Equitable Donor Stewardship + Relationship Building in 2022

May 15, 2022
8 minutes

Hey nonprofiteers! Please enjoy this guest post by our friends over at Double the Donation about the awesome benefits of matching gifts.

Donor stewardship took the backseat for many organizations as fundraising efforts shifted drastically during the pandemic. Now, two years past the start of the COVID-19 outbreak, nonprofits are looking to reoptimize their efforts once again.

Yet, at the same time, there’s also been a movement of organizations away from stewardship initiatives. Sure, it’s nice to provide key contributors with a positive donor journey from the beginning that emphasizes continued support in the long term. After all, it’s true that you likely wouldn’t be able to fulfill your mission and serve your community in the first place without generous donor funding.

But could now be the time to expand your focus to more than just donations?

This article will provide a brief overview of donor stewardship as a concept, a few of the most significant concerns regarding stewardship, and what we can do to elevate equitable practices in the future. In the end, you can make your own decisions about what that will look like with your organization and its team.

Let’s dive in.

What Is Donor Stewardship? The Basics

Donor stewardship is a nonprofit practice dedicated to engaging an organization’s supporters post-donation. For many fundraisers, the idea is to establish and develop long-lasting relationships with these individuals⁠—in hopes that they ultimately decide to continue supporting your cause.

A few common examples of stewardship include:

  • Targeted donation follow-up emails
  • Handwritten gift acknowledgment letters
  • Personal thank-you phone calls
  • Exclusive donor appreciation events
  • Donor anniversary messages
  • Holiday greetings
  • Behind-the-scenes facility tours
  • Nonprofit newsletters depicting recent success stories

You get the point⁠—donor stewardship is basically any interaction an organization has with its existing donors that is not directly intended to solicit additional funding.

Stewardship has long been a focus of nonprofits and other fundraising organizations looking to better engage with financial contributors over long periods of time. However, many organizations are beginning to consider that (despite the substantial benefits) there might be potential negative implications of traditional stewardship strategies⁠—and what that might mean for their causes.

Inequity in Donor Stewardship: Where We’re Starting From

On the surface, donor stewardship can seem like a great idea. You want to thank the individuals who help make your work possible⁠, and that’s a good thing. But sometimes, prioritizing stewardship risks taking away from the nonprofit’s mission as a whole.

Here’s how:

1. Donor-centric versus community-centric fundraising

You’ve probably heard the old adages that support the vitality of donor stewardship—place the donor at the center of your story. The donor is the hero of your mission. Utilize more “you” phrasing than “I” or even “we.” Perhaps you even shared these ideas with your own team. And to a certain extent, they are true! However, organizations utilizing these practices run the risk of elevating what can be referred to as a “savior complex” among donors

Now, more and more organizations are beginning to prioritize community-centric fundraising as an alternative to traditional donor-focused messaging. The idea of community-centric fundraising essentially works to ground nonprofits and their fundraising efforts in strategic equity, highlighting community needs (including those of their beneficiaries) over any individual donor.

The thing is, it’s not necessarily “donor-centric fundraising versus community-centric fundraising,” but “donor-centric fundraising AND community-centric fundraising.” Most organizations will ultimately find that a combination of each strategy can bring huge successes in terms of donor engagement, revenue, and more. Aim to find a solid balance between acknowledging and appreciating donors while prioritizing the communities you serve.

2. Transactional donor relations

Another key component of the argument against donor stewardship is actually what stewardship had initially been aiming to overcome: transactional donor relationships.

Donors want to be seen as more than just a fundraising ATM or an otherwise monetary means to an end. So, over time, organizations have developed new ways to engage with their supporters without asking for additional funding. However, the ultimate goal of stewardship (whether underlying or outright) is often to keep donors happy in order to encourage more future gifts.

But fundraising, when done well, has the potential to be much more than that. Though many organizations struggle to locate the perfect balance, humanizing your donor relationships can help maintain lifelong supporters who want to work with your organization as you fill whatever gap your team aims to address. And it helps when your donors are just as passionate about your cause as you are!

Building Equitable Supporter Relationships Going Forward

So what can you do instead to avoid inequity and power imbalances in fundraising⁠—and instead experience the significant benefits introduced by sincere stewardship efforts?

Consider these tips for developing positive, community-centric relationships with your organization’s donors:

1. Maintain the dignity of your organization’s beneficiaries.

Nonprofit fundraisers know that telling a good story is one of the best ways to create emotional connections with donors and prospects. And when there’s an emotional tie, people are more likely to open their wallets and give generously. It’s why dramatized animal welfare fundraising ads do so well, utilizing heartbreaking imagery and moving anecdotes to coax large donations out of sympathetic viewers.

But it's one thing to show donors the beneficiaries of your mission, but it's another situation entirely to use people or animals as props to solicit fundraising. If your organization leverages success stories about your work, it’s critical that you prioritize maintaining the dignity of your beneficiaries.

The good news is that it’s wholly possible to do so! Some mission recipients will be glad to share their experiences with your organization in order to help your team better serve others like them. Just make sure you get enthusiastic consent (even if you’re anonymizing it), using language and framing the story in a way that makes the individual feel comfortable and highlights how your work empowers them instead of how they came to need your services.

And you’ll likely want to place beneficiaries at the center of the stories you tell rather than elevating the donor and their dollars.

2. Highlight democratized corporate philanthropy.

Corporate philanthropy is another leading source of funding for many nonprofit organizations. And although historically, the “top dogs” at a company are the ones making all the decisions on what to give, how much, and where it should go, new corporate giving initiatives are taking a more democratic approach to these questions.

Take workplace giving, for example. These programs are becoming increasingly popular as a subcategory of overall corporate philanthropy. In these efforts, a company’s employees are placed directly in the center of their employers’ giving⁠. This empowers individuals to help dictate the amount the company gives and direct funding to their favorite charitable causes.

Now, when an employee donates to a nonprofit, the company matches the gift to essentially double the value of the individual’s initial contribution. When a staff member volunteers with an organization, their employer provides the institution with a corresponding grant!

And when it comes to stewardship, workplace giving initiatives like matching gifts and volunteer grants enable organizations to diversify their corporate fundraising sources and better engage with the individuals who directed the funding their way.

Workplace giving and other corporate fundraising efforts offer nonprofits a significant and continually underutilized revenue channel (according to fundraising statistics by Double the Donation). Currently, companies contribute an annual average of $5 billion through workplace giving programs altogether⁠—yet an additional $4 to $7 billion in matching gift funding alone remains unclaimed by nonprofits and donors! Not to mention, 39% of surveyed businesses reported plans to increase their companies’ workplace giving initiatives in the coming years, meaning corporate dollars will continue to be more and more accessible to organizations of all shapes, sizes, and missions.

3. Communicate gratitude to all of your nonprofit’s supporters.

Another significant issue among donor stewardship efforts is the idea that major donors are treated as the top-tier priority, whereas smaller and mid-level donors are often swept under the rug.

For example, you might send out automated thank-you emails for gifts under a certain threshold⁠—perhaps a few thousand dollars. But when an individual surpasses that point, your team is ready to pull out all the stops with handwritten notes of appreciation, personal phone calls, face-to-face meetings, and more. And those are great ways to communicate gratitude, and to a certain extent, it makes sense⁠—your team probably doesn’t have the capacity to really “wow” every donor.

On the other hand, remember to consider that, proportional to income, people with less money donate more to charity than those with more. Though the donation flowing in might be smaller in check size, they’re just as large (or larger) in terms of generosity. Don’t those donors deserve to know that their contributions matter, too? Certainly⁠—which is why it’s a good idea to put more thought and effort into stewarding your low-level donors as well.

We also recommend highlighting non-monetary ways that individuals can get involved in supporting your mission. This might mean volunteering their time, contributing in-kind donations, and even participating in corporate matching gift programs if they have given financially in the recent past. By doing so, you show that money is not all that matters in your donor relationships.

And remember⁠—you’ll want to appreciate those supporters just as much, too!

4. Address donors as part of the community rather than its solution.

A key pillar of community-centric fundraising is the idea that it’s not anti-donor fundraising. You’re not trying to pretend your financial backers don’t exist. The donor is just integrated into the community as a whole⁠—and thus, is a part of community-centric stewardship as well.

This shifting of mindsets enables organizations to minimize the “us versus them” or “othering” ideas that are often seen in fundraising and donor engagement. It’s important to keep in mind that the donor is not a separate entity that is swooping in to single-handedly fix a problem. They are a part of the solution while also being a part of the overall community. They benefit just like your clients—in their own ways.

To drive optimized fundraising, stewardship, and mission programming, you’ll want to consider who is helping to empower your organization, and what kind of message you want to send with your campaigns. For example, be sure to prioritize fundraising efforts with individuals who support your nonprofit’s vision as you work together to find a solution to the problem you face. In doing so, it will be easier and more natural to develop meaningful relationships with those whose visions already align with your mission.

Get back to the roots of fundraising⁠ and the inspiration behind your cause⁠—and see where the two concepts intersect. The overlap found should be the base of your community-centric fundraising efforts!

So what does this all mean? As you organize and develop your nonprofit’s fundraising plan for the future, we recommend first taking a step back. Consider how your donor stewardship efforts fit into your organization’s mission and vision overall.

It’s not a bad thing to steward your donors or even to highlight positive ways the assistance they’ve given has helped drive your organization toward its goals. But if you’ve allowed your funders’ support to overshadow the real reason your nonprofit exists, you’ve likely gone too far.

It’s all about finding the perfect balance⁠—with the ultimate solution being equity-focused donor stewardship efforts. Best of luck!

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