One of the basic principles of fundraising is the donor-focused approach. This involves focusing on your donors through using the concept of market segmentation. This will help meet their meets and answer the donor’s question: how will my contribution make a difference? Here are four ways to improve your segmented fundraising campaign.
Revise the Value Statement
The donor’s value statement must directly appeal to the donor. Donors, like consumers, are also shopping for bargains and value added exchanges. The business world refers to this concept as a value proposition – what does the customer get for what they paid? Donors want to experience how their contribution personally impacts people, the community or the environment. Therefore, the value statement must succinctly explain to the donor how their contribution will make a difference. Ultimately, the value statement should answer the question, “and “what’s in it for me?”
Involve Donors in Every Step
Donors shouldn’t just be solicited for funds and then informed much later of the final results. Donors have basic philanthropic rights, also known as the Donor Bill of Rights. Donors must have access to financial information and Involve the donors throughout the fundraising process. Donors should be greeted and educated in an introductory meeting and continually inspired with updates and opportunities for hands-on involvement. Finally, they should be rewarded with a thorough, media-rich follow-up on how their contribution made a difference. A well-made video shown during a thank you ceremony offers excellent closure to donors.
A Big Thank You
As mentioned above, saying thanking you provides closure to the donor. According to the National Council of Nonprofits, a written thank you letter is actual important for the donor because of IRS tax requirements. That is, the IRS requires documentation for any single contribution amounting to over 250 dollars. Donors need a detailed letter that provides the tax-empty charity name, amount and date donated and a statement that implies that nothing was received in return for the gift. While this isn’t’ required for contributions below 250 dollars, consider sending all donors an official letter to ease their tax difficulties while offering a heartfelt thank you.
Like regular businesses, donors are customers that can be grouped into certain demographic segments. Both donors and customers are real people, not just monetary transactions. Therefore, the fundraising campaign will need solid demographic data that helps the non-profit organization truly understand their donors’ motivations, expectations and backgrounds. As a result, the non-profit will be able to provide a personalized experience and customized information. For example, basic segmentation can be divided between new and returning donors who contribute at or below average amounts and new and returning donors who contribute above average amounts.
To sum up, improving market segmentation will increase the effectiveness of fundraising efforts. This can be done through personalizing the value statement, involving the donors throughout the process and offering a written thank you. Finally, proper market segmentation depends on real demographic data and analysis.