Insights for Non-Profits

How well are you stewarding the donors that keep your organization running by investing in time, talent, and treasure? Are your donors in a rewarding and meaningful relationship with your organization? Implementing donor stewardship activities can increase trust and improve donor relationships to encourage future giving and is one of the five habits we’ve identified of successful endowments and foundations.

There are four key elements to building a strong donor stewardship program within your organization, which will help foster long-term engagement and continued donations and support. This fundraising, in turn, helps reduce withdrawals that might be needed from your investment portfolio and the uncertainties of the market environment.

Gift Acceptance & Management

Before welcoming gifts, a gift acceptance policy should be made to help address a variety of considerations and issues that may arise. Gift acceptance policies ensure donor’s intentions and the organization’s needs are in alignment. Organizations should also outline giving opportunities in establishing endowed funds, named spaces, and giving societies so donors clearly understand the levels of recognition they will receive when making a large gift. It is also important to put these processes in place to address gifts that can no longer be used because of changes in intended programming, project scope, and funding needs. For example, real estate gifts sometimes present a unique challenge. Many organizations implement policies that carefully review any risks and liabilities from accepting real estate, sometimes even going so far as rejecting a gift if it is determined that it doesn’t align with an organization’s mission.

Acknowledgement of Gifts

Donors need to be recognized in a timely and meaningful manner for their contributions. Organizations can acknowledge gifts in a meaningful way through various tactics, (i.e., a personalized thank you letter from a Development Director to a donor outlining their specific gift and how it is being used, to student scholarship recipients expressing gratitude for donations in a video) can demonstrate the impact a donation has made. If organizations can show donors how their gifts are making a difference and specifically how their donation is being used, they will be much more likely to give to your organization regularly.

Donor Recognition & Events

Recognition is a public form of donor acknowledgement and can be accomplished in a variety of ways such as displaying a donor’s logo or name on signage the organization’s website, in newsletters, or the annual report. Categorizing donors by level of giving can encourage smaller donors to consider increasing their gift if recognition was greater. Donor events are an effective way to reach and foster long-term relationships with a broad spectrum of donors. Events are a large commitment of staff time and resources for most organizations, but an additional way to recognize and show appreciation to donors. Many non-profits use special events to help recognize and thank their top donors for continued support. Others use events such as dinners, galas and auction events to help raise large amounts of money by selling tickets and table sponsorships.

Reporting to Donors

Communicating the story behind your organization’s mission reaffirms to donors that they made a sound investment in your organization. This shows donors your organization is consistently working to positively impact the community. For example, many non-profits are turning to social media to post thank you stories or are creating videos as an engaging and creative way to thank their donors and show the impact of donations.