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Family, friends are No. 1 influencer to charity donors
By June Bradham
Nonprofit Development
Q. I’ve read a lot about word-of-mouth marketing in the for-profit world. Does it have any place in the nonprofit world?
A. Without question. A number of other Business Journal columnists have written pieces about this underrated but highly effective technique and I’ve seen it in action enough times to say that without a doubt, when it comes to charities, what family and friends recommend is the No. 1 influencer on where a donor gives.
Cone Communications, a Boston-based firm whose expertise lies in cause marketing and branding, recently released a study which indicates that family (at 77%) and friends (at 64%) are the most likely to influence an individual’s decision to support a cause or charity. Ironically, for as much face time (and column inches) as they get, celebrity opinions matter least to people trying to choose a cause. Only 15% said what Leo and Brad support affects their decision.
Does this study mean shelving direct mail, e-philanthropy, phone calls or branding as a means for reaching your desired potential donors? Absolutely not. The above study also noted that, while people rank things like direct mail somewhere in the middle of available marketing, they still think it’s “very effective” in communicating a message.
We’ve found in our own experience that while stories in newspapers and magazines have nearly zero effect on fundraising efforts (whether the stories are positive or negative) keeping your name and mission in front of the public keeps your mission top of mind.
Still, knowing that family and friends are donors’ biggest influencers should make your job easier. Make sure that your current donors are also your biggest champions. If Grandfather gives $100,000 a year, make sure he’s informed enough to speak intelligently and passionately about your organization. If he does, it’s only a matter of time before his children become donors, his friends become donors and a tradition of giving (to you) is established for generations of future donors.
Q. I’m about to retire and, after years of giving conservatively to a few nonprofits, I want to do more. Where should I start?
A. The New York Times, The Wall Street Journal and The Chronicle of Philanthropy have all defined in recent articles the notion of a “hands-on donor.” The idea is that today’s philanthropists is not content to just write a check, write it off on their taxes and then not think about the charity until next November.
Instead, today’s philanthropists are rolling up their sleeves and getting involved. Of course a full-color example of this is Bill and Melinda Gates, who travel regularly to Africa where much of their foundation’s money goes. While some donors’ net worth allows for this level of hands-on interaction, many more don’t, but they are still jumping in with both feet and many suddenly feel they are up to their neck in uncharted waters.
One common experience when researching which charities to support is that there are just so many worthy causes. Some donors feel compelled to give a little bit to dozens of organizations because, well, how could they not?
Generally, this will result in feelings of not giving enough to the organizations you really feel strongly about and also a portfolio that is much more difficult to manage.
I’d recommend two things before you get stared. The first is to sit down and figure out your core philosophy.
What is truly important to you? If it’s feeding the poor, ask yourself if it’s wiping out hunger in Africa or bolstering a soup kitchen in Charleston that would fulfill you most. If it’s the environment, think about if that means green building or polar bears.
Stay focused and your energy, and gifts, will be much better served.
My second recommendation is to get help. There are foundations for emerging philanthropists which offer workshops and financial institutions that are offering advice on nonprofit “investments,” but probably the best way to be sure about a charity is to visit it.
“Visiting a nonprofit you’re considering giving to offers a chance to participate in an activity and meet key staff, and also provides ample opportunity to ask questions,” said Barbara Kelley Duncan, CEO of the Carolina Youth Development Center.
Internet research is great but there is simply no substitute for personal visits and candid conversation.
Duncan also suggests: “Before writing a large check, you should be given a copy of the agency’s most recent financial audit and encouraged to review the IRS Form 990, which they can view online.”
Just as you would research an investment you’re considering, make sure the charity you have in mind is financially sound.
As this new type of philanthropist emerges as the norm, I’m certain there will be ever more advice available. In the meantime, good luck and welcome to the full-time world of philanthropy.
June Bradham is the president of Corporate DevelopMint, a full-service fundraising consulting firm with offices in Charleston, Greenville, Blowing Rock, N.C., and Memphis, Tenn. Send questions to cdm@corporatedevelopmint.com.
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