Deep-Pocket Donors

Last month (yes I know...I'm so behind in what I've been meaning to write about...), I listened to a webinar conversation between Bob Ottendorf, the CEO of Guidestar, and Sean Stannard-Stockton, the CEO of Tactical Philanthropy.

It was interesting to listen in as these knowledgable guys talked about their experience with "deep-pocket" donors and what they've found such people look for when they give. It doesn't really have anything to do with my current job, but donors are how most nonprofits survive and so it was still interesting.

One portion of the discussion was about reasons why deep-pocket donors give.

Many people think they are motivated to give solely for tax breaks or other self-serving reasons, but a research poll (a Bank of America Merrill Lynch Study by the Center on Philanthrophy at Indiana University) actually shows that most report they give for emotional/emphathetic reasons, and say they need to feel convicted that what they are giving will make a difference.

Hence, charitible appeals need to appeal to both the head AND the heart. A long-term donor is going to be someone who has both a passion for your mission as well as an impression of your project has being effective, with a high social return on their investment.

According to the poll, 81.2 percent say they are motivated to give in order to give back to the community, 70.7 percent support the same cause or organization annually, 70.4 percent give for social beliefs, 51 percent for religious beliefs.

Get this: 48.1 said they gave because they were ASKED.

Only 5.3 percent reported giving for public recognition or business interest and 2.7 percent for career interests.

Another big thing they talked about was the importance of nonprofits being transparent so that donors feel comfortable working with them. In this age of "Google-ization," nonprofits can no longer be the sole gatekeepers dispensing information about themselves. Information and opinions -- good or bad -- can be shared, sorted and mixed by anyone, so it's important for your agency to be transparent in addressing any concerns that arise.

Effective nonprofits:
1) Base programs on research about what WORKS
2) Actively collect information about program results
3) Systematically anayze this information
4) Adjust activities in response to new information
5) Operate with absolute focus on producing results

The bottom line? Organizations win by doing great work, being effective, and maintaining strong donor relationships.