Your alumni have it hard.
They struggled through the rigors of college, earned their degrees and have begun building careers. They paid a hefty price: tuition, fraternity membership dues, housing and food. Now they’re paying for a mortgage, health care, an auto loan and whatever it is that keeps their kids happy today.
Not only that, there’s a new group of young brothers saying, “Hey, like, we totes appreciate everything you’ve done to get where you are and all--but, like, can you lend us a bunch of money?”
At least, that’s what it looks like to alumni if you don’t properly manage engagement, if you aren’t fostering genuine relationships along the way and only “communicate” with them in the language of dollars and cents.
Alumni understand that it’s normal for brothers to approach them for donations. When they were undergraduates, they did the same thing with the brothers who came before them. They want to help the chapter succeed.
But they’re also looking for a little recognition for their efforts, and a little humility from current members. A bit of interest in their lives, their families and accomplishments will go a long way. They’re looking for straightforward communication. They’re looking for a give and take. Most of all, they’d really appreciate it if brothers made giving easier.
That’s why Pennington & Company wants to help you Make It Easy on Your Alumni with Automated Donations.
What Are Automated Donations, and How Do You Use Them?
A major barrier to alumni giving is lack of regular engagement by the chapter. Problems arise when you approach alumni about giving infrequently, offer only vague information about your fundraising and solicit one-time gifts.
In addition to broader engagement efforts, brothers should practice continuity in their fundraising:
- Seek annual and recurring donations for specific goals throughout the academic year, rather than waiting for a big campaign to start asking.
- Encourage year-long, incremental payments, which are far more effective than one-time donations.
- Offer easy-to-use, automated donations.
Automated donations are pre-scheduled payments that automatically transfer funds from alumni donors toward a chapter fundraising goal. Alumni should have the option to set up these payments in amounts and according to a schedule that makes sense for their finances.
If alumni are used to giving one-time gifts because of how your chapter fundraised in the past, communicate with them about the transition to an automated system. Feature it in a fraternity chapter newsletter, or create a pamphlet or other literature to distribute through the alumni board. When you start a specific fundraising campaign, promote the automated donations option early and often, while keeping the focus off of one-time gifts.
Once you’ve implemented automated donations, you’ll find it encourages recurring gifts and that alumni prefer to have this option versus being forced to give a lump sum up front. Why? Because you’re giving alumni options that make chapter fundraising easier on their end, and that shows you care.
More Money, Fewer Problems with Automated Donations
While automated donations make life easier on your alumni when it comes to giving, studies show that encouraging recurring gifts also results in more money for your chapter.
You might think that sounds completely backwards. Wouldn’t bigger gifts mean more money?
Yes, it would--in the short term. However, one-time gifts present many problems for fundraising efforts that can make you fall short of your long-term goals.
If you’re running a major fraternity fundraising campaign, one-time gifts often add up to less than you need. At that point, however, alumni aren’t likely to give more, no matter how much you beg.
Statistically, alumni give more overall to chapter fundraising efforts when they do so with smaller, recurring gifts. This also helps keep them engaged in the process by showing them how their gifts contribute step by step to a project.
Jim’s donation didn’t “help renovate the chapter house,” a project he won’t see completed until possibly years from the day he gives. Instead, it paid for the plumbing and wiring of the new wing. It paid for the floorboards. It paid brick-by-brick for restoring the house façade. It paid for updating fire suppression and safety equipment. Jim’s not writing you a big check. He’s contributing in a tangible, meaningful way each month.
Automated donations are a perfect way to encourage recurring, incremental alumni gifts for your fundraising campaign.
Putting the Pieces Together: Annual Campaigns, Recurring Gifts and Automated Donations
Running a fundraising campaign can draw major resources and attention from a chapter. You might get the idea that major campaigns need all the fundraising focus. In the lull between campaigns, fundraising takes a backseat to other chapter functions.
We’re here to tell you that this approach is a mistake, and it will work against you every time.
However, there’s good news. Once you’ve transitioned from one-time gifts to a recurring, automated system for large campaigns, the next step is simply to extend that strategy to your broader fundraising efforts.
Annual fundraising campaigns with clear focuses and goals can utilize automated donations to encourage recurring gifts. This will keep alumni engaged in fundraising efforts year-round, beyond the immediacy of a limited, one-off campaign effort.
Tiered donor lists and a website dedicated to your annual campaigns will keep chapter fundraising visible and relevant. Tying these methods into an already robust alumni engagement effort will transform fundraising for your chapter forever.
Between family, a career and other commitments, alumni don’t have a lot of time to navigate chapter fundraising. The harder you make it on them, the less likely they are to engage. On the flip side, making alumni giving easier means meeting your chapter’s fundraising goals will be easier, too. Automated donations are a great first step toward those goals.
Is your fraternity starting a capital fundraising campaign or an annual campaign? What have been some of your successes so far, and where have you struggled? Are you using annual donations, or are you likely to now? Tell us about it in the comments below!
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