On February 14th, an impactful Valentine’s Day card arrived in the mailboxes of a group of unsuspecting donors. So impactful, in fact, that its sender, Ottawa-based SuzukiMusic – a nonprofit dedicated to promoting the musical education of children using the Suzuki approach – could call the initiative a fundraising coup. Helping to promote an upcoming tour of China by the school’s musical ensemble, the card featured a photo of the group dressed in the holiday garb of red, pink and white. It didn’t take long to realize the gift resonated strongly with the recipients. “It came back to us overnight,” states fundraiser Victoria Barham enthusiastically. While not a new initiative, the card is a good example of a concept recently introduced into the sector: supporter marketing. Though the term has not yet made its way into the nonprofit vernacular, some are speculating it’s only a matter of time.

What’s it all about?

The exact definition of supporter marketing still seems up for debate, but one thing’s for sure: it represents a departure from the traditional way of doing things – if even subtle – and a move toward a new approach, a new way of thinking and acting. According to Jim Mintz, director of Carleton University‘s Centre of Excellence for Public Sector Marketing, supporter marketing is “fundraising with a new twist.” In his view, the new approach encompasses techniques, both old and new, to retain and recruit donors.

Chris Carter Chris Carter Marketing, an integrated marketing firm based in Toronto, agrees with the overall definition but sees it focused more on retention. Yet, no matter the divergence, many agree that supporter marketing involves one essential aspect: the convergence of roles. Fundraising and marketing were at one point very separate, he says. But that distinction is disappearing. “There’s a dichotomy,” he explains. As members of both the AFP and the CMA, people are starting to ask, ‘am I a fundraiser or a marketer?’ As they move away from the distinction, however, they come to realize, “it’s about marketing to your donors and fundraising is just a part of it.”

If you build it, they will come

“Supporter marketing straddles fundraising and marketing,” echoes Jocelyne Daw of Imagine Canada. And it’s not hard to see why the new approach is important for the sector to adopt. With the proliferation of nonprofit groups springing into the competitive environment, organizations are stuck with an essential quest: how do we stand out? Supporter marketing answers that question. “Organizations need to focus on their core, their mission, who they are, what they do, what they stand for,” explains Daw. They then need to clearly communicate to donors how the programs they deliver help achieve their mission.

Only once they’ve established those elements can fundraising be a focus. “That’s how you distinguish yourself and create awareness,” she states. That’s also how you avoid mission drift, often a result of nonprofits focusing too much on fundraising and money, to the detriment of their mission. The money will come but communicating with donors is key. In essence, supporter marketing has taken fundraising and turned it on its head. The renewed focus ensures nonprofits communicate their value first, with money flowing organically.

Which brings us back to Valentine’s Day and SuzukiMusic’s effective form of communication…of supporter marketing. And the nonprofit’s initiatives didn’t stop there. When the ensemble headed off on their tour to China, the musicians kept donors abreast of their daily activities with a running blog. For bonus points, they uploaded videos of their performances on the ever-popular YouTube, recognizing the generosity of their donors in the credits.

Happy donors = happy nonprofits

Aside from her fundraising work with SuzukiMusic, Barham is also chair of the department of economics at the University of Ottawa. So, while unfamiliar with the term supporter marketing, Barham has a good idea of its essence. “It’s a new name for an established practice, that of donor stewardship, something that nonprofits should be doing well.” SuzukiMusic needs to be doing it even better than most, she says, due to its small size and donor base. “That’s why we understand we absolutely have to take care of our donors.” Donors want to be sure their investment is going into an organization that has the capacity to manage money and use resources wisely, she adds. And everything an organization does contributes to building donor confidence.

“We’re constantly thinking about how we can reach donors and make them feel excited about what we’re doing and feel their investment had an impact and was appreciated.” Innovative efforts like YouTube videos will be looked at for years, giving a long tail to the impact of the donor’s sponsorship. “It’s not enough to have great projects; you also have to convince them that, over time, you’re able to consistently execute the projects.” With the presenting sponsor of their tour to China, Manulife-Sinochem, agreeing to cover half of their trip’s total budget, it seems SuzukiMusic is convincing indeed.

Bringing the message home

The Canadian Red Cross never struggled with convincing Canadians they had value and could deliver on their mission, at least not on an international scale. Their incredible work in conflict zones worldwide has given them an esteemed reputation. The challenge, however, was how to successfully communicate to donors the organization’s accomplishments in Canada. But that all changed on December 26, 2004. The Asian tsunami saw a huge increase in corporate and individual donors, many of whom were giving for the first time. The tragedy basically opened the door to the organization’s future donor base and the possibility of communicating the breadth of their mission in Canada more effectively. And along with it came a new approach, one in line with supporter marketing.

“After the tsunami, I saw a shift in philosophy, in how we looked at donors, and how we nurtured relationships and tried to build long-term ones; that’s where our focus has gone to,” explains Richard Kies of the Red Cross – Southern Saskatchewan Region. “It allowed us to talk to the donors and say, ‘Thank you for supporting our international work. Let’s tell you what we’re doing in Canada.’” Effectively, the new opportunities allowed the group to communicate anew who they were and what they stood for. As a result, retention turned into acquisition. “Now many of them are supporting local and Canadian programs as opposed to just the international work we do.”

And when pursuing donors, the organization makes sure to focus beyond the ‘ask’. It comes down to building relationships. “Our philosophy is to steward, nurture and develop that relationship so that one-time donors become ongoing supporters,” says Kies. Part of that nurturing involves communicating with their donors in the ways they prefer. So if someone signed up online, the organization will use that medium of choice more generously in the future, through e-mails, electronic updates, and online reports. The Canadian Red Cross is venturing into social media as well, and their international delegates have started to blog about their experiences in the field. Of course, providing information is at the forefront of these initiatives, but the soft sell is never too far behind.

Consider this

While supporter marketing is still in its infancy and the term remains largely unknown, a growing number of nonprofits have already adopted its philosophy. Daw is hopeful but advises them to take care. The efforts need to be clearly supported by the board and the senior leadership, she explains. Everyone needs to work together to ensure effective integration. “You need to ensure you’re really breaking down the silos and truly working as a team.”

For those who won’t adopt supporter marketing, Carter is understanding, albeit frustrated. He attributes the reticence to the sector’s risk-aversive and conservative nature. Taking new steps and doing things differently is not easy. And with money scarce, these new steps can be frightening. But the results are sometimes unfortunate. The charities who do supporter marketing well are getting bigger and bigger, he says, whereas many others – who are doing excellent work – have surrendered the marketplace to them. “It’s difficult when you think about all the work they could be doing and how many more people could be helped.”

Benefits of supporter marketing

  • Increase awareness of your work.
  • Avoid mission drift.
  • Improve donor retention.
  • Raise more money.

 

Elisa Birnbaum is a freelance journalist, producer and communications consultant living in Toronto. She is also president of Elle Communications and can be reached at: info@ellecommunications.ca.

Please note: While we ensure that all links and e-mail addresses are accurate at their publishing date, the quick-changing nature of the web means that some links to other web sites and e-mail addresses may no longer be accurate.