How do you relate? Building Healthy Fundraising Relationships
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This document discusses building healthy fundraising relationships through effective relationship management. It defines relationship management as the process of managing relationships between an organization and its internal and external stakeholders. Strong relationships are built on trust, commitment, and two-way communication rather than one-way communication. Nonprofits are encouraged to consider different engagement approaches for different donor generations. The document also discusses listening to donors, avoiding conflicts of interest, and handling ethical situations regarding donor trusts, gifts, and medical information appropriately according to AFP guidelines.
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How do you relate? Building Healthy Fundraising Relationships
- 1. How do you relate? Building Healthy Fundraising Relationships Lisa M. Chmiola, CFRE AFP New Orleans August 9, 2018 @houdatlisa #AFPrelate
- 2. What is relationship management? The process of managing relationships between an organization and its internal and external publics. Ledingham, via Encyclopedia of Public Relations (2005) #AFPrelate
- 3. What is relationship management? One-way communication Two-way communication Transactional engagement Relational engagement #AFPrelate
- 4. Why relationship management? • Nonprofits lose more than half their donors each year. • 80% of nonprofits use gift amount as the primary – and often, only – data point for planning donor communication and fundraising campaigns. Abila Donor Engagement Study, 2015 #AFPrelate
- 5. How to build relationships The standard management model mirrors the donor lifecycle: Analyze = Identify Plan = Cultivate Implement = Solicit Evaluate = Steward Ledingham via Encyclopedia of Public Relations (2005) #AFPrelate
- 6. Relationship building elements Among other factors, strong relationships include: •Trust •Commitment •Communication Psychology Today “7 Building Blocks of a Great Relationship” 4/16/17 #AFPrelate
- 7. Engagement ≠ One Size Fits All Consider different approaches for donors in each generation (top 3 ways each feels most involved): Millennials: volunteering, giving, personal stories Generation X: giving, volunteering, personal stories Boomers: giving, personal stories, volunteering Matures: giving, updates/accomplishments, personal stories Abila Donor Engagement Study, 2015 #AFPrelate
- 8. Let’s listen! Take turns telling a partner a 2-minute story about your favorite donor or volunteer. Why is he/she your favorite? How did you begin working together? Why is he/she important to you and your organization? The more specific, the better! After time is called, the listener will paraphrase the story, and the storyteller will provide feedback. Then switch sides! Guidestar: Blog #AFPrelate
- 9. Let’s listen! • What did you learn? • While your partner was speaking, what did you find yourself doing other than listening? How might you address that tendency in the future? • What can you do when you visit a donor to make sure you really listen? Guidestar: Blog #AFPrelate
- 10. Ethical relationship building • Confidentiality – #10: Members shall protect the confidentiality of all privileged information relating to the provider/client relationships. – #17: Members shall not disclose privileged or confidential information to unauthorized parties. • Avoid conflicts of interest – #2: Members shall not engage in activities that conflict with their fiduciary, ethical and legal obligations to their organizations, clients or profession. – #3: Members shall effectively disclose all potential and actual conflicts of interest; such disclosure does not preclude or imply ethical impropriety. #AFPrelate
- 11. Ethical relationship building • Avoid using relationship for personal/organizational gain – #4: Members shall not exploit any relationship with a donor, prospect, volunteer, client or employee for the benefit of the members or the members’ organizations. – #23: Members shall neither offer nor accept payments or special considerations for the purpose of influencing the selection of products or services. #AFPrelate
- 12. Case Study #1a In your old job with a highly regarded, financially stable organization, you developed a close working relationship with an elderly couple who set up a revocable trust with the organization. You then move to a new organization whose financial situation is somewhat shaky. Several months later the couple comes to you and says that because they have such confidence in your ability to look after their interests, they want to revoke the original trust and set up a new one through you with your new organization. What should you do? 1. Accept the offer on behalf of your new organization. 2. Reject the offer. 3. Ask the CEO of your new organization to make the decision. 4. First clear the offer with the general counsel of your new organization to be sure the trust can be revoked legally. AFP Sample Cases for Ethics Education #AFPrelate
- 13. Case Study #1b In your old job with a highly regarded, financially stable organization, you developed a close working relationship with an elderly couple who set up a revocable trust with the organization. You then move to a new organization whose financial situation is somewhat shaky. Several months later the couple comes to you and says that because they have such confidence in your ability to look after their interests, they want to revoke the original trust and set up a new one through you with your new organization. Suppose the couple proposed to make a major gift to your new organization without revoking the old trust. What should you do? 1. Accept the offer on behalf of your new organization. 2. Reject the offer. 3. Ask the CEO of your new organization to make the decision. 4. Ask the couple to deal with someone else in your new organization. AFP Sample Cases for Ethics Education #AFPrelate
- 14. Case Study #2 You are friends with some of your donors through various social media networks. You notice one of your major donors checks in at a doctor’s office. You know that the doctor is a specialist for early onset dementia. You happen to have a meeting with the donor set for the following week to solicit a major gift. According to the AFP Code, what should you do? 1.Ask the donor about the visit to the doctor. 2.Tell your colleagues about the check-in and ask their advice. 3.Say nothing to the donor or anyone else. #Frethics presentation, Tinker/Chmiola, AFP ICON 2015 #AFPrelate
- 15. Case Study #3 Suppose an elderly major donor has bought you a gold ring as a thank-you gift for helping arrange a planned gift of $1 million to your organization. You know the donor and know that the donor would probably be offended if you turned down the gift. According to the AFP Code, what should you do? 1.Thank the donor and explain that the AFP Code forbids accepting gifts from donors. 2.Thank the donor and explain that AFP Code requires that all gifts must be disclosed to the CEO and the Board, and you may not be able to accept. 3.Accept the gift. 4.Use your best judgment. The Code is silent on the subject. AFP Sample Cases for Ethics Education #AFPrelate
- 16. Lisa M. Chmiola, CFRE houdatlisa@gmail.com www.fablanthropy.com 713-470-8677 #AFPrelate
Editor's Notes
- Moving from fundraising to philanthropy: from achieving a singular goal to forming a partnership
- In earlier days, public relations practitioners saw communications pushing out from the organization to the publics, as a way to try and influence. Similar to the early days of fundraising which were focus solely on “begging” the public to help the needy organization.
- The same could be said for philanthropic development; we often begin with transactional communications (support a day, attend an event) but to truly influence meaningful giving, it needs to become a relationship where both sides impact the other. It’s a move from needy to worthy, and demonstrating return on investment and wise use of funds are important.
- The study found that donors and organizations wanted the same thing – success of the organization. They are misaligned about how to get there, particularly in the way of communication, especially when considering generational wants.
- Relationship building takes time. Can you implement this process with EVERY donor and volunteer in your organization? No, not immediately. But who are your top 10 donors and/or volunteers? Where are you in the process with them? What steps can you take to move them to the next stage of the cycle? (Solano story) What activities can you do at each of these stages? (visits, notes, articles, sharing impact)
- Not different than our personal relationships, our donor relationships also require an investment of effort. Critical to the process: Trust: do what you say you will, and don’t misrepresent the organization. We’ll get into this more in the Code of Ethics. But even more critical is that your organization as a whole must operate ethically. Commitment: follow-through, or lack thereof, is often a complaint from donors. If a donor asks a question and you don’t know the answer, be sure to obtain it and circle back. Offer a timeframe to check back in after visits on next steps. Communication: listen, listen, listen! Journalism background-interview them. We’ll do a listening exercise later to give you a chance to practice being on both sides of the table.
- Abila surveyed about 1300 individuals and 200 organizations in 2015 about donor communications and engagement. Looking at this, what kinds of activities would you encourage for each? Younger generations = more collective actions, older = more passive ways. Have you considered surveying your donors to find out how they want to engage and work to build relationships based on that? (Holcombe story-no events)
- Confidentiality-protect your donors; they often share sensitive information. Don’t gossip with colleagues in or out of your organization about what you learn from them. Conflicts-if you have a relationship with a donor outside your organization (or from a previous job), you aren’t their best contact for philanthropy. This also incorporates #8 about establishing the relationship at the onset. Avoid gain-can be as simple as not asking celebrity donors for autographs you’ll then sell on eBay; but also need to be mindful of accepting gifts from individuals or organizations wanting to influence vendor relationships.
- Confidentiality-protect your donors; they often share sensitive information. Don’t gossip with colleagues in or out of your organization about what you learn from them. Conflicts-if you have a relationship with a donor outside your organization (or from a previous job), you aren’t their best contact for philanthropy. This also incorporates #8 about establishing the relationship at the onset. Avoid gain-can be as simple as not asking celebrity donors for autographs you’ll then sell on eBay; but also need to be mindful of accepting gifts from individuals or organizations wanting to influence vendor relationships.
- Answer: Reject the offer. Accepting the offer violates numerous AFP Standards including Standards #1, #2, and #3, but most directly #4 which prohibits exploitation of any relationships with a donor, prospect, volunteer, client or employee for the benefit of the members or the member’s organization.
- Answer: Ask the couple to deal with someone else in your new organization, and disclose your prior relationship with the couple to your current CEO. There is nothing fundamentally problematic in this scenario, but there is a danger of an appearance of impropriety, and the possibility of an appearance of misuse of information obtained while in the employ of your former organization. In very small organizations, it may not be possible to deflect the gift transaction to another individual, but in all other instances, this is the best option. Failure to do so runs the risk of violating Standard #1 and Standard #2. With the couple’s permission, disclosure to the original organization is also advisable.
- Answer: 3 is the correct answer. Even though the donor has chosen to share this information, discussing it with colleagues could violate their confidentiality. The donor could have shared the check-in with a small network, and you may also want to revisit whether you are the right person in your organization to manage their philanthropy given your close relationship. If the donor bring it up in conversation it is one thing, but for you to ask about it may make the donor uncomfortable.
- Answer: Number 2 is the best answer—thank the donor and explain that the AFP Code requires that all gifts must be disclosed to the Board. Standard #3 of the Code only requires AFP members to disclose all potential and actual conflicts of interest. It does not specify disclosure to the Board, but, as the governing body of the organization, the Board is the appropriate entity for the disclosure. Standard #4 also applies. It states that members shall not exploit any relationship with a donor, prospect, volunteer or employee to the benefit of the member or the member’s organization. One reason for the disclosure requirement in Standard #3 is to ensure that no one exploits a relationship. Answer number 1 is incorrect because the AFP Code does not impose an absolute prohibition on gifts from donors. At the same time, answer number 3 is incorrect because the Code requires disclosure of a gift (as the source of a potential conflict of interest), and answer number 4 is incorrect because the code is NOT silent on the subject.
- Happy to work with your organization or with you individually.