Terrie on
Nonprofits ©
August 2005
LIMIT RECOGNITION? THERE ARE TIMES!
Q: I am doing the newsletter for our organization
and we will be recognizing donors. We have identified a number of giving levels
ranging from “Patron” at $10 – $99 to “Cornerstone”
at $30,000 and above. My question is, in giving recognition, should
the people who bought $85 tickets to a fundraiser
be counted as Patrons? What about the people who
bid on items at the silent auction? There were some that paid as much as $700. Should they be recognized? If so, at what level should they be recognized
since they received something for their money?
A: This is actually a question for your board.
If you don’t already have donor recognition
policies the development of such policies should
be a priority. They
will help ensure that everyone is thanked in an
appropriate, fair and timely manner. Put the topic on the agenda for the next board
meeting or convene a task force to draft policies
that can be brought back to the board for discussion
and ultimate approval.
There
are a number of factors the board might consider. First, there is nothing wrong with saying thank
you publicly for any show of support a community
member might extend.
However, as you indicated, the group that
attended the fundraiser got something in return
for their money.
Certainly, some that make cash donations
of $85 might resent seeing the same recognition
they receive being bestowed on others that partied
away their $85.
Still, your Patron category starts at merely
$10. If the donation portion of your $85 ticket exceeds
that amount an argument could be made – and I guarantee
that some of the attendees at your fundraiser will
argue this way – that such individuals are entitled
to recognition at the level of their donation, in
this case making them Patrons.
One
solution is to add another category of recognition
for those that have supported your organization
through their participation in special events. Another is to increase the minimum for your
basic support level.
The
silent auction is a similar issue, but in some ways
it is probably less of a concern and in others it
is far more. It
is less of a concern since the reality, as I’ve
shared in this column previously, is that rarely
do people bid above fair market value. Therefore, there is no donation of which to
speak. However,
it is potentially more of a concern because someone
who spends $700 will typically want recognition
whether or not s/he received goods or services in
return.
This
is not a question with an easy answer.
However, at a time where everyone is talking
about boards taking on meaningful work, this is
an appropriate challenge.
Terrie
Temkin, Ph.D. is an internationally recognized governance
and planning expert. She is president of NonProfit
Management Solutions, Inc., a principal in CoreStrategies
for Nonprofits, Inc., and a longtime member of AFP.
Contact her at terriet@nonprofitmanagementsolutions.com,
954-985-9489, or 866-985-9489.
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