September/October 2004

Major Gifts and Internet Strategy Go Hand-in-Hand

by Mike Hoffman, Chairman, Changing Our World

Recently, I was speaking with an executive of Tiffany & Co., known for its high-end jewelry and gift lines. Although a visit to the company’s luxury stores is often touted as a highlight for shoppers, he described the growing popularity of online shopping for the store’s products. At a Web site consistent with the store’s brand and style, buyers engage to varying degrees, from simply browsing to completing purchases online. An interesting pattern has emerged, it seems, among men shopping for engagement rings: They visit the store’s Web site to do their research on diamonds — with their range of colors, cuts and prices — and then use the site to book an appointment at the store to make their final selections.

I think these prospective grooms are behaving like many consumers today and also — of particular interest to nonprofits — like many donors. Donors are empowered when they can arm themselves with information from the Internet, and wise nonprofit professionals will recognize the opportunities and vulnerabilities this may reveal.

While the Internet may be a great research tool, enabling organizations to assess the giving potential of donor prospects, do the organizations know who is looking into their Web sites and why? Of course, conscientious nonprofits are aware that the public can examine their financial statements online through GuideStar® and other sites. But as donors are becoming increasingly well informed, and to some degree concerned or even skeptical about nonprofit accountability, they will be asking legitimate questions that a nonprofit’s online communications should answer.

How focused should an organization be on keeping its Web site up to date? Will a donor find a current listing of trustees and executive staff members? Does the organization use its site to tell compelling stories about the people it serves, not just to report on its social events? Is the mission statement clear and prominently featured, and is it reflected in the programs described? How confident can donors be that their dollars are going to the best use, to effect real change, at the lowest cost? 

Are online giving capabilities as effective as they should be? Remember, like those nervous grooms, major donors may not be willing to plunk down substantial dollars online. But, will the nonprofit’s Web site guide them through the process to the point where they will make commitments when meeting face-to-face with the nonprofit’s staff?

How about constituent email and electronic newsletters? Again, is the organization making the most of every opportunity to inform and engage current supporters, and keep them coming back — at higher donation levels?

When my firm advises nonprofits about to embark on a capital campaign or major development initiative, we interview their current supporters, board members and friends. Invariably, these interviews shed light on relationships that should be stronger or communications that have been damaged in some way. In years past, that might have meant a trustee who failed to receive a Christmas wreath, or a donor whose name was misspelled on a plaque. Today, remember that the full circle of communications with the most important constituents will include careful attention to online relationships — and those must be two-way.

Be sure that every email query is answered promptly. That changes to donor addresses are kept up to date in the database. That a supporter sending a friend to the organization’s Web site has confidence that his referral will find the necessary information promptly.

Although the act of closing a major gift will almost always occur face-to-face, do not risk breaking that connection somewhere along the way. Like the nervous bridegrooms, donors require hand-holding, but the attentive fundraiser will remember that the process could lead to a lasting commitment.

Mike Hoffman is chairman of Changing Our World Inc., a national fundraising and philanthropy services consulting firm helping nonprofits, corporations and foundations achieve their philanthropic goals. He can be reached at mhoffman@changingourworld.com 

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