‘Beyond the Gift: The Art of Major Donor Stewardship’ Part 2.

Foreword

At Cairney & Company we work with so many different clients, whose donors are all unique and need to be managed with this in mind. The topic of good stewardship is a recurring one. How to do it well, treating each individual as such whilst maintaining an appropriate level of consistency in approach? It is a hugely important part of the donor journey, and it is crucial to get it right.  In part one of this three-part blog series, we explored what stewardship actually is and why it is important. In this part two, we will focus on what makes good stewardship.

Part 2. What Makes Good Stewardship?

So, with all that being said, it begs the question of what does make good stewardship? It is often referred to as ‘thanking’ our donors. However, stewardship is more than just saying ‘thank you’. It is treating donors as valued partners and demonstrating how they make a difference. It is fostering meaningful interactions and communications with donors. But what exactly does this look like?

Well, in order to fully answer that question, it involves delving into the mind of the donor. Different donors have different motivations for giving, and as such there is not a ‘one-size-fits-all’ approach to stewarding them. In 1994, Russ Alan Prince and Karen Maru File conducted a revolutionary study-turned-book: ‘The Seven Faces of Philanthropy: A New Approach to Cultivating Major Donors’[i]. This methodology identifies seven distinct wealthy charitable donor personalities.

1) The Altruist. They give because it feels right to do good. They are motivated by the act of ‘giving to others’. Altruists care about helping, they do not seek fanfare or recognition. Steward these donors with hands-on experiences that will help bring them even closer to the cause. For example; offer them an opportunity to meet the recipient of the scholarship, or the academic or researcher they fund, and make time to meet face-to-face with them as a fundraiser. Show them how much of an impact their gift has made to the institution and how much ‘good’ has been done because of them.

2) The Communitarian. They give because they feel it makes sense. They feel a civic duty to the community (this might be a university community, or the wider community). Steward this donor by communicating clearly how that community will benefit from their support. For example, offer a meeting with the academic team of the project they are funding to show them first-hand the impact they have had. The importance here is showing that their actions will have a real impact on the community. This type of donor is also likely to be open to two-way stewardship. For instance, they might be very happy to be asked to take part in a feasibility study as this makes them feel like an active part of the institution. Think of volunteering opportunities for them – they’re also likely to be great advocates!

3) The Devout. They give because they have faith in the cause. The devout are fully dedicated to the cause and give because of this. These are often alumni or longstanding friends of the institution. Steward these donors with a private meeting with a leader in the institution. For example: invite them to an intimate event with institution leadership, such as an ‘Insider’s Day’ or a high-profile Christmas drinks reception. Make them see that their devoutness is appreciated and valued by the institution and that they and their support are important.

4) The Dynast. They give back because it is a family tradition; the family name will mean something to this institution. Dynasts give, not only to support the cause, but to continue a proud family legacy of giving. Steward these donors by acknowledging the history and the legacy rather than merely focussing on the current donor. For example: organise a meeting and/or a dinner with the whole family (where this is possible), as well as meetings with the individual. Ensure that the donor is treated as an individual and thanked for their individual support, whilst also making reference to the longstanding family commitment. It can be a tricky balance to strike but both the individual and the family must be valued here. Depending on the level of donation, a prominent, lasting recognition on campus could be appropriate. This could be something that descendants of the family can add to over time, such as a donor wall with a growing list of their names on it. The family is usually very proud of their relationship with the institution and would like this to be on show.

5) The Investor. They give back because it is good business sense to do so. These donors are motivated by the tax implications, and the financials of the project in question. Steward these donors with clear figures on Return on Investment (ROI), show them the tangible impact their investment has had. For example, produce a report on the project they have funded with a clear economic picture of the impact they have had. Show them what has been made possible by them, through the financials. Donors of this ilk will also appreciate gift reminders (if appropriate) around the end of the tax year, as well as information on Gift Aid or other tax efficient giving models. Be sure to find out if they work for a company that gift-matches – this is a win/win for everyone.

6) The Repayer. They give back because they have received a gift or experience that’s had an impact on them in the past and now wish to pay it forward. For the Repayer, it is all about gratitude. We see this in university alumni who graduated before fees were introduced, or former scholarship recipients. This is also commonplace in a hospital setting, where the donor feels a sense of loyalty or obligation to help those who have helped him or her. Steward these donors with a clear message on how their support will deliver a similar outcome to others. For example: bring the donor in to meet with their scholarship recipient, or produce a report showing the impact of their funding on patients. The Repayer is also likely to have good relationships with their scholars and will be interested in hearing how they’ve done post-graduation. Keep the donor and the scholar connected afterwards; it’s good and easy stewardship if the relationship is already there and that student could be the next repayer!

7) The Socialite. They give back because giving back is FABULOUS. The socialite is often drawn in by the prestige of high-profile events, by money-cannot-buy opportunities, or through peer-to-peer approaches. They like their philanthropy to be seen and noticed. Steward these donors by thanking them publicly. For example; think of naming opportunities (in line with your institution’s naming precedents) or use social media to publicise gifts from high profile individuals. Another great way to steward the Socialite is by utilising photo opportunities with leadership, such as that of a cheque being handed over or them speaking at an event.

Sounds simple, doesn’t it? Seven ‘faces’, seven ways to steward them…easy! Well, not quite. In a rather Pirandellian way, humans tend to be the sum of many faces. While these ‘seven faces’ can be a helpful tool in profiling our donors and helping us understand how best to communicate with them, these are complex, multifaceted humans and are unlikely to be neatly pigeonholed into one of these philanthropic categories. Usually, each donor is a combination of these ‘faces’, which muddies the water slightly. That being said, it gives us a useful starting point.

So, how can you fully understand how each donor wants to be communicated with? How do you know what will pique their interests, engage them further and make them more likely to give again? The simple answer is to ask them. The one way you can find out how best to steward your donors is to have an honest, open relationship with them. Be clear, when finalising the gift, on how the institution will recognise their support and keep them engaged and up-to-date. If it is a trust or foundation, ask them when they have their trustee meetings and how a report could fit into their calendar. Like any part of the process, what makes good stewardship is always good communication. Although it might be tempting to leave this part out when closing a gift or put it off once the gift has just come in, it is a conversation worth having.

Before you have this conversation though, it is important to keep in mind what not to do, as well as what you should do.

·         Don’t overpromise if you’re not certain you can deliver – know your limitations, and those of your institutions. A common pitfall is around matched funding. Be sure you know exactly what can be delivered and what can’t be before committing.

·         Don’t roll out the red carpet straight away – whilst it is important to steward every gift well and convey gratitude from the off, it is important not to throw everything at the donor on receipt their first gift. It is important to plan several steps ahead, and clearly envisage the next stage in their stewardship.

·         Don’t promise stewardship in perpetuity – it is vitally important to establish a natural end date to the stewardship. This can either be a fixed number of years in relation to the length of research, or else the ’lifetime of building’. Ideally this should be written into a Gift Agreement to avoid confusion and disappointment.

·         Don’t promise without consulting all relevant internal stakeholders – think about who will need to be involved in the delivery of that stewardship (e.g. academics, scholars) and be sure to agree the stewardship plant with them. Then also remember to thank them for their part in upholding a positive relationship.

So, when considering what makes good major donor stewardship it is key to understand the donor and the gift in question, what is appropriate for the institution and the circumstance.

In part three of this blog we will explore how to stand out from the crowd with your stewardship.

[i] Alan Prince, Russ and Maru File, Karen, November 2001, ‘The Seven Faces of Philanthropy: A New Approach to Cultivating’