In recent years, phrases like “culture of philanthropy” and “donor centricity” have hit the field by storm, often with budget-breaking strategies for implementation and little information about where to start when one may not be a decision-maker. Thus at the Johnson Center for Philanthropy's Brown Bag Lunch & Learn Series, I facilitated a discussion about the importance of donor relations when it comes to long-term fundraising success and ethical fundraising practices. I also talked about the role of fundraising in the context of arts and cultural organizations. The goal of the event was for participants to walk away with easy to understand ideas for their own organizations and volunteer roles. I discussed: Donor relations and fundraising from a historical perspective; How to integrate engaging donor relations practices into your fundraising program; Fund development challenges specific to membership-based organizations, arts and cultural organizations, and organizations that frequently request general operating funds.

1. “BUILDING STRONGER DONOR
RELATIONS SYSTEMS”
Colin D. Cumming, M.P.A.
Annual Funds Manager
Frederik Meijer Gardens & Sculpture Park
Brown Bag Lunch & Learn Series
August 31, 2016

2. WHAT DO I DO? WHAT HAVE I DONE?
1. I’m currently the Annual Funds
Manager at Meijer Gardens
2. I’ve been working as a
fundraiser for over three years
3. Along the way, I’ve taken the
time to get to know donor
relations
4. “Donor-Centricity,” “Culture of
Philanthropy,” “Relationship
Fundraising.”

3. LEARNING OBJECTIVES
1. Understand donor relations and
fundraising from a historical
perspective
2. Understand how to integrate
engaging and authentic donor
relations practices into your
fundraising program
3. Understand Fund Development
challenges and opportunities specific
to Membership-based organizations
and arts and cultural organizations

4. HISTORY OF NONPROFIT
FUNDRAISING: WHERE IT HAS BEEN

5. WHERE IT HAS BEEN: WHAT WE KNOW
•Over the last two decades, the number of nonprofits has grown
exponentially.
•In order to be successful in fundraising, we have to acquire new
donors.
•Individual donors are motivated to give for a wide variety of
reasons.
•Donors give relative to their means.
•Fundraising is not about raising money.

6. WHERE IT IS: 2016 FUNDRAISING
EFFECTIVENESS REPORT

7. KEY FINDINGS AND WHAT THEY TELL US
•Nonprofits with annual revenues of $500,000 have
seen a 10.7% increase in what they raised.
•79% of increased revenues came from news donors.
•The retention rate of new donors is 29%.
•Something is causing donors to not make a second
gift to an organization they once deemed worthy.

8. WHERE IT IS GOING: DONOR LOVE

9. WHERE IT IS GOING
•“Triggered email can deepen
your relationships with online
donors” – Future Fundraising
Now
•“The Future of Fundraising Is
Peer-to-Peer” – Philanthropy
News Digest
•“Does Your Nonprofit Need A
‘Chief Customer Officer’?” – the
Agitator

10. RETENTION = $$$

11. BEYOND $$$
1. There is a dollar amount attached to treating your donors well.
2. Donor relations and retention allow for steady and predictable
growth.
3. As nonprofits we have a commitment to represent the communities that
we serve.
4. Once a donor hasn’t given for three years, their likelihood to give
again slips to 2%.

12. BEST PRACTICES IN FUNDRAISING
AND DONOR RELATIONS

13. WHAT ARE DONOR RELATIONS?
­ “Donor relations is the comprehensive
effort of any nonprofit that seeks
philanthropic support to ensure that
donors experience high-quality
interactions with the organization that
foster long-term engagement and
investment.” (Association of Donor
Relations Professionals)
­ Many nonprofits work with one, two, or
no full-time staff dedicated solely to
fund development.

14. ACKNOWLEDGEMENTS
I. It must be prompt
II. It must reference the
campaign, fund, appeal
to which the donor gave
III.It must be personal
IV.It must contain accurate
information
V. It must meet IRS
standards

15. DEMONSTRATING IMPACT
•Print newsletters
•E-blasts
•Send an introduction
video
•Send a personal email
with a testimonial
•Impact Report
•Annual Report

16. DONOR COMMUNICATIONS AND AUTHENTIC
‘TOUCHES’: HOW MUCH IS TOO MUCH? TOO LITTLE?
•“As cultivation strategies, printed materials, and
mailings are never enough. Personal contact is
needed.”– Stanley Weinstein , ACFRE
•The general rule of thumb is that there should be 7
touches for every gift made
•What is your ratio? Does is vary among
constituents?

17. EXAMPLE: HUMAN SERVICE AGENCY WITH TWO DIRECT
MAILINGS A YEAR: ONE IN DECEMBER; ANOTHER IN JUNE
Dec: Thank
you letter
Jan:
Monthly e-
newsletter
Feb: Thank
you phone
call
March:
Monthly e-
newsletter
April:
Annual
report
April:
Monthly e-
newsletter
May: Print
newsletter
June: Ask

18. RECOGNITION
o Donor Wall
o Campaign Signage
o Special Events
o Swag
• Magnets, coffee cups, bags,
photographs, postcards, etc.
o Online Honor Rolls and Digital
Signage
o Honor/Memorial Program

19. DONOR CENTRIC REPORTING
1. Giving Pyramid Report
2. Consecutive Donor Report
3. First-Time Donor Report
4. Donor Retention Report
5. Donor Giving Channel Report
6. Lapsed Donor Reacquire
Report
7. Donor Increase Report

20. MAXIMIZE YOUR DONOR DATABASE

21. WHAT CAN THIS LOOK LIKE?

22. SOCIAL MEDIA
STEWARDSHIP

23. YOU ARE NOT ALONE
•Board of Directors
•Communications staff are
‘copy’ masters.
•Program staff often have
the best stories.
•Volunteer managers often
know more than most what
motivates people to give.

24. DONORS RELATIONS DEMONSTRATED

25. ACKNOWLEDGEMENTS

26. What the letter does well:
1. Immediately thanks me for
making a gift
2. Links the gift to me personally
3. References James Madison
College and what it’s all
about
4. Provides contact information
for questions
What may be missing:
1. Acknowledge me as a alumnus
of James Madison college
2. Have a personal signature or
note – we’ve shared a beer
3. Quality of letter

27. What the letter does well:
1. Thanks me immediately
2. Addresses the type of gift
that I made and how it will be
processed
3. Provides contact information
4. Provides live updates of what
the fund is accomplishing right
now
What may be missing:
1. It was received well over a
week after I made the gift
2. Offering to discontinue
donations in the body of the
letter.

28. Nothing beats a personal note!

29. DEMONSTRATING IMPACT

30. RECOGNIZING DONORS

31. CREATING A SENSE OF COMMUNITY

32. HALL OF SHAME

33. THE DONOR RELATIONS MINDSET
1. Thanking every single gift
beyond an acknowledgement
2. Signing every thank you
letter personally with a short
note
3. In the pipeline: donor impact
report, storytelling and
sharing via email.

34. MEMBERSHIP BASED ORGANIZATIONS

35. MEMBERSHIP BASED ORGANIZATIONS: THE
DIFFERENCE, THE CHALLENGE, AND THE OPPORTUNITY
•With membership, there are usually tangible benefits involved.
•Donors choose to be a part of an organization.
•Donors can be solicited repeatedly.
•The Membership team wants people to upgrade their due; The
Fundraising staff wants people to contribute in addition to their
membership dues.
•Membership and development needs to work together.
•There is advantage!

36. ARTS AND CULTURAL
ORGANIZATIONS

37. ARTS AND CULTURAL ORGANIZATIONS MATTER
•We aren’t housing the homeless.
•Arts often make divisive social commentaries
•The grass is always greener on the other side.
•However, 3.2 percent, or $504 billion, of GDP in 2011 was attributable to
arts and culture.
•You don’t need to excuse your cause.
•“For those who love them, the arts are not frivolous. They’re not extras or nice-
to-have. They’re what gives life depth and meaning. They’re how people come
together – to wrestle with big questions, to understand the human condition, to
expand their worldview.” – Hands on Fundraising

38. IN CLOSING…
•You’re doing a good job!
•What matters more: money
or time? Something else
entirely?
•Let’s work ourselves out of
the job…kind of.

39. RESOURCES
Local:
Association of Fundraising Professionals West Michigan (AFPWM); Young Nonprofit
Professionals Network of Grand Rapids (YNPNGR); The Johnson Center for
Philanthropy at Grand Valley State University…of course.
National:
Association of Donor Relations Professionals (ADRP); the Council for Advancement and
Support of Education (CASE); The Chronical of Philanthropy; Indiana University Lilly
Family School of Philanthropy
Excellent fundraising blogs:
Donor Relations Guru; Veritus Group: Passionate Giving Blog; Certified Fund Raising
Executives (CFRE): Leading Edge

40. QUESTIONS? COMMENTS?
CONCERNS?
Email: cummi165@msu.edu
Phone: (248) 705-6172
Twitter: @ColinCumming