Mid-level Donors: Donor Purgatory is an Untapped Opportunity
Posted on Tue, Jun 08, 2010
Which one
looks most like your donorfile?
As Roger points out in today's Agitator, the much-vaunted "Fundraising Pyramid" used by many nonprofits "too often resembles an hourglass. Fat on the ends, skinny in the middle." Middle donor or mid-level donor programs are part of the fundraising program that's concerned with donations larger than the many small gifts and smaller than the few, large gifts at the top of the pyramid or hourglass.
So why do so many nonprofits under-value this area of development? Especially lately, when budgets for acquisition are shrinking and retention is getting complex, and the new glow-in-the-dark idea getting traction is micro-donations of between $1 -- $10?
More than a holding area
How important is cultivating mid-level donors - generally classified as having given between $500-$5,000? Nicole Wallace at the Chronicle of Philanthropy recently tackles the subject by pointing to three organizations that are doing things right:
• The ASPCA has nearly doubled its income from its $500 to $5000 donors by focusing on this mid-level group and encouraging them to give more often;
• Catholic Relief Services now raises 25% of its income from the 1% of its donors who fall into the mid-level donor category;
• And Mercy Corps has seen a 5% increase in the number of its mid-level donors by assigning part-time development officers to provide more personal attention through its program.
If you're reading this, thinking "okay...what next?", here are our suggestions:
1. Find the low hanging fruit and look at your donorfile: does anyone there have the capacity to increase their support? Look at historical giving amounts and frequency, and any additional behavior that indicates a bond with your organization (attended events).
2. Talk to the major giving folks and share the vision and plan for this program. They likely have a sizeable list of major donor prospects that aren't ready to make a major contribution right now. Does it make sense to move those folks to your file? Don't cannibalize the major donor file, but instead work to find prospects that aren't prepared for the big step of major giving, but might be ready for a medium-sized investment and opportunity.
3. Create a strategy and a unique donor file for these folks! How will you contact them? What special features, promotions, communications will they receive? What is the call to action? The program goals for 6 months, 1 year, 2 years? When will donors go from individual giving to the mid-level program, and from the mid-level program to major gifts?
4. Assign someone part-time responsibilities to cultivate and retain/upgrade them. Make sure that person gets along with both direct response and major gift programs.
5. Talk to them. Survey them by phone at least once a year to ensure you're meeting their expectations and they know where their donations are going. Make sure that part of your strategy for them includes calls or events (or both) with the ED and program directors.
6. Create a special page for them on your website: it could have more detail on where their support is going, have special content from the field, just for them, or make it interactive and let them post questions they want the ED to answer on the next ‘mid-level donor love conference call'.
Changing the shape of the hourglass
As Roger states, "Frankly, at a time when many groups are having acquisition and retention trouble at the base of the pyramid and uncertain economic times are creating delays or deferrals in giving at the top, the middle is where fundraisers need to focus."
Roger calls this area "so painfully obvious" - don't make the man scold you and your organization for leaving money on the proverbial table! We're going to check in on this issue in a few months and see which of you are reaping the rewards of this untapped donor group.
But for those of you with mid-level donor programs or techniques that you're successfully leveraging right now -- share them with us! What works for you? What is included in your offer? How are you measuring success? Please leave a comment below or send us an email.
Ryann and Caity
DonorTrends staff