A lot of us have heard “Donors should be thanked seven times for their gift!” But what does that mean? And how do you thank someone seven times?
Here are some of the ways you can thank a donor. There are more than seven, but you can pick and choose.
1. Pick up the phone and call. I don’t know why more organizations don’t do this. It takes a minute, it can be done by volunteers, you can do it the day you receive a gift, and it’s free. It does take time to organize, however, and many organizations don’t feel they have the time, but really, you can give a volunteer a list from your data entry, or just copies of the gift receipts, and have them do it. It’s not that difficult. Personally, there are organizations that receive hundreds or even thousands of dollars from me and they don’t do this. I’m very impressed when they do.
2. Send an email. If someone donates online, you can make sure they get an instant email in return. Too often, these are cold and impersonal, merely saying, “Your gift of $XX was received on DATE. This is a receipt for your records. Your gift is tax deductible to the extent that the law allows.” How about adding a few sentences about what their gift will do, and thanking them in a more personal way? Pretend that you’ve just made a gift of $1,000; what would you like the receipt to say?
3. Write a letter. The IRS requires a written receipt if the gift is over $250, but how about writing something for every donor? When I was producing mailings for 131 chapters of the American Red Cross National Headquarters, we sent a $5 donor a thank-you note and an envelope, and he returned it with another check for $1,000! If that chapter had said they didn’t want than-you notes sent to small donors, they never would have gotten that second check. So I think it’s worth it (or “Werth-It” to put a pun on my company name) to send a letter for almost all gifts. If saving money is really a priority, you can design a nice postcard for small gifts and send it, but put on it that you’re trying to use their gift most effectively so you hope they understand. Otherwise, plan to spend 3% of the gift to thank the donor.
4. Send a second letter in January, summarizing all their gifts for the previous year, for their tax records. Donors will see this twice: when they receive it and again when they do their taxes. You get a double hit. Make sure to thank them again for their gifts and make sure it’s accurate.
5. Put your donor names on your website, or at least those of a certain amount. Make sure that Google can find it. Donors like to Google themselves, and they’ll be pleased to see their name on your website. (You can ask on your donation page or return coupon how they want to be listed.) In my experience, very few donors, well under 1%, want their gift to be anonymous.
6. Produce an annual report and list your donors there. You can send this to your mailing list with a letter requesting donations. People tend to keep annual reports and read them thoroughly, and if you talk about how you used their donations, they’re more likely to make another gift. A beautiful annual report can also be added as “additional materials” to any grant application and it makes foundations more likely to fund you if they can see how your work makes a difference. When you have a five-page limit on a grant application, adding another 16 pages of photos and essays about your work can influence the grant-makers to donate. Having a donor listing also makes donors feel proud to support you and more likely to upgrade their giving into the next category (so it’s important to have categories, such as $100-$249, $250 – $499, etc.).
7. Thank your donors with a party. Have one event each year where you invite donors to see your work and thank them. It can be a holiday party, a graduation, a testimonial, a reception, a rehearsal, a performance, or just a gathering or office tour. It doesn’t have to be expensive or elaborate, but if they can see some element of your work, and perhaps bring a spouse or friends, that’s helpful.
8. Thank your donors in person. In the course of a year, you should try to see about 150 of your donors for each staff person who does fundraising, including the executive director. That’s ambitious, of course, but it still just means three meetings a week of an hour or less. Surely you can free up 10% of your time for the people who gives you thousands of dollars a year? Think of it this way: if someone gives you $X amount by phone, they can give you ten times that amount if you meet with them in person.
9. Call your donors around the holidays just to thank them again and wish them a happy holiday. Even if you’re hesitant to have a volunteer call donors when they make a gift because you don’t want a volunteer to see their donation amounts, you can still have these kinds of calls done. The volunteer doesn’t have to know the specific amount they gave. They can just get a list of names and numbers and a script to say, “I’m calling from ___ organization and I just want to say thank you for your support and to wish you happy holidays from all of us.” It’s simple, it’s quick, you can leave phone messages, and it can be done by anyone, from teenagers doing community service to elderly shut-ins who would like a task they can do from home.
10. Have a donor wall where you list certain kinds of donors, like those who make a planned gift, or a bequest, or a gift over a certain amount. Display it where the most people will see it. Take a picture and email it to your donor, or have a ceremony unveiling it.
11. Consider having a donor ‘sponsor’ a day. If there are 250 work days a year (minus weekends and holidays), consider having a board at the front that says, “Our work today sponsored by ______.” You can also put a banner on your website for the day and include it in the signature lines in your emails to get others to think about doing this, too. You can include your 250 highest-dollar donors, or any donor who gives enough to pay for one day of work (essentially your annual budget multiplied by .4%). If you have a million-dollar budget, any donor of $4,000 or more is paying for a day of your being there, so this would certainly work for your high-dollar corporate donors, foundations, and your biggest donors. Ask them if they want to choose the day, and if they want to come that day, or if you can send them a picture for their offices. Some people will get a kick out of it and sponsor their anniversary or their spouses’ birthday, others won’t care about it but you will still want to do it anyway to encourage others to give. It also gives a morale boost to the staff when they see that others care enough to sponsor their work.
There are many more ways to thank donors, but these are a few to get you thinking.
If you have questions about fundraising or want to talk about having your board of directors trained in fundraising, contact me, Katherine Wertheim, CFRE, at katherine@werth-it.com.