Call it human nature, but many of us wait until the end of the year to start thinking about making a charitable gift. We tend to be deadline oriented, and knowing that the end of December represents the conclusion of a tax year certainly provides one incentive to make gifts and to accelerate payments.
Whether it's a bit of procrastination, or intentionally timed as part of one's giving agenda, donors' last minute gifts can create a flurry of activity for many nonprofits beginning in October and lasting right up to, and often past, the December 31st tax deadline.
Is this really the season for giving? Philanthropists like to say that any time there is a reason for giving, it is the season for giving. And, to some extent, that is true. Organizations with a compelling mission and well-articulated vision should capture the interest and altruism of benevolent individuals any time of the year. And, in reality, even though the fourth quarter may be the busiest season for many nonprofits, donors do make pledges and payments consistently throughout the calendar year.
However, savvy organizations will plan ahead for this and other aspects of year-end activity. Take a look at the giving patterns in your organization. What percentage of your charitable support comes from year-end giving? Do you have a strategy in place to connect with donors as we approach the fourth quarter? Consider, too, that the holiday season is an opportune time to reach out to lapsed donors. It has been shown that lapsed donors who have been reactivated provide stable revenues and even slight gains for astute nonprofit organizations.
The message: ask again of both current and past supporters. Many donors appreciate a gentle reminder. One of the most common statements that we encounter is "We didn't give because we were not asked."
Looking toward the final quarter of 2005, EHL Consulting advises clients and friends to heed the following guidelines for nonprofit organizations.
- Plan a personalized and targeted year-end push for larger donations and a written appeal to smaller donors. Appeals should be simple but compelling, reflecting your organization's vision and passion for its mission, and the impact of the donor's gift.
- Include all potential donors in your year-end plan, whether or not they have already given this year. Don't make the mistake of assuming that a donor will not give more than once in the same year.
- Be diligent about billing for and collecting outstanding pledges. Donors generally intend to fulfill their commitments in a timely fashion and often appreciate, and sometimes require, a gentle reminder.
- Take no gift for granted. Donor cultivation is a continuous process of acknowledging current gifts and communicating with donors in hopes of and preparation for future gifts.
- Lapsed donors may be an unexpected, invaluable resource to your organization. Look to see who they are and plan for how they may be re-engaged as continuing, future supporters.
- Add online donation capability to your website if you have not already. Many donors appreciate the ease of this payment option, and the use of the Internet for making charitable donations will continue to rise.
EHL Consulting helps its clients craft their fundraising strategies that are appropriate and well planned, and provides guidance in effectively mobilizing all assets in pursuit of the organization's financial goals.
