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European and North American Fundraising Practices: An Opportunity for Learning

Charities are run differently, depending on the continent you’re on. And it’s these differences which can help us to learn more about what inspires giving, as well as teach us how to measure those crucial factors which ultimately attract more donations.

Differing Donation Environments

In the United States, a donor can elect to set future dates for donations to a charity whilst they enjoy income from the capital. At tax time, the US donor benefits from tax relief. It’s this type of what they call ‘planned giving’ that forms the bulk of major donations made. As well, giving is considered to be more of a publicly-motivated practice.

Here in the UK, however, philanthropy is a quiet and personal act. Indeed, a culture of privacy exists around the practice of giving. As well, any donation is supported by a percentage from the tax man through Gift Aid. This is something our American counterparts do not have access to.

On both sides of the Atlantic, however, it is the practices of the charity, in terms of how donor money is used, how their cause is communicated, and how the charity itself communicates with its donors that make the largest impact on the amount of donations received.

Donor Choice

Not only can a US donor elect to choose when and how they donate, but some charities will also allow donors to choose where they wish their donation to be directed, and then update them with regular video, photo or another means of communication.

Direct Appeals, Video and Honesty

US charities have no qualms about being direct. When they require funds, they address donors directly with boldness and confidence. Video content is utilised extensively by several departments to acquire, retain and develop donors. Finally, honesty and transparency with donors plays a huge role, with any failures experienced and errors made being shared with donors. This inclusive approach allows donors to feel more a part of the charity itself, which cultivates donor loyalty.

CRM’s Role in Improved Donor Acquisition, Retention and Development

There is no doubt that much can be learned from the way in which many US charities acquire their funds and retain donors. UK charities that have implemented fundraising CRM software can use it to achieve the kinds of connections with donors that result in long-term contributions.

Acquisition

The success of the acquisition strategies a charity uses can be monitored with the use of CRM software. Coded links to funding appeal videos can provide charities with much insight as to the most popular appeals. Once enrolled, donors can be communicated with via the use of email campaigns in which video and other content can be embedded. Each campaign can be monitored by CRM software, and the results stored for future campaign comparison, analysis and improvement.

Acceptance of Donations

The ability of CRM software to integrate several different mediums can be of definite benefit to charities, allowing them to accept donations from a number of channels. CRM software can also track the frequency of donations, as well as make it easy for staff to set up donation schedules for individual supporters.

Relationship Development

Ongoing communication and the results of these efforts are both aspects which CRM software can be used to monitor and manage. Whether they communicate with donors via their website, email communications or social media page, charities can use CRM to generate reports for each medium and provide information about which of the channels are connecting with donors best.

It’s this combination of successful practices and fundraising CRM software that can allow any charity to more deeply engage its supporter base.