The gym
Picture a school gym on the night a fire comes over the ridge.
Folding chairs. A projector. People who still smell like smoke. A woman stands up near the back. “Is my street going to make it?”
The fire chief can’t promise her that. Nobody can. But he needs something from her tonight. He needs her to leave her home and trust him with it.
So he says what chiefs say. “We’re doing everything we can to protect this community.”
It’s true. It can’t fail. And it isn’t enough.
My desk
I know that sentence. I write a version of it every November.
This year our year-end letter asks donors to choose one of five areas, from tutoring to a campus food pantry. Whichever they choose, their gift helps. I worked those sentences for days. I landed on “helps.”
“Helps” is the right word. One gift rarely buys one thing. Gifts inside an area get pooled, and the need shifts during the year. And “helps” stays clear of anything an auditor might read as a condition on the gift.1
It’s also the word that frustrates me most. I want to tell a donor exactly what her gift did. “Helps” can’t do that. It’s my version of “everything we can.”
Every director of development I know has sat at this desk. We hedge because it’s our duty. We hate it because we want to tell the truth.
Where the promise goes
Here’s the part I didn’t see for years. The hedge isn’t the problem. The problem is what happens to the promise after the gift arrives.
A gift comes in. Someone enters it. Under appeal, they pick a code.
Appeal
YE26
The letter’s promise stops right there.
Accounting books the gift, and it should. The money joins a fund with everyone else’s. At year’s end, a functional expense report sorts our spending into program, administration and fundraising.2 That report answers a real question. Just not the donor’s. It can’t tell her whether we did what the letter said.
The promise didn’t break. It just never got written down.
The code is the promise
Look at what we already have. Every gift record carries an appeal code. Bloomerang’s help center describes the appeal as the way we asked: the mail piece, the event.3 That’s how most of us use it. YE26 tells finance when we asked.
But the code is the one thing that travels with every gift from that letter. Automatically. No extra work at gift entry.
So let it say what we promised.
Fund
Annual Fund
Appeal
YE26
Appeal description
Annual Fund supports: tutoring, the food pantry, bus passes, childcare and mentoring. Show each donor how their gift mattered in the area they chose, by June 30
We don’t need five codes. The Fund is the mission. The Appeal Code is the promise. And, in my case, the donation form gives us the donor’s choice (tutoring, the food pantry, bus passes, childcare and mentoring).
My rule is simple. Get the mission funded, and show donors how their investment mattered. Show them the receipts. Not the tax receipt. Proof that we did what we said. The letter does the first. The appeal description makes sure I do the second.
Now every gift under that code carries a promise with a date. In June, I pull the gifts under that code and sort them by fund and form, and there’s my impact report data. Every donor hears about the area they chose, in one plain line.
A promise can fail. That’s why it’s worth making. “Helps” stays in the letter, where it’s doing its job. The truth gets a second place to live: the report that the code promised.
The map at 6 a.m.
Back in the gym, the good chiefs add one more sentence. “At 6 a.m., every street will be on the map. Cleared, damaged or lost. We’ll be back here at 7 tonight.”
He can’t promise the house. He can promise the map. And somebody wrote down which streets go on it.
Some mornings the map says lost. The promise was still kept.
Our June report may say the pantry ran short in March. That line goes in too. A report that only carries good news is just another “helps.” The hard line is how a donor learns the rest is true.4
What I learned
The appeal code isn’t housekeeping. It’s the only place a year-end promise can ride along with every gift. Name it for what we promised, and the receipt becomes a list and a letter instead of a heroic effort.
Before the December gifts arrive
Open your year-end appeal code. Read its name. If it only tells you when you asked, add what you promised: what you’ll report, to whom, and by when.
Then put the date on your calendar.
About this Field Note
Glen E. Quiring, CFRE, is the developer of Show Me the Receipts, a fundraising trust framework. Field Notes are practitioner observations in the SMTR series. They are short pieces written from the floor, not the podium. The gym in this note is a composite. The desk is mine. The five areas, the fund names and the report lines are examples, not any organization’s actual appeal.5
Endnotes
- A gift becomes conditional when the donor sets a hurdle the organization must clear and can take the gift back if it doesn’t (FASB, ASU 2018-08). A promise to report is our own commitment, not the donor’s condition. But when a donor picks one area on a form, that choice can restrict the gift to that area. Wording matters, so talk with your auditor before putting promise language in a gift agreement or acknowledgment. This note is not accounting advice. ↑
- Accounting rules record a gift as revenue when the promise to give arrives (FASB, ASC 958-605). They also require nonprofits to report spending by type: program, management and general, and fundraising (FASB, ASU 2016-14). Both rules do their jobs. Neither was built to track what an appeal told donors. ↑
- Bloomerang’s help center defines an appeal as the way a gift was asked for, such as a mail piece or an event. Raiser’s Edge NXT keeps an appeal record with room for notes. In your system, the field may be called a description, a note or a summary. Check yours. ↑
- In Penelope Burk’s research, 93 percent of donors said they would give again to a charity that thanked them promptly and later told them what their gift did, and 64 percent said they would give more. That is what donors said they would do, not what anyone saw them do. In Adrian Sargeant’s survey of lapsed donors, only 1.7 percent said a missing report was why they stopped. So this note doesn’t claim the report alone keeps donors. It claims something simpler: the letter made a promise, and a promise is owed a receipt. Whether the June report helps keep donors is still an open question. ↑
- The evacuation meeting is a composite. It describes no single fire or fire department. ↑
Sources
- Blackbaud. (n.d.). Appeal records [Raiser’s Edge NXT help]. https://webfiles-sc1.blackbaud.com/files/support/helpfiles/rex/content/bb-appeal-records.html
- Bloomerang. (n.d.). What is the difference between a fund, a campaign, and an appeal? Bloomerang Help Center. https://help.bloomerang.com/en/articles/12632633-what-is-the-difference-between-a-fund-a-campaign-and-an-appeal
- Burk, P. (2003). Donor-centered fundraising. Cygnus Applied Research.
- Chronicle of Philanthropy. (2002). Why donors stop giving: Results of a recent study. https://www.philanthropy.com/news/why-donors-stop-giving-results-of-a-recent-study/
- Financial Accounting Standards Board. (2016). Not-for-profit entities (Topic 958): Presentation of financial statements of not-for-profit entities (ASU 2016-14).
- Financial Accounting Standards Board. (2018). Not-for-profit entities (Topic 958): Clarifying the scope and the accounting guidance for contributions received and contributions made (ASU 2018-08).