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Posts Tagged ‘Association of Fundraising Professionals’

Diversity Requires Effort, Not Merely a Posture

Wednesday, January 18th, 2012

Nonprofits know they need to better diversify their marketing efforts.  New research shows that most companies do a poor job of advertising to ethnic minorities.  (When asked for an effective brand, most respondents couldn’t name one.)

To ensure that your nonprofit is in the forefront of constituents’ minds, what can you do? It will take more than being available for them to contact, donate and volunteer!  You will have to learn how to appeal to the various segments of people in your target markets.  Most likely, they each have their own special wants, needs, likes, dislikes and preferences.

In addition to understanding the ethnic makeup of your supporters, many other demographics are necessary, but it doesn’t stop there – and you shouldn’t presume to know without due diligence.  Many people will make assumptions about age, for example, rather than doing research.

A common misperception has to do with age and technology.  Often, people take for granted that Boomers (and older) are not online, don’t donate online and don’t use cell phones, texting, etc., while Millenials are the primary consumers of all things technical, leaving those in between somewhere in the middle.  This is a dangerous assumption, not to mention full of holes.

Research is showing that smartphone penetration is not only increasing across all markets, but Gen X and Y account for the largest market share.  In addition, all segments donate online, and Convio’s The Wired Wealthy study dispels myths about online gifts only coming from younger, smaller donors.

When looking at differences between the genders, it’s been established that women – particularly wealthy women – drive the philanthropic decisions in most households, so particular attention must be paid here, not only to the type of appeal, but in details such as follow up, acknowledgment, etc.  It’s important to most women donors that they learn about how their donation is being used and what affect it has had.  Not providing personal, meaningful feedback is a sure way to lose women donors.

A subset of Millenials has been identified recently – the Post88s.  GirlApproved has identified this demographic as a separate segment of female consumer/donor who responds differently than her predecessor, and therefore, will require a different marketing pitch.  Would you agree?

Another thing we know is that women spend more time on social networking than men do, while men spend a greater amount of time watching videos online, and the amount of video consumed is increasing substantially.  These are things to keep in mind when preparing your campaigns.

You still may have a couple of annual or semi-annual appeals that you want to send across the board, but clearly, it will help to really study your constituents and understand how they exist in smaller clusters of people, too.  Have they been long time supporters for years, or are they specifically donors to your XYZ fund?  Do they always attend your spring event?  Are they inclined to volunteer?  What sets them apart from other constituents?  How do they typically respond?

The need for segmentation was recently demonstrated by a Dunham + Company study which showed that email length and relevance were the most important factors compelling donors to either respond or disengage from a campaign.  Surprisingly, frequency of communication was not among the complaints found.  Effective, targeted – and concise – messaging is what’s most desired.

Diversity also includes more than ethnicity, age and gender.  How accessible is your organization to people with various disabilities?  When you hold an event, are you certain that it is wheelchair accessible?  Do you ask on your registration forms if attendees will need interpretive services for the deaf?  What about your website?  You may be planning to make it mobile-friendly in 2012, but what about making it equal access for the blind?

Of course, a nonprofit that does or doesn’t dedicate itself to true diversity in marketing most likely has a parallel situation internally.  Much of the problems an organization has with their prospecting approach begins with internal issues, such as lack of diversity with their staff and board.  This hasn’t changed much over the years.

When all the ideas are coming from one type of perspective, it’s not surprising that there’d be a homogenous approach resulting from the organization.  There’s even a greater danger when all the power is resting with one set of individuals over another, staffing-wise.  This is when power corrupts.  Diversity has many benefits.

Marketing with old stereotypes and assumptions just won’t cut it any longer, even if you do segment.  Consumers and donors are more demanding now.  If you want them to remember you (fondly), you’ll have to work for it.

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Keep the base of the pyramid strong

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The Light at the End of the Tunnel

Wednesday, December 21st, 2011

For many nonprofits, this year-end is faring much better than the despair of last December, when there was far less a chance of exceeding the previous year and more thoughts of, “I hope we can match what we earned before!”

Of course, this isn’t the case for every organization, but early indications are quite favorable for the majority of nonprofits polled recently.

Having struggled through these past few years of the recession has forced charities to become leaner and strategize in new and more creative ways.  Many have also taken a long hard look at available research, to see what indicators will help them better serve their constituents.  Even better is taking time to review your own organization’s data, since it may vary from institutional trends on occasion.

One undeniable successful strategy is to combine appeals and have a multichannel approach.  Most nonprofits now realize that putting donors into “silos” is an inaccurate – and lower earning – method of fundraising.  It’s certainly challenging to manage multiple points of reaching out to donors, particularly when they continue to expand, but the organizations that do it best see the most promising results.

Of course, in addition to adding social media channels (and deciding how many to have!), nonprofits now need to decide when (not if!) to add mobile to their campaigns.

The term mobile itself brings an onslaught, too, since this encompasses a variety of possibilities, from converting the organization’s website to be mobile-friendly, to providing text messaging, apps, donations by mobile (and there are choices just within this), and more!

Again – integration is the key.  Social media is best integrated into what you’re already doing in your campaign, such as an event.  Parts of your mobile appeal(s) can be added to portions of your existing campaign as well, making it an enhancement to something already familiar.

Above all else, though, is the donor.  Cultivation and showing appreciation are key.  However, many nonprofits are unaware that they may not be displaying enough of their attention in the right direction.  New research has shown that in 90% of high net households, women are either the sole decision maker or equally involved in philanthropic decisions.

Women donors want to be more directly involved in their charitable giving and need to see and know that their contributions are making a meaningful impact.  This is important information to know when crafting appeals, annual reports, etc. for donors.  It tells us to write more about personal accounts and the significance a gift has had on the life of a recipient, rather than something resembling a balance sheet.

The more we learn about how to better serve our constituents, meeting them where they are – psychologically and technologically – the more successful we’ll become at acquiring and retaining our donors, not to mention increasing their commitment to the organization over time.

With the early results looking so promising, it seems that many organizations are becoming quite skilled at moving to “where the donors are,” rather than the previous model of telling them to “come over here.”

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Keep the base of the pyramid strong

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