The Educated Giver and You
Posted on Mon, Jun 14, 2010
Having now reviewed the results from DonorTrends' TrueGiversTM Giving Analysis Profiles (GAP reports) spanning a broad range of nonprofits and educational institutions, there are clear donor patterns emerging. Over the coming months we will explore the implications of these patterns and help you find ways to take full advantage of the opportunities and also to effectively deal with the challenges.
We are going to start with the sector that has the best track record of raising big money from individuals: education. Second only to religion in dollars raised, education is second-to-none in monetizing the top of the mythical giving pyramid. This dominance is clearly shown in the Share of Wallet analysis we do in GAP reports.
Interest in Eduction broadly, Not Necessarily the School
The first interesting item we see with our education clients is their best donors are giving to OTHER educational institutions and organizations - not just to their own educational institution. It turns out that interest in education is more important than loyalty to alma mater when it comes to giving.
For our non-education clients the opposite is true - education donors are often underperforming on their files. The TrueGivers data is showing that once a person supports education they have fewer discretionary giving dollars to support non-educational causes.
Five Tactics to Help Raise your Game
1 - Upgrading Lower-gift Donors
Of course there are exceptions at the individual donor level. You find people who are making "participation gifts" to their school(s) at lower levels. These people then support nonprofits at higher levels. But what is unmistakable is, if you are a nonprofit and have a donor supporting education, you need to raise your game in terms of communication, cultivation, solicitation and stewardship.
2 - Use Competition to Your Advantage
For educational fundraisers, focus special attention on the people who have a broader interest in education. You would think that direct competition is bad, but in fact it could lead to a larger gift as you tap into the person's deep interest in education.
When discussing education, the first thought is often a college or university. What we are seeing is strong activity at the K-12 level and some of these people do not go on to support higher education. Higher education fundraisers need to look at their alums, and especially parents, who are supporting K-12. The parents may be only in their 40's or early 50's yet have already given at a high level, and some have taken leadership positions on boards and committees.
What about the people who are not supporting education, and specifically not supporting the schools they attended? Are these people just not givers in general? In some cases yes, but in most cases we are seeing that their giving dollars are going to support a broad range of nonprofits with missions that connect to the donors passions.
3 - Tell Stories That Connect
Donors today do not automatically give to their alma maters out of a sense of loyalty. The record low participation rates back that up. The challenge for the education fundraiser is to make the case that their mission makes an impact that connects to those passions. Do you have an environmental studies program that might interest an environmental giver? Have any of your graduates gone on to heal, help, or bring hope to others? It's time to tell those stories.
4 - Use Education Even if You're Not in Education
Fundraisers at nonprofits need to highlight educational components of their missions to their education givers. You may not be their primary interest but with the right message you can make a deeper connection that ultimately leads to higher levels of giving.
5 - Donors Can be Leaders
If your nonprofit needs leadership, take a close look at your donors that are supporting education with capital and campaign gifts. These individuals may possess the knowledge and experience you need to make your next campaign a success.
You can get a feel for giving patterns by viewing our webinar - Mission Competition: What's Your Giving Share?, but there is nothing like seeing your own TrueGivers GAP report.
To paraphrase the commercial, "An educated giver can be your best donor."
David Lawson