What are They Buying?
Donors, grantors, sponsors, and event attendees are purchasing different things from you. It’s useful to think of them as different customer segments, with different preferences, and different expectations.
If it feels off to use the words “buy” and “purchase,” remember, nonprofits are businesses too. We like to think about the money coming in as “support” or “contributions” but it’s good old fashioned revenue. Money you receive in return for something you provide.
What do you provide donors? What are they purchasing? The psychological reasons behind charitable giving vary, but typically donors are giving you money because they believe in what you do and the impact you can have. They are purchasing goodwill generated by the work you do.
Grantors, or funders, are a bit different. They are giving you money because you fulfill their mission. They are organized to raise money for something very specific. Rather than do the direct service work themselves, they channel funds to nonprofits that are doing work that matches their funding priorities.
Corporate sponsors, on the other hand, are purchasing advertising or marketing by aligning themselves with you and your event or program. They are hoping to enhance their brand in the eyes of their employees, customers, or investors by supporting you.
Event attendees, dues-paying members, and participants paying program fees are all purchasing goods and services from you. Even those who “believe in your cause” so they buy a ticket to your gala or golf outing are expecting an experience in return.
The lines of giving that used to be blurred are becoming clearer. It is very difficult to persuade a grantor that you fit into their funding priorities if you don’t. Most corporate sponsors no longer have generous budgets they can use to sponsor a friend of a friend’s good cause. An online donor is a different customer than someone who is expecting a nice meal at the Gala - even if it’s understood that it’s all for charity. If they didn’t want the experience, they would have sent a check and called it a day. Donors need to know that the work they support is working.
It’s useful to think of those supporting your mission as your clients. Segment them accordingly. By thinking of them as clients with distinct buying behaviors, you will change the way you design collateral for each and how you work to build mutually beneficial relationships that they - and you - want to have.