Basics of Donor Relations Your Map to an Effective Donor Relations Program

Basics of Donor Relations

Your Map to an Effective Donor Relations Program

CASE District IV Conference

Ft. Worth, TexasMarch 24, 2013

Cynthia UviedoDonor Relations

OfficerTrinity University

Effective Donor

Relations

Overview/Road Map What is Donor Relations and why is it

important Assessing your organization’s DR

activities Getting started Ideas and Samples Q & A

Donor RelationsThe comprehensive effort of any nonprofit that seeks philanthropic support to ensure that donors experience high-quality interactions with the organization that foster long-term engagement and investment. This effort is commonly thought to have four elements:

Gift acceptance and management Acknowledgment Donor recognition Reporting

Source: Association of Donor Relations Professionals (ADRP.net)

StewardshipReporting element is commonly referred to as stewardship. Historically, defined as the safeguarding of the assets of others.

Activities associated with stewardship are focused on ensuring that the funds provided by donors are utilized in the way intended as conveyed in gift agreements and fund terms.

By this definition, stewardship is a function inherently internal to an organization, rather than a donor-facing, external function. Source: Association of Donor Relations Professionals (ADRP.net)

StewardshipNoun1. a process whereby an organization seeks to be worthy of continued philanthropic support, including the acknowledgment of gifts, donor recognition, the honoring of donor intent, prudent investment of gifts, and the effective and efficient use of funds to further the mission of the organization

2. the position or work of a steward

Source: AFP Fundraising Directory, www.afpnet.org

Fundraising Cycle

Identify

Cultivate

Solicit

Steward

Donor Relations CycleDonor Makes Contribution

Acknowledge

AppreciateAccount

Ask Again

Janet L. Hedrick, "Effective Donor Relations"

Why is Donor Relations Important? Cost of acquiring new donors Why do donors stop supporting your

organization

Assess Where You Are

Assess Where You AreStart Behind the ScenesGift Acceptance and Management

Policies and procedures Process for review of gifts – can we do what the donor

wants us to do? Structure for giving opportunities Process for tracking gifts as they are expended

Assess Where You AreStart Behind the ScenesAcknowledgement

Private communication Accurate, timely, and meaningful expressions of gratitude Includes receipting and personalized, written

correspondence

Assess Where You AreStart Behind the ScenesDonor Recognition

Giving societies, Honor Rolls Donor walls, named space signage Internal and external publicity Donor recognition events, engagement opportunities

Assess Where You AreStart Behind the ScenesReporting

Stewardship What is the impact of the donor’s gift on the mission of

your organization Qualitative Quantitative

Getting Started on the Donor Relations Road

Gift Acceptance and Management MOU/Gift Agreement templates

Who’s authorize to sign Include Business Office, Fiscal Affairs How are donor’s intent tracked Who is tracking Important – information feeds into

reporting Review

Acknowledgement Top-level acknowledgements/thank you

letters from President, Chancellor, Dean, Headmaster, Board members

From someone benefitting from the gift Student Faculty member Parent

Sample of student thank you letter

Donor Recognition Process of expressing gratitude for a

contribution in a public way Signage Named opportunities Special presentation Appreciation events Gifts

Signage/Named OpportunitiesDonor Recognition

Scholarship Events Seated dinner for endowed scholarship donors Reception for annual fund donors Photo with donors Student speaker; donor/Board speaker Keep program short; time to interact with

students

Appreciation Events

Special Presentation

Appreciation Events Heritage Society

Luncheon Special events for

large donors Thank-a-thon

Gifts

Publicity Articles in your alumni magazine,

website, e-newsletter For transformational gifts, news releases

to the media Recognition among their peers

Events Special publications for giving societies

Recognition Caveats Donor Honor Roll debate Know your donors and their expectations Recognition Preferences:

Expectants Moderates Frugal Secretive Anonymous – clarify what it means

to each donorLaura Fredricks, “Developing Major Gifts: Turning Small Donors into Big Contributors”

Stewardship/Endowment Reports Principal Market Value of Endowment Gifts received Distributions from endowment How funds were used

Scholarships - name and information on scholarship recipient

Professorships/faculty support – activity summary of faculty member

Lectures/programs – summary of events supported

Reporting

Sample Endowment Report

Sample Endowment Report

Reporting Annual Reports Reports on unrestricted gifts

Show overall impact on your organization **Communication is key!

Reconnecting with donors on a regular basis Reminding them about what their gift is

doing

Beware of DR pitfalls If implementing a program with existing

staff, be reasonable about expectations. Start with one new project per year to see how it impacts other work.

If starting with someone dedicated to DR only, don’t dump all the “extra stuff” on them. Discuss with the Development team about what it the expectation for this person. Caution with special events!

Questions?

Donor Relations Resources Association of Donor Relations

Professionals ADRP.net Donor Relations Guru – Lynne Wester

donorrelationsguru.com Effective Donor Relations by Janet

Hedrick (AFP Nonprofit Essentials series)

Cynthia UviedoTrinity Universitycuviedo@trinity.edu210-999-8075