Why a Donor Centric philosophy?

Why a Donor Centric philosophy?  The world has changed over the last several years. It just isn’t the world we grew up in and the game has changed – globally and domestically. Putting the donor at the center of everything we do is of critical importance. Their choices have increased, their expectations have increased, and their access to information about your nonprofit has increased. We can no longer treat our supporters as a number or worse as an ATM money machine. They need to know we care about them as a person and that we count on them not just for financial support but as true advocates of our cause.

The Customer is King!  Although this phrase was coined by John Wanamaker almost one hundred years ago very few organizations have been able to adopt it as a driving force. According to a study Accenture conducted in 2000, an entire organization must become obsessed with what the donor wants because there is a direct correlation between excellence in a company’s overall interaction with its customers and the overall financial performance of the company. Wow – that’s quite a statement. If we become obsessed with a donor and their involvement with us our financial performance increases.

When you’re operating in a commodity and/or extremely competitive industry, you have two choices. Either create a new/innovative product or service that takes you out of commodity/competitive status, or differentiate on service.

I propose that you differentiate your nonprofit based on exemplary service.

An overwhelming 90% of donors said that the criterion, “Your gift will be used effectively and efficiently” is very important to them. (Accountability). This is followed by the organization’s effectiveness overall (83%), its effective use of past gifts (81%), (Results). and its use of the gift to meet an identifiable need (78%). (Cause). (comments/statistics are from a Campbell Research Study)

We must realize that:

  • We are totally reliant on the donor
  •  Loyal donors are cultivated in an environment of open and honest communication
  • The donor desires a two way relationship that is fruitful not a continuous barrage of direct mail packages
  • The donor expects results for their money which means we have to inform them what we are doing with the funds we raise
  • The donor must feel the organization is reliable and using the funds raised appropriately; that we are squeaky clean
  • The donor wants to believe they “belong” to something meaningful; they must feel connected to you

Adopt a simple plan to create a donor-centric work place. The employees and donors are equally important to this strategy. It has been proven that loyalty to the company by both the donor and the employee make for a winning combination by increasing market share and profits.

1.        Internal customer – the organization must meet the needs and expectations of its employees; the employee in turn must understand and accept the donor-centric philosophy and accept the mission and values of the organization.

2.        External customer – meet the needs and expectations of our donors; we must understand and accept the donor’s needs and expectations. Listen, respect, and serve the donor. Employ an outside-in viewpoint. What is the donor’s perspective?

3.         Constant improvement – do what we did yesterday better today; develop a winning culture full of excitement, commitment to the cause, personal entrepreneurship and personal empowerment.

An Internal Audit – first step:  Although donor-centricity is a simple concept to envision it is difficult to implement when there are entrenched methods of doing business. You should take immediate steps to:

  1. Re-examine how business is conducted – review all facets of people, processes and technology
  2. Ask a lot of questions about how your organization acknowledges gifts and stewards the donor
  3. Avoid the status quo and a culture of mediocrity
  4. Challenge the employees to be donor-centric
  5. Empower the employees to make informed decisions that will benefit the organization and enhance the relationship with the donors
  6.  Set high goals and expectations
  7. Develop a winning culture; every job and every person can make a difference at every level of the organization; Instill performance, excellence, service measurements and expectations
This entry was posted in FUNDRAISING by Eric Streiff. Bookmark the permalink.

About Eric Streiff

Prior to entering the nonprofit sector Eric Streiff spent over twenty years working as a marketing and advertising professional in New York City. In addition to board leadership roles for various nonprofits and driving growth, change and innovation at two large nonprofit organizations, he is also a frequent industry lecturer and has taught marketing and advertising classes at New York University, Baruch College, and The Fashion Institute of Technology in New York City.

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