Five Strategies That Suppress Donor Giving (2024)

“How can something so good and so effective actually suppress giving?” the development director asked. “I mean, everyone knows that these things work!”

That was the reaction of a seasoned fundraising professional to my comments that five commonly used fundraising strategies actually suppress giving. Here they are:

1. The Annual Fund

This is a commonly-used approach to fundraising in health and education non-profits where donors are asked to “give their annual gift.” And most of the donors do just that. They give their annual gift. And that’s all they give. The rest of their charitable giving goes to the other 4 to 7 non-profits they’re interested in.

The annual fund is the scourge of fundraising. It’s a deeply flawed strategy. Jeff and I have repeatedly urged fundraising leaders and managers to get rid of it so that donors can be encouraged to give to those programs and projects that interest them as frequently as they want to. Most donors have more than one annual gift in them per year. In fact, the average donor gives 2-4 times a year. Ask them to give once, as the annual fund does, and you suppress their giving to your organization.

2. Pledges

A pledge is an important fundraising strategy for all non-profits. It provides regular revenue, motivates the donor into the habit of regular giving, and provides a basis for upgrading and retention. Where it goes wrong is when the informal and unwritten “contract” with the donor, related to the pledge, is oriented only to the pledge. In other words, “give X a month.” And that suppresses giving.

Here’s why. Many donors, when they’re presented with a giving opportunity that matches their interests and passions, are told that “all they need to do is give X a month” – so they do just that. They give once a month, or whatever the agreed-upon frequency is, and they don’t participate any further than that.

Many donors who are enrolled in a pledge will give more IF the “contract” they signed up for set the expectation that “from time to time we will present you with additional opportunities that match your passions and interests.” Setting this expectation allows for you to talk to the donor about doing more for the program or project they’re really interested in. By not setting up your pledge programs this way, you’re effectively suppressing giving with a number of your donors.

3. Membership Programs

Much like a pledge, membership programs suppress giving when the expectation with the donor is essentially set up as “become a member and that’s all that needs to be done.”

4. Giving Clubs/Societies

Giving clubs and societies all have an “entrance fee” or amount required to belong. It could be $5,000 a year or $10,000 or more. The President’s Circle may be $50,000 a year or $100,000. All of these are impressive amounts. But they cut off the opportunity to engage the donor in additional giving in areas that interest them.

5. Campaigns of All Types

And then there are campaigns. We have seen so many campaigns that are characterized as “widely successful” where donors give impressive one-time gifts and that’s the end of the story. The one-time gift comes in and no effort is made either on the front-end solicitation or on the back end to frame the relationship with the donor as an ongoing one vs. a one-time event. Giving is suppressed.

In all of these situations, the donor gives less than they could. The frontline fundraiser fails to frame the relationship as an ongoing relationship, one where the focus is on what needs to be done month after month in the area the donor is interested in. As a result, the conversations and actions zero in on the one-time transaction or the regular transaction. Ultimately, any focus on the ongoing needs of the organization to address the societal need the donor is interested in gets lost.

Remember this: a donor has specific interests and passions. They are more concerned with getting something done than they are with watching the frequency of giving. Give them a reason to get something done, that they want to get done, and they’ll give more frequently.

Richard

This post originally appeared on the Passionate Giving Blog on May 28, 2021.

Related Posts

  1. 8 Ways to Serve Your Multi-Year Pledge Donor Outrageously

    February 27, 2017

  2. What Would You Call the Annual Fund?

    March 13, 2017

  3. Don’t Neglect Your Major Donors Who are Mid-Pledge

    February 1, 2023

Five Strategies That Suppress Donor Giving (2024)

FAQs

What is donor strategy? ›

A major donor strategy is a strategy designed to establish a long-term relationship with a major donor so that they continue to provide a significant amount of funds to your organization. What “significant” means to your nonprofit will be different from other nonprofits.

What is the donor pyramid of fundraising strategies? ›

In a classic donor pyramid model, donors are ranked by their giving and engagement levels. Prospective and new donors are at the bottom, with planned, lead, and major donors at the top.

What is a major donor strategy? ›

Major donor fundraising strategies have three key components: threshold, tools, and team members. Before your nonprofit can start soliciting major gifts, you need to define what qualifies as one.

What is the difference between donor retention and donor acquisition? ›

Regarding fundraising strategies, two terms are often coined – donor retention and donor acquisition. As the name suggests, donor retention refers to the existing donors who continue to give, whereas donor acquirement to acquiring new donors who are willing to give.

What is the donor relations strategy? ›

This means that a donor relationship isn't a one-off activity, but rather a long-term commitment to regular touch points and engagement. Donor relationship management refers to tracking donor outreach, preferences, gifts, and more to build a steady relationship that both donors and nonprofits can count on.

What are the individual giving strategies? ›

Individual giving strategies are varied and diverse but most often include annual membership or annual fund programs, major gift programs including family foundation and donor advised fund strategies, monthly giving programs, planned giving programs and capital campaigns and other special gift initiatives.

What are the 5 T's of fundraising? ›

Charitable giving and philanthropy are often associated with three levels of engagement: time, treasure, and talent. However, there are two more T's that are equally important: ties and testimony.

What are the five strategies for fundraising success? ›

In section one of this well-organized book, Warwick outlines his five strategies: Growth, Involvement, Visibility, Efficiency, and Stability (or G.I.V.E.S).

What are the 4 C's of fundraising? ›

Clear, compelling vision. Consistent communication. Competent follow-up, Champions.

What is a donor engagement strategy? ›

Your donor engagement strategy outlines exactly how you'll reach out to donors and the KPIs you'll track to measure their engagement with your organization.

What is the good donor initiative? ›

The Good Humanitarian Donorship (GHD) initiative is an informal donor forum and network which facilitates collective advancement of GHD principles and good practices.

What is the new donor acquisition strategy? ›

The best donor acquisition strategies don't just look for any new donors. Instead, they target donors with the potential to be highly invested, loyal supporters. This doesn't necessarily mean you should only search for major donors (although you should devote plenty of time and effort toward major donor fundraising!).

What is donor segmentation strategy? ›

Donor segmentation is the process of separating your donor base into subgroups, or segments, based on qualities they have in common (think: geographical location, age, education level, donor status, etc.). Segmenting donors allows organizations to send more personalized communication, which all donors appreciate.

What is donor diversification strategy? ›

What Does it Mean to Diversify Your Donor Base? Diversifying your donor base means expanding your reach to different ethnic groups and demographics, targeting as per different giving abilities, and ensuring that your messaging resonates with a wider audience.

References

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