Tag Archives: relationship building

The Knowledge Driven Charity Behoves Donor-Centric Fundraising

temples baganDonor-centric fundraising is all the rage. It makes a great deal of sense. Know who your donors are and why they are motivated to support a charity; ensure their gifts are allocated as requested; do the appropriate stewardship to show the charity understands their giving goals with supporting information. The final piece is the donor’s interest in how the charity runs. Is it efficient? Does it use its time and resources effectively? Is it able to meet its funding goals and are donor dollars well used?

We think this sounds wonderful until we look into how the charity is functioning at a more in depth level. Experience has shown us that many charities use their donor management system for receipting and usually this is tasked to a single individual. Fund development staff is often several steps away from any meaningful interaction with the data other than report requests.

This begs the question, how does a charity employ a donor centric approach to working with its donors under these conditions? A further observation has to do with staff turnover and the effect on information retention, pertaining to interactions with donors which would be used for future fundraising and stewardship support.

Running a charity begins at the top. It is incumbent on senior management to employ a methodology that ensures the best possible care of all types of information a charity needs to support a donor-centric approach to its valued donors. People can and do give their money anywhere they choose to, so what is the best way to influence donors and ensure their interest remains strongly attached to a specific charity? What would you like donors to know about how the charity functions in support of both its goals and those who support them?

Let’s begin with the Knowledge Driven Charity.  First and foremost it will address the capture of important data.  Standards exist which include everything from how to search to ensure a donor record is new to prevent duplication, to how the information is recorded to give maximum benefit to the donor and a fundraising team. Next is the gift and where it is positioned to show donor support. Values like ‘designated’ in the fund field provide little information, so how can the data recorded by appeal or campaign, be entered for maximum effect? This pertains not only to the charity but for the donor as well.

How charity staff work is equally important to a Knowledge Driven Charity. Taking too long to perform a task, being unable to access reports, not knowing how to pull a reasonable export, these are a result of training or the lack thereof. The idea training is expensive is a misconception. What is expensive is guessing how things work and making poor decisions on how to achieve work with charity data.

The Knowledge Driven Charity documents a non-profits’ best practices, describing for staff how to perform jobs recorded in easy to follow and maintain, point form. There is skilled labour in this marketplace so why let these skills leave without an appropriate capture. The time saved by staff and the recognition gained those by those who share their knowledge is of great value to an organization whether for profit or not.

Here’s an example. An engineer firm sent out field managers to check certain aspects of their jobs. One such manager had a check list. He used this list before every trip to ensure he had all the right tools to do whatever was necessary. The other field operatives did not and subsequently wasted company time with trips back and forth to the office to pick up what they forgot.  The solution was simple, the check list was now a company resource and the expectation was that all field managers used it to ensure no more unneeded trips, wasted time and more importantly unneeded cost. In the world of a charity, this might be a word processing skill or who to create a report or how to properly build an in memory campaign. Time is expensive and when it is wasted there is a consequence which impacts productive actions sidelined by waste.

Naysayers will tell you a knowledge approach would be difficult to implement, hard to maintain, too costly for a charity to consider. Our position is that it is not difficult because staff members become the champions of an improved workplace as stress is reduced and productivity soars.  A culture of Plan First is the rally cry. Time is freed up and accountability sets in as ones actions will affect another. ‘Too costly’ is what the charity is currently experiencing through costs associated with busy time.

Write these new methods into the documents that define the charity. Include in all job descriptions specific requirements with consequences to address any laxness that undermines the team.

Implement the Knowledge Driven Charity. Identify the charity’s commitment and share it with donors and funders. Be prepared for the Reaction and for the Results!

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Are you Struggling with a Mining Disaster?

Hanoi

You can’t Mine what you don’t have!

Successful fund raising is based on the relationships you build with your donors.  Some of those relationships may be more distant than others but still effective as you work to reduce the distance and engage long term support.  The use of a database to record gifts and information concerning donors is essential to a formal fund development program. There are no secrets and no short cuts to managing this high value resource which gives financial support to your organization. The donations received and knowledge gained, need to be managed as an entrepreneurial asset that requires well thought out policies supported by procedures and standards.

When you sit down to prepare your fund development plan for the next year and you want to include some projections, your success rate will be directly related to the quality and quantity of the data / information you have to work with.

The misfortune for many organizations is they have not managed their donor information with an eye on the present nor the future.  Spreadsheets used to record events, no profile data on high value donors, information kept in notes are a few examples of information found in a less than useful form.

What makes data mine-able?

Think of a bank. You are creating a bank account of information about how your donors have invested in your charity. Determining first and last gift, as well as accumulated donations, requires accuracy. One of the biggest perils is duplicate donor records where multiple entries for a given donor makes this information unattainable. Imagine contact with the donor only to have them point out inaccuracies. It’s not only a personal embarrassment but it exposes poor methods inherent in how the charity manages its business.

Complete information is essential. Surprising as it may be, poor data management is more prevalent than one would think. A basic tenet of successful fund raising is knowing what and how a donor has interacted with a charity. This only occurs through good recording methods and definitely not through staff memory.

A well run charity wants to know what donations have been gifted; which events donors have attended; if they have volunteered; did they spent money on auction items at an event; whether they donated an auction item; have they been an event sponsor; or a participant in a walk or a run.  The answer to all of these questions should and needs to reside in the donor database making data mine-able.

All members of the fund development team should participate so that transactions are recorded accurately and in a timely manner. Gift information, when well recorded provides further depth about a donor’s interest in a charity. For example, recording a donation as a “designated” gift, does not provide the same impact as using a fund account that establishes a specific interest. Knowing that a donor supports a particular program, service, facility or equipment purchase enables the fund development department to engage the donor with further support or interaction with the charity.  These activities build commitment and commitment is what we are looking for.

The Other Information that makes data mine-able will address donor characteristics. For example, type of business, special interests, family and friend relationships. These are just a few ideas that would benefit the charity. The possibilities are endless but they must be relevant to the charity. How this is collected can be part of an annual review of major donors. We have prepared forms that help to establish the basic information that is required when entering donors. Using a template to help fill in information is helpful.

Something as simple as a correctly formed address, phone number (s) and email give access to donors based on special criteria that a charity has captured. When we discuss capture for essential pieces of information we are not suggesting notes as a primary method. Notes are useful as a secondary resource but they DO NOT provide accurate access. Spelling errors, typing errors, different methods of saying basically the same thing are a real waste of time and make data unsearchable and results unreliable.

A system can be developed that is in the best interest of the charity.  This system supports data capture and management where staff members become accountable for the completeness and quality of what they record.

Staff, who are non-compliant, are a risk to an organization and marginalize one the charity’s most valuable assets.  Training is a further issue. Would you give a multi-million dollar asset to someone who thought they could figure things out or someone completely untrained or would you prefer competence as the preferred option? It’s always interesting to find out that training has been all but eliminated from an annual budget. By guess and by golly, does not make for a successful outcome! Boards and senior management need to support training and skill sharing, if a charity staff are to work effectively.

If you choose to have mine-able data, it will be up to you and your organization. Poor donor data management provides low quality data and yeilds poor or mediocre results. It erodes staff time and diminishes morale as the same problems crop up again and again.  Hands-off managers, procrastinators, and those who are too busy, should never be given the responsibility for managing a charity’s financial future.

If you want mine-able data start by looking at how you are managing what you learn about your donors and how you record their interactions with your charity. It’s the responsibility of the charity and its staff to manage; the database used is just the tool!

If you would like sample profile forms, please email your request to ease@batschgroup.com.