Podcast Summary: Ep 208 - Bring Back the Joy of Giving (with Allison Fine)

Podcast Information:

• Title: Nonprofits Are Messy: Lessons in Leadership | Fundraising | Board Development | Communications
• Host/Author: Joan Garry
• Guest: Alison Fine, President of Every.org
• Release Date: August 3, 2024

Introduction

In Episode 208 of Nonprofits Are Messy, host Joan Garry engages in a dynamic conversation with Alison Fine, the president of Every.org. The episode, titled “Bring Back the Joy of Giving,” delves into transformative approaches to nonprofit fundraising, emphasizing a shift from transactional to relational giving. Alison Fine shares her extensive experience in leveraging technology to foster deeper connections between nonprofits and their donors, advocating for a more joyful and meaningful fundraising experience.

The Problem with Transactional Fundraising

Alison Fine begins by addressing the entrenched issue within the nonprofit sector: the prevalence of transactional fundraising methods. She criticizes the traditional "ask, ask, ask" approach, where nonprofits continually request donations without fostering meaningful relationships with donors.

Alison Fine [03:49]: "My mission is to reshape the entire field of fundraising, Joan. It is to move us from a default setting of transactional asks... to a brand new 21st century model of engaging with and bringing joy to donors."

Fine attributes the dominance of transactional fundraising to over six decades of conventional practices, heavily influenced by consultants who treat nonprofits like catalog-based retail operations.

Alison Fine [04:35]: "It's six decades of conventional wisdom that the way to get a donation is to just keep asking and mailing and now emailing and over and over again until there's no one left to ask."

Joan Garry echoes this sentiment, pondering whether the sector's historical roots, such as those from large organizations like United Way, have inadvertently steered nonprofits toward transactional giving.

Introducing Every.org and Its Mission

Alison introduces Every.org as a nonprofit dedicated to transforming fundraising practices. The platform aims to increase the joy of giving while reducing friction for both donors and organizations.

Alison Fine [12:44]: "We're a C3, right? So we live in this same space with folks. The tech is amazing... We're actually organized as a donor advised fund."

Every.org stands out by accepting diverse payment methods, including crypto and stock donations, without charging setup or transaction fees. Funded by foundations like Camp.org and the Gates Foundation, the platform focuses on supporting small nonprofits by providing essential fundraising infrastructure.

Alison Fine [12:44]: "We don't take fees for setup or fees for transactions. We don't sell the data. We're funded by foundations like camp.org and the Gates foundation and optional tips by donors. And that's it. It's just beautiful."

Relational Fundraising vs. Transactional Fundraising

The core of the discussion revolves around transitioning from a quantity-focused, transactional fundraising model to a quality-focused, relational approach. Alison emphasizes the importance of viewing donors as valued individuals rather than mere revenue sources.

Alison Fine [23:12]: "The dehumanizing of the $25 donor is because of the leaky bucket."

She explains the concept of the "leaky bucket," where nonprofits continuously acquire new donors to replace those who drop out, leading to a perpetual cycle of acquisition without genuine retention. This system not only strains organizational resources but also devalues donor relationships.

Alison Fine [25:42]: "It is a system built to make nonprofits dependent on that conventional wisdom and leaking money and donors constantly. It's a broken system."

The Importance of Donor Retention

A significant portion of the conversation highlights donor retention as a critical factor for sustainable fundraising. Alison cites alarming statistics, noting that only about 20% of donors give a second time, leaving 80% without ongoing engagement.

Alison Fine [23:44]: "The reality is 20% of donors give a second time."

Joan relates this to her experiences, sharing a story about a $250 donor who eventually left a substantial legacy after years of relatively small contributions. This anecdote underscores the missed opportunities when nonprofits fail to engage donors meaningfully from the outset.

Joan Garry [28:11]: "I have a donor at GLAAD who gave $250 solid every year... upon his passing... left millions of dollars to the LGBT community."

The discussion underscores that focusing on retention rather than mere acquisition can lead to more profound and lasting donor relationships, ultimately benefiting both the organizations and their causes.

Integrating Values into Fundraising

Alison critiques the dissonance between nonprofits' professed values and their fundraising practices. While organizations strive to embed core values in their governance and programs, these values often do not extend to donor relations.

Alison Fine [09:33]: "The only place that isn't value aligned is the low dollar giving."

She points out that development departments often operate based on what drives revenue, sidelining the organization's broader mission and values. This misalignment creates a culture where donor relationships are transactional, undermining the nonprofit's integrity and long-term success.

Alison Fine [10:08]: "What boards are asking for... can be seen in development offices where the insistence on doing whatever it takes to get cash in the door has corrupted the culture of those places."

Every.org: A Joyful Giving Experience

Every.org differentiates itself by offering a platform that fosters joy and ease in the giving process. The platform's intuitive design encourages donors to share their contributions on social media, create personalized campaigns, and engage with nonprofits in a more meaningful way.

Alison Fine [15:25]: "It's just a super fun place to be, and it allows donors to share their donations on the platform and on their social channels."

Joan highlights the platform's ability to make visitors feel like part of a community rather than mere contributors, enhancing the overall giving experience.

Joan Garry [16:22]: "It becomes just simply the methodology I use to make the payment. Really."

Challenges and Solutions in the Nonprofit Sector

The conversation delves into broader challenges facing the nonprofit sector, including organizational growth that dilutes focus, difficulty in measuring impact, and the relentless pressure on development staff to acquire funds.

Alison suggests comprehensive solutions that involve not just adopting new technologies but also rethinking foundational fundraising strategies. She advocates for using AI to streamline administrative tasks, thereby freeing up time for nonprofits to engage genuinely with their donors.

Alison Fine [34:54]: "We're going to use both generative AI and other kinds of AI to enable orgs to tell a great story on their profile... free up their time."

She emphasizes the need for nonprofits to audit their fundraising costs, both financial and social, to understand the true impact of their strategies and to prioritize donor retention.

Alison Fine [36:35]: "I would actually start to figure out the real costs of my fundraising... How it happens in systems as well."

Future Directions: AI and Relational Fundraising

Looking ahead, Alison outlines Every.org's plans to incorporate generative AI to help nonprofits craft personalized stories and campaigns. This technological integration aims to enhance relational fundraising by making it easier for organizations to connect with donors on a deeper level.

Alison Fine [34:54]: "We're going to help organizations use AI, take apart their development systems and processes and assumptions, get the administrative work off their plate if we can, with AI or just reordering the work that they're doing and free up their time."

Additionally, Every.org plans to serve as an online hub for relational fundraising, providing resources and support for nonprofits to pivot their strategies effectively.

Conclusion: Embracing Relational Fundraising for Sustainable Success

The episode concludes with actionable advice for nonprofit leaders. Joan and Alison encourage organizations to:

1. Audit Fundraising Practices: Assess the financial and social costs of current fundraising methods.
2. Prioritize Donor Retention: Shift focus from merely acquiring new donors to nurturing existing relationships.
3. Leverage Technology: Utilize platforms like Every.org to reduce administrative burdens and foster meaningful engagements.
4. Align Fundraising with Values: Ensure that fundraising practices reflect the organization's core values, enhancing authenticity and donor trust.
5. Engage the Board: Educate board members on the importance of donor retention and relational strategies to create a supportive fundraising culture.

Joan Garry [38:45]: "If you can do that, then you actually give me as a donor a big fat gift. You have made me feel valued... an injection of meaning and purpose that I am so fecking hungry for."

Alison echoes this sentiment, emphasizing that treating donors as valued individuals rather than mere revenue sources can transform the fundraising landscape, making it more sustainable and fulfilling for both nonprofits and their supporters.

Alison Fine [38:24]: "Match it up initially with your low dollar fundraising. It won't match up, right? Build a system that matches your values."

Key Takeaways:

• Shift from Transactional to Relational: Transitioning to relational fundraising fosters deeper, more meaningful connections with donors.
• Focus on Retention: Prioritizing donor retention over acquisition leads to sustainable fundraising success.
• Leverage Technology Thoughtfully: Utilizing platforms like Every.org and integrating AI can streamline processes and enhance donor engagement.
• Align Fundraising with Organizational Values: Ensuring that fundraising practices reflect core values builds trust and authenticity.
• Empower Development Staff: Reducing administrative burdens allows development teams to focus on nurturing donor relationships.

Notable Quotes:

• Alison Fine [03:49]: "My mission is to reshape the entire field of fundraising... to engage with and bring joy to donors."
• Alison Fine [04:35]: "It's six decades of conventional wisdom that the way to get a donation is to just keep asking... until there's no one left to ask."
• Alison Fine [23:12]: "The dehumanizing of the $25 donor is because of the leaky bucket."
• Alison Fine [25:42]: "It is a system built to make nonprofits dependent on that conventional wisdom... It's a broken system."
• Joan Garry [38:45]: "You have made me feel valued... an injection of meaning and purpose that I am so fecking hungry for."

Final Thoughts

Episode 208 of Nonprofits Are Messy offers a compelling exploration of the need for a paradigm shift in nonprofit fundraising. With Alison Fine's expertise and passion, listeners gain valuable insights into building more sustainable, values-driven, and joyful fundraising practices. By embracing relational fundraising and leveraging innovative technologies, nonprofits can repair the strained dynamics of donor relationships and foster a more vibrant, supportive ecosystem.