Membership Programs - Nonprofit Hub.com

A commonly used fundraising method often employed by nonprofit organizations is the offer of memberships to donors who reach a certain threshold. Making a donor a member gives him or her a sense of ownership or responsibility that a donation without such a designation wouldn’t necessarily confer. Not only does this increase the likelihood of further donations, it builds a community that can easily increase the success of future fundraising campaigns. This article is intended to familiarize the reader with practices that can easily make the difference between a successful membership program and a failed one.

The most basic aspect of a membership program is the way that donors are made to feel. If an organization offers membership in return for a donation, then that organization must be ready to treat that donor as a member – it must sincerely be interested in the inputs of the donor, and it must genuinely be open to member suggestions, etc.

When a member makes a donation, it should be recognized with more than a receipt. Thank the donor at every opportunity. Try to personalize your communications with the donor, though this is, of course, limited by available resources. If possible consider sending new members welcome packages, perhaps soliciting suggestions the donors might have or asking them to explain their motivations for becoming members. Even the smallest of acknowledgements can go a long way with a donor. These individuals are aware of funding limitations, but they nonetheless enjoy any sort of effort of the part of the receiving organization to actually engage them.

Some organizations use direct mail to bring in new members. A good way to develop direct mail packages is to survey current members in order to pinpoint what methods are most likely to draw in new members/donors. Also, an organization might consider asking current member to invite the friends and family to donate and become members themselves. These methods accomplish two goals: they allow members to directly participate in an organization’s success and they strengthen the donor base.

Aside from actually creating and maintaining members, though, an organization that is considering a membership program must keep in mind that such programs may have tax consequences for both the member and the organization. For example, insubstantial rewards for becoming a member, such a reduced admission to a museum or nonprofit theatre, without harming a donor’s ability to deduct a donation from his or her taxes. However, membership dues to organization’s such as private clubs are not tax-deductible. An organization should be able to answer donors’ questions regarding the deductibility of their donations, if only as another way to make the donor comfortable with making future donations.

When preparing a fundraising campaign it is useful to consider offering membership incentives to donors if they donate at least a certain amount. By doing so an organization stands to accomplish more than raising funds, it stands to build a sense of community that will increase its knowledge pool, will build greater public recognition of it and its cause(s), and will make succeeding campaigns even more successful.