United Ways of Washington Board Education Item
March 2013
“The Imperfect Storm”
Donor Trends
As I travel throughout the state talking about Collective Impact with local
United Way boards and staff, a number of people have asked for more
information around donor trends. (One of the assumptions supporting
Collective Impact is that donor trends necessitate a different way of doing
business). United Way Worldwide recently shared “The Imperfect Storm” by
Marc Chardon and Hal Williams that highlights this very issue.
Trends Impacting Social Service Philanthropy:
1.
2.
3.
4.
The number of donors is declining.
Contributors are aging.
Government funding of social services is declining.
Demand for services is at an all-time high.
Chardon and Williams contend these trends are the “new normal” and suggest
the following characteristics of donors:
1. Donors are changing what they want to see from philanthropy. Traditional
appeals do not work. Organizations should focus on the check writer,
not the check (e.g. relationship management).
2. Donors are shifting from wanting to fund programs to investing in
results. Donors are looking for a focus on effectiveness, not efficiency
and compliance.
3. Donors have moved from supporting multiple groups working on a single
issue to investing more funding in organizations that produce strong
results.
4. Donors want to see data to inform funding decisions, not just hear stories.
5. More than one way exists to achieve results. Focus on the outcome, the
result, not the process.
Cherdon and Williams suggest nonprofits:
1. Keep up with your donors and note generational shifts. The authors say
our parents were motivated to give to “get into heaven;” the boomer
generation is motivated by results from the services offered; and our
children are seeking deeper engagement with multiple touch points (not
just a once-a-year campaign).
2. Define themselves by results. Cut to the chase on achievement and share
how you have tangibly changed lives. Too often funders make agencies
jump through hoops to get funding, not because what they are asking for
is essential. Nonprofits too often focus on perfecting the document, rather
than on perfecting the program.
3. Nonprofits need to stand out and “ride their brand.” Remember your
brand is a promise to your donors. Also, it is important to understand your
organization’s results in the context of results produced by other groups.
Articulate your role in these results.
4. Use data to improve and tell stories. The data itself is not the key; instead
it is the meaning that comes from the data.
5. Non-profits need to start and end with the customer. For program
participants that do not complete the program, do not just focus on finding
a replacement participant. What didn’t work for that individual? Similarly,
for donors that leave, what made them leave? Do not just focus on
replacing the churn.
United Way specific data shows…
1. Overall donor growth is modest and has not returned to pre-recessionary
levels.
2. Affinity group donations are fueling resource development. This is where
double-digit growth is occurring, particularly from women.
3. Volunteerism shows a strong area of growth with an 8% increase in
domestic volunteers.
4. The number of donors has decreased by 2.5%.
5. Leadership giving has decreased by 2.1%
6. More gifts are designated.
Questions for your United Way…
1. Are your donors external to your United Way, or part of it?
2. Does your United Way inform donors, or engage them?
3. What are your trends around number of donors; level of leadership giving;
affinity groups; and level of designations?
4. Have you adopted a relationship management strategy that focuses on
generational differences?
5. What is your response to the assumptions and suggestions included in
this article? Do you agree/disagree? What areas can you improve?
6. How do these assumptions make the case for doing business differently?
Or not?
Resources
1.
“The Imperfect Storm” by Marc Chardon and Hal Williams.
http://www.blackbaudhq.com/files/marketing/white_papers/812.ImperfectStorm.pdf
2.
UWWA Powerpoint on Resource Development (attached)