Acknowledging Donors

I remember a birthday when I was seven or eight years old, and I was whining about the "chore" of writing thank-you notes for the gifts I received. My grandmother told me quite firmly, "Catherine, a lady always sends thank-you notes!" I've been writing them ever since—without the whining!

We all know that thanking our donors is more than good manners—it is a critical part of the donor relations process. All too often we tend to think of the thank-you letter as the end of the process: We work hard to engage the donor and ask for the gift, then once the gift is received, all that is left to do is to send the official letter thanking the donor and include the appropriate language regarding tax deductibility and voila—we're done!

A focus on continually building relationships with donors leads to that Holy Grail of fundraising—donors who renew their gift each year and, hopefully, increase their giving over time.

Hold on, not so fast. To build a strong fundraising program, we need to think of the thank-you as just the beginning of a process to engage donors even more deeply in our organizations.

I particularly admire this quote by Claudia A. Looney, senior vice president of development for Children's Hospital Los Angeles, about the importance of donor acknowledgement in the donor relations process:

"How we say thank you is a reflection of the character of the institution, judgment of the staff and board, and a predictor for our future fundraising successes. Donor recognition helps bind our donors to our institution."

A focus on continually building relationships with donors leads to that Holy Grail of fundraising—donors who renew their gift each year and, hopefully, increase their giving over time. In her report, Donor Centered Fundraising, researcher Penelope Burk details three things donors report they want from the nonprofit organizations they support. If they can get these three things, Burk says, they will continue their support and increase their levels of giving:

• Prompt, personalized acknowledgment of their gifts

• Confirmation that their gifts have been put to work as intended

• Measurable results of their gifts prior to being asked for another contribution

Creative donor acknowldegements go far beyond one simple than-you letter and provide opportunities to satisfy the donor's need in each of these three areas.

The Donor Acknowledgement Letter—Basic But Not Blasé

After you receive a gift, it is a given that you must send a timely, meaningful thank-you letter. Here are some tips for making your donor acknowledgement letters more effective:

• Aim to get the letter in the mail within two days or, at most, a week from receipt of the gift.

• Personalize it with the donor's address and appropriate salutation.

• Sign it by hand—no digital signature allowed!

• Develop an engaging first sentence. Most nonprofits start their thank-you letters with, "Thank you for your gift of $X received on Y date." Make the letter more engaging by involving the donor. For example, "You are a hero...", "You have made our season!" or "You helped us achieve....!" Another technique is to use "When-You" sentences: "When we needed you most, you responded." Or, "When [name of your chorus] takes the stage at XYZ concert hall, you can feel proud that you helped make this exciting concert happen!"

• Remind the donor how the gift will be spent.

• Invite the donor to become more involved. For example, invite the donor to an upcoming chorus rehearsal and include a contact person's name/email/phone in the letter.

Seven Times Is the Charm

There is an old Chinese saying that you should thank someone seven times when they give you a gift. Today, many fundraising experts have adopted this concept as a Golden Rule in donor relations. Seven different types of thank-yous may seem like a daunting task, especially for a small organization. However, you can build donor acknowledgement into many activities, from sending newsletters or annual reports to hosting social events. Think of "the seven" as a guideline to help your organization develop a more effective donor relations plan for the year.

There are a variety of methods to use, and allowing a little time to lapse between each contact shows the donor that you haven't forgotten them and that their gift continues to be valued and important. Another benefit to planning a series of thank-you activities is that it creates opportunities to involve your board members and your singers in the donor relations process. This is ideal for those who are reluctant to ask for money—they can participate in the larger process of fundraising with no ask required!

Cliff Schiappa, development director of Kansas City's Heartland Men's Chorus, says that Heartland uses a variety of methods to maintain its loyal core of supporters. "One simple method that has proven to be successful is handwritten thank-you notes to each donor from a board member," says Schiappa. "We distribute thank-you cards to board members and devote the first 15 minutes of each monthly board meeting to writing notes to our donors. I've heard comments from donors saying they appreciate the personal touch coming from the board."

"Cantare Children's Choir in Calgary has a long tradition of acknowledging donors who support our tour," says founder/artistic director Catherine Glaser-Climie. "We send them a postcard while on tour. The postcards are written by the choristers themselves thanking the donor for their support and sharing briefly some of the experiences on the tour and what it means to the individual chorister to have the chance to be part of the experience. It is personal and includes the donor in a 'bird's-eye view' of the trip—and who doesn't enjoy receiving happy mail?!"

Ideas for seven thank-yous

• Hand-written note
• Personalized, printed letter
• Phone call from executive director or chorus manager
• Email
• Call or note from the artistic director
• Call or note from a board member
• Invitation to a special event or rehearsal
• Special recognition at a concert—from the stage depending on the size of the gift or in the program book
• Note from a singer or an audience member (like a student) who benefitted from one of your programs
• Photograph of your chorus in action—signed by chorus members with thanks
• Written update about the use of the donor's gift
• Holiday card signed by chorus leaders and/or staff

Adapted with permission from Sandy Rees, CFRE, http://getfullyfunded.com

Simple gifts

Simple gifts can have a high impact as well, as The Heartland Men's Chorus has discovered. "We placed a small box of four artisan chocolate truffles at the seat of each new season subscriber prior to our holiday concerts with a brief note thanking them for committing to us for a full season," said Schiappa. "When we were working on finding patrons for our annual Garden Party fundraiser, we placed a bottle of red wine with an attached invitation at the seats of previous Garden Party patrons thanking them and asking them to be a patron again this season. For those who did not attend the concert, we delivered the bottle to their home. The result was a lot of positive chatter about our method and a very high response rate. We also delivered some bottles to folks who we thought would be interested in becoming new patrons, and they responded affirmatively as well. "

Donor recognition events

Donor recognition events can help generate excitement for the coming season and future special projects. "VocalEssence in Minneapolis kicked off a new program, Donor Appreciation Luncheons," says Katrina Vander Kooi, associate director of development. "The goal of the luncheons is to thank our loyal and generous contributors while giving them a little 'sneak peek' at our upcoming season. With three scheduled luncheons over the course of the year, we are able to connect with and cultivate both individual donors and corporate and foundation partners. The program will become an annual series at VocalEssence."

Keep in mind that thank-yous don't need to be costly—just sincere, meaningful, and frequent! Have fun thinking up new ways to thank your donors, show them the impact of their investment in you, and keep them involved in your future.

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This article is adapted from The Voice, Fall 2010.