‘You keep saying this thing lapsed. Lapsed from what? I never felt I lost out when I stopped giving.’
From the Bluefrog research study, ‘Why do donors lapse?’
Income in decline
What can cause income to go into decline?
Speak to donors about why they stop giving to a charity and you soon find the conversation turns to value – or the lack of it.
One donor summed it up rather neatly for us, “You keep saying this thing lapsed. Lapsed from what? I never felt I lost out when I stopped giving.”
When donors give to you, they want you to take action. It might be to solve a problem, to protect something or simply to carry on doing what you to do best.
If they feel they get little in return for their giving – either personally or in terms of the actions that you take – then there is little reason for them to carry on with their support.
When we dig into the psychology of giving, we find that the actions that donors want to see are defined by a set of interrelated set of need states.
When we answer these need states relationships flourish and support grows. We move from small single gifts to commitment and legacies. When donor needs are ignored, people vote with their pockets, purses and bank accounts and shift their giving elsewhere.
There are four key need states that fundraisers need to be aware of:
1. To help
There’s got to be reason to give. It’s the problem that needs to be solved or a situation that needs changing which underpins your very existence. What’s happening in society or the economy is going to influence how people perceive your specific challenge but as fundraisers our job is to construct communications that give donors a sense that they can be an important part of overcoming the issue that they care about.
2. Combat helplessness
Few donors welcome the sense of feeling helpless in the face of a problem. Giving is not just a means to make a difference but is an opportunity to take control of a frightening or unpleasant situation. Through asking for the right amount in the right way, we can ensure a donor feels that they are actively part of the solution they wish to see.
3. Personal growth
For many donors, giving goes beyond simply tackling a problem. Giving is also a means to demonstrate what they believe in. That is why every charity must work hard to ensure donors feel like they are a ‘valuable member of a valued group’.
We can achieve this by communicating at a personal level. No one enjoys feeling they are being influenced and persuaded by the tricks of the ‘advertising’ trade. What they value most is highly personalised communications. When delivered well they drive long-term loyalty. And what is the most important communication you can send? A well-crafted thank you.
4. Value
This is the area that can make the biggest difference to a donor. By offering value, we reward the donor for their support creating the positive feedback loop that will drive long-term support. When we focus on value, we show the donor that they made the right decision when they gave. The more a donor gives, the more important this need becomes. A simple email might be enough in response to a gift of a few pounds or dollars. But when a gift is hundreds or thousands of pounds or dollars, our approach has to be different.
As fundraisers we need to show a donor the joy of giving. That joining with others to solve a problem is one of the greatest things that any of us can do.