Most organizations use “ask handles” (sometimes called an “ask table”) in order to do upgrade giving through their direct mail fundraising. 

When the economy is good most charities will use the donor previous highest gift to calculate the three or four ask amounts in the gift array on the reply device in the letter.  In short, the donors previous highest contribution (HPC) is the lowest amount you would ask for… the subsequent amounts might be: HPC;  HPCx1.5; HPCx2; and Other.

When the economy is sagging, LIKE NOW, most not-for-profits use the donor’s last gift or average gift as the base to calculate the gift array.  This tends not to upgrade too quickly and in most cases upgrades giving more gradually by simply lifting average giving.

Now for the question, “Is a gift array strategy the only tool you should use to upgrade donor participation?”

The obvious answer is “NO”.  You must do more in this economy to identify and harvest major gifts from your donor file.  I am a big proponent of creating recognition levels to prioritize and benchmark giving.  I compare it to having “rungs on a ladder”.  Some organizations get frustrated because they only have two rungs on their giving ladder:  the low dollar $25 donors and the high dollar bequest or planned givers.  With no rungs or levels between entry level giving and estate gifts it is almost impossible to take donors to the top of the giving pyramid.

Creating giving clubs or giving societys based upon the total of annual giving of your donors establishes a benchmark for your donors as well as your organization.  It also gives you a process for prioritizing your donor visits and event strategies.

 Here are a few tips for improving segmentation and moving donors up the giving ladder:

1.  Determine giving levels that challenge your donors to increase their financial support: for example, $1,000, $5,000, $10,000, $50,000, $100,000.

2. Plan to establish at least three giving clubs so donors see the progression in size of gifts – and thus upgrade their contributions: for example, $1000, $5000, and $10,000.

3. Select a name for the giving club(s). Conventional names include Century Club, President’s Society, Founder’s Club, Dean’s Roundtable. Consider, however, names unique to your organization: the name of your founder, a famous member, a historical figure embodying your organization’s mission, or a concept important to your organization.

4. Determine the donor’s benefits at each level: plaques or certificates, parking or library privileges, autographed book, listing of name in program or annual report, access to staff or faculty, invitation to special events.

5. Decide how and where you will recognize and publicize giving club donors: newsletter, plaque, annual report, program, special brochure.

6. Identify board members and key donors who can “seed” each giving club with their contributions. Contact them personally to ask them to serve as charter members.

7.  Prepare a brochure for each club or a booklet for all clubs:  Describe how the giving club works, stipulating an annual contribution of at least $ _________ for (usually) unrestricted support.

State whether gift can be made in several payments – and whether deferred gifts will be counted (some organizations have a giving club just for those who’ve remembered the organization in their wills).

Identify and illustrate the benefits of membership. List charter members.

8. For higher-level giving clubs, plan an annual special event such as a luncheon, dinner, or seminar. The president or executive director must be on hand. Consider inviting prominent person or special speaker. These events will encourage renewal of contributions.

9.  At least once each year, list donors and giving levels for each club in your newsletter, annual report, or (preferably) special publication.

In a challenging economy the best way to improve your net revenue is to identify your top one hundred annual fund donors and GO VISIT THEM.

All major donors begin their relationships with a charity by giving just 20 bucks.  The key to growing revenue is to identify and then segment your direct mail donors with capacity from those who just have an affinity to your organization.  What normally happens with an organization is that  they continue to ask millionaires for $20 and millionaires, regardless of how much they love your organization, are only going to give you what you ask for.  If you ask for $20 and you will get $20, nothing more and nothing less.  It is a hard lesson to learn.

Begin by having your entire active donor file wealth appended.  This way you can begin pulling selects not only by recency, frequency and highest gift, but also by households with the highest capacity.   Most development directors never come to grips with the fact that they are guilty of the worst mistake in the history of fundraising and development: “asking multi-millionaires for 20 bucks…. and continuing to do it again and again.”

You do not have to do expensive list rentals of millionaire donor names.  You should begin with your best direct mail donors to cultivate major gifts by simply building a real friendship and relationship.  Start treating middle donors (donors who give from $250 to $999) different than your regular direct mail respondents.  For every donor who gives in excess of $250, along with the thank you letter include a packet, along with a list of benefits for upgrading their annual giving up to $1,000.

The main reason that donors do not move past the $1,000 threshold is because they are never asked. 

Do numerous queries of your database. Look for your most loyal donors and look for those donors who gave in excess of a set amount. Then pick up the phone and ask them if you could “buy them a cup of coffee”.   Sure you could just continue to mail letters without more personalized approaches, but you do your are going to leave a lot of money on the table with people who are really interested in your work. Ask permission to drop by and see them.  Then just listen.  Donors will tell you the BIG PROJECTS they are interested in and with big projects come BIG CHECKS.

It truly is as simple as that!

JESUS WAS IN LOS ANGELES TODAY.  The media did not report His sighting, only the evidence of the lives that were changed by His presence at the L.A. Mission.

 I joined hundreds volunteers on Friday, many of whom began arriving to the LA Mission at 4 a.m. in the middle of Skid Row.  Yes, “skid row” is a literal place, a 10 block radius in the middle of Los Angeles that City officials have zoned for missions services to be provided to the homeless; a place where hospitals often bring the indigent when no family or friend will come to pick them up after emergency services; a place where the addicted and abused go in hopes of  a warm meal; a place where more than 40,000 homeless men, women and children are forced to reside so they can wait each day for food, medical care and if they are fortunate enough, a bed or temporary housing. 

The L.A. Mission made Good Friday very good for so many in need.  On Friday we served over 3,000 meals to the homeless and those in dire need. I was simply amazed watching the Los Angeles Mission do so much to help offset a record jobless rate that has been threatening Los Angeles and Skid Row in particular.  While many across the country are staging protests and throwing barbs at Congress and the White House, Herb Smith and the LA Mission’s army of volunteers were lifting up the light of Christ, drawing the homeless in off the street.

 The L.A. Mission has programs designed to provide hope and healing to those in need.  Not only do they provide food and shelter, but they have an entire aresenalof solutions, including counseling, addiction treatment, GED preparation,  and career and vocational training.  The Mission works with scores of local businesses who reach out and help to put the homeless back to work as productive citizens.

 “The homeless population in the city was up 10 percent this year over last year — which was up 10 percent over the year before, ” said Herb Smith of the LA Mission. “We’re tracking the jobless issues in the economy.” 

 Willie Mays, 56, said he was the proof.

“I just got laid off from my job a few days ago. I was a custodian at one of the hotels around the corner.”  Mays has been staying at a homeless shelter nearby. After enjoying a meal of ham, green beans and mac’ n’ cheese, Mays sat down in a tent where a nursing student washed his feet.

  “It tickles,” chuckled Mays. Then, he walked — with the aid of a cane — to the next tent… to receive a free new pair of shoes.

 Volunteers did foot washing for over 2,000 of the homeless in L.A. and provided new shoes. I was so touched by Alley Mills, most know for her work as the mom in TV’s “Wonder Years”.  Alley spent the entire day on her knees washing the feet of the homeless, bandaging street caused blisters and sharing the love of Christ. There was a touching humility that so many saw in the eyes of both Alley and the homeless she touched today.

JESUS TRULY WAS IN LOS ANGELES TODAY….