# Academic review of relationship fundraising offers new ideas for fundraisers

- Link: https://fundraising.co.uk/2016/01/21/academic-review-of-relationship-fundraising-offers-new-ideas-for-fundraisers/
- Published: 2016-01-21T09:40:37+00:00
- Author: Howard Lake

**A year-long international review of relationship fundraising by Rogare, the fundraising
think tank at Plymouth University’s Centre for Sustainable Philanthropy, has suggested
a number of ways in which fundraisers might make more of the established discipline.**

The review, funded by US donor management software company Bloomerang and American
fundraising agency Pursuant, was conducted by Adrian Sargeant, Ian MacQuillin and
Jen Shang.

 

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## 1. Focus – relationship fundraising for all or just major donors?

The review highlighted differences in how British and American fundraisers understand
and apply relationship fundraising.

In the USA relationship fundraising tenets are mainly applied to major gift fundraising,
focusing primarily on the relationship with the donor, almost to the point of discounting
the donation.

In the UK the concept is applied to a much wider range of donors through direct 
marketing techniques, as well as major gifts, corporate, legacy and trust fundraising.
It is focused on maximising sustainable long-term income for the charity.

 

## 2. Where does relationship fundraising begin and customer care end?

These different interpretations raise the question for UK fundraisers whether relationship
fundraising ideas should be applied to all donors. Rogare’s review argues that there
is little evidence to show that relationship marketing, with its focus on pre-eminent
customer needs, works in a mass consumer environment. Indeed, it questions whether
consumers even want such relationships with the companies they buy from.

Rogare suggests that a more ‘transactional’ form of fundraising might be more effective
and relevant in fundraising from individuals, with relationship fundraising tenets
being applied to donors who have a much higher level of involvement with the charity,
such as corporate and high net worth individuals.

Not that the majority of individual donors need be downgraded in any way. It is 
just that ‘good old fashioned’ excellent customer care might be a more effective
approach for mass marketing fundraising.

 

![Four volumes of Rogare's relationship fundraising review.](https://wfay6x.infiniteuploads.
cloud/2016/01/rogare-relationship-fundraising-review-four-volumes-covers.png)

_The relationship fundraising review is published in four volumes._

## 3. Using academic theory from social psychology to meet donor needs

The review has also identified how current theories of relationship building and
maintenance from social psychology could be transferred to donor relationships. 
These could be applied to foster their commitment to, trust in and satisfaction 
with their relationship with the organisations they support.

The report’s authors argue that two theories are important in the future of relationship
fundraising:

• Identity Theory – creating a sense of identity for the donor with the charities
they support

• moving relationships from exchange to communal relationship – meaning moving from
a situation in which partners keep track of reciprocated costs and benefits to one
where they care about each others’ needs and wants as if they were their own.

 

## 4. From RFV to commitment, trust and satisfaction

Rogare argues that financial metrics such as Recency Frequency Value (RFV) analysis
and annual income targets are not as good indicators as commitment, trust and satisfaction
in terms of driving customer and donor loyalty and their lifetime value. The authors
assert that this is true whether charities use a relational or transactional approach,
or a combination of them.

As a result, Rogare “strongly recommends that fundraisers develop bespoke metrics
with which to measure relationship fundraising that focuses on these three factors,
but particularly satisfaction”.

In addition, it proposes that charities “should remunerate their fundraisers according
to how satisfied they make their donors feel”.

 

## 5. Aim for total relationship fundraising

Rogare’s research confirmed that, while most fundraisers were very clear on the 
need to build relationships with donors, few felt that they received support or 
engagement from their colleagues or board to help them deliver relationship fundraising.
The emphasis on budget for short-term transactional techniques was one manifestation
of this lack of support.

Building a ‘culture of philanthropy’ at their organisation was seen by some as one
way forward in tackling this.

Yet fundraisers themselves often did not consider building relationships with other
stakeholders, such as fundraising agencies or the board, that might help achieve
this.

Rogare’s suggested solution is to aim for ‘total relationship fundraising’. This
would focus on building relationships with all stakeholders (such as media, suppliers
and regulators) to enable organisations to develop a better relationship with their
supporters.

 

## “Rogare’s research gives us a new playbook”

Jay Love, co-founder and CEO of [Bloomerang](https://bloomerang.co/), said of the
review’s findings:

> “In her foreword to the second edition of Ken Burnett’s groundbreaking book Relationship
> Fundraising, Jennie Thompson wrote that fundraising ‘is people giving to people,
> the hope of a shared dream, the success of a worthy cause. And it will not be 
> effective if we continue to treat our donors simply as computer records within
> gift categories.
> “Those of us involved with this project believe the renewed focus on relationship
> fundraising will be immediate and long lasting. By empowering fundraisers with
> the theories, frameworks and ideas to be successful, we can finally realise the
> true potential of Ken’s groundbreaking principles.”

Trent Rickler, CEO of [Pursuant](http://www.pursuant.com/), added:

> “Yogi Berra once said ‘in baseball, you don’t know nothing’. Nonprofits around
> the world have been practicing relationship fundraising for 30 plus years, and
> in some respects, it’s like baseball – we don’t know nothing. As soon as the fog
> begins to clear, the world changes, along with the mindsets and motivations of
> donors everywhere.
> “Rogare’s research gives us a fresh playbook. It unpacks qualities important to
> both ‘relationship’ and ‘fundraising’, with actionable insights vital to development
> success today. As a proud sponsor of this study, may this work help you enrich
> your donor relationships and find greater meaning in the important work you do.”

Summing up the year-long research project, [Rogare](https://www.plymouth.ac.uk/schools/plymouth-business-school/rogare)’
s director Ian MacQuillin said:

> “It is absolutely essential that relationship fundraising draws on the latest 
> relevant theory to continually refresh and reinvigorate the ways it can deliver
> the best possible experience for the donor. This has been lacking over the past
> 20 or so years but is imperative to ensure relationship fundraising does not stagnate
> in the future and become little more than a fundraising ideology.
> “Members of our advisory group said the relationships they had with colleagues
> were not sufficiently strong to allow relationship fundraising to flourish. So
> fundraisers must think beyond the donor and start improving all those relationships
> that are currently impinging on the donor relationships, particular with CEOs,
> board and their supplier agencies.
> “The onus is on fundraisers to build these relationships to foster the culture
> of philanthropy, as it seems unlikely that the impetus will come from elsewhere.”

 

> Download the brand new research that answers: how do donors want to be approached?
> [https://t.co/WCRAyCcBp9](https://t.co/WCRAyCcBp9) [pic.twitter.com/5XQq1ZU1Vy](https://t.co/5XQq1ZU1Vy)
> — Pursuant (@Pursuant) [January 22, 2016](https://twitter.com/Pursuant/status/690561842519740416?ref_src=twsrc%5Etfw)

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