This week everybody’s talking about Penelope Burk’s latest survey of donors.

Penelope Burk

She issued her 2011 Cygnus Donor Survey this week – a moment many of us “trend-spotters” have been eagerly anticipating!  And it reveals some major trends we all need to watch.

22,000 donors from all over North America responded to her survey (17,605 from the US), and here’s what she found out:

1. Donors plan to be more generous in 2011.

A whopping 79% said they are planning to give the same or more to charitable causes in 2011. Time to celebrate!

Burk said  “Our donors are not giving anywhere near their capacity.”  Can you imagine:  48% said they held their giving back last year.

THIS MEANS: With donors feeling more generous and planning more gifts 2011, you need to be cheerfully in front of them often with clear, compelling, urgent fundraising messages.

2. Donors are supporting fewer causes.

Burk says that many donors are making a philosophical decision to support fewer causes.

Very interesting: older donors are supporting more causes than younger donors. 23% of donors over 65 are supporting 20 or more causes, but only 9% of donors between 35 and 64 did so.

THIS MEANS: With younger and middle age donors becoming much more selective, you have got to work harder than ever communicating how your organization achieves results.

3. Donors are becoming increasingly independent.

They are giving independent of a solicitation. And they are deciding to give based on their own personal research – usually research done online.

These donors are not as open to appeals and solicitations, because they are acting independently.

THIS MEANS: With donors researching you online, your web site has got to demonstrate credibility and impact. And you need a clear message about how donors’ gifts are used.

4.  Donors are rapidly evolving away from direct mail.

Burk sees a continuing decline in donors’ desire to transact their gifts through the mail.

Of last year’s direct mail donors:

• 26% said they plan to give less thru the mail this year,
• 1% said they were going to give more via the mail.

What is driving them away from direct mail?

• Over-solicitation.
• The perceived cost of fundraising.

THIS MEANS: With 2 out of 3 gifts still coming in via the mail, you need to continue to invest here. But don’t over-solicit!

5. Donors are increasingly favoring giving online.

The majority of donors in every age category said they’d give online this year:

• 86% of young donors
• 69% of donors between 35 and 64
• 53% of donors over 65

Online donors think giving online is cost effective. And fundraising costs are important to them.

THIS MEANS: Make sure your website has a seamless donation process. Be sure your gift form is easy to fill out.

6. Donors are changing the way they want to give.

They are more independent and choose how they will give, regardless of how they were solicited.

Even if they receive a direct mail solicitation, they still may go to your website and give there.

Burk found that one out of three donors who received direct mail, responded by giving online.

THIS MEANS: Direct mail will be increasingly important to online gifts.  Many donors on your mail list may be giving online in response to the mail appeal.

7.  Donors prefer electronic communications over print.

Burk found that 69% of ALL donors preferred electronic communication. What a sea change!

THIS MEANS: You need to sharpen up your internet communication skills – they are different than direct mail communication skills. Make sure your emails to donors are interesting and brief.

8. Donors are becoming more concerned about fundraising costs.

That’s what’s driving many of them online.

And many think that “token” gifts and premiums are too expensive.

THIS MEANS: You should be careful about token gifts, particularly those not closely aligned with your mission. Also be careful with obviously expensive mail appeals.

What do 2011 donors want?

They say they will continue to give because:

• you have a great reputation and appear trustworthy.
• you are achieving measurable results.

They say they’ll drop you because:

• Their priorities shifted to other causes (41%).
• They feel over solicited. (32%)

Are you ready to take advantage of these trends?

Hope so, because your fundraising results will depend on them.

You can access the Executive Summary of the Report or purchase the full report here.

So do you agree with these trends? Tell me why or why not with a comment!

What do donors want right now?

We know that donors in 2011 have cut back their giving and are focusing on fewer organizations than ever.

And they are looking for one thing more than anything else.

Donors are looking for IMPACT.

The big question they are asking is:

“What are you doing with my money?”

“Are you wasting it? Or are you making a difference?”

If you are not addressing these questions in your communications to your donors, you can expect a serious drop off in donor renewals. You don’t want that, do you?

So here’s what you give them – a report or better yet, a web page, called:

“YOUR GIFTS AT WORK”

Forget the boring “Annual Report.” (Research shows that donors don’t read them anyway.)

Instead give your donors EXACTLY what they want – information on how their gifts are used financially.

And tell them in no uncertain terms how they are making a difference in the world changing and saving lives.

All the research studies right now are showing that today’s donors are more “performance oriented” than ever – so give them performance data.

What to put on “Your Gifts at Work” web page:

Here’s what should be in your “Your Gifts At Work” report or web page. (BTW – make it the most important page on your web site too.)

1.    Pie chart on where the money comes from.

2.    Pie chart on where the money is going.

3.    Photo of cute kid (if possible) and a story about how your organization changed or saved their life.

A real-world example.

Check out care.org – I give them major high marks for putting the pie charts right there on their home page.

• CARE’s Programs by Activity
• How CARE’s expenses are Allocated

And actually one of the home page links (there are several) is a donation landing page.

Clearly this organization is all over state-of-the-art online fundraising. We can all learn lots of lessons studying their site.

Also, amazingly – right there on the home page, is a link to the Charity Navigator page  for CARE.  There you can find summary financials,  the name of the board chair, the salary of the CEO, and 3rd party ratings on CARE’s organizational efficiency.

Do you have the guts to put the Charity Navigator or Guidestar link for your organization on your home or donation pages?

Here’s an organization that understands “transparency.”

We’re all talking a good talk about transparency. But I am not finding many nonprofits that want to practice it.

But here’s the thing. If this is one of the most important factors donors consider when deciding whether to renew a gift, maybe you better put it into action.

Remember, today’s post-recession donors are different than the ones a few years ago.

Today’s donors want as much BANG for their buck as absolutely possible.

It’s YOUR job to tell them how you give them that BANG.

Your same old same old story about your organization isn’t going to cut it with today’s (and tomorrow’s) donors.

Try copying CARE’S site. It’s clearly a donor-centered site, a donor-centered portal for donations, and demonstrates a state-of-the-art donor-centered fundraising process.

Give donors what they want and they’ll reward you with continued giving.

No matter what’s going on in the economy.

Do you agree? Let me know with a comment!

Are you feeling the holiday overload?

I know I am. I’ve got 168 people coming to my house for my annual holiday party on Saturday pm! Yikes!

Needless to say, it’s busy in my office and my house today. (Want my eggnog recipe?)

So I only want to share two quick thoughts with you today:

1. Be Peaceful.

- Amid all the noise and haste, as best you can.

Take holiday time for yourself.

And allow yourself to feel the joy of companionship, the generosity of gift-giving, the connection with loved ones.

Remember those who have no family or who have lost loved ones and appreciate your own – with all their quirks and eccentricities.

Appreciate your many gifts of this season.

Breathe.

That way you can handle the many activities, priorities, demands on your time and your energy.

2. Call Your Donors.

You didn’t think I’d leave out a fundraising message, did you? : )

If you don’t do anything else this season, focus on only one thing.

Pick up the phone and THANK the wonderful folks who are making year-end donations to your cause.

Love Your New Online Donors!

Especially welcome your new on-line donors – they are most at risk.

You are probably experiencing a spike in on-line gifts right now (or at least I hope you are).

We know that retention of new on-line donors is particularly poor – especially compared with donors who give through the mail.

Plan to Send New Donors a Welcome Package in January

Have your board members call and say thank you. Since you have their email address (yes!), you can plan special communications to them.

Why not send out a “welcome” email the second week of January to your new on line donors and ask them why they gave?

Ask them to volunteer or to participate in an activity. Send them a survey to find out more about them. (Survey Monkey is pretty easy and inexpensive.)

But above all, call them!

Studies show the personal thank you phone call is a major factor in keeping your donor giving.

Donors Who Make Their First Gift in December Are Worth More Over Time

Studies show that donors who make their first gift in December tend to give more over time and are worth far more as donors.

The Chronicle of Philanthropy discussed a study last week with some interesting stats on new December donors.

The study, published by Network for Good, found that over three years, the total amount they give is 52 percent higher than people who start giving at other times of the year.

The full report, “The Online Giving Study: A Call to Reinvent Donor Relationships,” can be found at http://www.onlinegivingstudy.org. I highly recommend it!

Ok, that’s all the fundraising for today!

To Cure Overload, Remember To:

1. Be as peaceful as you can in this season.

2. Focus on calling your donors!

Hope you are having a wonderful holiday season – and wish me luck on my party tomorrow! : )

Would love to hear your comments!

Do you like a little personal encouragement like I did in this post, in addition to the fundraising advice? I do myself but do you?

Holiday giving is expected to be over $48 billion this year, and at least $6 billion will be online, based on a new study by Convio.

43% of donors will give via direct mail and 21% from online appeals.

And 40-60% of those online gifts will be made in the last two days of the year.

Don’t forget that online donors are  wealthier, higher-dollar and younger donors.

Here’s what they are looking for:

1. They want to feel good about their gift.

Remember that your donor is making a personal, emotional statement with their gift. They are not shopping for hardware or bath towels.

Talk a lot about the good they are doing. Put evocative photos on your donation page.

Make your post-gift finish page warm and fuzzy. Send a lovely thank you note that touches their heart.

2. They want to feel connected to the cause.

In the Convio study, 74% of people said they responded most to emotional solicitations that provide info on the people, animals or places in need of their assistance.

Get yourself and your organization out of the way.

Don’t ask for your organization, instead ask donors to help the animals, trees, kids, sick people, students, artists, whoever you are serving and helping.

As I like to say, “You gotta play that violin” and make the emotions stir!

3.  They want to know where the gift is going.

They want to know exactly what their gift is accomplishing – and the impact it will have. Lay it out clearly and don’t mess around.

Recap your outcomes and accomplishments for the year, and let them know what’s next.

Be specific.

4.  They want holiday gifts that will support your cause.

Help your donors make gifts, and offer easy shopping for nontraditional gifts. Try these opportunities:

• “Last minute holiday gifts” – promote gift memberships that your donors can give to others.  The World Wildlife Fund sends a “Last Minute Ways to Say Happy Holidays” e-mail that suggests adopting an animal on someone’s behalf online.

• “Avoid the crowds and shop at home” – buy from our shop on line and ship to those on your gift lists.

• “Holiday e-cards for your family and friends” – a green alternative that can promote your nonprofit AND carry a donation to your cause.

5.  They want to be reminded.

It’s ok to remind your loyal donors about the need and how they can help.

They’re busy, busy, busy.  And repeating your appeal is always more powerful and successful than a single ask that goes out as a stand-alone effort.

Check out this sample year-end email campaign that had three messages going out the last week of the year:

• December 23: a “holiday support” email
• December 29: an email emphasizing tax deductible giving opportunities
• December 31: a final “last chance to donate” email

6. They want choices.

And all donors have a different vision of how they want to help you and how they want to give.

So be sure to offer them a variety of ways to support you and different giving opportunities all tied to specific results your organization achieves. .

7.  They want an uncomplicated check out.

Remember that a majority of would-be donors never make it through the process to complete their gifts. Some stats show that 98% of visitors to an organization’s donate page do not complete their gift.

Make your donate page seamless and easy to whiz through.

Check out this list of the 11 Deadly Sins of Donate Page Design from Seachangestrategies.com.  Be sure you avoid these common mistakes in nonprofit donate pages:

• Cluttered pages
• Unintuitive layouts
• Unclear directions
• Too long, complex forms
• Unnecessary fields
• No address or phone number
• Error messages are confusing

8.  They want back up data on your results.

Be sure your web site is up to date and conveys credibility.

Remember that over 65% of ALL DONORS will probably check out your web site before they write a check or make a gift, according to Kivy Leroux Miller of nonprofitmarketingguide.com.

Here’s my list of the Top 10 Things donors want from your website. And be absolutely sure that your call to action is clear, concise and directive!

9.  They want to donate quickly.

Make it easy for impatient online donors who are in a hurry.  If you make it difficult for them, they’ll be gone – probably to another nonprofit’s site.

Make your home page on your site optimized for donations. Put an extra large “donate now” button right on that page. (Yes, size does matter!)

And try adding a photo on the inside of the button so that it has a human face.  (Dogs and children are wonderful.)

Check out Network for Good’s three tips for the best donate button: make it big; put it above the fold, and create a simple, easy-to-use contribution form.

10. They want it simple.

Since they are busy, busy, busy, don’t over complicate your site or the ask. People visiting your site at year-end are there for one purpose only – to give.

Put the ask right up front and make it easy for them.

These strategies will help you bring in lots and lots of online gifts. Before you know it you’ll be zooming past your fundraising goals for year-end!

Happy prospecting and may generous donors flood in to your site and your cause!

Please leave a comment and tell me what you think!

Did you know that 40% of on-line donors give in December?

It’s not too late to design the right kind of e-fundraising effort that will actually touch the hearts of your on-line donors right there at the end of the year.

The last two days of the year are critical!

Even more interesting, 40% – 60% of those on-line donations will come in the last two days of December.

Can’t you just imagine all those e-gifts streaming into your account right there at year-end? What a sack of presents to greet you!

What will it take to get there?  It’s clearly not too late to craft a sizzling email campaign that will to reach those donors.

The psychology of on-line giving is quite different from donors who give through the mail.

Attention spans are far shorter. Copy must be lively.  Web sites need to be alive, and get updated often.

Just getting your folks to open your email is an art that you need to study carefully.

1.  Use a matching or challenge gift.

Study after study show us that these challenges inspire donors to give more and to give within a specific deadline.

2. Use multiple appeals building on each other.

Plan your emails the last week of December according to this schedule:

• December 23: a “holiday support” email
• December 29: an email emphasizing tax deductible giving opportunities
• December 31: a final “last chance to donate” email

3. Create an extra large “Donate Now” button.

And plaster it on your home page.

A recent study I read showed that buttons draw more “click throughs” than simple links. So use a nice pretty button!

4. Change your home page to a donation page just for the end of the year.

Why not? If this is the one time that on-line gifts spike, why would you not want your web site to capture any donors it can?

Put that call to action and that “donate now” button right up front!

Join me for my next webinar on Tuesday at 1pm when I’ll drill down into exactly how to talk to the year-end donor.

We’ll review what year-end donors are looking for in 2010, and how to give it to them.

I’ll also discuss some successful e-appeals that brought in the cash for their organizations.

Find out more or register for the webinar right now. If you can’t attend, you can still have the audio recording and the slides to review at your convenience.

The price is only $59.00, and you’ll be able to bring in much, much more than that with these strategies this year-end.

AND please leave me a comment and let me know if these are helpful! Better yet, share your own top year-end strategy.

Here’s to a wildly successful year-end for you!