November 28, 2017
BY: EMILY WELSH
Second last week and I am sad to see these last few fly by so quickly! I have found these last few classes to be extremely fascinating; the strategies, concepts, practicalities and theories surrounding money, income and fundraising for museums have been unexpectedly enthralling.
This past class was no exception. Yesterday we focused on donor motivations and relations, answering a variety of pressing questions:
Why do people give?
How do we form relationships with donors?
How do we ask for money?
How do we maintain the museum-donor relationship?
Class Insight
Matt Rovner's study report, titled "The Next Generation of Canadian Giving: The Charitable Habits of Generations Y, X, Baby Boomers, and Civics", was highlighted in this class. The study's findings highlight the charitable characteristics and habits among four generations: Generation Y, Generation X, Baby Boomers and Civics. The information contained within the report is incredibly useful for getting a sense of the differences between generations on how much they give, the methods they use to give and generally to whom they will give. For example, younger generations will generally give more thought to where they give their money; they will research the institution, see if the cause matches their own values, and give to institutions who are transparent and accountable for the money they receive. This is key information for understanding how we should be communicating with this donor base! We need to educate them about our institutional mission and provide clarity on where the funds are used and the benefit they specifically provide.
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| Understand your potential donor's charitable characteristics so you can communicate the information they need in order for them to hit the donate button. Source. |
Donors are motivated to give for a variety of internal reasons (these will be discussed in the reading insight below) but key motivators are also linked to the institution itself. Those with direct experience with the institution, such as volunteers, and those with high affinity, such as board members, will be motivated to give as they are familiar with, understand and believe in the causes the institution strives to achieve. These individuals can also motivate others in their social circles to donate, thus increasing the size of your donation pyramid. Other donors may not be as familiar with your work and thus educating them is key. However, don't approach them with need as your primary reason for why they should donate to your cause. Donors give to winners, not losers. They want to give to organizations that are the best. Thus, develop your pitch with emphasis on the good work you complete and the benefits you achieve for your publics. Show them that you will do great things with their money!
Where can you find potential donors? Other than using your contacts (such as volunteers and board members) to reach new audiences, searchable online databases provide information on individuals and corporations. For example NOVAsearch is an online database of charitable foundations, individuals and corporations for the United States and Canada. It is free to search the foundation database but a fee is required to search individuals and corporations.
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| Put your detective hat on! Try multiple methods for finding your potential donor. Source. |
Reading Insight
Chapter three of Cilella Jr.'s book, Fundraising for Small Museums: In Good Times and Bad, focuses upon donor motivations and the methodology for donor relations.
Donor Motivations:
Donors give charitable funds for a variety of reasons:
-sincerity/help those in need
-immortality/name preserved by donation
-government incentives
-guilt/corporations who have guilt for their profitable activities/improve image in public eye
-peer pressure/not be out-done by other individuals or corporations
-religious beliefs
Cilella Jr. also provides an excellent discussion of items or tactics which impress donors and those which put them off.
Donor Relations:
Forming and maintaining a relationship with your donor is an ongoing cyclical cycle. Cilella Jr. (2011, p. 59) explains:
"solicitation must always be preceded by a healthy dose of cultivation and followed by an equally robust serving of recognition."
Cultivation consists of two stages, identifying potential donors and educating them. The former is fairly straight forward but the reasoning for the second is less obvious at first glance. The education stage is when you communicate to prospects your institution's mission, work and benefit in the community. You need to have informed prospects about why you deserve what you are asking for, before you actually ask them. This will cost money! In order to make money, you are going to need to spend some. This stage may take the form of parties, banquets, brochures, lectures, or conversations.
Solicitation is the stage in which you ask for the money. Present your case clearly, especially, as mentioned above, the reasons for why you deserve the money, what the money will be used for and the benefit the donation will have. Don't approach a donor as a beggar AND most importantly don't forget to ask for the money! Do not be vague or leave it up to the donor to infer you need their support. Ask for a specific amount of money.
When you receive a donation, the final stage is recognition. This must be a sincere and genuine gesture of thanks. The level of recognition you give will depend on the amount of funds you receive. In all cases, DO NOT forget to say thank you and always be prompt with your thanks. If giving a gift of recognition, make sure it is not extravagant; donors do not want to feel like you are using funds frivolously. Before making any public announcements of recognition, make sure it is desired by the donor.
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| Always say thank you, sincerely though! Source. |
However, recognition is never the end. These three stages are found in a cyclical process. Once recognition is complete, it is your responsibility to maintain the relationship with the donor. Begin the cultivation process again (of course ignoring the identification step) and keep the donor up to date on your institution's activities. It will cost your more to to try to fix a relationship than to maintain one.
Happy Planning!
Resources
Cilella, S. G. (2011). Stewardship: Managing the donor relationship or the continuity approach. In Fundraising for small museums: In good times and bad (pp. 55-84). Lanham, MD: AltaMira Press.
Rovner, M. (2013). The next generation of Canadian giving: The charitable habits of Generations Y, X, Baby Boomers, and Civics. Retrieved from http://www.hjcnewmedia.com/nextgencanadiangiving2013/