The Donor/Charity Contract

The (Current but Outdated) Donor Contract
When you give us a gift, we own your name. We have the right to communicate with you as often as we want; contact you by any medium we choose (we’re exempt from national do-not-call legislation); keep you on our mailing list in perpetuity (if you ask to be removed from our list, it will take us up to three months to do so); and rent your name to other organizations at our discretion and for our benefit.

There’s a contract between nonprofits and their donors. And frankly, it’s not all that attractive to donors. If donors knew what they were signing up for, how many of them would still give?

The system works, thanks to good-hearted, involved people. But the upcoming generation is going to demand a new contract that serves its needs better. With that in mind, I’d like to propose some elements for a new donor contract — one that actually might attract donors, not scare them off.

Each of the following “rights” involves handing over power to donors. But their gain is not your loss. When you give something up, you almost always get more back. This is just an opportunity to do fundraising the way it should have been done all along.

1 - Donors have a right to control frequency. One donor’s “too much” is another’s “just right.” The best way to get the frequency right is to let donors set it. Ask them what they want. Those who take action will give more in the following 12 months. I know because I’ve tested it! Even those who take no action end up giving more. Donors will reward you for giving them choices.

2 - Donors have a right not to have their names shared with other organizations. This is a sore spot for some donors — the fact that supporting one cause opens them to a flood of mail from others. (Though for others, it’s no problem at all. They love good causes, and the more, the merrier!) So, ask. Offer the choice to opt out. Or consider a no-rental/no-exchange policy. The organizations I know that do this seem to have better donor-retention rates.

3 - Donors have a right to prompt receipts. Donors should be thanked for their gifts while the act of giving is still fresh in their minds. A receipt that takes weeks to arrive signals a lack of urgency about the cause and indifference toward the gift.

4 - Donors have a right to know what their gifts accomplish. Put out a donor-centric newsletter. Many nonprofit newsletters are, “Look at us! Here’s what we do!” Instead, say: “Look what you’ve done! Thank you and congratulations!” This leads to better retention, upgrading and, ultimately, more revenue per donor.

5 - Donors have a right to know where their money is going. More and more donors see giving as an investment. So keep them informed both when you ask and again when you report back. Letting donors designate their giving is one solution, but it’s not the only one. What you need to do is be clear about what they’re paying for. And it’s up to you to make it attractive.

6 - Donors have the right to get their money back if they’re not satisfied with the results. Here’s a secret: Hardly anyone ever asks for their money back. Ask a retailer: A money-back guarantee is not a huge risk. You can offer it without fear.

You might have noticed that most of these rights are not new. Donors have them; they just have to raise a stink to get them. Why reserve the best for the cranks? Why not offer it all up front to everyone? You have nothing to lose but tired, old, declining fundraising.

Jeff Brooks is creative director at Merkle/Domain.