Note: This guest post from Megan Amundson describes the case for more consistent donor communications that emphasize the donor’s impact. For a different (and useful) perspective, check out Community-Centric Fundraising and Nonprofit AF.
When I talk with leaders of small nonprofits, they ask me how to build a major donor program.
What are the tricks? What’s secret sauce that attracts philanthropists?
They never like the answer – because there isn’t a trick.
If you want to attract investment from philanthropists, you need a strong communications plan that regularly reports the impact of their gifts.
It’s all about impact
When you demonstrate impact – how investment creates change – donors will give. Show them their impact over and over, and donors will engage.
This process takes time to build and discipline to maintain.
Let’s call this impact reporting. You can use your impact reports to engage anyone: yes, major donors, but also other donors, foundations, volunteers, board members, staff, program participants, peer organizations, and the community at large. With consistent communications, everyone can be energized and engaged.
If you’re wondering how to create an impact reporting plan, here are four tips.
1. Make it visually interesting
Show your impact visually rather than relying on text. People pay attention for about eight seconds; grab them with something visually appealing.
Too much text? People won’t read it. Too much data? You’ll lose them in the numbers. Include just enough story and just enough data to prove your impact.
Perhaps you’re not the best person to create a graphic representation of your organization’s impact. However, the world is filled with amazing design professional – and they are worth the cost.
2. Numbers are subjective – choose good ones
What sounds like a big number to you – because you understand the work involved – may feel really small to someone outside the group. Any numbers you choose must resonate with a complete outsider.
Assume that everyone who receives this impact report has no idea how you do the amazing work you do. They don’t understand the day-to-day efforts of your organization, and they don’t realize how much staff time or resources it takes to achieve your impact.
Always step back and look at your numbers objectively. Then incorporate the ones that are likely to get attention.
3. Include language that acknowledges the role of donors
It can feel awkward, but you need to express how your donors and supporters help to create your nonprofit’s impact.
Many donors want to feel like they’re part of the organization and therefore helped make a difference. Frankly, your donors do have an impact; their financial support makes the work possible. Your language should reflect that.
When donors feel impactful through their gifts, they are more likely to give again. And again. Make sure that whatever you send expresses their impact: that they are part of the team, and that everyone on the team (staff, volunteers, community members, program participants, donors, etc.) plays a critical role.
4. Report back frequently
Some skilled fundraisers believe that major donors should receive impact reports quarterly. That sounds great – in a perfect world.
At the small nonprofits I ran, we never achieved that goal. It’s a lot harder than it sounds.
I’ve seen great results from sending reports three times per year. Twice would probably work, although to diminishing degrees.
My strong advice: once a year isn’t enough. Donors will forget about you.
Aim for four per year and give yourself a break if you end fewer. Don’t let the perfect be the enemy of the good.
What about cost?
When I embarked on this strategy — sending quarterly pieces, professionally designed, and printed in full color – cost was concern for both me and the board. After years of experience, I found it was worth every penny.
Today, we are all communicating differently. Distributing impact reports in some combination of print and online mediums is likely to be most effective; you want to meet people where they are. It’s worth experimenting with formats and seeking feedback from your audiences.
You won’t see a return on investment from your first report. You’re unlikely to see it during the first year. However, by consistently reporting on your work, you’re training your supporters to look for the impact you (and they) are making in the community.
This process will help you creatively define organizational success. Over time, you’ll help donors and others become increasingly engaged and excited about the impact they have by participating in your work.
Your goal: Create culture of impact for your organization. That’s a culture people want to be a part of.
It takes time to see results. If you do this work consistently, you’ll raise more money.
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