Great resources for apologizing to donors/champions

All of us nonprofits occasionally do dumb things to our champions. Maybe we accidentally keep sending mail under the name of a deceased spouse even after the surviving spouse called, wrote a change request on a reply card, and sent a death certificate. Hey, these things happen.

Now, you’re not going to do things perfectly, so you’re going to have some grumpy sheep (those who felt jilted)!  But don’t let that scare you away or back off of still trying to care for them.  A few things you need to know is: 1) The better an organization is at resolving champion complaints or queries, the higher its rates of retention will be and 2) champions who complain are generally more loyal than those who do not, even though they are not able to obtain any satisfaction!
Take a look at this chart taken from: Building Donor Loyalty by Adrian Sargeant and Elain Jay:
In the first column is a group of champions who experienced a major problem with the organization and failed to complain. Only 8% of these individuals will offer another gift. However, if they encountered only a minor problem, the percentage of these individuals who will offer another gift rises to 31%.
The next group of champions are ones who had a major problem, and complained to the organization, but the complaint was never resolved.  About 18% percent of these will offer a subsequent gift.  If the problem was minor, the figure will be 47%.
Moving along the graph we find a group of champions who had a problem and complained to the organization, which resolved the issue to the champions’ satisfaction.  Of these champions, 53% will give again if the problem is a major one, and 69%, if it is a minor problem.
Finally, we have a group of champions who had a problem and complained to the organization, which instantly dealt with the matter to the champions’ satisfaction.  The percentage of these champions who will offer a subsequent gift is 82% for a major problem and 94% for a minor problem.
Rather than regarding complaint handling as a necessary evil, regard it as an opportunity to build champion loyalty.
What also happens, as you can imagine, is that the better we handle those complaints, the more likely the champion is to continue in relationship with our organization.
To wit, check out these stats from Building Donor Loyalty by Adrian Sargeant and Elaine Jay:
  • When champions experience a major problem with a nonprofit and fail to complain, only 8% will offer another gift.
  • When champions experience a major problem with a nonprofit and complain, but the nonprofit can’t fix the problem, 18% will offer a subsequent gift.
  • When champions experience a major problem with a nonprofit and complain, and the nonprofit eventually fixes the problem, 53% will give again.
  • When champions experience a major problem with a nonprofit and complain, and then nonprofit resolves the problem instantly, 82% will give again

There’s a message in there somewhere.

While you’re contemplating that message, have your staff closely review the free materials presented on these two sites:

Both sites contain dozens of extremely relevant examples. I’m in the process of training a ministry how to deal with complaints from champions, and I’ve assigned them to pick one of the examples and commit to trying that approach out in the coming month next time they encounter a “nasty” call (funny we characterize them that way).

Why not commit to the same exercise yourself?

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Is the church in recession or just on recess?

AP’s Rachel Zoll provides us with Religious life won’t be the same after downturn, the latest mass media update on how we Christian orgs are all faring amidst this recession:

  • Faith Communities Today’s David Roozen is projecting 320,000 to 350,000 congregations in economic distress in 2010. That’s around 1 in every 7.
  • The Association for Christian Schools International reports the closure or merger of 200 Christian schools, up 50 from last year.
  • 80 seminaries who are members of the Association of Theological Schools have seen their endowments drop by 20%.

My question: Was this something done to us…or something we did to ourselves?

Bishop Noel Jones, pastor of City of Refuge in Los Angeles, in MinistryToday:

We have endured 25 years of health, wealth and prosperity preaching, and the prophets should have told us that we were going to be in this kind of situation and circumstance since they have such ‘prophetic’ words. What happened is the church has capitalized the gospel and we have preached Americanism for gospel, and ultimately we ended up crashing because there is no credulity and authenticity in the whole presentation. The only people who were making any real money were those who were expostulating the theology that left the psychology that debilitated the minds of those who were involved. The debilitation is that everybody expected to bring an offering in church and just get rich though nobody participated and partnered with God. Because at the end of the day nobody receives a check in an envelope postmarked from heaven. It’s your participation that makes it happen. … The ministry and the preachers have taken so much money from the church and lived lavish lifestyles. We need to put something back. We need to equip our people. As James puts it, very explicitly, ‘Faith without works is dead.’ We co-create, we perpetuate God’s creation by functioning responsibly. So what everybody was talking about as God’s blessing was people living on credit. And the Bible says that the borrower is subject to the lender. So Christian America simply joined the capitalistic bandwagon and-in the name of God-articulated a theology that has no credulity.

Ring the bell. School’s now in session.

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Replacing nonprofits with vending machines

Give and Take points the way to Paul Lamb’s editorial last week in the Christian Science Monitor entitled Are there too many charities?

Lamb notes that there is now one nonprofit for every 300 Americans. His question:

Is there a more efficient way to, you know, do this?

He proffers eBay as a philosophical measuring stick.

With eBay, buyers and sellers interact directly. Cut out the middleman and you can snag that classic Superfriends lunchbox for an unbeatable price.

Why not, asks Lamb, apply the same logic to nonprofits, connecting givers more efficiently with recipients?

Rather surprisingly, Lamb makes no mention of Kiva, which would seem to be the poster child for his idea.

Instead, Lamb proposes replacing rescue missions with vending machines:

nstead of giving money to the United Way to support food banks, why not give the money directly to the hungry?
Because tossing money in a cup or handing cash to someone on the street is impractical on many levels, food stamp-like vouchers, for example, could be made available through existing ATM machines. This way the money that might go to pay for the distribution organization could be saved and used to buy more food, and the hungry could claim their vouchers anywhere there is an ATM and a food store.
Obviously, this peer-to-peer model doesn’t work for direct-service organizations such as hospitals and workforce training groups. But it could mean significant savings and more efficient programs elsewhere.

Instead of giving money to the United Way to support food banks, why not give the money directly to the hungry?

Because tossing money in a cup or handing cash to someone on the street is impractical on many levels, food stamp-like vouchers, for example, could be made available through existing ATM machines. This way the money that might go to pay for the distribution organization could be saved and used to buy more food, and the hungry could claim their vouchers anywhere there is an ATM and a food store.

Obviously, this peer-to-peer model doesn’t work for direct-service organizations such as hospitals and workforce training groups. But it could mean significant savings and more efficient programs elsewhere.

It’s an interesting idea–that what homeless people need are homes and what hungry people need is food, and that the inefficiency in the system can be reduced by replacing the human beings with ATM machines.

Funny–I always joke that one of the core problems with traditional transactional fundraising (ttf) is that it views donors as human ATM machines. This is the first time that I’ve encountered anyone proposing that nonprofits themselves should be replaced with ATM machines.

Frankly, though, I think we deserve what Lamb is leveling at us here. If the purpose of nonprofit organizations is program delivery, then why not explore every way to increase efficiency? All Lamb does is to take that idea to its extreme conclusion–that program delivery may be at its most efficient when there is no nonprofit organization at all:

Beyond cost savings, another idea is to put the care back in the hands of local communities themselves. Instead of relying on outside agencies to provide services, neighborhood care councils composed of volunteer citizens and experts could be responsible for determining local need and distributing resources to address those needs.

We nonprofits deserve to be “efficiencied” out of existence, because we have taught donors to prize efficiency above darn near everything. Even child sponsorship is appealing because saving the life of a child can be done so efficiently, “for the price of just a cup of coffee a day”.

In Transformational Giving (TG), efficiency takes a deep back seat to proficiency. That is, our goal is not to get food to the hungry but rather to be shaped comprehensively in the image of Christ so that we are the kind of people who share our food. The end “product” of our work is not distributed resources but rather resourceful distributors.

Ironically, Lamb is right for the wrong reasons: a nonprofit that provides services efficiently is a middleman that should be removed, but not because an ATM is more efficient–in fact, in TG, an ATM is less efficient than a nonprofit. Instead, it should be removed because it is a middleman that obstructs direct connection of human beings who in any given encounter both give and receive.

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