Stop Scolding Donors to Make Unrestricted Gifts

Wait, you say? What if we raise too much money for one program?

If that happens it’s not a bad problem. It should cause you to think, "Whoa! People really like this program! Should we be doing more of it? Could we?" Of course you don’t want unintentional mission drift, but thoughtful, strategic mission growth is a different thing.

Of course if you really end up with such an outpouring of support that you’ve more money than you can or want to use then, by all means, notify the donor and offer to return the money. This is not only the right thing to do; it’s also a good trust-building strategy. The fact that you were able to generate so much community goodwill only reflects positively on you. And often the donor may tell you to keep the funds to use where most needed. Whatever happens, you’ve had an opportunity to deepen your relationship with this supporter.

Donors increasingly want to take an active role in how their money is spent.

They’re less inclined to let your organization decide how their philanthropy will be allocated. You’re competing in a landscape where other organizations are giving your potential donors the opportunity to be actively engaged in their giving. If you don’t provide similar opportunities, you will cease to be competitive in the donor marketplace.

Stop being afraid of restricted giving.

Offer your supporters enticing giving opportunities that key into what they’re most passionate about. It doesn’t necessarily mean they’ll end up deciding to make a restricted gift. It does mean they’ll probably end up paying more attention to you and making a considered gift of some form.

In fact, a study of the world’s wealthiest donors found that even among the most affluent donors nearly 70 percent of those with $1 million to $5 million in assets prefer to give unrestricted gifts to charity, while among those with assets of $50 million or more, 45 percent say they prefer to make unrestricted gifts. When you offer choices, the upside is greater than the downside. For me, it’s a no-brainer.

What's best for your donors is what’s best for you.

Being donor-centered means understanding what donors really want and need. The more you continue to approach donors from the perspective of what you need, the poorer results you’ll see. It’s pretty much common sense, isn’t it?