We Are For Good Podcast - Episode 622 Summary: "Hold Fast: Building Donor Trust in Uncertain Times" with Mike Dirksen
In Episode 622 of the We Are For Good Podcast titled "Hold Fast: Building Donor Trust in Uncertain Times," hosts Jon McCoy, CFRE, and Becky Endicott, CFRE, engage in an insightful conversation with Mike Dirksen, CEO of BuildGood. This episode delves into the crucial strategies nonprofits must adopt to maintain and build donor trust amidst today's uncertainties.
1. Episode Introduction and Guest Overview
Hosts Introduction: Jon McCoy and Becky Endicott open the episode by setting the stage for discussions pertinent to nonprofit professionals facing increasing pressures to amplify their impact. They emphasize the podcast's mission to foster an "Impact Uprising" through innovative ideas and inspirational stories.
Introducing Mike Dirksen (00:38 - 02:17): Becky warmly welcomes Mike Dirksen, highlighting his three appearances on the podcast and his role as CEO of BuildGood. Mike is praised for his ability to transition organizations from transactional fundraising to building meaningful, sustainable relationships with donors—an especially timely topic as 55% of the community identifies maintaining strong funding relationships as their primary challenge.
Notable Quote:
Mike Dirksen (02:54): "You actually walk the talk on the community thing. Everybody's like, ah, yeah, community, right. Just get closer to people... it's incredibly inspiring."
2. Navigating Current Challenges in Nonprofit Fundraising
Discussion Begins (03:03 - 05:31): John McCoy poses a pivotal question to Mike about how nonprofit leaders can approach donor acquisition and retention during chaotic times. Mike introduces the concept of focusing on retention rather than solely on acquisition, explaining that sustainable growth often hinges on maintaining existing donor relationships.
Key Insights:
- Retention vs. Acquisition: Retaining donors is generally more cost-effective and reliable than acquiring new ones.
- Growth Calculations: Mike illustrates the complexity of growth targets by showing that aiming for a 20% increase isn't just about raising an additional 200k but also compensating for a 20% donor and revenue churn, effectively doubling the effort needed.
Notable Quote:
Mike Dirksen (03:19): "A lot of your growth is very likely going to come from retention, maybe not as much from new donor acquisition."
3. Strategies to Engage and Activate Existing Donors
Identifying and Prioritizing Donors (08:07 - 10:15): Becky builds on Mike's points by asking how organizations can identify and prioritize existing donors for deeper engagement. Mike outlines two primary methods:
- Analyzing Donor Data: Focus on multi-year donors who consistently give year after year, regardless of the gift size.
- Donor Surveys: Utilize surveys to ask donors if they're open to making larger contributions in the future, effectively pre-qualifying potential major donors.
Implementing the "Nine-Word Email" (10:15 - 12:00): Mike introduces a straightforward yet powerful tactic known as the "nine-word email"—a concise, plain-text email from a key figure in the organization asking for permission to share more about an important project.
Example Provided:
Mike Dirksen (11:55): "Becky, we have an important project coming up. Can I share more?"
This approach strips away formatting and unnecessary elements, fostering a more personal and direct connection with the donor.
Notable Quote:
Mike Dirksen (12:00): "It's a bit of a two way. It's not just you yelling at the void."
4. Maintaining Motivation and Consistency in Fundraising Efforts
Addressing Fundraising Grind (14:09 - 17:13): In response to a listener's question about sustaining motivation during slow fundraising periods, Mike emphasizes the importance of consistency. He uses the analogy of gardening to illustrate how persistent effort, even when results aren't immediately visible, eventually leads to growth.
Key Takeaways:
- Consistency Compounds: Continuous, steady efforts in donor engagement yield significant long-term benefits.
- Emotional Resilience: Fundraisers must embrace the emotional labor involved in building and maintaining donor relationships.
Notable Quote:
Mike Dirksen (16:00): "If we're doing all the right things and if we do them for a long time... healthy things just, like, can't help but grow."
5. The Fundraising Flywheel: A Continuous Cycle of Engagement
Exploring the Fundraising Flywheel (19:17 - 23:48): Mike introduces the concept of the "fundraising flywheel," a cyclical process comprising listening, engaging, asking, celebrating, and reporting. This model emphasizes building trust and deepening donor relationships through consistent and meaningful interactions.
Components of the Flywheel:
- Listening: Understanding donor needs and interests.
- Engaging: Creating two-way communication channels like webinars or town halls.
- Asking: Making targeted and thoughtful requests for support.
- Celebrating: Acknowledging and celebrating donations to foster a sense of community and joy.
- Reporting: Keeping donors informed about the impact of their contributions, reinforcing trust and transparency.
Notable Quote:
Mike Dirksen (22:30): "Trust is built by making promises and keeping them and reporting back is basically you saying, we asked you for money, you gave. Something good is happening."
6. Emphasizing Human Connections in the Age of AI
Humanizing Fundraising (25:19 - 26:08): As the discussion shifts towards the future, Mike stresses the importance of maintaining human-centric fundraising strategies, especially with the rise of AI. He advocates for personalized interactions, such as handwritten notes and short video messages, to differentiate nonprofits from automated, impersonal outreach.
Actionable Advice:
- Personal Touchpoints: Utilize methods like handwritten notes or brief video messages to connect with donors.
- Human Over Automation: Lean into human interactions that AI cannot replicate to build deeper, more authentic relationships.
Notable Quote:
Mike Dirksen (30:03): "Think about what is the most human thing we can do... because it's clear that AI cannot do this and just lean into that."
7. Actionable Steps: Homework for Listeners
Tactical Recommendations (26:30 - 32:33): Mike provides listeners with practical "homework" to implement the discussed strategies:
-
Donor Analysis:
- Pull a list of donors with at least three gifts but haven't donated in the past 18-24 months.
- These donors are valuable and should be re-engaged.
-
Outreach Methods:
- Use the "nine-word email" or similar concise messages.
- Leverage tools like ringless voicemails or LinkedIn's voicemail feature to maintain personal contact without being intrusive.
-
Consistency in Communication:
- Set a regular cadence for outreach and reporting to ensure ongoing engagement and trust-building.
Tool Mentioned:
- Slybroadcast.com: For sending ringless voicemails that allow nonprofits to reach out without disrupting the donor's day.
Notable Quote:
Mike Dirksen (27:43): "Let's just go, hey, I just wanted to check in. How are you? How are you with all of this?"
8. Conclusion and Final Insights
Final Thoughts (33:00 - 33:04): The episode wraps up with heartfelt appreciation for Mike Dirksen, emphasizing the value of his insights and the positive impact of his work with BuildGood. Guests and hosts reaffirm their commitment to fostering a community focused on making a meaningful difference.
Final Notable Quote:
Mike Dirksen (31:24): "We get to be the most human thing ever... something you can do, and we're gonna let you know, like, the progress that you're making together."
Key Takeaways:
- Prioritize Donor Retention: Focus efforts on retaining and deepening relationships with existing donors rather than solely acquiring new ones.
- Consistency is Crucial: Regular and consistent engagement builds trust and leads to sustainable growth over time.
- Human-Centric Approaches: Personal, authentic interactions outperform automated methods, fostering deeper connections and trust.
- Utilize Strategic Tools: Implement practical tools and tactics like the "nine-word email" and ringless voicemails to enhance outreach effectiveness.
- Engage Through the Flywheel: Adopting a cyclical approach to listening, engaging, asking, celebrating, and reporting ensures a continuous and trusting relationship with donors.
This episode offers valuable strategies for nonprofit professionals aiming to build and maintain donor trust, emphasizing the importance of human connection and consistent, meaningful engagement.