Why Demonstrating Gift Impact is Worth Every Penny in 2021
We know as nonprofit staff members that we have precious little time for everything that land on our desks these days. (For tips on tackling that problem without increasing your budget, see Fundraising Staffs are Overworked). However, assuming we have some ability over how we spend our time, it is critical that we allocate a few hours here and there on demonstrating gift impact this year. The obvious way to start is creating an "Impact Report", but that term covers such a variety of content and mediums that it's tricky to know where to start. We are loosely referring to any infographic, story, article, social media post, or web page that shows how, where, and why donations were spent and the outcomes from those gifts. The most effective impact reports all start with a few key concepts in mind:
Effective impact reports ask a question, then answer it. This could be as simple as "What are the issues and problems our charity is tackling right now?" or "What specific outcomes have we achieved lately?" or even "If I donated to your charity, how exactly did you spend the money?"
Effective impact reports are a "thank you" to your donors and volunteers. They can be a key stewardship touchpoint for people who have already given, and can encourage them to give again if they see their gift was tangible and meaningful. We often forget that the reports are for our community, but more specifically, they are for our supporters. When people give, they usually want to be a part of a mission, and showing them they indeed were part of that positive change in your community will keep them engaged for future projects and campaigns. Donor retention is paramount these days, see some creative ways to approach that HERE, and gift impact reports are a fantastic way to actively engage your donor base all at once.
Effective impact reports are stories, or data that tells a story. A literal story is a great way to mix up charts and data, but having a colorful and simple infographic of your philanthropy financials can also tell a compelling story. As much as possible, we try to tell these stories from the perspective of the recipient of the service, not our own perspective. The story is about them, but also for them, and we love to make it as human as possible.
Effective impact reports are eye catching at a glance. Whether it's a three sentence social media post with a photo, or a short article on a website, good design/colors/layout go a long way. No need to reinvent the wheel here, as there are dozens of programs that have pre-made templates to use, but black and white text probably won't cut it. Subtle blues or greens are soft but add great texture, and of course, photos are king. In the first two seconds glancing at the report, there should be something in an image, title, or graph that would interest a reader to view further.
Effective impact reports are simple. Always err on the side of keeping it as clean and simple as possible for several reasons. First, we want to communicate a singular idea, even if that idea is as basic as "We have responsibly spent your donations on making the community better, and here is how." Second, we do not want this to become a multi-week project that eats days of staff time. We're fundraisers, and we have stuff to do! Lastly, we want a reader to look at a glance and want to invest time reading our report. If it's too dense, our tendency is to read none of it.
If done correctly, impact reports can be a wonderful way to show our community and our supporters that we are being good stewards of their time and money. They can show progress, thank donors, and encourage others to join our cause. We do great work for the people we serve, so let's take some time this year and show it!
Jake Lyons, CFRE, CNP
Managing Partner
PRIDE Philanthropy
