As I See It: Annual Giving: Small Potatoes or Top Priority?
I got a call from an organization after making a $100 first-time gift on North Texas Giving Day. The nonprofit’s Vice President of Advancement called to say thank you the very next day. That call didn’t take much of her time, but it was meaningful to me, and it began a real connection to the organization that continues today.
Whether you call it the annual fund, annual campaign, or something else, where does annual giving rank in your organization? Is it small potatoes? Or is it a top priority? Hopefully, it’s a top priority for everyone who’s interested in growing philanthropic support for your organization because it’s the foundation for everything in fund development.
The “small potatoes” perspective may view annual giving as “less than” because it is the realm of first-time donors and modest transactional gifts made online, through the mail, or at events. This approach can be harmful because an organization’s annual fund is the heart of the development program. Annual giving touches the majority of an organization’s donors, some of whom would welcome opportunities to learn more about what you do or to become involved in a bigger way.
Here are three reasons to make annual giving a top priority in your fund development program:
Annual donors are more likely to give again and again when you’re connecting with them regularly and communicating the impact of their support. With acknowledgement and stewardship practices in place that are efficient for you and timely and personal for them, donors are likely to feel appreciated and confident in your organization’s ability to manage donations well.
Studying the annual giving habits and trends in your organization will help you discover the donors who care most deeply about your mission; these donors may include potential volunteers, prospective board members and great ambassadors for your cause. Donors with a history of many years of giving, even small donations, are some of the best prospects for planned giving, too.
With good stewardship and awareness of opportunities to invest more in your organization, some annual donors increase their giving over time and become major donors. In other words, annual donors are the pipeline for your major gifts program. This is why everyone, even major gift officers, should take an interest in the health of your annual giving program.
Evaluation of your data is an easy way to discover annual giving trends in your organization. This also will help you identify donors you’d like to engage in new ways beyond transactional initiatives. Consider this:
Explore total gift count, regardless of amount. Select a time frame for giving – perhaps the past 10 years — and sort all donors based on gift count. The donors at the top of the list are your most loyal donors. Do you notice any names you don’t recognize? Would your development committee or board members know them?
Review first-time donations that meet a chosen threshold that’s higher than the average first gift. Whatever the amount is — $100, $500, or more – make sure you’re aware of these donors.
Examine cumulative (lifetime) giving along with the date of the last gift. You might be surprised to discover how much your annual donors have given over time. You also might find some who have given significant amounts in the past, but not recently.
Once you get started, you’ll think of new ways to evaluate your data. Take into consideration consecutive years of giving, one-time gifts of $500 plus or $1,000 plus, and more. As you drill down to individual donors, hopefully you’ll find details around their gifts – to which initiatives or appeals did they respond? What relationships do they have with others in your organization? Who has not given in a few years and why?
Studying the information in your database is an exercise worthy of your time. Giving trends help you assess what initiatives have been successful in the past, what no longer works, and what you should do going forward. Additionally, predictive analysis (artificial intelligence or A.I.) can help you with this important work. As this technology becomes more prevalent, nonprofits and fundraisers who use it will better understand their donors and be positioned to develop approaches that resonate with them.
No matter how you approach this study of your data and donors, the fun part comes when you plan your next appeal – or your next steps with individual donors – based on what you’ve learned. Annual giving holds continuous opportunities for growth and improvement, and that’s one exciting part about it. It’s ongoing, every day of every year and there are always new donors to engage and invite to join your cause.
Karen Perry, CFRE, is the Director of Consulting Services at M. Gale & Associates. Karen brings extensive nonprofit fundraising and leadership experience to her work with M. Gale & Associates clients. The foundation for Karen’s consulting practice is more than 10 years in lead development roles with two organizations in Atlanta, Georgia, where her experience included annual giving, major gifts, grant writing and events, as well as marketing, strategic planning, planned giving and capital campaigns. Prior to joining M. Gale & Associates, Karen was an independent fundraising consultant specializing in small shop fundraising, coaching, development planning and grant writing.
