Donor Focus: Gays and Lesbians

The gay and lesbian communities have long been major supporters of charitable organizations in the United States. But it’s only recently that those organizations were able to openly acknowledge their gay donors — thanks in part to many who have self-identified in response to the growing maturity of the gay movement — and show that they are uniquely attuned to gay-rights issues and supportive of same-sex relationships.

But for many nonprofit organizations, one perennial deterrent is potentially alienating social-conservative and religious donors who believe homosexuality is immoral.

Still, many mainstream charities have recognized the need to tap into this burgeoning donor group. The San Francisco Bay Chapter of the Sierra Club, for example, hosts the Gay and Lesbian Sierrans, a conservation club for gay, lesbian, bisexual and transgendered individuals. Throughout the year, GLS sponsors outdoor activities for Bay-area members.

The Sierra Club also has fetched big gifts through its Walt Whitman Gay and Lesbian Fund, a program that supports both the environment and gay rights.

Taking a cue from progressive organizations such as the Sierra Club, some mainstream organizations have launched gay and lesbian giving clubs, appeared at gay-pride events and altered administrative policies to accommodate same-sex unions.

According to a 1998 study conducted by the Institute for Gay and Lesbian Strategic Studies — the most recent and frequently cited study of its kind — the average gay donor contributed 2.5 percent ($1,194) of his personal income to charity during the previous year. This finding is slightly more than the 2.2 percent ($1,017) of household income contributed by the average donor in the United States, as found in a late-1990s Independent Sector survey.

Patterns of volunteering also differ, with gay volunteers being much more active. The typical non-gay volunteer averages 18 hours per month, while gay volunteers average 29.

The IGLSS study, which vetted the giving and volunteering patterns of 2,244 gay donors in Milwaukee, Philadelphia and San Francisco, found that the gay and lesbian community contributes roughly equal amounts of money to gay and non-gay organizations. The remainder (14 percent) goes to HIV/AIDS-related organizations.

What’s more, after controlling for differences in income, gender, age, race and education, the study found that gay people who are open about their sexual orientation to their family members and workplace supervisors volunteer more hours and contribute more money than those not “out” to their families and colleagues.

Can’t just talk the talk
Russell Roybal, director of training and capacity building for the Gill Foundation, a Denver-based grant-making organization whose mission is to secure equal opportunity for all people, regardless of sexual orientation or gender identity, has observed a recent influx of mainstream charities courting gays but is not overly impressed with their approach.

“Certainly, nonprofits have seen the loyalty that gay donors have. These organizations have had gay donors forever, but now it’s a matter of recognizing that gays are within their ranks and making sure they are welcomed and accepted just like any [other] straight donor,” says Roybal, who also works with the Gay & Lesbian Fund for Colorado, a program of the Gill Foundation designed to build public awareness of the contributions gays and lesbians make to American society.

Roybal is quick to point out that up until a few years ago, database-software programs failed to recognize same-sex partnerships. When you entered the gender of a donor, the program automatically assigned a blank field for the opposite sex.

But while direct mail solicitation language has changed for the purposes of inclusion — “significant other” and “spouse” instead of “husband” and “wife” — Roybal stresses that in order to effectively target gays, a fundraiser’s intentions must first be genuine.

“I would be suspect of any organization who is obviously trying to capitalize on the media attention surrounding the gay movement,” Roybal says. “Like an organization who shows up at a gay-pride event just to collect money — basically, any efforts driven by the gain of revenue and not necessarily the building of relationships.”

Loyal, responsive donors
While not every effort to raise money from gays succeeds, or even gains their respect, some mainstream organizations have found success by drawing on their affinity with the gay community.

“Gays and lesbians give where their hearts go. During hard times, when the economy is tighter, as it has been for the last few years, the gay community continues to give,” confirms John Knoebel, president of New York City-based Triangle Marketing Services, a full-service mailing-list firm specializing in the gay and lesbian market. “They have the disposable income to do so.”

According to Knoebel, TMS has observed four categories of repeat gay-list users:

1. Gay and lesbian nonprofit and political organizations: Many of the first gay lists on the market developed out of the HIV/AIDS crisis in the 1980s. Today, charities such as Human Rights Campaign and Lambda Legal Defense Fund regularly target gay donors.
2. Health and disease-related causes: The Leukemia Society of America, the Dana Farber Breast Cancer Institute and the American Foundation for AIDS Research all have rented TMS files. Naturally, HIV/AIDS-related charities actively reach out to the gay community, but TMS has witnessed many general health- and disease-related organizations tailor special appeals.
3. Political fund-raisers: “Large nonprofit mailers who may have more of a liberal slant” are repeat renters, Knoebel avers. American Civil Liberties Union, Planned Parenthood and Southern Poverty Law Center all have rented gay lists.
4. Gay and lesbian nonprofit and political organizations: Many of the first gay lists on the market developed out of the HIV/AIDS crisis in the 1980s. Today, charities such as Human Rights Campaign and Lambda Legal Defense Fund regularly target gay donors.

Food pantries and hunger-relief charities: Organizations that service needy inner-city individuals also have gone to gays for donations.

Those groups have tapped into an affluent, loyal demographic. Says Knoebel: “The people who are active in the gay community, namely those who identify themselves as such by pursuing consumer actions like subscribing to a magazine or donating to a cause, tend to be in a higher income group.”

A study released this year by market-research firms Witeck Combs Communications and MarketResearch.com indicated that the disposable personal income for the country’s 15 million gay and bisexual people totals $485 billion. A significant percentage of self-identified gays and lesbians possess this spending power because they have few of the financial burdens associated with raising a traditional family. Most fall under the “DINKS” classification — Double Income, No Kids. Therefore, they enjoy the economic independence to travel, donate to charity and pursue an affluent, urban lifestyle.

But as Knoebel attests, addressing the gay community by direct mail — as opposed to advertising in the gay press — requires complete discretion.

“It runs counter to what you do in direct mail. You try to make the most direct connection you can on the outer envelope so it gets opened,” Knoebel says. “Here, you must be more subtle, or the recipient might think you are ‘outing’ them in the mail.”

A sense of community
Charlie Conard, president of New York City-based Tribe Marketing Group, a direct mail marketing and design firm that specializes in gay-focused solicitations for for-profits and nonprofits, has found success by conveying a sense of “community” and “togetherness” on the carrier envelope without employing stereotypical images.

“You want to reach out in a way that engenders community. Gay [direct mail] donors tend to be older, and a lot of them came out as adults, so they understand the value of community, which was especially important during the HIV/AIDS crisis,” says Conard, who designs solicitations for many gay and lesbian organizations, including Senior Action in the Gay Environment.

While Conard admits that tailoring copy and creative to the gay community can be tricky, he says he hopes more nonprofit groups will reach out to gay donors.

“As time goes on, and the stigma of being gay or lesbian decreases in our society, as it has recently, more [charities] will see the value of reaching out to this group,” he affirms. “Very often it’s just a matter of acknowledging that some of your donors are gay or lesbian, and respecting that.”