Saying Thank You (Stewardship and Recognition)

No one is more famous for customer service than the Ritz-Carlton. The chain of hotels has built a reputation so stunning that I feel confident in shamelessly copying them to build my stewardship and recognition plans.

Building these plans is important and almost always overlooked. They matter less if you're running for political office, where everything is a little more transactional. But if you care at all about donor retention, this is a critical step.

The Ritz-Carlton’s credo emphasizes genuine care, comfort, and meeting even unexpressed wishes of guests. Similarly, our highest mission should be to genuinely care for our donors and satisfy their philanthropic desires, including those unexpressed. We should create an environment where donors feel valued, respected, and connected to the success of our cause.

Three Steps of Service: In the nonprofit context, we can adapt the three steps of service as follows: Warm and Sincere Greeting: Every interaction with donors should begin with a sincere, personalized greeting. Using the donor’s name adds a touch of personalization and recognition, strengthening the relationship.

Anticipation and Fulfillment of Needs: Donors have unique preferences and needs, and it’s our responsibility to anticipate and meet them. This could involve tailoring our communication style to each donor, proactively updating them on the impact of their donation, or recognizing important dates or milestones.

Fond Farewell: Ensure every interaction ends on a positive note. Express gratitude for their ongoing support or reaffirm the importance of their contribution to our cause.

Service Values: Adapting the Ritz-Carlton’s service values, we can establish a set of core values to guide our interaction with donors:

Building Relationships: Cultivating lasting relationships based on shared values and mutual respect is crucial, aiming to create donors for life.

Responsiveness: We should be responsive to both the expressed and unexpressed wishes and needs of our donors.

Creating Unique Experiences: Each donor is unique, and we should strive to provide experiences that align with their personal values and interests.

Ownership and Resolution of Problems: If a donor encounters an issue or concern, we should take immediate ownership and work towards a resolution.

Continuous Improvement: Constantly seeking ways to enhance our donor engagement strategies, ensuring a superior experience.

The ultimate goal is to create a sense of mystique or a unique value proposition that sets your nonprofit apart.

At the core of every successful fundraiser lies the goal of creating an unforgettable experience. Achieving this requires meticulous planning and the ability to anticipate every need.

I learned this valuable lesson in an unexpected setting - at a fundraiser I helped host in the bustling heart of New York City. This particular gathering was no ordinary event. It was a vibrant mix of intriguing personalities, delightful cuisine, and invigorating conversations. Laughter filled the air as intellectual debates sparked, impromptu dance-offs ensued, and surprise performances from famous entertainers took place.

As the night drew to a close and the guests bid farewell, it was evident that the evening had been an incredible success. 10/10. But to ensure continuous improvement and to create experiences that truly resonated with our guests, I had learned to make it a habit to seek feedback after each event. I firmly believe that every experience, whether successful or not, presented an opportunity for learning and growth.

One guest, known for her candid opinions, shared a piece of feedback that offered a surprising perspective. “The party was amazing,” she exclaimed, “but... there was one thing that could have been done differently - the bathroom ran out of toilet paper.”

Was it technically my responsibility to ensure there was enough toilet paper? No. The caterers were in charge of the food, the DJ handled the music, and the cleaning staff took care of venue tidiness. Yet, amidst the whirlwind of responsibilities, the task of replenishing bathroom supplies had been overlooked.

It was an oversight that fell between the cracks, as it seemed to be nobody’s specific job. In the grand scheme of the party, running out of toilet paper was a minor detail.

However, to a guest, it could be a significant inconvenience. More importantly, it served as a powerful reminder of a fundamental principle in stewardship - no detail is too small. From that moment onward, ensuring there was ample toilet paper became a fixture on our event preparation checklists. It joined the ranks of confirming with the caterer, testing sound equipment, and rehearsing speeches. In addition, we introduced a comprehensive checklist for every event, covering every imaginable detail - from major tasks to seemingly trivial ones. We assigned responsibility for each item on the checklist, leaving nothing to chance or oversight because it was deemed “nobody’s job.”

Whether it involves personalizing communications with donors, meticulously tracking funds, or ensuring transparency in reporting, every task matters. When we embrace responsibility and take ownership of these details, we not only prevent oversights but also foster an environment that values accountability.

That's the baseline for how we say thank you. It's more than a note automatically printed after a gift is processed. Nurturing relationships and keeping donors engaged with your organization is crucial in the nonprofit world.

The measure of fundraising success lies not just in dollars raised but in the retention rate of donors. Retaining current donors is more cost-effective than constantly acquiring new ones.

Of course, to foster donor appreciation and value, it is important to send personalized thank-you notes promptly after they make their commitment. Express gratitude for their gift and provide a summary of the gift amount, purpose, and impact. This helps donors feel valued and appreciated. Ensure that donors receive a receipt for their gift, including all necessary information such as the gift amount, date, and purpose. This provides the donor with the information they need for tax purposes and serves as a record of their contribution. Thank-you notes are the backbone of a retention strategy.

For major donors, consider hand-writing the notes to add a personal touch. For most donors, pre-printed thank-you notes are acceptable.

Never ask for more money in a thank-you note, as it comes across as transactional and greedy. Remember to comply with IRS guidelines by acknowledging charitable gifts and including all required information in the receipt or thank-you note. While thank-you notes require time and resources, they are worth the effort for retention purposes. Sign the letters using a blue pen and consider adding personal notes if time permits. Delegate the task of stuffing and sending to a volunteer or intern. Remember to promptly send thank-you notes for each gift received, with bigger gifts potentially warranting a more personalized touch. Use your judgment and aim to send the notes within a month, preferably within two weeks.

However, there are other creative ways to express gratitude as well.Consider making thank-you calls to keep donors informed and build relationships based on their philanthropic interests and family history. Gifts such as t-shirts, welcome boxes, awards, or pins can be a great way to express gratitude, but be mindful of the logistical challenges and time cost involved. Keeping donors informed about the progress of the project or program their gift supports is essential. This can be done through regular updates, project reports, or personal visits, ensuring donors feel connected to the organization and the impact of their gift. Continuing to engage and involve donors in your organization’s work strengthens the long-term relationship and increases the likelihood of future gifts. Events, volunteer opportunities, and other involvement avenues can facilitate this engagement.

Cultivating donors requires consistent communication and engagement. By implementing the methods outlined in this chapter, donors will feel appreciated, valued, and motivated to continue supporting your organization. A simple solution for sending thank-you notes is to compose a digital letter expressing profound gratitude without making any additional requests. Make a list of recipients, which can include all donors or those who contributed above a certain amount. Use mail merge to personalize the letters and print them out using a laser printer for cost-effectiveness.

Recognition

A sense of shared purpose and identity cultivates ownership and responsibility towards the organization’s mission. Donors who feel this connection are more likely to stay committed, increase their contributions over time, and become advocates within their networks.

When donors perceive themselves as part of a community that shares values and goals, they take pride in the organization’s success as their own. This shared purpose and identity deepen their commitment and investment in the mission. Creating a positive emotional connection enables donors to feel like valued members of a community aligned with their values and goals. Appreciation and gratitude play a vital role in fostering this connection, as they make donors feel valued and reinforce the impact of their contributions. Recognizing and acknowledging donors is crucial in showing gratitude, encouraging continued support, and inspiring others to contribute.

Effective recognition and acknowledgment strategies include sending personalized thank-you messages, providing public recognition through newsletters or events, and keeping donors informed about the impact of their contributions.

To ensure respectful public recognition, organizations should obtain donor consent, allow donors to choose their preferred method of recognition, and be transparent about data usage and sharing practices.

Transparency fosters trust and respect for donor privacy. Balancing communication is essential by establishing clear preferences and frequency guidelines, allowing donors to control their communication preferences, and crafting messages that are relevant, timely, and respectful of their time and interests. Monitoring key performance indicators such as donor retention rates, donation frequency and size, and donor satisfaction levels helps evaluate the effectiveness of donor recognition and acknowledgment strategies.

Collecting direct feedback from donors through surveys and other channels is also valuable for continuous improvement.