Donors Think What?!!!

Given mail schedules, it’s probably too late to make your overhead rate more prominent in your year-end mailing. But think about making this message a priority in 2013 with an article in your newsletter, an insert in your receipts or some other prime real estate where it will get noticed and (maybe) change attitudes.

Make it easy to understand
After several months of presenting financial reports, a participant in the meetings finally had the courage to ask me, “What’s a fiscal year?” It’s easy to forget that the terms we use so easily may not be communicating to the average donor on our files.

Pie charts can help convey your overhead (or more positively, the amount you invest right into your programs). Showing a dollar bill separated into parts representing program, fundraising and operations is a nice variation that helps convey the message.

Maybe there is an even more interesting way to show your overhead. Challenge your graphics person or team to come up with ways to illustrate this in a way that is simple to grasp. Remember, most of your donors didn’t get their degrees in accounting. Find a way to get this important message out so it’s understandable and even motivational.

Accentuate the positive
If your overhead is a bit high, don’t apologize. Instead, highlight the great work you are doing. You may even have an overhead expense that could win points with a donor. For example, if you are an environmental group, you could mention that your overhead includes the cost of insulating your office last year to reduce your future heating expenses and help the environment.

I once spoke to a potential donor who said he would only give if I promised I wouldn’t take any overhead out of his gift. I gently explained that overhead was a reality; in fact, I (overhead) was talking to him on a telephone (overhead) while sitting in an office (also overhead). After a long, frank conversation, he made a very generous gift with the understanding that a percentage of it would be used for overhead.