each other. Yet it may take a while to bring them together.

Here’s what I mean:

Peanut butter was first introduced at the 1893 Chicago World’s Fair. It didn’t get mixed with jelly until 1901, when the first PB&J sandwich recipe appeared in the Boston Cooking School Magazine of Culinary Science and Domestic Economics. It was served in upscale tea rooms, and was exclusive food. Until the world changed.

The 1930 Depression made peanut butter, a low-cost, high-protein source of energy, a star. But not the combo sandwich. Not yet.

Then…WWII.

Peanut butter and jelly were on U.S. Military ration menus. Soldiers added jelly to the peanut spread to sweeten the sandwich and make it more palatable. When soldiers came home from the war, peanut butter and jelly sales soared.

Suddenly this marriage became the norm. Why separate them?  After all, they went together like… PB&J!

We never looked back.

How is Nonprofit Marketing and Fundraising Integration like the Marriage of PB&J?

They didn’t start out married, but they belong together.

Here’s what I mean:

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Wish hanging from a tree

Warning Sign: A Post-Trump Digital Divide Between Nonprofits?

Believe it or not, this guest post appeared originally on my blog 3 1/2 years ago. I happened on it today, and thought it was still appropriate so wanted to share. One of my Clairification School students, Matt Patchell, had begun an important discussion in our online Subscriber Forum about what he termed the current “digital divide.”

He was referring to the chasm between nonprofits who are facing the digital revolution head-on, adapting their strategies to embrace its’ opportunities, vs. those sticking their heads in the sand and hoping it will go away.

Folks, digital engagement is not going away. Rather, it’s exploding.

As of late last year, one study found 43% of U.S. adults get political news online, rather than via television, radio or print media. A report from the Pew Research Center found one in five Americans get their news from Facebook. For the first time in the Center’s surveys, more than half (55%) of Americans age 50 or older report getting news on social media sites. That is 10 percentage points higher than the 45% who said so in the previous year. And that report is now three years old!

If you continue to ignore the channels your supporters frequent, and the ways they prefer to receive their information, the only thing that will be going bye-bye are your supporters.

What digital means for nonprofits.

It’s a sea change in how your marketing and fundraising team(s) operate and cooperate. Adopting is a far cry from adapting.

What does this have to do with Trump?

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Nonprofit’s ‘Unfair Advantage?’ You Deliver Meaning.

In whatever times we’re in, that’s what folks don’t have enough of. That’s what folks crave.

That’s what explained Nike’s daring move in 2018 to put forward a polarizing marketing campaign featuring the face of American football quarterback Colin Kaepernick, most famously known for taking a knee during the singing of The Star-Spangled Banner.

In Why did Nike do what they did? Mark Schaefer of Grow, and author of several digital marketing books, explains why this was a brilliant idea. Despite the fact it generated controversy, including protesters burning shoes in the streets, Schaefer notes Nike’s move aligns with research highlighted in his book, Marketing Rebellion. The book explores how to connect with customers and build a brand in a world without loyalty.

The message of the book applies  to folks in the social benefit sector as well.

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Inspiring chalk drawing

Should Your Nonprofit Legacy Program Be on Hold?

You may feel talking about mortality right now is a big ‘no-no.’

You’d be wrong.

I know some of you will argue with me. I’ve already seen one fundraising guru (who I generally admire greatly) say this is the only type of fundraising they’d not recommend right now. They called it ‘creepy.’

I understand the impulse to avoid this subject.

Especially now. Because it may feel insensitive. A bit like ambulance chasing.

Yet that’s not what legacy philanthropy is about. Not today. Not ever.

What’s Different in an Era of Pandemic?

Honestly, nothing. At least in this particular area of fundraising. Other stuff must be postponed or canceled, sure.

  • You may have to put your events on hold.
  • You may have to put planned spring and summer appeals on hold (assuming they were targeted for particular programs that don’t seem relevant or urgent at this point in time.)
  • You may have to put targeted legacy giving mailings on hold.

You don’t have to stop promoting meaningful legacy giving.

Why?

Because right now we’re all questioning the meaning of life. And our individual lives in particular. What can we do, as individuals, to make a difference? Not just today, but for tomorrow?  What will our legacy be?

Whether we live or die, we’re all thinking about what life will be like on this planet moving forward.  Yes, we’re in a pandemic. It’s scary and uncomfortable as all get out. Yet, let’s face it. People are seldom comfortable confronting the notion of their own death. Nevertheless death is as natural as birth. It’s inevitable, sooner or later, for everyone. Of course, we all hope for later.

Promoting legacy giving is not about actively seeking out folks on the verge of death and asking them to sign their estate over to you.  That would, indeed, be crass. Again, legacy giving programs are not ambulance chasing! And, anyway, most of your supporters are not sick. Most will survive. Yet…

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Reading on Laptop - How to Improve Your Nonprofit Newsletter

How to Improve Your Nonprofit E-Newsletter

Does your nonprofit have an email newsletter?

I’d rather see you rock a blog, but let’s talk a bit about your newsletter. Since you already have one, you may as well make it better.

Otherwise, what’s the point?

[BTW: If you don’t have an e-newsletter, go read the article above about creating and rocking a blog. Also read this. A blog can serve the purpose of an e-newsletter, and do so in a more donor-centric, user-friendly fashion. IMHO.]

Okay. Back to improving your newsletter. You can always evolve it into a blog (and doing so will make sense after you read the rest of this article).

Guess what most donors simply won’t tell you about your newsletter?

It’s boring them to tears!

Or at least most of it is.

Actually, let me rephrase. Not to tears. That would mean they’re feeling an emotional connection. Sadly, they’re not.

Why?

Most Donor Newsletters Are Boring To the Point Of Numbness

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Leverage Millennial Marketing Strategies to Woo ALL Nonprofit Donors

Marketin to MillenialsDo you ever worry you’re not doing enough to attract the donors of the future?

Does thinking about how to market to Millennials (who already are the largest segment in the workplace, will be 50% of the U.S. workforce in the next two years, and who will be 75% by 2030, according to the U.S. Bureau of Labor Statistics) fill you with anxiety, because it’s just one more thing to add to your overflowing list?

Fear no more!

Today I’m going to tell you how you can have it all – and with very little extra work.

Don’t get me wrong.  I’m not dissing a multi-generational strategy. If you can manage to treat different types of donors differently, you absolutely will get the biggest bang for your buck by so doing.  However…

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