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The Name Is The Game: Memberships And Named Gift Opportunities  In
the nonprofit world, when it comes to "memberships," we seem
to be of two minds. On the one hand are memberships that convey benefits
in exchange for a fee, and on the other, those that recognize donors for
gifts made. In
fee-based memberships, a patron of The Metropolis Museum can "join"
that institution and become a member by paying a fee of $25 or $50 and
receive a monthly magazine, free admission, a discount at the museum
shop, special event invitations, etc. To my way of thinking, this type
of membership is actually an earned income opportunity and is better
left to the museum's marketing department. Those fee-paying members have
more in common with a performing arts organization's season ticket
holders than its donors, and their real value to a development effort
lies in their potential to contribute to fund-raising campaigns, rather
than the fee they pay for their membership. Recognition-based
membership programs are tools used to convert prospects into donors and
to increase the size of gift. They are one of the most useful tools
fund-raisers have. Donors giving at a certain level to the annual fund
become Friends of the organization. If they give at increasingly higher
levels they have the opportunity to be recognized as Contributing
Friend, Supporting Friend, or Sustaining Friend. Then there are those
who give more that one could ever expect from a friend and enter the
rarefied air of Benefactor or even Founder. Perhaps they become members
of the President's Circle. What
matters is the concept, not the name. The idea is to tastefully and
properly recognize donors for their generosity. Their names should
always be printed in the annual report under their respective membership
categories. For the highest levels of donors, a wall in the lobby of an
organization's facility can be reserved for all to see who is a
Benefactor or Founder. The
personal value received by these members is recognition and association,
but there is no reason to be shy about providing "perks"
appropriate to their level of contribution. For arts and cultural
organizations those awards obviously can be benefits similar to what are
"sold" through the marketing-effort type of membership program
cited above. However, social service, education, healthcare, or
community development organizations are not without the opportunity to
offer tangible manifestations of appreciation of their own. Invitations
to dinners and receptions at trustees' homes or clubs can be enticing
benefits for donations of say, $500 or more. Another possible show of
appreciation might be to have a corporation sponsor a membership program
and host a luncheon honoring selected major donors and key volunteers.
In
my experience, the best "gift" you can give to annual fund
donors is to let them know that their gift to the organization has made
it possible to do specific and meaningful things for the community, such
as: six months of a scoutmaster's service to inner-city children, a week
of computer training for a welfare mother to help prepare her for
employment, an education outreach program enriching the lives of 100
students, etc. Recognition
membership programs are of great value to a development effort because
they ease the process of asking for money by giving both the donor and
solicitor a hook on which to hang their hats. If a member of the
Benefactors Circle gives $1,000 each year and prospects can see that
their close colleagues or neighbors are, for the most part Benefactors,
then that is a persuasive argument for giving $1,000 rather than $500.
Such a membership program allows us to individually tailor giving
suggestions while at the same time providing subtle peer group
association pressure and offering a little something extra for that
larger gift. Do not underestimate how useful that is to a volunteer
solicitor who is in position to say: "I am asking that you please consider making an increased gift this year to our annual fund in the amount of $1,000 and join the other generous members of our Benefactors Circle. You may know some of our Benefactors---here, let me show you a list of them..... and we would be delighted to add your name to this impressive roster. Along with our sincere appreciation for your thoughtful gift and the knowledge that it will help meet the needs of the community, we would be delighted to be able to extend to you the benefits of membership in the Benefactors Circle---allow me to tell you what they are....." One
of the most important things this does is to allow the conversation to
continue after the suggested gift has been stated without focusing
exclusively on the dollar amount being sought. The privileges of
membership become a secondary enticement for making a very specific
contribution. Which is of course the position they should
occupy---secondary. We must never think of a gift solicitation as a quid
pro quo transaction. We must never lose sight of what philanthropy
really is.Philanthropy
occurs when the donor and the fund-raiser share a keen sense of what is
right---a sense that something good has taken place---not simply a tax
deduction obtained, an invitation to dinner acquired, or a step taken up
the social ladder. Philanthropy occurs when donors feel that the
decision to give is justified by the merits of the project and in return
they expect nothing more---and certainly nothing less---than that the
organization will use their gift as promised and will use it well.
Donors are well aware that the money you spend to provide material
recognition, is the money they gave you in the first place. And
remember, no response to a gift is more meaningful and more appreciated
than a simple, sincere, thank-you.Recognition
membership programs, such as the ones we have been describing in
relationship to annual funds, have their counterpart in capital and
endowment campaigns. Named gift opportunities are offered as symbolic or
commemorative gestures of appreciation for gifts of a predetermined
size. It requires a certain amount to acquire a certain naming right,
but the contribution need not literally offset the expense associated
with what is to be named. In a capital campaign, naming rights to a
classroom would not necessarily be the exact construction's cost. Naming
rights for endowing a chair in a university do not need to be exchanged
for an endowment that would actually produce the exact income to cover
the expense each year.Do
not pass up opportunities out of fear of "selling" naming
rights for too little. Remember, they are symbolic and commemorative.
You set the "price" based on the needs of the campaign and the
rated giving potential of your major prospects, or "what the
traffic will bear." In a bricks-and-mortar campaign, when a
potential donor is considering making a gift that is far and away the
largest donation to the campaign, and when that gift is truly a
substantial portion---probably more than half---of the total
construction expense, then offering that donor naming rights for the
entire building may be appropriate and persuasive.General
endowment campaigns often seek donations to provide income in perpetuity
for unspecified operating support. However, commemorative naming
opportunities can still be offered. There is no reason why the Joseph
and Jane Smith endowment gift can't be hailed in the annual report or
celebrated on the wall of a building. Other, more specific, endowment
campaigns abound in naming opportunities. Faculty chairs, artistic
positions, medical departments, etc., are all opportunities for ongoing
recognition of donors. The gift is made for the good of the
organization, but a donor, nonetheless, appreciates the perpetual
recognition provided by a naming opportunity. Donors of smaller
amounts to capital and endowment campaigns also can be provided with
appropriate visible appreciation. There is no reason that givers to a
capital campaign cannot be recognized in post-campaign publications, in
the lobby of a new building, or at the grand opening celebration.As with capital
and endowment campaigns, sponsorships offer naming opportunities---the
ABC Corporation Lecture Series or the XYZ, Inc. Neighborhood Improvement
Program, for example. Sponsorship opportunities often grow out of an
organization's budgeting process. Programs and services which are able
to be identified as having their own cost can be lifted from the expense
budget, "packaged" for sponsorship, and presented to potential
donors.Memberships,
naming opportunities and sponsorships are all points on the continuum of
recognition and appreciation. They are tools all fund-raisers should be
using to maximize support. A good recognition membership program can
energize an annual fund appeal grown tired over the years. No capital or
endowment campaign should ever be undertaken without a detailed naming
opportunities plan. Sponsorships can turn a small annual corporate
contribution into substantial underwriting of a well packaged program.
When it comes to fund-raising, often the name IS the game.Those
are my views on the subject. What are yours? I welcome your comments and
suggestions. tony@raise-funds.comNote: Additional Resources relative to annual fund memberships are available through my website using pdf and/or html methods as follows:
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