10 Reasons Why Most Major-Gift Programs (Stink)! — Nos. 8-10

(Editor's note: Veritus Group co-owner Jeff Schreifels started the Passionate Giving blog last month, and he's already posted some pretty interesting stuff — like his "10 Reasons Why Most Major Gift Programs Suck!" Here are Nos. 8-10. Click these links for Nos. 1, 2, 3, 4, 5, 6 and 7.)

Reason #8 — Most nonprofits are NOT donor-centered
I don't think there are two words that are spoken more often in our industry than "donor-centered." Or is that just one big word? Doesn't matter, you hear it all the time. I hear it at every conference, in a ton of articles, blogs, etc.

In fact, I think we talk about it so much that it's lost its meaning … its power and its punch. Are you sick to death of hearing about it? I know I am.

But, let me tell you something, the reason we keep hearing about it is because most nonprofits don't understand it and they most certainly don't practice it. It's not part of their DNA or mission. When was the last time you read a mission statement from a nonprofit that had anything to do with donors?

Folks, it's time we move from viewing donors as a means to get our "mission" done to realizing that they are part of our mission. I believe that when we see an organization really grasp the meaning of being truly donor-centered, the major-gift program will grow exponentially.

So, what do I mean by this? Everyone who is employed by or volunteers for the nonprofit is indoctrinated (yes, I would use that strong a word) to understand that donors are central to the mission and are treated just as importantly as your programs, projects and services. And I mean from the janitor all the way to the chair of the board. This means the culture of the organization has to completely change because I haven't seen a nonprofit yet that totally understands this.

I want to see a mission statement that includes donors. This is important because what's written down will guide how you act. Throw out worrying about ratios and overhead costs. I want to see nonprofits report on outcomes, results and impact. This is really what donors care about. The nonprofit world has been doomed by having to somehow adhere to ridiculously low overhead to appease the "accountability police."

In my opinion this has clouded how we do our business. I want nonprofits to hire great people who know how to get stuff done. If we focus on impact rather than ratios, all the stuff the "police" are worried about will get taken care of.

I want to see half of a nonprofit's time and energy focused on donors and caring for them. A nonprofit's role in society is to be a bridge between the donor and the need. In the past this has meant that the road is usually one way, from donor to need. But today, this means an equal amount of traffic back and forth. Remember, you're having a direct impact on the life of your donor as much as you are on the need you are trying to meet. This is a radical new thought in how nonprofits act today. But, so was real customer service in the for-profit world 30 years ago.

Nonprofits need to grasp what the for-profit world has understood for the last few decades now; that "delighting your customer (donor)" will pay off in the end. Spending more time and energy and hiring great and more people to serve donors will pay off in the long run.

Have a great product. Are your programs and services the best? Donors want to invest in effectiveness and success. If your program is not the best, why are you doing it?

All that other stuff — thanking, reporting back, honoring, involving, asking donors — will all happen if these five points are taken care of. I feel we spend so much time talking about these basic things that we don't look at the bigger issues preventing these "little things" from becoming part of our daily practice as a nonprofit.

Finally, be inspiring! Donors want to be inspired. Donors give because it feels good. I don't care what your nonprofit does. If you can inspire people, you will see more support.

So, who's up for the challenge? Who wants to change the culture of our nonprofits? Who wants to inspire? Let's do it!

Reason #9 — We don't tell donors how they made a difference
This is another one of those "no brainers" that we keep failing to do right. It's amazing to me when I present the slide below everyone seems to understand it, but few are actually practicing it.

This graphic shows a typical communication cycle we like to implement with an major-gift officer's caseload. Notice the YMAD? That is you made a difference!

Most nonprofits do a great job of identifying problems and asking. Some are even pretty good at thanking, but most have a very hard time reporting back and specifically telling the donor how they made a difference. I cannot stress how critical this is.

Let me tell you a true story. I won't tell you the name of the nonprofit, because, quite frankly, it's too damn embarrassing. But, I tell it because it's an all too typical occurrence. A few of years ago a donor gave a $25,000 gift specifically for four distinct projects. The donor was thanked properly very soon after sending the gift.

Now, fast-forward to present day. Recently the executive director is sitting down with a different donor having breakfast. The donor says to the ED, "Hey, I was just speaking with George (not real name), and he told me that a few years ago he gave you $25,000 and never heard back from you. He wants to know what happened with those projects."

Gulp! You know that knot that forms in the pit of your stomach when something bad happens? That's what the ED had right then. He calls the donor as soon as he could and apologizes profusely. The donor was very kind, but then said, "Hey, I understand, in fact you're not the only one. The year I gave you that $25,000 gift I also gave eight other organizations the same amount. Only one organization told me how my gift made a difference. It was a small food pantry with two employees, and I got a detailed account from this little old woman who runs the place. So, now I give her most of my annual giving, and I only support organizations that report back to me."

This donor's story is a warning to all of us. Donors want to know how they made a difference! If you are experiencing any barriers that prevent you from following up with donors and reporting back, take whatever means necessary to fix this problem. If you don't it will kill your major-gift program.

I don't care if it's a personnel problem or a technology problem. This has to be changed. This is the No. 1 reason why donors stop giving again. Yet, this continues to be a problem for nonprofits to address. If your organization is donor-centric, focused, whatever you want to call it, this becomes a priority. You do this right, good things will happen! I promise.

Reason #10 — When money becomes the objective, not the result
One of the toughest things for me to witness is a major-gift officer (MGO) who is under extreme pressure to make either her monthly or year-end goal and she hasn't been communicating with her supervisor or board.

Why? Because it tells me two things: 1. Something is broken with the philosophy and strategy of the major-gift program, and 2. When MGOs start to "press" for a gift, they lose their brains, forget about the donor and focus on getting the money.

Believe me, when nonprofit, MGOs or executive directors start to focus on the money rather than the donor, for whatever reason … they lose. Why? Because major donors are real people like you and me. They just have more money than most of us. They have the same fears, concerns and trust issues as we do. Just like you, if they detect that you only want money from them, your ability to form a trusting, long-lasting relationship will be compromised.

Think about it in your own personal life. You know when someone really seeks an honest relationship versus just wanting something from you. The latter doesn't feel good, does it? You might provide the "thing" they are wanting, but you don't like it.

Now, you might actually get the "gift" from the donor when you chase the money, but the long-term relationship becomes damaged and, more often than not, the donor goes away and becomes another attrition statistic.

I know what it's like to have a goal and sense that you're not going to make that goal. It's not a good feeling. It keeps you up at night, and those snakes and vipers in your head tell you that you're a failure. However, with a well-run major-gift program, where all players — the board, ED and major-gift officer — are working together this can be avoided.

All this major-gift stuff is about building and maintaining strong relationships with people. If that is the objective and you do that extremely well, the money will follow you. But, if you get tempted to go after the money without understanding the complexities and subtleties of the relationship, you have a real possibility of losing it.

Hey, I've made this mistake myself. (I'll tell you about my story in the posts to come.) The only reason I can tell you the truth of this is because I've blown this rule big time! Thankfully, I've made it through in order to warn others.

As I've said in earlier posts, your job with your major donors is to know them and understand their passions. If you do that right and continue to trust that approach, your goals will be met.

OK, so perhaps you do everything right, but you're still not meeting your goals and you can't sleep at night. Well, don't let it come to that. What do I mean? Remember what I said earlier, that a well-run major-gift program has all the critical players on the same page. That means communication is the key. There should never, ever be a time when the executive director has to ask why major-gift giving is down (or up for that matter) in a particular month. That is because the MGO is constantly reporting back on what is happening with the donors.

Hey, some things are out of your control. People die, businesses go bad … you can do everything right and still not make your goal. But if you're communicating up line to your supervisor on a consistent basis, talking strategy, etc., then I guarantee that if your ED is of sound mind he/she will understand.

No one has to like it, but no one is surprised.

Let me state this clearly. Do not just go after the money. You will ultimately lose. Deepen the relationship and communicate with folks. If you think donors won't get the fact that you are just chasing the money, you are mistaken. They know. Build and deepen that relationship … there truly is a reward at the end for everyone.

Jeff Schreifels is co-owner of Veritus Group.