Donors Are Getting Smarter....Are We?

A recent article in Businessweek featured the students of Nancy Lahmers’s undergraduate honors seminar at Ohio State University's Fisher School of Business.  Her students learn about nonprofit management through the eyes of donors -- as donors themselves. The class is given $4,500 through the Pay it Forward program. They have a year to research how to give away the money, based on an analysis of charities' federal tax filings and their quality and financial health through ratings by organizations such as the Better Business Bureau.

We are training a new generation of donors -- are we prepared? Are we confident about how our organizations stand the test of evaluation from our federal tax filings?  Do we make those tax filings easy for donors to find because we are confident about what they say about the quality of our financial management?

This kind of intentional sunshine is at the heart of California's new bill to bring light to the records of University-affiliated foundations. People want to know -- How does the money come in, from where, how are decisions made, and what are those decisions? Answers to those questions are the keys to organizational transparency and accountability. They're also the basis for informed giving decisions.

We know that an important basis for philanthropy is a donor's belief in an organization's mission and trust that her/his money will be used wisely. We also know that our world is providing ever more reasons for donors to question whether organizations are really walking their talk. The best way we can address that uncertainty is to ensure that our organizations give donors every reason to trust what we do.

Tin Cup or Tin Ear?

The other day I received a piece of direct mail from Oxfam, the international famine relief organization. I have supported Oxfam as a pledge partner for at least 10 years, and I assumed that the mailing was an invitation -- which I receive at least annually -- to increase the amount of my monthly support.

As someone who makes my living advising organizations on how to build donor trust and increased giving through best practices in stewardship and donor relations, I was impressed that a message on the outer envelope noted that Oxfam meets Better Business Bureau's Wise Giving Alliance "...standards of operation, spending, truthfulness, and disclosure" and that it is "rated highly by leading charitable watchdog organizations, including the American Institute of Philanthropy." These are important reasons why I have been a longtime Oxfam supporter.

So imagine my surprise and chagrin when I opened the envelope and read the beginning lines:  "Here's what you won't find accompanying this letter:  address labels that "guilt trip" you into giving; an expensive calendar that you don't need (and we can't afford)...." Actually, what I did find as I read a generic "first-ask" letter was an organization that, for all its wonderful work, hit a very sour note in donor relations.

Although my support for Oxfam is modest -- about $500 per year -- I  was annoyed to receive this letter. It seems reasonable to expect a sophisticated fundraising operation like Oxfam's to be able to manage purchased list data for a mail appeal to exclude existing donors, particularly those who, like me, demonstrate their commitment and loyalty to the organization every month.

Receiving this solicitation made me wonder whether I actually matter to Oxfam as anything other than a check writer. That's the kind of response that no organization raising money today -- large or small -- really can't afford.