There are many considerations when allocating a budget for a donor recognition project. For example, the Association of Donor Relations Professionals (ADRP) recommends allowing between 1-2% of your capital campaign budget for Donor Recognition. But what if there isn’t a campaign or you are looking at refreshing your existing donor engagement center? Here are a few key considerations:
1. Location
Consider the location and prominence of the center. Studies indicate larger displays have a more significant impact and attract more prominent donors, creating a better return on investment than a small, understated display that can quickly become overlooked. In addition, strategically designed and placed donor centers can increase both the size and frequency of donations from existing donors while helping to attract new donors.
2. Investment
How much money is currently available to allocate to the project? Is this enough money to realistically finance the project? A donor engagement center should never be viewed as an expense but rather as an investment in an ongoing fundraising tool. The potential ROI that this tool can have should be considered and accounted for when developing your initial budget, even if this means a higher initial outlay than initially planned for.
The Recognition Paradigm Shift® explains more fully how recognition can be used to help you reach your goals.
3. Design
The display design must also be considered in the budget development phase. It is crucial to have a realistic understanding of costs, especially if you have a pre-determined vision of your finished display. Questions to consider:
Is your idea functional?
Can it grow with your donors?
Will your donors feel it deserves recognition for their level of generosity?
While it is essential to donors that most of their donations go towards your cause, more and more studies show that donors also really want to feel appreciated and be genuinely thanked. Furthermore, they want to be acknowledged proportionately. The Association of Healthcare Philanthropy indicates that 10 – 20% of donors give 80 – 90% of donations, so it is vital to consider these major donors as you plan the design of the center.
Your center design must be functional, accessible, and cost-effective to update. Your donor recognition display must be more than an expensive work of art – it should be a purposeful tool that will help you increase donations, retain donors, and inspire new donors providing a real dollar return on investment. Quite simply, your donor wall must be functional. You’re putting a significant amount of time, money and effort into it; you need it to perform. And a big part of that is being easy and cost effective to update.
4. Impact
Donors are action driven. They truly believe in your cause and want to have a true impact on the work you do and those you serve. They want to know they are helping fulfill your mission and see that impact firsthand.
Your donor engagement center is an opportunity to showcase impact and gratitude to donors by telling stories and honoring those supporters. By sharing your impact in an efficient way, it will increase donor retention, as well as inspire new potential donors. Your budget must allow for the functionality to share stories and honor those who support the organization. Utilized the center as a fundraising tool and an opportunity to further engage your donors. Build an opportunity to showcase your organization, and have its impact be part of your overall communications strategy.
