Why is a Ferrari more expensive than a Honda?
Why is the CEO paid more than a janitor?
Why does Charity:Water raise so much more money than the local grassroots nonprofit?
It’s not because the more expensive thing is “better” or that the big nonprofit does “better” work or that the CEO works harder than the janitor.
It’s the perception of value creation.
In the nonprofit world, your ability to raise significant gifts hinges on two things: the value you’re creating in the world (i.e. your impact) AND the value you create for your donors (i.e. who I get to tell myself I am because I donated).
The reason why donor retention is so abysmal in our sector is that we forget that we need to tell both stories.
As a donor, I want to know what you did with my money. I also want to know what was in it for me because we’re all the stars of our own movies. If you’re not offering me self-transcendence, belonging, legacy or significance, then you’re not providing personal value to me as a donor.
Even in the vein of community-centric fundraising, providing value to me as being the “kind of person who supports community-based movements” is valuable. Don’t forget to close the loop on that story.
The more value you provide, the more loyal and generous your community will be and the bigger the gifts.
The next time you’re thinking about your campaigns, start with the question, “What value are we creating in the world and who values that value?”
PS: If this resonates with you and you’re ready to take it to the next level, apply today for the May-June session of the Fundraising Accelerator. Applications are due April 13.
Newsletter ideas:
Are you playing to win or not to lose?
Responsible for your energy
Value creation = bigger donations
