“A no-effort relationship is a doomed relationship, not a great relationship. It takes work to communicate accurately, and it takes work to expose and resolve conflicting hopes and beliefs. It doesn’t mean there is no ‘they lived happily ever after,’ but it’s more like ‘they worked happily ever after.’”
— Carol Dweck, author of Mindset
In these days of outsized giving when fundraisers focus heavily on capturing high-end donors, the value of mid-tier donors often gets overlooked. This is especially true when the giving stops. To ensure your organization’s continued success, it’s important to understand why you lose your midlevel donors.
As a family-foundation donor who moves in and out of relationships with grantees, I would like to see more organizations conduct a thoughtful “exit interview” when a donor stops giving. Such a discussion requires work by both parties, and it’s more difficult if you have a disgruntled donor. But the payoff from the effort can be great. Years ago, one organization asked me for sincere feedback when I stopped giving, without pushing me to renew my donation. I was so impressed by the tenor of the conversation that I eventually returned as a repeat donor.
Conversely, I was disappointed with a nonprofit with whom my foundation had a long-standing relationship. We had made a significant in-kind gift, yet the advancement staff seemed to have a sense of entitlement and was unresponsive to emails. They gave me a clear signal that their time was more important than mine, and I couldn’t shake the feeling that I wasn’t a big enough donor to merit their regard. I intended to take my problem to the top, but life got in the way, as it often does, and the impulse was forgotten.
Months later, a letter arrived asking us to renew our donation at the national council, or highest, level of giving. We decided not to renew our gift. I waited to hear from the organization, thinking this would be a perfect opportunity to clear the air and move forward. No one followed up. The organization’s inertia signaled that we were not valued donors, and seemed to indicate that the group did not need our further support.
Broader Implications
There may be an even greater consequence to this kind of complacency. Many donors use a midlevel donation to explore the possibility of bigger gifts; organizations should remember that a midlevel donor could become a top-tier one.
Ron Schiller, founding partner of the Aspen Leadership Group and the Philanthropy Career Network, says his personal experience and hard data confirm that big donors generally evolve from a pool of donors who gave smaller amounts over decades of careful nurturing. Schiller says a good fundraiser “facilitates generosity” by treating all donors as vital members of the community; that, in turn, generates good will and retains financial support. Even more important, Schiller says, “while donors always appreciate gratitude, they really want to know about the impact of their dollar.
Donors leave for many reasons that are beyond a nonprofit’s control: a shifting of goals or mission, a sense of restlessness to support a new cause, or a change in financial circumstances.
Things change at nonprofits, too. Sometimes a leader or staff member moves on and a connection is lost. However, if a nonprofit does something vexing or the donor believes it strayed from its mission, it is important for nonprofit leaders to respond. First, they should realize that most donors know systems can fail and that humans are fallible, and diplomatically try to learn why the relationship faltered. Then, they should then use any constructive information to move forward.
“Truly generous people don’t tend to be vocal about their grievances when they think an organization is in error,” Schiller says. “Instead, they drift off and pull their funding, rather than confront the situation head on. It is up to the nonprofit to do the sleuthing.”
Tone Is Important
So how do you ask for that exit interview?
1. Write and thank the donor for his or her support and ask if they would be willing to do a brief interview by phone or email so you can get constructive feedback on the efficacy of your organization. Now is not the time to mention money. It is lovely, and rare as a blue moon, for a donor to receive an email in which a nonprofit is just checking in, rather than an email that reads like a notice for an overdue car payment — with a “show me the money” kind of tone. If the donor does not respond after two or three well-timed messages from you, at least you made the effort, and your organization will come off looking professional and with a standard of excellence. Perhaps you could try again a year or so later by inviting the donor to an event as your guest — or ask another donor to make the move.
2. If the donor does respond, keep your questions brief. Naturally, the list of questions will be specific to your group, but always ask for the donor’s perspective on how to improve the organization. Most donors have professions outside of their charitable interests and can offer singular expertise. This is potentially important information for you.
3. Listen and don’t be defensive, even if you think the donor’s perception is warped. This kind of response, too, is valuable. Don’t forget to ask if they want to continue hearing from you via newsletter and emails. That way, you can still engage the donor if they say yes.
4. Follow up with a brief thank you for their time. A bit of graciousness is the best way to keep the donor looking over her shoulder.
Finally, making the effort to really see and listen to donors is never a mistake — whether they are coming or going.
Isa Catto welcomes suggestions for future topics. She is an artist and executive director of the Catto Shaw Foundation and is writing a book about inheritance.
