Authenticity: the missing fundraising metric
Welcome to this week's LinkedIn-only excerpt of the Donor Participation Project newsletter! The Donor Participation Project is a community of 6,000+ fundraisers where you can network, learn, and advance your career.
Think your main focus should be on your fundraising message? This is a common misconception.
Kindly allow me to take you through the scenic route by introducing you to Edwards Deming.
W. Edwards Deming (1900-1993) was an American statistician and management consultant who revolutionized quality management practices.?
He is renowned for his work in post-World War II Japan, where he introduced innovative management principles that emphasized quality, continuous improvement, and systematic problem-solving. These ideas not only transformed Japanese industry but also influenced global business practices.
Deming's philosophy prioritized quality as a strategic imperative. His influential books and teachings continue to shape modern quality management principles across various industries worldwide. I was surprised to find a discussion on direct response fundraising in one of his essays!
In "Quality, Productivity, and Competitive Position" (1992), he used the Sacred Heart League of Memphis as an example to illustrate process flow and quality measurement in nonprofit fundraising. He described their mission to provide medical care and food to impoverished children in Mississippi counties near Memphis.
Deming outlined the fundraising process:
He emphasized that the content of the fundraising message was the primary determinant of success, and highlighted the challenge of measuring the quality of how funds are ultimately used to help children.
He may have been wrong...
None of this is published in peer-reviewed studies, but in my mind the following ways of thinking about fundraising comms are more useful:
The ABCD's of Direct Response?
This framework challenges some of Deming's assumptions:
A - The List
The quality and relevance of the recipient list is now considered the most crucial factor. A perfect message sent to the wrong audience will fail.
B - The Timing
When an appeal is sent can significantly impact its success. Seasonal factors, current events, and the donor's giving history all play a role.
C - The Offer
What specifically are you asking the donor to do? How compelling and urgent is the need? Why should the donor give now?? The offer is more important than the creative execution.
D - The Creative
While still important, the actual writing and design (what Deming focused on) is considered the least impactful of these four elements.
In Deming's example, we might consider:
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Digging Deeper...the Importance of Unmeasurable Factors
Deming noted, "The most important losses cannot be measured."
Deming was absolutely correct that the hardest things to measure are often the most important and must still be managed. In fundraising, these might include:
Other Relevant Insights from Deming
- When problems occur, it's rarely about individual effort. The system, which is management's responsibility, is usually the culprit.
- Bonus structures can create instability by discouraging collaboration and rewarding random successes (e.g., a one-time major gift) over consistent, long-term performance.
I hope you found some food for thought here. Let me know what you think?
Louis
PS: This Wednesday's Lunch Analysis already has 232 registrants! See you there.
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Have a great week,
Louis