Be a Purple Cow: How My Uncle Harry Built a Remarkable Brand
My Uncle Harry started his produce business during one of the toughest times imaginable, the Great Depression. Despite the challenging circumstances, the business grew and thrived for over 70 years. One key to his success? His purple trucks—literally. Yes, purple trucks. Bright, colorful trucks that turned heads and sparked conversations, just like Seth Godin’s concept of the Purple Cow, which we’ve discussed before. In his marketing classic Purple Cow, Godin argues that in order to stand out in a crowded marketplace, you need to be remarkable. You need something that makes people stop and pay attention—something memorable. For my Uncle Harry, that something was his fleet of brightly colored trucks. Standing Out with a Purple Cow Harry started his business in Richmond, Virginia, selling produce. As a child, I remember hearing people say, “Your Uncle Harry is an honest man. The produce he sells looks just as good at the bottom of the basket as it does at the top.” That reputation for honesty contributed to his brand’s positive image, as did the company motto, “Fresh is Best.” The iconic logo of a cornucopia filled with vibrant fruits and vegetables also helped. But what everyone remembers most are the trucks. Painted in bright colors like lime green, banana yellow, and yes, purple, the trucks stood out on the roads. They were a visual reminder of Uncle Harry’s business everywhere they went. When I asked him why he chose such bold colors, he said, “I wanted to stand out, and for people to think I’m everywhere. If my trucks stand out—if people see them and remember them—they might think we’re even bigger than we are.” Why Being Remarkable Matters Seth Godin’s idea of the Purple Cow centers on the need for businesses to stand out. In a marketplace flooded with ads and competing messages, fitting in is the same as being invisible. Godin says that to survive, companies need to offer something remarkable—something people talk about and remember. On any given day, we’re exposed to thousands of marketing messages. How can we cut through the noise? A catchy motto, an iconic logo, or even a strong reputation may not be enough. What you need is your own version of a “purple truck”—something that grabs attention and stays in people’s minds. What This Means for You Many of you have shared how you’re applying Viguerie’s Four Horsemen of Marketing to your organizations: positioning, differentiation, benefit, and brand. These principles help you figure out how to stand out and transform your impact. The key is to offer something so remarkable, so unique, that people can’t help but talk about it. As you work on positioning your nonprofit or business, think about your own “purple truck” or “purple cow.” What can you do to make your brand unforgettable? Final Thoughts My Uncle Harry’s purple trucks were more than just a quirky business decision—they were a deliberate strategy to stand out. In today’s crowded marketplace, being remarkable is not optional—it’s essential. As always, I’m grateful for your feedback on these Tips. Next week, we’ll shift to examples of nonprofits using these principles effectively. Please share any organizations you think have embraced their “purple cow.” All the best, Kevin Gentry P.S. The idea for Purple Cow came from a poem by Gelett Burgess: I never saw a Purple Cow, I never hope to see one; But I can tell you, anyhow, I’d rather see than be one.
How Hillsdale College Built a Brand That Amplifies Like a Megaphone
Imagine a small, private liberal arts college with fewer than 1,500 students, tucked away in a rural setting. Now, imagine that same college with an endowment valued at over $900 million, raising more than $200 million in contributions annually, and boasting over 6 million subscribers to its monthly newsletter. That college is Hillsdale. Hillsdale College is a prime example of how a nonprofit organization can benefit from a strong brand. Through a clear understanding of positioning, differentiation, benefit, and brand—what we call Viguerie’s Four Horsemen of Marketing—Hillsdale has grown into a national powerhouse. What Makes Hillsdale Stand Out? I recently spoke with marketing legend Richard Viguerie, and here’s what he had to say about Hillsdale’s success: Positioning: Hillsdale has established itself as the primary educator on America’s founding principles. The college focuses on teaching the Declaration of Independence, the Constitution, the Bill of Rights, and the Federalist Papers. This niche sets it apart from other institutions. Differentiation: Hillsdale distinguishes itself through a variety of channels, such as Imprimis, its free monthly digest, and free online courses on topics like character, faith, and freedom. Hillsdale also has the Kirby Center in Washington, DC, and initiatives like the Barney Charter School and the Center for Constructive Alternatives. Benefit: A key benefit is that Hillsdale takes no state or federal money. This principled stand resonates with supporters and establishes the college as a leader in independence and integrity. Brand: All of these elements—positioning, differentiation, and benefit—roll up into a brand built on principles and education. Hillsdale’s leadership, particularly under President Larry Arnn, has taken the brand to new heights by focusing on its unique vision and amplifying it through marketing. Leadership and Vision Viguerie emphasized that much of Hillsdale’s success can be attributed to its leadership. Larry Arnn had a bold vision to make Hillsdale the best-known college in the world, reaching millions of Americans with ideas about America’s founding principles. By leveraging effective marketing and surrounding himself with the right people, Arnn helped turn that vision into a reality. Hillsdale’s story underscores the importance of innovation and marketing in leadership. As Peter Drucker famously said, “The number one job of a leader is to innovate and market.” Hillsdale has done just that, becoming a model for how nonprofits can seize opportunities and build powerful brands. Key Takeaways for Nonprofits Hillsdale College offers a valuable case study in how to apply the Four Horsemen of Marketing to grow and amplify your impact: Find Your Niche: Position your organization in a unique space that sets you apart from the competition. Differentiate Yourself: Utilize every available channel—online courses, newsletters, media appearances—to stand out. Offer a Clear Benefit: Be transparent about the value your organization offers, whether it’s through principles, impact, or mission. Build a Strong Brand: Consistency in your message and actions builds trust and recognition. Final Thoughts Hillsdale College proves that a small organization with the right leadership and vision can amplify its voice like a megaphone. By applying the Four Horsemen of Marketing, you too can transform your nonprofit’s growth and impact.
How Your Personal Brand Is a Tribute to Your Mother: Building Loyalty in Fundraising
As we honor our mothers, it’s fitting to reflect on the foundation they helped us build. Just as they shaped our values, they also influenced the way we create and sustain our personal brands today. Much like how our moms instilled in us the importance of keeping promises and expressing gratitude, these same values are central to building trust and loyalty in fundraising. The Foundation of Brand Loyalty: “How May I Help You?” One of the key lessons in brand building comes from Art Ciocca, a renowned figure in marketing. He believed that a real brand is not just about recognition—it’s about loyalty. And loyalty, according to Ciocca, is anchored in one simple question: How may I help you? At its core, building long-term loyalty is about being “other-directed”—putting the donor at the center of everything you do. By creating value for your supporters, you’re not only fostering loyalty but ensuring the longevity of your organization’s success. Why Building Trust Matters Brand loyalty is built on two essential elements: liking and trust. While we often focus on recognition through positioning and differentiation, trust is what keeps donors coming back. So, how do we create that trust? It’s about delivering on promises consistently and showing genuine appreciation for your supporters. Think about the basic values our mothers taught us—following through on commitments, expressing gratitude, and putting others first. These values form the bedrock of brand loyalty. The Importance of Paying Off Your Brand Rather than focusing solely on recognition through positioning and differentiation, it’s critical to also invest in building long-term loyalty. Many nonprofits struggle with donor retention due to high staff turnover, unfulfilled promises, and a lack of recognition for contributions. In some cases, nonprofits fail to put their donors first, which can erode trust and lead to declining loyalty. Addressing the Gaps: How to Build Strong Donor Loyalty Here are a few common issues that nonprofits face when it comes to donor loyalty: Inconsistent Gratitude: Donors often feel unappreciated when thank-you notes are delayed, disorganized, or nonexistent. Unfulfilled Promises: When nonprofits fail to deliver on their promises, donors lose trust. Poor Stewardship: Organizations must give credit to donors for their role in achieving mission progress. It’s far more effective to retain donors than to constantly seek new ones. Yet, many organizations invest heavily in acquisition while neglecting the systems needed to maintain donor relationships. Final Thoughts The values our mothers taught us—gratitude, commitment, and putting others first—are timeless lessons that apply to every aspect of life, including fundraising. By focusing on loyalty and trust, we can build strong, lasting relationships with our donors that will sustain our organizations for years to come. So, as you reflect on the lessons you’ve learned from your mother, consider how those same values can guide your approach to building loyalty with your supporters.
Managing Expectations: The Key to Building Lasting Donor Loyalty
In fundraising, setting the right expectations is essential. Whether you exceed, meet, or fall short of those expectations, your donor’s reaction will be tied to what they anticipated. But why does managing expectations matter so much? As Kevin Gentry points out in this week’s Tip, the way expectations are set and met has a direct impact on your nonprofit’s brand and reputation. And ultimately, that shapes donor loyalty. Why Expectations Matter in Fundraising In public relations, there’s a theory that reactions are overwhelmingly based on expectations. For instance, a sports team expected to lose but manages to come in a close second might be seen as a winner. On the flip side, a team expected to win big but narrowly edges out their rival might still be viewed as a disappointment. It’s all about expectations. The same principle applies to your nonprofit’s brand and reputation. When donors have clear expectations, meeting or exceeding them builds trust and loyalty. Falling short, however, can be detrimental—even if the outcome wasn’t necessarily negative. How Expectations Impact Your Brand Take, for example, the donor thank-you. As Kevin mentioned in a previous Fundraising Tip, the way you thank your donors can set the tone for their entire experience with your organization. Many readers shared stories of disappointment, where their generous gifts were met with inadequate or delayed gratitude. These experiences create unmet expectations, leading to frustration. On the other hand, when organizations consistently meet or exceed donor expectations, they build a loyal base that trusts them to deliver on their promises. This is where successful brand-building truly begins. The Art of Exceeding Expectations Art Ciocca, a renowned brand builder, once said, “Real brands are determined by consumers. What makes a real brand is consumer recognition and loyalty.” His advice? Always be “other-directed.” Put your donor or customer at the center of your efforts, and you will create long-term value for your organization. Trust, as we know, is the foundation of brand loyalty. And trust is built by consistently meeting or exceeding expectations. A Lesson in Integrity: Exceeding Expectations at Any Cost Ciocca’s dedication to exceeding expectations was so strong that when faced with a product issue early in his career, he chose integrity over profit. After discovering a harmless sediment in bottles of vermouth at his company, Ciocca ordered the destruction of all 25,000 cases, rather than risk damaging his brand by selling a product that didn’t meet expectations. This decision was costly, but in the long run, it paid off. His flagship product, Franzia, remains the world’s top-selling wine brand to this day. Takeaways for Nonprofits Set Clear Expectations: Make sure your donors know exactly what to expect from your organization. From how you’ll use their donations to how you’ll communicate with them, setting the right expectations from the start can make all the difference. Always Deliver on Promises: Exceeding expectations is a powerful way to build trust. But at the very least, make sure you’re consistently meeting the expectations you set. Prioritize Integrity: Like Ciocca, make decisions that align with your organization’s values, even when it’s costly in the short term. This builds long-term trust and loyalty with your donors. Final Thoughts Managing expectations is more than just meeting goals—it’s about consistently delivering on your promises and exceeding them whenever possible. By doing so, you’ll not only build a strong brand but also foster the kind of donor loyalty that keeps people coming back, year after year.
The Hidden Danger of Acronyms: How They Can Undermine Your Nonprofit’s Marketing Efforts
In today’s world of over-communication, where each person is bombarded with thousands of messages daily, standing out in the nonprofit space is harder than ever. So why are we making it even harder for ourselves by relying so heavily on acronyms? Acronyms: A Shortcut or a Setback? You’ve probably had conversations like this before: “Tell me about your organization.” “We’re NAAFOP, offering radically new solutions for our modern times.” “I’m sorry, I’m not familiar with NAAFOP. What does that stand for?” This conversation is all too common, and here’s the problem: Acronyms don’t stick. They’re new words with no existing identity in your prospect’s mind. And more often than not, they confuse rather than clarify. Why Acronyms Fail Acronyms may seem convenient, but they often work against you, especially when it comes to marketing. Here’s why: They Are Mostly Meaningless: Acronyms are new, unfamiliar words with no immediate connection to your audience. Unlike well-known words or phrases, they carry no emotional or intellectual weight. NASA and SCUBA might be exceptions, but these acronyms took years to become recognizable. They Create Confusion: Because acronyms have no inherent meaning, your audience may misinterpret them. They might even associate them with something unrelated to your cause. They Can Alienate Your Audience: Using acronyms can come across as cliquish or exclusive. If your audience doesn’t know what your acronym stands for, it can feel like they’re being left out of an inside joke. The Power of Real Words Think of some of the most successful nonprofit organizations: Heritage, Brookings, Cato, and Hoover. These names stand alone as real words or names with historical significance, making them easier to remember, relate to, and build a brand around. When to Rethink Your Acronym If your nonprofit’s name is an acronym, it might be worth considering a change. Yes, rebranding can be costly upfront, but it could save you from years of marketing challenges. After all, acronyms can often be a shortcut to nowhere, while a meaningful, memorable name can help your organization soar. Final Thoughts Acronyms might seem like an easy way to simplify communication, but they can end up undermining your marketing efforts. As nonprofits, we have a higher goal: to improve the lives of others. So, why not make it easier for people to understand, remember, and support what we do? Takeaways: Avoid relying on acronyms in your nonprofit’s name or messaging. Consider rebranding to a more memorable, meaningful name. Focus on building a strong, easily recognizable brand.
How St. Jude Children’s Research Hospital Became a Fundraising Giant: Lessons for Nonprofits
When it comes to successful nonprofit organizations, St. Jude Children’s Research Hospital stands out as one of the most remarkable. With over $2 billion in donations last year alone, St. Jude has transformed the way children with cancer are treated. How did they achieve such extraordinary success? The answer lies in their strategic application of the Four Horsemen of Marketing. St. Jude’s Story of Impact Founded in the early 1960s by the entertainer Danny Thomas, St. Jude has a heartwarming origin story. Struggling to make ends meet early in his career, Thomas prayed to St. Jude Thaddeus, the patron saint of hopeless causes, promising to build a shrine in his name if his fortunes changed. Shortly after, Thomas’ career took off, and in fulfillment of his vow, he helped establish St. Jude Children’s Research Hospital, which today stands as a beacon of hope for children battling cancer and other life-threatening diseases. In 1962, the survival rate for acute lymphoblastic leukemia was just 4%. Today, thanks to advancements made possible by St. Jude’s groundbreaking research and treatment methods, the survival rate has soared to 94%. The Power of Marketing Strategy So, how did St. Jude establish itself as a leader in both treatment and fundraising? It comes down to their mastery of the Four Horsemen of Marketing: Position, Differentiation, Benefit, and Brand. As fundraising pioneer Richard Viguerie explained, St. Jude’s approach provides a clear blueprint for other nonprofits to follow. Position: St. Jude occupies a unique position in the marketplace: free treatment for children with cancer. “No family receives a bill” is a powerful and distinctive claim that no other hospital can make. Differentiation: St. Jude’s identity is visually and emotionally tied to its founder, Danny Thomas, and the children whose lives have been transformed by their care. This emotional connection sets them apart from other medical and research institutions. Benefit: The primary benefit, of course, is to the children and families who receive life-saving care. But the donor’s benefit is just as important. Donors feel a deep sense of satisfaction knowing their contributions make a tangible, life-changing difference. Brand: St. Jude’s brand is a combination of these elements—its position, differentiation, and benefit—all rolled into one cohesive and powerful identity. When you hear the name “St. Jude,” you immediately think of its mission to defeat childhood cancer. Key Lessons for Nonprofits What can other nonprofits learn from St. Jude’s success? Here are a few takeaways: Carve Out a Unique Position: Identify what makes your organization different. St. Jude’s position as a hospital that provides free care to children in need is a powerful selling point that immediately resonates with donors. Invest in Your Brand: Your brand should reflect your organization’s values, mission, and unique strengths. The faces of the children St. Jude helps are at the center of its brand, creating an emotional connection with supporters. Communicate the Donor’s Benefit: In fundraising, it’s essential to communicate the benefit to the donor. St. Jude doesn’t just talk about what they do; they make it clear how donors are an integral part of saving children’s lives. Never Stop Innovating: Even with decades of success, St. Jude continues to innovate in both treatment and fundraising. Whether through research breakthroughs or new fundraising campaigns, they never rest on their laurels. Final Thoughts St. Jude Children’s Research Hospital offers a case study in how to use strategic marketing to not only raise funds but also change lives. By focusing on its unique position, clear differentiation, and the emotional benefit to both patients and donors, St. Jude has built a brand that stands the test of time. For nonprofits looking to strengthen their impact, the lessons from St. Jude are clear: focus on your unique strengths, build a compelling brand, and always keep the donor at the heart of your mission. By doing so, you can achieve extraordinary results—just like St. Jude.
How to Fundraise During Challenging Economic Times: Lessons from the Experts
In times of economic uncertainty, fundraisers often face an uncomfortable question: How do we continue raising essential funds when the economy takes a downturn? With talk of a potential recession on the horizon, many nonprofit leaders are seeking guidance on how to navigate these difficult waters. Preparing for Economic Challenges in Fundraising Brandon Borke, Vice President of Development at Young Americans for Liberty, recently raised a vital question that many fundraisers are asking: How do we fundraise during a recession? His question highlights a crucial concern, especially for organizations that have thrived during a period of economic growth. Brandon asked about the impact of previous recessions on fundraising and how organizations can not only survive but thrive during economic slowdowns. To answer these questions, I reached out to Kathleen Patten, President and CEO of American Target Advertising, a leader in direct mail fundraising for nonprofit organizations. With decades of experience and a proven track record, Kathleen’s insights offer valuable lessons for any organization preparing for tougher times. Three Storms Facing Fundraisers Today According to Kathleen, we’re already dealing with three major challenges: Inflation: Rising prices are impacting everyone, especially older, fixed-income donors who are typically the most generous. Fuel Prices: High fuel costs increase the price of shipping and distribution, impacting direct mail campaigns and other logistics. Supply Chain Disruptions: These challenges have driven up the cost of materials like paper and limited the ability to innovate in terms of mailing strategies. With these pressures already affecting the fundraising landscape, a potential recession could amplify these issues. As Kathleen warns, “If we get hit with a fourth storm – a recession – the problems will be compounded. And that’s not an easy storm to ride out.” What Fundraisers Can Do to Weather the Storm Despite these challenges, Kathleen offers key strategies to help organizations continue to thrive: Focus on New Donor Acquisition: Even in tough times, prospecting for new donors remains essential. Organizations should not abandon their efforts to acquire new supporters. Segment and Target More Effectively: If response rates drop, tighten your list segmentation to target your most likely supporters. Focus on delivering tailored, relevant messages. Stand Out with a Clear Brand: Donors are more likely to support organizations that present actionable solutions to the causes they care about. Ensure your messaging highlights your unique impact and sets you apart from the competition. Invest in Major Gifts: While smaller donors may be more consistent, major donors are often more sensitive to economic downturns. Strengthening your relationships with key donors is crucial in challenging times. The Importance of Adaptability and Innovation Kathleen also emphasizes the importance of staying flexible and adapting to the economic environment. “Too many groups send out letters that ‘cuss’ at the problems but don’t offer solutions,” she notes. In a competitive landscape, donors gravitate toward organizations with a clear plan for making a difference. Moreover, while some organizations may reduce their outreach efforts or trim acquisition budgets, Kathleen sees opportunities for growth, particularly for those that can demonstrate their ongoing relevance and effectiveness. “Donors are still passionate about causes,” she says, “but they’re looking to support groups that have a real plan to do something.” Key Takeaways for Fundraisers: Prepare, Don’t Panic Economic downturns don’t have to mean disaster for nonprofits. In fact, with the right strategy, organizations can continue to grow. Kathleen’s advice offers a clear roadmap: Don’t stop prospecting for new donors. Lean into your brand and clarify your organization’s value. Strengthen your relationships with major donors. Adapt to the shifting landscape, and don’t shy away from innovating. By taking these proactive steps, fundraisers can continue to make an impact even in difficult economic times. Final Thoughts As we navigate an uncertain economic future, it’s essential for nonprofits to remain focused on their mission while being flexible and strategic in their fundraising efforts. Tough times may test us, but with the right approach, they can also present opportunities for growth.
This Might Be Your Perfect Opening
Could it be that during this period of high inflation and a looming recession… there’s an opportunity to improve your fundraising success? That might sound counterintuitive, but let’s dig into it. What Should Fundraisers Do Differently Right Now? In times of uncertainty, it’s easy to speculate or panic. But instead, I turn to experienced practitioners—those who have their fingers on the pulse of donor behavior. These experts collect valuable data, and it’s this insight that helps them make informed decisions. One of those practitioners is Carsten Walter at the Heritage Foundation. For nearly 35 years, Carsten has overseen Heritage’s planned giving and data analytics programs. With more than 500,000 active members and supporters, Carsten has unique insights into donor behavior, particularly during tough economic times. What’s Happening Now? I asked Carsten the same question many of us are grappling with: How is fundraising being affected by the current economic climate? His response was enlightening: “We are seeing declining numbers on membership, and from our market research, we know that inflation is causing donors to dial back their giving.” In other words, yes, inflation is having an impact. But Carsten didn’t stop there. What Should We Do in Response? Carsten explained that despite the challenging environment, Heritage continues to mail donor acquisition letters. “We scale back somewhat,” he said, “but we are always in the mail and looking for opportunities to build on successful results.” The key here is that Carsten and his team at Heritage remain data-driven. Instead of making decisions based on speculation or fear, they lean on in-house research to understand what’s really happening. The Importance of Data Having access to solid, real-time data helps Carsten stay calm and clear-eyed during times of crisis. For example, when COVID hit, Heritage had already conducted an analysis on the impact of economic and election cycles on their fundraising over the last 30 years. This long-term view allowed them to make better decisions in the moment. Here are some of the insights they gathered: Membership Donors (<$10,000 per year): These donors tend to give more during economic downturns and when unemployment is high. They give less during presidential election years and when their preferred party is in power. Major Donors (>$10,000 per year): These donors behave differently. They give more generously in strong economic times but pull back in down markets. Their giving is tied more closely to their investment portfolios. What About Now? Carsten acknowledges that the current environment, driven by inflation, is unique. “The United States hasn’t seen inflation like this since the 1970s and early 1980s. So it’s difficult for us to assess exactly what will happen. But so far, we haven’t seen much impact on major donors.” He expects that the real test will come later in the year when the bulk of major donations typically arrive. And despite the uncertainty, Carsten offers a valuable reminder: “We shouldn’t use a recession as a crutch or an excuse. If we do our jobs right, we can excel even in bad markets.” Seizing Opportunities in Tough Times Carsten’s mentor, the late John Von Kannon, used to say, “This is a time to be near, dear, and clear with your donors.” This advice is as true today as ever. Economic uncertainty presents opportunities to strengthen existing relationships and build new ones. One example? Planned giving programs, which tend to be unaffected by economic cycles. As we move forward in this uncertain climate, it’s crucial to keep a data-driven approach and continue prospecting. There are always opportunities, even in challenging times.
Otherwise, You’ll Wither on the Vine
What am I talking about? I’m talking about the importance of continually prospecting for new donors. Even in challenging economic times. In fact, especially in challenging economic times. Systematic acquisition efforts are key to your long-term growth and success. Without them, your organization risks stagnating or even shrinking. The Power of Donor Acquisition A little more than ten years ago, John Davis took charge of the Leadership Institute’s direct mail fundraising program. At the time, the Institute had about 10,000 active donors and was mailing 100,000 new-donor acquisition packages a year. That might sound impressive, but John and the team knew they could do more. So, they did. The direct mail prospecting program, a core component of the Leadership Institute’s long-term fundraising strategy, follows a classic pipeline approach: Smart acquisition efforts bring in first-time donors. Effective stewardship programs lead to repeat giving. Ongoing cultivation transforms annual donors into major and estate givers. Simple, right? This is Fundraising 101. But the trick is maintaining the discipline and commitment to see this strategy through over time. Aggressive Prospecting Pays Off When John began in his role, Leadership Institute founder Morton Blackwell gave him a challenge: prioritize prospecting, even if it meant borrowing money to invest in donor acquisition. Morton’s conviction that donor acquisition was key to the organization’s future led to a significant increase in prospecting efforts. Initially, the team ramped up from mailing 100,000 acquisition packages to 1,000,000 per year. By last year, the Leadership Institute had mailed more than 8,000,000 prospecting letters. The results? They’ve grown from 10,000 active donors to nearly 100,000, and donor revenue jumped from $7 million to over $29 million annually. Last year alone, revenue increased by 44%. Why Does This Work? The Leadership Institute has demonstrated that it can recover its prospecting investment within two years. After that, renewals from these new donors provide an incredible stream of revenue. With consistent stewardship, donor giving increases year over year. They plan their new-donor acquisition around recovering $0.50 for every $1 spent, and as long as they hit that target, they continue mailing at scale. Each year’s prospecting efforts build on the previous ones, creating a compounding growth effect. The Importance of Prospecting in Tough Times So, what does this mean for fundraising in difficult economic times? It’s easy to see the short-term challenges—falling stock markets, rising interest rates, and general economic uncertainty. But the long-term strategy remains the same: systematic acquisition efforts ensure your organization’s future growth. Leadership Institute’s approach has proven that steady, smart prospecting brings long-term revenue growth, even when the economic landscape looks rocky. Stay tuned as we delve deeper into how large organizations like the Leadership Institute, American Target Advertising, and the Heritage Foundation navigate their fundraising efforts during challenging times.
Ready to Paddle Upstream?
It’s not as crazy as it seems. In challenging times like these, making bold moves in fundraising can feel like paddling upstream, but it’s a strategy that can set you apart. Soon, you’ll appreciate just how smart you were to take that approach. Last week, we discussed the importance of continually prospecting for new donors—especially in tough economic times. John Davis’ amazing example at the Leadership Institute provided a compelling “why” for this strategy. Today, let’s dive a bit deeper into the “what” and how you can apply it to your own fundraising efforts. Why Donor Acquisition Is Key Donor acquisition is an engine that creates long-term value. As John Davis has said, done well, donor acquisition will drive your organization forward for decades to come. The Leadership Institute’s strategy of systematically acquiring donors is a prime example. They invested in acquisition efforts, and the returns have been transformative. Since revamping their prospecting efforts in 2012, the Leadership Institute’s donor revenue from direct mail has increased by $15 million—an extraordinary return on investment. This brings us to a crucial point: Donor attrition is inevitable. Donors move on for various reasons—shifting priorities, financial setbacks, or simply losing interest. That’s why you must continuously replace lost donors to maintain and grow your revenue. How to Build a Smart Acquisition Program If you’ve been hesitant to launch a robust donor acquisition program, you’re not alone. I’ve heard plenty of concerns: How do I find good lists? We’ve tried it, and it didn’t work. We lack the resources. I don’t have the time or talent. The board won’t approve it. The good news is that these challenges can be overcome. John Davis offers a valuable piece of advice: Focus on maximizing lifetime value and tune out the noise. Instead of searching for magical new techniques, start by understanding the lifetime value of your donors. If you’re already generating healthy lifetime value, focus on increasing the number of donors. If not, dig into what might be going wrong. Navigating a Recession With a potential recession looming, it’s easy to get spooked. But here’s what John advises: Avoid the temptation to overcorrect. Every recession is different, and reacting too quickly can cause more harm than good. Instead, focus on your data. It will guide you through periods of volatility and help you make informed decisions. Kathleen Patten and Carsten Walter have both emphasized the importance of sticking to your mission and leaning into your brand during uncertain times. Donors are more likely to stick with organizations they believe are doing the most important work, so make sure your messaging is clear and resonates with your supporters. The Importance of Acquisition During a Recession Recessions can cause long-time donors to reevaluate their giving habits. If your organization doesn’t make the cut, you risk losing those donors for good. That’s why investing in a broad base of direct response donors is crucial to weathering tough times. John shared a powerful insight: the real damage during a recession isn’t the short-term loss of revenue, but the long-term impact of losing donors who would have otherwise supported your organization for years to come. Following Morton Blackwell’s principles for acquisition can help recession-proof your organization. Seizing the Opportunity The key to navigating any challenge, including a recession, is you. As John Davis and others have pointed out, the future of your organization isn’t predetermined. You have the power to create it by leaning into the very forces that cause others to hesitate. By embracing smart donor acquisition strategies and focusing on long-term value, you can paddle upstream with confidence, knowing that the challenges you face today will set the stage for incredible growth tomorrow.
